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NORGES TEKNISK-NATURVITENSKAPELIGE UNIVERSITET
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Reservoir management and production optimization

Key components: Integrated drilling simulator with virtual well bore and visualization; Real time automated interpretation, diagnostics and decision support; Utilization of increased bandwidth from borehole; New work processes, trainingsimulator and experience transfer.


2.1

Reservoir management

Results 2007

Norne field study :

  • Startup and definition of project
  • Prototype of a new reservoir simulator developed and tested
  • New history-matching method tested on the Norne field
  • Workshop.

Hiring and startup of 9 postdoc researchers and PhD candidates. This includes people from the petroleum engineering, systems and control, and work process domain.

Submitted scientific papers (~5), talks/presentations in scientific meetings and Master theses (~3)

Objectives/deliverables - Program 2.1

Embed model-based decision making methods/tools into new work processes for reservoir management. Try to challenge the existing mind-set. This includes improved methods for history matching and closed-loop reservoir management.

Specific for Case study 1 - Norne field

1. Develop methods for updating the reservoir model for a field at Halten Nordland using 4D seismic and production data.

2. Develop prototype simulator for use in closed-loop reservoir management

3. Identify the key challenges regarding interpretation of these new tools into the work process as a whole.

Application of results

  • Testing of new prototype and methods on case studies. Case study no.1 is the Norne field
  • Perform comparative studies of available and new metods using benchmark examples
  • Dissemination of results through interaction with partners. We start with Norne Petek.
  • Dissemination of results through academic channels - publications in scientific journals, at scientific conferences and IO center workshops

Technology/methods

Challenge the industry with new, much faster, and all together different simulator technology

  • Mimetic finite-difference discretization (MPFA/mixed FEM type method)
  • Multiscale flow simulation (multiscale mixed FEM, non-uniform coarsening)
  • Fast transport simulation by reordering of unknowns
  • Generalized travel-time inversion (streamline-based history matching)

Tuning or history-matching (or data assimilation)

  • Many approaches: optimization based, Kalman-filter type methods, deterministic or stochastic formulations
  • Faster simulation technology allows us to use improve tuning. One example is the use of more accurate uncertainty models. We want to study alternative history matching/data assimilation methods and perform comparative studies of alternative approaches.
  • We will work with data assimilation from different data sources (production data, 4D seismic data)

Closed-loop decision making

  • Faster simulation technology allows us to use a receeding-horizon optimization approach as a means to approach closed-loop reservoir management. This approach has been a game changer in the process industries

Designing work processes and tools so as to make the use of model-based decision technology a natural part of the work flow is challenging. We will have a continued activity on this as an inherent part of the pilot studies.

Potential effect for improved field operation

  • Increased value of an asset by increased recovery
  • Faster and more reliable reservoir simulations result in better production scheduling and improved oil recovery
  • Improved understanding of human interpretation of the reservoir may lead to more optimal reservoir management

Today’s technology frontier/technology gaps

Today’s technology hinders the use of model-based decision making in new work processes for reservoir management.

Reasons for this are:

  • Direct simulation on geocellular models generally not possible
  • Optimization workflows seldom utilize flow simulation
  • Lack of robust methods to help automate integration of available data

Further, there does not exist an established set of methods or commercial available software for fast updating of reservoir models based on available data as 4D seismic and production data. The same goes for closed-loop management. There is also a lack of understanding of how tools should be embedded into work processes for reservoir management.

The research challenges are huge. Hence, it is important to interact with relevant research environments in Norway and abroad. We have established close contact with research activities at Statoil, Hydro, and IRIS, and with research centers at TU Delft and Stanford university.

Activities,Deliverables, and Time

Activities

Deliverables

Time

1. Develop simulator technology for the Norne field based on new technology

Case study results Norne

2007 and 2008

2. History-matching, testing of methods at Norne both using new simulator technology and an Eclipse model

Workshop Norne field

2007 and 2008

3. Comparative study of methods for history matching

Prototype algorithms and methods

2009-2011

4. Closed loop reservoir management at Norne - preliminary study

Scientific publications (there will be many - including level 2 publications)

Master theses

Talks, invited talks, etc.

