Quantifying the Tangible Value of a Smart Field Asset Implementation Leveraging on Digital Technology and Automation, Taking into Account the Intangible Value Element

The value calculation for a new digital and innovative technology is often requested by the executive management to justify the cost required for the implementation and maintenance of the technology. The value is normally segregated into a tangible and intangible value that correspond to a quantitative and qualitative description of those value elements. As part of the Digital Oilfield (DOF) assessment, the solution value has been defined using two approaches. Firstly, qualitative value is described using a "FEATURE_BENEFIT_VALUE" model. The qualitative value elements have been grouped to align with the company strategic pillars to achieve its vision. Secondly, the quantitative value has been estimated using an NPV model. It estimates the value of the complete digital solution (combined investment for all domains) being proposed for the Asset. The model estimates the net present value (NPV) of the expected Asset investment in digital enablement and digital capability as defined in the assessment report. Net cash flow graphs are also calculated. The approach used is to calculate an NPV for a GO-NOGO decision. Therefore, a conservative estimate of NPV is made with the mind-set that if even being conservative, the NPV clears the company's hurdle rate for such projects, then the decision to invest is undertaken. Sensitivity analysis has been performed using conservative estimates of production gain enabled by digital and conservative oil prices. The paper will detail out the approach for the value quantification of a DOF solution that will also correspond to the industry guidance. Example on how the value is calculated will also be outlined.

Enterprise-Driven, Asset-Focused Digital Oilfield DOF Assessment - Strategic Framework and Roadmap

A new integrated growth strategy of an oil & gas company is focusing on maximizing the value of reserves and production in order to meet the value proposition of the highest possible return to the company. The strategy is built on the strategic foundation of the company of People, Performance, Profitability and Efficiency. From a business performance perspective, the strategy will bear fruit through increased production capacity, improved operational and cost efficiencies, re-energizing mature fields and uncovering new resources whilst maintaining safety and asset integrity. The objective of this global level exercise aims to assess and evaluate various Digital Oilfield (DOF) practices and initiatives against industry best practices, to perform a landscape assessment of the upstream assets, to review the asset digital gap, to develop a strategic framework and roadmap ensuring that the company strategic pillars are supported across all relevant aspects, by closing the digital gap between current and future states. The assessment scope covers the following domains: Reservoir management Production optimisation Operation management & integrity Engineering & projects Drilling Efficiency Logistics & Planning The landscape assessment and gap analysis consist of several stages that starts from documenting the information received from the assets capturing their current business practices and processes, analyzing the "as-is" condition, designing the future state, assessing the impact to the specific assets, define the benefits and value and creating a 5-year business roadmap. Aligned with the company DOF strategy, understanding the asset digital gap and enhancing the asset digital maturity will improve: HSE and asset integrity by reducing hazard exposure, optimizing energy usage and improving wells and facilities integrity Collaboration and faster analysis leading to timely decision making Integrated operations by optimized drilling planning, operations, optimized production forecasting and integrated planning Optimum Reservoir Management through enhanced reservoir surveillance and recovery

DIGITAL OILFIELD PERSONNEL DEVELOPMENT MANAGEMENT

The article is aimed at studying the problems associated with the digital oilfield personnel development. The purpose of the article is to study the digital oilfield personnel development management. During the research we used the methods of theoretical generalization - to form definitions of concepts and general approaches and principles; of analysis and synthesis; of system and complex analysis, modeling - for management model formation of digital oilfield personnel development. To achieve this goal, the directions of oil and gas field digitalization are considered; the production process problems faced by managerial and engineering personnel are surveyed. It is shown that for the effective functioning of digital oilfield the highly qualified personnel with the appropriate level of knowledge and experience is needed. The components that should be managed by the organization for staff development and its effective use are identified. The scientific novelty of the study is to solve problems that have theoretical and practical significance in the field of digital oilfield personnel development management. To achieve this goal, the following tasks were solved: - the components of digital oilfield are determined; - the problems that arise during the oil and gas field management are identified; - the concept of personnel development management is defined in order to justify further actions related to the choice of appropriate areas, methods, technologies and forms of training; - the model of digital oilfield personnel development management is formed and its components are analyzed; - the characteristic features of staff development in the mechanistic model of enterprise management are highlighted; - the motivators of professional development of employees are determined, in particular, for advanced training of oil and gas enterprises’ employees resulting in the international IWCF certificate acquisition; - the competence and meta-competence approach of personnel development is analyzed, which should be used to improve the enterprise’s activity.

