E-mails: anamaria_2000@yahoo.com, david.davies@pet.hw.ac.

uk,
economides@houston.oilfield.slb.com
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Abstract
Current production technologies are demanding
not only a great effort to understand their technical
engineering aspects but also novel approaches and
evaluation methodologies to justify their investment and
contribute in their implementation in a wide spectrum of
geological, production and business scenarios.
Asset teams of the main operators and services
companies working at international level need also
management tools to search reservoirs with potential
interest to apply new technologies worldwide. The
production Geology approach has shown to be an
effective tool that contributes in the implementation of
complex production technologies in multiple production
geology scenarios

.
!ifferent sources of information were reviewed
during the screening process to select reservoirs with
appropriate geological, reservoir and production
characteristics with potential to apply intelligent well
technology. The review of the exploitation plans of key
production areas worldwide allowed the identification of
potential reservoir types with production problems or
opportunities for which the implementation of intelligent
technology is likely to be beneficial.
This new approach will help asset teams of the
main operator companies to take technical decisions faster
following their own development plans and business
strategies. The applicability of this novel evaluation
methodology to introduce production technologies at
corporative level will be shown briefly trough a case
study in "ene#uela
, $
.
Production Geology Approach
Current production technologies are demanding new
procedures to measure, control and monitor large amount
of engineering data. To optimi#e production in remote,
deeper and hostile areas novel drainage strategies are
re%uiring advance drilling and completion technologies
&,',(
. Current production seismic trends are oriented in the
Production Geology Approach as a tool to accelerate the implementation of
advanced drilling technologies: Intelligent well evaluation methodology
Ana Maria Hernandez, SI!"# Petroleum $esearch, orway% &r' &avid &avies, Heriot (att )niversity,
"din*urgh, )+% &r' ,hristine "conomides, )niversity of Houston, )SA'
analysis of data at basin or perforation scale
)
. *on+
conventional ways to analy#e the geological information
following these trends are therefore necessary.
,etroleum engineers are constrained in the search for
production technologies applications to hardware and
software development, technology evolution, engineering
data availability-analysis and data confidentiality.
.owever, due to the large amount of reservoir and
geological information available in the open literature,
production geologist may contribute in the design of
exploitation plans looking in advance for reservoir
candidates and geological constrains of each production
technology.
The production geology approach goal is to reduce
knowledge gaps between production technologies and
geological information using knowledge management
tools /figure 0. The challenges are1
To search for reservoir candidates to apply
advanced drilling 2 completion technologies
to identify the geological variables that impact
economically any production technology in any
reservoir scenario at any scale /basin, reservoir,
well to well, perforation0
to contribute in the understanding of the
geological aspects of production problems such
as sand production, scale, migration of fines,
formation damage, gas-water coning, hydrates
to participate in production 2 reservoir
technology development projects
to cooperate in drilling, completion,
development and production optimi#ation
projects using decision support tools for
technology assessment
The following information management tools were
used in this paper to reach that goal1
3nformation databases
.istoric technological charts
4nowledge maps /figure $0
!ecision support tools for technology
assessment
5creening Criteria
6conomic ranking matrix
4nowledge management allows a fast understanding
of large amount of information related with a specific
technical topic in short time. 3t is useful to build the
technical background re%uired for multidisciplinary teams
working on the implementation of production
technologies worldwide
7
.
This information will be useful as a frame where
operators can analy#e drilling and completion
technologies following their own exploitation plans and
business strategies.
Intelligent Well Evaluation Methodology
The focus of this paper is to identify the geological
variables that impact economically the intelligent well
technology and their related production problems at basin,
reservoir, well to well and perforation scale using
decision support tools for technology assessment. The
following evaluation methodology using the production
geology approach is proposed1
. Technological background
$. 3nitial screening criteria1 ,roduction geology
scenarios with potential to apply 3ntelligent well
technology
&. Geological constrains of 3ntelligent well systems
at reservoir, well to well and perforation scale1
a. !own hole sensors
b. 3solated control flow #ones
'. 3ntelligent well techno+economic options
Intelligent wells: Technological Background
To get a fast understanding of the intelligent well
technology a series of information sources were
consulted. 3ntelligent wells can be defined as complex
instrumented wells with downhole devices that are
connected remotely with reservoir management decision
systems
8,9,:
. Their main goal is to measure control and
monitor real+time data.
The drivers for intelligent well systems appear to
involve the following factors1
. ;are or #ero intervention
$. <ore completions per slot or per
penetration
&. =nderground gathering system sensors
and controls
