You are on page 1of 517
Applied Petroleum Geoscience Course i bp BP Applied Petroleum Geoscience Part of 21% Century Geoscientist Curriculum October 2003 Austin, TX, USA BP Restricted Al Fraser Richard Syms Chris Cade Duncan Frost Mike Healey Case Studies program : Al Fraser Richard Syms Mike Healey Tim Primmer/Nev Jones BP Trinidad and Tobago ‘Module [Theme Section 1 introduction 7 | 1.1 The E&P Industry & the value Chain Upstream 1.2 The Great Operator & CVP Overview 1.3 Reserves Management 1.4 Technology in BP 1.5 Global Oil Resources 1.6 Leadership in Exploration Basin Access 2.1 Plate Reconstruction 2.2 Potential Fields / Remote Sensing 2.3 Fieldwork 2.4 Seismic Acquisition 2.5 Well Data / Planning Basin Analysis 3.1 Structural Geology 3.2 Biostratigraphy 3.3 Sequence Stratigraphy 3.4 Petroleum Systems Play Fairways 4:1 Gross Depositional Environments (GDE) Mapping 4.2 Common Risk Segments (CRS) 4,3 Yet to Find Methodology (YTF) 4.4 Building the Prospect Inventory (PIj 4.5 Acreage Access & Licensing Seismic Attributes: 5.1 Seismic Attributes 5.2 Static Reservoir Description ‘Appraisal 6.1 Appraisal Context 6.2 Risk and Uncertainty 6.3 Trap Volumetrics - Definitions 6.4 Fluid Description and Drive 6.5 Segments 6.6 Dynamic Appraisal 6.7 Assurance and Benchmarking Development 7.1 What Drives Value 7.2 Concept Selection 7.3 Depletion Planning Reservoir ‘Management 8.1 Module Content 8.2 Fundamentals of RE 8.3 Surveillance 8.4 Simulation Models 8.5 Problem Wells 8.6 Value Assurance 8.7 RVAS 8.8 Reserves Growth Great Operator Student Notes The following have contributed to this manual (sometimes unknowingly) by providing examples, posters, discussion, clarification, enlightenment or QC/editing of presentation materials. We would like to thank them for their contributions, and also apologize to those who we may have inadvertently omitted. Roger Anderton Pat Angert Badley-Ashton staff members Sheila Barnette Barbara Buchanan Andy Beckly Thor Inge Bollestad Doug Boyd Kevin Boyd Chris Brandes Summers lain Brown Mick Casey Pat Connolly Julie d'Ablaing Mike Daly Stan Davis Glenn Davies Chris Dittaro Peter Dromgoole Tim Dodd Lauren Dowling Eric Ekstrand Ed Erwin Dave Ewen Anna Giese Jim Farnsworth Robert Fitzpartick Al Fraser Mark Hafle Steve Hall Knut Hansch Francis Harper Jonathan Henton Geoff Hill Rob Horine Richard Herbert Mike Hession Truman Holcombe Martin llingsworth Sam Johnson Joe Kirchner Tim Lane Jan Erik Kittisen Emilio Lasala Ellen Lindland Tammy Lowry Steve Matthews Bill Mills ‘Andy Pepper Gerchard Pfau Nigel Purnell Nell Piggott Sue Raikes Roger Reagan Tony Reynolds Debbie Rule Jason Scott Charlene Shen Ivor Simpson Dianna Stein lan Stewart Vannessa Sturrock Tim Summers Jerry Thompson Chris Travis Hanne Undal Martin Villegas Rod Wallace Ken Wells Dave Whitcombe im Whitfield Mark Williams Nigel Wilson Lee McRae Kate Baker Peter Bentham Tim Summers Niall McCormick Andy Pepper Ast Donovan Mike Mayall Darryl Willis Dave Pocknalll Jim Gamber Jason Lundquist Simon Stewart ris Meisling Robert Humphreys Richard Jolly Sandy Serra Tim Buddin Jake Hossack lan Stewart Dave Rainey John Fletcher Greg Schurter Richard Crider Mel Dyce Dave Timko Claire Sullivan Sarah Lewis Eduardo Co Graeme Bagley Steve Campbell Mel Dyce Andy Hill Tim Jackson Donald Keir Andrew Lewis Marcus Marsh John McGarrity Colin McKenzie Roger Murray Tim Nash Leendert Padmos Ronnie Parr lan Saxby Pete Westwater Shiraz Dhanani Bob Allen Nouyen than Tri Hoang Nhoc Dang Tom W.M. Brown Special Acknowledgements Dave Roberts, Mike Bowman, Dave Moore for the original APG concept and letting us get on with it! Dave Moore and Richard Miller for initiation of course and original set up. The following people provided most of the materials and helped construct most of a single module: —Seismic Processing: Tim Summers —Seismic Attributes: Roger Reagan & Pat Connolly —Structural Geology: Steve Matthews —Petroleum Systems: Neil Piggott —Potential Fields: Stan Davis —PNG Seismic Example: Geoff Hill 21* Century Geoscientist Updates to Modules (2002): —Structure: Peter Bentham —Stratigraphy: Art Donovan — Petroleum Systems: Andy Pepper & Niall McCormick —Seismic: Tim Summers, Terry Redshaw integrated Exploration in Tertiary Basins: lan Stewart General, overall good guy: Pete Carragher, the father of the 21% Century Geo. A 21" Century Production References BP Petroleum Geoscience Handbook, 1990, Dromgoole and Pepper, eds. + a cast of hundreds ++ Now live at: http://ut.bpweb.bp.com/PGH GEM. Manual AAPG Development Geology Reference Manual BP Intranet and the World Wide Web. Bits and pieces out of many BP training manuals + reference books (please call us for more details) Most extemally published diagrams are referenced; however, some may have slipped through the net. Please treat the course materials as BP restricted. . odie t: Upstart Overview ‘Applied Pevoleum Geoscience #bp Module 1 : Upstream Overview * Module Content ~ 1.1 Introduction to BP and the value chain ~ 1.260, CVP & Assurance ~ 1.3 Reserves Management in BP = 1.4 Technology in BP ~ 1.5 Basin Statistics + Key Messages — What does BP look like, what are the key technical processes in place, how and why we report reserves, what technology is available. ‘Apphed Petoeum Geoscionce Eebp ‘ate 1 Upstream Ovens! 1.1 Introduction to BP Content + BP Company context, structure, strategy and brand * Introduce the Value Chain Messages * BP isa large global energy company + There is a strong focus on safety and performance * Return of shareholder value is a business focus ‘Applied Petroleum Geoscience ‘eco 1: Upsteanr Overest BP company context « Integrated upstream/downstream super-major * Group business streams — Upstream = Downstream - Gas, Power and renewables ~ Chemicals ~ Integrated supply and trading (BP's oil, gas and power, chemical, financial, and supply trading activities along with all of BP Shipping © Global operations Applied Potroieum Geoscience ‘oakte t Upsoam Overiow BP numbers ep + Market capitalisation $152 bitlon (@t Dec 2002) + Revenues $179 billion + Capital employed $92 billion + Profit pre exceptionats $4.7 billion + Capital expenditure (excl, acquisitions) 4133 billion + Number of employees 115,250 (Dec 2002) + Number of shareholders In excess of 1 milion In business since ‘Amoco 1889; ARCO 1865; 3P 1909; Reserves 17.6 billion barrels of oll and gas equivalent (50% oil, S0% gas) Daily production 2.0 milion barrels of crude ol; 8.7 billion cubic feet of natural gas Daily Sales 6.6 mmbbls of refined products Refinery capacity (BP share) 3.5 million barrels of crude olla day Solar power capacity sold 62 mwa year Apo Packum Geasclrce £'bp BP — 115,000 People in 100 Countries Upstream - Exploration & Production ARCO Amoco BP Chemicals Burmah Castrol Vastar Veba ‘Applied Petoloum Geoscience . f'ebp Modi 1: Upstean Overcw BP Organisation Four main businesses + ERP + Gas, Power & Renewables + Refining & Marketing + Chemicals ‘Applied Petroleum Gececience af ican oa iebp BP - Structure Business Sub Sector (BSS) ‘Appfed Pelicloum Geoscience ieee gueetcee ; #'%bp Group Executive Management ae, © Overall strategy and direction for the Corporation ‘© Group CEO: Performance Contract with Board of Directors © Stream CEOs: Performance Contracts with Group CEO sec Sec hop Message from Dick Olver Over the next 3 years, we will focus on 4 things: ‘+ We will continue to focus on safety. We will rigorously adhere to the Golden Rules and will work very hard on bringing our fatalities to zero. + We will manage our portfolio to ensure that all of our assets for the future are fundamentally strategic and enjoy leadership positions in their respective basins or regions. ‘+ We will fransform our cost base to attain Best-In-Class performance for all of our assets and every operation. We will reset the benchmark by which Upstream businesses are judged. + We will continue to improve productivity through focusing with even more vigour on our Great Operator agenda - improving everything we do, day by day and year by year. soplea Petcleum Gooscione ; bp ‘Wexbto 1 Upsieam Ovens * respecting the rule of law, conducting our business with integrity, and showing respect for human dignity and the rights of the individual wherever we do business ‘+ creating mutual advantage in all our relationships so that people will trust us and want to do business with us + demonstrating respect for the natural environment and work towards our goals of no accidents, no harm to people and no damage to the environment + managing our financial performance to maximize long-term value for our shareholders ‘Applied Petroleum Geoscience ‘Mesa: Uasteam Overiow aebp Physical Assets <> Qo EI Hes RCOP-First Half 2002 |; 2001 Key Figures Total $6.6bn 19,423 ofl & 23,403 gas wells c — r [Upstream $5.3bn ° Total Reserves > tSbn Boe] 7 = ua Gas, Power & Renewables $0.2bn_ Upstream Profit $14.5bn Teoh 7 Zz Refining & Marketing $tbn Total Profit §20bn ~ md Shemiealesoabn | [capil tnvestment $8abn ae > a Oot Co Retiing i Market poatcns (Gas C) Chemicals ‘Applied Petroleum Goasoience thet pean Oren Se bp Upstream Portfolio \ mag TINT ne ae % wens jit * ; ‘ eer RA Retort eet, ©) canada!” ‘ax & Kazakstan Sakhalin Logue petayten Sta oc! Mo 1 Soa a fo shbaonabl hina ar ni aan vietnam reducing: Oe ea : here eon ( Enso. > 200 boos ; ry) ts) <200 2 golive & Ieee bec? ecu : op (© Developments © Exploration ‘ype Patolaum Geosoenco ‘Bie 1 Usoram Orono bp Upstream Organisation Ure so "G0" FOCUS AREAS | patamanee Delog & peed bes i Completions Exploration t ’ ia Major Projects i Operations business | na Reservoir & Wolls | $ Functional paeane eee Delivery of | ter ep] msec Great | / ages | gaara / sre Applied Petrcieum Geoscience Motule 1: Opaieam Overs Upstream Strategy ae bp * Focus on 5 Profit Centres = Angola ~ Azerbaijan ~ Gulf of Mexico = Indonesia Trinidad + Ensure retums from existing assets and harvest ageing fields. ~ Shareholders require capital return and growth f ‘gai Peleum Ssosence cite 1: Upstream Ovens ae bp Four basic brand b * Performance driven © Innovative * Progressive * Green And every interaction we have should be consistent with ihese Applied Petrcloun Geoscience ieee pn nee aie bp What we stand for *+ Policies are essy to slate Bu heir ulimate expression les in the way we Behave, hi how we do business + (We sock success) by balng sonekive and alive to the interests and concomes of abr, and by Working constructively with them fo find solutions of mutual benef. + A.qood business should be Both competitively success and a force for good + Acompany mustbe an integral part ofthe socetyin which iteperates + Our business potcies focus on five areas - ethical canduct employees; relationships; HSE ‘perfomance; and fence and contol. They are about conducting Our business in manner thats both distinetve and responsible - and we recognise that ting upto them may mean ‘ha, fom ime to time, we have to forgo certain businass opportunities, & anti cet Pat 8 HSE commitment ‘Applied Petroleum Geoscience Module 1: Upsteam Overview BP and Global Climate Change eee [ichsl Cima Change (Sucre econ vase trea ecmeneast Sisceerecemese heme “tebe meetin eksrcmnersrotee 7 Bape amass Applied Petroleum Gaoscionce ‘Motte 1: Upsteam Overview Petroleum Value Chain Basin Sereening Modules 2 & 5 Prospect Evaluation Dailing ana Discovery 10° or mine( nore ta depart) ‘he dota or the bla mena ‘Aporaical ‘Capaxin ed ater colour= bigger $8) ‘capex dacsionin tue srosconuten —[foduie 6} Development engineering Board Projecteanction —] Thetia money docon Detaled engineering ‘Construction ] §100' rion Production lets management ‘Applied Pelwoleum Geascience Modif: Upseam Ovenion Value Chain op 1 seo feel Minirun (not zt 2ero) uoaranty Et sraseuy entice BL 4 | 5 z | |e . i 2 ote io, Ble a | sreT) [seer 8 273 z a | £13 i gle & FHELo oeveLopuent i 2 ¢ ® = = a [NPV @} fortis poet S800rition 10 ‘ets tan eee £% bp Summary + Multi-national, diverse, global energy company committed to health, safety and the environment. ‘* Organisation is changing — focus towards 5 key profit centres. Harvest ‘ageing’ assets. * Value chain important to continue replacing what we produce ~ preferable to grow rather than replace. "4 ‘Applied Petrtoum Geoscience Mode ttntecton iiebp 1,2 GO, CVP & Assurance * Introduce the FIVE Great Operator (GO) themes * Introduce the Capital Value Process (CVP) and it's application to the upstream business * Introduce assurance processes ~ Reservoir Value Assurance (RVAS) ~ Drilling assurance = Well racking system (WET's) ‘piled Petreteum Gootctonce Moet iouosucton Great Operator + Context "what would be the financial outcome if we wore best in class at everything we do?" ~ sess We Would be 25% more profitable than we are today. This was the origin of the phrase ‘the Fith Quarter’ ~if we could be best in class it would be like adding an addtional quarter to each year. * GO Teams ~ In the middle of 2001 we created a new upstream organisation designed to support this strategic Intent, Part ofthat pulled together groups of Performance Leaders into five GO teams to guide the development of, actions in ve areas informed by a radically diferent type of management information from the financial data that we have normaly collected. = This new information describes the underlying elements of the physical performance of the business — aspects lke dilling and operating tffciency reserves and production movements and the quality of the projects wo build - and allows us to understand in come detail the levers {tal aro avalable fo us and fo establish the targets that will allow us to close the gap to best in class. ‘Applied Petroleum Geoscience Mean teoaton eebp The five GO teams # Exploration Major Projects Drilling and Completions Reservoir and Wells Operations ‘Applied Petroeum Geoscience Module tarcton : “ebp Delivering the Great Operator o PLs create the linkage between BU Line Delivery and Functional Excellence to become the Great Operator Performance | GO PL brings: Functional Delivery |. Bu activity & Excellence productivity plans + Historietrack record coptinsu: @) eos + Provides poor «Finalisestargoty hallnae nalse a Great ~ (coca), spain Operator + kanes overs practice 8 © Ce © fnetonal prize Siteesses — (m) — 7) G0 PLTatarnS with: + Hope got «+ Functional challenges + Lovers to improve ‘Applied Petroleum Geoscence eo tnenatie kbp GO Functional Prize 2005 Mid Cycle RCOP “What would be the financial outcome if we were best in class at everything wo do?” lan Vann it would be fike adding an additional quarter to each year.” Ding ac” pete” ce Rem = Dick over ce os ‘$8.5bn Prize = Se quarter Seater «coed akon svn “ApedPeroaun Geoslonce itt £ebp Exploration Excellence 2002 Targets “U6 ition Gates Discovered $039/8arrel Finding Cost ~ Exploration Lore $5000 PLAN seloction Stateay ace Inthe tant ‘Dieerersint fete [LEARN DO] eiwsuionr ay pos ‘te ryote Semmen rere bt orng & Paterson pce = [mene oa Actions to Deliver Targets ‘ualty Tarough Cheiee 2002 Forecast Discovery Volumes: by Area, ‘Appted Petrotum Geoscfonce Motte todo bp 2003 Great Operator focus o + Quality Through Choice ~ Only the very best wets willbe dled 2001 Exploration Adds Ongoing pertoio management, optimisation as prospects mature + No Dry Holes ‘Ready to Dll assurance Rebuilding of peer review processes ~ No loose ends" in isk reduction efforts ~ Significant increase in seismic spend designed to inctease inventory and lower isk Focus change from drling to inventory bullé-up (e.g. GOM) + Organisational Capability 24 Century Explorer ‘Applied Peroteumn Geoscience . th icon “bp Drilling and Completions Excellence 2002 Targets 10% improvement Days 10K Fes Production Efciency of 77 $mm/mboed 270 mboed Production om Dev Welle/6T's Retions to Deliver Targets People (- PLAN “+ Engage end insoiee commuatty ttencyimpronment DO] ¢ ssatish ret sepiman ease forwet planing Productivity Improvement ° (atta tededontat + Use WETe tr prosnttyeetng MEASURE Regional Performance ‘Applied Ptrteum Geoscience & Mobi beducton bp Scorpion plots ($m/mboed) Example plot for Europe 600 400} 200 Cumulative Capex (mms) ° 25 50 78 100 ‘Cumulative Production (FY Average mboed) ‘Applied Petroleum Geoscience 7 re ean ; Esbp Reservoir and Wells Excellence 2002 Targets 20 mboed improverient rom Decline Management 100 mbood Well Work at 20% Cost Savings Replace Production (1200 mmnboe) Ketions to Deliver Targets Dectine Management PLAN ay water inet a DO 1 ig arodereconeopon set Pushing Reservoir its League Tabla Seserreona wed MEASURE TPT ‘Applioa Petroleum Gecscionce RESERVES. 5 Year Plan | Technical Limit new technology opportunites Commercial ‘opportunities | Sa | ‘current performance CURRENT OPTIONS &, ULTIMATE LEARNING | PERFORMANCE | POSSIBILITIES | RECOVERY future options and possibilities Applied Petroleum Geoscience A fk bp Great Operator Team Interaction inte $ watt chatege zs ‘& Production ey ‘xn 3 a cresting the Future 0 Team Outputs Challenaing “Managed Base Benchmatking desing Ranking Produaton growth Proesing eee Sharing Reduced wellwork Regional Regione Sanctiorable ete Recerveadds See Foture resource oe ‘options generated Fewer troken’ wells “racking Tools RM, WH, WETS, PL ‘pid Petrteur Geosclence tnt ectan kbp Major Projects Excellence 2002 Targets Unt o-cost average of $2.76! Reduced Project Cte Times to 8¢ months tot mond Prod ith 24% StartUp lene Learning tool * Opportunity & Riek = Erte (- a Le) 5 Nr rete one Detwerng porate 4 Teehnles mits * Ritedon opertnt De-tuterng OVP + Devalop Rois FA 1 Satup 0 ree programme 1 Eoang Pejcts sommnty LEARN Do. wu MEASURE J) anaes Peterenee erercrna oat LL seen IPI 0767 ‘Pepteaeranin cuore fib Creating Great Projects Integrate wih other GO Project Teams Trtegration Excellencd = Orting = Operatens Facilies Development Sai Excellence punt romt®oL0|| (hess Shona, Seed dean > |] Szseaie Dope > Four Themes + No Train Wrecks Delivering Opportuntice + Be-ctutering CVP + People Engagement > Performance Management 2epted Parca Gececince om febp Current Major Projects ow Ee j we ee C=) ia ee os Post-sanetion ) inne é itebp Operations Excellence 2002 Targets nt Operating Etiloney ition intaiPo's 22% improv League Tables Choke Model ‘Appled Peroeum Geoscince Stetina Eebp 2001 Production Appod Ptrolum Geoscience Beamer bp Primary 2002 focus areas for GO Teams, stat reseoeee Menmatdaone patna] eyo oti oe completions. maa — = Daysteceptonon = Groce specimen ee aati ii ene a Co et bee ere ee eae Projects | BEepmoenne ee ear = Operabily (exeeute-opseate) (eee sche scams) Peggtenenen Selatan P fh eeoee aa ol Tepraetermtom | fayunger eae ae fReservoira] 2 eee emoeet = Revoses ey ce = coco ec ee tr ‘Apple Peoleum Geoscience awretirinnh tebp GO Summary ‘See GO Website navigated from http:/Jupstream.bpweb.bp.comfut! Water wean bp CVP — What is it? oO" "o Cm] Coe] ca] o Comer] ‘ett f bate ae erst? ? (reid toaateg D 10 ‘Applied Petrooum Gaacclonce Module esodoeton bp CVP Subsurface Developments ——_ evatate Ccroto Determine Select Finalize —_rogucoan 228tto bisiogss project the project operating SSH fpportine feaably & prefered Scope cost asset. Performance EMigned algnment project and consatnt © Sine rae) Scale asap, SPEMAon Portoio. —buslness snd got oe strategy: projet ene ‘tem tothe iaentty Fined opportune Shareboders ‘Aled Pevoleur Geoscionce lit an bp CVP & the Value Chain " Zpptearerioum Grose ene bp CVP & Exploration & conrenceren = oe cit oe “ge ‘App Peres Ganelence : Moda: weecton bp CVP & Appraisal ‘Applied Petroteun Geoscience oti: reton febp Technical Assurance ‘+ Reservoir Value Assurance System (RVAS) + Benchmarking = complexity index = analogues Drilling Value Assurance Wells Tracking System (WETS) Exploration Excellence (XX) Information provided in Appraisal module 13 ‘Applied Petroteum Geoscience iat Upstream Overs 1.3 Reserves Management itp Content + Highlight why we report reserves, what the data is used for and why we need to get it right + Introduce project metries and ranking ‘Appiod Ptrooum Geosclance Wty Resorves™ irbp Volumes are a proxy for Value Oil and Gas reserves are the main upstream assets —Our business is processing barrels * Investment analysts use barrel based measures —Replacement ratio, F&D cost, FYP ratio... —Consistency ensured(?) through regulatory compliance The business uses barrel based measures —Discovery cost, NPV/boe, transport cost/boe. + Reserves directly impact financials via DD&A ‘Applied Petroleum Geoscience Mosul t Ussream Over Crude Oil Price 1869-1994 bp a ee E (esas vice tax] 3 [rence raat rea Gala a ad ea Pal el ls 1960-1897 rao Econanice @1200 uss puncise wees, "ra cee olan Appl Paolo Geoscience Hee opeiean Crude Oil Price 1947-1998 sp 7 Fl Tania us wer & | fees ETO ican i Revolution oae rt ‘Yom Kippur War ted ober ee es oo 1012 1 us teteuchaarice(Wathend) ‘wr aan ot “eaenronent ‘anueracan “Applied Peiroiaum Geoscience deca oee cee Crude Oil Price Nov. 2002 eb Brent Crude OW Futures ‘Apped Petroloum Geoscience ones + With low growth & stable market shares, See $25-$3 «Wig benene-toaeak Oil + Improves cash position $18-$20 e 7 $41-$17 7 F&D $5 F&D : one Costs oi $2? FaD 1981-85 1986-96 1998 > ‘Applied Pewcloum Goosclence Gil and Gas = business drivers iebp + Oil- oil price isthe big driver - world market with ‘continuous’ price fluctuation dependent on supply and demand = Opec quotas — Health of global economy ~ Seasonal variation ~ Political risk in the middle east + Gas - location, infrastructure is the big driver — Long term contracts in Europe, spot market in North America = transport in gaseous form by pipeline is expensive = flelds need to be close to market, but several long pipelines in planning ~ Ipg - liquefaction is an alternative - NW Shelf -> SE Asia market, Trinidad ‘Appted Petroleum Geoscience Hoo enter BP Reserves - 1/1/2002 by Region bp The World “‘aaPacite aznel ‘satel Samora ‘esnat : “satet ‘Apped Petroloum Geoscience festa rein roc Petroleum demand getting lighter iiebp saimtataigtgt § 8 Sources BP Stata! Reviaw af Ware nergy 2001 ‘Applied Petrofeun Geoscience Mode 1 Upsveam Ov Gas — production growth abe + Natural gas was the fastest-growing fuel in 2000, with global consumption rising by 4.8%, the highest rate since 1996. = This was driven by growth in consumption of 5.1% in the USA and Canada, which together represent more than 30% of world demand. = Chinese consumption increased by 16%, although China still represents only 1% of world consumption. = In the FSU, growth of 2.9% was the highest for a decade. + In-2000, gas production rose by 4.3% worldwide, more than double the average of the last decade. The data is dominated by developments in the USA and Canada, where production rose by 9.7%, the fastest since 1994. “Applied Poioleum Geoscience eee Gas consumption profiles by region sop Seeger eornie ‘Applied Petroleum Geoscience (em Cepsteu Creston 7 The Produced Barrel arbp ‘Apped Ptrcloum Geoscience ‘Modul : Upsteam Overvcw Why Management? ilebp Reserves Reporting is not a passive activity, it is the outcome of an actively managed process Managing does not equal Fiddling! * Expectation Management —eg Stable track record, underpinned by... * Business Management — Understanding the optimum allocation of resources in order to generate results that meet both our investors expectations and our own aspirations “Appad Patroloum Geoscionce poner b The Value Chain of Barrels sep <2 INTERNAL CAN [Henzel Prospect e@ “Applied Petroleur Geosclence Moa: Upteam Overvew Upstream Reserves Exxon-Mobil Shell BP Chevron Petrobras Total + Fina ENI ARCO Texaco Statoil EI YPF O Gas co 10 15 Reserves (B boc) _ “Appted Petroleum Geoscience Hoda 1: Upsveam Overvew Total Reserves ae bp 20000 Arco +0000 Fe —bP Amoco aaa i— Chevron F sao00 —shet & 42000 |—Texaco = 000 —Exxontonil 3 ee § e000 IChevTex & c000 é ee eee eee 2000 oben ‘end'90 end’92 end's4 end'a6 end's8 encroo ‘Applied Petrotoun Geoscience Mosse: Upsteom Overview Total Reserves/Production Index a bp 16 Bis} Su gis B32 éu - B10 F § 2 ‘end'90 end'92 end's4 end'96 end's8 end'00 ‘Applied Petroleum Geoselence iin romteon Serer £'sbp Developed Reserves/Production Index ‘=x Olle S | — ExxonMobil |—showt I—BP Amoco Reserves/Production (years) 5 end'90 end'92 end'94 ond'96 ond'98 ond'0o serine a dire a BP Reserves - 1/1/2002 by BU bp ‘Apple Petroieum Geoscience edo Upstream Overs BP Reserves by Facies Type & Pp BP's Future Production By Reservoir Facies ‘Applos Petroleum Geoscience Module: Upsteam Oveniew b Why Catogorise Reserves ibe Conformance with regulatory guidelines (proved) Improve understanding of reserves base (different types of reserves require different actions) Increase focus and effectiveness of work programmes * Aid motivation * Define performance measures “applied Petroleum Geoscience Norte Usteom Overview br Reserve Categories ae 7 ae id Neo ‘Break oe visoNP1 Pub2 Put PO. iss ‘Book’ [—] Sanction] Develon| Ci sectea - Bara | NPE: Nonproved Proved “Appied Petotoum Goosclance tes Potten ree by BP Volume Stocks - 1/4/2002 ep sepoe Pag era t E zeae Notional : : | i ‘ Laas. SplPoDag eae ie 7 cae eine pun E seco || Non Quality Pz £ les = so00 = INPZt POI Quality = Presa Nonoroved trove tei Uptern Oren £'fbp Business context - value of money + The company ‘borrows’ money to invest in exploration to find, develop and sell oil to make a profit to return to the lenders ~shareholders ~debt (bank loans) c. $6bn (for BP end 1997) + Investors in BP look for a percentage return above that they could get in 2 low risk investment (guaranteed bonds etc), commensurate with the higher risk involved + Typical cost of capital (cost of debt) for BP is 7% + BP looks for an annual return significantly above 7% (1H 97 19%) Appted Pete Geoscience ate Upstean Ovo Business context - value of money agbp Because there is a cost to borrowing money (and inflation), then the ‘value’ of money decreases over time ~ If we have $7000 for an investment today, we might need $1000 now if we want to make the same investment in 5 years time, and ‘over $12000 in 7 years time, accounting for the required interest payments and inflation. ‘Thus $1 in the future is worth progressively less than it is now. + Implications — Full life project valuations are ‘discounted’ back to present values (NPV) ~ Early cashflows are worth more than later cashflows - hence the push to get early production - ‘fast track’ developments os iebp ‘eda Upstueam Overview Business context - NPV + Formula for discounting a cashflow Ct ocurring in year t to its present value Co is: Co = Ct (+ ryMt + = discount rate or cost of capital ‘Applied Peroteum Geoscience ode Upsreon Ovenion Project Ranking measures ip + Net Present value - NPV - cumulative project cash flows discounted lo present value (if NPV is postive it returns more than ifthe capital was invested at an interest rate equal tothe discount rate) + Intemal Rate of Retum - IRR - The discount rate at which a project NPV is zero + Expected Monetary Value - EMV - combines NPV and risks associated with success or falure: EMV = (NPV{success)* Prob(success)) + (NPVAfeilure) * Prob(alure)) + Risk adjusted Rate of Retum (RARR)- The discount rate at which a aroject EMV Is zero “Apnied Petroleum Geoscience itt Upton ners Project Ranking measures iteop + Project value (NPV or EMV) measures the size of he project + Rate of return measures the profitability (IRR) + Both are used when ranking projects to decide which options to invest in er ee Commercial Hurdles bp + Rate of retum - typically has to be >20%, but this is dependent on size, risk, market conditions and timeframe + Example 1998 cost targets: —finding - $4/bb| — development - $3/bbt = lifting $2/bbl + discovery costs e.g. Norway Exploration 97 target <$0.75/boe + lifting costs e.g. Draugen 97 target <$1.6/bbI ‘Applied Petroioum Geoscience Mace: Uptesm Ovemien b Summary a ut + Reserves management & reporting is important to satisfy auditors, the SEC (securities and exchange commission) and shareholders. + Important to understand and use the risked segment approach. + Reserves progression is important to BP’s value and financial planning. + Projects are ranked using BP metrics in order to identify best investment opportunity. ‘Appts Peoteun Geosclence ote te nwcscaon f'tbp 1.4 Technology in BP __ Content + Update on technology provision in BP Messages * The Exploration Process + BP Upstream Technology * Technical Networks * Documentation ‘oped Petroleum Geosclonce Modest inestcton bp The Exploration Process: Class discussion Applica Petroleum Gooscionce ‘aetae:mscoefon esbp The Exploration Process LN Phase 2 Prospect level understnding rs prospect segmentation/ — Shotpoint rise | ome PLAY FOCUS Phase 1 ‘basin ssi ‘anata ie Fundamental oe sears te basin/play level regional understanding underserl Sng ton Sea a, | tar ‘Applied Petroteum Geoscience Mate invodacon bp The Exploration Process: Middle East example ina acon a Phase 2 A Prospect level understanding ee prospect segmentation! Sorgen a man | ene | ee woos | att | 7 —Y PLAY FOCUS Phase 1 veceweaen | le NSS Fundamental ewan basin/play level regional undorstandiny understandi abaya en sit | “SESE | elie | “GEE | tear | ae Apped Percteum Geosclonce Mobaneucton by The Exploration Process: Key tools o t Reserle {ences ee Risk segment mopping | ‘Applied Petroleum Gaosclonce Mote tinsegoebor bp What does it take to be a Great Explorer? NEXT DECADE OF OIL = Imaging: Need improved subsalt resolution in MC & breakthroughs in Sifacutt salt areas RUSSIA = Onshore seismic costs = Data Management LONG TERM GAS TRINIDAD & INDONESIA = maging Deep Gas INTEGRATION of information is ! ‘Applied Petroleum Geoscience ate inredocon bp Technology and the Upstream Business segment . Exploration |[ Development |[ Production Functonat ——4 SO hess: Operations | a a a ae Dine: Esa goannas Seng ce vem, Err i Er co) roy tener enasing Seen: Spends soe “sam nam ‘Applied Ptoleum Geoscience steven yop BP Upstream Technology Upstream Technology consists of UTD and UTG Upstream Technology Directorate (UTD) + Staff of approximately 60 + Includes GVP, HoD’s, GO Team Support, Exploration Excellence, Global L&D staff + Focus on strategy and technology oversight Upstream Technology Group (UTG) + Staff of approximately 750 + Includes TVP, 7 Technology Units, B&C support + Focus on Delivery (TSW, R&D, and Technology Stewardship) ‘Applied Petroleum Geosclence Mbp Geoscience Technology: 4 Key Links to Business Delivery “Formal teen ransferot RED project results *TTapps stewardship “eConsorta review 8 oversight L&D Peer Assists ‘Mtentoring & one ona trating + Speclaized ‘Werkshos “echoes eure development and oversight Tech Service Work Invite suppor pbslctvtes requested byau's + Dotvered via stat on § 1 datvery teams R&D Projects = Longestrm (25 yr} proects ‘signed to "wanstorm the Can be up to 906% funded by BL “Examples Include Advanced ‘Seisms maging, and eFald ‘Applica Petroleum Geoscionce 2002 Geoscience R&D Technology Projects ilybp a Der —Dellvery.