Oil and gas operations optimization calls for integration of well, reservoir, and process facilities into a holistic model that can be maintained over time to reflect changing conditions. (Image courtesy of Aspen Technology)

In E&P, adding reserves and increasing production are the name of the game. For new fields, the trick is to derive the best development plan and processes—from conceptual engineering design to operating facilities—to turn hydrocarbons in the ground into marketable crude or natural gas at a sales point. With operations under way, the goal is to manage subsurface and surface assets efficiently, safely, and reliably to produce and recover as much as possible.

Accomplishing these feats involves many hand-offs of information between disciplines and departments and among companies. Communication is based on paper documents, e-mail, Excel spreadsheets, and project planning tools. Too often the result is loss of context, poor communication, lost time, more cost, and less revenue.

In addition, only a very fuzzy trail exists to show why decisions were taken. Losing decision-context makes it difficult to transfer knowledge from experienced staff to those less so.

Asset lifecycle management is based on having designed flexibility. An asset must then be operated reliably, safely, and at the designed cost. Enabled by technology, integrating these elements across the asset’s lifecycle is now possible for the first time. Success can come through leveraging emergent software technologies.

Appraisal, development

Once an oil or gas discovery is made, operators face myriad development options. The ability to predict capital costs early, in a front end loading (FEL) exercise, is important. It enables more informed decisions and maximum flexibility as to project design and scope, facilitating analysis of cost sensitivity to various project factors and design choices.

Design optimization software makes the FEL exercise electronic and includes benefits such as:
• Efficient handover of engineering data sets between disciplines, leading to reduced engineering man-hours and project timelines;
• Re-use of repeated design tasks, saving engineering time and reducing variability in design; and
• Access to the best engineering expertise via electronic-based collaboration.

These benefits cumulatively amount to more than one-third of the total cost and time of an FEL effort.

In one example, Worley Parsons, a global engineering, procurement, and construction (EPC) company, is involved in early stages of many design projects. Its integrated-solutions approach to these projects, which span four continents, gives it the ability to handle a 30% increase in project workload, while keeping staffing levels flat.

Once there is agreement on a development plan and the operator and partners are committed to major capital spending, communication and collaboration can be achieved with business process integration involving engineering, design, construction, project management, safety, and operations. Information must be shared among the following:
• Technical disciplines in the operating company;
• The operating company and EPC general contractor;
• Project suppliers and vendors;
• The company operating the assets; and
• Oil and gas processing facilities.

Sharing vital design and specific information among several EPC companies is a difficult challenge. To meet it, companies standardize engineering solutions to enable interoperability across the enterprise and with third parties.

Multiple users in multiple locations not only model and design equipment faster and more accurately, but perform robust cost estimating and financial analysis simultaneously. The results are better designs in a shorter time frame, improved execution, and better return on investment throughout the asset lifecycle. The proof surfaces in a number of real-world examples.

An international operator’s policy is that all engineering firms and contractors working with the operator must deliver design and plant specification documents electronically using a common format. This ensures that as information comes in from many sources the operator can easily assimilate, analyze, and manage it.

This policy is notable for several reasons. The software applications involved are traditionally used by EPC companies to make estimates, manage workflow, and achieve detail design goals.

Adoption of this software by the operating company not only streamlines data interchange, but allows rapid validation. Besides breaking down information silos between the company and its contractors, it also greatly enhances project communication among engineering disciplines within the owner-operator organization. With “as-built” process and instrumentation diagrams (P&ID), process flow diagrams (PFD), and equipment lists in electronic format, operations has a readily accessible and accurate foundation on which to run the asset and do any future revamp work.

Information captured throughout the development process includes PFD, P&ID, equipment lists, and process models. Maintained “as-built,” these documents can be rapidly accessed for startup, decision support, maintenance, and other operational situations.

Identifying opportunities

BP is a leader in E&P’s digital revolution. One prime example is the company’s work to take two important complex assets and leverage real-time data, process models, and computing horsepower to improve production and meet sales requirements.

The Azeri oil and gas production asset in the Caspian Sea is one of BP’s top five investments worldwide. BP Trinidad & Tobago is notable because it includes offshore gas production and separation and onshore condensate treatment units. These complex facilities encompass production platforms, separation facilities, gas compression, pipeline transport, and an onshore gas processing plant.

BP determined that only a model-based approach would provide the visibility and insight needed to optimize operations. Success required collaboration across disciplines—including production engineers, process engineers, and gas dispatchers—and connection to real-time data.

Integrating real-time data from wells with operating models of process facilities can ensure optimum oil and gas flow. Production facilities often serve multiple fields, creating interaction between platforms, pipelines, and processing.

For example, at Azeri the model uses real-time data from more than 40,000 sensor tags. The model and optimizer allow dynamic reconfiguration for timely results across business or process scenarios and can focus on performance of the entire asset or only on certain subsystems. The heart of the tool is a high-fidelity, asset-wide simulation model that receives plant data from a centralized data historian.

At Azeri, BP says the approach garnered hard improvements of 3% in production. The Trinidad asset recorded 7% more natural gas liquids production. The model and real-time data are a powerful analytical tool to consider what-if scenarios and a solid informational base for schedulers.

Finally, as part of a major integration initiative, Saudi Aramco repurposed an existing sophisticated software solution to achieve a new goal. They wanted to connect corporate strategy to planning and scheduling and models of the operating reality. The objective was to optimize natural gas routing to preferred gas plants to achieve maximum value at the lowest cost.There were five drivers for this:
• Developing integrated engineering and business solutions;
• Making better use of existing data and emerging technology;
• Transforming operations;
• Use technology and work processes to improve decision making; and
• Improving reliability and efficiency.

Aramco needed to optimize a vast network of wells, gathering systems, gas/oil separation plants, NGL plants, and pipelines. The complexity of options and variables, considering that more than 80 plants were involved, exceeds the ability to use purely human or manual means. Even application of software assistance required a new approach due to the size of the models involved. Aramco therefore first optimizes each plant in the network. Summaries of those results are input to an optimization tool to select what production stream goes to what plant.

The results have been impressive:
• Increased throughput: 3% to 8%;
• Increased energy savings: 3% to 5%;
• Increased effective capacity: 2% to 8%;
• Reduced planning time: 50% to 70%; and
• Reduced inventory: 15% to 35%.

Aramco eliminated many of the decision silos endemic to its upstream operations. With consistent data and information it optimized a major segment of operations, and made possible future optimization schemes that could extend from wellheads to refineries.