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INTEGRATED RESERVOIR STUDY METHODOLOGY

This summary presents an example of the technical content and methodology which are
regularly applied to integrated reservoir studies. Although all parts of this description are
unlikely to be applied in all cases, the text also closely reflects "best practice" that might be
applied as part of an evaluation of a producing or mature resource by an international oil and
gas company.
Introduction To Integrated Reservoir Study Methodology
The broad objective of the example study is the determination of economically viable
options for the redevelopment of a mature oil or gas resource and the promotion of that
resource to international oil or gas companies. An overview of the methodology is shown
below.

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The example methodology is based on the following main stages:


1. Subsurface Review and Reserves Evaluation: The available geological, reservoir,
and petrophysical data will be analyzed and evaluated to prepare a reserves estimation
for the resource. The same data will also be used with available production data to
establish the main productive units within the field or resource. Numerical simulation
models might be part of this review if there is sufficient data of an adequate quality.
2. Production Forecasts and Development Plans: Predictions of future production will
be made where appropriate using reservoir simulation or material balance methods.
An optimized development plan will be prepared for the field which is designed to
deplete the economically recoverable reserves, including those that do not appear to be
drained by existing wells, as efficiently as possible.
3. Refurbishment Plans: Where appropriate, a determination will be made as to which
of the existing wells and infrastructure can be used in the optimized development plan.
Work plans will be developed for the reuse of existing wells, drilling of new wells,
remediation of the existing infrastructure, abandonment of surplus infrastructure, and
an upgrade of the existing process facilities.
4. Health, Safety and Environmental Assessment: An assessment of potential health,
safety, and environmental factors relevant to each plan will be made. A plan to ensure
environmentally acceptable operations will be developed.
5. Capital, Operating Costs and Development Schedules: A sequenced work schedule
and flow diagram will be developed for any work associated with field production
enhancement. In addition, a field project budget, production forecast, and project cash
flow study may be developed.
6. Economics and Production Sharing: Where more than one option exists a
comparative evaluation of the options will be made in order to establish a ranking in
order of likely economic performance. Where appropriate, plans for foreign financial
participation will be developed including the potential for production sharing. In
addition, fields at the lower levels of economic performance will be critically reviewed
to establish if abandonment of part of their facilities can produce a significant
improvement in economic performance, thereby increasing their attractiveness for
participation.
7. Promotional Material: For resources that require external participation, plans will be
developed to show enhanced future production under the improved engineering and
production conditions. Promotional material will be developed to solicit international
interest in the projects. Work carried out will include a review of previous efforts to
obtain external participation, development of candidate lists for participation, and
development of a presentation program for potential external participants.
Engineering Analysis
An engineering review will be implemented for the field or resource. The initial stage of this
analysis will be a subsurface review, comprising geological and reservoir engineering
analysis to establish and classify existing or remaining reserves, and to establish potential
future production.
The facilities required to achieve this production, along with the potential to use existing
facilities will be evaluated. The subsurface requirements in terms of new wells and recompletions will be established, as will the requirements for surface engineering including
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new infrastructure and refurbishment of existing infrastructure and equipment. To ensure the
scope associated with any redevelopment plan is fully captured, plans for abandonment of
redundant wells and infrastructure will also be developed. Environmental assessments of the
redevelopment plans and current operational practice will be implemented. These will ensure
that environmental impact is kept to an economic minimum. Costs and schedules for
redevelopment will then be produced based on the subsurface and surface engineering
reviews.
The three main elements of the engineering analysis are:

Sub-surface review and reserves evaluation


Production forecasts and development plans
Refurbishment plans

Economic Analysis
The economic analysis of a proposal to develop or redevelop an oil or gas resource will be
based on the approach illustrated schematically below.