&.Sco; 1 was. Azorbal ‘SRI ‘com owe, 0D” ‘e, ae ‘Lead BU: GoM DWO ‘egynrould ©, , LoFs 6 OY Lead BU: Norway AS UTG/BU funded Projects Life of Field Seismic F off-the-shelf, optimized solutions for installed Seabed and downhole selsmic-on- demand systems ‘Subsalt Reservoir Imaging Improve imaging of structure, lithologies and fluids subsalt “BU funded Projects (selected) No Reservoir Surprises Leverage data & knowledge to improve prediction, and characterization of deepwater GoM reservoirs North Sea 4D Implementation Deliver off-the-shelf, optimized solutions for installed Advanced Seismic Imaging Development of new imaging methods ‘Applied Petoteum Geosctence Subsurface Technology Advisory Board for 2002 Tucoord. & Roles Hob's Own Process & Provide Assurance TUL’s Responsible for Delivery tebe HOD TUL Dave Bents OW Vesey neds Mesh” — Gigy ylang ‘mana te ee pact onan basis in! : 5 armani SEES omeneen | mace | Semen Foca Tot as ios Prone tcheegyaptnton i asrnento TPN an vn Be ‘Applied Petoloum Gaosclonce Technology Networks What are networks? * A.group of people that share a technical interest and communicate and share learnings/issues on a regular basis via websites, email, and network meetings °What do networks provide? * Q&A: Real-time response/dialog to technical questions from the user community + Focused R&D projects (SWATS) + Ensure take-up of R&D applications via formal technology transfer activities (workshops, etc) * Discipline-specific IT applications stewardship ‘+ Custodians for JIP/External consortia * Technical L&D support ‘Appoa Petroleum Geoscience Made todocon br 2003 Geoscience R&D projects & Network Cee : Aveo GO tem Leader RAD Bepl_——_ Wo Reser Surtees ‘AetDonovae Oar Wis RAD Expl Component Sls for Revere ania & Reon Tm Jhon RED Expl Perl Systems Don be Vaue Ce stpnanbuppeecter Rio pl_—_—Exiowe gh PesuroHeyh Temp DENG MFHT) James Wetinge Sewarshiptio! Sea HSE NO chan estore Storacenpbep! —_PerlumSytens nay Poop Stwardptia! ——_Ovactttocuioe Osan tL arcoanaty Sevarnptio! ——_Sraugapty/Boseat ne Jans Gane Sion Pa StoradeipRE Seats ke asta Bonovan StewarshpReW —_Visuatzaon Devi Rovere ‘Appted Petroleum Geosclence bp Technical Networks * To find what networks are out there: ‘Gre Home Page Intpetipeteeae bpwee.np.comiuthome asp Networks (takes yout the frost complete it). Applied Petroleum Goosclence (Modato 1; imroduction & bp Networks - access/join « Accessing a network ~ Select Network Page (via UTG-Networks), then ~ network leader identified = links: exchange forurniQ+A folder, website, connect page, idea » Join a network = Contact network leader by phone or E-mail ‘ppledPetroieum Geosclonce eet ert irbp How we document Other Documentation: Technical] Document Decision Making Report | Technical "Decision Making et “FM. (Financial Memorandum) Prospect| Geologic Evaluation Memo [AF-E,(Auhoration for GEM, | > Documenta Prospect Expense) | + Project Spec. Pre-development Drilling Package > Well Location Cc STOP PRESS. Significance Post-Well The Video GEM oview Analysis P.D.D.P ‘Applied Petrcleum Geoscience ote cence bp Peer Assists and Peer Review o TECHNICAL REVIEW STRATEGIC REVIEW + Ideas + Is this an option for BPA + Constructive Challenge | |. Entrylexitipartner decisions + Technology Transfer + Consistency Across World or + Use Our Big Brain Asset (Best opportunities for + Internal AsseVExternal BPA) + No technical issues/gaps + Technology Transfer ‘Appia Petroleum Geoscience ote hose bp Summary ® * BP focus on getting the "Regional Story’ right as a fundamental underpinning of all exploration decisions * Technology and assurance provision aligned with the 5 GO teams * Networks ~ Geoscience: 8 networks, functionally-based ~ “Engineering”: 8 networks, functionally & process-based + Documentation/Peer Reviews critical to the assurance process ‘Applied Porcleum Geoscience aaa oeencton bp 1.5 Global Oil Resources o Content + What we have found and what remains to be found Messages + Historical Perspective Known Global Oi Endowment Controls on Major Oil Provinces ~ Fundamental Geologic Principles + The Possibilies ~ and Constraints = Global Scale Oveniew Overcoming Constraints = Technological = Erwiconmental = Poltical sep Pacem Svecrce anon Spbp Oil How much oll is there? ‘+ Current views around 2.2 trillion barrels ultimately recoverable oil at $40 ceiling price. + Burned: 700 billion bbl ‘+ Global reserves: 1000 billion bbt °YTF: 200-500 billion bbt Global production ‘67 milllion b/d from 850,000 wells. + Global average well productivity is < 80 biwelliday. ‘+ 150 fields in the Middle East, yield 17 million bid (Iran, Iraq Ipre-sanctions}, Saudi Arabia, Kuwait, Abu Dhabi) “Applied Petroleum Geoscience elt tacos bp Fields o How many oil fields are there? ‘= 41,000 known and produced oil fields = 10,000 “significant” and >40,000 minor oil/gas fields* in the USA + 150 major producing fields in the Middle East Giant Fields + 350 giant fields in the world, each con! mmbbl. + The giant fields hold 50-60% world oif - 1200 billion barrels recoverable (6300 OOIP). + The largest known is Ghawar (Saudi Arabia) with 489 billion barrels In place, 112 billion recoverable. ining more than 500 ‘Applied Petroleum Geoscience Module oaaueon bp Global Conventional Oil Distribution Mideast 70 bal "150 onbl 1900 bnbt ‘Appfed Pezoloum Geoscionce oa 1: incodcon £ybp Introduction = In the 1990's 5 major new Oil Provinces were developed = West Attica = Brazil New Deep Water Discoveries >30 Billion Barrels - DWGoM = Caspian Sea New Access during the 1990's = Sakhalin ‘= Future New Province success on this scale and pace is very unlikely = A few, possible New Provinces exist but have serious constraints ~ Existing Provinces stil have significant Yetto-Find Oil Reserves, ~ BP Conclusions are driven by Fundamental Analysis Global Oil Discovery Profile ‘Anpfed Petroleum Geoscience eee yop Discovery Profile - Oll&NGL Discovery Profile - O&NGL (IHS + WoodMac + BP) ‘Applied Petroleum Geoscience ede ttotton bp Drivers of Major Oil Provinces. G * World Class Source Racks ~ 7 Geological Intervals Well Known from Global Studies ‘= Oil Generation and Migration Sulicient Heat Flow and Mejor Structural Elements Reservoir ~ Thick, Permeable Sandstones and Carbonates = The Major Deltas and Carbonate platforms through Geological Time «Trap ~ Giant Structures Sealed by Mudstones or Salt «All Factors are Necessary for Giant Oil Provinces, ~ And interact in complex, subtle, yet predictable ways ‘Aapplod Peroleun Geoscience ee ct tybp Middle East — Arab Oil Play Fairway ee ‘Appied Petroleum Geoscience Major Oil Provinces: The Futt a USA - DW GoM Subsalt Mexico ~ Deepwater | ‘South Atlantic : ‘Nsw Basins ‘Middle Eas? |_ Play Extensions |__sub-Salt Areas opted Penal Geoscience Chop Geological Complexity in GoM: Future Opportunity Source Rock =~ Reservoir ‘ ‘ ‘Applied Petroleum Geoscience tet tora bp Addressing The Image Challenge a Thunder Horse ia arate sopth Migrated | Ovvlaedant pains Time Migrated Depth Migrated Corpeetmnih WeserGes ‘Applied Petroleum Geoscionco ite tinvectn Fp GoM Discovery History - 2001 ‘GoM Shelf 3° 30 E20 — deepwater i. ean GoM Deepwater Detail & sierra eT E 1938 12| im 6° Ss Ss se mm & 8 8 8 Discovery Sequence ‘Cum Reserves Bboe 1 20 40 60 80 100 Discovery Sequence -Apifed Petroloum Geasclonce otto ecucson bp Deepwater GoM. & * Possibilities Up to 25bb0e Yet to Find in USA Large, possibly Giant Field Potential remains Play may extend into Mexican waters Further Mexican DW potential exists in Campeche / Sureste + Constraints ~ Complexity and Technical Challenges of Sub-Salt Imaging Much of the YTF may lie in small fields Fundamental Economic Barriers to smaller field development Foreign Participation in Mexican E&P Limited scope for reserves growth through lete life intervention -eatere Sos o Major Oil Provinces: The Future Poss Russia Arctic provinces ‘SQUTH ATLANTIC New Basins Sub-Salt Areas ‘Middle East Play Extensions _| ‘Applied Petroleum Geoscience od inducbon eebp South Atlantic Plate Tectonics 134 million years ago Rifting & Source Rock Deposition 113 million years ago Salt Deposition 100-70 million years ago ‘Major Source Rock Deposition ‘80-60 milion years ago Onset of reservoir and seal Deposition as large deltas following source rock deposition ‘ope Pesteun Gesscerce Me Angola 2.3bbo Girassol, Dalia, Rosa,& Lirio # Very large Structure ~15 x 4okm + World Class Source Rock + Above Deep Focus ‘+ Numerous Of-flled Channels -Apaied Petroleum Geoscience Model 1: roduction bp South Atlantic Basins __ & © Opportunities — Up to 40bboe Yet to Find ~ Play extensions info New Basins ~ Deeper Stratigraphic intervals = Sub-Sait Prospectivity © Constraints — Complexity and Technical Challenges of Sub-Sait imaging Much of the YTF may lie in small fields ~ Some Fiscal Regimes less attractive than USA DWGoM ~ Limited scope for reserves growth through late lie intervention ‘Applied Petroteumn Geoscience haven bp Major Oil Provinces: The Future Possibilities | Russia -Arctic provinces fé. “ a 8 e Bo: USA- OW Gout Subsalt | Mexico - Deepwater 4 [South Atlantic New Basins TAIDDLE EAST |_Sub-Salt Areas _| Play Extensions ‘Appia Pewoleum Geoscience aiebp Tertiary/Cret Oil *Zagros foldbelt & foreland Khuff Gos “Tran, Qatar, Saudi ‘urassic oil + Saudi, UAE ‘Applied Petroleum Geoscionce sontemcecton by Zagros — ‘Old’ technology O 7 rT ‘Applfed Petroloum Geoscience _Zagros New tecnnology Haft Ket Prospect Asmati an Zaps sere ne R790 ep lem, Blow) Middle East cima agbp © Opportunities = Significant 100+bbo Yet to Find ~ Apply existing best in class technology, ~ World Class Giants > 1bbo may be in the YTF * Constraints = Lack of Competitive Fiscal Terms ~ Barriers to Foreign Participation it a Applied Ptrteum Geoscience Leadership In Exploration ‘Appted Pewoleum Geasctonce Nel ineocion b 1.6 Exploration Performance ae P Excellent exploration companies outperform competitors over long periods = Discover big lds =, Suecess rate 50% better than average Finding coats 60% lower than average ~ Wie off ratio is 80% lower then average ~ FoR return from exploration is 100% better than average ~ NPV ereatedis many times greater than average NPV $mem 2000 ‘0 000 00 0 000 ‘Applied Petroleum Geosclence by So what is the source of Performance? eebe Task of leadership is to align to a strategic objective ‘Applied Petroleum Geoscience What Leaders Do Sebo Leaders drive change by = Setting boundaries — Creating clarity through strategy ~ Driving change through organisational development ~ Creating space ‘Applied Petroleum Geoscience Maite: ossten ibp The Need for Change in Exploration Leadership ‘+ For the industry Exploration was Decressinaly Ettective in the 1980's + For BP & Amoco Exploration Success rates were all Decreasing -Zrtton Decoy Vere HIMNg) wacomuncn ~ —Drilling of “High Risk” wells was: lnereesing All Leading to a Crisis in the Early 1990's = and the Need for Radical Change ‘ApniedPerleum Geoscience eek asicton febp Change in the Early 90’s + Strategy ~ Find big fields - efficiently ‘+ Enhance Capability by Emphasis on = Technical Quality, 3D Seismic & Exploration Technology ~ Risk Assessment = Work Flows & Teamwork + Create Space by jon Accountability ~ Creating Much Flatter Exploration Organizations — Consolidating Global Explore ‘Apples Petroleum Geoscience ete asin 80's Exploration Decision Process Matte Layers : ‘Aeaatmtabhy Tar removed torn Teams, thor Data 8 Know How! siebp 90’s Exploration Decision Process ower La Azcountabilty Pushed Closer to Teams, their Data & Know Havel ‘ppled Petoteum Geoscience ee ac New technology drives new behaviour ifbp Pena erage " BP* Success Rate: 1983-2002 agp xonumlc Seer Bate BS lan as Wao Te9) wAverages sLate 80's <20% Success rate Over 50% High Risk wells Late 90's 250%, Success Rate 10% High Risk Wells Driving Skills, Technology & Know-How towards NO DRY HOLES “BP data 83 - 90, BP + Amoco 90- 98, bp 99-02 ytd ‘Applied Petroleum Gooscionce ea eae BP* Discoveries 1983 - 2001 tebe > Anal peveseeee ee Driving Choice towards Large, Growth Oriented Prospects "BP +Amoco 83 - 98, bp 99- OF “Applad Percoum Geoscience Wei intoston by Need for Future Change in Explora' a is * Maintaining Focus on Significant Prospects * Moving Closer to No Dry Holes * Reducing Cycle Time to Production * By ~ Driving Accountability down to Teams = Advanced Training & Competency Development — Complete Integration of Technologies — Using immersive Environments for Common Understandirg ‘Appied Petroleum Geoscience pane Future Exploration Decision Process ibe Minimum Layers ‘Aecountobiity Pushed own to Teams, their Data & Know How! ‘Applied Petroleum Geoscience Module Itodocion Complete Exploration, Development and Production Integration ‘Applied Petoloum Ovoscionce b Highly Immersive,Collaborative Environmentga® 2 ‘Applied Petroleum Geoscience Module tnosucton Team Decision Making in the HIVE. ‘Applied Petroloum Gecscionce Meese inodocton 6 bp Conclusions o © Leaders in Exploration drive Change * Successful Change in the 1990's vv ¢ Future Leadership Challenges Remain — Articulating Clear Strategy — Developing Skills and Competencies — Empowering Teams to Take on Decision Accountability ‘Applied Petroleum Geoscience roe b Nelson Mandela on Leadership be "The most difficult thing in life is to change yourself... but you must do this before you can change others. You must respect the integrity of everyone, including your enemies. ‘The mark of a good leader is. to focus on the positive ae a Applied Petroleum Geoscience ine am scee bp Module 2: Basin Access o * Module content - 2.1 Plate Reconstructions = 2.2 Potential Fields/Remote Sensing — 2.3 Fieldwork ~ 24 Seismic Acquistion ~ 2.5 Well Data/Planning * Key Messages = Gathering the basic data with which to build a solid regional understanding of the province/basin ‘Applied Petron Geoscience yb Content + Use of plate reconstructions in deriving the tectono-stratigraphic history of a basin Messages The Exploration Process + BP Upstream Technology * Technical Networks » Documentation ‘Applied Peroloum Geoscience ‘Modide 2: Basin Accor t bp Plate Tectonics « Understanding how the plate tectonic history of a sedimentary basin allows us to: = Build a tectono-stratigraphic model to assist in understanding the evolution and distribution of source, reservoir and seal = Better evaluate and predict trap styles of and structural complexiy within petroleum accumulation « Regional plate-scale analysis is relevant, irrespective of the apparent complexity within a given basin: = Complex tectonic regimes (SE Asia, Colombia) vs, simpler areas (Gulf of Mexieo, North Atlantic) © The published geological literature can be an important source of useful information “Applied Petroleum Geoscience hes ooxn Sees bp North Sea plate reconstructions o * The tectono-stratigraphic development of the North Sea can be elegantly explained in terms of the plate tectonic evolution of the North Atlantic + Context of Upper Jurassic Kimmeridge Clay source rock + Key Brent and Forties reservoir systems related to regional uplift filling inherited bathymetry (accommodation space) © Controls on Jurassic rifting Tothys ‘Appled Petroleum Geosclonce Early Jurassic cd ~. abe ‘Applied Petroleum Geoscience edie: casa tees Middle Jurassic ‘Applied Petroleum Geoscience Modate 2: Bai ecnss Middle Jurassic Brent bp ‘Applied Petroeum Geoscionce bp Middle Jurassic Brent Delta Reservoir’ ‘Appfed Petroleum Geoscience Meats 2: sin ecese Late Jurassic I Early Cretaceous Applied Petroloun Geoscionce Early Cretaceous Ill Uebp -Appiod Petroleum Geoscience iebp Late Cretaceous | ‘Applied Petroleum Geoscience E arly Tertiary | Early Tertiary Ill ‘Anplied Petroleum Geosclence Early Tertiary IV depleg erat 0 hop Early Tertiary V Mid Tertiary SEE Applied Petrotur Geoscfonce Late Tertiary | zy, Applied Petroleum Geoscience Li ate Tertiary Il “Applied Pewrateum Geoscience entero sce a Plate Tectonic Movie: Indian Ocean o * Gondwanaland break-up movie ‘Applied Ptroloum Geesclence ete eat tos febp Summary et * Plate tectonic reconstructions give us a good first pass insight into the tectono-stratigraphic development of a basin/region * Can give an overview of the regional development of reservoir, source and seal * Can predict age and intensity of major trap forming events 16 “odie basa Seca 2.2 Potential Fields/Remote Sensing. bp Content + Use of potential field (GoM example) and remote sensing data in BP (Wessex Basin, UK example) Messages * Gravity applications + Magnetics applications + Landsat exercise Potential fields Types of data we use in deep-water GoM + Gravity + Magnetics + Magnetotellurics (MT) - under research and development In this short tutorial we will focus on types of data BP- Houston has and how we apply them. For each of these main data types we will discuss + nomenclature + rock properties exploited + data base + applications + pitfalls + references \“ndstearbssmAscose Potential fields: Gravity in GoM Gravity: Rock property exploited = density + The crust (which is low-density relative to the mantle) thins toward the center of the GoM => steep regional gradient of increasing gravity to south (in Bouguer data) + Water deepens to south => steep regional gradient of decreasing gravity to south (in Free-air data) + Shallow salt may be denser than surrounding clastics => gravity high + Beep satis less dense than surrounding claties > gravity low + Cross-over density approx. 6-7 kft below mud line + Large-scale sedimentary structures (synclines, growth fauits, etc.) also cause gravity anomalies when density structure conforms to geology \“iocoe Baan access a ee kbp Potential fields: Gravity Applications in GoM + Mapping Moho through constrained inversion, forward ‘modeling; Mapping regional lineaments, trends + Modeling of salt bodies (shallow and deep) to confirm or refute seismic interpretations; we have carried this out in 2-D, but 3-D is also possible + Modeling to confirm or modify velocity models (possible application not carried out at BP) [aad Peto Geoscience tacit at b Potential fields: Gravity Pitfalls | a P + Shallow salt bodies in the GoM (deep-water) generally do not cause appreciable gravity anomalies. + Interpreting gravity anomaly maps without any modeling to establish ground truth (1) will not provide you with all that can be obtained from the data and (2) can be dangerously misleading. + Gravity data acquired on new 3-D surveys may not necessarily be any more useful than the regional data we currently own. Potential fields: Geologic Models | Or |Miodte ar Banmsccere Potential fields: Geologic Models an ' eebp Potential fields: Magnetics eee Rock properties exploited = susceptibility and remanant magnetization + Crystalline crust contains sialic, mafic and ultramafic rocks with varying susceptibility; these cause linear to sub-linear magnetic anomalies and linear offsets in anomalies on a tectonic scale. + Oceanic crust in GoM is not characterized by convincing ‘magnetic lineations (“stripes”). Magnetization contrasts within crystalline crust generally cause anomalies that are an order of magnitude larger than those caused by structure on crystalline basement. Gol clastics contain detrital magnetite and are magnetic; Salt bodies generally associated with magnetic tows: Sedimentary structures also have magnetic anomalies. (gnoous intrusions (of which there are a few in deep-water} characterized by large-amplitude circular anomalies (highs). [ret Perieun Gores | foe pst fesse 2Sbp Potential fields: Magnetics Applications, GoM" + Mapping linear trends, offsets, basement depths and lithology contrasts + Mapping basement structures (?) + Identifying igneous intrusions + Modeling shallow salt bodies; magnetic data alone can be used to map the outline and relative thicknesses of shallow salt bodies! [sacle es | ob Potential fields: Magnetic Modeling ‘Magnetic modeling of 1CU bumps in Walker Ridge ‘Moding demonstrates that bums are most likely not veleancs. Landsat Image Southern England clean oe j North-South Seismic Section Across the Kimmeridge Field stare Op + Potential field data is a relatively cheap and easily accessible method of deriving ~ Depth to basement ~ Regional structural trends ~ Presence of large igneous extrusivelintrusive bodies + Landsat data is useful in first pass geological mapping of a frontier province — Particularly where local geological maps are poor or non- existent = Inareas of structural complexity e.g. foldbelts. opted Perce Geozeence 2.3 Fieldwork ao Content '* Application of field work in BP Messages + Types of data acquired + Analogs + Recent BP applications + Examples from East Midiands, UK & Gulf of Corinth, Greece Field Work: Types of Data Acquired is ay + Lithologic Information ~ Reservoirs = Source racks ~ Regional seals, Structural Styles Stratigraphic relationships Stratal Geometries Regional evolution + Local contacts & knowledge ISSUES: Field safety! [Arad Pewoieum Geoscience Field Work: Applications ibe * To look at Analogs ~ Reservoir, Stucture + To study the outcrop adjacent to target stratigraphy ~ Source (rocks & seeps), seel, reservoir, structure + To understand regional evolution that will lead to delineating existing and find new play fairways * To get multi-disciplinary teams focused around “analogs” for their subsurface issues (“see and touch" the rocks) [arated Povoioum Geoscience Field Work: Analogs Reservoir analogs: Tabernas Basin, Spain Book Cliffs, Utah Jackfork formation, Arkansas Carboniferous, N. England County Clare, Ireland Karoo Basin, 8. Africa Structural analog: ‘+ Western Alps, * Gulf of Corinth, Greece + East Greenland ArptedPecwoum Gwoscence Field Work: Reservoir Analogs abe ‘Submarine sfope channe! pg Gulf of Corinth, Greece Rotated Slump Blocks County Clare, Ire. oped Pocioam Goossence Field Work: Recent BP Applications pp + Venezuela License Round and Exploration Drilling Support = Structure and stratigraphy for Easter and Western Venezuela Iran ~ Mapping of reservolr, seals and source rocks = Surface seep calibration ~ Structural mapping © Azerbaijan ~ Understanding regional setting and source rock definition = Reservoir GDE and compartmentalsation + Gulf of Corinth (Greece), Gulf of Suez (Egypt) = Understanding syn-ft reservoir distribution Arpad Peau Geoscience Field Work: Technique bp ‘+ Try to gain access to good-quality local knowledge. “Local” geologists are often not aware of the ways oil companies work; however, they can provide: = enormous amounts of data —— ey — additional sources of data ~ the history of geological understanding of an area ~ SAFETY! + Know the ages of the rocks (& the errors in the ages), the outcrop localities, literature and plan contingencies for weather, poor exposure, hostie conditions, etc, ‘+ BP has staff with sequence stratigraphic and structural skils for field support. Combined with local staf, they can usually appraise a trend, country or area faster and more accurately than a team of people can do it in the office aepied Peacleum Gaoaclence Field Work: East Midlands, UK eho * 70 years of exploration into the Upper Carboniferous * Play mature Was there a new play in the underlying Lower Carboniferous that could rekindle exploration success Lower Carboniferous exposed in Derbyshire some 100kms west of the East Midlands oilfields Fieldwork undertaken to calibrate East Midlands seismic data AraledParcour Geoscience East Midlands: Structural elements bo = : , east MIOLANDS DINANTIAN srAUCTURAL p eeteuents [Avot Peaioum Geoscience [Aenea Poole Geoscience Derbyshire: Seismicloutcrop comparison ’¢ P [apps Poraieum Geoscience Mam Tor: Pro-delta turbidites & source rocks wf OP pied Pevoicum Geoscience b Syn-rift calciturbidites & slumps be . ae Sa gn en crscce Detail of regional seismic line [Aven Potroicum Goscience Castleton Carbonate Margin Aested Persia Gaoacence Modi 2: tain cere b Castleton: detail of rimmed shelf progradational tab : [appt Pevoioum Geoscience East Midlands: Outcome *Study resulted in a new play test to target carbonate margin play “Well encountered oil shows in vugay carbonates but reservoir quality generally poor +Small discovery also made at Rempstone in turbidite facies -Deepened Ratolife on Soar well into the inverted syn rift sequence ‘encountered basinal shales and tight calciturbidites as predicted Decision taken to withdraw from exploration and development in northern England on the basis of diminishing returns [Arp Perotoum Goorclonco "Field Work: Gulf of Corinth tpbp « Neo-tectonic analog for syn-rift depositional systems in the North Sea Jurassic ~ Seismic scale exposures — Depositionat systems in 3D ~ Footwall composition impact on hangingwall reservoir potential ‘* Understanding of tectonic influences on high resolution sequence stratigraphy — Comparison of footwallhhangingwall stratigraphies ~ Rates of sea level change vs tectonic uplitUsubsidence [aetna Peter Geoscience Field Work: Gulf of Corinth setting o bp 1 Apied Pevclum Geoscience ‘by View from Carbonate footwall block into fanaa : Apped Peon Geoscience Modal: Basi cose bp Wave cut notch above current sea level in hangingwall setting Wt [Apotied Pevotoum Geoscience \icised Valley systems in uplifted Quaternary deposits on {bp footwall block [Apptea Powoieum Geoscience eee ’ Kerinitis Fan Delta gisbp [Appia Potvcioum Geoscience Gulf of Corinth: Outcome apo + Constructed a set of depositional models which have been applied to ‘exploration in the North Sea and other extensional basins ‘+ Contribution to the global understanding of sequence development fectonicaly, eee active basins, + Work invited for presentation as an AAPG field trip ed Pau Geoscience Summary aul Gh «Despite much of our activity having moved offshore in the past 20 years, field work is stil an essential part of the subsurface geoscientists toolkit = Key applications are: ~ Analogs for reservoir and structure ~ Outerops adjacent to target stratigraphy Source, Reservoir & Seal + Fieldwork is also a useful medium for establishing reliable local contacts and knowledge + Key issue = SAFETY!!! 13 ‘Applied Petroleum Geoscience 2.4 Seismic Acqui Content ‘+ Introduction to seismic acquisition and processing in BP with examples from BP's global upstream activity set Messages + Seismic acquisition (land & marine) + Uses and abuses of seismic data * Seismic processing + Enhanced seismic methods = 088, 4C, 40 ‘Applied Petrteum Geoscience Poesia by What is Seismic Data? be * Assource is triggered to send acoustic energy into the ground + The resulting “echoes” from rock layers are detected by seismic sensors. These sensors output electrical signals proportional to the intensity of the echoes. ‘These signals are recorded magnetic media and processed, + The resulting “data”, when processed, can structure of strata ‘Applica Petroleum Geoscience Mode tbsnnaecae bp How Seismic is Used G + Exploration: Basin to Prospect scale descriptions of geology for first well ‘+ Development: Appraising discoveries and defining subsurface to optimise well requirements + Production: Time-Lapse monitoring of hydrocarbon movement & depletion in the reservoir + Includes>>>> structural interpretation, stratal relationships and seismic facies mapping, reservoir and fluid prediction, volumetrics... ‘Applied Perooum Geoscience ao by How Seismic can be Mis-used Rapp Exploration seismic used for Development Inadequate processing sequence for purpose Inappropriate technology applied Over-Interpreting past the limits of data Believing everything seen on seismic is geological picture Trying to fit seismic to preconceived geologic model ‘Applied Petroleum Geoscience ‘BD Seismic Data Ob Used in: Frontier Exploration where we can’t acquire 3D due to time and cost. Also ahead of 3D to determine optimum acquisition and processing parameters Used for: Structural Mapping primarily for Lead identification to impact access decisions and future seismic programs ‘Applied Petroleum Geoscience 3D Seismic Data _ Used in: * All development projects, + Ahead of first exploration well — need to ensure can acquire at right time and cost. Used for: « Structural Mapping + Stratigraphic Mapping * Attribute Analysis ‘Applied Petroleum Geoscience Impact of seismic in BP. IMPACT OF SEISMIC in BP ‘A Quick Tour’ ‘Applied Perrot GoM Sub-salt Imaging Conventional Depth Imaging ‘Advanced Depth Imaging ese S~« ARGoPEOER TS bp Increased Resolution through Seismic Acquisition _Increased Reso Fppta rovism ores BespiiataV Ett of Moxico gebp Increased Resolution through Seismic Processing jh Seismic Processing ___ Holstein Reprocessing Improvements ~ Time Migration western Spee 30. reprocessed Spee 3: be Ainversion s _Appled Peroloum Geoscience Caspian — Depth Imaging Fb Depth Migration Time Migration ‘Applied Petroleum Geoscience Festi b Colombia Overthrust Imaging bp ‘Improved Imaging of Frontal Limb of Overburden ~ Reduce Drilling Risk 2D Re-Processing Analysis ahead of 2001 Acquisition of 3D survey ‘Ali Ptroteum Gooscionca Iastyo2 Boa acess bp Zagros 2Dimaging (Ole technology Prospect _ Asmati ‘New’ technology | an Zags wane ine 790 (cep netomat ‘Applies Pevoeum Geoscience Pip Southern Cone San Perdito 3D ‘* Movie from Shiraz fintneice rors hop Seismic Reprocessing Analysis Data Reprocessing SEEDS] > 1975 Vintage Osta 3 TLC processing ~ Statics & Volctos R79 oe ‘plied Petrotoum Geoscience Seis mic Acquisition bp Critical Elements °HSE Use of Contractors *Quality Assurance *Cost Turnaround ‘Applied Petroteum Geoscience webs asn decse bp Principles of Seismic Acquisition o *+ Record seismic energy reflected from subsurface ‘+ Gather many observations from each reflection point (The Common Depth Point (COP; principle) ‘+ Record 30 Wavefleld at surface ‘+ Require appropriate fayout of shots and receivers to reconstruct seismic ‘wavefild reflected from subsurface + Seismic data comprises Signal and Noise ‘Applied Petroleum Geoscience Mote 2: Basin Access iebp Land Surveys - Arctic ‘+ In land-based seismic surveys, geophones (seismic sensors) are laid out along the survey line, ‘An energy source of an explosive (eg. dynamite) is placed in a shot hole a few feet below the surface or a Vibroseis {mechanical vibrator) source is used ‘The vibrator is a metal plate which is mounted on a truck or buggy, and vibrated at precise frequencies. ‘Applod Petroleum Geoscience Modute 2 Basin azeass| 6 3 bp Land Surveys — Des Dynamite in shot hole 09. Algeria, Vibrosels used ‘Applied Petroleum Geoscience ete esa acess fsbp Land Surveys - Mountains slagifu and Hides mountain PNG All wells drilled from top of mountains. Due to formation pressures need hydrostatic head. Image in valleys drill in mountains. *Said it couldn't be done *Breakthrough technology was cementing the geophones directly into the limestone karst rather than ‘resting’ on the intervening organie mulch. 