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SPE 102804

Successful Application of Six Key Elements in Integrating People and Technology


Toward Quality Achievements of Angsi Field Development Team
Rahimah Abd. Karim, M. Shaufi Dahlan, and Khairul Annuar Noordin, SPE, Petronas Carigali Sdn. Bhd., and Harun M. Noor,
SPE, ExxonMobil E&P Malaysia

Copyright 2006, Society of Petroleum Engineers


This paper discusses how the six key elements have
This paper was prepared for presentation at the 2006 SPE Annual Technical Conference and contributed to the successes of Angsi Field Development
Exhibition held in San Antonio, Texas, U.S.A., 2427 September 2006.
Project.
This paper was selected for presentation by an SPE Program Committee following review of
information contained in an abstract submitted by the author(s). Contents of the paper, as
presented, have not been reviewed by the Society of Petroleum Engineers and are subject to Introduction
correction by the author(s). The material, as presented, does not necessarily reflect any
position of the Society of Petroleum Engineers, its officers, or members. Papers presented at The Angsi field is located in the Malay Basin, about 106 miles
SPE meetings are subject to publication review by Editorial Committees of the Society of
Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this paper
off the East Coast of Peninsular Malaysia in a water depth of
for commercial purposes without the written consent of the Society of Petroleum Engineers is 230ft (Figure 1). It is the largest integrated oil and gas
prohibited. Permission to reproduce in print is restricted to an abstract of not more than
300 words; illustrations may not be copied. The abstract must contain conspicuous development in Malaysia1, with four drilling platforms and
acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O.
Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.
one production platform. Angsi is a joint venture development
between PCSB and ExxonMobil Exploration & Production
Abstract Malaysia (EMEPMI), with the field being operated by PCSB.
Angsi is an integrated oil and gas development project in The major oil bearing reservoirs are the I-35 and I-68 sands,
offshore east coast of Peninsular Malaysia. It is one of the while the major gas bearing reservoirs are the I-1, I-85, I-100
biggest oil producers in Malaysia, contributing one-sixth of and the tight K-group sands.
the total national daily oil production. During its planning and
execution stages, the project has had many successes and
positive outcomes. It has been recognized as the model of
success for all domestic and international operations in
PETRONAS Carigali Sdn. Bhd. (PCSB). ANGSI
The uniqueness of achievements in Angsi project relies on FIELD
the successfulness of integrating its people and technology.
With the recent skyrocketing oil price, the trend has been to
chase for additional reserves and maximize crude production,
and make it happen by whatever means possible (new
technologies, joint ventures, aggressive recruitments etc).
However, many projects failed to achieve these targets,
despite being equipped with niche and advanced technologies.
Angsi project has successfully overcome these obstacles.
The secret relies in the six key elements that have been
nurtured in the working culture of every team member, which
are; People, Focus, Integrated Approach, Planning,
Communication and Feedback Loop. With this unique culture, Figure 1 Location of Angsi Field
it has allowed the team to achieve major successes over the
past 5 years. The development team comprises people from diverse
Among those is the successful implementation of the background. They come from either PCSB or EMEPMI, being
largest platform-based hydraulic fracturing program multinational, multicultural, with various range of skills and
worldwide, and first in Malaysia. This allows the development experience level. With this diversity, forming an integrated
of 0.5 Tscf gas from the otherwise uneconomic tight gas team within a cooperative environment is not an easy task. In
reservoir. The team also managed to increase its reserves level addition, there were risks involved in developing the Angsi
2.5 times from its initial size. Consequently, it increases field, considering the high level of uncertainties during the
Angsis daily production rate from 65 to 115 Mstb/d. Finally, initial stages of development. The field also requires the
Angsi project successfully reduces its unit development cost implementation of new technologies to optimise production
(UDC) by 67%, lowering it from 5.1 USD/boe to 1.7 and reduce development costs. These situations create a real
USD/boe.
2 SPE 102804

