Nexen – Gas Lift Optimisation Decision Analysis

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Problem Statement  

Buzzard platform has a large number of wells requiring gas lift and only a limited amount of spare gas plant capacity to provide it. The current gas lift optimiser relies on individual well watercut, gas lift and liquid rates that have a wide range of uncertainty, meaning good opportunity to optimise gas lift rates.

Aims

To develop a strategy to improve day-to-day gas lift optimisation by ensuring that the available lift gas is allocated to the wells that give the highest oil production uplift.

Method

A decision analysis methodology was adopted with inputs from Production, Reservoir and Process Engineering, Metering and Operations. The key gas lift optimisation decisions were identified from a wide range of inter-related issues, and these decisions were then linked into several different gas-lift optimisation strategies.

Each strategy was evaluated with respect to the cost associated with upgrading the well metering systems vs the incremental oil gain from optimising the gas lift allocation according to more reliable data. A strategy was adopted that gave the best expected economic return and a commitment to action agreed.

Impact

A probabilistic metering uncertainty analysis showed that a substantial number of barrels could be gained simply by allocating the lift gas according to more accurate well watercut & rate data (P50 case).

Metering uncertainty can be reduced by adopting a more rigorous approach to calibration and maintenance of the existing systems rather than wholesale replacement with new.

A cultural shift in attitude to gas lift optimisation was achieved by using a multi-disciplinary team and having regular reviews with key asset stakeholders.

Total Savings Anticipated

Additional Production

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Nexen – Installed Production System Capacity and Locked In Potential

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Problem Statement  

Understanding of the production and injection system capacities, constraints, impacting issues/projects and their inter-dependency across the whole system is essential for production system optimisation and asset management.

Aims

To develop a weekly Installed Production Capacity and Locked In Potential review and reporting process and make it visible to the whole organisation.

Method

The installed system capacities for both the production and water injection systems are reviewed by the production engineers in consultation with the subsurface and operations teams. The constraints across the key system chokes (reservoir, wells, plant and export) are mapped through a common interface in the intranet.

The current capacities, the issues impacting on them, the upcoming, planned projects that are likely to impact on these are updated weekly. The information is disseminated through the locked–in potential dashboard.

Impact 

This review process brings focus on issues impacting on the capacities, improved resource allocation and helped with the planning of activities accordingly.

It helped to communicate both the water injection and production systems and their vital interdependency.

All the players and stakeholders have the same consistent  information that they can use for day-to-day decision making.

This contributes to the top-quartile performance of the assets and achievement of the production efficiencies.

Total Savings Anticipated

Additional Production

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Nexen – WellFARM – Well Flow Assurance Risk Management

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Problem Statement  

A lack of awareness of evolving threats to well performance throughout the well life-cycle can lead increased downtime or impaired performance with consequential impact on host production efficiency.

Aims

To quantify the risk to well performance from individual flow assurance threats, and to oversee the application of mitigation strategies on a well-by-well basis (look forward / look back basis).

To provide confidence that adequate mitigation is in place at all times.

Method

A quarterly review of well stock using a HAZAN style check list, looks at the effectiveness of current flow assurance mitigation strategies against new threats. For example: scale, sand, corrosion, oxygen control, asphaltenes, H2S, mercaptans, wax and hydrate operating envelopes are checked against well operating performance in the review period. Deficiencies in inhibitor mitigation are highlighted against trends for the next reporting period and for life-of-field considerations. Where risks are not deemed to be ALARP, an action plan is devised and the residual risk is recorded in the Risk Register.

Impact 

WellFARM review of threats to individual wells, often flags potential problems that might otherwise have been missed in day-to-day operations optimisation.

This is especially true for assets that are emerging from plateau to mature phases of production, where the original design intent needs to be modified in the light of the experience gained during long term operations.

The approach supplements normal chemical management strategies by providing a cross-functional overview of current and expected performance.

The effect of the process is to maximise mean time to failure and to minimise the mean time to recovery.

The output from the meetings gives asset management visibility of the issues and confidence that business risks are ALARP.

Total Savings Anticipated

Optimisation Opportunity

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Nexen – Risk and Opportunity Management System

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Problem Statement  

Consistent and process driven management of the risks and opportunities through a regular control framework is an essential element of production system optimisation and asset management.