'. To reduce costs and-or risks.
The main components are isolated control flow #ones,
speciali#ed chokes and valves, down hole sensors,
intelligent artificial lift systems, speciali#ed surface
systems and telemetry technology. 5ome production
scenarios where intelligent technology will increase
economic benefits are
8,9,:,,$,&
1
>il rims with gas-water coning problems in
mature reservoirs
Complex 3mproved >il ;ecovery projects
that re%uire monitoring of injection
-production fluids such as water alternating
gas /?AG0
Compositional heterogeneous reservoirs that
re%uire control of unwanted fluids /gas or
water0.
3mprovement of reservoir drainage strategies
trough production optimi#ation
.eterogeneous reservoirs with pressure
differential
*ew development plans in remote hostile
offshore environment
To reduce well intervention cost mainly
offshore
3ntelligent wells to greatly accelerate ultimate
recovery
Initial screening criteria: production geology scenarios
with potential to apply Intelligent well technology
The search for possible reservoirs in key production
development areas worldwide for intelligent technology
has yielded screening criteria for candidate recognition.
The analysis of the open literature allowed the
identification of key areas with potential intelligent well
applications.
According to the current offshore development plans
worldwide and intelligent well technology applicability
the following screening criteria was used1
>il rims in heterogeneous reservoir with short+term,
high economic potential interest for the main
operators
A set of locations where 3>; projects in complex
reservoir are in progress with up to+date reservoir,
production, drilling and geological data
;eservoirs with technology maturity, either with
intelligent wells or where related technology /'!,
>cean bottom seismic, borehole seismic, down hole
sensors, complex wells among others0 have been
implemented
;emote offshore areas with economic potential
where the reduction of intervention cost and surface
facilities are necessary
Areas with technological potential under
environmental regulations
?ide ranges of potential reservoir candidates to apply
intelligent well technology at basin scale are summari#ed
in the table according to reservoir type, reservoir
geology and potential applications
',(,),7,8,9,$:,$,$$,$&
.
3n the @ritish side of the *orth 5ea, current efforts are
associated to extend the life of mature reservoirs with
complex 3>; projects
&
and the development of thin oil
rims. 3n *orway, the main efforts will be done in
secondary recovery projects in several reservoirs with
complex fluid column, high lateral-vertical heterogeneity
plus high internal heterogeneity
'
.
3n the Gulf of <exico, complex heterogeneous
reservoirs with related technologies such as borehole and
'! seismic are evaluating the potential implementation of
intelligent well technology with the goal to accelerate its
implementation during the next five years
$'.
3n ?est Africa
(
many 6 2 , development plans are in
Aunder wayB status, however, the construction of
pipelines to connect Angola, *igeria and Congo, the C*G
plan in Angola, the construction of refineries in Angola 2
Congo and the gas to li%uids projects in *igeria are
opening a wide range of possibilities to continue the
exploitation of delta lobes, carbonates and turbidities oil
and condensates reservoirs.
3n these key potential intelligent well
development areas there are some geographical
constrains1
. ;emote areas such as the =k Atlantic <argin,
?est Africa and the *orwegian continental
shelf will re%uire speciali#ed offshore
technology to overcome related production
problems such as water handling, sand
production and hydrates processing
&
.
$. 3ncrease in water deep are expected in the
development plans for the next : years in ultra
deep reservoirs /more than (::: water deep0 in
the Gulf of <exico
$'
, =5AD @arents sea,
*orway and in Angola, ?est Africa. 3t will be
necessary to improve the reliability of the
technology.
&. Areas under environmental regulations such as
the *orth 5lope of Alaska, Civerpool bay
$$
in
the =4 and the Coral reef @arrier of Australia
are planning to develop intelligent well
technology to avoid well intervention and
environmental economic sanctions.
Geological onstrains o! Intelligent well technology at
reservoir scale
To highlight the geological variables that impact
economically the technology, the reservoir candidates
were analy#ed at reservoir scale /km+m0. 3t allowed
observing the most common reservoir types where
intelligent well can apply and they are mature1
5tructural reservoirs with high lateral and
vertical heterogeneity
Tilted reservoir associated with salt domes
;eservoirs with several degrees of
compartmentali#ation and connectivity due to
changes in reservoir architecture
5tratigraphic reservoirs with bypassed oil
#ones
All of them present a critical #one for 3ntelligent well
technology implementation1 partially connected sands
within irregular gas and water contacts in the middle part
of the reservoir, usually in tilted structures. They are the
result of changes in reservoir architecture between the
lower and the upper part of it. 3tEs important to identify
these #ones in advance to optimi#e production and reduce
production problems. .owever, they can be the best place
for intelligent injectors-producers and sensors in
heterogeneous oil rims and complex 3>; projects if they
are detected in advance.
To improve the dynamic reservoir management at 4m+ m
scale it is important to improve spatial target dimension
and geometrical visuali#ation. '! seismic techni%ues
combined with the new generation of sensors and >cean
@ottom 5eismic />@50 techni%ues will get a more
realistic visuali#ation of geological data. .owever,
'!-'C seismic allow having &! geometry and reservoir
coverage but its resolution is limited. @orehole seismic