2007-2011

5. Study work processes at Norne as a basis for specifying model-based decision tools

Startup of new field study

2008

6. Define research tasks for 4 PhD candidates

4 PhD theses

2011

7. Identify new case study

Relations to other sub projects

Program 1. Updating geo-models from drilling data

Program 2. Subproject 2.2. Production optimization a decentralised approach

Program 3. Generic framework for predictive maintenance control

Program 4. Work processes and visualization

Resources

Sub project manager: Jørg Aarnes, SINTEF Applied Mathematics

Project team:

Professors (Jon Kleppe, Martin Landrø, Knut Andreas Lie (University of Oslo), Bjarne Foss) and 9 postdoc researchers and PhD candidates from:

  • Petroleum engineering
  • Applied mathematics
  • Systems and control
  • Work processes

Industrial participation:

  • Statoil Halten Nordland
  • Statoil Research Center

Deliverables 2007:
These reports and other deliverables will available on the sub-project page (2.1), upon completion.

  • Field description (report)
  • History-matching, field testing of method (report)
  • Closed loop reservoir management field testing (report)

2.2

Production optimization

Results 2007

Troll oil field study. Development of a new optimization approach and initial results.

FMC study. Alternative formulations of proxy models for wells.

Startup of Shell production optimization study (in cooperation with Program 4)

Hiring and startup of 5 postdoc researchers and PhD candidates. This includes people from the petroleum engineering, and systems and control domain.

Submitted scientific papers (~2), talks/invited presentations at scientific meetings and Master theses (~3)

Objectives/deliverables - Program 2.2
Propose, develop, analyze and assess a new methodology for model-based production optimization on a tactical planning horizon (hours to weeks).

Propose, develop, analyze and assess methodology for production chain optimization. This includes merging new tools for system integration and applying ideas from supply chain management; ultimately covering the production chain from source to market.

Efficient development of proxy models targeted for production optimization

Application of results

  • Testing of methods on case studies. Case study no.1 is the Troll field
  • Perform comparative studies of available and modified/new metods using benchmark examples
  • Dissemination of results through interaction with partners - workshops
  • Dissemination of results through academic channels - publications in scientific journals/conferences and at IO center workshops

Technology/methods

The foundation for this research rests on the following three parts:

  • Optimization based on Lagrangian decomposition, dynamic piece linearization.
  • Model reduction techiques for developing targeted proxy models
  • Methods and tools for system integration

Further, model-based optimization methods and technology from the process industries will be studied as a basis for our work.

Potential value for improved field operation

  • Improved utilization of production facilities on a tactical planning horizon.
  • Faster and more reliable computations.
  • More transparent technology through new system integration tools. This helps to embed the technology into the work flow and build trust in the technology.

Today’s technology frontier/technology gaps

Technology for tactical planning needs to take into account all relevant constraints and couplings in the production systems. Current technology solves relatively large nonlinear optimization problems. This induces high computational loads and convergence problems are often encountered. These challenges increase when model complexity increases, for instances when using nonlinear well models instead of linear well models.

Computational IO (system integration) with model-based optimization is an exciting, new, and challenging approach to integrated operations. The approach is not currently used by the industry on a full scale, for many obvious reasons, but the industry has given a clear indication that this is an ultimate goal within IO. The concept is to (electronically) pipe together operations from far upstream to far downstream, including reservoir, production, flow assurance, processing, market, and full-scale economics. Local (operation) and global optimization is a pre-requisite.

There are major research challenges within production optimization. Hence, it is important to interact with relevant research in Norway and abroad. We have established close contact with the Center for Advanced Decision Making at Carnegie Mellon University, and also other groups with long-standing experience in model-based process control and optimization, and supply chain management.

