Place Volumes
EP 2010-0432
DOCUMENT HISTORY
Author/Custodian Han Raven, PTU/EDDI
Approved by Hans Goeyenbier (Global Discipline Head Production
Geosciences); Ibbel Ansink (Global Discipline Head
Geophysics); Martin Kraaijveld (Global Discipline Head
Petrophysics); Dave Masson (Global Discipline Head
Reservoir Engineering)
Endorsed by Bill Henry (Group Chief Petroleum Engineer)
Document type Guidelines
Distribution HCM Portal
Date Issue Reason for change
October 2010 1 Release on HCM Portal
This document will be maintained live on the SIEP intranet site. The Web -based document
will be the controlled version and revision announcements will be published on the web.
Copies or extracts of this manual, which have been downloaded from the website, are
uncontrolled copies and cannot be guaranteed to be the latest version.
This document must be read in the context of the Control Framework for Discovered SFR
and Expectation Resource Volumes and the Control Framework for Proved Reserves.
T ABLE OF C ONTENTS
INTRODUCTION ................................................................................................................ 3
3.2 Documentation.................................................................................................................. 22
5. REFERENCES .......................................................................................................... 25
6. ABBREVIATIONS...................................................................................................... 25
INTRODUCTION
The scope of this document is to describe the role of the production geologist (PG) in the
estimation of in-place hydrocarbon resources. The objective of this document is to provide a
practical guide regarding the estimation of in -place volumes, including the establishment of
uncertainty ranges, with the intention of establishing a uniform approach within the Shell
Group to mapping and volumetrics. This will facilitate the signoff on such volumetric
estimates by the PG TA2. Since the introduction of DCAF, Production Geology has single
point accountability for generating the In Place Volumetric Report and for planning and
executing the technical assurance of the estimates.
It is written from the perspective of a PG professional explaining how to execute a mapping
and volumetrics exercise underpinning a resource estimate, and how to use professional
judgment. It makes reference to tools, workflows, potential pitfalls and additional information
sources, and provides a framework to share best practices and lessons learned. No specific
reference is made to proved reserves estimation, determination of proved area, and reliable
technologies. Various changes are expected as a result of project Camel – this document
will be updated for these in 2011.
Although this guide focuses on the PG role, input from other disciplines is critical, especially
from seismic interpretation and petrophysics (see Petrophysical Standards & Guidelines).
These disciplines generally deliver data and interpretations used in hydroc arbon estimation,
with consistency between input data and results being checked through close -the-loop
exercises. A further close-the-loop can be done based on dynamic reservoir performance.
Close-the-
loop
Data / Data /
Interpretation Interpretation
SI PG PP
Seismic Production Petrophysicist
Interpreter Geologist
Close-the- Close-the-
loop loop
1D 2D 3D
Exploration
Development / Production /
Abandonment
(this guide)
The objectives of the volumetric estimation vary through this lifecycle. In the exploration and
appraisal phases the key objective will be the ranking of prospects and leads, and the
justification of exploration and appraisal wel ls. During field development focus will be on
decisions regarding feasibility and selection of the optimal development concept, and
resource estimates and production forecasts as input to business plans. During the
operations phase emphasis will be on decisions regarding zone changes, well interventions ,
infill drilling and secondary/tertiary recovery options .
As a result, volumetric estimates are calculated, documented and reported in very different
formats to suit the requirements at different phases in the asset‟s lifecycle, including:
dSFR Project Initiation Note (DG1)
Reservoir Characterisation Report (method, volumes)
Integrated Reservoir Modelling Peer Assist
Feasibility Report (DG2)
Field Development Plan (DG3)
Group Investment Proposal for Final Investment Decision (DG4)
FDP updates
Field Studies
Asset Reference Plan
Annual Cycle: ARPR/HRV-MS Update/Annual Field Review/Business Plan/Basis for
Booking/RES sessions
Decision on asset abandonment
This note is a HCM Best Practice Guides that are available through the HCM portal. Specific
workflows for the use of Petrel are available through the IRM Portal and the Global Petrel
Portal. Additional clarification and regional/area of operations specific guidance can be
obtained from the Regional PG Discipline Lead and/or the RRVM.
Throughout this note the terms HIIP, GIIP and STOIIP refer to in -place volumes that comply
with the Control Frameworks for Discovered SFR and Expectation Resource Volumes .and
for Proved Reserves (these are currently being merged).
