RESERVOIR

CHARACTERIZATION:
A Multi-disciplinary Team Approach

Dr Ton Grimberg
PetroSkills
Reservoir Characterisation
is an act of creativity!
If aimed at underpinning business decisions,
its impact is unmeasurable.

Former CEO Shell

Jeroen van der Veer

Let’s get to know each other
Introduction

• It must be economic

• Model each reservoir to provide evidence

– Content
decisions
– Explain performance
– Predict future performance evidence
– Minimize development costs
– Development plan for the field activities

• The evidence underpins management decisions

• All activities - to produce the evidence -

must be in line with the corporate vision

P.1-1
Expectations
Reservoir Characterisation - This Week
Foundation Models Concepts Skills

Geological Processes in
Models deposition
Monday
Depositional
Environments
Petrophysical
Models Diagenesis
Tuesday
Data Info Business
Knowledge
Geophysical Correlation
Data Models length
Friday Pre-stack depth
Tuesday migration
Flow Unit
RE Models Drive Mechanisms
Geostatistics Time Value
Friday Wednesday of $
Material Balance
Reservoir Integrated
Economics RC process
Monday Simulation
Profit orientation
Integration
Wednesday Teams and
Leadership

P.1-2
By the end of this week you will be able to

• To prepare a business proposal for any project or

study you wish to carry out

• To correlate wells taking due account of the

applicable correlation length

• To subdivide a reservoir into flow units

• To assess the economics of projects

• To carry out the integrated Reservoir

Characterisation process
Reservoir Characterisation - This Week
Foundation Models Concepts Skills

Geological Processes in
Models deposition
Monday
Depositional
Environments
Petrophysical
Models Diagenesis
Tuesday
Data Info Business
Knowledge
Geophysical Correlation
Data Models length
Monday Pre-stack depth
Tuesday migration
Flow Unit
RE Models Drive Mechanisms
Geostatistics Time Value
Monday Wednesday of $
Material Balance
Reservoir Integrated
Economics RC process
Monday Simulation
Profit orientation
Integration
Wednesday Teams and
Leadership

P.1-2
Programme in line with expectations?

Let’s get started

By the end of this day you will be able to
• To prepare a business proposal for any project or
study you wish to carry out

• To correlate wells taking due account of the

applicable correlation length

• To describe six different geostatistical approaches

We will do four chapters

- Ch. 1 Introduction
- Ch. 2 Data for characterising fields
- Ch. 3 Reservoir models
- Ch. 4 Geostatistical modelling
RC principles

• Each field is unique

• Identify critical elements

• Requires multi-disciplinary input and studies

• It is business
P.1-4
Business
PLANET

Plans, Projects

- technical
- economical
- commercial
- specific
- operational
- measurable
- political
- achievable
- societal
- realistic
- time-bound Purpose
Policies, People,
Procedures Perspective

TopCo
Profit
Consulting P.1-5
Modeling objectives

?
P.1-5
Modeling objectives

• Assessment of reserves

• Production of Field Development Plan

• Identification of additional
exploitation
opportunities
( NFE & NIE)
?
P.1-5
Hydrocarbon Life Cycle

Discovery
Basin

Play Exploration Delineation

Prospect

Decommissioning Development

Reservoir
Characterisation

Tertiary Production Primary Production

Secondary Production

P.1-6
Stages of Reservoir Characterization

Feasibility FDP Investment

Study Study Study

• Divergent thinking • Convergent thinking • Convergent thinking

• Notional • Detailed • Specific
• Are we confident • Are we ready • Are we ready
that we have an to go for it? to invest?
opportunity?