1 apse Peto Gracnce Bunter Marine Surveys hop * Offshore, seismic sensors (hydrophones) are towed within long streamers by a * Aset of air guns serves as GoM, Angola, North Sea (UK and the energy source. Norway), Egypt, Trinidad sop Perc Goscnce iene ar eee trop Transition Zone/Shallow Water Seismic * Both land and marine recording techniques are used with vibrators or explosives as an energy source. * Wireless radio systems are used to record the data. ‘Some Venezuela, some Alaska, Tanggu 4 ‘Apped Petroloum Geoscience ‘Ocean Bottom Cables Gp « The recording boat remains stationary and is attached to. one or more digital telemetry cables resting on the seabed. * 4-C sensor receivers are connected to cables at regular intervals, * Aboat towing air guns serves as the source. eg. Schehallion ‘Applod Petroleum Geoscience tes ean zee bp Seismic Acquisition - Environments G * Different Needs, Costs, Technology for: + Marine - Exploration: Multi-Source, Multi-Cable, Fast Turnaround Development: High Resolution & Definition Production: Repeatability for 4D «Land - Desert: Surface Source, Fast Turnaround Arctic: Surface Source, Limited acquisition season Mountains: Dynamite, Access Highest Standard HSE in Operations FUNDAMENTAL ‘Applea Petroleum Geoscience Iodea 2: Bein dccuse ts bp Seis: Acquisition Costs * Marine 2D: $600-1000 / km 3D: §5-8k sq.km (Exploration) $742k sq.km (Development) * Land 2D: $3-6k/km (Desert) $20-40k | km (Mountains) 3D: $10-45k sq.km (Desert) $50-100k / sq.km (Mountains) * Ocean Bottom Seismic 3D: $50-100k / sq.km ‘Applied Petru Geoscience in Costs - Influences « Influences / Variables + Economies of scale (survey size) + Timing, Weather, * Crew Availability, Mobilisation * Regional / Exploration/ Development Need iebp 13 ‘Applied Petroteum Geoscience Modu Besa Access bp Marine Acquisition: Brazil BFZ-2 3D Survey’ Acquisition challenges Deepwater Block £00 ke fom Porto Bla Curent in excess oF knots Nennegotabe ting constants ang owl eustined by NE tates eto vessels 14 eeomers ft kms of cave seamer operations Processing challenges 46 Terabyts of cq dia be processed Four 30 daa vores generale on tar the vssos Complex gecogy wan smat Al coats and porsitont tiles “HSE 250.000 man nour wit no DAFWCS, no ps Timing Prosucton an rps at sakm per ay | Costs Aequkes & processed torass tan $400 per eq. Key Achievements Latest eve BP operated survey at 6008 seks oghest data conary par sq. of any 8 euvey ‘Applled Petrotoum Geoscience Cand Acquisition: Algeria 3D survey #° Challenges “Nallonal Contactor “Hostile Environment ‘Varied Terain “Tight Delvery Schedule Limited Lead Time Achioverents ‘Excellent HSE Record Ne DAFWC. (0.5 Mion Man Hours Worked, 400,000 Krm Driven ‘Largest BP Land 3D Survoy Acquired 1083 5q Ken, 74,895 source Points Delivered On Schedule {6.44 Sq Km per Day (21% improvement) ‘wnnin Budget 138,500 per Sq Km (15% under budget) ‘Applied Petroleum Geoscience ‘Seismic Processing tb Critical Elements *Velocity Analysis *Resolution Enhancement *Noise Attenuation *Demultiple sImaging Applica Petroleum Geoscience sees es access by Factors Limiting Good Seismic Data o : + Weak signal strength due to attenuation through rocks + Refracted Signal, eg. through salt, + Scattered Signal, eg. By near surface heterogeneities + Data dominated by noise, eg. strong multiples * Near Surface effects 16 Applied Poroteum Geoscience arid ne ing Principles of Seismic Processing Objective - Optimally Image and position seismic data * Critical Requirements - High fold data, ie, each Common Depth Point (CDP) sampled many times - Ability to stack multi-sampled Common Depth Point Data using correct velocities ~ Attenuate noise, eg. Multiple attenuation - Move CDP data to correct location using seismic migration ‘Applied Petroleum Geoscience ie fybp The CDP Concept tt ‘Applied Petroleum Geoscience bp Primary and Multiple Reflections Want to: Enhance Primaries a Reduce Multiples Creraasd ery Stn teeter Ha ‘ones Peoteum Geoscience Modete 2 Basin Access 7 & bp Seismic Processing Issues + Can take fonger than acquisition for marine surveys (fall processing, elso do onboard processing for early product) + Shorter than acquisition for land surveys + Costs low compared to acat (typically 10-20% of total costs) + Controls: Computer Capacity Parameter selection Appropriate Technology Quality Control & Assurance 7 ‘Applied Petroleum Geoscience Moc 2: Basin Access ea bp Understanding Seismic Parameters * Acquisition Parameters - Shotpoint and receiver interval,trace length, sample rate etc. + Processing Parameters - amplitude recovery, wavelet processing (filtering, S/N enhancement) migration technique * Seismic Velocity Analysis « Display Parameters ‘Apples Petroleum Geoscience Moco 2: sis cust br Example of Acquisition Parameters Eee 18 ‘Applied Pewoleum Geoscience et: oc tases by Example of Processing Parameters o c ‘Applies Pevoteum Geoscience sons £'ebp What to ask when you don't have a parameter listing PROBLEM! ‘+ With the widespread use of workstations, interpreters often have no access to the side fabel or the processing history, ‘+ ENSURE you check what was done to the data with your local Seismic Specialist * ALSO before getting into interpreting on a workstation, review the seismic in a gross sense on a paper section + LOOK for possible signal problems, eg. check what the waterbottom time is to help identify multiples 19 Applied Petroleum Geoscience ste evum sce bp A Processor’s Nightmare o * Over-interpreting the data in poor S/N + Using data for the wrong purpose, eg. poor amplitude control on data being used for attribute work + Not consulting processing specialists to understand data characteristics and limi tions + A ‘Free-wheeling’ geologist using seismic data in isolation! ‘Apple Petroleum Goosclonce iene anon sce bp Velocity Analysis _ o * Velocity is estimated from Seismic Data Gathers * During Processing, velocities are used to ~ Stack Seismic Sections Collapse Diffractions through Migration « Interval velocities are required for: ~ Interpretation and Processing for model building ~Time to depth conversions = Lithology and Fluid Estimation ‘Applied Petroleum Geoscience Example Velocity Analysis ee May vot Ana mc | a High Semblance when reflection flat THEREFORE Can Stack Data INCREASES Signal/Noise ‘Applied Petroleum Geoscience toto: sin access by CDP Gathers with Different Velocities applied PETE OTE TT EEE AE fa) 24 ‘Appiod Petroleum Gecscionce Seismic Migration _ ‘AppledPetrooum Geoscience Seismic Signal & Noise ep SetznieRefections Prperate) 2 spn Perseom Ooscrce merece ance ooue Lbbp Seismic Signal & Noise ‘Apailed Pevoleum Geoscience hop Stacking data from Common Depth Points (CDPs) Primary Reltecdone Fan Matte Reflections (ot Fa 23 ‘Applied Petroleum Geoscience ttre ov ce by Why and When to “Pre-stack”? Op REMEMBER Processing Objective! + Need to be able to stack Common Depth Point Data + Often can't stack when complex overburden distorts raypaths + Need to do something >>>Go to Pre-stack imaging + Understand when and by how much stack breaks down eg. under salt severely affect raypaths so not a CDP, under channels, may be able to solve without pre-stack ‘Appled Parolsum Geoscience seem : Why 3D Pre-stack? Grp Pre-Stack Depth imaging costs significanlly more than 10-20% acquisition BUT itmay be needed! ‘Applied Petroleum Geoscience Fovinetetirio fkbp Depth & Time Processing, GoM Subsalt, 3D data Time Processing (Spec) _Pre-Stack Depth Migration + Poor Image of Base Salt = Improved Base Salt Image “Data Wipe out Beneath Salt + ns Imaged Beneath Salt Applied Petroleum Geosclence edison hse bp Depth & Time Processing, GoM Subsalt, 3D data Thunder Horse Depth Migrated Sempra ‘Applied Petrofeum Geosclence [Modle 2: Basin Access % bp Reprocessing: When and why? © Initial processing may be boat processed fast-track due to cost and time, eg. spec * After identifying plays and prospects may need to reprocess to get more from the data « New technology emerges and can be applied to older acquisition to improve data quality * Poor initial processing due to poor Quality Control « Initial processing had different objectives, eg. structural vs stratigraphic Applied Poiroteur Gsoscionce Enhanced Seismic Methods Cb ‘Seismic continually developing as need more from the data ‘* 4 (Time-Lapse) - Enables fluid movement to be monitored ‘+ OBS (Ocean Bottom) - Enables wide range of illumination at target & continuous reservoir monitoring = 4C Converted waves (P-S) illuminates below areas where P- Waves attenuated, eg. Beneath gas clouds «Long Offsets - Provides better image of deeper targets and Improved prediction of lithology and fluids. Extends AVO wincow ‘Applied Petroleum Geoscience AC Seismic (Converted Wave) ‘+ 4C; hydrophone + 3 component geophones conversion to S-waves. A principal component of this made sensors on the seafloor, Used for: = Structural imaging beneath gas-invaded zones Future: = Selsmic reservoir characterization & ‘monitoring = Improved lithology and pore pressure prediction ‘+ Multicomponent arrays are positioned on the seabed. P-wave energy emitted from standard air gun arrays strikes boundaries of contrasting elastic properties at angles other than normal, there is some mode- conversion is reflected S-wave energy (usually described as PS energy) which, together with the reflected P-waves, is recorded by ae bp ‘Applied Petroleum Geosclonce How do we improve resolution and surveillance? Improving Resolution: + Focus more on the 20-100 ms reservoir interval? + Better seismic sources? + Better noise attenuation mechanisms? + Better analysis tools + Vertical cables? + Impact the free-surface ghost attenuation mechanisms? + Ocean bottom seismic? Improving Surveillance: Time Lapse seismic? “Downhole sensors? *Borehole geophysics? “Cross-well seismic? bp 27 ‘pplod Petroleum Geoscience Ocean Bottom Seis: Improved resolution: (OBs) ‘imaging through gas clouds ‘imaging where Pavaves fail ‘improving bandwcth, both low and high end roving multiple attenuation *Sampling wi ull offset and azimuth “Distinguishing thology, fuld, and pressure effects ‘Mapping saturation away for “Determining tess directions and magnitudes tebe ‘Applied Pewroteum Geosclence Seismic Progress at Valhall 2 ‘Appied Petroleum Geoscience BP Seismic Strategy op * All seismic acquisition is carried out by contractors * Nearly all processing done by major contractors: Western-Geco, PGS, Veritas-DGC, CGG + Small amount of processing done in-house to ~ Evaluate new data and assist parameter selection ~ Apply high value-add technology & R&D in Seismic Imaging, 4C & 4D Seismic ‘Applied Petroeum Geoscience ‘BP ‘Seismic Strategy oO bp « Methods of selecting contractor varies depending on location — Competitive Tendering eg. N.Sea — Spec for multi-clients eg. GOM — Restricted suppliers eg. Frontier areas where limited choice due to access — Single Source for technical reasons 29 ‘Apeiea Pevoleum Geoscience Seismic - Want to know More 2??? Join the Seismic Network *Contact Pat Connolly in Sunbury *Go to the Network Websi http-/Jut. boweb.bp.com/seismicnetwork/ ebp 36 ‘Applied Petroleum Geoscience £'pbp Moshe 2: Basin Acooes 5 Wells, Well Data and Well Planning We will cover: + basic principles of drilling wells + subsurface pressure and well design + drilling rigs with technical capabilities and costs = well data types + well planning and operations ind Pela Conscience ea Bas accee ae bp Drilling installations on S86 per ay conaaivp 020009 = Applied Petcteum Geoscience f"kbp Module 2 Basin Access ‘Applied Petvlaum Geosctence b Moxie 2: Basin Access Pp Drilling costs = Dring ime ~ Shallow gas onshore - several days , '$1-200,000 ~ Low pressure shallow water well 10-45, days <$6milion ~ Deep wate or daep high pressure 60-80 days - $20-20milion ++ + Typical data acquisition costs ~ etng -one day percre st 000m SEaaE;ERETIETEE ~ looping 18 days pre scion pus EeGaEEEEESUEEEEG toot rental and survey costs (c. 30% ofthe time casts) ‘Applied Petroleum Geascience ‘Mowe 2 Bash Access #'bp Drilling costs + Key cost drivers today are rig rate and well time ‘+ Deepwater rigs were >$300,000/day in 1997 (supply/demand pushed day rates up), but market very cyclical, so day rates wil fall as activity drops ‘+ Shallow water semi-sub c. $170,000/day in 1997 - more installations in service Land rigs - e.g Onshore North America $50-70,000/day ‘+ Workover rigs (land) - $17,000/day — used for wireline/coll tubing ops oped Poel Goose eee aman eee “bp Drilling system ‘+ Closed loop (mud shown in dashed tines) ‘+ Mud has several functions Sr pie = well contal worn Ph = leaning the hole = euting agent ~ hole stabity = formation evaluation “+ Many typos of mud = water ool based ~ choice dependent on condiions. (emperature, environment), regulations, Khology ot. ‘Appts Petroleum Geosionse Pfbp "2 Basin Access The Well Site Logging shack ee melee ate bp Wells - example well designs Applet Peroleum Gececonce ‘ate Bos aso ee bp Well Design Why do we case the hole, and why pe Whegeacee rebucon —— = we Need to case off (isolate) hole that has eset Meee + Prevent hole collapse — instability Usually increases with open hole time after diling + Prevent fracture fallure at shallower depts as a resul of high weight mud Ieeemte, on needed to hold back deeper, higher | pressured formations + To isolate overpressured zones which could lead to well control ex Jovoamnsne son problems ta maine on Adaitional factor is weight of casing string the rig ean handle — Module 2 Basin Acceso Subsurface fluids and pressures two havo a colurnn of water, the pressure at a given ppoint in the colum isa funetion ofthe height of the Column, and the density of the water ‘Applied Petroleum Geascience £'¥bp Typical gradients Wator— 0.435 peut Oil 0.3 psi Gas -0.05.0.18 peut Hight ‘Overpressure - Pore pressure In excess of that that would oseur in a continuous ‘column of water equal in length to that epth, Possible causes: + Igolation~if pore water cannot escape ‘uring butlal compaction * Uplift and Isolation ~ prosorving highor Pressure > pressures ata shallower depth * Roliof effects ~ high pressure transmitted "updip in a dipping permeable bed Bue to a hydrocarbon column ‘Applied Petioleun Geoscience br ‘Modo 2:Bosn Access Pp Safety: No damage to the environment, ne harm to people Not so good Goins & Shettita, 1983) Applied Peticteurn Geoscience g'ebp Nowa 2 Basin Aone Why the interest in pressure + Drill safely Identify overpressured zones so that effective risk management (plans and contingencies) can be put into place + Drill cheaply —Reduce time lost to pressure related problems. + Drill in the right places —Use pressure prediction as part of a total basin analysis (get the good stuff, avoid poor $ spent) Counasy ote MeLean ‘pate Peoleum Goosence bp Wells- pressure and well design * In a hydrostatic system, pore fluid pressure increases with depth due to ‘head of water’ + As a well is drilled pore fluid pressure is held back by weighted drilling fluid (drilling mud) * As a well is deepened, pore pressure at the deepest point, and the drilling mud density needed to contro it, will eventually exceed the fracture strength of the rocks shallower in the well and the formation may fail. This is an uncontrolled situation, and casing will be set before it can occur Module 2 Basin Access Overpressure and well design * Overpressure ‘Applied Petroleum Geasclence fsb ~ If pore fluid is confined for some reason during burial(subsurface pressure equalisation cannot occur), pressure will exceed hydrostatic (‘head of water’) « Well costs (and times) are usually higher in HP settings ~ Where overpressure occurs, wells typically need more casing strings than in hydrostatic settings, Appied Potctoum Geoscience iebp Module 2 Basin Access Pressure Generation Mechanisms Disses fom Seite oe pales Buoyancy between 167 0 220 en Compaction Disequilibrium — High deposition rates Shale diagenisis fandom Pate Orton Thermally generated Lateral transfer illite Layered Plate Orientation Applied Petileun Geoscience iebp Module 2 Basin Accose Buoyancy Overpressure eae itehen’ Couey of uite Metean Maaiie2 Basin teres Applied Petroleum Geoscience as bp Compaction Disequilibrium ‘Courtesy ofa Mean Loading from burial bleeding off pore pressure Tf pore fluid unable to escape then excess pore pressure is generated, During deposition pore fluid must escape vertically through mudstones. + Exeess pressure generated when deposition loading is mare rapid then mudstone permeability ill alow pore fuids to escape. sername roe Thermally Generated ‘Thermal expansion coefficient of brine = 2 x 10° /°C ‘Thermal expansion coefficient of rock pore space = 1x 10 /*C As rock is buried and temperatures increase then pore fluid expands to.a greater volume than the pore space it occupies. If rate temperature increase is slow then pore fluid can move out of pores in response to expansion. If rate of temperature increase is rapid then pore fluid unable to escape. ‘quick enough and pressure is generated. coutesy of ike HeLean Nese 280s Acsose Measuring Pressure Interpretation of pressure measurements for fluid contacts, fluid type and compartmentalization ‘Applied Petiloum Geoscience f'sbp + Drill Stem Test (DST) tools — precise but not accurate, usually not ‘accurate or numerous enough to predict contacts. Should always use a PTA corrected value; P*, Pbar, Pavg + Wireline formation test tools (RFT, MDT, etc.) ‘Accurate and precise in good rocks. Poor in tight rocks such as well cemented sandstones and limestones. Strain gauges — less precise, reads in psig ‘Quartz gauges ~ best, reads in psia PSIG ~ ‘gauge’ set to zero at surface PSIA — ‘absolute’ calibrated to atmospheric, 14.7 psi + Greatest value is being able to take a number of measurements and oil samples though “contaminated”, eaten eho Example pressure vs depth plot + pressure rises through shale LSS Sea se See ag section 1600-1800m, buts not en due to lack of permeabiliy o Casing canto fretted eld eculenie te Stable shatow shale Section ‘+ pressure ‘seen’ when sand at ve 1800m is reached - well flows (rh pit gainfkick) ‘+ mudweight raised above pore xe to control wel, but note i sa] \ pressure to control well, bt note i ANY is now above 13 3/8 casing shoe ~ leakotf pressure, so 85/8casing = SNe must be putin the hole WYO 1c ‘Applied Petroleum Geoscience Wotule 2 Basin Access Extended Reach Wells + Well deviated to allow optimal positioning inthe reservoir, or to avoid hazards tos for reserves aceon = with a high ange through the esevetr tor extea wall prousthity ‘+ Woll placement based on pre: drill seizmic and offset well in“real time’ as cuttings and MWD data eames in ‘+ ERD technology is regularly Improving - Wytch Farm at 1okm, Gyda at 6km stepout led Petleum Geoscience eit aan esse iebp Extended Reach drilling (ERD. 4 ‘seeermorens fhbp Well data — range of types and applications Data Applications Characterisation of: Data Types in place volumetries, ity + Trap ~ lithology, positioning ete + Source Rock + Overburden Drilling data “ROP, Gas, Cuttings, Survey ete Sidewall samples + Whole core + LWD data Wireline log data + Pressure measurements Fluid samples Cased hole log data + Flow data eceeera tebp Coring Safety Joint ) ‘: sine Sve Assonby lone Tube ter Sar Corehead design Gece important svaaee Catener Assembly Corehead Courtesy ef Kevan Sincock Applied Petcloum Geoscience fgbp Movie 2 Basin Access Coring — Breaking down the Barrel Courtesy of Kevan Sincock + traditional methods are available if preferred... ‘Applied Petioleum Geascionce ‘Mothie 2: Basin Ace Wireline Logs Pechelbron Field France 1929 Courtesy of ‘Schlumberger ‘The First Electric Log ‘Applied Petroleum Geoscience Moxie? Bosin Access Basle onshore igen ffehore modineatens forheave’ compensation ‘Applied Petroleum Geoscience ‘Moule 2 Basin Access MWD string examples Reb ‘Sotrnberger, 1999 ee hbo Static Data - Open Hole logs '* Wireline conveyed (or tubing conveyed) — wide range of measurements, with good depth referencing ~ expensive in rig time and tool rental compared with MWD « Measurement while drilling = early measurements, just behind the dri bit - can be ‘real time’, so can be used for operational decision making. ~ full range of measurements {including directional) but can be expensive for more than basic GR-RES-Directional = depth contro! can be problematic, and data quality is dependent on drilling rate = early data (low invasion) so can be very high quality Applied Petroleum Geascience bp Well log measurements * Well logging tools measure ~ natural gamma radiation (GR) ~ formation resistvity/conductivity (Induction, Laterolog) ~ atomic density (RHOB) ~ number of hydrogen nuclei per unit volume (NPE!) ~ voltage potential differences at permeability boundaries (SP) ~ borehole size (CALI) © But what we really want to know are: ~ Lithology ~ Porosity, permeability ~ Fluid saturations -pplaa Prcleun Geosaence tie 2 Basin Access #3 bp Well Plannin; Prepon toon a Wet Design & daa HO ‘exploration Wel takes 34 months de ‘Spud Wot s ae eaten, ptaning an Aplad Ptctum Geasoence ‘ao bona ncese bp Well Operations Well Team once Wate Prone.VT, Esa fax ate Diiting Superintendent Realtime montrag of di eee Secioay Siw mo tools Dating Supe tear Setophyei ate Seog Pete Enginwer Mscloggers Dring Engineer Exec Ean SS _ ate oe el Enotes Destons ‘subsurface’ decislons| = oo 16 poe Porleun Gessclrce ffbp Well Evaluation ‘Ac tne weitate ‘Stowe ca “tala “etings, SHO, core * “7Stat and PorPorm st amar, Petropiystes, Geophys. ‘Denne he acearuttic intogenton 3 Decktges fe nD, serves Segments Er of Wet ROME ae y Post Well Hae ke ater eat Applied Petroleum Geoscience b Module 2: Basin Access Pp Processes Take lessons from plant building dustry and apply to drilling wells ‘Design and plan (Front end Load) + stat with clear objective definition * Single, mui-ccpine team + design by the paople wino do the job + Gear tesponsiiiviaccountabaty + everything open to challenge + sonar all known outeames ord plan Contingencies Tecnica rts * Blan down fo 1 hour det dell the wellon paper Execute + project scheduler rote is key + most decision making wil fotow plan and ‘an be mace at woke +"planned refers to office + ho ‘planing an the for frefighing + ifthe planning is good, the well wil fellow the plan -fogstics movements wil be beter Seftned ane lower cost Downsides? Result - quicker, lower cost welts, + planning needs time and space better definition and achievement of well objectives 17 etate 2: Bas Access Agplied Petroleum Geascience #ebp Module summat ‘+ Drilling rigs ~ variety for different purposes at different costs ‘© Drilling Costs -rig rate and time are biggest factors - cost should not be impacted by shortfalls to HSE. + Driling process + Well design and pressure — pressure prediction essential ‘= Well data types — data acquisition strategies need to be planned well in advance and review by peers (flaring peer assist) ‘+ Well Planning - very detailed processes in place. 1 ‘Applied Petrieur Geosclence edat3: Besa Asis b Module 3: Basin Analysis o ° + Module content 3.1 Structural Geology 3.2 Biostratigraphy 3.3 Stratigraphy 3.4 Petroleum Systems + Key Messages — From the building blocks of basic subsurface data (e.g. ‘outcrop, wells, seismic etc.) to a fully integrated understanding of the evolution of the petroleum system. ‘Applied Patoloum Georelonce ode 3: asin Anaya 3.1 Structural Geolo: Content * Structural geological controls on basin and trap formation Messages + Basin Location and Drive Mechanisms * Controls on Trap Styles * Structural Geologic Controls On Petroleum Systems History - Structural Timing Reservoir Compartmentalization ~ Fault Seals Reservoir Performance — Fractured Reservoirs Drilling Hazards — Stress & Geomechanics ‘Apolod Petroleum Geoscience oun 3: Ban Ate bp Structural Geology o ‘* Most of the world’s petroleum is found in structural traps = The vast majority of BP's future portfolio resides in structurally complex traps, * The geometry of and complexity within structural traps are fundamentally the product of the interplay of two key factors = Plate Tectonic Setting ~ Local Mechanical Stratigraphy © Structural controls are important from global plate through reservoir scale ~ Structural concepis are relevant throughout upstream project, from exploration through to appraisal and development i. L it | < Pro R BD cotrecien || “Apped Petroloum Geoscionce Moa Ben ae bp Range of Tectonic Settings o + Extenstonal xy Zo, tenia Basins min response ecing othe crs ‘and sub-crustal lithosphere, usually n areas of plate divergence but somelimes at convergent plate boundaries + Compressional (or Contractional) ‘Compressional basins develop in response to loading of the : lithosphere in front of mountain belts located along convergent plate boundaries * Strike-slip [77 stake sip basins develop in response to localized extension ‘thin rater plats boueres oe econ plates side Inert ston snoher + version Inversion is a secondary process usually observed within ‘extensional or slike-slip basins due fo the overprinting of two. different tectonic events ‘Applied Petrcour Geoecence ale Baal Anaate by Contols on Trap Styles — thin skinned + The presence of weak layers within, the stratigraphic column being deformed strongly influences the {ype of structural traps that develop San Pedrito Anticline, NW Argentina + These weak layers allow ‘detachment’ Batween sequences of rocks, such that these sequences: deform indepondently trem one another Salt and overpressure shales are ‘examples of weak dotacimonts +The thicknesses of detachment layers also exerts a strong influence Con the style of structures that ‘develop Thckerdetcmensinpata rte ee Seah ‘rocget wrt ceteraton a Betvoon mechanical rectoges” edad enter “Applied Petroleum Geosslence Nodete3:Cesin Anis bp Compressional — thick skinned 0 + Cusiana/Cupiagua, Colombia Later stages of structural development involve Paleozoic basement ‘Grose Seotion provided by Jaime Martinez, BPX Colombia ‘Apeled Piroloury Geoscience oe: Basi ries bp Controls on trap styles — thick skinned ‘+ ‘Structural traps develop due to deformation In the absence of any regionally important detachment surfaces + Structural development is tie directly to deformation in the tnderiying basement Extensional Rift Basins (e.g. North ‘Sea, Gulf of Suez} Compressional Basement upits {ogy Mguniain Foreland, jorthemn Andes) + Often referred to as ‘thick skinned deformation as it Involves significant portions of the upper crust + Plays an important role in Analog rift model run at Royal Yen adie ot Holloway (University of London) fhe eSusE having an important ‘Met ef neon Impact on heatow ‘opited Petroleum Geosconce oc 3: Bsn oars bp Thin Detachments - Extensional o + Typically well-organized systems of faulted blocks, usually roating into a common stratigraphic level Regional (seaward-dipping] faults tend to dominate ‘+ Geometrically predictable relationships between faults and associated folds (ten dominated by extensional rolovers developed above cur-planer (isi) noxmal ‘oped Petrlaur Goosclance one 3 Bole vata Sp Thin Detachments — Compressional + Typically well-organized systems of faulted blocks, usually rooting nto 3 Sinmon stratigraphic level + Geometrically predictable relationships between faults and associated folds Feueend elt ronagaton fd ses er coneony observed a visop and inthe + Sequences of regular thrust sheets or hanging wall folds Wirlen US Carter, Canada, Polish Carpathian ‘Applied Petroleum Geoscience Meso 3: Basin Anas bp Thick & Multiple Detachments - Compressional + Complex, often irregular structural geometries, rapidly changing symmetry and shape over short distances *+ Unpredictable relationships between faults and associated folds ‘Large complex detachment folds, with variable asymmetry (vergence) Subandean Fold Bolt, Structures are sometimes associated with mudisat apie + South Caspian Sea, ran “Applied Petroleum Goozclence Aa Bsn ae Pybp Thick & Multiple Detachments - Extensional + Complex, often irregular structural geometries, rapidly changing symmetry and shape over short distances + Rather unpredictable relationships between faults and associated folds “Turle structures, mud or salt diapis, regional & counter-regional faults ‘Allachthonous salt sheets and salt tectonism (ror later) “Applied Petroleum Geoscience Modu 2: Bacar Gravity Tectonics + Astyle of detached deformation thats common on continental = argine or within large : 4 Sompressional belts + Deformation accurs due to the Collapse of a farge wedge o iatefiat being acted upon by sravity Slumping isa cormmon ‘eepresbion of grew tectonics + Updip extensional faulting is colten linked to ontemporansous down: ly-dipping weak detachment fayor, often salt Guif of Mexico, Angola, Offshore Brazil ‘+ The amount of extension should bbe crudely balanced by the down-dip folds and thrusts Extension Compression oan: ux anys t'gbp Gravity Tectonics al Wet Atiean Marcin Fe {from Ruby et at, 2002) ee ‘poled Petroleum Geoscience Mose 3: Bas Anas iebp Gravity Tectonics — Deepwater foldbelts’ 4000 “Applied Potoloum Guoslnee ensanisaorie Cybp Salt Tectonics + Salt has a lower density that sediment ‘As salt is buried within a basin it becomes unstable due to it's relative buoyancy and will begin to intrude and interact with its overburden Restorations of ‘an analog salt model run at the Uaboratory Nerd, 1998) “Applied Petroleum Geoscience Modul 3 arn Anal Salt Tectonics © This instability can result in a range of structural styles that are particularly characteristic salt infition/defation; down-building; sliding * Complex interplay with contemporaneous sedimentary systems + GoM Shelf & Deepwater, Angola, Southern North Sea Pessoa Day Taten fom Mei, 199 “opled Param Gaosclonce 3: Anais fybp Salt tectonics — Block 18 Angola ‘rafts’ ‘Aaled Petroleum Geoscience ase 3 Ban Ala Chop Salt tectonics — Blo 8 Angola ‘turtles’ ‘Appled Petrolaum Geoscionce ogee 2a Anes Strike-Slip/T! transform Margins ‘= The classic example is the ‘Ridge Basin’ (Southern California) developed along the San Andreas Fault system Pull-apart basin developed within the laterat slep-over between two strike-sip faults Relsingsapovrleten “Apoied Petroleum Geoscience osu3: bas Asis, Strike-Slip/Transform Margins Cte + Often shows offset between extension at shallow levels (inthe erust) and extension at depth (within the lithosphere) Hot basins: Extension in crusts offst from extansion inthe ithosphere, reiting fn "Po heat input ors the astnenosphere Eee + Examples: San Joaquin and Los Angeles basins ‘Cold basins: No stretched lithosphere + Example: Vienna basin 3D Geometry of an idealized Pull-apart Basin Based on Physical Modeling ‘Applied Petroleum Geoscience edu; Basin Asie Inversion To form an inversion ‘a pre-existing basin controlled by syn- ‘depositional extensional (synrift) faults ertension Acchange in the regional stress system from extension to compression Extensive re-use of the pre-existing syn- depositional extensional fault system « Examples: Indonesia, SE Asia Hercynian Basins of NW Europe (Bristol Channel, Celtic Sea) Southern California Compressiovinversion “Applied Petroteum Geosclence ute: Bava Ania fpbp Inversion « Kimmeridge Anticline, Wessex Basin, UK i‘ oa iB ‘i “Applied Petroleum Groscence osu: Bava Asin febp Inversion & Gravity Tectonics coarmgous otk Inversion usually refers to EEE gnoonsias reversal of motion on pre- SS Comment aga existing normal faults in a compressional sense “Taken tom MeChy ot, 2000, te Sse wwe w USED WOH URE JonojJo4 jeuo|sua}xe Aem-y aB1e ® UnpIM suoNENUINDDe eyesUepUy/seB pajeas ines © PepIUHL ‘Plaid AueBoyeW dag oles 22uapsoag wnatosiea panddy cup —— pug Ajsosod pooueyus fye90} ul nse quantoatseo sassodbid Buiyney se spiny yulsueay UES jeu ‘Sony aon ‘s9u0z sing) Ulyneea ABUL yd ayo 10 “Ue 8 Jo o}si jeung ay Ul Ate] peUo} SINE ‘Ayyqeaunad pue Aysorod paonpss ul synsex ‘Sossen0ud tne] Se sJe0s Se yor UayO UIseg ver ‘2 Jo Aloe jeung dup Ut Aveo poutios snes podojanap anes oun oensbaate ‘aun oun 3e Bunse sosseooid jo sodA} att aay Jo Bulpueysiopun ue aAey 0} Aresso9u someones ‘sqiney 40 JOIAEYOG 943 IOIPAT OL © rrponing suBlsop oe 119m pue sueid dojansp xajduioo eunbos ee ‘SulOAaS2d PAZIIEIUSUEUIOD AIYBIH * ——oumspenng sunpuco pin sone ‘Se pue moy 0} sieweg se UIOq Ie WED SMe ed aoeunsgns oy | NIAID uy Moy piny eouenyu! AIpUNO}OId SINE © sussuoyooy jpas-ynod uoneziejuaupleduiog jeinjon4js dase cee eouarssoap umnoronag pency eb ‘pan sen a2 29emE oH uy yBnony uonezieweunsedwoo so19se2 joIpoxd ‘oy Yotuat ila joo} ajqissod e se seaepns reinjonys pepjoun au) woy en ybrosyy ‘yjenuonbes vonewuoyul sunjenIn anisac, ‘Aou098 en snoouesodusoquoo pue eave Kpnis ‘9 ss0:3e uoisyndxe UogesOsDk 0 Bunun “Avisiy jeung Yoo !ne8 ajenfena tuonnguisip sonsasas uo sjaujuco jesnjan.as S838se Oj 210) -pjng jo stew ajzieua6 0} pue uowsodap soniesos Buunp sayes uoHjewewpes pue tuonewuoj9p dg Jojuou! oj Bjep asa 257, 91K9IN Jo 41ND ‘vay UOKUED ugaig wWiay;nog Jo UOReIO}S8y CP + “swiayshg wnejoned sr wo ouster moan py sg ane wag SEMEL Tele Buyjopom suiojsAs winajorjed ed epee rod; Rbureeo rou u}uWo9aq 1 UorEI0}sei 'g sisAjeue jeamonys gy © uonisodap jeas: pue sjonrasa: Bujjor]u69 YYROIB GEL. ones61u uoqueoaupAy Buyjonuco uoanjone des), Uuognjona yeueyy pue uonngusip ypor-a0unos BujosjUo9 UoWeLLIO} USE Burn -g Anowoag jesmjanag: « uiseq Arejuowipes e uiigim Au0}siy moyTeSH uonnginsiq UoRN|ong |esTUD * swa3shg wnajoyjed sasatnp anna pea ‘Appiod Petroleum Geoscience Modul Bests Andis by Fractured Reservoirs Orbe ‘uit Related Fracture * Natural fractures develop throughout the FauttRolaed Frcturs * life of rocks as they are buried,” deformation and uplifted Folding & faulting are two obvious mechanisms. {or creating fracture systems, although the ‘evolution of fluid pressures is also very important + The presence of natural fractures within Petroleum reservoirs serves to Enhance the storage capacity, especially within iow porosity cartonate and clastic systems Increase the degree of ow heterogencity, such hata move more readin pitered + Predicting the distribution, density and orientation of natural fracture systems is Important for effective reservoir management mon 28, Noe “Aeplod Ptrcloum Geoscience oslo asi asyle Fold Related Fractures _ + Fractures developed during folding of competent layers have predictable orientations and densities + Various models have been developed that link fracture intensity to fold curvature * However, the complete history of the units must also be considered Pore pressure evolution Folding & Unfolding Tae rom Neto 2000,Course Notes) 15 “Avefed Petrotaum Geosconce Noda: Ban Aste b Structural Drilling Hazards o ‘ + Drilling welts in structurally-complex, ty fectonically active settings is Steess Acting on impacted by anlogined <- “The presence of fault-zones ot structural o ‘Selachments (over-pressured shales) aml ih Local changes In the magnitudes and ‘Stent of stresses nthe subsurface effects cause instabilities that can load to collapse of the well bore ‘Stuck pie, wire fine leasing problems = Tost hg sive = $9888 Rapid fui losses = well management issues i SHEE Risk i + Better prediction and management of structural drilling hazards is very important and highly valuable to BP “Replied Petroleum Geoscionce edu 3: Dosis Ante No Drilling Suprises + Mungo Example To fully understand the impact of faulting on drilling, faults must be mapped in detail in both the reservoir and overburden, + Dating problems, interpreted from well reports, can be displayed along wells in the ode! as picks and log curves within OpenWorks®, ‘At Mungo field, we have shown that well-bore instability problems within the overburden ‘were the result of drilling sub- parallel to or along fault zones. Fault zones intersected at larger angles were usually trouble-free t ‘Applied Petroleum Gaossence Module 3: O0cn Anse Summary + Main basin forming mechanisms are related to major plate boundary processes * Key trap forming mechanisms are — Compression ~ Extension = Strike-slip = Inversion * All can be associated with either thick or thin skinned deformation styles 17 scott gece kbp 3.2 Biostratigraphy + Aim to summarise the key uses of biostratigraphic data ~ Biostrat is a specialised skill Used in the entire value chain where data is available ihe Saat aia iebp What is Biostratigraphy? * Biostratigraphy is the “separation of rock units based on their contained fossils" sci = > aka, fossil analysis, * Utilized to help determine: ~ Paleoenvironments ~ Relative Geologic Age Relationships ~ Absolute Geologic Ages and Correlations, = Thermal History ~ Provenance ~ Structuralistratigraphic anomalies (faults, unconformities, channels) ‘= Best utilized when integrated with other interpretation tools ~ Seismic, well lags, outerop sonoma Tpbp The “Perfect” Time Marker * Wide Geographic Distribution Short Stratigraphic Range Abundant Tolerant of a Wide Variety of Environments: Distinctive Appearance Synchronous Extinction ‘a en a3 bp Why Biostratigraphy ? +The use of microfossils to define and discriminate rock packages in terms of time slice and depositional environment + Fundamental, integrative building block, geoscience framework “+ Reduces risk/uncertainty by constraining sub-surface interpretations - tags and correlates logs, calibrates seismic + Exploration to production, wellsite and desktop + Qualitative, non-repeatable, beyond ithostral, gives a different angle on datai “ground-truth’, rock data + "Spot datat — similar scale to logs, finer than seismic ~ cuttings, swe, core: targets muds, sits, mari imestones. = Low cost, low tech, big impact ‘+ Technical edge for BP esp. in production biostratigraphy ‘+ Intable Vowel Syndrome — no need to dabble in buggy names: foxtenoe Pep Correlation & Calibrating ‘Apples Peromum Geoscience bp Maite: Baan Anaya Fossil Groups + Several groups with different size ranges, compositions and methods of study Calcareous microfossils - forams, algae, ostracods Calcareous nannofossils Organic-walled microfossils - dinoflagellates, spores, pollen, acritarchs, chitinozoa Siliceaus microfossils — radiolaria, diatoms, (some agglutinated forams) Phosphatic microfossils - conodonts ‘pied Pewoeum Geoscience bine tebe Exploration Ties oes cconostgrapy ana Corton cre ‘Suge movin oat ‘Sess chare sooo tnaging poe SEAM Stsreces| tng Strvctaa Csiogy Paolur Spe as ay Fay ye Tectorosratsranty | | cascnemiy=sourcorock proses and mat, Teale Netarshy fina oration sngmigaices "| | aoe a crs mapping Apnled Petroleum Geoscience eartaniases tebp ghessaon ates neta, ‘Sinton anshacogenay coir ; (catontay tn Sire sndsotare | | Rtytageacet ‘fhuid Row) using See et ooo meer rami coe Conant Ramer z Sc Reai | [ rn os an etiam fest bacentes bp “Biosteering” Real-time (welksite) monitoring of stratigraphic position relative to reservoir High-resolution biostratigraphic template established in pilot hole or offset wells: "window" typically a few metres (Re)direction of well trajectory (e.g., on encountering @ sub-seismic fault) + Ensures optimal reservoir penetration + Case histories of applications across a range of ages and facies utilising a variety of techniques (and contractors) ‘pea Pewseum Goosclonco Modate 3 Basin Analyse Biosteering Maximising reservote penetration in HA wells. sere ec gpbp * Benefits include savings of up to tens of millions of dollars in drilling costs, addition of tens of millions of reserves and tens of thousands of barrels per day of production throughout field life (BU figures, not ours!) Andrew ~ “additional 10 million barrels of reserves” Foinaven — ‘additional 10,000bopd achieved by increasing reservoir penetration by 10%" Valhall — “25% of production attributed to biosteering” Machar — “increase of 25% in PI" $Gitie basso ae bp How Microfossils Are Identified: + Extracted From Well Cuttings, Core or Qutcrop Microfossils: Rock disaggregated then washed through stacked sieves, Nannofossils: ~ Mud fraction diluted & smeared thinly on a glass slide Palynomorphs = Entire rock dissolved in lovely toxic acids and residual chitinous material smeared on a glass slide Fossil fragments and some forams may be identified in thin section ‘opera coerce Beas ath sts bp Scale of Microfossils: SEM Images Famcoanaaes grace Sve ah bp Foraminifera * One celled animals (Protozoa) Manufacture and inhabit a "test" or shell Stratigraphic range: Cambrian-Present Giebigerna bullonsides Fossil group most widely utilized by petroleum industry \Gophyrecapsa earobeanica Planktic or benthic vigerna presting Fresh, brackish or marine ‘ee Seats ae bp Calcareous Nannoplankton * Skeletal elements of pelagic marine algae + Single-celled algae surrounded by calcite [iam 5 « a Ld = ‘plates’ | * Stratigraphic range: Jurassic-Present Size; 2 - 30 microns Rapid evolution, very abundant Planktic organisms- excellent regional time markers, esoecially in deepwater environments Discoasters, Coccoliths, Sphenoliths, etc... ‘eusemnimcnee Sigbp Palynomorphs * Chitinous elements of plant spores/pollen and marine algae Stratigraphic range: Paleozoic- present Size: 10 - 40 microns Wide range of palecenvironments ~ Terrigenous ~ Freshwater = Brackish marine Diverse forms, abundant Lingulodinium macterophoram Unnamed fang! spore Spores, Pollen, Dinocysts, Algae teltae ston noni $e bp Others * Ostracods * Conodonts + Megafossils * Graptolites * Trace Fossils ‘pnd Petrocum Guosctnce fbp ‘Motuta 3 east Anaya Paleoenvironments ceoitceneseee te bp Paleoenvironments + Water Depth from Benthic Forams + Water Temperature from Planktic & Benthic Forams © Salinity from Benthic Forams + Depositional Energy Determined from: = Rock Type ~ Grain Size ~ Fossil Preservation * Chronostratigraphy not exactly biostratigraphy (time-trarsgressive) Minto Bsam hess #5 bp Palynofacies Cusiana seasae iam 1 sec ee nes fFbp thologic Information from Well Cuttings « Lithology (sand, shale, limestone, etc.) * Grain size, sorting, roundness/angularity, frosting of grains + Minerals ~ Pyrite = Halite = Gypsum ~ Glauconite ~ ete * Reworking fear febp Integration of Biostratigraphy Problem: Were mixed lithologies created by: Local slumping? Sand injection? Dobris flowhransported clasts? Sand and mud samples were analyzed for microfossils a ie Results: Sands had very little microfossil content w"(eppical) but what was observed was consistent with mid-stope environment of sands Shales contained NO marine fossils, oni terrigenous & freshwater palynomiorp BEE Arsen slike: Normal ight ‘vate | Ynnamos p ‘ange spore Core Photos from well As BPXEB 169(Snapper) Field, Interpretation: Terrigenous mudclasts transported GA Reservoir "mass flow” from onshore provenance ay (Glasts deposited > 100 miles from source) " Mocute 3 Bani Anaya Summary agate Petum Gescoce bp * Biostratigraphy specialised tool + Used extensively in stratigraphic correlation (covered in sequence stratigraphy module) * Helpful in geosteering wells (biosteering) + Useful in palaeo-environmental reconstructions te Mee &: Bosh tral 3.3 Stratigraphy Content * Lithostratigraphy + Seismic Stratigraphy + Sequence Stratigraphy ~ TR Sequences ~ Genetic Sequences = High Resolution Sequence Stratigraphy ‘Applied Pettoteum Geoscience febp More info : Sed/Strat 21stC Geoscientist Course Messages Present the evolution in stratigraphic nomenclature from lithostratigraphy through to present day thoughts on sequence stratigraphy. Outline key concepts and methodology for interpretation Applied Pevoleum Geoscience bp Maite Basin Anal Introduction + The goal of the stratigrapher in the petroleum industry is to explain and. predict the distribution & thickness Variations of reservoir quality strata, source rocks, and seals. To accomplish this, he/she must reconcile two contrasting, but equally beguiling, paradigms that have challenged geoscientists for over 200 years: Paradigm 4: Formations (Lithostratigraphic Units) are laterally continuous, time-stratigraphic units Paradigm 2: Formations (Lithostratigraphic Units) are Time-Transgressive White the correct paradiom seams intutvoly obvious, in thse days of computerized data bases Is stil prety tempting just fo datum a wellteg cross section al the base of a marive shale Tle Pein Gnscnce MESS ausnanapos app Basic Concepts UNIFORMITARANISM: : Hutton & Lyell (UK: Early 19" Century) “The Present is the Key fo the Past” ‘Conceptually, since thaa area wido varity of environments inte present, 50 10 soul there bea wide vatey of coevalrocktypes inthe rock recog (Loose Transiaon by Donovan) ‘West Coast of Mexico Caicos Island, Batamas eee oer eee abp Basic Concepts - Lithostratigraphy The Facies Concept: Amanz Greesley (1838) Jura Mountains: Switzerland/France Region t sea Fosint_fapins_ fant “jn the highest Jurasele unit he could distinguish S eqparate ithologie ies... each dominant over parts of the region he studied and each ‘characterized by Its own fauna, To the different but contemporaneous Fock types and faunae he gave tho name facies, the latin work for aspect." Dunber and Rodgers, 1987 lad Patou Gocecirce bp Concepts Law of the Succession of Facies: Johannes Walther (1894) Facies observed within a conformable vertical suecession also occur as cooval lateral facies (Walther’s Law) Vertical Facies ‘Succession Recs Brown BH Croneatatiied Soncstones| ed Mudstones, 1 LinceatrStnitons, Dark Gray 1 Fetes Hundreds of Feet BH Fossitforous Lnestones Tens of Miles > ‘gpd Pateu eseence o ‘Neto 2: ss anayis bp Basic Concepts Fed Mudstones, Bi Letticular Sandatones, coals Ten Coarsening Upward Sndotones Hundreds of Feet a ark Gray & Fossitiferous Modstones| Tens of Miles 00201 cen + Lithologic Units are Time-transgressive + Facies Relationships Among Formations + Stratigraphic Record Comprised of T-R Cycles mic bp Basic Concepts Unconformity-bounded Units: Sequences (Sloss 1949, 1963) Berens ere Leo Peas + Slose defined 6 Uncenformity-bounded units (termed SEQUENCES) on the Nort Araican Craton {Sequences contain a number of coeval tme-ransgressive formations + Proposed Unconformilles 29 Time:significant Surfaces: Separate ldor stata bolow from youngar above {Therefore each Sequonca Is a Unique Age (Chronostraigraphlc Methodology) + Believed Sequences were tectonic in origin jacieogee bp Basic Concepts Seismic Stratigraphy: Point | (Vail & others, 1977) Seismic Reflections Follow Physical Surfaces ( Bedding Planes & Unconiomrities) EE] ncsntormny «These Physical Surfaces Have Chronostratigraphic Significance + Framework to Identify Coeval Deposits - Explain & Prodict Reservoir Distibutions + Can be used to Explain & Prodict Distbution of Reservoirs, Source, & Seas ‘eaten cxocwes sauetezanse ¥bp Litho versus Chronostratigraphy Lithostratigraphic vs. Chronostratigraphic Correlations aso yop Integr in of Data Sequence Stratigraphy: Van Wagoner & others, 1990 Seismic Stratigraphy Evolves to Sequence Stratigraphy with rigorous ‘addition of outcrop, core, and log data es Pou Goosen cass Anyes a bp Basin eas tenia Perceen ce bp Megasequences + An informal stratigraphic methodology, beloved by esteemed BP Senior Sclentisis, (StewartRoberts), used to group thick (thousands to feet) successions of similar (sl character ic) + Typically defined by major surfaces of angular discordance, composite onlap or downlap + Megasequences are Tectono-stratigraphic units which hi-light discrete phases of basin, tectonics, structuring, and deposition + Captures spirit of Stoss's original [eons bony eRe] Sequences in terms of thickness, duration, and origin + Originally proposed by Hubbard & Roberts in 1988 oped Petia Geoscience op series Seamer Pp Megasequences of the Alaskan North Slope Brookian ‘Beaufortian Elesmerian ‘Major Composite Downlap Surface — Uncontormity Brookian: Clinoforms, Downtap S>N i: Clinoforms, Downlap N> S Planar Reflections, Onlap onto basal Unconformity to N ‘plea Patcloun Gecsoence eaten Anais i bp nal Sequence ‘Sequence Boundary Wentification ‘Applied Petcleum Geoscience (eee rename Sop Depositional Sequence “i Aralel conlarmabe sven sala Sounded ts la and bes by ncoeites bar | Ginolatve conomles (liam and aber, 197). rwo.way tavel Me & wees + Concopt ofthe “Sequence” Modfed trom Sloss (1963): Unconformity-bounded units BUT, much higher-trequency. + The Depostional Sequence is delernined by a single objective citer, the physical relabens ofthe ‘tala themselves = Deposional Sequences bounded by Sequence Soundaties a cna te bp Sequence Boundary Mitchum & others (1977) 0 ec rae : 5 z afer Greenee and Moore, 1988 : Fi —— stavence eountary a re priors wee " + Sequence Boundaries (SB's) are objectively defined + Discordance of Strata is the main criteria used + Stratal Terminations occur both below and above SB's sina aos bettie se bp Parasequences and Facies GDE/Facies Distribution: @ E)_ Disposition rect ‘Applied Petroleum Geoscience Mode 3 Basi Anaysie Parasequences Parasequence: Shoaling-upward sedimentary succession bounded by marine flooding surfaces (Van Wagoner & others, 1980). sears esac ‘apie ree Soe eb Parasequences Parasequences Can Be Defined in Outcrop, Well-Log, & Core They are typically 20'-150’ thick ater Van Wagoner & cers, 1990 earner i ibp Parasequence Boundaries ere ae = flooding surfaces formed during rapid rise in sea level = they approximate time fines ~ they have wide aerial extent, and cut across facies boundaries 1" Module 3 Basin Aras ‘Appied Petrleum Geoscience Fp Parasequences Parasequences: The Basic Unit For Vertical & Lateral Facies Analysis eo tes A a io Ce ane aa EWemeckas eng ue Mace bus anayes a bp Parasequence Stacking Progradational PS Set ate of Depostlon 5 ¢ ate of Recaranodation Retrogradational PS Set Rate of enostion <4 alg of Accommodotion ‘Aggradational PS Set fate of Deposiion nate of Accommodation * ud Pov Gece TE aaa anes % bp Seismic Strat (vail & others, 197) [bea Boundaries + Seismic Reflections Fotow Physical Surfaces (Bedding Planes & Uncontormies) + Surfaces Have Chrcnestratigraphic Signifcance (soparate older stata bolow fom younger above) + Framework to Keni Coeval Deposits ~ Explain & Precict Reserv Distributions ARETE AT ‘epic fata on yb Stratal Terminations Basal Boundary: Ontap NS Top Boundary: some Erosional Downlap [=== | Concordant Concordant : Rotated Toplap ‘Onlap " ‘Applied Petroleum Geasclence by Mesto 3: Basin Anadis p Typical Types of Internal Seismic Reflections Parallel Mounded! [ZS] (tin) ‘crate, [2 Parallel Reflection tee ties) Pree |e Palit Poordata FF diseontrous = ua : —— Roe Subparallel Erosional [| = Cuts —— gS chaote [Se ae potted Blocks KS] ‘Appled Pevoteum Geoscience #$bp Motil 3 Basin dna “Helpful Hints” for Seismic Facies Mapping « Always review seismic data with a processing expert before beginning your interpretation * Build “spine lines” along key well log “fenceposts” around basin to build initial sequence framework ~ Calibrate sequence framework to “ground truth” from wells ~ Establish major facies types * Seismic facies may look different in strike and dip + Try to keep facies “observations and descriptions” separate from “depositional interpretations 13 ‘eset Peer Senses ebp Classic Seismic Facies Mapping « Records observations on Boundaries and Internal Character from Seismic Data * Map as a "Fence" along key lines + Nota ‘Lithology” Predictor + Never do a “t-liner’, as you have in this exercise! ‘Applied Petroleum Geascience fbp Motte 3: Basin Analysis Systems Tracts Figneand | [ Tanearosone systens tec | | Brats ost Tagaiond syettnt Face “Birenatsiscice | EE cosstaatuvint Pin [Taarinsttarin ss [i srina nedetonee Bi rma teves se Condensed Seaton + Depositional Sequences can be subdivided inlo Compartments termed Systems Tracts + Systems Tracts are objectively defined based on bounding surfaces, parasequence slacking, and geographic position within a sequence. Toples Porm Geascenco peony hon tebp Lowstand Systems Tract Tasreane Sut Tact Towstand ‘Systeme Tract Wiorateaterine [costa Pie Eletergiotaarine 35 [dustne aucstnes Lowetend condensed Section Fan + Situated botwaen: SB & TS (Transgressive Surace) + Contains the Lowstand Fan, Lowstand Wedge, & Incised Valley + Progradatlonal to Aggradational PS sets (Wedge) Valley part of LST: Systems Tract based on stratal boundary (TS) not facies offi siHtIIH ied Pevoloum Geoscionce ‘ate Bas nays ae bp Transgressive Surface fae ona [itera tarine 3 [itarine Mudstones trom Van Wagoner end others, 1950 + Firat Significant Marine Flooding Surface across the “Shell” ‘Boundary Belween Lowstand and Transgressive Systems Tracts larine Flooding Surfaces occur in Lowstand Wedge: TS First Significant FS (PS Set) 16 fed Pevcleur Geoscience ‘Bane ceomannes #sbp Transgressive Systems Tract Tigers] | Tranapressive] Syetime tect] | Systems Tract] Eltsrinatatarine $s [Biterine auzstonee Brena Leveo ss sean] {corn Van Wegoner another, 1990 + Situated between: TS & MFS «+ Retrogradational PS Set ‘Applied Petrolaun Geoscience iebp Mada Basin Analysis Maximum Flooding Surface IFS | spate act Bi Fevnvestoarine []Macgratarno 8s [altarne udstonse BBiFan Levee SS Bilcondensed Section after Yan Wagoner and others, 490 + Maximum Marine Flooding Surface across the “Shelf” Boundary Between Transgressive & Highstand Systems Tracts * Marked by Condensed Section & Major Downlap Surface t Applied Peticioum Geoscience Modle 3 Basin Anaya tebe Highstand Systems Tract oo consavatvat [Juri arin [Berra ucstone + Situated between: MFS & Overlying SB “ Aggradational to Progradational PS Set Note: HST is a strata! compartmemt. Strata do not need to be deposited during SL. Highstand| For example in Ramp setting, prograding HST strata may be deposited during ‘Sea Level Fall ‘Applid Potrcloum Geascience Mode 3 Basis Analysts ikbp Sea-Level Changes Sequence Boundaries & Systems Tracts Form in Response to Relative Changes in Sea Level ‘Tahorand Tranageossive systema tract | [Systems Teast 7 ‘Applied Petroleum Goesclence Motule 3 Basin Anis Sequence Boundary Formation & Fan Depo: 5 (Early) Lowstand Z Matec {| (Falling Sea-Level) ms fv ganar Systeme Tract | + Rivers Begin o cise onthe Shelf & Canyons begin to fomvreactvate along the Sholf Margin + If Caryons Capture Fluvial Systems. Submarine Fans are depasited onthe Slope & BasinFleor + On the Exposed Shei subaeraleresion occurs and the sequence boundary Is fermed Applied Petroleum Geoscience (eis sonra ie bp Wedge & incised Valley Deposition (tats) Lowstand Systems Tract Wedge + In basin, Submarine Fan Deposition Ceases, replaced by dowrlapping mudstones of Lowstand Wedge + Shorelines (Progradational to aggradational PS's) develop along updip portion of Lowstane Wedge + Coarse-grained Fluvial and then Estuarine infuenced Systems backil incised Valleys 1€ ‘Applied Petcleum Geasciance sarees a bp Transgressive Systems Tract “As sea-level ise begins lo slow, Rerogradalional Parasequencas begin to develog onthe imer portions ofthe 2 ea quences begin to develop. ot inthe nonmarin reat, vers aro no longer conned to valley, lncreazed accommodation, more floodplain reservation resus in eer neliess-mmaenoertg. Ruwa yet Se me ae bp ighstand Systems Tract @ Stillstand and Initial Fall ee ‘Aggradatonal to Progradational Paresequence | Hignstend Parasequences Downlap onto Condensed Section “In Nonmarine ebundent Roodplain preservation reculs in low nogross "meandering" Auvialsystoms 19 feet pgm Gace teas reain se bp Sequence Boundary Formation & Fan Deposition tet Perdrn Gosobrce ‘Spoled reac oe aie bp Determining Relative Changes in Sea Level s ‘EMME! DOWNWARD SHIFTIN COASTAL ONL AP INDICATES A RELATIVE FALLINSEA LEVEL Vail & others, 1977 x Peaaemasasaeies seein eebp Sequence Stratigraphy: Van Wagoner & others, 1990 a velatively conformable, genetcaly related ‘silccossion of strata bounded by unconformltes rihate corotative conformiies” While the Sequence is stil the Fundamental Sequence Stratigraphic Unit Aged Pevtum Geoscence £ybp Nee backtrace Genetic (R-T) Sequences Genetic (R-T) Sequences: Galloway (1989a&b) Regressive Deposits ‘Teansgressive Deposits RT Cycle Boundaries ‘Siraigraphic Record Consisis of Regressive-Transaressive (R-T) Cycles (Genetic Sequences). “These Genet Sequonces are bounded by Maximum Flooding Surfaces. * While great for mapping, this methodology can lead to an incomplete understanding of reservoir ‘itbtions both in para and deep-water rear. 24 even tebe Contrasting Methodologies A Difference that Makes a Difference Genetic Sequences Depositional Sequences tiie aimee tebe Sequence Stratigraphy & Biostrat Integrate to determine age and palecenvironment Aids in identification of maximum flooding surfaces Helps in identification of sequence boundaries ~ Shits in paleoenvironment = Missing section: erosion, faults, disconformities ~ Fossil abundance correlative to sediment accumulation rate Identification of slumped or reworked section (e.g. mass transport complexes in GoM deepwater) 2% ‘Applied Pelcieum Gaascienco £ bp Heke 3 Basin ibe : oe Fossil Abundance in Depositional Sequences fa RELATIVE NAMNOFOSSIL greuoe, SEALEVEL “ABUNDANCE ‘MARUMUD-PRONE erosindua woneasine sequen ORDER ‘SILTMUD-PRONE SAND-PRONE ott thes LEMOS TL lor EROSIONBYPASS) Hens fe Paleum Gooscence eee abp Graphic Correlation Graphic Correlation Interpretation i hiatal gaps 3 |_ > ‘or noemal faults i rmulttenell if 5 display np Sn ae Cpe Sed TE 4 reverse feult “—— change in cate ‘of eceumulation : enn ae oo 23 Applied Petrcloum Geoscience bp ‘Motte 3: Basin Arable. Integration of Biostratigraphy Problem: Were mixed lithologies created by: Local slumping? Sand injection? Debris flowltransported clasts? Sand and mud samples were analyzed for Bogulg: Sands ha very Ute mcrofoasll content iypical) but what was observed was consistent ‘with mid-slope environment of sands, Shaleg contained NO marine fossils, on} terrigenous & freshwater palynomorphs like: UV ght a os Core Photos from well At a ee ee Normal ight Gon ‘Applied Petwoloum Geoscience es bp Meseie Bean Analis Integration of Biostratigraphy Examples of condensed section “marls” from the deepwater. Foram and ich sediments create a “carbonate” log response Non-cemented "marl" creates a Calicite cemented “mat!” creates a “soft” acoustic response on nara” acoustic response on setamic, which can be intorpreted seigmic ae asand = Uncemented maris can act a5 * Could act as a local or subregional reservors - great porosity, but itl seal if not fractured permesbiity “Could be 2 reservoir fractured 2 DiamareLea ee Siebp Integration of Biostratigraphy ‘Seismic Example ‘cemented in Acoustically “hard” response, present across basin with some seismic-scale stratigraphic variability Section dominated by marl; however, thin sections show presence of sand, silt & shale ‘Avpied Petcleum Geoscience ts bp tees hasnanate, Sequence Strat & Ichnofacies + What is an Ichnofacies ? A classification scheme based on the occurrence of recurring community associations reflecting adaptations to environmental regime Seilecher (1967) «© What is an Ichnofabric ? “all apects of the texture and internal structure of a sediment that result from bioturbation at all scales” Bromley & Ekdale (1986) What do Ichnofacies & Ichnofabrics tell us ? ‘facies belts and facies shits ‘spalaeoenvironment ‘relative sedimentation rates ‘estratal surfaces ‘econdensed zones Sea enolase alas on website (Resercir Dotripton Network) 25 eure tebp Sequence Strat & Ichnofacies Bioturbation Index + Degree of bioturbation (from 0-6) expressed in terms of burrow density, ‘amount of burrow overlap and sharpness of original sedimentary fabri. 0-no bioturabtion 4 - sparse bioturbation, sedimentary structures dominate 2.- low bioturbation, sedimentary structures dominate ‘3 - moderate bioturbation, primary fabric largely destroyed 4 - high bioturbation, bed boundaries indistinct ~ 5 - intense bioturbation, bedding destroyed 6 - complete bioturbation Taylor & Goldring (1998) septa Perini Gascince porns ub Sequence Strat. & Ichnofacies 2 sppied Porcieum Geoscience Movie 2 Basin Ara bp Summary + Sequence stratigraphy provides a robust methodology and terminology for describing rock successions ~ Important in linking isochronous events within which packages of rock were laid down ~ At the reservoir scale, provides a means of evaluating sandbody connect — Use the building blocks approach to create a framework iy + Integrate all available date (seismic, well data, sedimentology, biostrat, trace fossils, heavy minerals) + Blostratigraphy underpins robust chronostratigraphic correlations ar ‘Applied Potroloum Gaoscionce se Bsn Ate by 3.4 Petroleum Systems o f Content + Petroleum systems as an integrated basin modelling tool in BP Message ‘+ Organofacies as a source rock classification scheme Tools for 1D, 2D and 3D modelling Charge CRS South Atlantic case study Pressure prediction (Applied Petroleum Geoscience ee BA bp Geochemistry in BP o In BPA, “Petroleum Systems Analysts (PeSTs)” help with: Prediction and Analysis of Petroleum Geochemistry Basin Modeling ~ Charge and Migration History ~ Seal Prediction = Pressure Prediction + Source Presence and Maturity + Value (Anplied Petroleum Geoscience Mle 3: Basie Anais «Petroleum Systems represents an integration of the formerly recognized but individual skills of the geochemist, basin modeler and geologist, to provide a holistic understanding of how the basin fluid system works", In essence reservoir engineering at the basin scale, “This has effectively led to the creation of a new petro-technical discipline: the Petroleum ‘Systems Analyst. (Applied Petroleum Geoscience ech 3: asin Asie Source Shop « Whats a source rock? * The Petroleum System + What does understanding the petroleum system mean to the business? ~ Why? [Applied Petroleum Gaoscionce Moda 3: Basin Anse Critical Risk Elements Trap — Geometry ~ Seal Presence “Capture ~ Seal Effectiveness System Reservoir ~ Presence ~ Effectiveness harge ~ Source Presence “Delivery ~ Source Effectiveness System” ~ Maturity = Migration. ~ Timing (Applied Petroleum Geosctence The Petroleum System (Seat capacity] ‘iniegrty _Labiesty | SxseuretTrap] Reser sewoir Goa Pevoieam enarae] (at easel recente (2) story | el : (Applied Petroleum Geoscience Module: Din Aniala The Petroleum System G bp * Kerogen converted into Petroleum — Process = Maturation —> Measure by kerogen color or reflectivity * Petroleum is expelled ~ Driver = volume expansion * Petroleum migrates into carrier bed —Bouyancy vs capillarity (Raplied Petroleum Geoscience Mel: vin Asie Source Summary Urb Biological inputs: Algae, Bacteria and Land Plants ne it Diagenisis EM * Lipids, lignin, protein, cell wall materials, proteins & carbohydrates= KEROGEN « Measure compsition and concentration by pyrolysis Applied Petroloura Geoscience Modi 3: Bain Anais. by How do we classify source rocks? e 7 Applied Petroteum Geoscience octet "sbp Organofacies 0 : ia alas Bir Reale“ ia Tenens, _ porerieres) ty Boon Piers [Applied Patroloum Geoscience Mode: aca Asile b Source Rock by Facies G p ‘Type of Facies: possibly represented by Facies: Continental sLake -Paludal (freshwater swamp) is marine) Shoreline +Paralic areas (shoreline but no recognizable delta) +Enclosed basin -Open Shelf “Slope Applied Petroleum Gaosch Moguo 3 Bach anes bp Source Rock Gross Depositional Environments o ““GDE mans: maps of sediment distribution pattems between key sequence boundatles: Paleo-facies maps built from integration and interpretation ofall, available data Used to predict likely distribution of of potential source, reservoir and sealing lithologies + Lithofacies GDE's provide @ tool for predicting the distribution of organic- rich rocks such as: ~ deep marine carbonates or shales“ Oil-Prone Sources — lacustrine deposits <—— ~ terrestial shales <— + Bul to predic: ~ Distribution of organic matter ~ Organic richness ~ Petroleum potential and volume + Calibrate with wel logs, outcrop data, geochemical information wherever possible Gas-Prone Source [Applied Petroloum Gaoscionce Neca 3: Basin nays Get a Sample! * From a Petroleum sample, a geochemist can often predict: ~ Environment of deposition ~ Age(?) of source rock ~ Produeibility + From a Source rock sample, a geochemist can often predict: ~ Depth of burial - Age of source rock Tppted Petrotoum Geoscience odes: Bet Ane feb Petroleum Phase: Hierarachy of Controls + Source: Gas or oil-prone + Maturity: Source in oll or gas window Plumbing: Separation along migration path In-trap ~ Preferential leakage of gas ~ Preferential splliage of oil = Uplift exsolution ~ Further burial causing solution ~ Thermal cracking + Wild card: Biogenic gas, others? Applied Petroleum Geoscience oda: Dain Anse Biogenic vs. Thermoge! eee Resp peri Geochemical “Fingerprints” bp Biodegraded Oil + notice “light end has been eaten away GCMS of a good-quality oil = full range of biomarkers (Applied Petroleum Geoscience Resource Value * Petroleum Phase: Oil vs. Gas prediction * Petroleum Quality — Heavy vs light oil ~ Sweet vs sour oll ~ Waxy vs napthenic oi! — Dry vs wet gas ~ CO2IH,SIN, gas vs methane ~ Sulfur, heavy metals [Applied Petroleum Geoscience Petroleum Quality and Value pop + The type and quality of petroleum affects “what it is worth”, * Factors such as: ~ Phase - Gravity ~ Paraffin content = Sulfur = Nickel, Vanadium. = Wax content - Viscosity - Biodegradation [Applied Petroleum Geoscience Moo Bsn Atte Basin Simulation Software op + 1-0 Tools ~ Genex: IFPIBEICIP + Genex BP: BP proprietary software (includes Theta and BP kerogen kinetics) + 2.0 Tools — Temispack: IFP software package for integrated basin modeling Limited structural capabiles (cannot handle some geometries created by salt withdrawaldiaplism, compression or extreme extension), can only handle 2 phase modeling ~ Temiscomp: Temispack, with capacity for handling 3-phase fluid + 3DTools = 3D basin model in DWGOM = 3D-move: 3D structural restoration [Applied Petroleum Geoscience dat: arin Asia bp Temispack o fT [Applied Petroleum Geoscience ec : asm nays ep Crustal Type Influence on Migration History (Migration history, Perdido, GoM Migration history, Perdido, GoM Oceanic Crust: no major expulsion of km thick Thermal Crust: migration up petroleum from the source (Roped Ptrelourn Geoscionce Mod: in Ai £sbp Petroleum Systems: Impact — Risk: drawing on an understanding of the charge system — the "supply side” of the prospect risk equation - this considers the risk elements of Source Rock Presence & Potential and Access to Charge = Volume: in addition to the “supply side” elements this requires an. understanding of Column Height Constraint - Value: Oil v Gas or more precisely GOR/CGR, non-hydrocarbon content e.g. H2S, C02, ~ Reservoir fluid distribution ~Cost / HSE: ~Safe, efficient and low cost filing (pressure prediction) prediction of occurrence of toxic fluids predict, handle and sequester CO2 it [Applied Petroleum Geoscience Moca 2: Bela Arsle, Charge presence _ Source Rock Presence and Potential (Risk Element - sometimes called "Source Presence”) * Describe the chance of occurrence, in the fetch area of the prospect / pool, of a source rock (or rocks) capable of charging the expected in-place trapped petroleum volume. * Important attributes include distribution, thickness, organic richness, petroleum potential and whether the organic matter is of adequate quality to source the desired product type. (Applied Petroleum Gaoseionce Mea 3 Bsn aaj i hbo Charge effectiveness Access to Charge (Risk Element — sometimes called “Source Effectiveness”) ‘+ Assess prospect style and its impact on the chance of occurrence of the elements required for Access to Charge. = Therm, maturation, and expulsion histo: ~ Has the fetch area been thermally sttessed fo a level adequate for ‘maturation ofthe organic matter and expulsion of the desited petrsieun product? = Considering the source rock characterise, ae the expelled volumas consistent with the petroleum in place forthe ap? ~ Migration style end ming factors: ~ whats the degree of connectivity between source and carrier / reserve beds, both spataty and temporal. ~ Are the geomety and press ‘migration erection? = Has there field consistent with the required (Applied Petroleum Geoscience cn Bon Ase ' bp South Atlantic charge study * Prediction of regional anoxic events in the south Atlantic from the basis of a plate tectonic framework * Focus on Apto-Albian &Turonian/Cenomanian events « Provided context for agreage rationalisation/access in West Africa and Brazil 13 [Avplied Petroleum Geoscience Applied Petroleum Geoscience (Applied Petroloum Geoscionce [Ecc 9 metatgietc Aptian source rock models SOUTH ATLANTIC APTIAN SOURCE ROCK MODELS Seen L 5 [ope Pita Geasstanes Sie lLate Aptian-Early Albian source distribution | Applied Petroleum Geosclonce lew of exGottepuicc Mid-Late Cretaceous [Applied Petroleum Geoscience fiatcatesiaccanatirte iid tate crotacaou Source eck commas} “Sat 'A ge 0D [Applied Petroleum Geoscience Media 3: Basin Asyie 3D Basin Modeling Basin Modeling deliverables: + Semicegional Svabraphic Framework 20 Temperature rode eta ita) Sabo Seaient Posy, Parmestity, ee Petloum migration and raarvai iting [Applied Potrotoum Geoscience Moc 3 Be Asi b 3D Data & Model Integration o 7 - Visualize all Subsurface Data - Operate on Data from different sources to generate new properties Key Data Integrati Seismic volume & sections Well paths & Log data Fault planes Topographic surfaces (EV models) 3D Basin Model Structural Model Reservoir Model (Applied Petroleum Geoscience Mle: asin Arle a tebp Petroleum Systems: Drilling the Well HSE Pressure prediction ‘Toxic fluid presiction. (delt with in PeST course} Data acquisition ‘sWhat data do we acquire to reduce the risk on the basin or play? ‘*What data to we acquire to aporaise the discovery (the First Appraisal Well)? (Applied Petroleum Geoscience Meal 3:Boin Anais bp Petroleum Systems: Drilling the Well Pressure Prediction Petroleuym systems analysis plays a lead role in understanding the sub- Offset Well Dat surface pressure regime. In conjuction with seismic and petrophysics an integrated understadning of pressure is brought to the driling ‘community to ensure that a safe, cost effective well can be designed and the target reached. (Applied Petroleum Gaosclence ode Bin Anaya 2p Petroleum Systems: Drilling the Well Pressure Prediction + Basin models can act as powerful Integration tools for pressure and ‘fracture gradient prediction, Can incorporate geological risk. + Seismic provides en independent semi-quanttative estimate of the pore pressure. Can help to choose ‘most likely’ basin model, + Petrophysics provides information on mudrock properties {or calibration of basin models All three methods need to be appliod and integrated. Results in robust pressure prediction with appropriate acknowledgement of uncertainty. 