1. THE MINDSET
Volumetric estimates are based on a combination of hard data (from the specific reservo ir or
field and regional information) with soft data (geological concept, analogues) and , therefore,
always require professional judgement. A range of estimates should be made to capture
subsurface uncertainty ranging from the minimum (i.e. what is really known about the
reservoir) to the maximum resources the reservoir could potentially hold. Therefore,
volumetric estimates enhance a project or asset team‟s awareness of subsurface
uncertainty and may provide justification for further data acquisition or ap praisal.
There are many different classifications of hydrocarbon resources (S cope For Recovery-
Expectation-Proved; P90-P50-P10, Proved-Probable-Possible) but all should be
underpinned by a single cumulative density function (cdf) defining the in -place volumetric
range.
Based on the available data (field data, regional data) the team will have a less or more
specific interpretation of the reservoir. As framework for this interpretation a geological
concept should be defined, which comprises structural (defo rmation style, faulting,
fracturing), depositional (sequence stratigraphy, facies trends, reservoir architecture) and
diagenetic (recrystallisation, cementation) elements. In early stages this concept may be
very sketchy and largely based on analogues. The geological concept provides a framework
that should underlie all interpretations and all data should be tested against it. W here data
do not fit this should be explained (e.g. measurement problems) or the concept should be
changed or adjusted. This consistency check helps to reduce subsurface uncertainty. Only
where insufficient data is available for such a geological interpretation geostatistical
methods can be used in isolation , but efforts should be made to link the range of
parameters to applicable regional analogues.
Volumetric calculations require the multiplication of various intermediate products. Where
multiple interpretations are available for each product the selection of interpretations to
combine (based on the understanding of dependencies) is a critical step, as not all
combinations will be physically possible. The geological concept will help in selecting
realistic combinations. The selection of combinations may also be guided by the
requirement to test specific possible subsurface outcomes, such as one where all faults are
sealing, or with a porosity-depth trend. Combining pessimistic or optimistic interpretations
for all parameters will generally result in volumetric estimates outside the realistic volume
range. Therefore, it generally suffices to vary only a small number of key parameters, which
can be combined with „most likely‟ interpretations for the other parameters. The parameters
with largest impact on in-place volume are generally top structure and net reservoir. It
should also be noted that certain parameters (e.g. fault transmissibility, permeability) might
have no impact on in-place volume but still have a major impact on ultimate recovery.
Volumetric estimates are performed at many different stages in an asset‟s lifecycle. As new
data come in (initially appraisal data, subsequently reservoir performance data) these
estimates will change, sometimes dramatically. Over time, the range in resource estimates
will converge, as uncertainty regarding the in -place volume reduces. This can be illustrated
in a hydrocarbon maturation graph. In contrast the uncertainty where in a reservoir the
remaining recoverable volumes occur may increase, especially if no time -lapse seismic data
are available.
This document covers HIIP estimation as basis f or hydrocarbon resource estimates.
Throughout this document reference is made to low, base (or expectation) and high case
resource estimates. Proved reserves estimates are generally similar to low case
estimates but meet more stringent requirements for external reporting (see EP1100
documentation). In field development planning and well and reservoir management
reference will be made to the base case, which is a deterministic subsurface realisation
with the volume close to the expectation volume.
1
NOTE 1: For some unconventional resources a modified formula is used. It is beyond the
scope of this note to describe these variations.
NOTE 2: The formulae are written for a mapping exercise in which grids are multiplied. The
Gross Pay map defines Area and the Gross Pay values. In a reservoir modelling exercise
Gross Rock Volume would be used as input.
2
Some assets apply both net reservoir and net -pay cut-offs. W here a net pay cut-off has
been used, the in-place volumes will be lower and the recovery factor will be higher than for
estimates using only a net reservoir cut-off. Therefore, when comparing recoveries from
different fields or reservoirs or with analogues it is essential to know how the in -place
volumes have been calculated.
3
Cut-offs to discriminate moveable hydrocarbons typically exclude poorer reservoir zones
based on well-based observations regarding flow, e.g. production logging tool data. It is far
more difficult to demonstrate that further away from the wellbore such a specific poor
reservoir interval will not contribute to flow or provide pressure support, especially later in
field life. When assessing cut-offs this should be taken into account. .