challenge for the team, which is to integrate between the of artificial lift. The average recovery factor of the field is 37
people and the technology, besides minimizing the risks. percent.
Angsi team has formulated six key elements to overcome
these challenges. These are; People, Focus, Integrated Element #1: People - Right mixture with open
Approach, Planning, Communication and Feedback Loop attitude
(Figure 2). All these elements have been blended together and
nurtured in the working culture of every team member. They Open attitude. The first key element of Angsi success is
play critical roles in allowing many major achievements of the people. Angsi team believes that success starts with having the
development project. right people. Right people mean the ones who demonstrate the
right behavior, which is open attitude. Angsi team defines the
open attitude as having experience and specific skills;
People Focus Integrated practicing assertiveness and persistence; and willing to teach
Approach and coach each other to create cooperative environment
(Figure 4).
Key elements
leading to success 1. People
Feedback Cooperative Wide Range
Planning
Loop Environment of Experience
Communication
Open
Figure 2 Six key elements leading to Angsis success Attitude
Willing Various
Field development overview Coaching Skills
The field development plan (FDP) covers the development of
five main areas of Angsi field. These are the Main, West, Assertive/Persistence
North and South, which have been developed, and another one Figure 4 Key element no.1, People
future development, the Southwest area. The Angsi complex
consists of a central processing platform (ANPG-A), and a Experienced and multiskilled. Angsi field development
bridge-connected drilling/riser platform (ANDR-A). The team comprises people representing multidiscipline, with
complex is the host and processing platform for the satellite various levels of experience and skills. These disciplines are
platforms, Angsi West (ANDP-B), Angsi South (ANDP-C), subdivided into surface and subsurface. The subsurface team
Angsi North (ANDP-E) and the future Angsi Southwest includes the geologist and geophysicists (G&G), reservoir
(ANDP-D). Figure 3 shows the Angsi platforms layout. engineers, drilling engineers, production technologist, and
completion engineers. For the surface team, it consists of
G U N T O N G -D S E L IG I - A facilities and operation engineers. If skills are not available
within a discipline, the team will hire consultants or seek
A N D P -E
professional advices from the company experts. With the right
mixture of core skills, Angsi team is able to condition the
5KM

32

55 development to minimize the effect of uncertainties.
2 4 8

GAS TO KM CRUDE
ONSHORE TO Assertive and Persistence. Each new opportunity imposes
SLUG CATCHER T A P IS
certain amount of risks. In Angsi, the culture is to take up the
10

AN D R -A PUMP

6KM risks and treat them as challenges. Every team member is


8

32 16
K

16 M
M

44
K driven by persistence and assertiveness in questing for results.
1 6 F W S
With this positive attitude, the team is able to move forward
10

8KM
and implement the opportunities despite the challenges.

9K

A N D P -B Coach and Cooperate. Everyone in Angsi is willing to


A N P G -A
M

help and coach each other. This facilitates everybody,


A N D P -D especially the new comers to become early contributors.
(F u tu re ) A N D P -C
Inevitably, some of the Angsi team members changed from
Figure 3 The platforms layout of Angsi field year to year as a result of promotion and job transfer.
However, the team is still able to sustain its open attitude
Development drilling commenced in November 2000. By
throughout the years. This continuous cooperative
the end of drilling campaign in September 2005, a total of 95
environment makes them very efficient in pursuing their
wells had been drilled and completed as dual or single
common objective.
completion. There are a total of 74 oil strings, 64 gas strings
and 37 water injection strings. The Angsi water injection plant
Case study. A clear example to illustrate this is during the
is located on the ANPG-A platform, and has the injection
Angsi hydraulic fracturing campaign in between 2000-2002. It
capacity of 140 Mbwpd. Water injection is required to sweep
is the first tight gas development in Malaysia2, and to our
the reservoirs efficiently for high production rates and high
knowledge, being the worlds biggest platform-based
ultimate recovery. Gas lift facility is also available as a means
hydraulic fracturing operation to date2. Multi-staged propped
SPE 102804 3

