SCHLUMBERGER

YOUNG MINDS
CHALLENGE
Team – Ideas R Us
Anurag Tiwari Vishesh Sharma
Sarthak Bapat Shagun Joshi
 MOGE-3 FIELD
 Semantic Oil LLC is a well-established
petroleum E&P company.
 The company has proven reserves of around
7 billion barrels
 Contractual comingled rate = 10500 STB/day
 Original Oil In Place = 123 MMSTB
 RF = 17% ; EUR = 42%
 Nominal production decline rate
= 11.27% per annum

 Inlet Pressure = 165 psig ; Inlet Temperature = 200 degF

 Seabed Ambient Temperaure = 43 degF
 Pipeline Length = 22 km ; Pipeline thickness = 0.225 in 2
PRODUCTION PERFORMANCE
FOR EACH OF THE 5 WELLS

WELL AG-1
• For Well AG-1, we need to decrease
the bottom hole pressure (BHP) or
wellhead pressure which is in control
of the Production Engineer.
• We can do this with the help of Gas
injection also, but economical
concerns predominated in this case.
 ProductivityIndex (J) = q/P
J = 0.761 STB/psia.day
 P
= 2500/0.761= 1902.5 Psia
Change in well bore pressure = 2725-1902.5 = 822.5 Psia 3
Well AL-2

• For the well AL-2, we should go with

the Artificial Lift.
• As the GOR is not high enough. Also,
there is a presence of water cut.
• We should go for Electrical
Submersible Pump (ESP) to produce
large amount of liquid at a figure to
meet the desired production.

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 Well SS-3

• For the well SS-3, according to the

production performance graph
provided, we need to reduce the
Bore Hole Pressure to reach the
desired calculation.
Well SP-4

• For well SP-4, we need to reduce

the BHP just as we did for the Well
AG-1.
• To increase drawdown and getting
optimum flowrate.
• Increasing the tubing size can also
be one of the option as flowrate is
quite low.

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Well DG-5

• For well DG-5, according to the

production performance graph
provided, we need to install an
artificial lift or Electrical Submersible
Pump.
CALCULATIONS FOR REQUIRED COMINGLED FLOWRATE FOR
THE SECTOR

 •
Agreed contractual rate required from the MOGE-3: 10500 STB/day

The provided details of the reservoir are-

• Proven reserve: 7109 STB; Initial Oil in Place: 123 MMSTB; Recovery Factor (R.F.): 17%
• From the provided graphs for the five wells, the current Oil Production =
2050+600+3800+600+0 = 7050STB/day

Ultimate Recovery = 0.42123106 = 51.66106 STB/d

Oil produced till now = 0.17123106 = 20.92 STB/d

Remaining oil in place = (51.66 – 20.92)106 = 30.75 STB/d

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RESERVOIR COMPARTMENTS AND DRIVE
MECHANISM FOR THE SECTOR
• The given reservoir is a three-phase reservoir having a gas cap with a partial water
drive.
• The reason behind the partial water drive is because there is a decline in the pressure,
though it’s not so high.
• In active water drive, we observe that there is no pressure decline which is not the
case here.
• Reservoir is having a water drive or bottom water drive. But with the water cut data,
we can say that it is an edge water drive as there is a sharp change in the water cut
profile.
• As pressure of reservoir is above pressure of saturation, we can say that the GOR is
coming because of gas cap as dissolved gas is still dissolved in oil.
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 PRODUCTION-RATE PROFILE FORECAST, BASED ON A
DECLINE CURVE ANALYSIS

Production-Rate Profile Forecast

Remaining oil in place
10000
(NP) = (qi - q)×1/b
30.75×106 = (10500 - q)×365×1/0.1127 8000

q = 1005.41 STB/d
6000

q (STB/d)
 Now, 4000

q = q0
2000
1005.41 = 10500
t = 20.8 years 21 years 0
0 3 6 9 12 15 18 21
 
Time (Years)

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PIPELINE DESIGN AND OVERALL DEVELOPMENT PLAN FOR
THE SECTOR
  For outlet Pressure, According to DnV Rules (1981)
Details provided:
Hoop Stress Criteria:
ID- 12”, 14”, 16”
tnom = ……... (1)
Thickness(t): 0.225”
Length of the pipeline = 22 Km Hydrostatic Collapse:
Seabed Temperature:43oF;
Po2 – Po + 2 y Pc = 0…. (2)
Inlet Temperature: 200oF
Pressure = 16.5 Psig Where, Pc = ……… (3)
Roughness = 0.001” and, e = 2*……….(4)

Ascension: Buckle Propagation:

Grade of pipe : X70 tnom = ……….(5) K =……….(6)
(for shallow depth and low pressure);
Yield Strength = 70000 Psi

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Case I:
D = 316.23mm (12”)
For Hoop Stress Criteria, Po = 11.351105 Pa (from eqn. 1)
For Hydrostatic Collapse, Po = 0.25105 Pa (from eqn. 2)
For Buckle Propagation, Po = 79.692 Pa (from eqn. 5)
e = 5.26
Since, pressure from Eqn.2 and 5 is less than of eqn 1, the pipe of 12 and above
inches would be stable.
Case II:
D = 367.03mm (14”) - Po = 11.354105 Pa e = 4.75

Case III:
D = 417.83mm (16”) - Po = 11.356105 Pa e = 4.36

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For outlet temperature:
To = Ts + (Ti - Ts) exp ……….(7)

Case I: D = 316.23mm (12”);

To = 131.774 oF

Case II: D = 367.03mm (14”);

To = 131.864 oF

Case II: D = 417.83mm (16”);

To = 130.334 oF

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GANTT CHART DEPICTING THE FUTURE
COURSE OF ACTION

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ECONOMIC ANALYSIS
Pipeline (14”) 50000013.6702 $6835100

Initial Investment (21 years)

Insulation 200.22572178.5 $324803.25
= $ (-) 888.5 million (including
Rig Cost, Maintenance, other
personnel 100057665 $38325000
equipments)

Oil transportation $1.8 million As per NPV calculations,

Cost of Insulation 201472178.5 / 100 $ 202,099.8 After 21 years of Production =

$102.5 million @ 10%
Cost of electrical $ 2000 approx.
heating (including losses) IRR = 13%
Total Cost $47,487,002.8
THANK YOU!