4
In highly deviated wells the reservoir may be (partially) penetrated several times (e.g.
snake wells, fish hook wells). A good evaluation is required to determine which values can
be used for property modelling and/or mapping.
Often the volumetric evaluation will be an element of a larger scope, e.g. also updating the
static reservoir models as input to reservoir simulation and development planning. It is
advised to generate a “washing line” between the old and new results to visuali se the
reason(s) for change. Therefore it is important that also other factors are weighed in
choosing the method/approach and in the identification of key parameters for further
analysis.
The table underneath can be used as a generic guide. The static parameters with the
biggest impact are generally top structure and net -to-gross, followed by isochore and
contacts.
5
In a tornado plot the end points represent P90 and P10 values for individual parameters
(i.e. NOT the full uncertainty range).
6
Unless permeability is a component of the saturation -height function
7
Same as footnote 6
Pros Cons
Probabilistic + Range fully sampled - Lack of consistency (if dependencies cannot be fully incorporated in
+ Statistics based on large model)
number of samples - One-dimensional, i.e. aerial distribution/dependency of paramete rs
not captured
- Difficult to communicate assumptions/model to customer
- Results of two probabilistically determined estimates cannot be
simply added together
- Impossible to run large simulation models for full range of
uncertainties
As both methods have advantages and disadvantages, in a volumetric exercise often both
methods will be combined. The typical workflow is then:
Construct a deterministic base case map or model and perform a sensitivity analysis to
determine the key uncertainties impactin g in-place volumes (see Section 2.4). Note that
certain parameters may impact dynamic reservoir performance (and therefore ultimate
recovery) besides their direct impact on HIIP volumes (e.g. if permeability is derived
from log-based porosity estimates).
Perform a probabilistic analysis on these k ey uncertainties based on which a
cumulative density function (CDF) for the volumetric uncertainty in the reservoir or field
is constructed. Percentiles divide the y-axis into 100 equally probable increments
(horizontal slices). In an ordered sequence of simulated samples, the value of the P90
sample is larger than that of 10% of the samples and smaller than that of 90% of the
samples. The P100 and P0 represent respectively the smallest and largest value
calculated, but not necessarily the smallest & largest value possible, due to under
sampling of input ranges (from Aalbers et al., 2009: V).
Well 1
1 Line
of sec
Fault zone at
Top Structure
2
Isochore from well values Fault zone at
Base Structure
3 Well 2
Isochore corrected for fault wedges
Figure 2. Gross Pay calculation correcting for contacts of a given reservoir with a
constant thickening towards the NW.
Wedge zone
rse
c
Inters
tion
OW
ection
0.531
C
&B
0
0.466 0.5
OWC
ase
Stru
& Top S
ctur
e
0.569
tructu
0
0.6
re
0.654 Well A
0.593 0.681
N
0.70
Figure 3a. Average NTG map for a reservoir – contouring is not impacted by
hydrocarbon distribution.
Well A
Wedge zone
-
0
0.466 0.5
OWC
0.70
0.569
1.00
0.80
0.90
0
Well with GR log showing 0.6 Well A
coarsening upward 0.835
0.593 -
Figure 3b. If reservoir properties are not equally distributed vertically (as in a fining
or coarsening upward sequence, see log for well A), and there is a substantial wedge
zone, average properties should be calculated over the hydrocarbon bearing part of
the reservoir only, and contouring adjusted to avoid over- or underestimation of
volumes in the wedge zone
In the case of reservoir modelling this is generally straightforward. In the case of mapping
this issue can be addressed through first establishing trends by mapping reservoir
properties for all wells, and subsequently correcting the wedge zone contours based on
average properties for the hydrocarbon-bearing part of the reservoir only.
An alternative approach to mapping Gross Pay and Net -to-Gross is to directly grid the Net
Pay values across the hydrocarbon-bearing interval, based on average Net Pay values for
individual wells supplied by the petrophysicist. This approach is attractive in cases where
net reservoir is not distributed evenly over the reservoir interval, so that clipping o f Gross
Pay (Fig. 3) could lead to substantial over or underestimation of the net reservoir interval.
Where this method is applied it should be done in addition to the standard method (at least
a Net-to-Gross map should be produced) and subject to the same constraints as above
(honouring trends outside the wedge zone, clipping to f luid contacts, etc.). See also Section
3.1. This method is more easily quality controlled and audited, and the refore preferred by
auditors. It will depend on the local geological conditions which method is more geologically
robust and delivers the best input for volumetrics.