A Step Change in the Digital Oilfield Arena: Cloud Computing and Workflow Integration for Production Operations Solutions

Digital oilfield applications have been implemented in numerous operating companies to streamline processes and automate workflows to optimize oil and gas production in real-time. These applications are mostly deployed using traditional on-premises systems; where maintenance, accessibility and scalability serves as a major bottleneck for an efficient outcome. In addition to this challenge, the sector still faces limitations in data integration from disparate data sources, liberation of consolidated data for consumption and cross domain workflow orchestration of that data. The dimensional change brought by digital transformation strategies has paved a path for the Cloud- based solutions, which have recently gained momentum in the oil and gas industry pertaining to their wider accessibility, simpler customization, greater system stability and scalability to support larger amount of data in a performant way. To address the challenges mentioned earlier, we have embarked on a journey with Production Data Foundation which brings together production and equipment data from across an organization. In this paper, we will highlight how Production Data Foundation, hosted on the cloud, provides the underlying infrastructure, services, interfaces required to support and unify production data ingestion, workflow orchestration, and through the alignment of the common domain and digital concepts, improve collaboration between people in distinct roles, such as production engineers, reservoir engineers, drilling engineers, deployment engineers, software developers, data scientists, architects, and subject matter experts (SME) working with production operations products and solutions.

Digital Oil Field; The NPDC Experience

This paper presents an overview of the implementation of a Digital Oilfield (DOF) system for the real-time management of the Oredo field in OML 111. The Oredo field is predominantly a retrograde condensate field with a few relatively small oil reservoirs. The field operating philosophy involves the dual objective of maximizing condensate production and meeting the daily contractual gas quantities which requires wells to be controlled and routed such that the dual objectives are met. An Integrated Asset Model (IAM) (or an Integrated Production System Model) was built with the objective of providing a mathematical basis for meeting the field's objective. The IAM, combined with a Model Management and version control tool, a workflow orchestration and automation engine, A robust data-management module, an advanced visualization and collaboration environment and an analytics library and engine created the Oredo Digital Oil Field (DOF). The Digital Oilfield is a real-time digital representation of a field on a computer which replicates the behavior of the field. This virtual field gives the engineer all the information required to make quick, sound and rational field management decisions with models, workflows, and intelligently filtered data within a multi-disciplinary organization of diverse capabilities and engineering skill sets. The creation of the DOF involved 4 major steps; DATA GATHERING considered as the most critical in such engineering projects as it helps to set the limits of what the model can achieve and cut expectations. ENGINEERING MODEL REVIEW, UPDATE AND BENCHMARKING; Majorly involved engineering models review and update, real-time data historian deployment etc. SYSTEM PRECONFIGURATION AND DEPLOYMENT; Developed the DOF system architecture and the engineering workflow setup. POST DEPLOYMENT REVIEW AND UPDATE; Currently ongoing till date, this involves after action reviews, updates and resolution of challenges of the DOF, capability development by the operator and optimizing the system for improved performance. The DOF system in the Oredo field has made it possible to integrate, automate and streamline the execution of field management tasks and has significantly reduced the decision-making turnaround time. Operational and field management decisions can now be made within minutes rather than weeks or months. The gains and benefits cuts across the entire production value chain from improved operational safety to operational efficiency and cost savings, real-time production surveillance, optimized production, early problem detection, improved Safety, Organizational/Cross-discipline collaboration, data Centralization and Efficiency. The DOF system did not come without its peculiar challenges observed both at the planning, execution and post evaluation stages which includes selection of an appropriate Data Gathering & acquisition system, Parts interchangeability and device integration with existing field devices, high data latency due to bandwidth, signal strength etc., damage of sensors and transmitters on wellheads during operations such as slickline & WHM activities, short battery life, maintenance, and replacement frequency etc. The challenges impacted on the project schedule and cost but created great lessons learnt and improved the DOF learning curve for the company. The Oredo Digital Oil Field represents a future of the oil and gas industry in tandem with the industry 4.0 attributes of using digital technology to drive efficiency, reduce operating expenses and apply surveillance best practices which is required for the survival of the Oil and Gas industry. The advent of the 5G technology with its attendant influence on data transmission, latency and bandwidth has the potential to drive down the cost of automated data transmission and improve the performance of data gathering further increasing the efficiency of the DOF system. Improvements in digital integration technologies, computing power, cloud computing and sensing technologies will further strengthen the future of the DOF. There is need for synergy between the engineering team, IT, and instrumentation engineers to fully manage the system to avoid failures that may arise from interface management issues. Battery life status should always be monitored to ensure continuous streaming of real field data. New set of competencies which revolves around a marriage of traditional Petro-technical skills with data analytic skills is required to further maximize benefit from the DOF system. NPDC needs to groom and encourage staff to venture into these data analytic skill pools to develop knowledge-intelligence required to maximize benefit for the Oredo Digital Oil Field and transfer this knowledge to other NPDC Asset.