Role of Production Engineering in Field Development

ORLANDO URRIBARRI
1977
1972
MSc Petroleum Engineering,

University of Zulia, Venezuela.
Petroleum Engineer,
University of Zulia, Venezuela.
BACKGROUND
Workover and Drilling Engineer (TEXACO offshore oil fields in Lake of

Maracaibo, Venezuela) 1972-1975.
Production Engineer of Steam Drive Projects (Shell Venezuela and
Shell Holland) 1977-1985.
Production Technologist (PDVSA) 1985-2002.
Worldwide Production Technology Consultant/Instructor (NExT) 2003
present (USA, UK, Nigeria, Vietnam, Indonesia, Malaysia, Oman, Colombia,
Ecuador, Mexico).
E-mail: orlandour@opicaconsultores.com
Copyright 2007,
, All rights reserved
Introduction
Role of Production Engineering in Field Development
Copyright 2007,
ASSET
Every resource that add value to the organization.
PHYSICAL ASSETS
FINANCIAL ASSETS
Reservoirs
Wells
Facilities
Hardware
Materials
Naturals
INTELLECTUAL ASSETS
Structural
Capital
Practices
Models
Methodologies
Human
Capital
Talent
Skills
Knowledge
Communities
Copyright 2007,
Relational Alliances
Capital
Agreements
Capital
Equity
Stocks
Cash
ASSET MANAGEMENT
Set of procedures that enables management to be accountable for the
administration of the asset lifecycle:
Maximizing shareholder value added

Applying best practices in technology,
operations, trading and finance
Considering environment, health, legal
and relations aspects
Giving total accountability for CAPEX
and OPEX
Copyright 2007,
ASSET MANAGEMENT STRATEGY
PHILLIPS
C: Centralized
D: Decentralized
Copyright 2007,
TOTAL
FINA
ELF
Responsabilities and
decision making at asset level
MAYOR CONTROL
MXIMA DELEGACIN
MNIMA DELEGACIN
INTELECTUAL ASSET CONTROL
decision making at a corporative level
MENOR CONTROL
Exxon-Mobil
C
D
PHYSICAL ASSETS CONTROL
C: Centralized
D: Decentralized
Copyright 2007,
MAYOR CONTROL
MXIMA DELEGACIN
MNIMA DELEGACIN
PHILLIPS
MENOR CONTROL
TOTAL
FINA
ELF
Exxon-Mobil
C
D
MAYOR CONTROL
MXIMA DELEGACIN
C: Centralized
D: Decentralized
Copyright 2007,
PHILLIPS
MNIMA DELEGACIN
TOTAL
FINA
ELF
Exxon-Mobil
MENOR CONTROL
C
D
Asset Management
A Team Approach
Reservoir
Engineering
Environmental
Production
and Safety
Engineering
Engineering
Drilling
Land, Legal, and
Asset
Financial
Management
Services
Team
Production
Operations
Geosciences
Petrophysics
Geology
Geophysics
others
Engineering
Design and
Facilities
Operation and
Maintenance
Engineering
Construction
Engineering
Copyright 2007,
ASSET LIFE CYCLE

CAPEX
Design and construction of
wells and infrastructure.
OPEX
Subsurface-Surface
Integral Productivity Optimization
PRODUCTION
BPD
LIFE CYCLE
DISCOVERY
Copyright 2007,
DEVELOPMENT
EXPLOITATION
ABANDONMENT
Petroleum Engineering Cathegories
Drilling Engineer
Production Engineer
Reservoir Engineer
Copyright 2007,
10
Drilling Engineer
Drill a useable wellbore through the objective formation at the

location intended
Often functions like a General Contractor, managing many

sub-contractors to accomplish tasks
Deeper cheaper
Copyright 2007,
11
Production Engineer
Responsible for producing the maximum amount of oil and/or

gas from the reservoir in cost effective manner (value
maximization)
Usually focused on individual wells or groups of wells
Often coordinates between other asset team members
Copyright 2007,
12
Production Operations
Artificial lift
Gas and fluid separation
Storage
Gas meter Gas

pipeline
Gas
Oil
ptf
Water
VALUE MATERIALIZATION
pwf
pe
p
Copyright 2007,
13
ROLE OF PRODUCTION OR PRODUCTIVITY ENGINEER

DURING THE ASSET LIFECYCLE
CAPEX
Design and construction of
wells and infrastructure.
Subsurface-Surface
Integral Productivity Optimization
OPEX
LIFE CYCLE
PRODUCTION
BPD
PRODUCTION ENGINEERING ACTIVITIES

