Digital Production Optimization Program
Authors: Hamad Mohammed , Bawardi Manal , Noaimi Reem , Lahoti Vishal , Anderson Michel 
Published: March 2019

Unconventional plays have characteristic differences in geology, field attributes and well parameters that significantly impact the operating model. They have a higher sensitivity to cost and require high volume and continuous drilling activity to maintain production. This necessitates investing in better technologies and processes that can enhance production by capturing well data, production data and events, enabling better analysis of operational and financial performance.

The Digital Production Optimization program is aimed at achieving end-to-end production excellence including forecasting, operations and hydrocarbon accounting. This will drive cost efficiencies by enabling better collaboration, analysis and accuracy. This comprehensive approach at hydrocarbon management is the foundation for Operational Excellence and focuses on the key aspects below. Hydrocarbon Allocation: Model flow networks provide automated and manual Field Data Capture (FDC) and perform allocationsDeferment Management: Capture flow network object downtime calculate deferred volumes and provide capability to classify and facilitate root cause analysesProduction Forecasting: Define a standard forecasting process, and implement data gathering and publishing of forecasting resultsEnterprise Production Reporting: Implement enterprise wide production reporting, including standard reports and ad-hoc reporting capabilityProduction and Revenue Accounting (PRA): Provide an accurate and auditable trail for production, sales volume and revenue accounting even at the well level

Digital Production Optimization uses real-time tracking, remote monitoring and predictive analytics to achieve production targets and reduction in deferment volume. Introduction of integrated platforms enables clearer line-of-sight from wellhead production to revenue, improve visibility to assets to drive better cost-efficient operations, and increase assurance for top-line results. A typical business case for digital production optimization has the following value drivers and benefit ranges. * Production increase: up to 3%Deferment reduction: 2-6%O&M cost reduction: 1-2%IT cost reduction: 10-20%

The initiative provides decision support by relying on the high fidelity of input data, use of advanced analytics, and rigorous business processes. The key to success here is not only investing in the right equipment for good data, or advanced tools and technologies for better analysis, but also enabling change management. The organization needs to establish critical behaviors like collaboration, data driven decision making and accountability.

Saudi Arabia Unconventional Resources has embarked on a journey to enable this Operational Excellence by implementing a comprehensive PRA program. In addition, we are managing change to set up the right processes, organizational structure and governance. This will help us achieve precise allocation of production volumes, validation, diagnosis and correction production data, and daily collaboration of stakeholders, approval workflows, comprehensive reporting and auditable accounting.