hydraulic fracture treatments are required to improve well Element #2: Focus Towards achieving common
deliverability and to mitigate detrimental effects of condensate goals
dropout on well performance1. The experienced frac team was
formed by merging the experts from the subsurface team of Common goals. The success of Angsi is heavily dependent on
PCSB and EMEPMI, and the fracturing consultant groups. the team that can focus on common goals. Being
Since it was the first large scale hydraulic fracturing multidisciplinary team, each discipline will have its own
campaign job conducted offshore Malaysia2, the team realized objectives. For example, during planning and drilling a well,
that they were actually moving into an unknown territory. geoscientists and reservoir engineers may have different
There were also certain apprehension regarding the success of objective, so as the drilling engineers and the production
hydraulic fracturing, given the uncertainties, risks and technologists. Focusing on common goals ensures they are
opportunity costs were very high (approximately USD 150 aspired to accomplish the same objective. And this requires
million). Among the operational challenges were; four components; setting targets, sense of ownership,
1. To ensure good quality control of fracturing fluid and supportive culture and motivated people (Figure 6).
reliability of fracturing equipment performance throughout the
fracturing phase,
2. To have reasonable prediction and excellent diagnosis of 2. Focus
fracture geometry, and
3. To drill deep and extended reach wells (>4.5km) into Setting Sense of
the tight gas-bearing sands2. Targets Ownership
Common
All the risks associated with the above challenges were Goal
Motivated Supportive
greatly minimized by having an optimum Pre-drill Hydraulic
People Culture
Fracture Design. However, the team had anticipated that the
most challenging phase would be during the first treatment,
Figure 6 Key element no.2, Focus
where the highest uncertainty level was anticipated.
During the actual job, the initial treatment screened out
very early2. There were also several equipment failures, and Setting targets. During Angsi field development, all
fluid quality control (QC) problems. As a result, the Non- targets set must be specific, measurable, achievable, realistic,
Productive Time (NPT) was very high, which was 9 percent and time bound. After setting a common target, the team will
(25 days). This NPT was very costly considering the rig cost. discuss on its strategies. Each discipline will then formulate
The team persevered to spend time to reanalyze the results their own objectives and focus on their roles.
and many lessons learnt were captured. The treatment strategy Sense of ownership. Each one in the team has clear
was subsequently changed to mitigate and control all the understanding on their roles and responsibilities, and the
possible cause that contributed to early screen out. impact of their work on the others. If one discipline does not
Consequently, the team achieved successful placement of deliver, the others may not be able to proceed. Having this
proppants in 38 out of 41 treatments (93% success) 1. NPT sense of ownership makes everyone becomes committed in
level reduced drastically after 3 treatments (Figure 5). And their work.
this would have never happened without the persistency and In most cases, the scope of works for each discipline will
assertiveness of the whole team. be documented and approved by higher management.
Example of this is the Angsi Field Development Plan
document, and the Term of Reference of Angsi Water
Non-Productive Time (NPT) per frac well Injection Management Systems (WIMS) 3. The formality is
Plan NPT ~ 10% Actual NPT 0.3%
essential to build team spirit, besides developing sense of
10 ownership and getting management support 3.
NPT Non Productive Time (%)

9 Supportive culture. In Angsi, the senior engineers are


8
always willing to coach and support the juniors. Not only in
7
terms of coaching them to acquire technical skills, the seniors
6
5
also help them to develop their business skills, e.g. training
4
them to present development plan to the top management.
3 This will prepare them to become early contributors for the
2 team. The supportive culture facilitates the accomplishment of
1 the teams common goals within the time boundary.
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Motivated people. Keeping everyone focused at all time is
Well not an easy task. However, in Angsi, the motivational level is
kept high by celebrating successes after accomplishing the
Figure 5 NPT per well during Angsi Hydraulic Fracturing common goals. Everyone deserves recognition in the form of
fair appraisal and appreciation tokens for what they have
contributed, regardless of how small it is. Having these
motivated people is what has fueled the team spirits
continuously.
4 SPE 102804