systems have high resolution but geometrical limitation at
km+m scale, which is needed to control and monitor,
unwanted fluids in complex reservoir flow units within
the reservoir types identified.
;eservoir continuity is the geological variable that more
impact at 4m+m scale. 5everal potential applications to
optimi#e observability and controllability following the
reservoir continuity are visuali#ed if permanent resistivity
and electromagnetic sensors are implemented combined
with 'C-'! seismic, borehole seismic, micro seismic
ocean bottoms seismic, plus isolated inflow control valves
$(,$),$7,$8,$9
. 3t is still necessary to reduce the data gap
between seismic and core data and improve its resolution.
,ermanent down hole monitoring systems will play an
important role in the new reservoir characteri#ation Ain
situB and Avirtual reservoirB trends. The need to speed up
the reservoir knowledge reducing the uncertainties
regarding to the everyday reservoir life and reservoir
spatial distribution will have an impact in the dynamic
reservoir management as a key part of the visionary
instrumented field.
A decision support tool for technology assessment based
on <onte Carlo simulation was used to evaluate the
geological variables that impact economically the
intelligent well technology at well to well and perforation
scale. 3t will be describe in detail in the techno+economic
section.
Geological constrains o! Intelligent well technology at
well to well scale
The following variables were evaluated in the reservoir
candidates using <onte Carlo simulation at well+to+well
scale /figure &0:
Vertical connectivity (m)
Kv / Kh ratio
Flow Units (m)
Reservoir flow units was the variable with more
impact at this scale, therefore, it was reviewed in
detail in the reservoir candidates because they are
the eoloical architectural elements between wells
that miht be control and monitor usin borehole
seismic and also they are stronly related with the
dimension, desin and placement of the isolated
control flow !ones" #n this paper a reservoir flow unit
is defined in the followin way:
Reservoir flow unit
Roc$ types
Roc$ wet ability
Roc$ strenth
#t was noticed differences in the dimensions
reservoir flow units in each eoraphical area (fiure
%)" Reservoir candidates in &est 'frica and
Vene!uela present hih lateral and vertical
heteroeneity but more homoeneous roc$ types
(arenites with more than () * of +uart!)" Flow units
associated with thic$ fluvial channels and
submarines lobes can be found in the reservoir
types described above" ,heir rane is between -/.
/00 . /0 meters in hori!ontal wells"
1y contrast reservoir candidates in 2orway, 3ulf of
4e5ico and #ndonesia not only present hih lateral
vertical heteroeneity but also several derees of
internal heteroeneity (sublitarenites and litarenites
with more than () * of roc$ framents) and hih
clay content" #n some cases can be considered
associated to chaotic sedimentation mainly in the
2orweian 2orth 6ea" ,he architectural elements
that compose channels, bars and lobes in these
eoraphical areas tend to be thinner with a rane
between -/. )0 7 ) meters in hori!ontal wells"
,he observations above hihliht the necessity for
sensors to improve the eometrical visuali!ation and
desin of the isolated control !ones in the rane of
/00. 0 meters" ,ermanent high resolution monitoring of
changes in fluid saturation in the near well area and deep
looking between wells using electromagnetic and seismic
sensors in the well bore are recommended in all the
scenarios. ;eservoir under complex recovery process will
be benefit with potential saturation movies that will
reduce uncertainties in the well injector-producer location
in compartmentali#ed reservoir. .eterogeneous reservoir
with oil rims will increase the possibility to detect
bypassed oil highlighting changes in the saturated volume
permanently. The potential improvement in the
knowledge of the drainage patterns in complex reservoir
will optimi#e infill+drilling programs improving the
sweep efficiency. ,ermanent monitoring will also open
the feasibility for new production scenarios and new ways
to do reservoir management in mature fields decreasing
substantially drilling cost and extending their life.
,ermanent reservoir monitoring system will fill the need
of many operators for reservoir uncertainty reduction in
several ways such as reducing the target location. 3t will
allow them work reduce the current Adimensional
problem A up scaling core data and downscaling seismic
data, finally proposing a technology to work at the scale
reservoir engineers need to improve their reservoir
management understanding. All the reservoir types will
be benefit with a permanent down hole system.
Geological constrains o! Intelligent well technology at
per!oration scale
A decision support tool for technology assessment was
used to evaluate the geological variables that impact
economically the intelligent well technology at
perforation scale. The following variables were evaluated
in some of the reservoir candidates using <onte Carlo
simulation:
Roc$ strenth
Roc$ type
Roc$ wetability
,hese three variables compose a flow unit at
perforation scale and they presented -/. the same
impact" Roc$ type can be defined as the result of the
combination of:
,e5tural attributes (rain si!e, shape,
roundness and sortin)
4ineraloical variability
8lay composition
The analysis of geological variables that impact the
isolated control #ones is shown in the figure (. Two
important concepts arrive1 completion windows and
drainage points. The completion windows can be defined
as the volume of rock that composes an optimal reservoir
flow unit. !rainage points are the intervals that can be
perforated following a reservoir flow unit.
@igger completion windows are found in ?est Africa and
"ene#uelan reservoirs and three potential well
configurations are proposed1 hori#ontal, high angle and