Methodology for Economic Analysis


Importantly, the economics review will not be the final stage in the process. Its results will
be fed back to the engineering teams in order to refine development plans further to seek a
significant improvement in economic performance.
This feedback process will produce the optimum economic production plan for each field.
Input Data
Capital and operating expenditure will be derived from detailed technical and engineering

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using applicable contracting strategies and looking at the opportunities for local equipment
supply. Similarly, operating costs will reflect the potential for the use of local expertise but
will also recognize the trend for labor costs to move towards international levels.
Production profiles and data from the reservoir modeling and analysis will be used as the
basis for determining revenues to the project. An assessment of the range of likely oil and
gas prices over the project period will be made from reviewing published forecasts. When
determining the economics of individual projects a range of price scenarios will be used.
Export Options And Net Back Pricing Analysis
The export of oil and gas to world markets is critical in generating hard currency earnings
(both for the project investors and any financing required). Consequently the options for
exporting products need to be considered in detail. Where applicable, the feasibility and cost
of using various export routes will be considered.
The revenue per unit of petroleum product at the field will not be the same as world market
prices because of a combination of transport costs to get the products to market and
variations in quality against standard markers. The net-backed value of the petroleum
products, at the field, will be calculated using the following data:

Price of marker product at the transaction date


New product discount for example, new crudes usually trade at a discount in
the first few years of sales as refiners learn about the quality of the blend and
variations in quality between shipments
Cost of insurance and shipment from the exit port to the marker crude point of
shipment
Quality differential
Trans-shipment charges
Storage charges
Pipeline or railway transportation charges
Losses
Duties, taxes, and commissions

The net back analysis will also recognize the change in field revenue as production from the
fields increases and alternative transportation options become available. For example,
because of low initial production volumes a field may initially have to transport crude by
road/rail, here the net back revenue to the field will be low. However, as production
increases and pipeline infrastructure becomes available, the products can be transported by
pipeline, which is likely to be cheaper than road or rail; hence the net back revenue to the
field will increase.
In addition to looking at export markets, the options for selling products locally will also be
considered.
As the net back product price is the key revenue driver for any given project it will be one of
the key variables in any subsequent sensitivity analysis. For each project option, the break
even product price will be calculated.

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Economic Modeling
The net back revenues from oil and gas sales and the phased capital and operating
expenditures will be used to build an economic model for each project development plan.
Discount rates which reflect the technical and economic risks of the project will be used to
calculate Net Present Values (NPVs) and Internal Rates of Return (IRR). Appropriate hurdle
rates will also be determined for the screening of field development options.
Costs will be modeled at a sufficient level of detail to allow meaningful development
scenarios to be evaluated. Where appropriate, capital costs will be identified by process
component or major equipment item to allow the economics of local and international
procurement to be investigated. Similarly, operating costs will be split by major operation,
i.e. transportation, tariffs, logistics, consumables, etc.
Optimization Of Development Plans
If the initial field economics, compared with suitable hurdle rates, indicate low or
unacceptable pretax rates of return, the development concept will be reassessed to see if an
optimal technical configuration can be obtained. The revised development concept will then
be reanalyzed and the economic indicators recalculated. This is an iterative process and will
require the technical and economic teams to work closely together. All development
scenarios and concepts will be documented such that the learning process can be captured
and recorded and the decision-making process highlighted in detail.
Vulnerability Analysis
In order to confirm the viability of a field redevelopment plan, and its attractiveness to
potential investors, it is necessary to demonstrate the robustness of the project economics
under differing scenarios that reflect the main areas or risk to the project. Potential areas of
vulnerability are:

Reservoir performance
World oil and gas prices
Capital expenditures
Operating costs
Export markets
Transportation costs
Political factors

The economics of the project will be assessed using risked production profiles (i.e. P10, P50
and P90 values) and using a range of oil and gas price scenarios. The vulnerability of
individual field developments to export market availability and transportation costs will be
determined by reviewing all of the potential market options and considering the impact of
other field developments and the potential impact they could have on factors such as pipeline
availability, etc. From this analysis, a range of probable values will be determined and used
to calculate expected monetary values for each scenario. The variability of capital and
operating costs will be considered through the use of contingencies in the cost estimates. A
uni-variate approach will be used to determine the robustness of the project economics to
each of the above variables. To determine the key economic drivers and hence the main areas
of project vulnerability, each variable will be considered in turn while all other factors are