P.1-7
Typical content of a study

Let’s make a list

P.1-7
Typical content of a study

• Uncertainty analysis

• Volumetrics

• Flow modeling

• Hardware requirements (facilities, wells)

• Field / reservoir surveillance programme

• Operational strategies
(manpower, maintenance, production, HSE)

P.1-7
Reserve estimation with time

Volumetric
Study Methods

Performance

Actual
Range of Recovery

estimates

Cumulative
Production
Cumulative
Production
Rate
profile
Time
High

Relative Risk
Low

Field phase Appraisal Devel. Field review/special projects

P.1-8
Reserve estimation with time

3D Seismic
Pore Volume Mapping Porosity Model Integrated Study
I

Uncertainty
Increased Reserves

A 0
Time
P.1-9
Cumulative Cash Flow
Money
Cumulative Cash Flow

Decommissioning

Ultimate
Cash Surplus

Time
Payout
Maximum Time
Exposure
First
Oil

P.1-10
V
A
L
U
E
D
R
I
V
E
R
S P.1-14
Selection criteria

Value driver Cut-off / criterion

quantitative

Maximize NPV Say, > US$ 50 MM

Maximize VIR Say, > 0.4

qualitative

Operate sustainably Government, NGO on board

Protect environment NGO on board

P.1-xx
RC is a PROCESS

P.1-15
RC is a PROCESS It needs to have
a purpose:

WHY?

It needs to have
process steps:
It needs to have
a timeframe:
WHAT?
WHEN?
P.1-15
RC is a PROCESS

• Understanding process will:

– Accelerate progress toward product
– Build consistency in characterizing reservoirs in the company
– Develop common expectations of a quality product

• Planning makes RC more efficient vision

• Allow RC team to plan its own work values

• Put decision-making empower

and knowledge together
encourage
P.1-15
Who makes the decisions?

Team defines goals, Sponsor provides

prepares plan, feedback
including AFE’s

Team members
follow plan more Team modifies,
willingly because publishes plan
it is their plan

P.1-15
Generalized RC Process Outline
1. Define the problem
2. Evaluate data available
3. Finalize plan and reach agreement on a “performance
contract” with organization

4. Build the static model

1. External geometry of reservoir
2. Internal geometry of reservoir
3. Reservoir property distribution
5. Testing model with dynamic data
6. Finalize plan and recommendations

P.1-16
 present
The RC process painted proposals
build
decisions dynamodel
evidence build
static model
activities

TopCo
Consulting
get
agreement
analyse
the data 3+3
define the
opportunity
P.1-16
Gas pool exercise - 1
In the following cross section, the projections of five wells are shown. The data is scarce.
Nevertheless, work in your team and develop a plan for the future of this reservoir.
In a multi-disciplinary way, start answering the following question:

Additional data: What are the critical elements?

well #1 - dry hole
well #2 - gas producer (Dec 2010 BHP 1594 psi, Gp,reservoir = 18.3 Bscf)
well #3 - gas producer (Jun 2008 BHP 2210 psi, Gp,reservoir = 10.6 Bscf)
well #4 - gas producer (Jan 2007 BHP 2856 psi = Pi)
well #5 - dry hole

Marker
ft
30
6600’ 6600’ 6600’ 6600’ 6600’

Well distances: - 2900’ - - 1400’ - - 1500’ - - 1650’ -

BHP BHP BHP

Left curve: gamma ray 1594 psi 2210 psi 2856 psi
Right curve: resistivity Dec 2010 Jun 2008 Jan 2007
Critical components to RC Process
• Geologic structure
• Stratigraphic model
• Modeling techniques
- geostatistics
- attribute assessment
- geological modeling
• Fluid distribution
- vertical and horizontal
- flow units
• Production history
• Facilities
• RC team members

P.1-20
Exxon Workflow

P.1-20
Auger Field - Shell
• Delayed development 1 year for RC study
• 220 million bbls, $1.3 billion development cost
• 2 3D surveys
– 1987: 12,000’cable; 1990: 19,000’cable
– 15 appraisal wells, 3 reservoirs
• Integrated 3D with porosity, K, saturation, thickness
changes, net/gross, etc

Result: Cut wells from 27 to 13, saved $180 million

P.1-21
The RC integration challenge

petrophysics

geology geophysics

integration
Engineering
Operations reservoir
others
ICT staff engineering
Legal staff
HSE staff production
Public Affairs technology
Management

P.1-21
Disciplines Data
Geoscience Geologic
Reservoir engineering Geophysical
Production engineering Petrophysical
Drilling Core
Negotiating/legal Pressure
Fiscalists Production
Financial Well test
Field personnel Financial
Facilities engineering Simulation
Management

Technology Tools
PSDM Geostatistics
Horizontal wells Seismic
Multi-lateral wells Logs
Production system simulators Reservoir simulators
Tomography Work stations
Etc. Analogues
P.1-22
How can we ‘integrate’ all this?