Design & complete wells
e.g. what rates? size of
tubing? single or dual,
perforated or open hole,
vertical or horizontal
DISCOVERY
Copyright 2007,
DEVELOPMENT
Monitor wells performance, e.g. pressure build up

analysis, production trends, production impediments
Improve productivity e.g. artificial lift, sand control,
stimulation
Generate recommendations to maintain wells e.g.
Wireline/slickline work, Coiled tubing activities,
workovers
EXPLOITATION
ABANDONMENT
Reservoir Engineer
Optimize depletion plan and economics (Value Creation)
Develops reservoir models to forecast well and reservoir

performance
Performs reserves estimates and audits for financial

accounting
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15
Technology Integration based on Reservoir
Prediction
Description
Geophysics
Petrophysics
Geology
Reservoir
Drilling
Performance
Optimization
Copyright 2007,
Computing
Engineering
Characterization
16
Reservoirs
Subsurface rocks are generally saturated with fluids (usually

water)
Fluids occupy pores, voids and cracks
Forces (gravity, geologic stresses) can cause fluids to move

when a pressure differential exists
Hydrocarbon reservoirs are discrete volumes of rock that

contain fluid compounds of hydrogen, carbon and oxygen.
Copyright 2007,
17
ASSET LIFE CYCLE

EXPLORATION PROCESS
PRODUCTION
EXPLORATION
BASIN ANALYSIS
1 - 3 YEARS
PROSPECTION
3 5 YEARS
REGIONAL GEOLOGY
GRAVIMETRY
MAGNETROMETRY
GEOLOGY OF SURFACE
DELINEATION
3 - 5 YEARS
DEVELOPMENT
DETAILED
SEISMIC
PROSPECT
DEFINITION
DRILLING
DEVELOPMENT
PLAN
COMMERCIAL
PRODUCTIVITY
DECISION GATE
Copyright 2007,
A Subsurface Reservoir
BLR
FALLA
ICOTEA
PILAR NORTE
LA CUA
C-1
AT
ICO
B-9
C-4
C-5
MT GU
J/C AS
OL AR
ON E
R
PILAR SU
C-1
C-2
C-3
C-4
C-5
MT GUA
J/ C S A
OL RE
G
ON
MT UAS
J/C AR
OL E
ON
C-4
C-5
MT
J/C
GU
OL
AS
ON
AR
E
C-6
C-7
E
GUASAR
LON
MTJ/CO
NT
BASEME
Copyright 2007,
19
ASSET
Asset Planning
and Control
DirectiveLevel
Level
Directive
ASSET
ASSET
VALUE IDENTIFICATION
Reservoir Modeling
and Planning
StrategicLevel
Level
Strategic
RESERVOIR
RESERVOIR
VERTICAL INTEGRATION
VALUE CREATION
TacticLevel
Level
Tactic
PRODUCTIVITY
PRODUCTIVITY
INTEGRATED PRODUCTIVITY TEAM

Integrated Productivity
VALUE MAXIMIZATION
2S Operations &
Maintenance
OperationsLevel
Level
Operations
2SFIELD
FIELDOPERATION
OPERATION
2S
GEOLOGY
Copyright 2007,
RES. ENG.
VALUE MATERIALIZATION
HORIZONTAL INTEGRATION
SURF. FACIL.
WELL COMP.
AUTOMATION
RELIABILITY
REL
HSE
20
Objectives for this Course

Overview of Field Development Processes with an emphasis on
reservoir and down hole technology, complemented by facilities,
operations and environmental review.
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21
Production Engineering & Operations

(a 5-days course)
The Reservoir (2 days)
The Well (1 day)
The Operations (2 days)
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22
The Reservoir
Introduction
Geology and Production
Rock Properties
Fluid Properties
Reservoir Production Processes
Formation Damage
Well Testing
Nodal Analysis
Inflow Performance
Outflow Performance
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23
The Well
Casing String and Suspension
Tubing Selection
Tubing Connections
Packers
Wellhead & X-mas tree
Completion Equipment
Safety Valves
Running Completions
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24
The Operations
Perforations
Acidizing Candidate Selection
Artificial Lift
Matrix Treatments
Multilaterals
Slickline
Sand Control
Coiled Tubing
Vent Screen
Production Logging
Screenless
Fracturing
Production Facilities
Copyright 2007,
25

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ORLANDO URRIBARRI

MSc Petroleum Engineering,

Workover and Drilling Engineer (TEXACO offshore oil fields in Lake of

, All rights reserved