Application of Enhanced Asset Value Framing AVF Approach to Unlock Significant Potential Value in Highly Compartmentalised and Stacked Reservoirs

Abstract

As host authority for all hydrocarbon resources in Malaysia, Petroliam Nasional Berhad (PETRONAS) Malaysia Petroleum Management (MPM) has championed Asset Value Framing (AVF) since 2016 to facilitate identification of asset enhancing opportunities and to establish a roadmap for opportunity realization. This paper is the continuation of the previous paper (SPE-196486) which illustrated opportunity identification through AVF. In 2019, PETRONAS had embarked on benchmarking oil reservoirs for all Malaysian oil reservoirs which was used for the AVF process to improve economic recovery factor of an oil field and booking new contingent resources. This paper focuses on enhanced AVF approach to integrate subsurface, wells, surface and operations; coupled with recommended improvements to AVF process from lookback exercise, reservoir performance assessment, data analytic through reservoir benchmarking tool and assessment of analogue reservoirs. A case study will be shared from one of the largest oilfields in Sarawak wherein enhanced AVF approach was applied to unlock significant potential of which conventional techniques faced challenges in identifying opportunities. Field B consists of multi-layered depositional system with numerous fault-bounded accumulation areas. Benchmarking process was performed for each of reservoir units to estimate the potential recovery factor and degree of complexity. In reservoirs where current estimates of recovery factor were lower than the benchmark, these were screened to be considered for identification of new opportunities through AVF process. Additionally, benchmarking process was applied to evaluate optimal well spacing, need for secondary recovery and identification of potential challenges for future development planning. A paradigm shift was undertaken to AVF process itself whereby focused development plan was considered for the entire column of rock within every fault block - instead of chasing oil by reservoirs. This subsequently allowed an integrated approach to optimize well type and cost, infill and water injection well count, completion design and overall evacuation strategy. Application of reservoir benchmarking significantly improved the delivery of AVF process by identification of recovery gaps in the field and application of learnings from better performing reservoirs. This coupled with Enhanced AVF workflow approach of focused development plan has resulted a roadmap for Field B to achieve ultimate recovery factor of 40% through a number of potential development opportunities within the next few years. An enhanced AVF workflow coupled with benchmarking process has facilitated field potential evaluation within two months, leading to efficient decision making, resource accrual and value creation for all stakeholders. This workflow can be replicated to other fields, maximizing economic reserves, increasing asset value, and defining the development roadmap.