multibranch wells. 3n them, it is possible to isolated
reservoir flow units in intervals between F-+ $:: G$: mts
in hori#ontal wells.
3n the Hurrial Hield, "ene#uela high angle wells
perforated following the completion windows shown
higher production /double in some cases0 and less
production problems than the vertical well perforated
before in the same field
&:
. 3solated control #ones of more
than $:: meters are proposed in this type of well
configuration.
5maller completion windows are found in the *orway,
Gulf of <exico and 3ndonesian reservoir due to their rock
types /sublitarenites and litarenites0. .eterogeneous
reservoirs usually have between : G ( rock typesD
however, it is possible to find reservoirs with even more
than (: rock types in the *orwegian *orth 5ea related
with chaotic sedimentation. These reservoirs have the
smallest completion windows /F-+ :+( m0.
Two possible well configurations will be high angle wells
following the completion windows and long hori#ontal
wells crossing small channels. They will be drilled in oils
rims with a vertical section between $:: G': meters so
isolated control #ones of high angle well might have F-+
:: meters in high angle wells, in hori#ontal wells they
might be longer. 3n both cases, perforation optimi#ation
/very deep Arock typeB perforations in the optimal
completion windows0 and individual control #ones are
suggested to get higher productivity and less production
problems.
An additional problem that might have a high economic
impact in the implementation of isolated control #ones is
the presence of intervals prone to scale or sand
production. A previous study done in the *orth <onagas
fields, "ene#uela showed in the analysis of core
information vs. perforated intervals that wells perforated
in the completion windows had more production even if
the perforated intervals were small, by contrast wells
perforated in the AlayersB /optimal completion windows
plus sensitive intervals prone to sand or scale problems0
had less productivity and more production problems
&,&$.
Iones with extreme porosity -permeability values usually
have the highest production of sand, and there is a
geological explanation for that /the apparently good
sands, with biggest grain si#e that represent reactivation
#ones between cross bedding planes use to be the weakest
sand intervals with lowest geomechanical strength0. They
might produce the early breakouts in the rock if they are
perforated. 3ntermediate intervals will be very sensitive
with any change in the flow regime if they are perforated.
Iones with high clay mineral contents will have some
plastic deformation and will tend to fail later and produce
scale problems. The most resistant intervals seem to be
cross bedding planes even if they are small, if the wells
are perforated in these #ones they will act as a filter.
A software the get the optimal completion windows
during the perforation planning is suggested. 5ome
possible analysis to upscale this perforation analysis to
reservoir scale might be done analy#ing reservoir pressure
data vs. perforated intervals or micro+seismic data vs.
flow #one indicators #ones. ;ock types are used together
with wetability data to identify the flow #one indicators
and the Amott wetting index to estimate the relative
permeability curves in the reservoirs, therefore the
geological perforation data might be extrapolated with
engineering data.
Intelligent well technologies and advanced business
"odels
To accelerate the identification of technical-economical
value of intelligent well technologies the current criteria,
advanced decision support tools and methodologies to
justify new technology were reviewed. Traditional
economical evaluations are1
. + !iscounted cash flow analysis
&&
that evaluate time
value of money and investment opportunity
$. + Cife cycle cost
&'
related with technology reliability
evaluation
&. + !ecision trees
&(
related with the identification of
the economic threshold
'. J <onte Carlo 5imulation
&)
that allow getting a
forecasting and risk analysis and identification of
sensitivities and economic drivers
The intelligent well economic projects goal is to get the
economical impact that everyday events might have
during the reservoir life and it re%uire to analy#e
complexity, variability and uncertainty. To capture these
events there is a necessity of more flexible techno-
economic decision support tools and adaptable
methodologies to evaluate economically technology
diversity
in a more complex reservoir and business scenarios. 5ome
of these new petroleum economic trends are1
!ynamic Complexity1 Hlexible management
models to capture complex conditions that create
uncertainties over time in petroleum projects
&7
.
<ulti+prospects 6valuation1 ,robabilistic models
that allow evaluating multiplayer prospects
building and economical correlation matrix
&8
.
<ulti+objective !ecision Analysis1 3t allows
measuring technological benefits 2 financial
performance ranking several technological
alternatives in several scenarios
&9
/*," F
technology gain0
Techno+economic decision support tools using
new <onte Carlo simulation capabilities of the
Crystal @all software
The last one was used in this paper. 3n the first place a
decision support tools for intelligent well technology
assessment was designed based on %uantitative risk
analysis using <onte Carlo 5imulation
':.
The
methodology is described in the figure ). The first part
was1
. + to identify the geological variables that impact
economically the intelligent well technology
$. + to do the sensitivity analysis of each variable
&. + to search the probability distribution to model
each variable
'. + to determine the decision variables and the
assumptions that generate the variability and
uncertainty
(. + to define the forecast
The seconds step was to run the <onte Carlo 5imulation
using the following advanced tools of the Crystal @all
software1

