www.ep-solutions.com

2005 PRODUCT NEWSLETTER

AUGUST '05

 


Merger Enhances Value Proposition For EPS Clients Now More Than Software

ad-ap-ta-tion n. 1) a. The act or process of adapting. b. The state of being adapted. 2) Something that is changed or changes so as to become suitable to a new or special application or situation.

Edinburgh Petroleum Services (EPS) is now a part of eProduction Solutions (eP), Weatherford's production optimization company. . . .
Full Story

EPS Receives Technology Innovation Award

After the evaluation of several competing offerings, a major South American operator contracted EPS to provide both WellFlo and ReO software to optimize two complex gas condensate fields . . .
Full Story

Analysis Cuts Conventional Well Testing Costs

EPS consultants recently completed a significant study for a major international oil company in a Caribbean field. The operator was concerned about the amount of well data it needed to acquire . . .
Full Story

Integrated Full Asset Production Model for Collaborative Onshore/Offshore Management

The operator of this major mature offshore field in the Norwegian North Sea had previously used EPS' ReO software to optimize the wells and gathering system performance.

The field comprises about 120 oil and gas producing wells with an approximate total oil production of . . .
Full Story

EPS in India

Having been selected as the best candidate of several competing solutions, WellFlo and ReO will be used for a major optimization study project in India. The target is a large offshore oil field . . .
Full Story

Total System Optimization Model Further Increases Production

A major Middle East operator had used EPS software and services previously and successfully implemented recommendations made by simplified asset models built using EPS FloSystem optimization software. In 2003, it was decided to upgrade four interlinked gas-lifted oil fields to integrated asset optimization using ReO . . .
Full Story

Adding Analysis to Real-time Optical Sensing
Super Major, North Sea

Having been selected as the best candidate of several competing solutions, WellFlo and ReO will be used for a major optimization study project in India. The target is a large offshore oil field . . .
Full Story

EPS Project: West Africa

Shell operates a large number of fields in the Nigerian Niger Delta. Approximately 3000 wells contribute to a total daily production of about 1,000,000 bbl/day of oil and 1,700 MMscf/day of gas from these fields.

EPS has been awarded a contract to provide. . .
Full Story

Other Features ...

Current Product Updates

Stay at the top of your game. EPS offers turnkey consulting and training classes.

2005 Classes
Remaining Open Schedule
Download Training Brochure (No Longer Available)

Course Dates Location
Well Test Analysis 5 - 9 September Edinburgh - ETC
Well Test Analysis in Complex Reservoirs 12 - 16 September Edinburgh - ETC

If you would like to register for any of our courses, you can do so over the web by selecting the hyperlink below or by completing the registration form from within our training brochure. The brochure can be downloaded from here or the training page on the EPS website. Hard copies should be returned to Carol Marini, at the following address:

EPS Training
Attention: Carol Marini
Research Park
Riccarton
Edinburgh EH14 4AP

If any colleagues are interested in attending one of our courses or would like additional information, we would be grateful if you would pass this on to them, or ask them to contact me direct, so we may accommodate them.


About eProduction Solutions (eP)

eP provides solutions that go beyond SCADA to optimally operate oil and gas field operations. eP, which now includes EPS products, experience and personnel, offers a one company solution for production optimization at the well, reservoir and field levels. These products provide sophisticated analysis, integral design capabilities, real-time monitoring, and accurate control.

The solution's unique design provides intelligence at the wellhead and at the desktop. Wellhead intelligence assures immediate reaction to changes in the well while the desktop intelligence provides detailed analysis and fine tuning for optimal operations.

eP believes that when companies have the right people with complete, timely information working on solutions, they will find ways to improve productivity and lessen future problems. By using eP's real-time production optimization solutions, problem solving, potential problem identification, and shared decision making are both efficient and effective.

What's Inside ...

Merger Enhances Value Proposition
EPS Receives Award
Analysis Cuts Well Test Costs
Integrated Full Asset Production Model for Onshore/ Offshore Management
EPS in India
Total System Optimization Model Further Increases Production
Adding Analysis to Real-time Optical Sensing
EPS Project: West Africa
Regular Features
EPS Training and Consulting
Current Product Updates
Product Preview
WellFlo4 is coming!