Aims

To develop the governance framework and a supporting tool for the processing and management of the risks and opportunities with better consistency and visibility.

Method

The workflow is updated using the decision framing techniques with all stakeholders and players. Regular opportunity and risk reviews were incorporated into the asset management and review process following a weekly structure and decision governance through 4-stage gates.

A tool with a register, overview radar and dashboards was developed to support and facilitate the process, enabling the recording, processing and governance of the identified risks and opportunities. The system was enabled to feed into the installed production capacity reporting and the locked-in potential dashboards for better visibility to all.

Impact 

The risks and opportunities are now updated regularly and governed with good controls providing visibility to the whole organisation.

The resource utilisation for improvement projects improved with better control, proper prioritisation and alignment with the company work plan and budgets.

All the information of the identified risks and opportunities and their maturity as well as their schedule are readily available to all stakeholders and users.

The impact and contribution of the processed or progressing mitigations/improvements became readily available and visible.

Total Savings Anticipated

>5% Time

Improved Production Efficiency

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Nexen – Allocation & Measurement Dashboard

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Problem Statement  

Allocation and Measurement issues required greater focus to maintain the optimal integrity of the key inputs to the Allocation and Production Reporting System.

Aims

To develop a semi-automated tool to communicate and collaborate with key stakeholders the health status of asset measurement systems and to drive progress of remedial work required to safeguard the long-term integrity of the systems.

Method

The Dashboard is refreshed monthly and a communication sent to key stakeholders to give visibility of issues impacting the fair and equitable apportionment of product at field and well level.  Emphasising any threats to production, highlighting areas of weakness together with the significance of not taking remedial action.

The Dashboard is used within asset war rooms and a monthly meeting held to review, discuss progress and agree priorities.

The Dashboard serves to monitor and control progress against OGA and 3rd party Inspection Audit.

Impact 

This review process brings focus on issues impacting the accuracy of production data, assists asset management to understand the business case for approving any corrective maintenance required.

In addition to communicate the health of key metering systems impacting water injection and production, systems critical to EU ETS, well test, sampling and analysis attainment are also monitored and reported.

All the players and stakeholders have the same consistent  information that they can use for day-to-day decision making.

This has contributed to the ability to monitor and control issues, evident by a steady improvement in 3rd party audit scores.

Total Savings Anticipated

+/- 100 Hours per Annum

Mitigate exposure to lost/deferred production due shutdown by regulator/pipeline operator.

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Peterson – Breaking down the silos, multi-skilling and redesigning the way we work

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Problem Statement  

The pressure on the O&G Industry to reduce prices continues. There is a limit to how much cost can be driven out through a standardised approach. Through changing the way we think and changing the methods of working we found ways of reducing cost, working in partnership with the client, implementing new technologies all of which led to a competitive and sustainable advantage.

Aims

  • To change the mindset and move away from the silo mentality and create a multi-skilled workforce where individuals have the ability to work in any area of the business.
  • To redesign the daily operation surrounding Receipts and Dispatch, Returns and Repairs, Kitting and Staging.
  • Site refurbishment to improve staff welfare
  • To improve HSEQ performance and raise awareness

Method

  • Effective communications through Town Halls, staff engagements and workshops to promote a different way of thinking which clearly evidenced the changes in the industry and the need for each individual to think differently.
  • Redeployment opportunities offered mitigating any need for redundancies
  • Deployed a skills matrix to understand people skillsets and where gaps existed.
  • Encouraged and promoted individuals to learn other areas of the business enabling resilience and flexibility to managing demand.
  • Eliminate multiple handling and waste through optimising the process. Focus on internal and external traffic management plan with a view to minimising traffic, plant movement and general improved layout.
  • Daily / Weekly / Monthly focus on HSEQ with management participation

Impact 

People have understood the need for change and to achieve sustainability and longevity we needed to think and act differently, a move away from old traditional silo ways of working. Individuals are now multi-skilled and have the ability to move from one department to another during peaks and troughs of activity.

The warehouse layout has been redesigned and the process of receipting and dispatching changed so that material is now only handled once before it is physically dispatched, stored, bagged and tagged. In addition, visible marking of floor areas, platform laydown areas, visual control mechanisms has been introduced helping counter potential human error.