Element #3: Integrated approach Building in and remote monitoring via personal digital assistance (PDA).
quality in robust proposals Decision-making process is significantly improved through
real-time monitoring, which also leads to high efficiency
Robust proposals. The secret of Angsi success relies on its operation and reduced operational costs. This is what we mean
integrated approach. This is the most critical element, as it by being robust, where the technology makes the plan more
plays important role in integrating the right and focused technically sound, and making good business sense by
people in the team, with the new technologies that they reducing the overall development cost.
applied. Generally, an integrated team approach is where a Built-in quality. To deliver superior performing assets,
group of individuals with different backgrounds, and quality is built-in from the very beginning. For example,
representing different disciplines, works together to achieve during the well planning phase, Angsi team will conduct a
common goals 3-6. However, in Angsi, they believe that it review discussion on well program. Before execution, drill-on
needs more than these basics to integrate the people and the paper sessions with contractors and pre-job tests on critical
technology successfully. equipment will be conducted. Job procedures must be made
Robust proposal is what they needed. Angsi team clear and followed. In Angsi, the aim is to repeat success, and
defines robust proposal as the development plan that is avoid failures. Therefore, all job procedures will incorporate
technically sound, making good business sense, considers the best practices and lessons learnt from previous experience.
risks, and accommodates realistic outcomes. These criteria are Lessons learnt are captured through post-job analysis with
critical especially in getting the buy-in from the management the contractors, and Service Quality Enhancement (SQE)
to implement new opportunities (e.g. developing additional meeting. The difference between the actual results and initial
reserves, or implementing cost reduction measures). Five targets are then reconciled for improving future project
different approaches are integrated together to achieve this, performance.
which are; applied technology, built-in quality, innovative, Innovation. By being innovative, optimization can always
minimizes risks, and what if challenge (Figure 7). be implemented. An example to illustrate this is the
completion of three horizontal wells in the thin good quality
sand in the Angsi South area. The team had decided to
3. Integrated Approach complete the first well with uncemented liner, perforated
Applied Built-in underbalanced. The second well was completed differently,
Technology Quality using pre-drilled liner. By comparing the production tests
Robust results from the two wells, surprisingly, the first well produced
Proposals two times higher than the later. The team believed that the
What If higher rate was contributed by the excellent underbalanced
Innovative
Challenge effect, where perforations successfully removed filter cakes
Minimize and good clean up was obtained. This innovation has been
Risks adopted in the third well, where it was proven again by the
higher production rate, hence optimizing the total recovery
Figure 7 Key element no.3, Integrated Approach
from the thin oil-bearing sand.
Applied technology. Applying technologies in achieving Minimize risks. To achieve our target, we do not neglect
the teams goals is important. It improves the overall any risks. Every risk is calculated and weighed to consider the
development results in the most efficient manner, either in potential effects on the project. By minimizing risks, it makes
terms of cost, time, or reliability. Among the technologies the project more robust, therefore ensuring that all the realistic
used in Angsi were; torque and drag modeling, rotary outcomes can be realized.
steerable systems (RSS), down-hole tractors, real-time What-if challenge. To minimize risks, Angsi team always
operations (RTO), hydraulic sliding sleeves, 3D and 4D considers what-if challenges. By practicing this way of
seismic data, as well as permanent downhole monitoring thinking, many possible scenarios can be considered
system for reservoir management. By applying these, the team especially when dealing with high uncertainties. It will prepare
was able to go beyond their comfort limit and justified its cost the project with alternative plans besides enhancing the
reduction measures. decision making process.
For example, the use of torque and drag model, along with
the RSS has contributed to the reduction of 30% in drilling Case Study. One of the successful applications of Integrated
costs. This has resulted in the 20-25% faster drilling progress Approach is the establishment of Angsi Water Injection
compared to the PCSB standard. Through the advanced Management and Surveillance (WIMS) 3. The WIMS team
geological modeling, called the Seismic Amplitude was formally formed in April 2002, with two objectives;
Constrained 3D Geocellular Modeling (SAC3DGM), it Optimizing the economics of the Angsi water
reduces the geological uncertainties in finding hydrocarbons. flood by formulating and implementing an
Drilling targets can then be optimized, and the technology was integrated strategy for the management and
proven by having no geological sidetrack after drilling 95 surveillance of the waterflood project, and
wells. The fields prudent reservoir management is also Enhancing the understanding, knowledge and
assisted by real time monitoring system. This system includes technical skills amongst the team members in
permanent downhole gauges (PDG), surface data acquisition, managing and operating waterflood project.
SPE 102804 5