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EPS Products
Research Park, Riccarton
Edinburgh, EH14 4AP
United Kingdom
www.e-petroleumservices.com


eProduction Solutions
A Weatherford Company
World Headquarters
Houston, Texas
22001 North Park Dr.
Kingwood, Texas
77339-3804
281-348-1000


North America
Bakersfield, CA
Casper, WY
Houston, TX
Odessa, TX
Calgary, AB
Lloydminster, AB
 
Europe
Great Yarmouth, Norfolk
Aberdeen, Scotland
Edinburgh, Scotland
 
Middle East
Cairo, Egypt
Muscat, Oman
Al-Khobar, Saudi Arabia
Abu Dhabi, UAE
Dubai, UAE
 
Latin America
Chubut, Argentina
Rio de Janeiro, Brasil
Rio Grande do Norte, Brasil
Tabasco, Mexico
Veracruz, Mexico
Barcelona, Venezuela
Maracaibo, Venezuela
El Tigre, Venezuela
 
Asia Pacific
Brisbane, Australia
Canning Vale, Australia
Beijing, P.R. China
Negara Brunei Darussalam
Jakarta, Indonesia
Kuala Lumpur, Malaysia
Singapore
HoChiMinh City, Vietnam


For more information, call (281) 348-1000 or go to http://www.ep-solutions.com. If you prefer not to receive this newsletter from eProduction Solutions, please reply to this newsletter with UNSUBSCRIBE in the subject line.


Copyright © 2005 eProduction Solutions, Inc.

Edinburgh Petroleum Services (EPS) is now a part of eProduction Solutions (eP), Weatherford’s production optimization company.

Who is eP?
eP was formed in 2001 and is headquartered in Houston, Texas. eP is the premier, global production automation and optimization company. eP’s broad range of solutions and depth of technical expertise offer the client unmatched capabilities including hardware, software, people and technology. EPS products, experience and personnel complement eP’s and yield a comprehensive, one company solution for production optimization at the well, reservoir and field levels. eP’s solutions include well automation, artificial lift control, control systems, fiber optic and electronic well sensors, intelligent completions, surface metering, SCADA communications, workflow management, data management, engineering analysis software, engineering consulting and training for total production operations. No other company has the depth and breadth of products that we can now offer our clients.

What was the catalyst for the change?
EPS was approached by eP for the opportunity to create an integrated-solution vision. The merger was a good fit. eP is expanding its production optimization strategy to help producers lower costs, increase production and manage assets with the most comprehensive solutions available. The addition of EPS software and services to eP’s value proposition gives the ability to offer solutions for engineering and operations, all from a single company.

EPS Continued Product Support
EPS assets were acquired for the quality and cutting-edge innovation of the software solution. EPS products will continue to be supported by eP and sold, developed and maintained by former EPS employees. Additional resources and assets are being allocated to continue to develop and integrate EPS software products into eP’s comprehensive production optimization solutions.

Going Forward
EPS products will be offered by all of our eP and Weatherford global offices. Our list of successes continues to grow. With the additional support and resources of eP, the EPS product line will continue to optimize production and help our clients leverage technology to work better, faster and smarter. We look forward to our continued relationship as we adapt and grow to serve you better in the future.

Dear valued EPS clients and friends,

I am very pleased to announce one of the most exciting and synergistic mergers to come along within the upstream energy industry in recent years. EPS, the petroleum engineering software company proven around the world, is merging with eProduction Solutions, Inc. the leader in production operations automation and optimization. Now for the first time, a comprehensive optimization solution from a single company will be available for our valued clients and new customers.

While we were evaluating ways to expand our value proposition to our clients, eP was also looking for a partner whose software and systems would complement their portfolio and vision. Once we saw the potential of joining forces with an industry leader, it became very clear that a merger of these two companies would be an ideal scenario. Thus, with this merger, two innovative and growing market segment leaders have come together to build on each other’s strengths to deliver a solutions set that addresses a critical need unmet by today’s energy services providers.

eP and EPS share both a common vision and a unique ability as a combined entity focused on helping producers leverage technology to work better, faster and smarter. The merger provides our valued clients and potential new customers with a single partner who brings global experience, superior products and a solid commitment to quality.