19 [Applied Petroleum Geoscience ode 3 Bt Ai Summary Upbp + Organic matter in sediments is converted to kerogen, which is then transformed into petroleum by increased temperature by burial + Apetroluem system involves ~ generation of petroleum from a source migration into a reservoir and ~ accumulation ina trap geometry under a seal ‘+ Understanding the petroleum system provides insight = Risk = Volume ~ Value for our business! (Replied Petroleum Geoscience Module Basin Anas bp Petroleum Systems: Conclusions- Impact — Risk: drawing on an understanding of the charge system —the “supply side” of the prospect risk equation - this considers the risk elements of Source Rock Presence & Potential and Access to Charge — Volume: in addition to the “supply side" elements this requires an understanding of Column Height Constraint - Value: Oily Gas or more precisely GOR/CGR, non-hydrocarbon content ¢.9. H2S, CO2, — Reservoir fluid distribution -Cost / HSE: ~Sate, efficient and low cost diiling (pressure prediction) prediction of occurrence of toxic fluids ~predict, handle and sequester COZ Apple Peoteum Geoscience aay Anal bp Module 4: Play Fairway Analysis + Module content = 4.4 GDE Mapping ~ 4.2. CRS Mapping ~ 4.3 Yel to Find Methodology = 4.4 Building the Prospect Inventory = 4.5 Acreage Access & Licensing + Key Messages ~ Play fairway analysis, using a combination of Common Risk Segment (CRS) mapping and Yet to Find (TF) estimates, is the key BP basin evaluation tool and is widely used to underpin investmentdvestment decisions across our exploration portfolio, ‘Applied Perooum Geoscience secietperter Some bp 41GDEMapping o Content ‘= Gross Depositional Environment (GDE) maps describe the regional distribution of reservoir, source and seal by time slice. Messages + GDE mapping is one of the fundamental building blocks in the CRS process + Used widely across the 8P geoscience community + Usually complimented by a regional chronostratigraphic diagram ‘Applied Pawoieum Geoscience ‘ecul Pay ay Arayie bp GDE Methodology & '¢ Controls — Depth mapping = sopach mapping — Well data and correlation ~ Seismic facies mapping ~ Stratamps/coherency ~ Fieldwork © Chronostrat diagram * Regional cross section ‘Applied Petroleum Geoscience GDE impact # Regional distribution of: = Reservoir — Source ~ Seal « Input to Basin modeling (eg Temispack) * Constraints on Chronostrat diagram * Play fairway definition ‘plied Petroleum Geoscience iat in so kbp ME Regional Play Fairways a ft] AP11 (Asmari) APBu (Burgar | AP8I (Zubair) } AP? (Arab) i [eae | APs (Khuff) | AP1-5 (Palaeozoic) ‘Applied Petrlourn Goose Widale East Play Systoms | Soa™ WLeIA __W.DeseaT_WEST URNA ZAGROS ‘Applied Peuoieum Geoscience Moule Phy try Anas b Upper Jurassic (AP7) stratigraphy ‘Applied Petroleum Geoscience oz ct tay a iebp Upper Jurassic (AP71 aenpooano Applica Petroleum Geoscience ‘ote a acne hee Upper Jurassic (AP7u) GDE ‘Applied Petroeum Geoscience GDE legend ae Noo-Marioe Coarse Clastes Marginal Marne Costes Claes (Shatiow) Marine Coarse Clases Shallow Marino Fine Clases oap Marine Fle Cu Beep Marine Carbonstoz ‘carvonates with Evaportes fe ee Cl fea) ea te) vapor Stipes incicate mixed (ores e shallow mat furbonats pregiacing over doop marine fhe ‘Applica Petroleum Geoscience ibe +P tary Rasta 4.2 CRS Mapping Content + Common Risk Segment (CRS) Mapping Messages + Reservoir presence & effectiveness + Seal presence & effectiveness + Charge presence and effectiveness * Composite CRS ‘Apped Petru Geoscience sean ny rrr assis 2"sbp Play Fairway Analysis _ o * Overview: can’t map all prospects + Compare Sector 0 and Sector 4 opportunities + Exploration Strategy: Focus Exploration on High- Value Play Fairways * Block Evaluation: basis for acreage rationaiization + Improve success rates by Risk Reduction ‘Appled Peiroloum Geoscience eae yoy ana kbp What is a Play Fairway? * An area defined by the present day maximum extent of potential reservoir facies, with some possibility of a regional caprock and petroleum charge = Traditional established using reservoir definition; however can and should be modified where other factors are more important ‘Appiled Petroleum Geoscience cata nay Art bp CRS: Defini G + ORS: Common Risk Segment + CCRS: Area of Play Fairway with common overall pay risk (CRS) ‘+ PEN: Probability Envelope ~ An area within which some YTF (Yet to Find) is perceived ~ Similar Prospectvity = Trap typos ~ Prospect risks ~ Petroluem phase/qualty ~ Consirucied from CCRS'S (composite common risk segments) Specifies area + stratigraphy ‘Applied Petroleum Geoscionce ecto sPlay tay Anais Pebp Methods for Building CRS Maps + Develop sequence stalgraphi framework ‘+ Create Stuctre and tsopach maps fr each sequence + Build Gross Depostional Environment maps + "Map" Distrbuton of Potential Reserva Facies ‘+ "Map" Distbution of Effective Reservoir ~ Prinary seaimoniary feces = Compostion & provenance = Biageneiccterts = cverressue ‘+ “Map” Distrbution of Effective Seals + Predict and "Map" Petroluem Charge ‘+ Compile into Common Risk Segment maps and composite CRS maps ~ > Summarize play risks ‘Appied Petroleum Geosclence Mode 4:Play fairway Anaiysis bp CRS Methodology _ 2 = “High” Risk = “Moderate” Risk = “Low” Risk ‘ppied Petroleum Geoscience ete enn Rosie bp CRS Approach to Regional Fairway Analysis ‘Applied Petroteum Geosclance ‘ony tly A Arab Play Fairway ‘ARAB PLAY FAIRWAY ilebp ‘opted Pesteum Gwosctece Arabs Play Pattway: Reservoir Presence & Effectiveness CRS bp ‘pale etrleum Geosetrastean Poros / Depth plot (ater XOM) ie bp Porosity/Permeability vs Depth ‘Appiea Peroloum Geoscience ‘Sot rye Seas £pbp Reservoir Effectiveness ‘Apple Povoteum Geoscience z AYabP iy Fairway: i'sbp Seal Presence & Effectiveness CRS ‘Applied Petroleum Geoscience by Arab Play Fairway: Oil Charge CRS o : -Applod Petroleum Geoscience ‘owule4:Pny aren Analysts. #ebp ice Presence: Hanifa: SourcesRachisapacky « ‘Appled Petroleum Geoscience ito may Anapsis” Source Maturtyetfeciveness oS bp Temperature/D& ptr plate oe Temperature Degrees C. 0.0 50.0 100.0 150.0 200.0 250.0 Depth (m) lec real aca Sn i se) febp Hanifa Source Matur ‘Applied Peroloun Geascionce Iolo Phy tray Arete Arab Play Fairway: Gas Charge CRS bp ‘pated Pevteum Geoscience constr tana Lop Arab Play Fairway: Composite CRS for Oil ‘Applied Pevoteum Geoscience ‘eae ey tarway Anse fe Arab Play Fairway: Composite CRS for Gas Applica Petroloum Goosclonce 4880°S1 DIESVeries by Composite Common Risk {DP Segments ~ Central and Northern North Sea Green Yellow Ree Discoveries Discoveries Frtros 46 Tests 36 Tests 24 Tests 21 Discoveries 46 Discoveries 3 Discoveries 4:24 Success rate 4:22 Success rate 48 Success rate ‘Appied Petroloum Geoscience rotate ty Anas Things change. i kbp 4-D pressure modeling condemned area; 2D Themispack modeling (+ 1.6 billion BOE discovered!) suggest much lower risk! 44 ‘Applied Pertoum Geoscience Mozule 4: Pay Farway Aoalss 2bp 4.2.1 Introduction + Problem: To select a location for a subsea drill centre at an early ‘stage in a field evaluation in order to plan an environmental survey of the seabed, + Selection of this drill contre location is dependent on: = Soabed Features ~~ Overburden Hazards = Reservoir Objectives + Common Risk Segment (CRS) Mapping was used to combit geographic analyses of these elements ‘Applied Pebsean Geoslence ‘ee Fay arey ana bp Seabed Features CRS + Criteria: sy feomammemer SS + Rationale: + Avoid areas of high seabed ‘dp (possible Touts) + Avoid args of active Sediment transport or eponiton Blue line shows field outline ‘Appts Petroleum Geoscience Module 4; Play Fenway Anaiysis Pa bp Overburden Geohazards Input + All levels of the overburden were investigated on 3D seismic to identify possible shallow gas and other geohazards + These were combined and were used to create a ORS layer for ‘overburden geohazards: ‘Appia Petroloum Geoscience Mosiie 4: Ply Falway Anais PE bp Overburden Geohazards CRS + Rationale: ‘+ Actually a combination em of CRS maps made at 4 Blue line shows field outline ‘Applied Petrotcun Geoscience Module ¢: Pay Faiway Anas #'sbp Reservoir Objectives: + 2 reservoir models; a base case and an upside case with an easter extension + Conceptual development well locations were picked to enable development of the field in both cases. + Amaximum offset for the planned wells was chosen based on drilling track record Aepiet arctum Georcnce ed ay Peay has esp Common Risk Segment Mapping Distance from Planned Wolle: Base Development Case + Geter: + Rationale: 1+ Wet to be hortzontat + Minimum 300-750 Steet to reservar ‘niy required + Maximum offsstto 1D ‘500m, 3800m prefered forcost + Commentsissues: + Wall locatons aot {tnalsed but st Usefutindestor * Sanya Blue line shows field outline ‘Appi Petroeum Geoscience Mode 4 Ply Faway nab #tbp Common Risk Segment Mapping: 7 Distance from Planned Well 3: Upside Development Case + Rationale: + Wels to be horaontal 1 Migoum 200-7500 Offa to reserve entry «nos reauea + Maximum ofsetto TO even ered for cost + Comments/issues: + NoDeuitea wet : Design yet Blue line shows field outline ‘Applied Petrfeur Geoscience ety My saat bp Common Risk Segment Mapping: ‘Combined Risk Maps: Upside and Downside Cases ‘+ Two location wore identified as potential locations that could fit the criteria for both cases (red and blue boxes) + Atthe time our preference was for the northern location (red box) as it avoided driling through the east-west bounding fault (another CRS layer not illustrated) + Later work showed a high cost for this, the risk of drilling through the fault was accepted and the southom location was selected (blue box) * The development has not gone ahead for economic reasons ‘Apuiled Percleum Gooscience Modute &:Phay fairway Analysis: isbp 4.3 Yet to Find Methodology Content + ‘Top down’ and ‘bottom up’ methods of deriving yet to find for a basin or play fairway Messages + Top down ~ Field size distribution ~ Creaming curves + Bottom up ~ Sum of PI x ORS risk * Applications = Driving investmentidivesiment decisions Teen etry toes iiybp Yet to Find — What? + Area + Stratigraphy + Range of Volumes, if successful + Risk- chance of success * Pool size distribution ~ Equivalent to mean volume if successful * Petroleum Type and Quality ‘This methodology describes both mature and immature faiways/basins ‘Apped Pavoloum Geoscience feeset pare ne S Why doa Yet to Find _ 6 © Basis for investment and business decisions * Converts technical understanding into hydrocarbon volume and VALUE © Allows us to compare opportunities with a basin and across the Business ¢ Technical case drives the Business decisions ‘ppfed Petroleum Geoscience ‘ocelot try Aas Yet to Find (YTF) Met ¢ Estimation, not calculation * Top-down & Bottom-up approach * Based on technical understanding = CRS ~ Drilling history ~ Detailed well statistics ~ Understanding of analogs ~ Comprehensive Prospect Inventory (Pl) ‘Applied Petroleum Geosclonce tai tay arate bp Bottom-up YTF is Derived From.. o Area of PEN x Prospect Density @@f x £ 6 CRS Risk Fes x @ \YTF = VOLUME CONTAINED Areal Richness Bottom - Up © _INSUCCESSFUL PROSPECTS| Applied Pevolewm Groscence ‘ty tay Aen : S$bp Top Down Yet-to-Find No. of Pools Discovered Poss 5S, > Bool 1 10 ‘100 1000 i Appl Petotoun Geoscience Meet yey ae iebp Play Fairway Maturity _ GoM shoit=$ 29 Gow ows so i i F sectortr | Sector sector? 7 Scion Orting | To ets 5 your of| FarherExptoratin Boge | aouceessal lye | ad value buts | spy Perseom Gecsienee seit cry tay ana iebp ‘Classic’ Creaming curves ‘Apples Peroloum Geoscience ie hy tomy ae b Play Fairway Value o : Sua Ru el | Lrorhe) Co eed AGREED VALUE VOLUME ‘Apiiad Petroleum Geoscience ae cry ray ana bp Acreage Rationalization o Strategic Value o 2 07510 10 = Core BP Net Value 5 (unas) = Marginal/Review = PoripherallDispose ‘Appia Petroleum Geosciencs ee aay ny hos ; ; ftbp ‘Applied Petroteun Geoscience elated ony inary saaysie app Acreage Portfolio Management ee Post Oryx EB Ce eee Doe bei ot} ki ‘Applied Petroleum Geoscience eda tina Ansale by UKCS:1991-1993 Capex v EMV by Fairway a : “7 TF eMy (8? Net) eo 91-93 EMV (BP Ne EMY ao (sm) - es © ae ee ton PA DR ane Te Tae Tm eS oot CAPEX (sm. “ “Applied Petroleum Geoscience tele tony teway seats bp Play Fairway Values used in Two Ways 1. Block Evaluations + Calibrate YTF v prospect inventory + Derive values for BP equity blocks + Combine with strategic issues: infrastructure etc. ‘+ Rationalise portfolio 2. Exploration Strategy + Total net BP fairway values used to focus exploration spend & program ‘Applied Petroleum Geosclence oan ay iy Rae bp 4.4 Building the Prospect Inventory Content ‘+ Mapping prospects and leads. Building a summed risked inventory to derive a ‘bottom up’ yet to find Messages + Prospect definition + Trap elements + Prospect risk ‘Building the PI ‘Applied Petroleum Geoscionca ‘Modilo 4:PIay falrwsy Anatysis a bp. What is a Prospect? « A prospect is a potential petroleum accumulation * Described and risked in terms of: ~ Trap ~ Reservoir ~ Presence — Effectiveness ~ Seal ~ Presence ~ Effectiveness = Charge ~ Source Presence & Maturity ~ Access ~ Fetch/Focus ‘Jonled Petroleum Geoscience Mente ayia bp Elements of a Prospect Example: Trap Definition Tilted Fault Block Trap Reservoir Presence & Effectiveness ‘Kecess, Focus & Fetch Source Presence & Maturity ‘Applod Petroleum Geoscience Moa «Pay tara Ants, Who, What and How Integrated team of Geologists, Geophysicists, Petrophysicists, Geochemists, Biostratigraphers, Engineers, Managers... working with seismic, well logs, bugs, potential fields, outcrop data, local governments, partners, statistigs, ot «fo determine ranges 0, tisk and. reward, economics, and strategy... The PRIZE! ‘Aepled Pevolem Geoscience toi yy aye bp Trap Elements a + Traps may be structural, stratigraphic, or a combination of many elements * Structure SS ~ Fault ™ =e ~ Salt ~ Fold, anticline, ete. + Stratigraphic ~ pinchout ~ ttuncation ~ erosion ‘Angles Peirooun Geoscience today try Rois f'sbp Trap Maps * Trap maps describe the main trapping elements ofa___ prospect ame > Muttiple trap ‘models required because of + uncertainty of upaip trap element (Dip or Fault closure?) ‘plies Petroleum Geoscience Meche Py rey oats, bp Prospect Categories + Notion (N): Potential prospect has not yet been identified, but may exist based on regional analysis and pool size distribution * Lead (L): A poorly defined trap geometry with low confidence on risk and reserve estimates * Prospect (P): A defined trap geometry which is, expected to become a drillable prospect * Drillable Prospect (DP): A prospect which requires no further technical work and has approved well locations ‘Applied Petroleum Geoscience Motley lave seats Psbp Drillable Prospects ‘+ 3 categories of "Drillable Prospects" = pot Positive EM (makes enough $ to reach BP hurdes) = poz Postive NPV (unrisked value), negative EMV (risked value) = PDS Negative NPV & EMV + NPV = Net present value ~ The net sum of a series of future cashflows discounted back to the present day + EMV = Expected Monetary Value = The EMV of a decision combines to velues and risks associated with both success and failure of a project. itis not a measure of actual value ‘Applied Petroleum Geoscience oeula Pty tray Arayee When to say when * Questions to ask yourselves: ~ What are the critical risks? ~ Is our work program addressing the critical risks? ~ Do our peers and managers understand the risks and. uncertainties for this prospect? ~~ Would | spend my own money on this? = Does this project make economic hurdles? * When to “stop” technical work ~ Wil this work move the prospect to another ‘risk bin' (reduce ‘or increase the risk)? ‘Applied Peroteur Geoscionce Moc 4S twa kite £pbp Prospect Risk * Can be obtained through a numerical calculation ~ Probability of success (out of 1) obtained by risking trap, reservoir, charge and seal elements ~ Risk individual prospect elements and multiply + Represented by a range of statistical values ~ Ps, statistical mean, most likely, Pas — Usually Monte Carlo simulation * If Sector 0 (new play), must factor in play risk ‘Appiled Petroleum Geoscience ‘et yey tp How to Represent Prospect Risk Precise Numerical Value Relative Risk Bins Reservas (presence an Risk tectvones) vate eine ee 9 > 800 MMBOE {Presence and ® oo 400-800 MMBOE| Traps 7 : 200-400 mmapoe| © Risk of .20 in § chance of success for a certain aon Weuboe volume ‘Applied Petroleum Geoscience tay aes Re bp Building the Pl o fe WE ogee] ASS, | altmee [Resenes [SERS [am | 5 Car] me) eaters’ [seamen eats ‘Applet Petteum Geoscience Beate # rten try Press £%bp 4.4.4 Prospect Risk Summary Sheets: trap & seal [F] Container / seal presence tisk — probability that: — the container in the prospect volumetric model is correctly defined both spatially and geometricall all the sealing elements required by the container model are present Column / seal capacity risk ~ probability that: ~ a column of petroleum, of the composition and height required in the prospect volumetric model, can be retained by all the sealing elements in the container model ‘ApledPatroloum Geosclence ote 44 Epeaon Fskng Press #ebp Prospect Risk Summary Sheets: charge + Source presence & potential risk - probability that — a source rock is present in the fetch area considered in the charge access model; the source rock potential (thickness and quality) and fetch area are adequate to expel the volume and composition of petroleum required in the prospect volumetric modet Access to charge risk - probability that: — the fetch area containing the source rock defined under “Presence and Potentia” has delivered petroleum, of the volume and ‘composition considered in the prospect volumetric model, to the trap. Delivery considers: + sear otcaveionto portum the ements: hema sees, matuoton andes + migason om source tap (he ements verizal anlar nigaion, geomet, ‘ApptedPetroeumn Geoscience edute 4 Expiration Fisting Process £%bp Prospect Risk Summary Sheets: reservoi ® Reservoir presence risk- probability that: ~ a reservoir is present whose thickness and distribution within the container are consistent with the prospect volumetric model © Reservoir deliverability risk - probability that: ~ the reservoir thickness within the container has adequate permeability and lateral continuity to deliver, and sustain at commercial flow rates, petroleum of a composition (i.e. viscosity) considered in the prospect volumetric model ‘opted Pesotoan Goosctence ‘Bate expaion Rahn cess feb Prospect R : “top-down” approach + Detection approaches attempt to evaluate a prospect “looking from the seabed down" using technologies such as — seismic attributes - hence “Direct Hydrocarbon Detection” and — seep detection + "Top-down" analysis does not attempt to explain how the accumulation originated; hence the need to perform an additional, independent “bottom-up” analysis of the Petroleum System “spies Perctam Geosenes one te ns css Eebp Prospect Risking: “bottom-up” approach + Petroleum Systems analysis attempts to evaluate a prospect “from the bottom up” using technologies such as: = structural analysis ~ sedimentology and stratigraphic analysis — petroleum systems modeling (integration of geochemistry, thermal and fluid flow) + “Bottom-up” analysis is most powerful when performed independently of the "top-down" detection approach; results of the two independent approaches then need to be compared on a risk matrix as shown in the following slides ‘Appies Petoieum Geoscience Ace 4 Cxporton sng Process febp Proforma prospect Risk Matrix Pre-drill risking Post-drill appraisal risking Applied Petroleum Geoscience ocular ay Ante £bbp 4.5 Acreage Access & Licensing Content * Series of acreage access and licensing examples showing how financial commitment, timing and process maturity vary around the world, Messag * Variety of cases ~ Kazakhstan ~ Nigeria ~ Colombia ~ Gul of Mexico = Norway Vietnam “enlied Peon Geoscience Mose Py rey Ane bp Acreage Access - Options * License round ~ $ bidding e.g. GoM — Work program bidding e.g. UK North Sea ~ Bonus + work program e.g. Angola * Out of round ~ Direat negotiations with host government * Farm-in ~ Carry lease holder through work program to gain interest * Take-over ‘Applied Pevroloun Geoscionce Note etary Anse febp Caspian Pol Tel Pela Gascoce tt oy yw frbp Kazakhstan Access - Learning as we went along = "New Geography" = Opportunity ~ Polis a big issue ~ Further complicated by break-up of USSR * Abig prize was sought ~ 3 candidates pursued ~ 2 feld developments and 1 exploration y ‘= Big oil + Unstable political environment > Need long-term approach — No legaliiseal framework for foreign investment — New nation status gave rise fo unusual priorities in negotiating deat ~ 7 years from first visit to region to signature of a PSA | “Applied Petroleum Geoscience Modo 49 ney Anais Kazakhstan - Stages taop * Regional screening for opportunities ~ Within FSU; then within Kezakhstan ‘+ Governments (& interested parties) control access to opportunities ~ Pointed us towards difficult developments frst (Governments’ view of projects and their assumptions of what we wanted v. different ot outs) ~ Kazakhstan, Azerbaijan & Russia all handied FOCs differently + Partnerships ~ The BP Statoil Alliance ~ ‘Kaz'n led what Norway had achieved from Is offshore -Aliance helped gat us ~ "Forced marriage" - several other oll companies = Finding and keoping to an agreed partner pasion wae a nightmare (diferent corporate agendas, strategies and commercial pres involved) ‘Apped Peirofoum Geoscience Mosul Py tray Aste i ag OP Nigeria deepwater access + Signature bonus, plus obligatory financial andior activity commitment. plus profit sharing agreement = Signature bonus OPL 213 $30milion = OPL 217 $2miion ~ OPL 218 $10milion ‘+ Activity commitment - $54million per block (non specific, 6 years) - since negotiated down to $74million for all 3 blocks + BP-Statol alliance originally had 100% equity, so carrying all the exploration risk and costs - Nigerian state keeps upside benefits through PSA “Alia Petroleum Geoaclenca Ite Pn ty Aoi kbp Nigeria deepwater access * Royalty - sliding scale based on water depth (from 16.67% from 0-200m down to 0% in depths greater than 100m) © Petroleum Profits tax - currently 50% Profit sharing - sliding scale = 0-360mmbb! 20% govt-80% alliance — 350-750mmbbbl 35%-65% ~ 750-1000mmbbi 45%-55% ~ 1000-1500mmbb! 50%-50% = >1500mmbbl — 60%-40% “appiled Petroleum Geoscience eeceeaytnesy aa bp Colombia - access to exploration acreage * State company Ecopetrol controls access * Some areas reserved for Ecopetrol - remainder is available for offers from private companies * Bid rounds not widely used, increasing tendancy towards production share bid auctions on individual prospects « Mixed sector of Association Contracts with private companies assuming exploration risk, new Shared Risk Contracts and direct Ecopetrol activity Tepe Pei Gace tty ay np etbp Colombia - exploration terms + Production-sharing Association Contracts are standard 6 years exploration term, total duration 28 years ~ work commitments - seismicivells private company assumes exploration isk, cost reimbursement of Ecopetiol share end 50% back-in in event of commercial discovery F-factor controls production share - protects state interest in the event of a large discovery + Colombian terms widely regarded as uncompetitive at present ~ Ecopetrol incentives announced Oct 97 - frontier basins, small fields, modifications to R-Factor, longer period for gas ete ~ Increasing debate on need to improve terms to maintain Colombian production/self-suficiency Tepe Pena esscnce tty my aaa tsbp U.S. Gulf of Mexico Deepwater - access to acreage + U.S. Government controls lease activity in waters >10 miles offshore ~ Acreage Divided into 3 mile x3 mile tracts of land = Lease teums range from 5 years (< 400 m of wate), 8 years (400 m- £900 m of water) and 10 years (800 m of water and greater) + Annual Sealed Bid Rounds: ~ Central GoMt Lease Sale in Spring ~ Western GoM Lease Sale in ate Summer ~ Eastem Gol Lease Sale anticipated in 2000? (none since 1987) * Bids awarded to high bidder ~ No work program required ‘Applied Petroleum Geoscience oda Pay fanny hess bp U.S. Gulf of Mexico Deepwater - Bidding » Federal Goverment collects lease rentals, bonus, and 12.5% production royalty share + taxes + MMS (Mineral Management Service) reserves the right to reject bids based on *MROV" * 4 companies on “Restricted Bidders List” (BP, Shell, Exxon & Mobil) and not allowed to bid together ~ Once bids are awarded, companies can work together ‘Aad Petroleum Geosclonce oat ay any Aaa eebp Norwegian Licensing Policy + Aim to have a continuous and steady pace activity level (exploration, development, production) + Want to see all play possibilities explored + Want to see maximum oil and gas recovery © Demand safe and “green” operations ‘pploa Petroleum Geoacionce cu ey ey Arse S'pbp Norwegian Licensing Policy * Staged opening of exploration tracts (Norway is Sector 0 to 2) + Key blocks awarded early, some “carrots” kept + Mix of high and low risk blocks (eattier linked) * Bi-annual licensing rounds = Opened areas indicated by NPD = Companies nominate blocks = Round announced = Application ¢. 6 months ater ~ Award after a further 6 monthe “Appod Petroleum Geoscience ode yy hte £5pbp Norwegian Licensing Policy Group applications discouraged (until recently) No bidding as such Award is based on technical application = Geological understanding — Technology (e.g. deepwater experience) Politics important = Who's turn — Track record (Norwegian and international) -“good or bad guy” ~ Commercial strength ‘pied Petroleum Geoscience Mode olny Als bp Norwegian Licensing Policy * Negotiate over work obligation (wells/seismic) « 10 years initial period to fulfil obligations * 50% relinquishment after initial period * 30 years production period (licence area fee paid each year) ‘Applied Petroleum Geoscience Noa yay Anise ¥bp Norwegian Licensing Policy * Cost in application is seismic data and manpower * For the 15th Round companies spent 5 - 20 - 35 mill $ + Work obligation typically 3D seismic and 0 to 3 wells ‘Applied Petroleum Geoscience oi Pi tay Arle bp Vietnam o + Pre-1986 politically closed = Reunification of country in 1975 ~ Invasion of Cambodia in 1879 ~ During 1980's, no Western involvement in E&P in Vietnam. US embargo oniy lite in 1994 by US Congress + Doi Moi (Open Door) policy announced at 1986 Party Congress + 1988/89 - first licence round in North and Central Vietnam ~ BP access Da Nang acreage; acreage relinquished 1995 (4 wells) ‘+ 1988 - ONGC accessed Block 06 in Nam Con Son Basin via a special Government-Government deal “piles Peoteun Geoscience ety any Anata fe bp Vietnam 1990 - BP and Statoil Alliance formed; Statoil join BP in Vietnam 1992 - second licence round in southern Vietnam. The Alliance access Block 05.2; AEDC/Teikoku access Block 05.3 1992 - Alliance farm-in to Block 08 = ONGC relationship buit by BP mapping in the Himalayas ~ ONGC needed partner to pay for further exploration after poor well results ~ Alllance recognise block has significant potential 1993 - Alliance farm-in to Block 05.3 to build position “Applied Petroteum Geoscience edu an taay kote Vietnam " ‘Moshte 5: Resonor Crarctarsaton 5.1 Seismic Attributes Applied Petioloum Geoscience £Fbp Content * Seismic refiection theory * Seismic inversion * Synthetics and VSP's, * AVO + Lithology and gradient impedance volumes (crossplot techniques) + Net pay estimation from seismic * 4C and 4D Seismic Messages ‘+ Many measurement can be taken from seismic data, We need to know what types of seismic analysis is available to the geoscientist, how can it be used and what does it mean. Applied Petroloum Geoscience ‘Nexate 6 Reson Characterisation Seismic Attributes * Wouldn't it be great if we could see producible hydrocarbons before drilling * We can never (or only very rarely) do that, but ~ we can use seismic attributes to reduce uncertainty, and therefore increase our chance of finding oll and gas Geophysics. Mathie 5 Reser Charactarsaten How to make attributes work ‘Applies Petroleum Geoscience f'sbp INTERPRETATION FUNDAMENTALS CALIBRATION AND APPLICATION ‘What causes Tying geological + AVO reflectivity stratigraphy to the + Inversion seismic section - + Not pay estimation VSP, Synthetic seismogram Seismic scale and resolution Calibrating seismic response to lithology, porosity, fluid, pressure etc. - Rock Properties studies Solsmic Modelling ‘Applied Petroleum Geoscience b ‘Mode &: Resor Characiorsaton 1p Seismic attributes - fundamentals © Why do we get seismic reflections? = Reflections occur at interfaces betwoen strata with differing acoustic velocities ¢ What controls the strength of the reflection? ~ the acoustic impedance contrast Googie = ALA /p,"Rhob/ Vp,"Rhob, + Al = pore filing fluid has no effect ~ the rocks stiffness (dominated by framework) is key < determinant of shear velocity 415 Ea ea fentraem oe t'gbp AVO - Compression and shear - fluid ID + Fluid effects are seen in 0 p90 compressive but not in shear velocity variations ‘* Greater shear component in long offset data «2.9. near offsetis stack of geophones 1-24, far offset is stack ‘of geophones 25-48 + Rocks containing hydrocarbons are more compressive than brine beating rocks. Seismic amplitudes from larger offsets are more closely related to the compressibility of the rocks and hence fluid effects are clearer on far offset seismic data szete Perien Goosoerce Paces ineeheeriil ie bp AVO - a new dimension pie Ya Pr Yar Yar Pa Geometric Relationships (Snell's Law): sin®, sin) sing. sings Yn Ye Yu Ya. 16 ‘Applied Petioieum Geoscience Meche & Resor Charactosaton Amplitude Variation with Offset (AVO) ‘* AVO behaviour of sand/shale interfaces can be broadly divided into three classes = class 3, bright amplitudes at all offsets ~ class 2, dim at near offsets, bright on far ~ class 1, bright (reverse polarity) at near offset, ddim on far ‘+ Most basins show a progression from class 3 to 1 with increasing depth + AVO effects can be studied by analysing common depth point (CDP) gathers or, now more commonly, from common angle stacks. Applied Petroleum Geoscience ‘Medue Reservar Charatasatan bp Top Sand AVO Response Amp Classification after Rutherford and Williams ia Class 4 ~ Positive decreasing with Offset [sso Class 3 ~ negative ~ getting more so Note - the decrease in amplitude with offset Because sands have lowor Poisson's ratio than shales and hence a negative AVO gradient 47 ‘Aaplied Petroloum Geascience Motaie 5 Reser Charatensate AVO - Fl Discrimina’ iiebp When fluid substituting from brine to hydrocarbons the following generally hold Vp decreases p Decreases Vs increases slightly Vs? stays equal above and below the contact Thus a good fluid indicator is to look for changes in P-wave Reflectivity which are not associated with large changes in S-wave reflectivity Applied Petroleum Geosclence Mathie 5 Reson Characterisation Sand Body AVO Responses Top “Soft” aR eg. Brookian| j | i Decrease in AL& PR Fncrease in AL& PR AI PR eg Jurassic “Hara” | AI PR nate Increase in Al, Decrease in PR. | ee Decrease in Al, Increase in PR 1e ee more tebp Reson Charsctansaten CMP Gather Showing Class 3 AVO ites tease Soe ieee AVO - Near and Far Offset Stacks Class 2/3 AVO Anomaly Near Far Applied Petoleum Geoscience b ‘te Recor Chwactorsten Pp AVO - Offset Stacks Applied Petroleum Geoscience b ‘Mode 5: Resorvor Characlerisaton Pp Angola Seismic Volumes near far Gradient... Ea Modul 5 Resort Charctasation AI/GI Crossplotting + Conventional stacked amplitude, or Al analysis is typically poorly constrained, using one attribute (amplitude or Al) to describe the reservoir Applied Petioleum Geascionce £'ebp + AVO provides a second degree of freedom, that can in some circumstances be used to produce independent images of reservoir quality and saturation * Conventional AVO classification (Ciass 4, 2, 3 & 4) does not characterise the ability to separate lithology and fluid IMoakte Reserva Chametrsaton ‘Appled Petroleum Geoscience f'fbp Glossary - Impedance or Inverted Domain l= acoustic impedance ‘The impedance equivalence of zero offset reflectivity El = Elastic impedance ‘The impedance equivalence of a finite angle stack NEI = Normalised Elastic Impedance ‘The same as Elastic impedance but with values scaled to be similar in magnitude to Acoustic impedance FEI = Extended Elestic impedance : ‘An impedance equivalent of any linear combination of intercept and gradient term, i. Fl= Lihological impedance, Fluid Impedance Types of EI de: 196 lithology oF fluid changes GI = gradient impedance inverted gradient stack ~ used to create EEI or LI, FI 24 Applied Petroleum Geosciancs Matte 5 Reserva Chanet ee bp GI/ El etc. + From basic 2-term AVO equation R= A+ Bsin2(0) Reflectivity Impedance. A AI acoustic impedance B Gr gradient impedance RE) er elastic impedance ea) eer extended elastic impedance EEI =AIcos() *GIsin(x) (Whitcombe et al, Feb 2002) Applied Petroleum Geascionce gio Reena Charcesaten #$bp AVO Gradients - Fluid and Lithology Discrimination ra 4 a * Exploration application from Basin A Petro physical log data is used to deve a Gracient Impedance