•• Seismic
ManagementInterpretation
Geological
Seismic
• Tomography
• Geoscientists
Geophysical
Geologic
• Data Acquisition
• Engineers
Engineering
Geostatistics
• Logging/Coring
•• Land/Legal
Financial
Engineering and
Completions
Facilities
• Field
Drilling and
• Geologic Modeling
Completions
• Financial
• Pressure Transient
• Enhanced Oil Recovery
• Fracturing
• Environmental
• Reservoir Simulators
•• ComputerOil Recovery
Enhanced
• Computer Software and
Hardware

P.1-23
RC Hint:

Never start an RC
project before full
agreement is reached
between the RC team
and their sponsor

P.1-24
 Quiz – chapter 1

• Describe the P-business model. What is its purpose?

• Which are the stages in RC? How many are there?

• What are value drivers and how are they related to acceleration?

• Speaking about an integrated reservoir study,

which elements / aspects should be integrated?

TopCo
Consulting
 HERE COMES
RC THE
HARD PART!
Team

UPSCALING

MODEL
DATA
Chapter 2

Data
To understand

is more important than

to know

1820 - 1873
First ruler of Romania (1859 - 1866)

Alexandru Ioan Cruza

Objectives of data usage

decisions
C/T C
evidence

activities

C N
Decisions
are based on
data

U T

C/L

P.2-1
Understand needs log seismic geology

of other team
members

think about

resolution
Objectives of data usage

decisions
C/T C
evidence

activities

C
search for Critical elements N
Decisions
are based on
data

U T

C/L

P.2-1
Data considerations

Data acquisition is a process

Cross-disciplinary integration is a must

Data quality and error minimization

After Avinash Gaushik
Co-founder of Google
www.kaushik.net/avinash/web-data-quality

P.2-2
The virtous data quality cycle

P.2-2
Data considerations

Data acquisition is a process

Cross-disciplinary
integration is a must

Erath field, Louisiana

Data quality and
error minimization Do data represent
larger areas?
After Avinash Gaushik How do we extrapolate
Co-founder of Google
www.kaushik.net/avinash/web-data-quality to other areas?

Data management is essential P.2-2

Symmetrical distributions
Probability density distributions:
HISTOGRAM 20
20
15
15
10 10
5 5
0 0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3

Exceedance distributions:
120
120.0
100.0 100

80.0 80

60.0 60
40.0
40
20.0
20
0.0
1 3 5 7 9 11 0
1 2 3
1 2 3 4 5 6 7

P.2-3
 Some definitions
x1 , x 2 , x3 ,.....
N
1
mean = µ =
N
∑x
i =1
i

N
1
s tan dard _ deviation = σ =
N
∑ (x
i =1
i − µ)2

xi − µ
Xi =
σ
1
⇒_
N
∑X i = 0 _ and _ σ X i = 1

σ
s tan dard _ error =
N

TopCo
Consulting P.2-5
The normalized Gaussian distribution

-4 -3 -2 -1 0 1 2 3 4

P.2-6
Mean, Median and Mode

An asymmetrical data set: An symmetrical data set:

The three measures of The three measures of
central tendency central tendency
are different. are identical.

P.2-9
Data Flow Diagram

Where to collect?
Why needed? Users?
How often?
Type, Quantity, At what cost?
Correct procedure
When required, used?
Audit for accuracy
Responsible party?
Database maintenance

Selecting "trustworthy" data

Assessing impact on solution Integration of data
Data confidence range Synthesis of data
Multiple source data

P.2-11
Data from widely different scales

microscopic macroscopic megascopic gigascopic

(microns) (inches - feet) (100 – 1,000 ft) (> 1,000 ft)

pore throat core Drainage area of well reservoir

P.2-12
Scale of
Investigation
(Sech, et al, 2009)

P.2-13
Value of data

Sealing fault
Best tools for identification:

- Detailed seismic
- Horizontal reservoir pressure distribution
Pulse tests
Production history
- Well logging
Correlation of logs from different wells

Useful tools for indentification:

- Vertical pressure distribution

- Production tests
- Tracer tests

See course manual for detailed table

P.2-15
P.2-15
Depth of investigation and resolution of
logging tools
Induction
log

Resistivity

Laterolog

Neutron

Radioactivity
Gamma-ray

Density

Acoustic
Sonic

Micro resistivity
Resistivity Micro log
Dipmeter
250 cm 200 cm 150 cm 100 cm 50 cm 0 cm

P.2-16
RC Hint:

Identify and understand

critical elements

P.2-17
Data Considerations - 2

Communicate with
data utility and
limitations
Distinguish between clearly indicated
measured and interpreted data

Understand importance of Evaluate the

distribution or range of values uncertainty
for reservoir parameters in each data element

Evaluate
the error range
in each data set
P.2-19
Scales of Measurement

core plugs whole core well logs borehole geophysics

STRATUM STRATUM BED INTERVAL

CHARACTERIZATION RESOLUTION RESOLUTION RESOLUTION

P.2-19
Data Considerations -3

• Field scale variations

- controlled by viscous forces
- capillary forces negligent

• Small scale
- viscous and capillary forces interact with
sedimentary structures
- Viscous forces drive oil along permeable
laminae
- Capillary forces force the wetting phase
from high to low K zones
- Orientation of laminae very important
P.2-21
RC Hint:

Understand precision
and accuracy

P.2-23
 Accuracy and Precision

Inaccuracy

Imprecision

TopCo
Consulting P.2-23
RC Hint:

Distinguish between
measured and
interpreted data

P.2-24
How can we integrate the data

Rock Core
Lithology, depositional origin, reservoir rock types
analysis
Framework
Structure, continuity, gross thickness trends
Log analysis
Reservoir Quality
Quality profiles, zonation, net thickness trends
Pressure
Fluid Flow production
Pore volume, transmissibility history match
After SPE 22350
P.2-31
 Quiz – chapter 2

• Name data types

• What is a cummulative distribution curve?
• What is an exceedance distribution curve?
• What is the difference between accuracy and precision
• What can be said about the scale of data?
• What are viscous forces?
• What are capillary forces?

TopCo
Consulting
Chapter 3

Agbami field, offshore Nigeria

Reservoir models
We must find clues to the truth

from circumstantial

evidence

1880 – 1930
proposer of plate tectonics

Alfred Wegener
Observations

• Each reservoir is unique

Learn from analogues

• We may never determine the real “truth”

• The data may give clues to the “truth”

• Solution:
Maintain multiple working hypotheses
This results in multiple realisations (models)
of the sub-surface

P. 3-1
 Solution space with multiple models

M4

M5 R
M1
M6

M2 M7

M3

Notes:
• Size of solution space such that the least likely models on the low side (10%)
and the least likely models on the high side (10%) are excluded.
• Hence 80% of the possibilities are included.
• Reduce the size of the solution space (if necessary) by appraisal
TopCo
Consulting P. 3-1 / 2
RC Hint:
Data ⇒
Information ⇒
Knowledge

P. 3-2
Key challenges

• Tying to reservoir performance

• Extrapolating to entire field
• Converting data across disciplines
• Prediction of variations
• Assessing the economic impact of technical work
• Conversion to an integrated development plan

P. 3-2
RC Hint:
Tie the work
of the RC team
to a business
purpose
P. 3-3
Model types

• Static
– Architecture of the field
• External Geometry
• Internal Geometry
• Reservoir parameter distribution

– Giga, Mega, or Macro, Micro scale

• Dynamic
– When flow starts to play a role
• Production, Pressures, Saturations
• Fluid contacts, Pore system model

P. 3-4
 The integrated model

Seismic Pressures
Compartimentalisation PVT
Facies Phase diagrams
Rock model DYNAMIC Permeability
Diagenesis Continuity
Heterogeneity
MODEL Flow units
Analogues Production
Outcrops

Upscaling
Risks Material Balance
Uncertainties
STATIC Sector modelling
Appraisal MODEL Simulation

TopCo
Consulting P. 3-9
 Quiz – chapter 3

• What do we mean by a unique solution?

• What can we say about the “truth”?
• Describe the solution space.
• Which are the different types of model?
• What is the integrated model?

TopCo
Consulting