Correlation matrix1 !efines and automates
correlations of assumptions
Tornado Chart1 3ndividually analyses the impact
of each model variable on a target outcome
Two+dimensional simulation1 3ndependently
addresses uncertainty and variability using two+
dimensional simulation
3t was useful as a techno+economic tool to evaluate the
impact of the geological variables in the implementation
of intelligent well technology
'
/figure 70. 3t can be
adaptable for the operators following their own
development plans and business strategies. As the
3ntelligent well technology is the result of several
production technologies a technical- economical ranking
matrix is proposed for the evaluation of the best
technological practices in the same reservoir identifying
the geological variables that have more technological
impact in each reservoir scenario.
A flowchart showing an overall methodology
proposed for an intelligent well project is shown in the
figure 8. 3t takes into account the evaluation of technical,
economical and reservoir scenarios adaptable to
operatorEs needs. Two bottlenecks for the acceleration of
intelligent well technologies implementation seems to be
business and reservoir models, which donEt capture the
current complexity, variability and uncertainty, and
oversimplified models are far from what the industry
already have to date.
ase study using the Production Geology Approach:
Multilateral technology i"ple"entation in #ene$uela
To accelerate the implementation of multilateral
technology in ,!"5A "ene#uela, a multidisciplinary
technology team investigated the technological constrains
and their potential application during 999 and it re%uired
a corporative domestic effort. The following corporative
steps were used in 3*T6"6,+,!"5A, "ene#uela to
implement the complex well architecture technology at
domestic scale with success1
. >pen literature review and generation of a
bank of documents related with all the
technical aspects of the technology accessible
to the asset teams by internet
$. !iscussion of all technical aspects, related
with the technology with professionals
working on the technology worldwide
/operator of the main oil companies, services
companies, research institutes, official
institutions, universities0 trough domestic and
international forums.
&. !iscussion of all case studies with the
domestic asset teams in the reservoirs
identified using the production geology
approach via domestic forums.
%" ;eview of the domestic exploitation plans
and candidate recognition to apply
technology in the $:::+$::) corporative
development plans. !iscussion of the $:
potential cases identified with
multidisciplinary asset teams via round tables
and domestic and international forums"
(. 5pread and divulgation of the technological
information obtained to the asset teams at
domestic scale by 3nternet using the
information management tools previously
described.
). ,ilot project to test technology reliability,
performance and economic potential in the
reservoirs with high technical+economical
potential within the corporative project
hierarchy
7. Technology massification
3n this way, all the asset teams were able to get the
technological background necessary to understand the
technology and to analy#e the potential application in
their own exploitation units. All this effort was useful to
implement the complex well architecture in "ene#uela at
domestic scale, changing 9(K of failure in previous
multilateral wells to 9(K of technological implementation
success in just one year.
onclusions
. 3ntelligent well technology implementation can be
accelerated only if multidisciplinary efforts using
knowledge management tools to facilitate the
understanding are undertaken.
$. A production geology approach was used in this
paper with the goal to accelerate the understanding of
the impact of the geological variables at reservoir,
well to well and perforation scale on 3ntelligent well
technology.
&. 5creening criteria were established to identify
reservoir candidates for intelligent well technology in
key potential production geologies scenarios
worldwide.
'. A critical #one for intelligent well technology
implementation was identify at reservoir scale
(. To improve the geometrical spatial visuali#ation and
resolution of sensors are necessary to decrease the
current data gap between seismic and core data,
permanent seismic monitoring systems are suggest.
). Geological variables that impact economically the
implementation of 3ntelligent well technology were
identified at reservoir /reservoir continuity0, well to
well /flow units0 and perforation scale /rock type,
rock strength and rock wetability0.
7. The identification of completion windows and
optimal drainage points to increase productivity and
avoid production problems will highlight the best
well placement and configurations increasing the
performance of the isolated control #ones.
8. The :+$:: meters scale is critical for measurement,
control and monitoring.
9. A decision support tools for technology assessment
based on advanced <onte Carlo simulation was
useful to analy#e the impact of the geological
variables.
:. *ew business and reservoir models are necessary to
capture everyday events related with intelligent well
technology in complex reservoir and business
scenarios.
. Asset teams of the main operator companies working
in offshore development plans may adapt this