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held at the same value. The results from the vulnerability analysis will be compiled in tabular
and graphical format with the key drivers suitably highlighted.
Fiscal Modeling
As part of the economic assessment, the fiscal framework for each development will be
reviewed. Post-tax returns to investors and the government tax take will be determined along
with post-tax returns to government and investor. The ability to revise and remodel the main
parameters of a production sharing agreement (PSA) is also built into the software used. This
will enable a number of tax models to be reviewed to determine the optimum fiscal regime
that satisfies both investors and the relevant government.
Sub-Surface Data Review And Reserves Evaluation
The reserves evaluation will be performed as part of an integrated sub-surface data review.
Depending on the requirements of the project and data availability, the data review may
include the following:

Seismic data
o Time maps
o Depth mapping
Geological and geophysical data
o Stratigraphic breakdown
o Porosity analysis
o Permeability prediction
o Saturation distribution
o Porosity/permeability relationships
o Well log data
Reservoir data
o Production data
o Productive unit delineation
o Reservoir fluids
o Conventional and special core analysis data
o Well test analysis
o Decline curve analysis
o Material balance analysis
o Reservoir simulation models
Subsidiary issues
o Biostratigraphy, sedimentology, and geochemistry

Seismic Data
Seismic data can make a significant contribution to the up-to-date, history-matched, multilayered simulation model for the reservoir. A reliable structural representation of the
reservoir sequences is an essential prerequisite to the building of a reservoir model.
Time Maps
Review of the seismic time maps would take the form of an audit to confirm that contours on
the maps equate to correlatable seismic events on the profiles, and that these seismic events

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correlate consistently to the major litho stratigraphic boundaries with which they are
identified (as determined by the vertical seismic profile (VSP) and log data).
It is recognized that the methods used in data acquisition may preclude a detailed reworking
of the seismic data. Procedures to achieve a full audit in the presence of good data are:

Re-calibration of logs: A first step would be to examine the VSP data


and sonic logs, digitize or edit as appropriate, and re-calibrate the sonic
logs to produce new velocity logs, taking due account of elevation data,
static corrections, etc. to achieve a match with the seismic data. The
velocity logs would then be used to generate synthetic seismograms using
wavelet frequencies appropriate to the seismic data. If seismic trace data
is available in SEG-Y format at well locations, relevant traces close to the
wellbore can be included in the display panel to facilitate correlation.
Time maps re-profiled: The next stage would be to capture the time
maps in digital form for further study (if time grids are already available
this stage is unnecessary). Given a file of shot point locations in digital
form, the time grids can be re-profiled along the seismic lines to produce
overlays at section scale which should align with the seismic events on
the original sections. Alternatively, the events can be loaded directly to a
workstation for edit/review if the seismic trace data can also be loaded.

Depth Mapping
The starting point for a review of depth mapping would be a study of the geophysical report
which would accompany such mapping to establish the basis of the technique employed. The
team would aim to work closely with local geologists/geophysicists in the velocity studies to
benefit from their experience of local conditions and problems.
The review would be made on the basis of:
1. Suitability of the overburden seismic mapped events for delineating
velocity units
2. Basis for prediction of velocity away from well control
3. How well the velocity model fits the time/depth curves from the wells
This review should include independent analysis of velocity control.
Recommendations would be made on the basis of time and depth reviews. On the basis of
these reviews, recommendations would be made as to the appropriate course to take to
achieve acceptable structural control for the remainder of the study. These recommendations
could include re-picking/mapping of selected seismic horizons, reevaluating the velocity
model and re-mapping in depth, or opting for a full review of basic seismic and well data.
The recommendations would be included in the project report to outline potential future
programs to obtain improved seismic data.

