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Lecture 2 Life Cycle of Oil or Gas Field

The document outlines the 5 stages of the life cycle of an oil or gas field: 1) Exploration, which involves seismic surveys and exploratory drilling to identify potential reservoirs. 2) Appraisal, where additional data is collected to evaluate commercial viability. 3) Development, where a field development plan is created. 4) Production, which involves regulating well production and maintenance. 5) Abandonment, where wells are plugged and facilities dismantled at the end of economic production.

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457 views22 pages

Lecture 2 Life Cycle of Oil or Gas Field

The document outlines the 5 stages of the life cycle of an oil or gas field: 1) Exploration, which involves seismic surveys and exploratory drilling to identify potential reservoirs. 2) Appraisal, where additional data is collected to evaluate commercial viability. 3) Development, where a field development plan is created. 4) Production, which involves regulating well production and maintenance. 5) Abandonment, where wells are plugged and facilities dismantled at the end of economic production.

Uploaded by

jordangeorge.66j
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Life cycle of Oil or Gas Field

Life cycle of Oil or Gas Field

Consists of 5 stages:
1. Exploration
2. Appraisal
3. Development
4. Production
5. Abandonment
Life cycle of Oil or Gas Field
The different phases - timeline
1. Exploration
 Is about finding oil and gas fields. Main goal is to identify and deliver commercially viable
field development opportunities.
 The following geological and geophysical (G&G) activities would take place:
Conduct seismic surveys
Process and interpret the seismic data and map the potential reservoir
select exploration well locations
drill and evaluate exploration well data:
core analysis to establish porosity and permeability
logging data to determine porosity, water and hydrocarbon saturation
production test data to determine flow rates and maximum production potential
PVT to allow reservoir fluid analysis and ascertain oil/gas quality and the shrinkage or
expansion factor
build a computer model of the reservoir and identify and where possible
remove major uncertainties by further data analysis, seismic reprocessing etc
2. Appraisal
 Exploration phase of life cycle closely intertwines with the next stage of
processing which is Appraisal.
 The objective of Appraisal is to obtain information about the reservoir in
order to make a decision whether or not to proceed with development of the
field
 This stage comprises
 Planning of of
and execution thea data
following
acquisition programme of additional
seismic,
 Reprocessing existing seismic data to obtain enhanced results and the
drilling of appraisal wells
 Evaluation of the results from the seismic and appraisal drilling activities
 Conduct Drill Sterm Test
 Using the information from the seismic and drilling programmes to update
the computer reservoir simulation models
 conduct initial conceptual field development planning and an environmental
3. Development stage
 The initial phase of field development planning could involve the
assessment of more than one development option
 Four components of a development plan can be used to describe each
option:
i. Reservoir: number, location, type of wells; assessment of oil recovery mechanism;
assessment of production over the development stage
ii. Wells: the design of wells to meet production requirements
iii. Facilities: process facilities, infrastructure, terminal/export facilities
iv. Operating and Maintenance strategies: manning level, daily production level,
support requirements, for ex. helicopters, supply vessels
4. Production phase
 Production phase is targeted at bringing the well fluids to the surface and
preparing them for use in refinery or processing plant.
 All production and maintenance activities would be carried out to meet
strict safety and environmental policies and procedures.
 The main activities consist of the following:
 Regulate production and injection to meet approved plans for the quantity and quality of product.
 Monitor and record all information to manage the reservoir, wells and facilities.
 This could lead to further reservoir development or modifications to the facilities
 Plan and schedule all production and maintenance activities to minimise production deferment and
operating costs
 Carry out maintenance to safeguard the technical integrity of all wells and facilities and ensure their
availability over the life of the field.
4. Production phases

 Build up period, newly drilled producers are progressively brought on


stream
 Plateau is period is typically 2–5 years for an oil field, but longer for a gas
field.
 Decline during this final (and usually longest) period, all producers will
exhibit declining production
5. Decommissioning/Abandonment phase
 The end of the life of the field is when it is no longer economic for the operator to
continue production, i.e. when the operating costs exceed the revenue from the sale of
production.
 It is common around the world that operator might abandon the field prior to its depletion
as a result of sale to other interested party.
 Such acquisition takes place between the super major operating company and independent
oil company when production declines to the level not commercially attractive to the
super-major.
 It is becoming increasingly common around the world that offshore facilities must be
dismantled and removed and the site restored to its original condition.
 The major activities during the decommissioning phase are:
 Plug and abandon wells by putting cement plugs into the wells at various depths and remove the
wellhead and casing to a depth of about 2 metres below the surface or seabed
 Dismantle and remove the jacket and all facilities from the site, ensuring that there is no contamination
of the environment from any oil or waste material remaining in the process facilities
 Restore the site to its original condition
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https://www.vision2030.gov.sa/en/projects/the-rig/
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