EPS software products will be known as EPS Products and become a product line within eP and the broader Weatherford. eP will be the new company name and EPS employees are now eP employees. The individual software package names such as ReO, WellFlo, MatBal, PanSystem, et al, will all remain intact. eP is committed to continued support and development of EPS software. In fact, resources are now allocated to the next generations of our products. At the same time, we are expanding our consulting engineering manpower worldwide. I shall be working closely with Dharmesh Mehta, eP’s president. For you as existing EPS customers, not only do you now have a complete “go-to” partner for all your real-time production optimization needs, but our world-class support will expand to serve you better than ever. I welcome your questions and feedback about this exciting step forward for our company.

Yours truly,
Laurence Ormerod
Managing Director, Edinburgh Petroleum Services


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EPS Receives Technology Innovation Award

After the evaluation of several competing offerings a major South American operator contracted EPS to provide both WellFlo and ReO software to optimize two complex gas condensate fields. After the evaluation of several competing offerings a major South American operator contracted EPS to provide both WellFlo and ReO software to optimize two complex gas condensate fields.

The two fields consisted of four and five gas condensate wells respectively and produced about 350 MMscf/day for the Brazilian market. Complexity was added by the fact that each well was completed in multiple reservoir layers with strongly varying fluid properties. The wells were fully equipped with intelligent completion technology so that the production layers could be opened and closed independently.

The production issues on these fields were threefold:

  • Gas treatment capacities for CO2 removal at the central processing facilities were limited and CO2 removal was associated with operating expenditure. The challenge was to blend gas containing different CO2 concentrations to optimize the usage of the gas treatment facilities and still meet target gas production rates and contracted quality standards.
  • Proceeds from the sale of condensates were an additional revenue source for the company. It was essential to operate the fields to maximize condensate production.
  • Pipeline tariffs associated with different transmission pipelines varied. Pipeline usage needed to be optimized to minimize transportation costs.

ReO was highly successful in addressing these production issues and substantial additional revenues and cost savings were identified in the three areas described. In particular, the solutions illustrated how optimal blending could be used to raise gas production targets to 500 MMscf/day without breaking the gas treatment capacity constraints. Optimization of condensate recovery achieved an increase between 17% and 27% depending on how much inter connectivity and facility sharing between the two fields was put under optimizer control.

The client awarded EPS a Technology Innovation (Innovación Tecnológica) Award in recognition of the success of this project.


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Analysis Cuts Conventional Well Testing Costs

EPS consultants recently completed a significant study for a major international oil company in a Caribbean field. The operator was concerned about the amount of well data it needed to acquire in a portion of its forthcoming appraisal wells. The EPS consultants examined the diverse sources of information including optical sensors installed by Weatherford in nearby producing fields.

They used this information in a value of information (VOI) methodology that lead to projections of well productivity. Conclusively in this example, it was demonstrated with the required degree of certainty that conventional well testing was not required in order for development to proceed. The savings achieved by not having to run DSTs in these wells resulted in significant savings for the operator.


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Integrated Full Asset Production Model for Collaborative Onshore/Offshore Management

The operator of this major mature offshore field in the Norwegian North Sea had previously used EPS’ ReO software to optimize the well and gathering system performance.

The field comprises about 120 oil and gas producing wells with an approximate total oil production of 300 mst bbl/day and gas production of 400 MMscf/day. ReO was applied to this field to de-bottleneck the production system and to optimize the lift gas allocation to individual gas lifted wells. Results of this previous project suggested ways to achieve a 5.6% increase in daily oil production while halving the field’s total lift gas requirement at the same time. These performance improvements were realized by implementing the recommended field management strategy in practice.

The operator’s new objective is to identify and sustain similar gains on an ongoing basis and to achieve a significant improvement in operating efficiency by increasing multi-disciplinary cooperation between onshore and offshore staff. Deemed to offer the best of several competing solutions, EPS has been selected to provide both software systems and engineering expertise to contribute significantly to this goal.

