ABSTRACT
The need to re-develop one of the Brown fields located in the Niger Delta area of Nigeria was
necessitated by the fact that there are still three undeveloped reservoirs in the field.
A total of six stacked reservoirs, A100 to A600 (all oil bearing with associated gas) were
penetrated between 8552 ftss and 10652 ftss by APV-1 well. Reservoir blocks A200 and A600
are the largest in the field accounting for 77% of the total field STOIIP. The well was completed
with a Two String Multiple (TSM) on the two levels, with the short string producing from the
A200 reservoir and the long string producing from the deeper A600 reservoir, A300 behind the
sleeve.
The purpose of this research is to identify the best developmental plan to produce the reservoirs,
either with a TSM completion or with a Smart well completion based on the economics. There
are many single well fields in the Niger Delta area of Nigeria that have not been optimally
produced, hence this study seeks to maximize the life of this field.
The reservoirs were simulated and production forecast carried out amounted to 14.55 MMstb for
a period of 16 years.
After economic analysis was performed, the Net Present Value for the TSM and the Smart well
completion were US $MM 241.9 and 248.88 respectively and an Internal Rate of Return of
155% and 202% respectively, hence the Smart well development plan is recommended.
Keywords: reservoir blocks, Two String Multiple, reservoir development plan, economic
analysis
3
TABLE OF CONTENT
ABSTRACT…………………………………………………………………………………………………………………….4
ACKNOWLEDGEMENT ………………………………………………………………………………………………..5
DEDICATION ………………………………………………………………………………………………………………..6
TABLE OF CONTENT…………………………………………………………………………………………………….7
LIST OF FIGURES………………………………………………………………………………………………………….8
LIST OF TABLES……………………………………………………………………………………………………………9
CHAPTER ONE…………………………………………………………………………………………………………….10
1.0 BACKGROUND……………………………………………………………………………………………………10
1.1 STATEMENT OF PROBLEM…………………………………………………………………………………10
1.2 AIM …………………………………………………………………………………………………………………….10
1.3 OBJECTIVE OF STUDY……………………………………………………………………………………….10
1.4 SCOPE OF THE STUDY……………………………………………………………………………………….11
1.5 MOTIVATION FOR THE STUDY…………………………………………………………………………..11
CHAPTER TWO……………………………………………………………………………………………………………11
2.0 LITERATURE REVIEW………………………………………………………………………………………..11
2.1 RESERVOIR MANAGEMENT………………………………………………………………………………11
2.1.1 Fundamentals of Reservoir Management…………………………………………………………….12
2.1.2 The Reservoir Management Plan ………………………………………………………………………12
2.2 MATERIAL BALANCE EQUATION………………………………………………………………………12
2.3 MBAL………………………………………………………………………………………………………………….14
2.4 WELL WORKOVER……………………………………………………………………………………………..14
2.5 ECONOMIC ANALYSIS……………………………………………………………………………………….14
2.5.1 Net Present Value …………………………………………………………………………………………….15
2.5.2 Internal Rate of return ………………………………………………………………………………………15
2.6 FIELD OVERVIEW………………………………………………………………………………………………15
2.6.1 Volumes Initially-In-Place (Geological Description)…………………………………………….16
2.6.2 Fluid Distribution ……………………………………………………………………………………………16
2.6.3 Reservoir drive Mechanisms……………………………………………………………………………..19
CHAPTER THREE………………………………………………………………………………………………………..19
3.0 METHODOLOGY…………………………………………………………………………………………………19
3.1 DATA GATHERING …………………………………………………………………………………………….19
6
3.2 PVT ANALYSIS FOR FOUR OF THE RESERVOIRs. …………………………………………….20
3.2.1 PVT Analysis Methodology (Using Correlations) ……………………………………………….20
3.3 THE RESERVOIRS MBAL MODEL ………………………………………………………………………20
3.3.1 Reservoir Modeling (At Tank Level) …………………………………………………………………21
3.3.2 Reservoir Modelling Assumptions …………………………………………………………………….22
3.3.3 Input Data ………………………………………………………………………………………………………22
3.3.5 Aquifer Fitting ………………………………………………………………………………………………..22
3.3.6 Fractional Flow Matching and Pseudo Relative Permeability Generation ……………….23
3.3.7 Reservoir Predictions/Forecasting ……………………………………………………………………..24
3.4 WORK OVER RESERVOIRS…………………………………………………………………………………24
3.5 ANALYSIS OF WELL PERFORMANCE AND ECONOMIC ANALYSIS………………….24
……………………………………………………………………………………………………………………………………..24
CHAPTER FOUR ………………………………………………………………………………………………………….24
4.0 PRESENTATION OF RESULTS AND DISCUSSION……………………………………………….24
4.1 HISTORY MATCHING …………………………………………………………………………………………24
4.1.1 RESERVOIR DRIVE MECHANISMS ……………………………………………………………..24
4.1.2 FRACTIONAL FLOW MATCHING …………………………………………………………………25
4.2 RESERVOIR PREDICTIONS ………………………………………………………………………………..25
4.2.1 Current Production ………………………………………………………………………………………….26
4.3 TWO STRING MULTIPLE (TSM) WELL COMPLETION ………………………………………26
4.4 COMPLETING WITH SMART WELL COMPLETION…………………………………………….26
4.5 ECONOMIC ANALYSIS……………………………………………………………………………………….26
CHAPTER FIVE …………………………………………………………………………………………………………..27
5.0 CONCLUSION AND RECOMMENDATIONS ……………………………………………………….27
5.1 CONCLUSION……………………………………………………………………………………………………..27
5.2 RECOMMENDATIONS…………………………………………………………………………………………28
NOMENCLATURE………………………………………………………………………………………………………..29
REFERENCES………………………………………………………………………………………………………………31
APPENDIX……………………………………………………………………………………………………………………32
A1: APV Field Data…………………………………………………………………………………………………….32
A2: RELATIVE PERMEABILITY……………………………………………………………………………….46
A3: RESERVOIR PVT TABLE…………………………………………………………………………………….47
A4: RESERVOIR FORECAST…………………………………………………………………………………….48
A4: TWO STRING MULTIPLE WELL COMPLETION ECONOMIC ANALYSIS……………49
7
A5: SMART WELL COMPLETION ECONOMIC ANALYSIS……………………………………….49
8
LIST OF FIGURES
9
LIST OF TABLES
10
CHAPTER ONE
1.0 BACKGROUND
Petroleum reserves are declining, and fewer noteworthy discoveries have been made in recent
years (Abdus, 1990). The need to increase recovery from the vast amount of remaining oil and to
compete globally require healthier reservoir management practices (Abdus et al, 1994).
