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PDO Technical Challenges Mapping

Petroleum Development Oman (PDO)

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Feb 2019

Presented by Hilal Al-Mamari

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PDO Vision

Overall PDO 50+ YEARS of Oil & Gas Operation

Challenge Mapping Cross PDO

Some questions as examples to trigger the discussion:-

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End Users Engagement

Feeding the Technical Challenges Mapping Sheet

cut your expenditures (Opex & Capex) by

10% without affecting production

increase your oil/gas production by 10% without

additional budget

Did not meet your production targets; why, what was the root cause?

you overspent; why, what was the root cause?

The re-occurring cause that makes your hoist intervention/turnaround/maintenance duration goes beyond plan?

complexity

high spend areas

pain area

Technical Challenges Mapping Sheet

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Well Construction

Wells P&O Artificial Lift Exploration Facilities

HSE & EC M&CProd.

MeasurementSurveillance Water

ManagementTh

em

es

Ch

alle

ng

es

ArtificialLift

• Ch AL1: ESP / PCP's Failure Rod parting due to high sand and corrosion• Ch AL2: Short Run life due to Solids, Gas, High Viscous fluids• Ch AL3: Wells performance goes below minimum rate

Technology Ranking

Technology Ranking

Criteria

Rating

Low High

1 2 3 4 5

MaturityHow ready is the solution to be implemented in PDO? Has it been demonstrated elsewhere before?

*(NASA) TRL 1, 2 or 3: * Basic research, *‘Blue-Sky’ solution

*Significant R&D is required

*(NASA) TRL 4 or 5: * Prototype validation*High degree of R&D is still required

*(NASA) TRL 6 or 7: * System tested or installed* Technology field trialed but commercially unproven

*(NASA) TRL 8 or 9: * Technology is field proven and ready for commercialization

*Beyond (NASA) TRL 9: * Technology is off-the-shelf and ready to use

Change ManagementHow much will this affect the organizations culture and how much effort is required to make this happen within PDO?

-Totally against present culture-conflicts with company or industry standards or legislation

-Affected stakeholder is unaware of change and/or openly hostile to change

-Affected stakeholder group understand change-Customer will be 'pull' in technology when it's ready

-Affected stakeholder group is fully engaged and exerting 'pull'-Minimal process change in non-critical areas

-No cultural change required or very small stakeholder group affected -No Change management requirements

People CapabilityWhat type, and how many resources are needed to make this technology work? Are these resources available, or can they be developed?

-No competent staff are available either in PDO or in the industry

Limited staff availability in the industry. None in PDO.

Staff available in industry, but none in PDO

Staff available in industry, and limited in PDO.

-Staffing requirements are reduced vs current requirements (particularly in operate phase)

Total Cost of OwnershipHow much does the technology cost across the entire lifecycle (CAPEX & OPEX)?

-Negative return on investment.-Significant development costs -Significant ongoing management (OPEX) costs

-Break-even ROI-Large up-front costs are required to prove the technology-Significant ongoing costs

ROI achieved between 1-3 yearsOPEX between 5-7% of CAPEX per annum

-ROI achieved between six months and one yearClear business value that quickly exceed the investment costs

-ROI achieved within 6 months'-Maximum possible return on investment

Operability & MaintainabilityOnce deployed what is the degree of complexity in managing the solution and reusing it across PDO?

-Very complex to use, implement and maintain-Requires specialist replaceable parts - Can only be used for a single very specific application in the organization

-Technology is plug-and-play with existing hardware, software and solutions- Can be used in multiple applications across the organization

HSSE ConsiderationOnce deployed does the solution impact HSSE?

Negatively impacts HSSE ranking by two or more levels.

Negatively impacts HSSE ranking by one level.

No impact to the challenge HSSE ranking.

Positively impacts HSSE ranking by one level.

Positively impacts HSSE ranking by two or more levels.

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Geographically Scattered

> 1500 ESP wells

Energy Efficiency

Flared Gas

Power Intensive Artificial Lift Systems

Water Management

Water Shut off

Treated Water Utilization

Water Treatment

EOR

Ultra Heavy Oil

Production Metering

High Water Cut

Heavy Oil

Low GVF

Well Productivity

ROP

Sand Production

Artificial Lift

Reduce Intervention (~21,000/yr)

Top Technical Challenges

Non-routine / Sour

Up to 98% WC

Hypersaline / Chemical Contaminated

9:1 Water – Oil Ratio

Up to 500,000 cp

< 2% uncertainty error

Tight / HP

Up to 800 bar Stringers

By-pass Oil

Less than 20%GVF

Up to 30% uncertainty error

>100 fields under water injection

Hard Rock Drilling (4hr/m)

Fine Particles (<150 microns)

NEXT……..

•Technical challenges that require R&D efforts

•Technical services performed outside Oman

•Will be explained in the coming slides…..

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Academia and PDO Collaborations

Academia / R&D’s play a

key role in addressing & solving PDO

technical challenge.

PDO niche & complex challenges require custom-made & tailored solutions which are not necessarily available of the shelf

Long historical collaboration since the 90’s

PDO & SQU

Helped solving PDO’s challenges and raising the capability & capacity of SQU

SQU Capability

PDO & SQU R&D Collaboration

PDO wanted to tap in the capabilities of other academic institutes in the Sultanate where Ejaad is providing a golden opportunity for that.

PDO posted 15 challenges in Ejaad.

Four JIAP signed and another four will be finalized soon

PDO & Ejaad in Action !!

Ejaad

PDO Ch.1

PDO Ch.2

PDO Ch.3

PDO Ch.4

EJAAD Road Show held to MDC, andduring Lunch & Learn session and willbe presented to OND, OSD, UED.

JIAP’sEoI’s

Technology Doorway to PDO

M A R K E T I N T E L I G E N C E

Tech. Scouting

E N

A B

L E

R S

Use specialized Oil & Gas upstream international intelligence organizations to explore technology market

TPHTechnology

Provider Hub

Post top challenges in an external web site accessible by all technology providers / vendors

ConferencesVendors approaching UCT team / asset with solutions in the conferences / Road Show

Tacit Knowledge

In-house knowledge (TFG, SME, CFDH, other OUs)

شـكــرا

Shukran

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