There are two main elements to the project:

First, enable the production management team to assess the constraints upon production, and the possible ways of alleviating these. To achieve this, the ReO model of the field will be extended considerably to cover the separation, gas compression and gas processing facilities through to the export points, thus enabling the optimization to take into account the interrelationship between all relevant network components. The single, unified model of the whole asset will be updated automatically on a daily basis to match current field conditions and then be run to optimize production. By evaluating the results, production management staff will be able to identify further bottlenecks and production enhancement opportunities for field implementation.

Second, in order to facilitate an effective daily production operations meeting, up-to-date production information and current operating conditions will be presented using real-time data processed by the EPS i-DO system.

The combination of these two elements means that the team responsible for production will be able to view actual production and operational data and compare them with selected potential alternatives. This will enable team members to choose and implement the best operating strategy for the field on a daily basis.

Work on this project has been started and results are expected in the second half of 2005.


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Having been selected as the best of several competing solutions, WellFlo and ReO will be used for a major optimization study project in India. The target is a large offshore oil field west of Mumbai, producing approximately 50,000 BOPD. It consists of about 120 wells, with 14 remote satellite platforms and five offshore processing platforms. Ninety percent of the wells are gas lifted.

The purpose of the study is to develop ways of producing and/or delivering additional oil. Areas which will be evaluated to achieve this goal will include the following:

  • Optimization of the lift gas allocation, taking into account well performance, the performance of the processing and compression facilities, the performance of the production gathering and high-pressure gas distribution networks and the interdependencies between all these components.
  • Optimization of the use of limited processing capacities (water handling etc) on the offshore processing platforms.
  • De-bottlenecking of the field’s pipeline networks and processing facilities.

The project will be carried out both on the ground and in EPS’s offices and is expected to last several months. Results are expected in the second half of 2005.


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Total System Optimization Model Further Increases Production

A major Middle East operator had used EPS software and services previously and successfully implemented recommendations made by simplified asset models built using EPS’ FloSystem optimization software. In 2003, it was decided to upgrade four interlinked gas-lifted oil fields to integrated asset optimization using EPS’ comprehensive ReO package.

It was of particular interest to optimize the detailed performance of the complex compression systems installed on these fields and their interdependence with lift gas availability and pressure, and hence oil production. Furthermore, asset optimization was required for both summer and winter operations. Ambient temperatures vary considerably through the seasons and this has a major impact on compressor performance. Finally, as the assets are interlinked there was also an opportunity to transport lift gas between fields and to share processing facilities. The effect of making use of this opportunity needed to be evaluated by the full asset model.

To address these issues a full and detailed model of the interlinked fields was required. The result of this work turned out to be one of the most complex ReO models built to date. The final version contained approximately 250 wells, 57 separators, 17 compressor trains, and no less than 1103 pipes, in addition to all the manifolding required to connect these together. All the constraints and objectives associated with field production were also incorporated into this model.

Despite the fact that field optimization had been rigorously and routinely carried out over the previous few years using the simplified asset models provided by EPS’ FloSystem software (which had itself produced significant gains through gas lift allocation) oil production was still increased by 2% by the use of ReO’s integrated asset model. Adding this to the original gain from FloSystem gives a net increase of around 6%.

Given the operator’s specific interest in compressor performance, it was of equal importance to establish that compressor operating cost could be reduced by 3%. Additionally, gas lift requirements could be reduced by 14%, separator pressure by 5% and gas lift header pressure by 3% compared with seasonal averages. The combined effect of these reductions was that one compressor train was found to be redundant during the winter months when ambient temperature is more favorable for compressor performance. This allowed the operator to establish yearly compressor maintenance schedules without incurring any loss of production.


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An offshore operator in a large, green field has selected Weatherford’s reservoir/well monitoring downhole optical sensors. The project includes pressure-temperature gauges (PT), distributed temperature sensors (DTS), and downhole flow meters, in most of the wells in one of the largest discovered fields in the North Sea in the past decade.

EPS is under evaluation to provide analysis services and software for the highly accurate, high-frequency data.