intelligent well evaluation methodology to evaluate
their potential application following their own
development plans and business strategies.
$. This paper presents an innovative approach for
analy#ing geological information to contribute in the
implementation of the intelligent well technology and
production technologies in general.
Acknowledge"ents
The author wishes to thank 53*T6H ,etroleum ;esearch,
*orway for supporting publication of this paper, mainly
to the 3ntelligent ?ell 5trategic ,rogram leader Hridtjof
*yhavn and 53*T6H director !avid Cysne. <any thanks
to !r. !avid !avies from .eriot ?att =niversity,
6dinburgh, =4, where most of the reservoir candidates
information was compiled, to allow the publication of this
paper. 5pecial thanks to the ?ell Construction
4nowledge community of ,!"5A+3*T6"6,, "ene#uela
for their support during the <TC project and to !r.
Christine 6conomides of the =niversity of .ouston, =5A
for her technical remarks.
%e!erences
. .ernande#, A.<.1 A <ultilateral wells1 experience
and future development in ,!"5A, "ene#uelaB.
,resented at the 5,6 Horum 5eries on engineering
aspects of multilateral wells, ;eservoir <anagement
section, Colorado, =5A. Luly 999.
$. .ernande#, A.<.D @arrios, L.C.D 5aputelli, C.D
6conomides, <. L1 A <ultilateral wells1 experience
and future development in ,!"5A, "ene#uelaB.
,aper presented at the 3nternational Conference on
.ori#ontal Technology, .ouston, =5A. *ovember
999.
&. www.dti.gov.uk
'. http1--odin.no-oed-engelsk
(. www.mbendi.co.#a-proj-
). www.sintef.iku.no
7. 5aputelli, C., =ngredda, A1 A4nowledge
Communities help to 3dentify best operating
practicesB paper 5,6 (&7(9 presented at the "3
CAC,6C conference, Caracas, "ene#uela. April
999.
8. www.force.org-wells-wellsJagenda.htm
9. 5. MuD !. !aviesD !. 5herrard. AThe modelling of
Advanced 3ntelligent wells+an applicationB paper
5,6 )$9(: presented at the 5,6 Annual conference,
Texas, =5A. >ctober $:::.
:. 5trand, GD Ansell LD ;ausand, <. <odeling of
3ntelligent wells. Horecasting Cife+Cycle cost.
53*T6H internal report, 999.
. 6rlandsen, 5.1 A,roduction 6xperience from 5mart
wells in the >seberg HieldB paper 5,6 )$9(&
presented at the 5,6 Annual Technical Conference,
Texas, =5A. >ctober $:::.
$. www.speoslo.no-html-mars$::.htm
&. Coull C. A3ntelligent completion provides saving for
5norre TC,. >il 2 gas journal, April $::.
'. Carsen, LD 5kauge, A. A 5imulation of the 3mmiscible
?AG process using cycle+dependent three+phase
relative permeabilityEsB paper 5,6 ()'7( presented
at the Annual Technical conference, Texas, =5A.
>ctober 999.
(. 4rol, !D *oual, "D van <aren, ,. A6xploring <ature
Areas1 The role of TechnologyB paper 5,6 ()89&
presented at the >ffshore 6uropean Conference,
Aberdeen, =4. 5eptember 999.
). Lensen, @D .jelleset, 6D Carsen, C. A3nterference
testing to verify drainage strategy for a large offshore
developmentB paper 5,6 ()'$: presented at the
Annual conference, Texas, =5A, >ctober, 999.
7. Hlolo, CD 4joerefjord A ;evealing the petrophysical
properties of the thin+bedded rock in a *orwegian
5ea reservoir with logs, core and mini+perm data.
5,6 ;eservoir 6valuation 2 eng. "ol. &, *N &, Lune
$:::.
8. 4ing, GD !avid, ?D Tokar, T. A Takula field1 !ata
ac%uisition, interpretation and integration for
improved simulation and reservoir managementB
paper 5,6 ))':: presented at the 5,6 ;eservoir
5imulation 5ymposium, Texas, =5A. Hebruary $::.
9. @arting, !D Cassus+!essus, LD Cope#, @. A?ell
control guidelines for GirassolB paper 5,6-3A!C
($7)& presented at the !rilling conference, .olland.
<arch 999.
$:. <ikes, !D @ar#andju, >D @rining, L. A =pscaling of
flow units for reservoir flow incorporating small
scale heterogeneitiesB paper 5,6 )87:$ presented at
the Asian ,acific >il and Gas conference, 3ndonesia.
April $::.
$. Gorkhan, CD ;anler, @D <urray ?. B!esign,
implementation and analysis of multilayers transient
test in ?hite ;ose HieldB paper 5,6 )&:8: presented
at the annual conference, Texas, =5A. >ctober $:::.
$$. Gilliver, ;. A Conservation partnerships as part of
environmental management in a sensitive coastal
location1 Civerpool @ay and gas production
operationB paper 5,6 ')88: presented at the
international conference on .ealth, 5afety and
6nvironment, Caracas, "ene#uela. Lune 998.
$&. GrahamD 5cott, CD Citllewood, L.B !evelopment of a
downhole scale management philosophy for water
sensitive reservoirsB paper 5,6 (87$) at the
3nternational 5ymposium on Hormation !amage
control, Couisiana, =5A. Hebruary $:::.
$'. www.fe.doe.gov-oil+gas-reports-ostr-ostrJall.pdf
$(. 5eymour, ;D @arr, H. AAn improved seabed seismic
'! data collection method for reservoir monitoringB
paper 5,6 &)89& at the 6uropean ,etroleum
conference, <ilan, 3taly. >ctober 99).
$). Al+*ajjar, *D @revik, 3D ,salia, !. A'! seismic
modelling of the 5tatfjord field1 3nitial ;esultsB paper
5,6 ()7&: presented at the Annual Technical
conference, Texas, =5A. >ctober 999.
$7. <ultiwell 3maging. The leading edge, April+<ay
999
$8. <jaaland, 5D ?ulff, AD Causse, 6D *yhavn, H.
A3ntegrating seismic monitoring and 3ntelligent
wellsB paper 5,6 )$878 presented at the Technical
conference, Texas, =5A. >ctober $:::.
$9. 5hyen, LD Lohnston, !. A3nterpretation and modelling
of time+lapse seismic data1 Cena Hield, G><B paper
5,6 ()7& at the Annual conference, Texas, =5A.
>ctober 999.
&:. 5mith, ;D Colmenares, ;D ;osas, 6. A>ptimised