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Geological And Geophysical Data


Stratigraphic Breakdown
A database of observed and quantified core, ditch cuttings and log-derived data would be
generated provided these data are available. The database would include lithofacies, thin
section modal analysis data, diagenetic style, porosity/permeability data, porosity and pore
throat types, mercury injection data, and log responses. This database would be used to
define a number of characteristic rock types consistently observed through the studied
sequences. Rock type definitions would include cross plots and statistical analyses. The
purpose of defining the rock types is to attempt to identify particular reservoir characteristics
associated with key surfaces on a regional scale.
Reservoir layering will be achieved by inputting the rock type classification into the
sequence Stratigraphic framework. Each layer would then be characterized in terms of
thickness, rock type, porosity/permeability, water saturation (Sw), and shale volume (Vshale).
If the data quality is only sufficient to support a lithofacies correlation based on electric
wireline log interpretation and mud logs, the database would be populated with this subset of
information as input to the reservoir modeling
Porosity Analysis
The existing petrophysical analyses would be studied for use in the reserves and reservoir
study phases. If suitable for further use, the current interpretations would be carried through
with appropriate quality checks. If the data require reinterpretation, cored wells would be
used to develop a robust field-wide petrophysical model of apparent log responses to analyze
the logs for porosity, lithology, and fluid content. If necessary, alternative models for wells
where hole conditions are poor may be developed. Computer processed interpretations
already run will be used as reference for the components to be put into the model.
In low porosity zones, or zones with significant secondary porosity, the Archie equation
parameters 'a', 'm' and 'n' are likely to vary. Correlations between core derived parameters
and logs would be used to establish predictive relationships to model these parameters in
uncored wells. The precise method would be decided after studying the core and log data.
The model developed from the cored wells would be used to analyze the logs of the
remaining uncored well and uncored intervals. Following application of the petrophysical
model, a check would be made to determine if the resulting distributions of porosity and
lithology are in agreement with the geologist's interpretation of the sedimentary processes.
Permeability Prediction
Accurate permeability prediction is very important and is a prerequisite for computing
meaningful averages (such as permeability thickness). All available permeability information
would be integrated and weighted for importance. If the data permits, transformations would
be derived for derivation of permeability from uncored and untested formations. The
geological model developed for the field would be used as a guide for areal mapping of the
permeability.
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Saturation Distribution
Net/Gross cut-offs will be determined using a combination of computer processed
interpretation (CPI) log data, conventional and special core analysis (SCAL) data, and facies
analysis. Petrophysical sums and averages will be determined over net pay.
Before carrying out any work with capillary pressure, or indeed SCAL data, it would be
necessary to establish if the SCAL data set is representative of the logged intervals. It is
sometimes found that SCAL data sets are biased towards better or worse quality rock than
the reservoir as a whole. Appropriate data would be identified and used in the reservoir
evaluation.
Porosity/Permeability Relationships
Conventional core analysis results are the basis for predictions of permeability from porosity.
However, secondary porosity lowers the permeability associated with a given total porosity
so, given a sufficiently large data set, it should be possible to develop predictive tools to
yield a quantitative or semi-quantitative secondary porosity index.
To this end, a review of all available geological core descriptions, petrographic data, and
petrological interpretations would be undertaken and a standard lithofacies scheme
confirmed or established. Through cross plotting and statistical analysis of the lithofacies
codes, petrographic data, and core analysis data the primary facies, diagenetic, and fracture
controls on reservoir quality will be defined and the porosity/permeability relationships
established for the reservoir.
Core analysis results would be carefully related to lithofacies in order that a predictive model
may be established for use in peripheral parts of the field, where well control is not available.
Well Log Data
Available well log data would be used to establish a log database that can be used for
petrophysical analysis, geological interpretation, and synthetics generation. Data preparation
would involve:

Log Quality Control (LQC): This may be required at more than one
stage in an evaluation since some anomalous responses may only come to
light after log interpretation or geological correlation. The existing
interpretations would be reviewed for consistency and accuracy of
interpretation, with particular emphasis on generation of control data for
the volumetrics calculations and the simulation inputs.
Review of Core Analysis Reports: This will establish the consistency of
laboratory preparation technique and relationships between porosity,
permeability and grain density.
General
Review: Analysis
of
stratigraphic,
biostratigraphic,
sedimentological, and depositional environment studies.