Reservoir analysis: Software such as PanSystem, WellFlo and MatBal to interpret data from the gauges and provide analysis on a regular and programmed basis in order to identify key trends such as reservoir pressure decline, changes in well skin factor and changes in well lift performance, etc.

Production optimization: The availability of an accurate assessment of the well performance on a current basis makes possible the real-time optimization of the field.

The future plan is to move to a more automated system as quickly as possible. Under this scenario, many of the simpler workflows related to the objectives of reservoir monitoring and production optimization will be automated and managed by linking the data sources and the engineering applications. i-DO, the EPS workflow integration system is the answer for this application.


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EPS Project: West Africa

Shell operates a large number of fields in the Nigerian Niger Delta. Approximately 3000 wells contribute to a total daily production of about 1,000,000 bbl/d of oil and 1,700 MMScf/day of gas from these fields.

EPS has been awarded a contract to provide an integrated subsurface-surface production optimization model for this operation to enhance the performance of the assets and improve field management.

The construction of the model has been divided into two phases. Phase one is well underway. WellFlo and ReO software is being used to model the entire surface infrastructure of the operation in the Niger Delta, including the integrated pressure and volume behavior of the surface flow lines. This ReO model allows Shell to evaluate possible different operating scenarios to meet a number of their specific business objectives. Phase two will subsequently generate production forecasts for a subset of the fields operated using ReO Forecast.


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ReO 6.0

Gas purifier, a flow direction controller and a pressure and temperature tuning object added.

Emulsion viscosity modeling for flow through pipes. For Water in Oil emulsions the Rønningsen and Barnea and Mizrahi correlations are available and for oil in water emulsions the Taylor and Logarithmic mixing rules are offered.

Optimization stability check gives the user a simple means to determine if the optimization has succeeded or failed and how accurate any solution obtained may be.

Enhanced handling of gas-lifted well performance data, including smoothing of the performance curves and the ability to import data for a group of selected wells.

Improved error/warning reporting and pre-optimization validation.

The User Constraints and Objectives menu option has been revised.

MatBal 2

MatBal 2 features the ability to model multiple communicating reservoirs, and aquifers connected to multiple reservoirs and other aquifers.

In addition, MatBal 2 contains additional history match functions, more powerful plotting and reporting facilities and a re-designed user interface.

PanSystem 3.2

An improved Append facility. The appending process has been simplified, making it much easier to append data to another selected data file. Useful for the time dimension of long-term pressure records. For display purposes, the double-precision values are rounded to 6 decimal places.

WellFlo 3.8.1

This upgrade includes improvements to the advanced gas lift modeling facility and the ESP pump and motor databases now include Weatherford models. Look for Wellflo 4, currently in development.


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WellFlo 4.0 is Currently Under Development

The program is being designed and built using a component-based architecture, based on Microsoft's . NET technology. The key benefits of this technology are:

  • Open architecture: The software allows simple integration with other systems and applications in the enterprise: XML is used as the native persistence mechanism to allow simple data interchange.
  • Automatic Distribution: Simplified application deployment in the enterprise – updates can be automatically distributed to the end users.
  • User-friendly Interface: Modern workflow based user interface that allows the user to access all of the application features quickly and intuitively.

WellFlo 4.0 will also introduce a variety of new technical features designed to enhance the functionality of the software and help users solve key engineering problems. These features include:

  • New Gas Lift Design Module:  This module provides maximum flexibility by allowing the engineer to tailor a design to suit their particular needs. Users can select either the “constant pressure drop” or “ API ” gas lift method and are able to choose from a variety of forms of design bias in crafting their designs. All of this is presented to users through a unique multi-pane interface.
  • Improved Gas Lift Analysis and Trouble-shooting Tools:   With these tools, users can predict well performance with far greater certainty than in the past and more accurately diagnose gas lift performance issues.
  • Comprehensive Tuning Interface:   This module provides a central portal through which the engineer can tune the flowing gradients, inflow performance model, PVT correlations, and temperature model.
  • Enhanced Liquid Loading Model:  WellFlo 4.0 incorporates both the Turner and Coleman liquid loading correlations.
  • Coning Analysis:   This feature allows users to predict coning of water or gas in the reservoir and alert the engineer to conditions that may violate either of these constraints.

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