Activities,Deliverables, and Time

Activities

Deliverables

Time

1. Further develop and study optimization method based on a decentralized approach

Case study results Troll on production optimization

2007 and 2008

2. Develop methods for model reduction for proxy models

Network modeling using new system integration tool

2007 and 2008

3. System integration - network modeling

Prototype algorithms and methods - discussion with commercial actors

2009-2011

4. Study work processes at Troll and Norne as a basis for specifying production optimizations tools

Scientific publications (there will be many - including level 2 publications)

Master theses

Talks, invited talks, etc.

2007-2011

5. Define research tasks for 4 PhD candidates

4 PhD theses

2011

Relations to other sub projects

Program 2. Subproject 2.1 - Reservoir management

Program 3. Generic framework for predictive maintenance control

Program 4. Work processes and visualization

Resources

Sub project manager: Professor Bjarne Foss - NTNU (for the time being)

Project team:

Professors (Curtis Whitson, Erik Ydstie (CMU)) and 5 postdoc researchers and PhD candidates from:

  • Petroleum engineering
  • Systems and control
  • Work processes

Industrial participation:

  • Hydro Troll Oil and Hydro Research
  • FMC
  • Shell Draugen

Deliverables:

  • A new method for production optimization analyzed and implemented for pilot testing.
  • Software code - suitable for research purposes
  • Comparative study with state-of-the-art technology (e.g. GAP software from Petroleum Experts and MaxPro from FMC) on at least one field example
  • 2 PhD theses, 2 MSc theses and 6 scientific publications

Application of results
The method shall be applied for tactical planning from hours to weeks. The 1st testing will be on a part of Hydro¡¦s Troll oil field. Based on the above results, the methodology will be promoted towards other partners.

During 2007 the activity will consider the production chain from the near well region of a reservoir to the 1st stage inlet separator. Downstream extension, ie. including the process equipment typically found on an offshore platform is planned for 2008 and beyond in co-operation with Program 3 Operations and maintenance

Potential effect for improved field operation

  1. Improved utilization of production facilities on a tactical planning horizon.
  2. Faster and more reliable computations.
  3. More transparent technology because of a decentralized nature and, hence, probably easier integration into the work flow and build trust in the technology.

Deliverables 2007:
These reports and other deliverables will be on the sub-project page (2.2) , upon completion.

  • M.Sc. theses, scientific publication
  • Scientific publication
  • Meetings, assessment report
  • PhD theses project, scientific publications
  • Reports, scientific publications

2.3

Course: Control & monitoring of oil & gas processes, New pilot studies

Objectives / Deliverables - Program 2.3

  • Supply a course on control, monitoring and supervision with two simulator-based exercises based on oil and gas systems; one being an offshore process and the other a downstream gas/condensate plant.
  • Provide 4th year students with hands-on experience and realistic problems related to control, monitoring and supervision of oil and gas processing.

Application of results
To be applied in a new, regular course “Advanced control in industrial processes” for 4th year students (7.5 study points). The course will be offered during the Spring semester of 2008 and thereafter every Spring semester. Responible teacher: Professor Morten Hovd, Department of Engineering Cybernetics, NTNU.

  • Estimated number of students: 50
  • The course is applicable to students from several disciplines.

Potential effect for improved field operation
Improved quality in education

Deliverables 2007:
Additional information will be published on the sub-project page (2.3), as it becomes available.

  • Two simulators adapted for course use
  • Simulator integrated into a new, regular course at NTNU

New Pilots studies (2.4)

Objectives / Deliverables - Program 2.4

Expanding activity 3.1 and 3.2 to new test cases in other partner companies than those mentioned above, in order to develop further and generalize the methods for reservoir management and production optimization.

Application of results

Production planning and optimization

Potential effect for improved field operation

IOR and accelerated production rate

Deliverables 2007:

These reports and other deliverables will be made available on the sub-project page (2.4), upon completion.

  • Field testing reports
  • Seminars for consortium participants, exchanging experience from case projects in different companies

NTNU, 7491 Trondheim, tlf. 73 59 50 00. Kontakt oss
Ansvarlig redaktør: Informasjonssjef Christian Fossen