An integrated approach is opted because the project scope Setting Objective. As mentioned in the second key element,
is very significant and is multidisciplinary in nature. This is common goals ensure that the team is aspired to accomplish
also based on the earlier experience and lessons learnt from the same objective. Only common goals can integrate all the
developments in the Malay basin, which suggest that such various disciplines. To do this, all team members will discuss
approach would benefit waterflood projects3. together to set their objectives and later reach a consensus on
The robust proposals of the team are captured in the Term the teams common goals. Angsi team practices the
of Reference (TOR) document. It includes background followings in setting these common objectives: being way
information, team objectives, focus areas, scopes, deliverables, ahead, anticipation, homework, fallback plan, and flexibility
and areas of responsibility. Under the focus areas, every aspect (Figure 9).
of the water injection system is covered to ensure they are Way Ahead. To do detail planning, sufficient time is
managed excellently and all risks are minimized. For example, required. By planning way ahead, it guarantees that every
water quality control is one of the focus areas, where it must concern rose by each discipline is considered in the plan.
be carefully monitored to preserve well injectivity and protect When clear, achievable and realistic objectives are set, the
physical integrity of the injection system against corrosion3. team will discuss various options to accomplish the common
Having these focus areas ensure that quality is built-in from objectives.
the beginning, besides minimizing risks through careful Anticipation. From the various options, every possible
planning. outcome is anticipated. This includes all the benefits and risks
Additionally, new technologies are implemented as part of involved. The ability to anticipate the outcomes to be as close
their strategies. Among these are the portable clamp-on as possible to the actual condition can save the project from
ultrasonic flowmeter, which allows more precise water costly failures.
injection rate measurement; and in-line analyzers for Homework. To perform the above, a great deal of
automatic water quality checks. The whole water injection homework is required. Reservoir engineers may for example,
plant is designed primarily for automatic operational control build a simulation modeling and run several development
through platform distributed control system (DCS) 3. scenarios to estimate the potential recovery. By selecting the
To date, the overall performance of the Angsi waterflood best scenarios, the recovery and economic of the project is
project is very encouraging (Figure 8). After 4.5 years of maximized. In addition, for operational excellences, the team
operation, the injection availability was maintained above the refers directly to the global champion and any documented
target of 95%, except in 2005 due to unplanned shutdown experiences from other operator.
caused by the tripped pump. Water quality was also good Fallback plan. One of the most important parts in
throughout the years, where milipore slope level was planning is to have alternative or fallback plans. If fallback
maintained lower than 0.3. In 2004, the water injection plans are in place, the team will always be prepared if the
module has been upgraded from 80Mbw/d to 145Mbw/d to main plan does not turn out as expected. When dealing with
cater for the increased production from all the four Angsi uncertainties and risks, having fallback plans is a good
platforms. This is part of the innovations made to capture the practice, as it will make sure that the money we invest will
opportunity of producing at higher rate without being limited provide the maximum return.
by the initial design capacity. Flexibility. The team recognizes that by allowing room
for any plan deviations, it will help the team to optimize each
100 operation regardless of any uncertainties. By having
flexibility, the team has turned the unforeseen challenges into
80
golden opportunities and accepted changes to create more
60
successes from time to time.

40
4. Planning
20
Way Ahead Anticipation
0
2002 2003 2004 2005 2006

Injection availability 96.7 96.7 97.2 94.5 96.3 Objective


(%) vs target of 95%
Milipore quality (x10-2) 17.9 19.0 27.4 26.8 25.8
Flexibility Homework
vs target of 0.3

Fallback plan
Figure 8 Water Injection performance of Angsi field
(June 2002- Mac 2006) Figure 9 Element no. 4, Planning

Case Study 1. Careful planning was demonstrated during the


Element # 4: Planning - Being ahead of the game Angsi first campaign of Hydraulic Fracturing. Again, this
The fourth key element of Angsi success is planning. To plan extensive job becomes a good illustration to see the role of
in detail and being ahead of the game, setting common planning.
objective is very critical. Right after the contract was awarded, the team began
detailed planning with all the involving parties. By planning
6 SPE 102804

way ahead, it ensured that all aspects of the fracturing reservoir adds 105 Bscf to the total Angsi gas reserves.
operations were covered. Frac modeling, fluid testing, mini- The reserves growth never stopped in Angsi. After
frac tests, equipment inspection and testing were some of the drilling 95 development wells and 8 appraisal wells, the
homework done by team. Phased campaign were developed reserves has doubled up. Future development projects, which
where the hydraulic fracturing were conducted in three will be in the Angsi Southeast and Southwest areas, will
batches. The first batch involves 11 wells, the second batch 3 further add 81 MMboe. With a total of 110 wells, including 15
wells and the final batch involves 5 wells. Major reason for new wells, this will make the reserves growth to be 2.5 times
phased program was to meet the production demand while of its initial size (Figure 10). Without flexibility being in
allowing space for learning and flexibility. place, such achievement may not be accomplished.
To do this, the team evaluated their performance by
700
comparing the results and analyzing the job execution in
detail. Lessons learnt workshops were conducted after each 600

