Achieving True Capital Efficiency for Offshore Assets: Modelling and Calculating Return Beyond Simulation

Achieving True Capital Efficiency for Offshore Assets: Modelling and Calculating Return Beyond Simulation

 

Achieving True Capital Efficiency for Offshore Assets: Modelling and Calculating Return Beyond SimulationI’m sitting in Heathrow airport, en route to the SPE ATCE conference in Amsterdam, and reflecting on a meeting with a major petroleum producer that uses 3esi-Enersight on a large offshore asset – one of their best producing assets in the world. Their challenge: How do you best model and calculate the economic return on major investments in low well count, offshore projects with strong reservoir performance potential…before spending billions of dollars? This challenge is likely to be on the minds many companies I’m about to meet in Amsterdam.

How does 3esi-Enersight aid companies with offshore assets when our software does not perform subsurface analysis? A development plan typically starts with a reservoir simulation to generate the on-production dates and well performance forecasts.  What simulation does not capture though, is a comprehensive realizable activity plan (drill, pre-drill, subsea work, drill center construction) with a surface facility plan (production capacities, slots, downtime, maintenance). Nor does simulation calculate the capital profiles and determine the economic justification for the plan. How do you communicate and work effectively with the other stakeholders in the offshore development plan? Facilities design, drilling, and corporate planning…3esi-Enersight provides a platform to unify these discussions through an integrated plan and provides intelligence for making better informed decisions.

Let’s say we nail the capital-efficient, smart development plan. A reservoir engineer still needs to oversee the project and ensure the sub-surface model and surface development model are in alignment. The work flow should drive towards an evergreen planning process – where changes in the activity schedules are captured in the sub-surface models and reflected in the investment analysis.

Likewise, when the reservoir engineering team is assessing a wide spectrum of development options, there exists an opportunity to step back and high-grade options to justify the resources required to generate a full simulation model. 3esi-Enersight helps here too – equipping the engineer to rapidly compare an array of options for commercial viability. Time is limited and days are not long enough to build simulation models for every scenario to be considered.

Ultimately the oil and gas industry is a business. Production can always be increased, but can we make money in the process? Several segments of a company need to work in concert for valid calculation of smart capital return – reservoir management, drilling, completions, facility engineering, and commercial planning.

So can 3esi-Enersight remove the need for simulation? Not at all. We can help improve forecasting efficiency, investment justification, development scheduling and multi-disciplinary coordination. This element means we offer a worthwhile opportunity for companies with offshore assets to improve their business.

These are my thoughts – I invite you to share your thoughts. Please send me an email at dan.magyar @3esi-enersight.com. If you are attending the ATCE, please come on by the 3esi-Enersight booth #1322 for a chat.

Author: Dan Magyar

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