However, technological developments in all areas of petroleum exploration and exploitation,
along with fast increasing computing power, are providing the tools to better develop and
manage reservoirs to maximize economic recovery of hydrocarbons (Abdus, 1990).
A reservoir’s life begins with exploration, which leads to discovery; reservoir delineation; field
development; production by primary, secondary and tertiary means; and abandonment (Figure.
1.1).
Sound reservoir management is the key to successful operation of the reservoir throughout its
entire life. It is a continuous course, unlike how the baton is passed in traditional E&P
organizations (Abdus et al, 1994).
Reservoir Management is all about excellence in the Operate phase of an E&P project life cycle.
This is the only phase (Operate) that earns income, to provide the return on investment and it is
the longest of the four (4) E & P business phases (Exploration, Appraisal, Development and
Operate) spanning decades. (Shell WRM Operational Excellence, 2010).
Complete reservoir management requires the use of both human and technological resources for
maximizing profits (Abdus et al, 1994). It requires good coordination of geologists,
geophysicists, production, and petroleum engineers to advance petroleum exploration,
development, and production. Also, technological advances and computer tools can facilitate
better reservoir management as well as enhance economic recovery of hydrocarbons. Even a
11
small percent increase in recovery efficiency could amount to significant additional recovery and
profit. These incentives and challenges provide the motivation to sound reservoir management.
Reservoir simulation is the way by which one uses a numerical model of the geological and
petrophysical characteristics of a hydrocarbon reservoir to analyze and predict fluid behavior in
the reservoir over time. In its simple form, a reservoir simulation model is made up of three
parts: (i) a geological model in the form of a volumetric grid with face properties that describes
the given porous rock formation; (ii) a flow model that defines how fluids flow in a porous
medium, typically given as a set of partial differential equations expressing conservation of mass
or volumes together with suitable closure relations; and (iii) a well model that describes the flow
in and out of the reservoir, including a model for flow within the well bore and any coupling to
flow control devices or surface facilities (Lie, 1994).
Figure 1.: Reservoir life process (Abdus et al, 1994).
Reservoir Management approaches have been used over the years to make optimal decisions in
terms of improving production and maximizing the life of the reservoir. This concept is applied
in this study for optimization of the Niger Delta field using MBAL simulation.
12
1.1 STATEMENT OF PROBLEM
Petroleum reserves are dwindling, and fewer significant discoveries have been made in recent
years. Hence, the need to effectively maximize recovery from the huge amount of remaining oil.
1.2 AIM
The aim of this study is to maximize the life of the field, with a key focus on Reservoir
Management/developments strategies.
1.3 OBJECTIVE OF STUDY
The study objectives include:
Allow the field to flow without any work over
Work over 3 Reservoirs by completing with Two String Multiple(TSM)
Work over 3 Reservoirs (Intervals) by completing with Smart well
Economic Analysis of the field development plans.
1.4 SCOPE OF THE STUDY
This project involves maximizing the value of a Niger Delta field.
The reservoirs were modelled with MBAL software and all assumptions of tank model apply
Parameters inputted are for the field of study; Geological data, Petrophysical data, Reservoir
data, etc.
Economic Analysis was done using oil price of $48.16 and a gas price of $2.07.
1.5 MOTIVATION FOR THE STUDY
I strongly believe that this study will enable me to integrate the basic Petroleum Engineering
principles acquired in school, with industry best practices and thus equip me with a holistic
knowledge (Sub-surface) of the E & P business.
DISCLAIMER: All project works, files and documents posted on this website, UniProjectTopics.com are the property/copyright of their respective owners. They are for research reference/guidance purposes only and some of the works may be crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a reference/citation/guidance purpose only and not copy the work word for word (verbatim). The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own study. UniProjectTopics.com is a repository of research works where works are uploaded for research guidance. Our aim of providing this work is to help you eradicate the stress of going from one school library to another in search of research materials. This is a legal service because all tertiary institutions permit their students to read previous works, projects, books, articles, journals or papers while developing their own works. This is where the need for literature review comes in. “What a good artist understands is that nothing comes from nowhere. All creative work builds on what came before. Nothing is completely original.” - Austin Kleon. The paid subscription on UniProjectTopics.com is a means by which the website is maintained to support Open Education. If you see your work posted here by any means, and you want it to be removed/credited, please contact us with the web address link to the work. We will reply to and honour every request. Please notice it may take up to 24 – 48 hours to process your request.
