1-Field Life Cycle

Schlumberger Confidential
The Field Life Cycle
Amine Ennaifer
RE & CSV Training Manager
ELC, Schlumberger
Sketch of the Life Cycle of a Field
Fig. Production profile throughout the field lifetime and a simplified business model
(Courtesy of Jahn et al., 2007)
Q: Phases of Field Life Cycle?

2
Overview
1. Exploration
2. Appraisal
3. Development
4. Production
5. Decommissioning
3
1- Exploration Phase
High risk activity. Before commitment to exploration
venture, various factors are required:
Promising geological conditions
Favorable political and fiscal conditions
Distance to potential markets
Existence of infrastructure and skilled workforce
4
1- Exploration Phase (Cont.)
It is common
to study a
prospective
area for several
years before
spudding the
first well.
Fig. Phasing and expenditure of an exploration program

(Courtesy of Jahn et al., 2007)
5
2- Appraisal Phase
Once an exploration well has encountered hydrocarbons,
the finding potential need to be accurately assessed
(shape, size and producibility of the accumulation).
2 possible scenarios:
Proceed with the development
Carrying out an appraisal program
Objective: reduce uncertainty on producible volumes not

finding additional hydrocarbons
6
2- Appraisal Phase: Feasibility Study
Various technical options are documented,
including:
Subsurface development options
Process design
Equipment sizes
Proposed locations
Crude evacuation
and export system
Cost estimate
Planning schedule
The most economically viable option is retained for

development.
7
3- Development Planning: FDP
A Field Development Plan (FDP) includes:
Objectives of the development
Petroleum engineering data
Description of engineering facilities
Operating and maintenance principles
Project planning
Cost and manpower estimates
Budget proposal
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3- Development Planning
1. Field Development Plan (FDP)
2. Detailed design of facilities
3. Procurement of construction
materials
4. Fabrication of facilities
5. Installation of facilities
6. Commissioning of all plants and equipments
9
4- Production Phase
Starts with production of first commercial quantities of
hydrocarbons (first oil)
Turning point for cash flow.
Used to pay back prior investments or fund new projects
The expected production profile depends strongly on the

drive mechanism
The production profile determines the sizing of the

facilities and the number of wells to be drilled
10
4- Production Phase: 3 Periods
1. Build-up: newly drilled
producers are progressively
brought to stream
2. Plateau: maintaining
constant production rate
typically 2-5 yrs for oilfields
(and longer for gas fields)
Fig. The field life cycle and a simplified business model

3. Decline: all producers exhibit (Courtesy of Jahn et al., 2007)
production decline (longest
period)
Q: Onshore or Offshore profile?
11
Onshore/Offshore
Development
Same physics
Difference in
decision-making
Fig. Production profiles for onshore and offshore oilfields
(Courtesy of Dake, 2001)
Onshore: discoveries are tied back to nearest production facilities

providing cash and dynamic inspection of reservoir
Offshore: appraisal wells cannot be produced from day 1 due to

lack of production and transportation facilities
12
5- Decommissioning: Deferring
< +
Though, production may still be technically possible

Decommissioning procedures should:
Minimize environmental effects
while limiting incurred costs
Deferred through:
Increase in hydrocarbon
production (EOR)
Developing nearby reserves
through the existing facilities
Reduction in maintenance
and operating cost
Tax concessions
13
5- Decommissioning: Costs
Includes:
Steel platforms cut off to an agreed depth below sea level
Platforms toppled over in deep waters
Concrete structures refloated, towed and sunk in deep ocean
Pipelines flushed and possibly left in place
Platforms used as artificial reefs
Onshore, wells plugged and processing facilities dismantled
gradually enabling to spread costs
Costs are ensured through:

Prior provision
Assets management
Taxation rules
14
Course Overview
Day 1 (pm):
I. Field Life Cycle
II. Exploration
III. HSE
Day 2 (am):
IV. Drilling
a. Drilling Overview
b. Mud Density Calculation
15
Course Overview
Day 2 (pm):
V. Reservoir Description
a. Data Gathering
b. Reservoir Geology
c. Rock Properties
Day 3 (am):
d. Fluid Behavior
16
Course Overview
Day 3 (pm):
VI. Dynamic Behavior
a. Reservoir
b. Well
VII. Field Management
a. Project & Contract Management
b. Petroleum Economics
VIII. Decommissioning
17
Course Overview
Day 4 (am):
VIII. Quiz
18

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What are the main phases of a field's life cycle?

What are the main phases of a field's life cycle?

What are the objectives of the appraisal phase?

What are the objectives of the appraisal phase?

Schlumberger Confidential

The Field Life Cycle

Q: Phases of Field Life Cycle?

Fig. Phasing and expenditure of an exploration program

Objective: reduce uncertainty on producible volumes not

The most economically viable option is retained for

Description of engineering facilities

Operating and maintenance principles

Cost and manpower estimates

2. Detailed design of facilities

6. Commissioning of all plants and equipments

The expected production profile depends strongly on the

The production profile determines the sizing of the

Fig. The field life cycle and a simplified business model

Q: Onshore or Offshore profile?

Onshore: discoveries are tied back to nearest production facilities

Offshore: appraisal wells cannot be produced from day 1 due to

Though, production may still be technically possible

Costs are ensured through:

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