In mapping and in modelling special attention should be given to potential pitfalls in the use
of sums and averages. In maps reservoir averages for an entire reservoir are used, in
models the same is done by model block thickness. In specific situations the multiplication
of average values for porosity and saturation for the entire reservoir may give very different
results than the result of such multiplication by model block, and the same is true for models
with larger/thicker versus smaller/thinner blocks.
Porosity and Net-to-Gross (NTG)
Average NTG and porosity grids should be based on a specific most likely geological
interpretation supported by all the available data, where appropriate also including seismic
data, production data, etc. Lateral variations should be well understood, especially where
trends result in areas with average values that are much higher or lower than observed in
8
The Shell proprietary application Relate can be used for derivation of this function
Well data from outside the field, or from outside the licence area (in case the field extends beyond
the licence area) should be used in the analysis of geological trends and in the contouring. Special
scrutiny should be given to the validity of using such data in mapping/modeling or averaging, using
the geological concept as a guide.
If QA/QC of derived maps (e.g. net reservoir maps derived from gross isochore and NTG
map) indicates that a correction is required, this should be done to the basic maps,
rather than the derived maps.
Note: Following data inventory and analysis, during the framing the application of the
above constraints for each reservoir should be reviewed and agreed between the
team’s production geologist, petrophysicist, reservoir engineer, Team Leader, and PG
Discipline Lead, and where needed (in some case of Proved reserves estimates)
endorsed by the RRVM, before embarking on gridding/mapping and volumetrics.
Miscellaneous
small changes
Low
Figure 6. Example of a schematic chart to illu strate key differences between base
case, low and high volumes
Similarly, a good calibration of in-place volumes calculated is by comparison to material
balance results or decline curve analysis based volumetric estimates.
‟‟W ashing line‟‟ or „‟waterfall‟‟ c harts can be used to show the differences between
volumetric reports at different times (e.g. last year‟s and this year‟s bookings) and
explaining the reasons (i.e. what has changed and why). In these charts precision in the
640 Rw changes
Proved Reserves (MMbbls)
620
Bo changes
600
Well 1
Results Well 2
580
Results
560
End Year 1
End Year 2
540
520
500
numbers is required in order to produce an auditable record (see Fig. 7).
Appropriate hard copy and scaled cross sections and correlation panels to further
demonstrate the relationship between wells, observed fluid contacts and reservoir
trends.
4. EXAMPLES OF PITFALLS
Structure Maps
- Too optimistic/unrealistic or even three dimensionally impossible
- Mechanically correct but geologically wrong
- Not based on sound data
- Fault interpretation/integration inco nsistent
- Uncertainty in the depth of the flank of the structure not reflected in the Top Reservoir
Structure map (to create high confidence interpretation)
- Inconsistency between top/base reservoir structure and tops and bases used to
calculate averages for reservoir properties.
Isochore/Net Pay Maps
- Use of isopach thickness instead of isochore thickness in existing penetrations.
5. REFERENCES
Aalbers et al., 2009. Handling uncertainty in EP (G uidelines). EP 2009-5212.
Abernathy, R., et al., 2009. Handbook for Integrated Reservoir Modelling of Clastic
Reservoirs. SIEP Inc Report EP2009-3407.
Hulshof, B., 2009. PG Guidelines f or Publication and Archival of Subsurface Maps. SIEP
BV Report EP 2009-5366.
Mapping Standards
Petrophysical Standards & Guidelines
Society of Petroleum Engineers (SPE), 2001. Guidelines for the Evaluation of Petroleum
Reserves and Resources. A Supplement to the SPE/WPC Petroleum Reserves
Definitions and the SPE/ W PC/ AAPG Petroleum Resources Defin itions.
http://www.spe.org/web/store/index.shtml
Swinkels, W., 2009. Probabilistic and Deterministic Reserves Assessment. SIEP BV
Report 2009-5204.
6. ABBREVIATIONS
AoO: Area of Operation (also called Operational Unit or OU)
ARPR: Annual Review of Petroleum Resources
Bgi: Gas formation volume factor
Boi: Oil formation volume factor
GIIP: Gas Initially in Place
GRV: Gross Rock Volume
DISTRIBUTION LIST