log which s then fitered to the bandwidth ofthe seismic. ss ; & 2 atu! + From the Acoustic tmpodance and the Gradient impedance the Fluid Impedance canbe calculated, ‘Moriie & Resoror Chactonsaten Amplitude vs. Offset - Al/GI crossplotting Applied Petroleum Geoscience bp jae evcten eaten =e distinguish fluid from lithology on nal, Gtspace conventional near- and far-offsel stacked dala. + Integration of global, or preferably local rock property data can alow shale, brine- filed sand and hydrocarbon-filed sand to be separated in the inversion domain, Gradient impedance ‘+ BP has developed calorated proprioty “Reousti mnpedance are algorithms to allow rotation of inverted dala to differentiate lithology response from fluid response in AVO gradient ‘An excallen! way to describe the rock impedance (GI) and Acoustic impedance _—reperties ofa reservoirs vie en (A) space. ree ‘Appi Petolaum Goasciance #ebp othe 5 Reson Charsctation Real Data Depth eres) AIGI crossplot vs. depth (provided by Pat Connolly) 2 ‘Appliad Potroleum Geoscience ‘Mochle &: Reserva Charectersaton Highlighting fluids Ball stack, with green and purple points fiom ‘he erossplo overla ‘Fluid? projection, obtained from 1BO#0.5B1 (ie. A¥0.5B). Note the events shoving up on this section are the same as the green and purple events highlighted onthe section on the lef. ‘Appliod Petroleum Geoscience Modite 5: Reson Cherctanaton Highlighting lithology Full stack, with preen ‘and purple points from {he ermssplot overlaid “Lithotogy” projection, obtained from B0-2.0°B1 (ie. A-2.0B}. Note the ‘events showing up on tis section ‘ate the same as the ereen and purple events highlighted on the section on ade esr tne 24 sop Applied Petroleum Geoscience ‘Medte5 Reson Charstersaton Co-ordinate Rotations (Courtesy of Pat Connaty) x max. contrast max. contrast min, contrast oil/brine sand oil sand/shale oil/brine sand aa aan pun oye Fr i i* i Lis ‘iia Fea areca SEH spp ‘Applied Petcieum Geoscience Reson Fluid versus Litho! fluid impedance lithological impedance 25 ee! feel atin Geers f'sbp Why both lithology and fluid ? Lithological impedance Fluid inpedance EEL tuned to lithology BEI tuned to fluid + Enables us to image channels & the fluids within the channels. Impedances are averaged over @ 25ms time gate hung from the Top Reservoir of the Fotis ied, atile 5 Reser Charctarsaton Applied Pettoioum Gocseionco é¢bp Fluid Indicator - Schiehallion AGI trom Schichalion core Flu angle Chi= 20segrees (approx) Theta = STdogeoes scone m0 ow ng balan sh pega or cl xenon ei atic tn “190 eo hn bean wccean poor ap 26 30d Palm Goecco Ete Res Scetetin bp Direct Hydrocarbon Indication Sage een re Ae ee + Conventionsl dala down @ channel or depositional body ax shows the complex lithology an the ampitude signature suggests charge. However, there is significant Fisk the amplitude strength is reflects porosity and nat pay + By stacking al he aces win a depositional body nt sag vera! section ime ox dept constant Strlaces auch as al events a bance. Thais a Key exloraion rk rede oa, Flat spots clearly Imaged Volume carries on downdip. in Peeler Gaels Meeea i col Croce febp Attributes for exploration risk reduc’ ‘* There are two general approaches to exploration risking which may be referred to as “bottom up” and “top down’. + Bottom up attempts to understand each of the elements of the petroleum system from source to trap and assign a risk to each, + Top down is a direct approach using seismic attributes to “directly detect’ the petroleum. Within BP Amoco the usual approach is to attempt bottom up and then to incorporate top down if applicable - don't just use seismic attributes, the basics must be right as well. ee Prorvay bebo bp AVO Summary Use of AVO gives the opportunity to separate different effects in the seismic data Any linear combination of intercept and gradient can be thought of as a projection characterised by the angle ¢ ‘There is a simple mapping between c and q The AIGI Crossplot is the recommended way of viewing the potential benefit of AVO because = of the direct ink between the rock properties and how to optimally explil them seismically = Anomalies are better separated in the inverted domain Practicalities may mean that different projections give clearer results than those predicted directly from AIGI orossplotting 26 Appia Petleum Gooscence ‘ei Resonor eertrslen #ebp AVO Impedance Summary * elastic impedance equivalent of Al for non-zero q + Gl is impedance equivalent of gradient + AIGI crossplot is impedance equivalent of AB xplot + EEI is impedance equivalent of any coord. rotation + optimum projections can be designed in AIGI space + don't forget the approximations !! Applied Petroleum Geoscience "kbp ‘ockte Recon Charsctarsaion Net-Pay Estimation * The thickness of a layer with different elastic properties from the surrounding layers can be estimated directly from the seismic data. If the layer is pay (sand) encased in non-pay (shale) this is known as net pay estimation. + The main difficulty lies in trying to remove the interference and tuning effects of the wavelet. Certain inversion algorithms provide the best way of doing this. * The results can be calibrated to existing wells (best) or self- calibrated (often not too bad). 20 Applied Petroleum Geoscience Mode 5: Resenor Cherecensaton Net-Pay Correction well tie amplitude i + inconsistent before correction + consistent after correction (courtesy of Pat Connaiy) Applied Petroleum Goosclence Module 5: Resor Charactosaton Calibration Problems 3941 4140 5971 4876 4676 5450 4059 4593 4878 =15% to +28% I! {courtesy of Pat Connaly} cig gpd Potcloun Geoscience eiies Resencl Onnasoaion iEbp Calibration for net pay from Al LAT Wwe WELL ‘AL DERIVED Fron | ‘Smut [rLvaneo sow] SEISMIC AT WeuL ‘Shown on the lefts the acoustic impedance (Al) computed from the sonic and density fogs which were acquired in the MC 27 - BP #1 well. The middle trace isthe result of appying a 0-50 Hz filter to the Al. On the right Is tho Al derived from the seismic data atthe well. Note the similarity in the shaded sections. After integrating to find the shaded area under the curve on the seismic and calibrating to the net pay inthe wel, the seismically derived Al data can bo sed to predict net hydrocarbon volumes. ~}20 Applied Petroleum Geascience febp Module 5: Resort Charactataton Converted wave (4C) seismic * recording of the reflected shear wave converted from an original compressional source. In marine settings, requires an ocean bottom receiver array * as shear wave propogation is unaffected by fluid, 4C seismic can help in tough imaging situations, such as under gas clouds, e.g. Valhall, Lomond - You can't manage what you can't see + an emerging technology (the processing/migration is tough as the ray paths have compressive and shear portions - BP Amoco is one of the leaders in this technology at mereorese, Shop Lomond Field - 4C seismic Conventional seismic - poor definition under central gas Lomond- Palaeocene sands draped over salt diapir Gas Condensate Reservlr Management News March 2000, Apa Pav.um Seas (ete rsenar rcrston bp Valhall Field 4C seismic O1P 2.6 BE bbis 117 yoars production Blue circled area is worst gas cloud zone - improved imaging makes facilitate waterflood plana 1992 conventional 1996 4C - improved imaging of faults and reservoir thicks/thins. ‘Reservoir Management Nowsietr, Sept 1859, sees fea eect, eebp 4-D or time lapse seismic + Reservoir management tool + Repeat seismic surveys to identify fluid movements during production + Requires helpful rock properties and ability to remove base seismic signal + Draugen 4D is a neat, recent example - waterflooded high porosity oil reservoir Mechte 5 Reserva Charctorsation Appled Petoeum Geoscience £'pbp Track record: West of Shetland > provided important inter-well data > enhanced interpretation of reservoir dynamics > improved the simulation history matching, * drilling uncertainty reduced =15 wells drilled at approx. $25m Fwell + improved productiory injection strategy ¢ HSE is better assured .. improving early field life performance sess Pevteun Geoscince Ran Chacon f'sbp BP. UKCS 4-D Acq in 2000 Lise! Aa [Operator Partners | tue Foie [a0 ar Gaon ge | Danna amapratr eae Sevens vatwecenn orsen | 300 | Bua, Open cain oe _ Ststcronteie stetaon 27 set a, Trine |os [er termes, | Oisme one nome ‘eax [wo | am Garon | wonton fowces | emperors woes] Br Steen ae | oy woe -B surveys covering 10 fields: Early to late field life Applied Petroleum Geoscience ot Resa bp sence rbroath example: Difference Map ‘No Difference Fnfill Locations? New well drilled ron Ae > Dry Oil Column AD provided assurance on infill well location 34 ‘Applied Petroleum Geoscience e'ebp Motil 5 Reson Charctonston Har ou pulled towards Amplitude increase due the well 4 gos injection. Applies Petrcloum Geascience Male 5 Resort Charctrsaton Schiehallion — qualitative example before production after 24mmb production an ‘Applied Pesoleum Geoscience Mats 5: Reson Charetonsason 4D for Gas Management ‘Applied Petroleum Geoscience febp Wothle5 Resor Charactorsason Draugen Field 4D application Reservoir modal before AD choot + suggested flood front Map shows close to two producers reserveirtevel Al * ‘deesion needed on difference location of Sth platform 1990 producer production) ‘and 1998 re- Shoot. Difference interpreted as Too ma BBLS 205mbd shallow Sandstone, high porosity, light elt sien Keggin, koginja@bp.com % so Pol Goscionce (isos Reser oucoreaen ee bp Commercial Impact of 2000 4D ee sheen a Applet Petroleum Geoscience ‘Mowe 5 Reservar Chaactersaton 4D Acquisition in 2001 201 [ven] Operator Panes | Issue projects —_| am Wognus [265 | SP. NOX Map, | Marne Ce ingrovedresoluan ?Bazeine EOR gas geton 40 wt 1992. (compen eae ‘ado [150 | SPRWG.NOEX | Teche assurance fori we dado yn a acta [ae [er Yontonag gas cap expansion & water ‘swoop in facture cha. ‘Wau! [257 [BP.T7E-NOEK | Pressure compartments &svecp ec Manan sone Vahait [234 [PIPE rene. | Optimize ating ebing an complex ‘rma | overuse, Bassine fr waterinjecton _ rong Dravoen ‘Sal BP, Chven, | deol unewapt area and baer reserve ee sesciion, eaker rock ‘Sean 250 | Stet BP. Econ | Bator undersiand fed connectivity. properties 37 Appi Petroleum Geoscience #$bp Mode § Resonoi Charseonsaton 4D Summary * PART 1: WHY © The track record - value from WoS & Forties ‘+ The technical potential —not yet reached technical limits + The business requirement - aggressive prod. targets + PART 2: HOW + The 2000 program ~10 fields: 14 mbd added’ + The 2001 program —9 fields: wore challenging + Beyond 2001 - optimise & acquire more often Module 5: Reservar Craractorzaon Summary ‘AcpliedPetrleum Geoscience 'ebp + the ‘power’ of seismic comes from it's spatial component as well as it's dynamic component optimum projections can be designed in AIGI space hydrocarbons volumes can be estimated from seismic amplitudes 4D now ‘standard’ technology + reservoir modelling needs all the complexity from the seismic + ....enroll on the Applied Geophysics Course (21stC Geoscientist) 38 Applied Petroleum Geoscience ee es bp 5.2 Static Reservoir Description Module Structure wnat || Powey | ia | [Frias ana makes || fomcore |] jomiogs || pressure resewoir| | andtogs sradionts Permeability} | Procucibilty —— ‘Volumetries Rate and Reserves Static Description Dynamic Description} feo fate bp What you should take from this module + Understanding the concepts of static and dynamic reservoir description + Understanding of reservoir fundamentals — porosity, fluid saturations, permeability + Understanding of methods used to describe reservoir propertios from core, log and pressure data + How to calculate basic reservoir volumetrics, and awareness of the radial flow equation ‘Applied Petroleum Geoscience te bp ‘Module 5: Reservar Charsctariation What makes a Reservoir? Reservoir has to have: Pore space to hold fluids + Permeability, such that the oll and gas can be produced and needs to occur in a trap for buoyant hydrocarbons: ‘Ata more detailed level needs: + Scale — must be of commercial size + Connected porous volumes —to minimise ‘number of production wells ‘Module 5: Reservoir Cheractersation Static and Dynamic data Oi eiieaae cos febp Static Description Static Date -Defining the reservoir in a static condition Seismic sHow big is the trap? ‘Core How much porosity is thoro? ‘Logs “How is the porosity distributed? “Fluid samples “What are the in place fluid saturations? + Fluid pressures “HCPIGIPISTOIP sAnatogues Dynamic Data Dynamic Description Fluid pressures, Well tests ‘Well performance history] ‘Interference tests “Production logs sTime fapse seismic sTracers +Defining the reservoir under flowicrawdown, ‘conditions. +RESERVES - what is recoverable? ‘Depends on the development scheme (facilities, drive etc) and the way they interact with reservoir quality and connectivity Applied Petroleum Goossioee ‘Moca 5 Reserva Charatan bp Data & Scale of Investigation mies Yous [Se Sea Meech resource? $data a f Bodcote Geometry ovine ctancnieton Connecity 8 nina set cot 8 Imac to oxo? = amin Sets Chaacotaton fe Flow capacity eae Bese ee ig bp Scale of Investigation & Ratared 0 snc imae ~508m ——______-—- Applied Petroleum Geoscience ‘Module 5: Reservoir Characterisation Core from a reservoir ‘can measure * Fluids (Sw) Grain * Grain Density Sedimentology * Log / Seismic Calibration # Porosity, Permeability Distribution + Capillary properties seomechanical properties + Fluid Displacement Potrography Diagenesis Clay Minerals Throats, Applied Petroleum Geoscience ‘Modo: Reservolr Characterisation Porosi POROSITY - fraction / petcentage of bulk volume not oceupled by solid framework Depositionalfnitial porosity - controlled by grain packing ~ most natural arzin packs, such as sands have cose to random packing Rhomb 25.9% Random 36% Porosity modification during burial: ‘= Compaction ‘© Comentation ‘ Alteration ¢.g, Feldepars is est, -aragonitelcaleite.cr.delomitisation in ‘carbonates ‘Dissolution ~ particulary in carbonates Fracturing C 26.5% Cubic 47.6% Governing Factors: + Rate of compactional porosty loss controlled by ductles (clays, ductile grains) fraction Cemeniation can be environment or temperature (e.g. quartz at T > 120degC) * Overpressure can reduce compaction ‘» Movement of cementing fluids e.g. from shales, hydrothermal fluids Applied Fetrolum Geotseee “ Manas hecenor Chceroen ie bp Exercise: Direct Porosity from core ‘cuta cylindrical plug and clean it ‘ moacuite the total volume of the plug “mercury displacement or caliper measurement suse a Boyle's law porosimeter to derive the pore volume “Sample cal evacuated, pressurized hallum In reference call, helium pressure moacured 2, Open valve to sample chamber, measure pressure 3. Now use Boyle's Law IVI = pave TTR we assume temperature stays constant, V2 (with Tr erecta core plug in) = (PIV) = t= volume ofthe reference cat | & We know V2 empty, so difference between V2 empty and 1 yar yslams chikerferenes eet, | Vath plug in is vole of sold matrix of pag ing biosork ond te sample sl "Bahn and V2 ae tnoen 5. Porosity (plug volume ~ matrix volume¥plug volume Apple Potloum Geosslons ep ‘Module 5: Reservoir Characterisation Core Porosity Exercise continued Exercise inputs Pt = 1000 pst 2 = 500 pel Vi= 25 ce V2 empty = 550 Plug volume = 6.5 ec (assume T remains constant) dy plug weight = 12.39 Whatis porosity? How would you calculate grain density? What about isolated porespace? ‘Why mercury, why helium? Mercury aleplacemont wil give a very accurate plug volume as it conforms to iragularitos of plug surface without Invading pore spaco at ambiont conditions P Helium is a very small molecule and ean acces even the smallest pores ‘Simplified Method shown here The mathod described here Is a the use of tho Boyle's law principles plified version of actual laboratory procedure, to ustrate ee ee Sr ecrene oe bp Porosity from logs Later we will discuss the technicalities of driting, coring and logging wells, but lets look now at deriving porosity from log measurements! Density logging — how it works + Pad tool, pressed against borehole wall + Irradiate borehole wall using a Gamma source + (Compton) backscattered Gamma rays are detected in the tool = Number of Gamma rays scattered per unit volume is proportional to the number of electrons per unit volume in the formation, which in turn is related to the bulk density. hhinking back to the previous core porosity if we know bulk density (RHOB), what other information do we need to calculate porosity? Applied Petroloum Geoscionco ‘Module 5: Reservoir Characterisation Exercise - Porosity from density log ‘Need to know or assume: Matrix density - RHOMA Fluid density - RHOFL. Then use simple volumetiic equation: Porosity = (rhoma ~ rhob) / (Choma ~ thofl) OK, lets have a go at that on well 1, u 1g the QuickPetro spreadsheet So, we are starting fo get a feel for how we can determine porosity from typical well dala typos using simple density and volume relationchips —next we will riefy look at some other log porosity methods, before moving onto the fuids in the pore space, and an integrated reservoir description Applied Petroleum Geoscience Medute 5: Reservoir Characterization iebp Other porosity logs We typically run two or three different porosity lag measurements - Why? + porosity from density has more unknowns than we'd like (choma, shot) + convergence of answers from different methods increases confidence in the result The other options include: Neuiron logging Principio: Chemical/Electrical radioactive source bombards formation with fast noutrons. Measure neutrons that are not slowed/captured ~ slowing is greatest with Sonic legging Principle — sonic wave velocity in a ‘medium is related to porosity ~ high velocity in stif, low porosity rock, low velocity in unconsolidated, high porosity collision with Hydrogen protons — Neutron | | rock. tools a hydrogen detector (water and or oll) Application — in combination with other arosty fogs, and ih particular forty Application — less matrix dependent than 7 is ver ae subsurface rack properties to seismic density log, Used as a gas and shale Fesponse indicator in combo with density log Applied Petroleum Geoscience Module 5 Reserv Character Porosity logs — hints and tips Neutron-Density + Plot them together using ‘standard’ scales For sandstone (2.85g/ee matrix thob) * Density log scale: 1.95 2.95g/c0 + Neutron log scale: 0.42 100.18 vv (limestone 0.48 10-0.15) + curves avertie in clean water-bearing reservoir + Soparation in gas zones and in shates + allows quick interpretation of ithology and fuids Always tie to core data when you have i sed Poooun Gectlonce fsrorpifctscrchenreaedy 2% bp Exercise Comparison of log porosity methods Using the Quickpetro spreadsheet, compare sonic, density ‘and density neutron log porosities on well 1. Where are they Gifferent and why? Applied Petroleum Geoscien drake fetenms Gecsaenes ip Fluid Saturation FLUID SATURATION - fraction of the pore space occupied by 2 fluld phase Calculated by Arct equation using measurements from resistivity too! + Grains coated by water (‘water wetted! formation) + Water fills part of measured pore space + Measured as percent + Defines So, Sa, Sw +S,248, + Depends on texture and column height «+ Narrower pore throats restrict capillary entry pressure + Capillary entry pressure low for well sorted, coarse grained ‘Sandstones with large pores and pore throats, hence low S,, + Cap entry pressure important for drainage process Applied Petroleum Geoscience ‘Module 5: ReservoleCharacterzstion Controls on Sw + Capillaity properties of Rock + Position in a hydrocarbon column Higher in the column you get higher buoyancy pressure so ail or gas can overcome entry pressure Into smaller pores Applied Petroleum Geosciones ‘Module 5: Reserve Characterisation Core Analysis Flowchart aie bp tor) | Binseae lowest Pe bene tnossrenents [>] etcgoohy ovement ersmpie Sabet vk Special Core Analysis ‘AiTorne Po, Re Perm, Formation Damage testing ete et. Module 6: Reservoir Cheractrisoton Exercise - Interpreting fluids from logs ‘We know porosity, so how can we use ‘electrical resistivity/conductivity to interpret fluids? Applied Petroleum Geosclence ee bp ‘Arhie Equation asd on pic that water the econ rece “cern tern aa Mothod principles: Formation water (usually saline) is. conductive Matrix grains, oll and gas are resistive ra Cahier fa zone has high resistivity, ‘and has 20% porosity, what Poresty eastvty — | ruidinepetton ‘can we conclude? sie pa oh What about a zone with low resistivity and 20% porosity? 0% tow Ora zone with high resistivity me eon and 3% porosity _ ‘Module 5: Reservoir Charactrisaton Well log interpretation - summary * Takes measured properties, singly or in combination, to interpret lithology, porosity and water saturation: = lithology - GR; NPHI-RHOB, SP = porosity - RHOB; NPHI-RHOB; DT ~ water saturation - Archie Equation — based on principle that water is the only conductive rock component ~ if we know porosity (phit) and water resistivity (Rr: salinity), then water (Sw) and hydrocarhon (Shc) saturation can be derived from whole rock resistivity (Rt) Applied Petrotoum Geoscionco #%bp ‘Sw = ((a* Rw) /( phit™ * Rt)!” default values for a, m and n are 1, 2 and 2 10 Applied fortum Geocones Met tere Chascertoten ie bp Fluids and Pressures If we have a column of water, the pressure at a given point in the column is a function of the height of the ‘column, and the density of the water ‘Typical gradients Water — 0.435 pelt O-03 psi ‘Gas ~0,05-0.15 psift Height Applications + We can use pressure gradients to interpret fuid type + We can use pressure gradients to tell ea Us about column height piesa potentiallimitations Pressure Data Interpretation Wi conta pre illg ld a 2 angle pacsre the geen of pressure with depth is controlled by fluid density ‘+ be careful to select data from a single reservoir unit (with no obvious permeability barriers) -if lines are drawn through data from different cells, false gradients, and fluid intorprotations, can be made + Gradiant ean thus be used for fluid terpretation ~ Wotr tine) 1976347 pil 048-251 psi wards) 148-14 pa A 4 pal = okie) 13% pase pte = okttght! —aseepetm nse © Vote ene o72.040e osm (022-027 ptt ith good quality data (typically from high permeability sandstones}, and good gauges (quartz preferred), then 1 fits in pressure cells with one fluid should be close to perfect Conderate 6AS:055 pen (03602 peli Geetept) 364-948 si 005-5 pst gradient intersections mark the free fluid level (FWL. or FOL} between two different fluids Applied Petroleum Geoscience ‘Module: Recervor Characterization Formation Tester tool ‘+ RET (repeat formation tester) and FMT (Formation multtestr) ~ tong ostbichod ble, ~ nlite point pecs treasuromens (pees) ~ two bk samples (ok PVT guy) perrunin te bote + MOT (Modular Dynamic Tester), RC! (Reservoir Characterisation Intrument) ~ second generation pressre ad Sarmging tol = stows mulls samping, nd PVT ‘asl sampion ~ pur dwough acs fr sample sane ~ sows conto raoun Yom # ‘aded) for igh aualtysomaing ~ ual packr ane dul proba medulas equalizing vatve (te mud eoluren) L—¢) strain gauge LD tet Chambers to upper samote ccrambor Applied Petrotoum Geoseience ‘Module &: Reservoir Characterization FT pressure measurement * Need to see a flow to measure pressure (access to the formation fluid) * Flow induced by withdrawing fluid throug! the probe with a piston i the tool * Monitor buildup Reet Applied Petroleum Geoscience #%bp ‘Modo 5: Rosoroir Charsctereeton Exercise — interpreting pressure gradients * Well 4 information supplied ~ Raw well log (and core) data plot. ~ MOT Pressure depth plot * Exercise ~ Using the available data, determine what fluids are present in the well, and if there are any contacts evident = Hints — Green shaded neutron-density crossover is shale ~ Integrate resistivity profile with pressure data Sead xe cosine bp Integrated description exercise + OLD (6305/5-1) well drilled on crest of very large structure ‘= base of sand in Ormen Lange some 250m above top sand in Barden + Water found in Ormen Lange well, structurally much higher than Barden crest + Risk on drilling Barden (6305)7-1) raised by Ormen Lange data Applied Petroleum Geoscience ‘Motoe 5: Reservoir Characterisation Applied Petroleum Geoscience ‘Module 5: Racervol Characterisation 2 bp ie Integrated interpretation example + NOC well 6305/6-1 * Goncerns over| high Sw at base of main sand, and water sands in well 4 ea eae soca fiebp “Modula §: Rosorvie Characterization Impact of central well findings « if there is a transition zone and water leg in the crestal well ~ Is the Barden extension (>200m depen) also water-bearing? ~ Is the fat event DHI on seismic a palaco-hydrocarbon water contact (diagenotic effect), or a seismic artefact? + significantly increased risk on driling the structurally much deeper Barden extension to the Ormen Lange structure Applied Petroleum Geoscience 2 bp Module 5: Reservoir Characterisation What do the pressure data tell us? oe i Pressure (psi) 15 Apple Parole Geoconce Motes econo Charstrarton ai bp Questions ‘The Pressure plot has gas and water gradient lines drawn on Can you define a gas water contact (or free water level) Using the pressure data? Should we drill to find gas downdip? Applied Petroleum Geoscience by ‘Modelo 5: Reservir Characterisation p Pressure Measurements application + Compare with pre- and earlier- production profiles © Used to identify: — Sand body interconnectivity - using pressure depletion or pulse testing - ‘can be used for updating stratigraphic models ~ Effectiveness of drive or artificial pressure maintenance - what is acquifer support really ike? Which production wells are being supported by which injectors? — Vertical permeability barriers - steps in pressure profiles ~ Reservoir fluid - from pressure gradient analysis 16 o ie bp Pressure data interpretation - Harding * | aeicheemenhee THe “a ef] ae Et eel ht scan iebp Magnus well - pressure example + M36Z:B7 well Tieariceem + Note marked differential 7 depletion - up to 1000 psi | across B shale = + Post production pressure | § differentials can cause io significant well problems Source -D Richards MTES inant sta Applied Petroleum Geoscience by ‘Modile 5; Reservoic Characterisation Pp Sealing Faults from Pressure data ‘Sealing Fault Identification ake 1982 "ges0 a0 aed Firat ET Survey second RFT Survey Module: Reservtr Chorscerertion Permeability Pormoability is the intrinsic characteristic of a matorial that determines how easily a fluid can pass through i Applied Potroloum Geoscience bp Classification (conventional reservoirs) Poor (tight) =k< 4 mD Fair 250 However, classification Is context dependent , + fair petm for oil may be ‘good’ for gas + in a low drill cost setting, with hydraulic frac complotions, perms of 0.1mD or less can provide viable commercial gas rates + high cost settings (offshore, deepwater} typically require higher perms to got adequate welt rates + Permeability is only part of the story ~ need thickness (h) as well 1€ Module 5: Recervol Chorecteroation Measuring permeabi ty Henry Darey developed fluid flow equation: Applied Petroleum Geoscience 3 bp 4 k = permeabity, Dary (0.98602 jn) A. cross-sectional area, cm? " i viscosity, centpolsa (P) t nat, em pla = pressure gradiont in erection of fw, alm/om Absolute K - single fluid phase in the pore system Effective K - more than a single fui phase (ky ky, k,) present Relative K -rato of ky permeatiliy of one phase tothe absolute (k,, kg: Kel selec gems | iebp Permeal bility Controls Fundamentatiy, Permeability is & function of the cross sectional area and continuity of pore throats For sandstones, all else being eal equal: evn —}—| * Coarser grained sandstones have larger diameter pore throats + Better sorted sandstones have larger diameter pore throats * More cement > smatiar ore throats andlor poorer or connectivity A This plot shows poro-perm trend », lines for sandstones undergoing i co porosity loss by compaction! Poesy a gerzowt emenaton Poorer sorting pls the vend (rom BP pore system modell orer sorting pulls the trend lines : eee a dow to lower permeability | Peemeatity nd} a ] Applied Petroleum Geoscience ‘Module 6: Resorvol Characterisation Permeability ~ how diagenetic processes modify the pore system aigbp ‘iar octecve Applied Petroleum Geoscience Module 5: Reservolr Choractriation Poro-Perm — Visual Examples + Moderately sorted arkose with abundant poresining & pore-iling sidorito ‘coment (note moderate amount of cement reduced intergranular porosity), [<4 9.1% K=227mD 20 peta Forclum Geotcones eee er ere ie bp Poro-Perm — Visual Examples + Note pyrite effect on log response Sa eaar cae denibdteocen Geos bp Poro-Perm — Visual Examples * Poorly sorted sandstone with pervasive, thin ‘grain-coats; abundant intergranular porosity = sO} $= 15% K= 100mD [+= 20% k= 730m0 | Applied Petroleum Geoscience qemceneee cee bp Perm — Visual Examples + Porous, poorly serted ‘subarkosic sandstone with thin (grain. coating clays. Applied Petroleum Geoscience ‘Modal 5: Reservoir Characterisation Carbonate Reservoir Qual May contain less mineral components than sandstones, but resorvoir quality is usually more compiexidiverse: + cissolutionfatteration can turn pore space into mati and max into pore space + can have very high porosity, But poor connectivity + pores (vugsivoids) can be larger than the a slandard measurement 227 IG 219 peasans resolution : 2 Applied Petroleum Geoscience ‘Module 6: Reservoir Characterisation Perm Predictor USING PERM PREDICTOR. + ifwe know grain size/sorting, cement style and log porosity, we can predict permeability in the absence of core + wo can intervogate a set of core ‘analysis data for identifying reservoir quality controls PERMPREDICTOR is an Excel based tool for porosity and permeabilly analysis, + includes porosity-depthieffective stress tools + porosity-permeablity tools + rudimentary inflow calculator Applied Petroloum Geoscience ‘Mode 5: RorervtrChoracteriseton Nova Scotia - interpreting limited data + This well has measured overpressure of . 