HSEQ performance and awareness has improved.

Improved motivation and team spirit despite the significant changes.

Achiever of the PETERSON Operational Excellence award 2017

Total Savings Anticipated

£250,000

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ATPI Griffinstone – Leveraging Global Hotel Expenditure

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Problem Statement  

ATPI Marine & Energy was appointed as the global travel management company (TMC) for a deep water drilling company. It was quickly established that the client’s operating regions and its London headquarters all booked their own local preferred hotels. This meant there was no consolidated method for measuring value or identifying savings opportunities.

Aims

Consolidation of hotel expenditure to strengthen negotiating power with hotels. As well as improving visibility of travellers

Method

ATPI Marine & Energy undertook a two week study of the clients’s total hotel expenditure. The results showed that in most locations, staff stayed at a wide range of hotels with varying rates.

The expected number of room nights by location and by traveller category were calculated using the previous year’s booking information.  ATPI Marine & Energy then targeted hotels from their inventory of 500,000 properties. A number of hotels were invited to tender and made aware of the value of being a preferred partner. As well as best value rates, allocation and last room availability was secured in the client’s most important locations.

Impact 

By consolidating the client’s hotel programme and using a bespoke hotel system to identify opportunities, ATPI Marine & Energy has proactively improved cost savings month after month. In the first quarter alone, the client saved US $224,000 (7%), compared to its accommodation costs for the same locations a year earlier. The client therefore revised its annual savings target from US $500,000 to US $1,000,000.

Total Savings Anticipated

US $500,000 to US $1,000,000.

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Chevron – Erskine Well Intervention campaign 2017

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Problem Statement

The normally unmanned Erskine platform has a max POB of just 12 people, which makes labour intensive well interventions a major undertaking.

There has been three years of unsuccessful attempts to remove scale and replace key down-hole equipment.

Needed to ensure that the 2017 campaign was a success.

Aims

  • A 55-day well services campaign on the Chevron-operated Erskine platform to be delivered safely, on time and on budget.
  • The campaign involved work on three wells, including the change-out of a wireline retrievable safety valve and two lower manual master valve stem seals and bonnets.

Method

  • New approach using tools trailed onshore, but new to the market and not used downhole before, including an expandable mill, allowing intervention crew to pass through narrow restriction at surface then out into the tubing where it was opened up.Completed downhole well-data logging, followed by the setting of plugs in the well-necessary barriers to allow the change-out of the lower manual master valve and the replacement of a Pascon valve, which is used to control pressure to the safety valve.Other work included replacement of storm choke valves, downhole safety valves controlled by pressure, and well-data logging.

Impact

The well services campaign is the culmination of years of work and involved
the dedication of the Erskine team, Chevron well services, Base Business
Operations Support and business partners Altus, Welltec, GE Vetco and
Halliburton.

The well services work required Erskine to be maned for 55 days, split into a
14 and 41-day campaign from April to June 2017. With limited facilities on
the platform and a max of 12 people on board, including 5 emergency
response team core crew, this only allowed for 7 other crew to carry out the
complicated and labour intensive work.

Specialised equipment meant deck space was limited to team work and
collaboration was key. Working with wireline companies chevron changed
how teams worked in order to carry out 24 hour working, saving over 20
days offshore occupation and production losses.

The work was carried out safely and successfully, eliminating three significant
well anomalies, allowing the wells to return to full integrity. Completing all
three work scopes incident free was a great achievement by the whole team.
The first work scope was challenging, with the alternatives for reinstating the
down hole safety valve would have resulted in either a costly coiled tubing
campaign or a completion workover, which would have cost missions of pounds
to restore the integrity of the well.

Total hours saved – 21.75 working days

Total savings anticipated – £4.7M

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Chevron – Erskine/Lomond Hub Strategy

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Problem Statement

Erskine is dependent on Lomond to provide the export route from the field.
Need to increase production efficiency and desire to extend the life of Erskine but no joined up approach to how this could be achieved and maintained.

Aims

  • Work collaboratively across both assets regardless of operatorship or Equity share.
  • Focus on what needs to change to improve the performance of both assets for the benefit of all.

