Gas Blowdown Case Study: Striking a Fine Balance in Maximizing Gas Production Plateau and Minimizing Oil Loss: A Case Study of a Gas Blowdown Development Plan for a Mature Clastic Field in Oman

Garimella, Sai V.S.; Kalbani, Ali Al; Waili, Ibrahim Homood; Kasap, Ekrem; Al-Lamki, Ali A.

doi:10.2118/130596-ms

Cited by 4 publications

(1 citation statement)

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“…Fig. 1 Configurations of oil-rim reservoirs in plan and cross section, where GOC and OWC are the gas-oil contact and oil-water contact, respectively (Lawal et al 2010) The arguments and counter-arguments for these options are diverse and tend to vary from one case to the other, underscoring the need to improve the current body of knowledge on this subject for better decision-making (Obidike et al 2019a, b;Thomas and Bratvold 2015;Garimella et al 2010;Clarke et al 2006;Uwaga and Lawal 2006).…”

Section: Introductionmentioning

confidence: 99%

Rapid screening of oil-rim reservoirs for development and management

Lawal¹,

Yadua²,

Ovuru³

et al. 2019

J Petrol Explor Prod Technol

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As an improvement over existing screening techniques, we introduce the relative mobile energy of primary gas-cap to the aquifer (E gw) as a new parameter for characterizing the performance of oil-rim reservoirs. E gw integrates key static and dynamic reservoir properties. To account for the time value of production, the framework allows maximizing the discounted recovery factor (DRF) of oil, gas or total hydrocarbon as the objective function. Employing detailed simulations of different well-defined oil-rim models, DRFs of oil, gas and total hydrocarbons have been correlated against E gw for common development concepts and well types. These correlations have resulted in a new screening technique for both green and brown oil-rim reservoirs. In addition to presenting simple generic charts for quick evaluation of oil-rim reservoirs, the main contributions of this work include the introduction of E gw as a new performance-characterizing parameter, and the flexibility to consider the DRF of any of oil, gas or total hydrocarbon as the basis for screening an oil-rim reservoir for development planning and field management. Using the example of a brown oil-rim reservoir, the applicability and robustness of the new screening technique are demonstrated.

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Section: Introductionmentioning

confidence: 99%

Rapid screening of oil-rim reservoirs for development and management

Lawal¹,

Yadua²,

Ovuru³

et al. 2019

J Petrol Explor Prod Technol

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Study on migration characteristics of oil gas water three-phase interface and distribution law of remaining oil in gas cap edge water reservoir

Cao

Zhang

et al. 2022

Energy Sources, Part A: Recovery, Utilization, and Environmenta

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A Real Options Approach to the Gas Blowdown Decision

Thomas

Bratvold

2015

Day 1 Mon, September 28, 2015

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Many oil fields have gas caps or associated gas. The common approach for these fields is to continue to produce oil, whilst re-injecting any gas produced, for as long as it is profitable, and then produce gas. This approach is motivated by the belief that it will maximize the oil reserves and thus maximize the overall value of the field. In this paper we show why maximizing the length of profitable oil production does not necessarily create the most value. The analysis also provides guidance and insight on operating decisions that would not be obtained through a more conventional approach. In this paper we show how a real options valuation approach can be used to determine the optimal blowdown decision. The approach we take is to re-inject gas to maintain oil production only until the time it is more financially valuable to produce gas and thus blow-down pressure support for oil production. To model price uncertainty we use correlated two-factor price processes. We also consider, uncertainties in oil and gas reserves and production as well as in transition costs. The model is solved using the Least-Squares Monte Carlo simulation approach. We use a material balance simulator, which is embedded into the underlying model, to represent the oil and gas production. We illustrate how the approach can be used to identify optimal blowdown time, and thus maximize value, for a North Sea based oil field with associated gas. Our results indicate that the value-maximizing blowdown time is different than would be computed using traditional net present value. Furthermore, the approach we take in this paper yields a decision-policy “map” that indicates the optimal choice given the state of oil prices, gas prices, production rates, costs, and remaining reserves in any given year. The results presented here are relevant and applicable to oil and oil/gas fields across the world. Calculating the optimal blowdown time is not straightforward as it is a function of the underlying uncertainties such as oil and gas prices, their co-variation, oil and gas reserves and production, blowdown costs, and technology improvements, and its calculation is not trivial. However, ignoring these uncertainties leads to sub-optimal blowdown decisions, resulting in significant value losses.

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Gas Blowdown Case Study: Striking a Fine Balance in Maximizing Gas Production Plateau and Minimizing Oil Loss: A Case Study of a Gas Blowdown Development Plan for a Mature Clastic Field in Oman

Cited by 4 publications

References 1 publication

Rapid screening of oil-rim reservoirs for development and management

Rapid screening of oil-rim reservoirs for development and management

Study on migration characteristics of oil gas water three-phase interface and distribution law of remaining oil in gas cap edge water reservoir

A Real Options Approach to the Gas Blowdown Decision

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