batch. The team then took an aggressive action to incorporate 500


the lessons learnt and moved to alternative approaches or

MMboe
400
fallback plans, hence leading to best practices and operational 300
excellence. 200
One of this alternative approaches was the introduction of
100
live annulus fracturing for better treatment control and
evaluation1. It was implemented in the very next stage in the 0
1997 2000 2001 2003 2005
same well and the remaining wells. By doing this, it has Ye ar
resulted in cost savings of at least USD 10 million in the first
Figure 10 Reserves growth in Angsi
year of operation1. Angsi team successfully reduced the Non
Productive Time (NPT) significantly and later managed to
maintain the whole fracturing programs with only 0.3 percent Element # 5: Communication - Essential information
NPT against the target NPT 10 percent (Figure 5). flow
During the second and the third batch of the campaign, The fifth key element of Angsis success is communication
the Angsi team had allowed some flexibility to be (Figure 11). Communication flows into two directions;
implemented in the program, where they had extended the internally and externally.
fracturing into the shallower I-sands and deeper L-sands. This
right decision enabled them to capture the additional
opportunities from the L-sands and improve productivity of 5. Communication
the I-sands.
Final programs of the later wells changed considerably Management
and executed. Consequently, Angsi successfully doubled the Asset JV Partner
fracture execution stages and pumped in 30% more of the
planned volume of fracture sands for all the initial 19 fracture Information
wells. With this proper objective and detailed fallback plans, Flow
Angsi has completed the campaign 4 months ahead of its
Surveillance Stakeholders
original schedule even after the fracturing program was
expanded. Moreover, the initial gas production rate of 290 Figure 11 Element no. 5, Communication
MMscf/d was also higher than the target rate, 220 MMscf/d.
With this unexpected success, the team was able to Internal Communication. Within the team, every member
reduce the number of treatment wells from 21 to 19, hence needs to understand the group drivers and to meet
saving about USD 16 million. In overall, it was an excellent, requirements in time. Communication allows everyone to
safe and cost saving hydraulic fracturing campaign. cooperate and coach each other, so that works can be
accomplished correctly and in time. For example, during
Case Study 2. By applying flexibility during planning, the drilling and completion stage, the field development team will
team was able to seize many opportunities such as discovery attend the daily operation meeting to get updated on the
of new reservoirs and additional reserves. Flexibility allows drilling progress, and information related to the well and
the development of these reserves to be incorporated although reservoirs. The team also communicates with the operations
it was unplanned in the Angsi first FDP. and asset team to understand the production performance of
For example, the development of the Angsi West the wells. If problems occurred, team will also discuss on the
area. It was initially planned for oil development. However, solution, hence fast decision making can be made.
after the reinterpretation seismic, together with the deeper New information will also be shared with all team
analysis of logs and testing from the adjacent development members, so that everyone will be alert and mistakes are
wells, gas reservoir was discovered. Fortunately during the hindered. Especially when approvals are needed, the team
planning stage, the platform was designed with extra well slots leader plays a critical role to ensure that all process involved
to cater for any upsides. This allowed 3 gas wells to be drilled must be followed by the team. In Angsi, the team leader is the
to develop the gas, and some innovations of the surface one who makes direct communication with the project team,
facilities will allow it to be produced in the future. The gas asset, surveillance, joint venture partners and management.
SPE 102804 7