reservoir development using high angle wells, 6l
Hurrial Hield, "ene#uelaB paper 5,6 )9'&) presented
at the Catin American and Caribbean ,etroleum
6ngineering conference, Argentina. <arch $::.
&. Gu#mOn, L.D .ernOnde#, A. 99(. !iagenetic and
!epositional constrains in ;eservoir Puality,
6xamples from *orth <onagas >il Hields of 6astern
"ene#uela. ,resented at the AA,G 3nternational
<eeting. .ouston, =5A.
&$. .ernande#, A.D Gon#ale#, >. Geological
3nterpretation in the Construction of Trend <aps of
5and ,rone ;egions. 3nternational 5and Control
?orkshop. ,!"5A+3*T6"6,, Cos Te%ues,
"ene#uela, 99'.
&&. 5impsonD CambD Hinch. AThe application of
probabilistic and %ualitative methods to assets
management decision makingB paper 5,6 (9'((
presented at the Asia ,acific conference on integrated
modelling for Assets <anagement, Lapan. April
$:::.
&'. .arding, T.A Cife cycle value-cost decision makingB
paper 5,6 &(&( present at the 3nternational
,etroleum conference, <exico. <arch 99).
&(. <udford, @. A "aluing and comparing oil and gas
opportunities1 a comparison of decision tree and
simulation methodologiesB paper 5,6 )&$:
presented at the Annual conference, Texas, =5A.
>ctober $:::.
&). <urtha, L. A<onte Carlo 5imulation1 3ts status and
futureB paper 5,6 &79&$ presented at the Annual
Technical conference, Texas, =5A. <arch 999.
&7. Gallant, CD 4ieffel, .. A=sing learning models to
capture the dynamic complexity in ,etroleum
explorationB. ,aper 5,6 ($9(' presented at the
.ydrocarbon 6conomics and 6valuation 5ymposium,
Texas, =5A. April $::.
&8. Haya, C. A ,robabilistic model to develop multiplayer
gas and oil prospectsB paper 5,6 )9)' presented at
the Catin American and Caribbean ,etroleum
6ngineering conference, Argentina. <arch $::.
&9. 5uslick, 5D Hurtado, ;D *epomuceno, ;. A 3ntegrating
Technological and financial uncertainties for offshore
oil exploration1 an application of multi+objective
decision analysisB paper 5,6 )8(79 presented at the
.ydrocarbon 6conomics and 6valuation 5ymposium,
Texas, =5A. April $::.
':. www.decisioneering.com
'. 4engpol, 4D >E@rien, C. AThe development of a
decision support tools for the selection of advanced
technology to achieve rapid product developmentB.
3nt. L. ,roduction 6conomics )9 /$::0 77+99.
Table
&igures
Reservoir ,ype Reservoir 3eoloy
3eoraphical
'rea
9otential #& 9roduction 6cenarios
:il
;istal shore to shallow
marine sandstones
2orth 6ea
UK
9ressure maintenance" #n<ector usin
scalin (low 9#/K)
:il
6hallow marine
6andstones
2orth 6ea
UK
=9/=, unconsolidated, >69 to increase
flow rates
:il
9artially communicated
channali!ed sandstones
2orth 6ea
2orway
>5tended reach with smart completion to
control as production
:il
;istal deltaic sands
se+uences
2orth 6ea
2orway
;rainae optimi!ation, !ones with early
water influ5, unsealin faults, sand
production
:il ;eltaic to shallow marine
2orth 6ea
2orway
#mprovement of drainaes strateies
:il
1ay fill thin bedded sand
se+uences
2orth 6ea
2orway
#mprovement of drainae strateies
/e5tended reach wells
:il ;istal shore sandstones
2orth 6ea
2orway
&ater in<ection pro<ects
:il
8omple5 fluvial deltaic
se+uence
2orth 4onaas
Vene!uela
9roduction optimi!ation to reduce water
cut/ as brea$ thouht &'3 pro<ect
:il
Fluvial to near shore
sandstones
8anada
4ultiplayer reservoir with pressure
differential
:il
4arinal marine sands/
faulted
8anada 9oor +uality, new recovery strateies
:il
Unconsolidated deltaic
sands
:man
=eavy oil underlyin by stron a+uifers,
water/oil separators
:il rim
&ith low 3:R, a+uifer
,riassic 6andstone /
halite?s
2orth 6ea
UK
=ih K intervals, prevent water/as
conin, hih @/V heteroeneity, selective
isolation
:il rims
Fluvial.deltaic to shallow
marine
2orth 6ea
UK
;epressuri!ation, comple5 contact
movement
:il rim with as cap
8oastal deltaic/ submarine
fans
2orth 6ea
UK
;rainae optimi!ation
,hin :il rim
&ith solution as
8hal$ se+uences
2orth 6ea
;enmar$
=ih porosity chal$ intervals, as/water
conin
:il/3as to li+uids
8oastal comple5 sand and
carbonates
&est 'frica
'nola
@ow permeability formation, pressure
decline
:il/ 3as to li+uids ;eltaic sand lobes
&est 'frica
'nola
=ih water cuts, scale inhibitors in water
in<ection
:il/ 3as to li+uids
,urbidities sand
se+uences
&est 'frica
8ono
&ater deeper than A%00 mts
:il/ 3as to li+uids ;eltaic sand @obes
&est 'frica
'nola
9otential as condensate development
3as
;istal shore to shallow
marine
2orth 6ea
UK
9ressure maintenance" #n<ector usin
scalin inhibitors to avoid formation
damae (low 9#/K)
;ry 3as
,riassic 6andstone /
halite?s
2orth 6ea
UK
=ih K intervals, prevent water/as
conin, hih @/V heteroeneity, selective
isolation
;ry 3as
#rreular 6ands bodies in
salt tectonics
3:4
U6'
#mprovement of well productivity
&et as, condensate Upper 8retaceous 8hal$
2orth 6ea
;enmar$
=ih porosity chal$ intervals, as/water
conin
3as, condensate ;eltaic to shallow marine
2orth 6ea
2orway
#mprovement of drainaes strateies
3as condensate
2orweian continental
shelf
2orth 6ea
2orway
9otential as development
Rich as, condensate
8omple5 structure/ hihly
stratified
2orth 6ea
2orway
:verpressiri!ed, fault transmissibility?s
affectin @/V pressure distribution
8ompositional 6hallow marine
2orth 6ea
2orway
#mmiscible &'3 in<ection
8positional
;istal deltaic tidal,
marinal marine, faulted
dome
2orth 6ea
2orway
#mprove producer in<ection locations,
heteroeneous K
Advance
dGeology


