Improving Oil Production Using Smart Fields Technology in the SF30 Satellite Oil Development Offshore Malaysia
Authors: Bogaert P.M. , Yang W. , Meijers H. C. , van Dongen C.M , Konopczynski M. 
Published: October 2008

Smart technologies are successfully applied to South Furious 30 (SF30), a satellite oil development offshore Malaysia. Smart well completion technology and intelligent gas lift optimization have been integrated, incorporating remote data acquisition, real-time flow estimation and remote process control. The overall benefits equate to about 10% production gains and approximately 2% additional reserves. SF30 came on stream late 2001, thus realizing one of the first smart fields in the world with remotely controlled subsurface and surface smartness.

Introduction

Smart or intelligent process control is extensively used outside the oil industry. Process control in manufacturing and chemical plants is commonly based on continuous cycles of measure, model and control. Modern cars achieve a higher power output, environmental performance, fuel efficiency and reliability through the application of improved materials, combined with sophisticated control of the engine. Modern engine control involves continuous surveillance and optimization, which is based on intelligent data analysis and virtual engine models. Smart Fields technology has the potential to enable a similar step change in performance in the oil industry.

In 1999 Shell started the Smart Wells initiative by setting up a dedicated team of well technologists and petroleum engineers at its exploration & production center in Rijswijk in the Netherlands. The team is gathering information from theindustry and through research to support operating companies with the justification and application of smart wells globally throughout Shell. In addition, in 2002 a dedicated Smart Fields team has been formed as a logical extension of the Smart Wells global implementation effort. While the Smart Wells initiative mainly concentrates on down hole monitoring and control, Smart Fields focuses on the implementation of integrated smartness in the complete upstream value chain from reservoirs to delivery points. Surface and subsurface smartness are thus addressed jointly.

From analysis of the various case studies and projects where smartness was applied, it became clear that the Smart Fields concept involves a lot more than just the installation of smart equipment. The increased functionality of smartness will only create value when it forms part of a so-called value loop. The value loop octogram (Fig. 1)(Available in full paper) is at the centre of the Smart Fields methodology. Crucial to the generation of asset value from the introduction of smartness is to close the value loop. The octogram illustrates the definition of the asset boundaries, data acquisition and interpretation, calibration of relevant models, the generation of options using the virtual asset models and the selection of the most attractive alternatives, which are then planned for execution. Unless a value loop containing measurement, interpretation and action, is properly closed it does not generate value (and could even destroy value over the lifecycle of the asset) (ref. 1).

The Smart Fields methodology considers new and existing smart technology, work processes and skills required to create value. The implementation of identified smart opportunities is always subject to a sound business case, the definition of functional requirements, and subsequently the selection of adequate smart solutions.