The latter two components will largely involve integrating the existing data and
interpretations to ensure consistency.
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Reservoir Data
Production Data
Where appropriate, available oil, water, and gas production data, on a well and reservoir
zone basis, will be compiled into a database. Other time-dependent data, for example,
recorded oil and gas gravities, water salinity, tubing head pressures etc. will also be
incorporated into the database.
The available data will be evaluated and assessed for suitability for use in reservoir
simulation models, and where appropriate, classical material balance. The use of a database
such as Microsoft Access will enable the efficient filtering and processing of data from
individual reservoir zones in addition to the per well analysis envisaged.
Trends in well performance will be sought to identify key "swing" producers in a field for
targeting of possible remedial work in the outline development plan.
Productive Unit Delineation
The data from all sources: geophysical, geological, petrophysical, reservoir, and production
disciplines will be integrated to define the main productive units in a field. A productive unit
is defined as a discrete carbonate or sand unit which is in pressure communication
throughout its areal extent. These will form the basis for the construction of classical
reservoir engineering models of the reservoirs and fields. Data will be history matched on a
productive unit basis in the models.
Reservoir Fluids
Available reservoir fluid property analyses will be studied to generate input data for material
balance, petrophysics, or reservoir simulation. Areal or vertical variations in oil composition
and/or properties will be investigated. Historical data from producing wells will be reviewed
to derive variations in well stream properties with time. Future production problems
associated with fluid compositions would be highlighted. Suitable software packages would
be utilized in this evaluation.
The suitability of temperature information for integration to yield reservoir temperature
profiles for simulator input would be assessed.
Weatherford's staff have considerable expertise in the collection, analysis and interpretation
of PVT data, and in the modeling of such data for simulation.
Special Core Analysis Data
Available core data will be screened for use in the study. If possible, appropriate measured
rock compressibility will be chosen for input to the material balance and possible reservoir
simulation models. Core data and log data will be reconciled where possible by choosing
wells with the most comprehensive suite of data for the validation. Parameters available from
both core and electric wireline logs will be compared to achieve a consistency of
interpretation within the limitations of the available data.
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If SCAL data are available, these will be screened for validity. Spreadsheet evaluation of the
data will be the major tool for the critical review; consistent interpretation of the data will be
ensured with other sources of information, for example, electric wireline log interpretation.
Much of the SCAL data which are acquired even using reputable core analysis contractors is
in many cases suspect and of limited use due to poor understanding of the influences on the
results or poor experimental procedures. Sensitivities may therefore be required to assess the
influence of relative permeability curve shapes, capillary pressure curves, endpoint
saturations, etc. to test the robustness of future development plans to the data uncertainty.
If capillary pressure data are available, these will be evaluated to derive Sw as a function of
height above free water level (FWL). These data would be required for volumetric studies
and for use in reservoir simulation studies where appropriate. Transition zone lengths will be
determined from the capillary pressure curves and the information used to aid the evaluation
of the reservoir.
If relative permeability data are available, these will be assessed for validity of measurement
technique and appropriateness for the reservoir conditions. If a representative set of relative
permeability can be derived, fractional flow plots will be constructed.
Well Test Analysis
If there are well tests available with bottom hole pressure information, these will be reviewed
to ensure consistent and appropriate analysis has been performed on the data to yield sound
conclusions. If necessary and feasible, a subset of these could be reanalyzed if problems
were identified in the review phase. The review/reanalysis would use the industry
standard PanSystem software well test analysis package developed by Weatherford and
would be targeted on those wells having the most complete data set for review. An
interpretation consistent with the geological understanding of the depositional environment
and the petrophysical analysis of the available logs would be achieved if possible, and the
calculated permeability compared to the core analysis results if appropriate. If sufficiently
robust analysis is possible with the available data, conclusions regarding the presence of
reservoir barriers and baffles will be drawn: e.g. distances to nearby faults, channel presence,
interlayer communication, etc. However, the quality of pressure gauge data is crucial to an
accurate analysis and if only mechanical pressure gauge data are available (e.g. Amerada
charts) then the results obtained from these analyses may be qualitative rather than
quantitative. As the leading well test analysis consultancy company in the world, with
industry experts in the analysis of tests, Weatherford will ensure that the maximum value
will be extracted from any test data available.
Decline Curve Analysis
Available well production data will be analyzed by the methods of decline curve analysis
(DCA). DCA provides a methodology for predicting the future performance of a well by
analysis of past behavior and extrapolation of producing trends. The data will be reviewed
and screened to derive the most appropriate DCA method to use. i.e. which variables can be
used to predict most accurately future behavior, e.g. water cut versus cumulative oil
production, and which equation best describes the observed decline. The analysis will be
performed either using a spreadsheet (Microsoft Excel) analysis or using a software package
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such as Schlumberger GeoQuest's Production Analyst. (note that this is an alternative to