9roductio
n

&rilling
-
,ompletion
!echnologies
+nowledge Management
+nowledge
Gaps:
!ime -
Money

&igure '( Production Geology Approach
.
&igure )( *ensitivity chart showing the geological variables that
i"pact the intelligent well technology at well+to+well scale
&igure ,( %eservoir !low units di"ensions in
hori$ontal direction in reservoir candidates
>conomics
6oftware?s
Modelling
!ools
;iscounted
8ash Flow
;atabases
#& 6tate of
'rt
Field
e5perience
I( $elated
!echnology
I(St $eservoir
Management

I(S technology
. oo_ooo:_
nomoo@mo_
;evelopment plans
I( "conomics
Field
6tatus
,echnoloical
2eeds
Remote
6ensors
'dvanced well
,echnoloy
8ompanies
wor$in on #&
&orldwide
6ponsors
9revious
#& pro<ects
,echnical 1oo$s/
4aa!ines
1usiness
6cenarios
9revious
,echnoloy
Reservoir
>conomics
#nflow control
Valves
Reservoir
9ac$aes
-/00 A)0 A00 )0 /) A) ) m
Reservoir 8andidates
2orway
3ulf of 4e5ico
#ndonesia
&est 'frica
/enezuela
6and production prone
6cale prone
:ptimal
8ompletion
&indow
011201 m
$eservoir flow units:
$oc3 types 4 roc3 weta*ility 4 roc3 strength
;rainae points
Horizontal well
9ro<ect >conomics
Flow 8ash, 29V
/alves
,ho3es
,ontrol 5ones
Sensors
#dentification of variables that
produce economical impact
Variable
A
Variable
/
Variable
n
6earch of the probability
distribution to model each
variable
;etermination
of variables with
hih impact
6ensitivity analysis
of each variable
Run the
6imulation
'nalysis of
results
P/
AA%A"AB
%)
)"C
AA")B
A00"00
%0")
AA"/D
C"AC
AE()"ED
AC
A%"0
E")/
A)0"00
%D")
("))
AD"E%
./00"00 0"00 /00"00 %00"00 C00"00
6,:##9
&ells to drill
9lateau rate
;iscount factor
Facility si!e
Recovery
&ell cost
&ell rate

&ecision

/aria*les
Assumptions


/aria*ility

)ncertainty
#orecast
In6ector
#n<ection points
Valves/cho$es
Fonal flow sensors
Producer
;rainae point
Valves/cho$es producer
9ermanent resistivity sensors
Interwell data
;istance between wells
8ompleted interval
9erforation
roc$ types
roc$ wettability
roc$ strenht
pore pressure
barriers
layers
6urprise handlin
&ater 1rea$out
Monte ,arlo Simulation
&igure -( &igure showing the co"pletion windows.
drainage points. sensitive production intervals and
reservoir !low units described in this paper
&igure /( 0ecision support tools !or technology
assess"ent !lowchart
&igure 1( Monte arlo si"ulation to deter"ine the
variables with "ore econo"ic i"pact at per!oration
scale
Table '( *u""ary o! the di!!erent reservoir types
and potential intelligent well applications
!arget #orecast: $eservoir varia*ility
Reservoir continuity ($m.m) "%%
Vertical connectivity (m) ")0
Kv/$h
ratio
"%(
Flow units (m) "B)
.A .0")
0 0") A
4easured by Ran$ 8orrelation
Sensitivity ,hart
6and production prone
6cale prone
:ptimal
8ompletion
&indow
011201 m
$eservoir flow units:
$oc3 types
$oc3 weta*ility
$oc3 strength
:ptimum
;rainae points
Intelligent well
&igure -( &igure showing the co"pletion windows.
drainage points. sensitive production intervals and
reservoir !low units described in this paper
&igure 1( Monte arlo si"ulation to deter"ine the
variables with "ore econo"ic i"pact at per!oration
scale
I( pro6ect
7rainstorming
Identify !echnical
Issues related with
I(
Identify
"conomical
Issues related
with I(
Identify I(
Potential
Scenarios
Initial
8ptions
Screening
I( production
8ptimization
Solutions
Prospective I(
economic
scenarios
Identify ,ritical
&ecision Issues
ew *usiness
models
&iscounted ,ash
#low Analysis
I( ,ase history
selection
I(
$eservoir
Modeling
&igure 2( Intelligent well pro3ect !lowchart
&igure 4( 5nowledge Maps
6ensors G
controls

&ecision

/aria*les
Assumptions


/aria*ility

)ncertainty
#orecast
In6ector
#n<ection points
Valves/cho$es
Fonal flow sensors
Producer
;rainae point
Valves/cho$es producer
9ermanent resistivity sensors
Interwell data
;istance between wells
8ompleted interval
9erforation
roc$ types
roc$ wettability
roc$ strenht
pore pressure
barriers
layers
6urprise handlin
&ater 1rea$out
Monte ,arlo Simulation