2000psi al 44700m (4585m bef) ertcal well + Core and fog porosities match, and sands with porosity (0 0.25-0.3 are common + With observed overpressure and global porosity-depth ‘lationship, would not expect posites at this depth higher then 0.25 + Geain densities inthe higher porosity sands are c. 2.65, ‘ice (quartz, no carbonate), though note that lower porosily sands in the same section have higher grain densiies + fine sand grein size is typical + Porosiy-perm trends are consistent with a compactediquartz cemented moderalafsooty sorted lower fine sand, Perm is maximised for this texture Pex Predictor plot ‘Solid curves are for compactoniquariz coment case, pooty sorted vEf sand - red and ‘moderately sored fan sand (green) ‘Chebucto MSSG data shows clear ‘compaction quartz cement rend Applied Petroleum Geoscience ‘Modole 6: Reservoie Characterisation bp Net:Gross * Gross section describes the overall succession * The volume of shale (Vsh) provides a reference for lithology and input into effective porosity, shaley sand, Sw and permeability calculations = normally computed from GR with ND * Net sand is commonly quantified using a Vsh cut-off along with other log parameter cutoffs — can also use porosity qualifier ~ net pay is net sand containing hydrocarbon * Reserve calculations are highly sensitive to NtG ‘Applied Petroleum Geoscience Nate unoren emt 2 bp Net:Gross Gamma Veh4s + Define min and max GR values forVsh emy Vehti = Rigg =GRaiy Rene Rri : ‘ + choose Vshts cut off to Lope determine not sand using i integrated log suite Net sand = A+8+C4D, Gross Sequence =| |e NEG = notigross. Applied Petroleum Geoscience ‘Module 6: Reservoir Characterisation Net:Gross Differonce between minimum and maximum cases results i Net NIG. [5 tom 25% (7) 20m 50% (Cy 30m 75% So which is ight?. 100 MMbIs. ea Applied Petrotoum Geoscience Module: Reservoir Characterisation Net Pay — no single solution Not Pay can be defined as that part of the reservolr soction which will contribute to oi (F gas production, and that depends on the recovery mechanism: For example: + Water drive will recover more oll but may access less of the reservoir volume than Straightforward depletion + As gas is 60 much more mobile than oil much ‘more of the reservair will contribute to production {And the real fun starts with naturaly and hydraulic fractured reservoirs - small zone of inflow to the well, but large reservoir volume 3H drained) So always aim to base a net pay cutoff on permeability if possible, and make the cutoff a team decision Lorenz plot—a ‘guste | uselul toot for sttztuite | doserbing a reservoir rom a | him, | reserves access standpoint piled Petroleum Geossonce lates Reo Chacon bp Volumetrics Gas ‘ConversionsiExemple values = 38308 Im * GEF n 6707/10: 275 (Gas expands vine ought to fover press at “Example OW FVF: 1.25 (ol sinks lundor subsurace conditions as Solution gas is exsolved) * Recovery Factors ~cive mochaniem ‘dependent ~ "Gas 0.6.09 GIIP = GRV x mg x porosity x Sg x GEF Gas Reserves = GIiP x Recovery Factor 101025075 (oi) OP = GRV x n:g x porosity x So_x EVE ‘Gi Reserves = OliP x Recovery Facor Srorase~Gusiae baw Gas eserves Applied Petroleum Geoscience Motte Reserve Charsctersation #%bp Kh — the real contributor to producibility For a vertical wel, rate is described by Darcy’s radial flow equation (here for clin bpd) Permeability * thickness (f) Pressure drop ~ Flow, in required to initiate barrels per flow (psi) day 0.00708* kh* AP Bu(In(re/ rw) +S. roa —— Skin facior—a ane resticlon tow dose Drainage area to or at the wellbore (ee) radusiwelibore radius in feot(a large numbet) Visi 26 ‘Avpled Petroleum Goosince ‘toca: Reso Choratronion bp Interpretation in tightfractured reservoirs © Issues ~ low ects mean oka igh esis, so Sw maybe gsi deterine ~ fractures may be key to productivity - where are they? + Solutions - Swipay ~ subtle Invasion profiles ~ rus log gas data + Solutions - Fractures ~ gas data ~ detailed mus ioss records ~ Image logs (FMSIFMUCBILISTAR/UBI ote) = Sonic lopaing ‘© Summary - integration - use all he data you have sped Ptcteum Geoscience ’ Cera eee aiebp Synopsis What Porosity iid | | Fiuds ana ae oe wre |] ieee || git, |ffasear® | [Porat |r mee to| | and gs wresure ——— Volumetries| Rate and Reserves {Static Description Caserona ee iibp 6.0 Appraisal — Module Content '* Module Content = 6.1 Context for appraisal ~ 6.2 Risk and Uncertainty, RUS ~ 6.3 Volumetrcs Introduction ~ 6.4 Fluid Properties & Drive Mechanisms, = 65 Segments ~ 6.6 Dynamic Reservoir Characterisation ~ 67 Benctrnarking + Key Messages ~ Appraisal s an important part of the value chain and focuses on reducing ‘uncertainty to optimise project value. Relies heavily on detailed stalic description {reservoir models) and dynamic data to present a range of profile outcomes. Applied Petroleum Geoscience seater ge, eb “ 6.1 Appraisal - context + There has been a discovery ‘+ We must now decide: = whether to develop or not ~ decision usually involves major CAPEX commitment = how to develop scheme, drive, flexibly vs. uncertainty, ‘ight-sizing’ the faciities ete ~ development concept (screening studios - dry versus wet trees) ‘+ This is the background for appraisal = Appraisal is about reducing uncertainty and providing information to make the next decision + Key issues affecting project value — how much oil and/or gas can we produce and sell ~ how segmentedicomplex is the field? — what is well productivity, and i it ikly to vary? Applied Petolcum Geoscisnce esr tebp Decision to develop * Based on ‘+ Ask the following questions ~ most likely estimate of field value ~ Is further appraisal required to reduce and the risk of economic fllure fan ~ range of downside and upside acceptable level? estimates — would these further appraisal costs {V6 the project a nogative NPV? * Getting the downside and upside estimates wrong could lead to ‘* Decision analysis rigorous and based — increased risk of project failure or ‘on value criteria (EMV or EPV) - installation of undersized facilities Decision Trees are useful reducing potential project NEV + Decision analysis involves ‘+ Through field life i Nae ~ Dering all possible outcomes Saar or AH re ~ Evaluating probability and worth: usually (and should) reduce Exaluaing probably ~ and the range of possible volumes should stay within the uncertainty ~ Computing a risked value (EMV) of range established eatier each outcome aetna! eee ae bp HCIIP Uncertainty - howeve * Possible volumes sometimes see step changes (outside earlier prediction ranges) ‘+ Important to establish accurate anges in offshore situations where design and weight restrictions can make post installations difficult, impossible and certainly expensive + Gas developments - contracts usually specifies dally contract volume plus permitted ‘swing’ factor Applied Petroleum Geoscience £¥bp Weta 6 Appraisal Pi ‘Applied Petrotoum Geoscience ‘edule Acoraise! rogressing Reserves iebp Neat. nes. Bos c= ain ‘oate pup2 Put PD NPIE Nonproved ‘PZT = Uncertainty - the range of a possible outcome + e.g. with what we know now, the possible range of reserves is botweon 100 and ‘500 MM bbt * Appraisal must reduce uncertainty about reserves and commercial viability eee mcr — Facies uncertainty ~ defining the type of acy required = Volumetic uncertainty (HIP and reserves) = the main target fr apprise ~ sanitbebuitintine? eastscalaton? | ~ Economic uncertainty ~ OiGas price, exchango rates, interest rates, infaion ee $ ~ Political uncertainty ~ eg. Fiscal changes Fp ms Define distribution incon om saul Probability vs. reserves ae for each parameter upside and downside ee A Reserves extination PEO: eon P10 \t \A Optimise WellsiFacity 4 ae bp ‘ApoledPevoeum Geoscence bp RUS — a Living Process Dopition plan (Resource characterisation Receroir development plan Rus Reserir mogarement& surveione plan HSE plan Eeromine amen Depletion pan ve PLAN Het pte deveipment tig pect uncertainty study peat unsorainty study Fre cana LEARN [Be] Waipereencapreiions Reservoir understanding Reserves Estimation MEASURE ‘Wl parorneneata GOR WoT, BHP. ‘Aophed Petroleum Geoscience epbp ‘ede Aporaisal Risk Tools ‘+ Monte Carlo analysis eg. Crystal Ball = repeated random sampling and combination from a range of parameter distnibutions fo calculate a combined output variable + G Risk (Generic Risk) ~ GRisk isa probabilstic-ype nek assessment system designed to handle the analysis of neaty any type of risk inclucng time-series analysis, sensitivity analysis, etc. ones + RISK 2000 — Monte Carlo based system for tisk assessment of exploration opportunities, ~ ARisk system also performed analysis ofthe prospect portfolio including prediction of success and resource levels, summing of resources from multiple Prospects, ranking opportunities, play analysis, and the generation of rsk- derived coefficients for input to economic and engineering systems. etna ener tebp 6.3 Trap Volumetrics - definitions ‘Hydrocarbons Initially in place (HCIIP) — volume in the reservoir before production begins — expressed in standard (stock tank) conditions - 14.7 psia at 60 degF © Technically Recoverable Hydrocarbon Volumes (TRHV) — possible recovery using proven practices — may not al be economically recoverable «Ultimate recovery (UR) ~ That proportion of TRHV which is expected, over field life, under a given development plan © Reserves That proportion of TRHV which is expected during remaining field lifetime seeeeiegeaer Smeoere iebp Volumetric Calculat n * Basic equation for reserves HCIIP = BRV * N:G * POR * (1-Sw) * VolFac * Rec. Factor * Probabilistic approach — Probability distribution for each input parameter ~ Describes most likely volume and associated uncertainty — Monte Carlo simulation using PEPSY or RISK 2000 * Deterministic approach — trap, reservoir and fluid parameters well defined by wells and seismic: apna Oe iebp What causes volumetric uncertainty? « Depends on stage of a development ~ Soon after discovery depth conversion will cary high uncertainty ~ Later in field life, reservoir heterogeneity may be the key recovery control « Key areas of uncertainty ~ Data uncertainty - quality, quantity and representativeness ~ Interpretation uncertainty - usually several possible interpretations at any one time ~ Model uncertainty - after raw data is interpreted, a model is produced to explain the observations of reservoir performance under production « The model is never completely correct - No perfect vision! eee tropa Cebp Trap definition - Bulk Rock Volume puis Output High quality seismic data + Bak Rock Vplume (BR) {Well dala tio to eoiemio ‘Consistent seismic horizon interpretation "Al data honoured + Stacking velocities, well veloctios * Velocty model ‘Hyrocarbon contacts Motnodetoay BRV Controtig Factors + Hotizon interpretation: IESX,Seisworks Shape of eiacture + Vatocity modeling o refine interpretation * dp of fanks Maps ia time positon of bounding fauts 1 Synthaic Sesmagram => weilto salmic te positon of nteralfauts + Slacking volettes, woll tos >velocty model + depth of contacts ‘Time to Depth conversion ‘etary ome ebb Trap definition - Net Rock Volume et dont Ags a cores from wots Nat ook Volume (NRW) ‘30 selamis data ‘analogues data ‘iagenetic modeling -contots,dstibution got fh Principe is variation i Prono (eee Vetical and areal dition of Ag spay and non pay oe “portly fowe “pexmoabity Methodotoa + Log analysis (single point) ae + Sloe aos (redictn avay tom wel *Dapositonal envrenaont 7 Stochaste metiods * diagenest tmoact “heterogeneity "Available pore volume Ki & kh productivity) * Comparmentaisaton + Often most important part of appraisal Parapet mre tebp Volumetrics - controls on input parameters * Porosity * Formation Volume Factor ~ Depositional environment ~ Fluid type ~ Diagenesis ~ Reservoir pressure & temperature * Hydrocarbon saturation * Recovery factor ~ Reservoir quality = Fluid properties, Capillary pressures = Dip ~ Aquifer volume = Gas cap volume ~ Development Plan — well spacing, reservoir connectedness ote Appraisal is about reducing the uncertainty on key parameters to better define the project value poi Pevcteum Geoscience 2% bp Fluid description and Drive * How will fluids behave when production is underway ~ pressure and temperature drop ~ naturaVartificial drive ~ Use of reservoir models to define profiles « How much can be recovered - RESERVES - controlled by: = fluid type ~ heterogeneity, compartmentalisation ~ intimately related to development plan and drive aebp ¢ What fluids are found? = petroleum - oll-condensate-gas ~ formation brines - within and below petroleum column, ~ other fluids - gas phase COz, Nitrogen ete. © Important to describe fully because ~ critical to know how fluids will behave when pressure and temperature are dropped during production - defines the production strategy - drive ete., and recovery factor ‘small quantities of CO: or HaS can significantly increase development costs, ‘Applied Petroleum Geoscience ‘Mowe 6: Appreat Specific Gravity 4.00 0.95 0.90 0.85 080 075 20 Heavy oil Medium Oil Light 01 Condersate 20 40 eo API Degrees Applied Petroleum Geescience Meche 6 Angra ap Fluid types and behaviour Fluids ~ liquid phase (undersaturated ol) ~ vapour phase (unassociated gas or condensate) ~ combination (saturated oll with associated gas cap) * Production behaviour ~ as pressure drops, dew point (gas) or bubble point (al) may be reached — with of itis usually best to produce above bubble point if possible = likewise with gas, itis best if liguids don't drop out in reservoir ‘Applied Pelcleum Geasclonce octle Appraisal iiebp Fluid characteristics - implications * Contaminants = HS, COz- corrosion problems and environmental hazard mean added development costs, Ni, Vanadium in Mars + GOR- gas oil ratio - impacts project design - gas disposal by piping for sale, re-injection ete - Environmental agenda ~ Angola discussion + CGR - high liquid yield from gas can add significantly to project value + Wax - high wax (high pour point) crude oil means added operational costs and transportation problems Applied Pettleum Geescience ‘ste 8 Anprssat Fluids - mobili ratio ep «defines mobility of invading fluid Anjected water) relative to produced fluid, such as oilgas + piston like displacement if produced fluid more mobile ‘+ note impact of gravity which can cancel out mobility effects: ~ water tends to sink in an oiligas reservoir, 60 if high porm is atthe base of the reservoir, early water breakthrough may ocour ~ ideal (for dive) is to have best pperms atthe top (‘coarsening up’) son AS Sle, sister ie istocerent Ver eriient brokthowgh moe ‘plocemant reticent sopled Porn Goasonce pumpin bp Fluids - sampling * Bad samples = bad analyis = bad decisions {and possibly expensive implications) * Samples — downhole, ideally pressurised (well test or 2MDT), and at reservoir conditions, ~ surface (well test or production separator), which require recombination of liquid and gas components Bases eee ae bp Fluid Analysis - PVT © Analysis ~ key is to replicate gas/oil proportions as in the reservoir (at res P/T) ~ distillation (ol) or chromatography (gas) Pressure, Volume and Temperature are varied/monitored * Two gas-liberation situations modelled ~ Flash or constant mass - gasfiquid remain in contact throughout the ‘experiment (overall mass remains constant) ~ Differential liberation - part or all of the gas is removed as itis evolved - N.B. actual reservoir processes can be either of these (or a combination) od Peto Geoscience o ea eer 2 bp iWater_samiples tiscgicnsecusneusnesuanenannsanecanead © Important because: water salinity is a key component of oil/gas saturation determination — PIT drop with produced water can give problems such as scaling of tubulars (BaSO«, CacOs) ~ incompatibiliies of formation and injected/invaded water can lead to production problems - formation damage * Sampling ~ RFTIMDTWell test ~ Watch for contamination - MDT may give best (or good enough) samples if cleaned up sufficiently dette cence febp Reservoir Drive - introduction © The process which drives the reservoir fluids from within the A reservoir into the production wells * Reservoir drive energy alone may be sufficient, but can take several forms * Artificial lift supplementation may be required * Combination drive (>1 contributory process) is typical cegens oe Sebp Recovery Mechanisms + Possible recovery techniques * Water Flood + Gas Flood Untavourable Untavourabie| ‘Appkes Percleun Goosclonce bp Recovery Mechat ms Optimum - piston Unfavourable Applied Petioleum Geascience Naoto 6 Appraisal Drive Mechanisms iebp waive Sac Coan ‘Depletion chive | Pesars depioton afer GOR GH witha ow ‘Cae fos epncon fa, comaiawalorand ck mas posse tant Scho coemnenormn an Tater | me PRIOR ee | RR | eee ip nm mT Smo | ence ae Seen meena nina Soto Sao a a ee Sreseietieaen Tein Someta ante ta a ataeneataraay Teeter come armen | enna ae ST TO coor a ee Seenaie [Season So Careqay [etitatayramtea mam | an [iit meetin odacaeonao owyelleaniralgmeoane ‘western? ie bp Segments + Asegment is that part of a prospect, defined by geological and engineering criteria, whose petroleum volumes may be confidently explored for by the driling of a single well. Reserves may be booked for a segment only after the well is dried. + The petroleum volume distributions of undrilled segments carry a risk, even though reserves may have beén booked in other drilled segments + Fora more detailed expianation of a whole range of technical definitions see the following intranet site http://gbe.bpweb.bp.com/XTD! fee init aebe Testing segments « Segment test ~ the driling of unproven segments ~ note that undrilled segments carry a risk of being dry, as well as volumetric uncertainty — when petroleum presence is proven, effort is required to reduce volumetric uncertainty ld Pecan Gooscince at ops #% bp Segments te Paton Grace ieee, i bp Segments and Risk Applied Petiotoum Geoscience te 6:Apprasal ile bp Segments and Book Keeping Book-keeping Reserves Inventory 80 mmbbl (NP3?) Prospect Inventory 60 mmbbI (QP?) Opportunity Description Mode 1460 mmbbI Moan 140 mmbb! Applied Potroloum Geoscience Mecule 6 Apprasat aitbp Segments and Book Keeping _— Segment Sogment 2. ommbt Book-keeping Reserves Inventory 435 mmbbl (NP12) Prospect Inventory 48 mmbbl (QP?) Opportunity Description Mode 135 mmbbI Moan 453 mmbbl ‘Apolied Petroleum Geoscience febp ‘ocho 6: Appraisal Segments and Book Keeping Book-keeping Reserves Inventory 140 mmbbl (NP1?) Prospect Inventory 0 Opportunity Description Mode 440 mbt Mean 440 mab spas Pel Gecsoence femrien eebp Kvitebjorn, NVG, North Sea, Norway me Shela cyt lsd Putloon Goecoce ‘aS ae #sbp Block 34/11 - total resource potential so Key prospects/ discoveries in . licence [Discovery - | Reserves Prospect. | ‘mmboe x a 7 ULLFAKS cunseaes * Total mean sked reserves in smitor prospects (JSJt1) = t2ammboe SULLA + Total block risked reserve = 77ammboe (c. sere les 2.97CF plus 270mmbb\s) ‘Applied Patroloum Geascionce by ‘Morte 8 Apprasa) mit PP Field segmentation for GIIP estimation + Based on broad structural ‘compartments + Small intra feld fault throws + 3.6-44 segments medolled in “uncertainty study + Wood 200bef nected for development fore de Gor Contributors to range in GIIP (field composite) BRV-ower BRV-upper NiG-upper HCsatupper Porosity tower GER-upper NG tower HCsattower a lower 300 Ian a0 109 209 ma 400 509 «ao 180 aeons tebp Field segmentation for GIIP estimation nt Segment Sau) | ted [a I Condensate reserves not Included + Based on broad structural ‘compartments + Small intra fetd fault throws + 3.8-11 segments modelled in luncertainty study -Appod Potoieum Geasciance : Were Acasa! Bae OP Segment Appraisal — North Sea example aoa ALLE APPLETONFOLAAA a duee ements [Eiijem coms L | LP Bt & 2, Boplion ted Petcieum Geasclence Wikio mm sebp leton Discover Discovery Well delayed payback and project NPV and RoR erosion * Foinaven - production startup delayed by problems with subsea manifolds. Again, FPSO vessel was complete, so project NPV and RoR were eroded * Need to be realistic about risks in advance, and learn from previous experience Applied Petroleum Geoscience £pbp Development and Appraisal - comparison Applied Potroloum Geoscience Development Plan + Production profile underpins the cashflow profile and project NPV, and is dependent on: ~ Ultimate recovery - HCIIP and reserves = Offtake rate - per well, number of wells, facilities Se Levens OF APnODUCTION PAOFLE + Production profile is defined by 6 parameters = Recoverable hydrocarbon volume (reserves) oe build uo period } annual plateau rate ~ percentage of ultimate recovery produced before end) ff plateau ae) ~ decline rate = abandonment rate os Applied Petroleum Geoscience f'ebp 7.2 Concept Selection * Several facility designs will normally be possible, although environmental conditions may rule out some options © Several possible schemes will be evaluated facility type, driling, processing and export ~ spending, cate and cashflow profiles ~ NPV and IRR. © Rank the options on economic value © Option selection and detail planning -ovlied Petoleum Geossence f'bbp Development Scheme options s, Deep water Applied Petroleum Geoscience £'¥bp RVA Summary Applied Petroleum Geoscience "bp Depletion Plan and links to RVAS Purpose: ‘The Depletion Plan sets out delivery of the short and long term value generation expectations from the hydrocarbon resource It articulates a “Living Plan” across Life of Field decisions to provide the evolving narrative of Reservoir Management and Reservoir Performance for value generation Itis a basis for setting targets, implementing action for delivery and creating business options Applied Petroleum Geoscience £'ebp Depletion Plan + Life of Field Production Plan ( to Reservoir Technical Limit ) + Reservoir Management Plan + Performance & Learning + Reservoir Driven HSE Impacts Understanding Base & + Reservoir Surveillance Plan Growth Opportunities + Technology Plan ~ + Reservoir Operating} ‘Scenario planning to highlight sequences sspendencies oy fy ‘Applied Petroleum Geoscience ae bp 7.3 Depletion Planning ‘+ Multidisciptine integration is vital «Evan HCIP adits dtibuion ’ ‘+ Define layering and drainage pattems ‘+ Drive mechanism? - heterogeneity, fluid type, aquifer + Sensitivity studies ‘+ Drainage regions -> well spacing ‘+ Rank prod inj. well locations, define optimum driling sites, and slot nos. ‘= Production profile and facilities requirements Applied Potroloum Geoscience ftbp Development Technology Advances + Well Performance (flow rate, Pl} ~ deviated wells, = muttilaterals, = better completions * Phased and Fast Track developments ~ earlier oilas Applied Petroleum Geoscience kbp Well deviation * Awell may be deviated i ~toreach apartof the feata fl distance from the surface/sea fl00r se} welsite-extonded reach eling. =| - togive a deviated (non vertical) path = ‘through the reservoir - usually to access more surface area in the reservoir with a single well increase rate and / or reserves). + ‘Designer’ wells (non-conventional) may have more complex well paths or multiple wellbores in the reservoir. Applied Petroleum Geoscience isbp Well deviation - deviated wells (in Reservoir) ‘= Improved well productivity (increased flowing surface area, so Khis high, and thus higher PI (productivity index bbVday/psi) Productivity Index = Production rate / Drawdown, fe.g. 10000bpd/500psi = PI 20) * Increased chance of hitting and exploiting conductive fractures ( but can be ‘a negative) ‘+ Valuable in thin oil columns to minimise early waterigas coning into production wells, ‘+ Harder to log, more complex evaluation, stimulation not straightforward '* Increased mechanical complexity of well design xX Applied Petroloum Geoscience Extended reach drilling location + Circle of reach defines number of surface or subsea wellhead locations are required + Tacinlogy devlsing rein his doe. Portes cout robe devon : wih Roubeewelses (cial) aes F- ‘+ Subsea template with moderate reach Wwytch Farm wells may be more cost effective than longer reach wells from a remote location. + but ‘wet’ wellheads more problematic for interventions ‘Applied Potroloum Geeecience 'ebp Ram Powell Development Tnilial Development Phase Plan | wort Record TL? Startup 4.2008 Platiom in 3218 of water “Using 40 selsmic survey -Typleal Gul of Mexico well spacing is needed. “hustory matznes prod {00 acres foros |- wot performance ASF Wel ding progran] ‘0 eres foro Indetes excelent -taxirenwt ‘commonicaion thee ‘2000 B0°D of tive reservoirs +1991 Paradigm Production in 320" of waters net possible Ful development of |- Pook wel rates of allrsourees from {08 UNCED and upto theater IE syauoaoro swells |- current production 238 PN, CAPEX'S 2.18 ‘MCFD 21,000 BO>D, : s7iB08 \carex—san2m c Applied Petroleum Geost Ram Powell - Performance and Lear TW Sands not enough fndomental date + Sand. thin bedded lvee/overbank production hngnots comet mode or age were + JSand-right touch + erent atenol pemacn ne tener ~ cna by wet essere, develoment ks mated wl Development Optimization = OW Success ~ semen ede mayo, Nghcost spas Need Clear Appraisal Strategy ~ cami ony, flere ‘Submarine Fan Depostion not aswell understood az other onvronments Applied Potroloum Gooscianco tebe Ram Powell - why does it work? * Worked as joint subsurface team ~ complete subsurface teams from Shell, Amoco & Exxon, plus additional expertise as needed ~ accountable to facilities team to address issues during systems design = jointly staffed facilities design team at Shell # Not just fewer wells, — well placement relative to stratigraphy and fluids, larger completions, near-horizontals, ‘* Multiple fluid-flow simulations essential to understand reservoir implications of development design Applied Petroleum Geoscience febp Well Deviation / Development Plan Exercise Determine the type of wells (vertical or deviated) and surface Objective: location for development wells Data: + Vertical well cost = $20mm ‘+ Deviated well cost, Smm = 20 + 0.5 "(horizontal departure in 1000's ft ‘+ Manifold, umbilical, control cost = $5mm fdr site + Will spacing ~ 350 acres = 4000 ft 4000 f= (] Reservoir Management Workshop Applied Petroleum Geoscience GCA Structure STOIIP and Reserves ‘Deep Water Guna (ition STB) ‘STOP Reserves Poreriv 884 385 Balakiany 498 15 Chirag STOUP Reserves Perey 2554 1128 Balakhany 1189 32t Azeri STOIP Reserves Pererv 4061 1831 lokhany 2565 742 GCA STOUP Reserves ever 7499 3340 Balakrany 42531208 Tolal 117524587 10 Applied Potroloum Geoscionce ebp Chirag: Initial depletion plan (Pereriv) Chirag field development at time of ‘Aa. Development pater reflects, ‘160acre spacing with tine drive water Injection. Depletion plan gave 127mbopd plateau and 414mmSTB A Sexpantes oS he Pope wet ‘Reservar Management Workshop Applied Petroleum Geoscionee foe [ S€ nose - Fat, comparmentalised, |Lgesiceng reer ese xt Ts tent steep, a pod reservoir quay. qufer support JL | [Nfl steep Laguter auport ™ | ‘Wall test GOR (am*3lem"3} Applied Petroleum Geoscience Sand Chirag new development ‘a wells with high quality data, Comparison of old and new developments Applied Petroleum Geoscience Reservoir Simulation Geocellular model ‘Structure post well A-8 Theust fault Rock properties Eclipse grid Coarse grid (Dev Gun to E Chirag) 146x45%5, 200m x 200m, | layer per reservoir unit Fine grid (€ Chirag) 93x56x18, 100m x 100m, 6 layers each Per B&D Preserves steucture, faults and upscaled rock properties 75 million cells, 50m x 50m x 0.5m ibp 12 Applied Petroleum Geoscience febp History Match and forecast | GOR behaviour .. predicts individual well rates tard waterflood response predicts long term performance Applied Petroleum Geoscience Epp Summary - Chirag-1 development + Rapid initial development - learning on the fly + Some early surprises, good (well productivity) and bad (GOR behaviour) Reservoir modelling created an effective tool for reservoir management, quantifying risk and development planning + Chirag lessons are important input for the next stage of full-field development Applied Petroleum Geoscience Lebp Phased Development + A way of reducing risk where significant uncertainty exists following appraisal ‘* Development proceeds in distinct phases, starting with a low cost, low risk core development * Static and dynamic data from each phase is used to guide subsequent phases ¢ Reduces and defers risk but * Can reduce overall NPV Applied Petroleum Geoscience f'tbp Fast track development ‘= Compressing the time from discovery to first oil, Le. compressing appraisal ‘+ Howis it achieved? — Smart appraisal - using seismic, EWT, etc = Needs early sanction to commit to early facities build - therefore early HCHP and reserves are key ~ Facilities flexiblityimodularity 2s uncertainty may stillbe high ~ Pre-dilling to give early production © Risks? ~ incomplete appraisal, facilities design locked in too early, unforeseen problems - ‘ean have big impact en projact NPV and RoR 14 ‘Applied Petroloum Geoscionce £"bp Pre-drilling * Used to accelerate to first oil - parallel processes * Production wells pre-drilled and completed using a mobile drilling rig during facilities fabrication * When facilities are ready wells are hooked up and production can start quickly * However - there are risks - pre-drilling has little/no dynamic information to guide placement. Wells may have to be sidetracked/re-completed subsequently Applied Petroleum Geoscience £'¢bp Phased Development - Foinaven + Current reserves range estimated at 250-500 mm bbls * Phase 1 is based on developing 200 mmm bbls from the central part which has been appraised using wells, seismic and EWT ‘+ First oil five years after discovery (even with a one year startup dalay!); Pre-drilled wells 500m water depth, hostile metocean conditions ig Applied Petroleum Geoscience eebp Schieha Water Injection + FDP assumed solution GOR production + Lesson leamed from Foinaven to get WI early + Effectiveness constrained by ‘compartments + Leaming constrained by precipitates ~ PIT drop > precipitates, asphaltenes et. Wettablty modiication reduces relative parmesbiity ~ Mechanical damage ‘+ Invasion wil normally only be a few tens of ems at most ~ Pertorations should gat past the damage zone ~ BUT ron perforated slotted lnergvavel pack completions will have impaired rerformance ‘due to fermation damage ‘+ Quantified by skin factor ~ 2010 in vortcal, undamaged well = postive skin acter in a well with formation damage or other flow liitaton = can be negative in a high angle well Applied Potroloum Geoscience f'ebp Data Acquisition - background Data Is essential for reducing uncertainty and refining the plan but takes time (=88) to acqui quick wells for early prodn. and need for gata aa Talk to people who have been there: “Iwish we had taken some more pressure data on those, early wells” Ask yourself “Was everything we acquired necessary, justified and used? [Good justification, grounded in well objectives and exposed Never (ever) gather data for its own sake, but make sure you get what is needed GET UNDERSTANDING AND [BUY-IN TO PLAN, 2% ‘Applied Petroleum Geoscience bp Geological Prognosi Process of well planning should be: ippute sintegrated “Seismic ‘iterative Offset wells Pressure modelling ‘Componente “Stratigraphic o “Litholegtea! column ~ “Pressure profile with a seem ress hazard Planning atd Operations ‘hazards ‘Woll design ag casing program “target definition J weal ‘contingencies aweliste toot Applied Petroleum Geoscience £"sbp Drilling Program Document + document should include ~ Wl ebectuas and target coats ~ Geclosiclpresrors MD and TVD ~ Data acuisionrequenenis = Potent ting nate ‘Operational protic and sequence ~ Siectons deiing dette ~ Mud programme = Caing and Cement programme Compan dtats oF + Gooscentist esponaibl in whoo othe eat va, nd shoul spp = Detaed tse ao wt ~ sori tostat conn nd pogo 2 “ue vercl sale wl rock Keon ~ Dias ofeontrantsdtac non Applied Petroleum Geoscience Development Well Operations * Speed of drilling makes operational demands high: ~ requires close daily/eal time monitoring of well position ~ advise on changes due to unforeseen stratigraphy or drilling problems ~ need to keep well objectives firmly in view Applied Petroleum Geoscience hbo Maintaining Optimum Field Development * As development proceeds, there will be surprises, and the need for revisions — unexpected pressure depletion ~ unexpected water or gas breakthrough ~ faciitis in wrong placel * Although some revisions will necessarily be reactive, prediction of the most likely problems and attendant contingency planning is the best way to maintain project value {Harding example} = uses uncertainty assessment and risk analysis on a continuous basis, 3 Applied Petroleum Geoscience i bp Cupiagua - Discovery of fractures + Evidence ~ PLT’s show points of sharp influx = Core fracture studies ~ Matrix kh = 500 mb.ft, PBU kh = 3000 mbt (Miradon) ~ Rapid gas breakthrough along crest of field + Way Ahead = Well placement to avoid injector - producer channeling ~ Fracture modelling. Enters FFM via compositional upscaling from fine grid sector models ~ Cross-cut fractures to increase well Pl = Rapid incorporation of new data ilebp Harding - flexibility in development Production startup was ate a the platform Instaletion was diayed by weather resticons {orsovoral months {his had a sigeieart eft on froject NPV, but tere Were some berets ‘Tweens dyin plat teen gate ‘peta crop a ens caxtngeny pan Mie to ‘Ribot pay oer appa urn vag aegis te oe Smtgalty curt ing ec Hones erty ‘slewere plas shou be cromiod by he exotpoctnin ‘etchaal ty mign bo rad abo an esac ‘Sapa raceigina pa chee of 2 onto ony, ‘tat tiedhd nter ane puedo a Pay 808 Tetntoonon doves ios acer Te wat. ‘Sant he pean paves prance reson a 8 natant as bess mada ratte te np bo cargp en te poatston ety ng he ces das esas acon hs wad arses ei Schauer olecedinth et touneen monies svensot neage Inadatn tone genet ach wast oan “ninerey ands aero sens 32 Applied Petroleum Geoscience e"Ebp Harding - development fle: Sed ORIGINAL PLAN aaa provide by ancy Becy Applied Petroleum Geoscience fp Field Development Problems - 3 categories + HCIIP - inadequate appraisal - perceived uncertainty can even increase with time # Offtake rate ~ Resencir deliverability - e.g more compartments than at frst thought Well completion factors - operational issues such as formation damage, sand production, scaling, water/gas coning which reduce well productivity - may ean more wells required or lower production © Recovery ~ uncertainty over residual hydrocarbon saturation ~ areal sweep efficiency - bypassed oil, water breakthrough in HK zones ~ vertical sweep efficiency - driven by heterogeneity, Kh, perforation stategy x Applied Petroleum Geoscience epbp Pedernales Field: Production Trends a tenatonts BP fe ED tae Appliod Potroloum Geoscience febp Pedernales: Historic Production Field Oil (mstb/d} & GOR (msetistb) Bubble Point ND OF ‘CONTRACT |-—--—-Ave- Reservoir Pressure {psia} Applied Petroleum Geoscience Phase Development Applied Petroleum Geoscience ~[ Phase 2 factity on tine POG 4 daliod iebp Pedernales: Production January 1995 to December 1998 Phase 2 Sanctioned Applied Petroleum Geoscience Pedernales: why we stopped Drilling in 1998 atbp Reserves wal (ea) Cl cicte ats rsen 42 Cer wee Nn Reserws nist) HHHR Economic Wells @ 1.4 SibbI: Forward economics using an IRR of 25% and a Pe of, 4.0 with + NPV. Marginal wes tum capital cost only C1 Development Cost $2.5: Dried, completed and ted in cost to deliver $1.4/bbtit ‘wall reserves average 1.8 mst Assumes reserves statistics to date: ie secondary recovery reserves not included Applied Petroleum Geoscience 1999 - Understanding Pedernales - Lessons iebp « Improve reservoir visibility through the creation of an acoustic Impedance data set + Refine well log correlations through ties to the Al + Integration of dynamic/pertormance data = Sialic and RFT pressures ~ Production history (GOR, water cut, (gashater injection periods} ‘Acoustic Impedance “sand bodies” and wal control to define flow units ‘The Assertion Mentality + Include negative information, trend