How Reliability Data and Software Solutions CanHow Reliability Data and Software Solutions Can Be a Differentiator in Management of

Well Integrity and Risk for Deepwater O&G Wells

Presented by Einar Molnes, CTO and Founder

einar.molnes@exprosoft.com

INTSOK 2014 N i ti D t C fINTSOK 2014 Navigating Deepwater Conference Norris Conference Centre, Houston, February 26th, 2014

Presentation outline

1) Deepwater Challenges1) Deepwater Challenges 2) Reliability Data – Learning from History3) Well Condition Monitoring and Analytics: ) g y

Understanding the Current Well Status and PredictingFuture Behaviour

4) C t di4) Case studies5) Conclusions

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The Deepwater Challenge

High cost associated with downhole equipmentfail res and associated inter entionsfailures and associated interventions

Increased risk of oil spill/gas leaks during interventionsinterventions

Design for reliability: Incentive is there to putmore money up-front to minimize interventionsmore money up-front to minimize interventionsduring productive lifetime of wells

Design for real-time data acquisition from theDesign for real time data acquisition from thewell: early diagnostics and mitigation minimizesdowntime

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Understanding and learning from history

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Reliability Data – What is It?

Exposure data:p Equipment Data w/service time by Equipment Item Stressors/environmental data

Failure Data:- Failed item/date of failure- Failed item/date of failure

- Failure Mode- Failure Effect (local, knock-on)

- Suspected Cause of Failure- Information on Repair/Remedial Action

- Root Cause Failure Analysis(RCFA)Increasing value of data

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KPIs Based on Reliability Data

Mean time to failure (MTTF)

Reliability Based KPIs

Mean time to failure (MTTF) Failure rate Survival probability Survival probability Probability of failure on demand (PFD) Safety integrity level (SIL) Safety integrity level (SIL) Mean residual life (MRL) Blowout probability level (BPL) and blowout Blowout probability level (BPL) and blowout

escalation risk (BER) Life cycle cost/life cycle profit (LCC/LCP)

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Life cycle cost/life cycle profit (LCC/LCP)

Reliability data - applicationsMaster valve configuration?Master valve configuration?

Horizontal or vertical Xmas 

tree?

Horizontal or vertical Xmas 

tree?

Blowout risk?Blowout risk?

tree?tree?

Well intervention frequency and OPEX?Well intervention 

frequency and OPEX?Maintenance Maintenance 

Can SCSSV be eliminated?Can SCSSV be eliminated?

Dual SCSSV configuration?Dual SCSSV 

configuration?

philosophy for well components?

philosophy for well components?

Well risk after barrier failure?Well risk after barrier failure?

Tubing and casing Tubing and casing 

What is the risk associated with gas‐lift 

operations?

What is the risk associated with gas‐lift 

operations?

Optimum testOptimum testintegrity?integrity?

Effect of deep set plug on integrity of temporary 

b d d ll ?

Effect of deep set plug on integrity of temporary 

b d d ll ?Benchmarking of Benchmarking of 

Optimum test frequency for barrier 

valves?

Optimum test frequency for barrier 

valves?

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abandoned wells?abandoned wells? manufacturers and operators?

manufacturers and operators?

Real-time data acquisition

What is the health condition of my well? Are my well pressures/temperatures within

acceptable limits?A ll f t b i ki l ? Are my well safety barriers working properly?

Am I moving towards a failure scenario in my ll?well?

Is it safe to continue production from my well or do I need to shut in the well and intervene?do I need to shut-in the well and intervene?

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Industry challenges

Integrity Management Challenges – Time to solve problem

Competency

Gathering & analyzing dataEquipment availability

Competency

1) SPE North Sea Well integrity forum, Nov 2009 & Drilling Engineering Association (DEA) Europe, March 2010. Data compares main challenges faced by operators in managing well performance. 100+ operator participants.