External Communication. The information must be Major successes of Angsi


delivered clearly and smoothly. This is very crucial especially By applying all the six key elements, Angsi team has proven
between the Petroleum Company and the service providers. that the elements were very effective in allowing them to
Although the ways of thinking and doing things could be vary achieve many positive outcomes during its planning and
between one unit and another, however the team has always execution stages. In 2005, Angsi has been recognized as the
managed to establish a consistent and never ending model of success amongst PCSB projects, either domestically
collaboration with the service providers. In other words, or internationally.
synergism is always created.
By establishing good information flow, the Successful hydraulic fracturing campaign. As mentioned in
stakeholders would always be informed. This avoids surprises the above, the hydraulic fracturing campaign in 19 wells has
among them especially when new opportunities are identified. recorded its own success by producing at an initial rate of 290
Communication also allows the team to develop a strong MMscf/d versus the target of 210 MMscf/d. As it was the first
working relationship with Asset and Operations, to speed up in Malaysia, the successes have opened up tight gas
approval processes, and finally, to keep close contact with the development in the region.
stakeholders.
Increase in reserves level and production. With the
significant increase of reserves, it has boosted the production
Element # 6: Feedback Loop - Success Results From of Angsi field from 65 to 115 Mstb/d. Surface facilities have
Feedbacks been upgraded to cater for the higher rate. The highest
The final key element of Angsis success is the feedback loop. production was recorded in 2005 with 121 Mstb/d and 413
This element is related to the third key element, which is the MMscf/d.
integrated approach. During planning, several targets were set
and few key performance indicators (KPI) were used to Reduction of Unit Development Cost (UDC). Significant
measure the quality of the implemented job. Types of KPI cost savings were achieved through careful planning,
would differ from one discipline to another. For example, the implementations of cost reduction measures and most
KPI for production technologist will be based on production importantly, through applied technologies. UDC reduction is
whereas the KPI for drillers will be to achieve smooth also mainly contributed by the reserves growth (Figure 13).
operation with minimal Non-Productive Time (NPT).
Once these KPIs were set, each job will be monitored MMboe Ye arUDC (USD/boe)
closely until completed. The results will then be interpreted
700 6
and compiled, usually by the service providers. The reports are
600 5
carefully reviewed by the team, and compared internally with
Reserves (MM boe)

UDC (USD/ boe)


the KPIs. In some cases, especially when failure occurred, 500
4
service providers will have to present the post mortem results 400
3
in the lessons learnt review with the team. The key findings 300
highlighted such as the lesson learnt and successes will then 2
200
be incorporated in the plan of the next job. This cannot be 100 1
done if a reasonable amount of flexibility is not anticipated
0 0
during the initial planning. 1997 2000 2001 2003 2005
By incorporating all the feedbacks, starting from the Ye ar
planning, execution, and post job evaluation, the cycle of each
Figure 13 Angsi UDC reduction (1997-2005)
job is completed, or more known as Feedback Loop (Figure
12). The objective of establishing the Feedback Loop is to
ensure that quality results are delivered by building in quality Conclusion
from the beginning towards the end of the job. As the 1. Success of a field development team starts with the
consequence, previous failures can be avoided and successes right people.
can be repeated towards quality achievements. 2. A multidisciplinary team can only work as a real
team if they have common targets and each one
focuses on their roles.
6. Feedback Loop 3. Many authors have advocated the merits and
advantages of integrated team approach3-6. However,
Expectation Result it requires more than basics to ensure successful
Quality integration between people and technology. Robust
& proposal can be an excellent approach for the people
Flexibility to deliver quality results while minimizing risks and
costs through applied technology.
Compare
Change 4. A development plan will be successful it was planned
Interpret
way ahead, equipped with fallback plans and
Figure 12 Element no. 6, Feedback Loop incorporated some flexibilities. Changes based on
8 SPE 102804

lessons learnt should be made before final execution


to allow continuous improvement.
5. Effective communication is essential for the whole
team to understand the group drivers and meet
requirements in time, besides gaining supports from
the stakeholders and management.
6. Feedback loop is an excellent approach to build
quality from the beginning towards the ending of a
project.
7. The application of the six key elements has been
proven effective through the successes achieved by
Angsi Field Development Team.

Acknowledgements
The authors would like to thank PCSB, PETRONAS,
EMEPMI, and ExxonMobil Production Company (EMPC) for
their support and permission to publish this paper. The authors
would also like to thank the whole Angsi team and the ex-
members for their tremendous efforts and commitments in
making Angsi a success.

Nomenclature
Bscf = Billion standard cubit feet
boe = bbls of oil equivalent
Mbw/d = Thousand bbls of water per day
MMboe = Million bbls of oil equivalent
MMscf/d = Million standard cubic feet per day
Mstb/d = Thousand stock tank bbls per day
NPT = Non-Productive Time, percent
Tscf = Trillion standard cubic feet
UDC = Unit Development Cost, USD/boe

References

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