Method

  • Reintroduction of a Chevron Ops Rep on Lomond as a fully integrated member of the Lomond OIM Leadership team, improving visibility and helping to mitigate key threats and vulnerabilities.
  • Joint Study work on alternative hosts, optimisations, RAM modelling etc.
  • Use of OPEX Group’s OPEX X-pas service for third party data analysis of key systems

Impact

Successful completion of the cleaning and inspection of the 30km pipeline between the two assets (first pig in the line since 2009). The team ran a total of 14 pigs, including an intelligent pig, which was essential for proving the long-term integrity of the pipeline.

These campaigns resulted in all five Erskine’s wells coming online for the first time in two years with production rate being the highest it had been over three-year span.The number of days online for Erskine platform has also steadily increased from 127 in 2014 to over 240 at the end of 2017.

Over the same period, the combined Lomond and Erskine production reached a record high since Lomond was converted to a single train operation, when it averaged 37,810 boe/d.

Proven that sharing knowledge and expertise leads to positive outcomes, tangible results and is contributing to maximising economic recovery from the UKCS.

Total hours saved – ongoing

Total savings anticipated – ongoing

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Atkins – Realising major savings through spares optimisation

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1.Problem statement

Ever increasingly, operators are facing the challenge of managing their existing assets during volatile market conditions such that unnecessary financial ‘wastage’ is minimised and opportunities for increased efficiencies, and ultimately operating revenues, are maximised without compromising safety. Related to this, a further key challenge demands proactively positioning the business such that future operations are optimised to sustain improved efficiencies and financial return at minimal OPEX / investment, again, without compromising safety.

2. Aims 

Particular focus is demanded on minimising unnecessary and wasteful expenditures.  Such unnecessary spend can arise from many sources, but especially from inefficient inventory management. This includes excessive/unnecessary spares purchase, storage, etc.,  which can lead to extreme storage costs and avoidable, large scale capital expenditures, often of the order of £M’s. To combat this Atkins has developed a successful managed service that can help clients improve their inventory management, and overcome challenges including:

  • Excessive data handling issues – inadequate infrastructure/resource to deal with ‘Big Data’.
  • Inadequate corporate systems/processes to interrogate inventory stock types and levels.
  • Lack of coordination/communication between relevant internal groups and divisions.

Poor awareness of internal standards/practices (if they exist) leading to inconsistent implementation of maintenance strategies, R&M guidelines, etc. and quality related issues.

3. Method

Atkins service has three key elements:

  • Reducing waste by cleansing inventory data of unsuitable spares (obsolete, mothballed, degraded, perished, wrongly classified, etc.).
  • Increasing safety and availability by stocking the correct spares in the required condition, to mitigate critical failure, with focus on local operating context.
  • Reducing capital and operational costs by minimising excess stock, while managing stock-out risk to an acceptable level.

4. Impact

Following implementation of Atkins process on an operator’s range of assets, comprising offshore facilities, onshore terminals, and pipelines, the analysis revealed numerous inventory management inefficiencies, offering potential for significant waste reduction and reliability improvements.

For example:

  • An initial 29% of operational spares book value not linked to equipment – directing an investigation by the operator.
  • Errors in migration of inventory data when upgrading between CMMS versions.
  • Duplicate purchase orders.
  • Accounting data inconsistencies.
  • Inventory data fields not fit for purpose.
  • Surplus project spares from vendor spare parts interchangeability lists (SPIL) offloaded to operation regardless of suitability.
  • Scope for common spares pooling, promoting further excess stock savings.
  • Recording issues in free-text material descriptions – operator without physical metrics to get competitive quotes and reliant on overpriced spares from vendor SPILs.
  • Generic ‘repair versus replace’ response guidance not fit for purpose eg decision support logic not sufficiently nuanced for combinations of store and materials ownership and leasing.

Total savings anticipated

The analysis ultimately revealed $179 million of recommended savings constituting $79 million of unsuitable spares and $100 million of excess stock  – of this $49 million has been confirmed to date by client’s ongoing review.

“We achieved all three waves of disposals that needed to be accomplished, thanks to Atkins’ work, with savings of $49 million against the target $45 million for 2017, plus an extra $40 million already released to Material Management for producing Disposal Forms.”

Client’s project sponsor, Aug 2017

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