forward prediction with a numerical reservoir simulator and often is not needed for good
quality data sets)
Material Balance
The classical reservoir engineering tool of material balance will be used where appropriate to
analyze the reservoirs to yield appropriate values of the connected hydrocarbon volumes.
Material balance relates the volumetric changes within the reservoir under the pressure
reduction due to production, to the observed surface volumes. The more accurately the basic
data (fluid and rock properties) are known, the more accurate will be the results obtained
from the material balance calculation. Uncertainties in system compressibilities, or in the
behavior of the fluids under the pressure reduction will translate directly into uncertainties in
the implied volumes from the material balance. Production allocation will be required to
assign the fluid withdrawals correctly to the various reservoirs to allow the material balance
predictions to be accurate. Reservoir drive indicators will be calculated from the material
balance equations and the main sources of reservoir energy identified. Values for the in-place
volumes calculated from material balance will be compared to the volumetric estimates
obtained from the geological and petrophysical maps. Gross discrepancies identified by these
comparisons will be addressed to ensure that a consistent reservoir model is obtained prior to
further study.
Reservoir Simulation
Reservoir simulation is a significant skills area in Weatherford. Many Weatherford
engineering staff members have performed black oil and compositional simulation on
homogeneous reservoirs. Local knowledge is also important and several Weatherford's staff
have performed simulation studies of fields in a wide range of major oil provinces.
Simulation can be performed with the simulator preferred by the client, although most
studies by Weatherford's staff have been performed using ECLIPSETM and the company has
licensed this software for its use.
Weatherford can take existing reservoir simulation models and update the history match, or
develop a new model. Extensive experience in the use of such applications mean that this
process can be performed efficiently and reliable results generated in minimal time.
Accurate use of numerical reservoir simulation relies on sound basic data. Errors and
uncertainties in the volumes of fluids produced, the basic rock and fluid properties, and the
pressures measured in the reservoir unit under consideration translate into uncertainties in the
connected volumes and drive strength indicators. Careful assessment of the quality of the
input data will be performed prior to undertaking detailed numerical reservoir simulation to
ensure that sufficient accuracy can be achieved during the matching phase. The methods and
equipment used to measure the data will be examined and, where necessary,
recommendations made to increase the data quality to assist future development of the field.
Subsidiary Issues
During the development of the reservoir models it is possible that biostratigraph and
geochemistry issues may arise and may be usefully investigated. The actual extent of the
work to be carried out will depend on the quality of data available.
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Production Forecasts And Development Plans


Production Forecasts
Production forecasts will be made based on the results of numerical reservoir simulation or
material balance studies. The individual productive unit forecasts will be integrated into a
field wide development and exploitation plan for each field.
Optimized Production Plan
An optimized production plan will be developed for each field or resource. The development
plan will be designed to deplete the economically recoverable reserves, including those
which do not appear to be drained by existing wells, as efficiently as possible. Areas of the
productive units which do not appear to be drained by existing wells will be identified, and
locations of additional wells to recover these reserves will be proposed.
An assessment of the opportunities to increase the proven reserves of each field will be made
by indicating the additional areas of probable and possible reserves which are likely to be
present around the margins of the field, in deeper reservoirs, and on separate adjacent
structures. A drilling program to explore for or delineate these additional non-proven
reserves will be designed.
Utilization Of Existing Wells And Production Infrastructure
The purpose of this stage of the work will be to determine which of the existing wells and
infrastructure are most efficiently used in the development of each field. Where appropriate,
proposals for new wells and facilities, and proposals for wells and facilities to be abandoned
will be made. Work plans will be developed for each type of activity required to implement
each part of the field's redevelopment plan.
Drilling Of Additional Wells
A work plan will be developed for the drilling of new production and injection wells in
addition to delineation and exploration wells. A drilling and completion program for each
well will be developed utilizing the appropriate modern technology.
Refurbishment Plans
Reuse Of Existing Wells
The optimized production plan will include a recommendation for the use of existing wells,
and, where appropriate, will recommend a workover plan for wells where this is indicated as
beneficial by economic analysis. Where possible, multiple completions which allow separate
reservoirs to be produced independently, will be included, as will gas and water injection
wells to improve recovery.
Use Of Existing Infrastructure
The optimized production plan for each field will be compared with the existing
infrastructure to establish which platforms and associated infrastructure will be retained.
Platform survey results and existing documentation on the facilities will be reviewed to
establish remediation work required to improve status to recognized international standards
of safety and utility. API standards supplemented by appropriate BSI, ISO, ASME, Institute
of Petroleum, ISA, N-FPA, TEMA, and AISC standards will be used as the benchmark.