data ‘and analogues to balance risk assesment. + Do not underestimate the heterogeneity ‘fa deltaic depositional environment. Pace + Its worth waiting for a'good" 30 data set, = Slow down the pace of activity in order to assimilata new information, integrate within ‘and across teams, and apply it + Get dynamic data early and use it Continue to acquire the data. Applied Perleum Geosciene Pedernales: Flow Unit Mapping begins to make bp sense of the dynamic performance Applied Petroleum Geoscience hbo Field development problems - implications @” * Increase costs/reduce project value through deferred production * Many problems can be predicted and their impact reduced - because of the first point above it is worth investing the effort 3 ‘Applied Petroleum Geoscience febp Updating the Reservoir Model - When? ‘+ Too often and it wastes resources, too infrequently and future planning may be poor ‘+ Talk to those who have done it to get the timing right + Model must integrate all deta types (none on their own tells the whole story) ~ hydrodynamics ~ Kthosteat = biostrat ~ structural interpretation ‘= Fundamental are permeability contrasts and hydrodynamic linkages (Badami, Pedernales, Chirag, Schiehallion) Applied Petroleum Geoscience fsb Development - summary * Match uncertainty to development plan + Retain flexibility, adapt quickly as new dynamic data comes available « Expect surprises ‘* Learn from experience ~ Successes - Ram Powell, Troika, Chirag, Girassol ~ Leeming experiences - Foinaven/Schiehallion, Pedernales, Badami 38 Applied Potroloum Geoscience Field Development * We have: ~ pre-drilled the wells ~ got the facilities built and in place = brought the wells on stream with a few surprises = and reached plateau © What now? = Production & Reservoir Management Applied Petroleum Geoscience g'kbp For more Information ‘+ Upstreain Technology Homepage (hitpllupstream,boweb bp. comfutfhome} = Reservar Value Assurance System = Listof Networks (appraisal & Development, Reservoir Characterisation & Modeling! * Angola Deepwater Production ~ bntnfoncolado bo webb com ‘+ Well Value Assurance System ~ hhttelut boweb bp.comMWVAS/defa + Non-Conventional Wells = htte:lupstream bpweb bp.com/ut/home.asa7id=139 Applied Petroleum Geoscience eebp 8.1 Reservoir Management & Production — Module Content * Introduction + Fundamentals of Reservoir Engineering + Reservoir Surveillance - how do we get dynamic data + Reservoir Simulation + Well Problems and Solutions = RVAS + Case Examples ~ Cupiagua, Foinaven, Prudhoe + Reserve Growth Applied Petroleum Geoscience f'kbp Reservoir Management * The fundamental activity after reaching plateau production * Objectives: ~ Maximise economic value of remaining reserves = minimise capex and opex consistent with sate practices + Achieved through: ~ monitoring and predicting well performance + Compared with early development ~ Less static geological date acquisition = Dynamic data acquisition increases ~ focus shifts to Operational support and problem well analysis to replace well planning end evaluation ~ Emphasis on reserves and productivity rather than HCIP Applied Petroleum Geoscience febp Reservoir Management cycle = Keeping the model live, updated and relevant so it can impact on optimal production of remaining reserves ‘Applied Petroleum Geosconce "bp Additional Dynamic Data available + During early development the only dynamic data available is test cata + During Reservoir Management, prolonged flow and pressure data from a number of wells mean we can build a more robust model for predicting future performance + We aim to describe and predict the parameters which will change during field life and the fluid flow controls: = Water saturation, Reservoir pressure, Relative permeability + For optimal reservoir management, cbserved production history (drainage, sweep, displacement ang flow patterns) must be explained and understood ~ core, og, seismic, outcrop, pressure, flow, fluid monitoring data, production information and simulation made! output = no single method is adequate on its own Applied Petrolourm Geoscience f'ebp 8.2 Fundamentals of Reservoir Engineering What do reservoir engineers do ?? + Calculate volume of hydrocarbons inital in place + Determine the volume of oll and gas recoverable by primary methods + Determine the rate at which the oil nd gas willbe produced ‘* Find methods of improving recovery ‘+ Value the produced hydrocarbons Applied Petroleum Geosclance Pb Fundamentals of Reservoir Engineering ‘+ Types of Accumulations / Drive Mechanisms ‘+ Principal Parameters of Fluid and Rock Properties ‘+ Fluid Movernent and Displacement Applied Petroleum Geoscicnee febp * Retrograde gas-condensate * Under saturated oil * Saturated oil - gas cap ‘Applied Petroleum Geoscience z"ebp Sat Hydrocarbon Fluid PVT Properties (Ol PVT Propertios Gas PVT Properties Applied Petroleum Geoscience fsbp Reservoir Drive ‘* The processes which drive the reservoir fluids from the reservoir into the production wells * Primarily a function of the energy contained within the rock and fluids (oil, gas and water) * Reduction in pressure causes expansion; measured as compressibility (C = -1/V * dV/AP) Applied Petrotoum Geoscience £'sbp Solution Gas Drive — Depletion Di Energy from expansion of oll, connate water and rock matrix as pressure is reduced. Recovery typically 5-30% for oil reservoirs. Applied Petroleum Geoscience fpbp Gas Cap Drive provides energy for production. The larger the gas cap the more energy ble. Recovery typically 20-40%. Discovery Condition et f" Applied Petroleum Geoscience 2 bp Water Drive Occurs from expansion of large underlying aquifer (>10 times the oit volume} that is well connected to the oil zone. Recovery typically 30 - 70% for oil reservoirs. Pope ess —= During Production Applied Petroleum Geoscience febp Other Primary Drive Considerations * Gravity Segregation - oil, gas water distribute in the reservoir according to their densities ~ More impact the higher the dip * Compaction ~ collapse of rock fabric as a result of pore pressure reduction, providing energy for fluid expulsion + Combination Drives ~ more than one of the drive mechanisms occurring simultaneously Applied Petroleum Geoscience sbp Gas Depletion Drive * Straight pressure depletion is very efficient way to develop a dry gas reservoir as most of the gas can be recovered through expansion alone * Ultimate recovery is dependent on reservoir abandonment pressure - typically 50 - 80% if compression is installed * Can result in valuable liquids being left in the reservoir Applied Petroleum Geoscience + Darcy's Law fluid flow results from a pressure cifferential ~ various forms of equation For racial incompressible flow. (reeunkn 141.2 Bo Laer) crate, ses recent pressue, pt ree elnive danage radius. rvewstbnre edu, ®| Applied Petroleum Geoscience febp Principles (contd) + Relative Permeability whore more than one fad is present, the permeability to. sinala phase is Feduced by the presence ofthe cther phase. = relative permeability is a function of pore geometry, aturation and ‘ettabiity = whole saturation range of rel poem Soos not typeally exist. Ata pace scale, conditions change from fy to trediciby ol saturated without ening saluations as water + Fractional flow - the proportion of teach fluid phase flowing at a point in the reservoir Applied Petroleum Geoscience feb Pp Principles (contd setae er LR ~ capil foroas which heap the fads static within pores must be ‘overcome betore water can displace ie fl in the reservoir imbibition ina I ‘water wot eyeter) 1. = The fores required todo this i capilary pressure. Cap pressure is 3 fluid contact angle, pare goomety, pore threat size) + Cala, Passe | | = Capitan pressure curves iSCALY i Used to define satureton values | ‘bove 8 ree water evel and pore | throat sie dstnbutions | Applied Petroleum Geoscience £tbp Cap Pressure data - Tambar © Sw data from = Archie equation - fight blue ~ Core Sw measurement - yellow ~ Mercury Capillary Pressure data (Curves) * Used to define FWL in Ula/Gyda satellite Applied Petroleum Geoscience Rel Perm Exercise Applied Petroloum Geoscience Sweep efficiency - mobility ratio, perm profile ‘+ Sweep profilo and stability rests gravity verical K Uetroutionaifect destacernent ficiency ‘* piston like displacement if produced fluid more mobile + note impact of gravity which can cancel out mobility effects: \woter tends to snk in a ollges resort, soit high germ atthe base of the reservar cay water breakthrough may occur ~ (deal (or drive isto have best parms atthe top Coaarsening up ‘ ie bp wesktvoog ageing Applied Petroleum Geoscience fbp Volumetric Sweep Efficiency ‘ck YOLUME FLOODED * TOTAL ROCK VOLUME x E, x Ey fp = Me EpEgEy ener Ng * OIL IN PLACE AT stan Ey * irr pismtaceasny eFFtcieKey Ey = vERricaL erercteney Eq * AREAL svoce crFTCIEICY Hp = o1t toduce Applied Petcoleum Geoscience "bp Unit Displacement Effi ney + Fraction of oll recovered from that pore volume which is invaded by an extemal displacing fluid (water) E,= So removed So initial * Based on substantial theory which has been well Microspeopic Displacement demonstrated in the lab. Applied Petroleum Gooscionce Vertical Sweep Efficiency + Fraction of pore volume in the vertical dimension which is invaded by an external displacing fluid, © Sweep profile is irregular due to permeability stratification * Theory based Deserpton of Verical Hetwogeneily Applied Petroloum Geoscience Areal Sweep Effi ney * Fraction of the total area which is swept by an external displacing fluid. + Influenced by the geometry of the system, areal heterogeneity and mobility of the fluids, + Generally limited to empirical correlations ra Applied Petroleum Geoscience Areal Sweep Efficiency gs 6 "EF “onteakTHaoucn, 83 AREAL. SWEEP EFFICIENCY MoBILITY RATIO Fig. E6 Arcal yeep elficeney at water bresktheoush, five Spo putter, Applied Petroloum Geoscience Recovery Factor Exercise " Applied Petroleum Geoscience f'ebp Esti ating Oil Recovery + Volumetric equation with a recovery factor 7788 AhG (1 = Swi) Se x re Boi Rate vs Time Decline Curve Performance Data —decline curves ~ material balance relationships Rate (og scale) HIP = produced + remaining Applied Petrotoum Geoscionce g'ebp Material Balance Equations eee ae Oil w= NP(B0+ (Re ~Rs) Ba) -(We - Wp Bw) : Bti rae Bt- Bti ce (9 - Bai) ———Ehangoin 00 938 Gag Veiz YE B9-We= We BD emer omte (Bg - Bgi) t Applied Potroleum Geoscience febp Improved Recovery Methods used to improve oil recovery by injecting fluid into the reservoir * Conventional + Water or gas injection for displacement or pressure maintenance Enhanced - Thermal é SQW = Chemical So - Miscible fluids Applied Petroleum Geoscience cae] bp Injection Well Positioning 13 Applied Petroleum Geoscience 8.3 Reservoir Surveillance * Methods * Simulation - how and why * Problem wells Applied Potroloum Geoscience £¥bp Monitoring and Measuring Performance + Non-interventive = inexpensive, as no production break ~ performed frequently + Partially interventive — break in production, but no well entry ~ linsited deferred production cost = more expensive, more risky, less frequent + Interventive — requires well entry with righvireline winchjtrame, so may be impossible for subsea wellheads = requires wel to be killed with mucfrine ~ very expensive, risky Applied Petroleum Geoscience f}bp Non-Interventive monitoring © Daily or weekly measurements of: ~ Tubing head pressure/temperature (flowing or shut in) — water cut measurement ~ produced water/oil chemical analysis = produced solids analysis ~ tracer analysis ~ bottom hole pressure/temperature (permanent sensors) — well production flow tests ‘Applied Potroloum Geoscience febp Wellhead Monitoring (non-interventive) * Tubing head pressure is @ sonsitive but ingirect indicator of reservoir pressure, It is affected by = ciligashater separation/bcd up in ting = choke size ~ tubing condition (restitions ete) = separator prassure back pressure) choke fully open + Analyses water cheeisty -tormationniaction ~ ol chomistey -fingererinting ~ injscted tracer olds formation arsine or corosion products? Applied Petroleum Geoscience E¢bp Production/injection testing * Uses a test separator under normal flowing conditions or at varying tubing head pressures {to obtain P//il data) ~ Plis production rate/drawdown + Provides GOR and water cut data « tests typically last 6-12 hours * An opportunity to see how specific wells are performing in detail Applied Petroleum Geoscience bp Partially Interventive * Requires interruption to production, but no welll entry » Types of monitoring ~ Surface recorded pressure buildup/falloff surveys — monitor changing reservoir pressure, productivity and skin factor = used typically when there has been a change in well performance to find out why. = Surface recorded interference testing Applied Petroleum Geoscience fybp Interventive measurements © Requires well entry = Methods ~ Running Pressure/temperature gauges ~ Tubing diameter checks with caliper survey ~ checking well hold up depths ~ running production logs © What they provide ~ changing reservoir pressure and flow allocations ~ changing fluid saturations of perforated and cased intervals = identification of wayer/oas entry zones ~ identification of sand production zones Applied Petroleum Geoscience Pybp Cased Hole logging examples Applied Petroleum Geoscience Cased Hole logs Applied Petroleum Geoscience Pressure Transient Testing + Method to estimate the following about a well 5 Reservoir pressure Permeability Completion efficiency ~ skin ~ Interference ~ Reservoir geometry a Applied Petroleum Geoscience bp Non Conventional Reservoir Monitoring * Microseismic monitoring e.g Valhall * 4D seismic eg. Draugen Applied Petroleum Geoscience ib Pp Draugen 4D 70 att Bats 2osmba hallow : lap shows Sancstone, high Teservorteve Al porosity, ight ol ‘ference between 1990 (pre production) nd 1990 re Shoot Biference Interpreted as water swept Reservoir model Store aD shoot fundamental new Suggested flood view on sweep, front lose fo two Sonstratned by producers ifow borer S"dacsion needed on location of Sth platform producer im Kegsin,keggnj@op.com Applied Petroloum Geoscience bp Updating Static Reservoir Description * Reservoir Subdivision ~ Correlate layers, fioldwide if possible ~ Prepare @ fieldwide grid of cross sections ~ Absolute permeebility maps, overburden corrected ~ Construct Isocapacity maps - layer productivity maps describing Kh variation ~ Construct Vertical Flow berrier maps (see Prudhoe example} ~ Construct fault transmissibility maps Applied Petroleum Geoscience fybp Prudhoe - vertical K barrier map Applied Petroleum Geoscience f'ybp Flow Surveillance * History of each weil catalogued to track fluid movement = well performance history (flow, pressure ete) = well status history (timings of perforations, workovers etc.) — pressure test and production logging history ~ changing hold up depths with time * 4D Seismic = time lapse/repeat survey ~ increasing potential of this method Applied Petroleum Geoscience f'bp Surveillance - example + Allwelis show similar bubble point behaviours at same time - indicates good communication between wells Applied Petroleum Geoscience £pbp Dyna Reservoir Description ae ‘Geological and Potrophysist data Preditons about Na = e Deseription, Roop Ive Applied Petroleum Geoscience 8.4 Reservoir Simulation Models + Numerical Reservoir Simulator = reservoir divided, digitally, into grid blocks, each assigned properties fiuid flow from block to block governed by principles of Material balance and fluid flow (Darcy's law) ~ most simulators can solve large sets of simultaneous differential equations which numerically describe the flow of oll, gas and water in 3-dimensions = Effects of natural or injected water/gas influx, changing fluid properties and phase changes can be modelled — Requires numericat description of the static reservoir model Applied Petroleum Geoscience £"tbp Simulator model building = Required data shown > ‘+ Geologist should ensure model is, geologically reasonable (cooperation essential) cena ‘+ Simulator arid blocks are typically quite targe 100-200m square, fow 10's of m thick, and will require averaging of properties, Applied Petroleum Geoscience ai bp Simulator model building # Averaging - if incorrect ~ geologically unreasonable fluid tlow + Initialisation ~ selling initial saturation and ~ mismatch between simulation and static Pressures ‘model HCIP ~ checking, segmert by segment, HIP simulator vs. static mode! + Modet layering must account for Ener = hydraulic reservoir subdivision HouP ~ layers of contrasting perneabiity ~ size limitations (computing power) erate nue eta i i ; ~ Grid too coarse + Faults must be honoured correctly ett atralatae ~ the use of FWA plis ideal saturation profiles rather than ‘maps which honour the real variability Applied Petroleum Geoscience sop Ri unning the simulator model + History matching trative process invlving comparison with tea eld history and rofnament of the emulator to improve the match nends understanding and experiance 28 thera are mary variables that could be madktod in ~ changes must bo goologialy vabd ~ history matching ean ba used to refine the static ‘model + Prediction = one or two year steps ~ modeling of reservoir management ops dunng that time (racompletons, workavers,shutins, ariel install, infil iin ete) ~ iterative process, eaviow saturation ané flow vector maps, check for geology valid, update geological ‘mods - Oop Simulator models - who can help? * 3DMOD network Run by Ray King in Aberdeen Applied Petroleum Geoscience "bp Cupiagua - Reservoir Management lessons * Challenges ~ Condensate banking which hits permeability ~ the discovery that fractures were very important — blow-down or gas cycle - how to maximise the liquids recovery Applied Petroleum Geoscience £'Ebp Cupiagua Naturally Fractured Reservoir? ‘+ Evidence for importance of fractures, = PLT's show points of sharp influx = Core fracture studies = Matrix kh = 500 mD.ft, PBU kh = 3000 mD.ft (Mirador) ~ Rapid gas breakthrough along crest of field + Way Ahead ~ Well placement to avoid injector - producer channeling Fracture modeling. Enters Full Field Simulator model via compositional upscaling from fine grid sector models ~ Cross-cut fractures to increase well Productivity Index (Pl) ~ Rapid incorporation of new data ‘Applied Petroleum Geoeionce fh bp Cupiagua - Gas Condensate Production REDUCTION IN ROCK QuaLiny DUE TO CONDENSATE Applied Potroteum Geoscience a bp Handling of Uncertainty + Rapid Learning = Surveillance strategy to get early data. Concentrate strongly on most mature wells and areas. — Reservoir model must allow rapid update in response to new data ‘Move to simpler models to allow this - keep the objective in mind ‘when designing the mode! — Natural fractures: challenge is to move from being “non-fractured* to correctly managing a highly fractured reservoir in 1 year. + Uncertainties that Res — Natural fractures. = Gas breakthrough and how to manage it. — Unconventional scaling, Applied Petroleum Geoscience f'ebp Cupiagua lessons from production ‘+ Cupiagua was rated the “most complex” field in the portfolio. Then came the natural fractures + Condensate banking is a very big impact. Challenge is to quantity early. We had ta make some of them, but the tools do now exist + Natural fractures: “cannot live with them, cannot live without them”. Challenge is to learn and adapt quickly. * Gas displacement management. What can we gain from an active and innovative strategy? + Cupiagua was “unique” in BP. Big gains from sharing knowledge with counterparts in the new BP Amoco, a Applied Petroleum Geoscience 8.5 Problem Wells ‘+ Types of problem ~ Limited oil or gas production ~ Excessive water or gas cut ~ Mechsnical or processing problems ‘= Possible actions ~ Remedial action - workover, freccing, squeeze etc ~ Change the reservoir management plan ~ Acquire data to further investigate cause of problem + Do analysis (low cost) before starting remedial action(expensive)! Applied Petroleum Geoscience 2" bp Well Problems | | | | | | Applied Petroleum Geoscience Problems and Solu ebp ins - examples ‘= Limited production due to low reservoir pressure ~ batch produce the well ~ more injection support = install acti lift + Limited production due to low effective permeability ~ hydraulic fracturing = instal artificial ft ~ non-conventional or horizontal wells * Limited production due to formation damage ~ remedial actions (treatments) ~ preventative measures * Limited production due to tubing restrictions (scale/sand) ~ scale inhibitor or dissclver treatment ~ reduce production rate or install ‘screens or gravel pack (sand) ~ install corrosion resistant tubing Applied Petroleum Geoscience aiebp Problems and Solutions - examples heterogeneity) — mechanical fluid shutoff = reduce production rate = mechanical fluid shutoff * Excessive Gas and/or water cut due to encroachment = seal off formation using packer or plug * Excessive Gas and/or water cut due to fingering (K ~ resin/cement/polymer squeeze = modify future perforation policy in injectors and producers + Excessive Gas and/or water cut due to coning ‘Applied Petroleum Geoscience fb Pp Reservoir Management * Intorduction * RVA {Reservoir Value Assurance) + Examples « Reserves Growth Applied Petroloum Geoscionce bp Risk and Uncertainty in Reservoir Management ‘* Major concerns in reservoir management are ptoducing rate and remaining reserves ? + Two important issues are: ~ Remaining reserves uncertainty ~ Incremental versus accelerated production Applied Petrotour Geoscience £'kbp Remaining Reserves uncertainty *+ percentage uncertainty regarding reserves can and often does increase with time + depends on production decline rate versus improvernent in the accuracy of ultimate recovery estimates «+ This uncertainty is critical in late field lite when abandonment decision arises sbandorenant too earyfate wil erode project NEU Applied Petroleum Geoscience feb Incremental versus accelerated produ ‘= Aninfill well, recompletion oF workover must be evaluated against | other candidates ~ value in terms of cost and potential reward ~ potential coward wil be subject 10 Uncerinty ers * Incremental production -aditional reserves vs. accelerating existing reserves Ta ‘© Incremental is worth more as there is no loss in future production Applied Petroleum Geoscience febp 8.6 Reservoir Value Assurance + Asset of processes and tools to optimise management of our producing fields = Itprovides. 2 framework of required elements &links = a check list as a self-help guide in recognizing gaps = an ‘intaligent index’ to ~ guidelines & advice on appropriate tools, ~ links to best practices and leaming = links to case examples, experience {information & skills) + As itis used, it will also provide vehicle to record progress & capture learning Applied Petroleum Geoscience f'ebp RVA Framework RVA Reservoir Value Assurance ‘Nopliod Petroleum Geoscience fsbp RVA: Overall process & elements Pa z [Survncef*" —resnney] Ames Plan | Profan | Flan SKY cvP Stage Aatity sinker ee (ain Blan Plan Lee < view */ongoing roduc bo Cieseinal Cae Exp. Forum, Beara | arcu ce Conon AVA Mag} technical 7 Quality, quality ' Ranking, Parner matis|—frargeted Bench- marking External Metrics eo waly Anplied Petroleum Geoscience f'¢bp RVA summary egupieg Sorte mae ‘Applied Petroloum Geossionce £'fbp Depletion Plan + Life of Field Production Plan ( to Reservoir Technical Limit ) + Reservoir Management Plan + Performance & Learning + Reservoir Driven HSE impacts Understanding Base & + Reservoir Surveillance Plan Growth Opportunities “Technology Plan ~~~ + Reservoir Operating ooo £"ebp Life of Field Production ‘An Intagrated plan for delivery of Todays Production & Tomorrows Growth + Base, Options, Possibilities & Barrier with associated Capex, Opex and other requiroments, constraints, Risks & Uncertainties. and also sets context of historic development Key Elements + Base Production + Production Options + Production Possibilities + Technical Limit (inel. sequence & ‘dependencies ) VAS Links: + Reserves Management and Production Foracasting a + Options Generation ‘goo o1 0 02 Gt Gh 08 OF aR oF aM1D ‘& Evaluation ‘Tracking Production Elements Applied Petroleum Geoscience a bp Reservoir Management Plan Guidolines for reservoir management activities, covering operating practices for + Reservoir (target reservoir pressure, offtake strategy, ...) + Well ( offtake restrictions, completion philosophy, ...) + Drilling ( depleted zones, completion guidelines, ...) + Facilities & Export ( operating range, injection, GIL optimisation, ..) to deliver the depletion plan and manage risks Key Elements Hydrocarbon Resource Definition & Distribution Recovery Mechanism + Reservoir Uncertainty ‘Statement and Management + Reserves Management VAS Links: + Reservoir Description / Characterisation & HCIP +: Uncertainty Assessment +“ Reserves Management Identity Technical & Commercial Basrors ‘Applied Petroleum Geoscience 2's bp Performance & Learning Ensuring future Team members enjoy continuity of purpose & wider ‘Company can access learning Key Elements + Targets ( Pl metrics... dev§ / bos, lifting$ / boo, Technical Limit. + Motrics & Benchmarking ( Reservoir Complexity and Analogues ) + Variance from Plan & Learning + Key Asset Data ( Sharing } "tain Aves © Rage ‘The above elements apply to each of the Depletion Pian elements: RVAS Links: + Databases | + Drilling Outcomes. + Reservoir Surveillance & Performance Analysis: os WED EDS OED yt Paar ! Calibrating Well Performarce rooney 98 3 ws Applied Petroleum Geoscience febp Reservoir Driven HSE Impacts ‘Assessment of Health Safety & Environment impacts, iesues and risks present and possible in delivery of the Depletion Plan Key Elements + Life of Field energy balance + Life of Field emissions profiles (Green House Gases } + Drilling & Completions safety & integrity + Operational safety & integrity RVAS Links: “HSE Planning & Foresight + Reserves Management + Options Generation & Evaluation Dalling & Completions Safety Applied Petroteum Geoscience £'sbp Reservoir Surveillance Plan Plan to acquire key reservoir description and performance data in support of the current activity scope and the ultimate depletion plan Koy Elements + Surveillance to protect the base (roserves Irate J well intogrity ) + Survelltance to provide options & possibilities + Surveillance to underpin Technical Limit VAS Links: "HSE Planning & Foresight] 1300 wells; current production 850,000 bpd Applied Petroleum Geoscience febp ing prize Prudhoe - remi + 4billion barrels (potentially a further 2 billion accessible with nev, technology) Substantial gas reserves Cost reductions = Annual lifting costs $600milion in 1996; $360milion target for 2000 = diiling costs $7mm/wellin 1977; now S2mmfequivalent well Prudhoe could produce profitably for another 30-40 years Thats why Reservoir Management is important Applied Petroleum Geoscience 8.8 Reserves Growth sigbp ~ modified development = future drilling ~ facilities upgrade ~ improved understanding ~ technology breakthrough ~ improvement in economic conditions. + Reserves added through: + Reasons for reserves growth — Improved understanding of the reservoir (greater potential for reserves growth in complex fields) ~ Technology - new or improved — Insufficient appraisal + Under-appraised fields = value of growth always less than the value which would have resulted from better appraisal Applied Petroloum Geoscience tebe Reserves Growth - why important? + In an ideal world ( perfect appraisal, development and management) : = reserves growth would be in response to new and improved technology or changing economic conditions * In the real world, we always gain better understanding through field life (which can add to reserves), and = economic constraints often force rapid field development with less than ideal appraisal = jn complex/highly heterogeneous reservoirs, it may not be possible to appraise the field adequately to define the best development scheme = looking for reserves growth will always be an important element of realising maximum project value Applied Petroleum Geoscience Types of reserves growth aebp |* Growth by revisions of existing reserves requires — better understanding of connectivity, geometry and ‘uid movement = quantification of heterogeneity, connectivity ‘and reservoir quality we ness @GOO seestonsn vee weurees ©D |. Growth by extensions requires ~ improvements in trap |_(c0"y Teams Line Delivery frinidad Algeria “-yenezucla ie bp Upstream Executive Committee Strategy sRosource Allocation Upstream Performance Brazil — angola! (GM ean jscinom eer Functional Delivery Exploration Major Projects Drilling and Complotions Reservoir and Wells Operations L s ibp + Challenge Great + Global Synergy Operator | - Learning Taare + Technology Development and implementation } Alaska, poe 6 ia : Bae UK Norte? Norway % Eanad>. Nort NOTA orbaljan * Lower 48. ed Pakistan SNe Gott srinidad “'9°® Egypt, Gul China Mexico 1 states V8 eo aig Menezucla {Mina pa e Madonesia aril An cee Angola Australia ‘Southern ty o> Cone C Agenda ‘ #5 bp + Organisation for Functional Excellence + Measures and Targets + Decline Management + New Well Delivery & Wellwork + Depletion Planning and Pushing Reservoir Limits + Technology Planning + Assurance Performance Information #5 bo_| Line Performance Reports Functional Performance Reports oo Teaaree ae Bana Saas ao = eee Taig Sones Aggregation across eee PUs for activities that riioernieets | Performance deserve uncon retucton Unie performance current period [a Coneat Foret < Gurreat_Forecast_ Measures = ibe — Standard set of functional metrics tracked across all Business Units Performance ~ Enables comparisons to identify opportunities ~ Local measures used to support “Plan - Do - Measure - Learn” cycle + Benchmarl 9 ~ Key Assurance tool, also helps identify upsides — Physical Data & Reservoir Performance Database ~ Reservoir Complexity vs Recovery Factor ~ Maturity of Depletion Planning ~ External Benchmarking Interventions to Deliver Targets te bp Reservoir Management is about Achieving Outcomes Production Input Variance Forecast Forecast (st Jon) (sanction) Production Management Delivery Gist Dee) (life of iets) Tracking Production Delivery vs Forecast "6 bp ‘Annual Average (mboed) [Production Dolivony ve Plan by Business Unit J) = Good forecasts enable realistic targets to be set + Tracking facilitates early interventions fo ensure delivery ty Production Forecasting and Tracking a bp ‘Common Process used by all Business Units, matched to financials Under Sain bal Operational || Targets @ Production ee Chficency ||_Gptons { fenee etermance || | eontrect “Mea Uncertainty range Production Rate wal eae acy ue Seg et ‘ealege Opto oa cose Reservoir & Wells Great Operator Themes & bp Inputs G0 Team ‘Outputs Wellwork 2 | Wellworks Challengin : $ pata O> sa produrtion is Benchma 35 Reduced u Ce oestne Ranking cnete EB Menaoement > Prioctsing gf ‘Meneged” g Pushing Sharing a Reservatr i= decline Liite/beplton 2 mae Regional Reserve adds £, Motries BE devetoomen’ = > | svauere Future options E2 Walling state generated ge Margin S organisational syste Right people, ‘Seeaty Right place Tracking Toots RMI, WML, WETS, PL Agenda 2" bp + Organisation for Functional Excellence + Measures and Targets + Decline Management + New Well Delivery & Wellwork + Depletion Planning and Pushing Reservoir Limits + Technology Planning + Assurance Understanding “True” Reservoir Decline as bp 20% 1 year underlying *Wiatorfloed 2s injection managoment ‘Most ofthese activites are shorttorm, and area ‘protection Injection Excellence as bp Stage 4 Now Capital ‘Well Level Mgt ae well jection torgets Stage 3 Optimisation Sebring Field Injection Manogemen Stage 2 Quick Wins Strategy & Management Plan Injection & Surveillance plans matched ro Depletion Plant "Target Prestares & Vordage Replacement Link to Fecilties Copacity Stoge 1 Decline Management Example as bp Harding Platform Production 2001 - 2002 g i engi Mardi ayOh G1 Sek NonOhJenG2 erg? Hoye she Cross Discipline Teamwork i's bp Production Technical Limits ...... identifying & Removing Production Constraints stem Pressure Mat 4b Reser (e.g. coving) 2 Serd-contel A.p Separatar 28 Ersson top Export 2 P Hyostate AAP Tebing Feition P Reservoir = actual 2 Draw-down Agenda 2% bp + Organisation for Functional Excellence + Measures and Targets + Decline Management + New Well Delivery & Wellwork + Depletion Planning and Pushing Reservoir Limits + Technology Planning + Assurance Development Well Delivery POST WELL EVALUATION RE OPTIONS IN 10 iz bp Wellwork Tracking at a job level gives granularity to identity improvements Wollwork Scorpion - 2001 - increasing granularity Curl Ana Ay Rats Ibo Wellwork Job types tracked to identify focus areas / technology opportunities. Slept ds cma see il Pushing Reservoir Limits & Depletion Planning is bp Depletion Plan One Pagers Management indox {Focus and Quality through Self Production. Assessment) Depletion Plan Example Be00 Ero Ke Ue \4

You might also like