Improving efficiency in gathering and analysis of data represent the 

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target area for WellMaster Software

Well MonitoringMonitoring Graphs

Monitoring Graphs System adminSystem adminCompletion 

TubularCompletion Tubular

Completion Annulus

Completion Annulus

Monitoring Valve pos.Monitoring Valve pos.

Monitoring TemperatureMonitoring Temperature

Monitoring OperationsMonitoring Operations

Monitoring OperationsMonitoring Operations

Display readings and history data for operational parameters:

P d i / I j i

Display readings and history data for operational parameters:

P d i / I j i Production / Injection GOR Gas production Oil production

W i j i

Production / Injection GOR Gas production Oil production

W i j i Water injection pH H2S O2

CO2

Water injection pH H2S O2

CO2 CO2 Water Cut Sand production

Wellhead/ AnnuliG Lift

CO2 Water Cut Sand production

Wellhead/ AnnuliG Lift

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Gas Lift Wellhead movement Gas Lift Wellhead movement

WellMaster® Software Suite

WellMaster® IMS is a user friendly andconfigurable system which helps oil and gasoperators maintain asset integrity.

WellMaster® RMS is a database drivensoftware to track downhole equipmentreliability, quantify risk, benchmark theoperators’ wells /equipment and support wellp / q p ppdesign.

Key features: Monitor key performance indicators Establish early warning systems Prioritize well management Preventative maintenance logging Risk rank assistance

Benchmarking: Mean time to failure (MTTF) Survival probability Mean time between workovers (MTBW)

Forecasting:id l lif ( )

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Risk rank assistance Failure register Customized reporting NORSOK compliance

Mean residual life (MRL) Optimum replacement frequency Test frequency Probability of failure on demand (PFD)

What does WellMaster RMS do for the operator?

Life Cycle Phase  BenefitFi ld D l S l t ll d i d fi i l i k B l CAPEX OPEXField Development Planning

• Select well design and manage financial risk: Balance CAPEX vs. OPEX for alternative well designs. 

• Find required number of wells to meet production targets for delivery contracts. B h k d l t t t ffi i t d h l i t• Benchmark and select most cost efficient downhole equipment.

Production phase • Quantify risk for wells which develop failures: can wells be safely produced rather than being overhauled? 

• Increasing productive time of wells.Increasing productive time of wells.• Achieve additional service life from equipment while ensuring safety 

is maintained.• Describe risk associated with extending lifetime of wells/equipment 

beyond original design life.y g g• Minimize unnecessary interventions. • Optimize well maintenance strategy: demonstrate effect of corrective 

vs. preventative replacement of downhole equipment.

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30 years of well equipment reliability data Yearly well reliability data & KPIs from

2012

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Case Study 1: Lifetime extension for gas lifted production wells(QRA)

Background: Multiple gas lifted producers with p g p

compromized production casing Risk of casing external formation

fracturing and lift gas return to l tfplatform

Examined casing failure scenarios and resulting leak path/rates Formation sands

Results: Defined acceptance criteria and

mitigation for each wellmitigation for each well Continued production allowed for

several wells subject to implementation of mitigation

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p g

Case Study 2: Predicting intervention frequencyand OPEX to optimize selection of field development options

Case Study 1: OPEX study for new field development

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Conclusions

Reliability and integrity data and KPIs can be used y g yfor some very powerful decisions in the upstreamoil & gas sector

Embedding reliability and integrity data into Embedding reliability and integrity data intosoftware/database tools provides the ability to manage large well inventories and data

t i tiuncertaintiesManage your data! Ensure quality and

completeness of data through involvement andcompleteness of data through involvement and motivation of operational staff

Learn from your well history to plan the future and

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y y poptimize well uptime!

Contact Details

Thank you for your attention!___________________________________________________________

Come visit us at the ExproSoft exhibition in the Magnolia room for furtherdiscussions!

Contact person, Houston:Chris McPherson, Sales Manager Americas, Chris.Mcpherson@exprosoft.comMobile: 281-222-4568

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