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A work plan will be developed for the remediation activity. This will include the equipment
required and suitable sources of this equipment. Where equipment cannot be soured locally,
this will be indicated and costs and preferred routes of importation will be established.
New Infrastructure Work Plans
The requirement for new infrastructure for each field will be established through review of
the optimized production plans and a survey of the local capability to support this
requirement will be made. With this basis, preliminary designs of new facilities will be
developed along with a work plan for their installation. Designs will be carried out to
recognized international standards (API standards supported by other appropriate standards
will be used as the benchmark).
The new infrastructure work plan will be combined with the drilling plan to provide a
consolidated work plan for installation of the new infrastructure.
Well Abandonment Plans
A work plan will be developed for the abandonment of the wells not required by the
optimized production plan for each field. Preliminary designs will be developed for well
abandonment, the recovery of surplus equipment, including mechanisms for its salvage,
refurbishment, reuse or scrapping.
Removal Of Surplus Facilities
A work plan will be developed for the removal of infrastructure that is not required for the
optimized production plan for each field or is irreparably damaged. Preliminary designs for
facility removal will be developed including reduction for scrap, transportation site and
mechanisms to achieve partial cost recovery.
Health, Safety, And Environment Assessment
An assessment of potential health, safety and environment (HSE) factors relevant to each
project would be made. The assessment will be based on the following approach:
Policy
The policy will be to ensure that in carrying out its business operations, all employees are
aware of the importance of health, safety, and environmental issues where such issues are
relevant. Health, safety, and environmental issues will be treated with the same degree of
importance as other considerations.
Organization, Responsibilities, Standards, And Documentation
The implementation of any work would be carried out under the supervision of a project
leader who has overall responsibility for their satisfactory completion and all health, safety,
and environmental considerations. All design work will be carried out by suitably qualified
and experienced engineers who will perform work to meet the relevant standards. The
standards used in engineering studies are those recognized by the international oil and gas
industry, such as API, BS, and IP Codes and the relevant HSE considerations within them.
Engineering projects are fully documented and where HSE considerations are required to be
included, the approach used and the results of any study made will be fully documented.
Engineering Design
The provision of engineering design services will include the following approach:
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Identification of potential hazards


Assessment of likelihood of occurrence
Assessment of consequences of occurrence
Identification of methods to avoid or reduce hazard
Identify control measures to limit impact of hazard
Identify recovery measures should those controls fail

The preferred hierarchy in the incorporation of HSE into design and engineering is:

Elimination of the hazard (e.g. by substituting non-hazardous processes,


chemicals, etc.)
Incorporate inherent safety into design (e.g. by selecting a design pressure for a
pressure vessel in excess of the maximum achievable pressure)
Process control systems
Process safeguarding systems
Procedural controls

Planning And Procedures


In planning the HSE requirements of individual projects, the following requirements are
followed:

The relevant regulatory and legal HSE requirements


The client's specific project HSE instructions
The relevant industry standards and codes of practice

All procedures will be implemented with the objective of reducing environmental


contamination to an economic minimum.

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