bluuebunny/crossref_metadata_2025 huggingface dataset:
3D numerical simulation of injection into a porous natural gas storage
Authors: Chamani Amin , Rasouli Vamegh
Published: August 2017

The increasing demand for the consumption of natural gas has attracted the interest to store natural gas in depleted reservoirs. Natural gas is injected into the depleted reservoir and then produced once needed to be supplied to the consumers through pipelines.
Changes of reservoir fluid pressure due to injection/ depletion will result in the local changes of stress regime inside the reservoir as well as the surrounding rocks. These stress fluctuations will primarily lead to the deformations and changes of the loads exerted on the wellbore. This can potentially trigger hazardous events such as considerable land surface movements, wellbore instability and casing collapse, fault reactivation, and cap rock failure. Therefore a good knowledge of reservoir geomechanics is required when planning storage of natural gas in a depleted reservoir.
In this paper the concept of effective stress and pore pressure will be reviewed. A 3D finite element (FE) numerical modelling technique is developed to investigate the changes in stresses and displacements either during the injection or the depletion in a complete isotropic elastic media. The numerical code is used to simulate the injection-induced stress and displacement fields at a field scale for a hypothetical model with an embedded porous formation. The effect of formation rock mechanical properties such as Young’s modulus is also investigated through a series of sensitivity analysis. The results are presented and interpreted and various conclusions are made.
Exploration in Australia 2000–2010: reviewing a decade of growth
Authors: Rheinberg Paul
Published: August 2017

Oil and gas exploration in Australia, both on and offshore, has been centred on a small number of proven petroleum provinces and—given the extent of prospective basinal area that exists—it remains relatively under-explored to this day. Since the 1970s, companies have progressively spent a smaller proportion of their exploration budgets on onshore and shallow water targets, where discoveries have been regular yet unspectacular, in favour of the deeper waters, where higher risks are involved but the potential exists for significantly higher returns. This activity has led to the discovery of more than of 150 Tcf of gas in the North Carnarvon, Browse and Bonaparte basins, the majority of which sits in deepwater areas.
An absence of infrastructure and a lack of an adequate market meant that these huge discoveries lay undeveloped; however, with developments in technology and demand for gas in Asia set to surge into the next decade, these previously stranded fields are set to move into development, underpinning economic growth in Australia and ensuring that the country moves to the forefront of the LNG industry worldwide.
This paper will examine upstream activity, both on and offshore, in Australia since 2000, a decade in which the country has become one of the most prominent destinations for exploration expenditure in the world. Following the exploration cycle from acreage release through to discovery, it will look at how trends and activity have changed over time and examine how successful the industry has actually been. It will explore the factors driving activity and the effects external forces such as regulatory changes, oil price and prevailing economic conditions have had on activity levels.
No post-Conference paper is available for this presentation.
No post-conference paper is available for this presentation.
Knowledge management and 3D modelling: overview and application to iterative 3D modelling workflows
Authors: Tyson Stephen , Herweijer Joost
Published: August 2017

As 3D reservoir modeling is effectively the centre stage in many multi-disciplinary reservoir management efforts, the need for effective knowledge management is paramount to ensure:

Inclusion of pre-existing knowledge is in the model, including absent (or controversial knowledge), reflected in uncertainties.
A definition of a modeling process comprehensively covers the reservoirs issues identified while leading to fit for purpose results in a given imposed time span.
Storage of knowledge generated and a modeling audit trail during the modeling process to ensure adequate and efficient model updates over time.
Creation of a link between the integrated modeling process and the discipline processes that generate the basic data that underpin the model Current 3D modelling methods and tools allow for creation of models and storing model specific workflows (i.e. software related parameters and processing chains).
In addition, various efforts are undertaken to store modelling best practice, which typically entails general know-how about creating models. During a specific 3D modelling project, however, a considerable body of knowledge is generated about what and what not makes the model work for a given reservoir. Such knowledge, which are essential for systematic uncertainty assessment during an existing modelling effort or subsequent modelling efforts, needs to be managed in order to retain its relevance.
This extended abstract focuses on application of knowledge management in the EP industry, particularly on how process or workflow-based knowledge management approaches add value in the context of 3D modeling projects for multidisciplinary reservoir management.
Enhanced gas recovery, CO2 storage and implications from the CO2CRC Otway Project
Authors: Cook Peter , Cinar Yildiray , Allinson Guy , Jenkins Charles , Sharma Sandeep , Soroka Michael , Tan Jo Ann
Published: August 2017

Successful completion of the first stage of the CO2CRC Otway Project demonstrated safe and effective CO2 storage in the Naylor depleted gas field and confirmed our ability to model and monitor subsurface behaviour of CO2. It also provided information of potential relevance to CO2 enhanced gas recovery (EGR) and to opportunities for CO2 storage in depleted gas fields. Given the high CO2 concentration of many gas fields in the region, it is important to consider opportunities for integrating gas production, CO2 storage in depleted gas fields, and CO2-EGR optimisation within a production schedule.
The use of CO2-EGR may provide benefits through the recovery of additional gas resources and a financial offset to the cost of geological storage of CO2 from gas processing or other anthropogenic sources, given a future price on carbon. Globally, proven conventional gas reserves are 185 trillion m3 (BP Statistical Review, 2009). Using these figures and Otway results, a replacement efficiency of 60 % (% of pore space available for CO2 storage following gas production) indicates a global potential storage capacity—in already depleted plus reserves—of approximately 750 Gigatonnes of CO2.
While much of this may not be accessible for technical or economic reasons, it is equivalent to more than 60 years of total global stationary emissions. This suggests that not only gas—as a lower carbon fuel—but also depleted gas fields, have a major role to play in decreasing CO2 emissions worldwide.
Evolution of the American Petroleum Institute ANSI standard for fatigue risk management systems in the refining and petrochemical industry
Authors: Baker Angela
Published: August 2017

During the past five years, a broad international consensus has emerged in many 24/7 industries regarding the optimal way to manage and reduce employee fatigue risk: via a process called a fatigue risk management system (FRMS). Government regulatory agencies, industry associations and many businesses with 24/7 operations have recently incorporated an FRMS into their regulations, industry standards, and their corporate policies. The development of the American Petroleum Institute (API) and American National Standards Institute's (ANSI) standard for FRMSs in the refining and petrochemical industries began after the US Chemical Safety Board (CSB) released its report on the 2005 Texas City Refinery explosion.
The CSB report highlighted concerns about some of the operators on duty being on their 30th consecutive 12-hour shift. API decided to take a proactive approach and develop an industry standard by forming a committee of industry managers from many of the oil companies, union representatives, industry associations and scientific experts in circadian sleep physiology and fatigue in shiftwork operations. During the course of extensive consultations during a two year period, a clear consensus emerged that hours of service rules would be inadequate by themselves. A clear consensus emerged that a comprehensive scientifically-based, data driven FRMS was a superior and feasible tool for effectively managing fatigue risk. API developed a standards document published in April 2010 as API/ANSI RP-755 that makes FRMS the operating standard for managing employee fatigue risk in the refining and petrochemical industry.
The extended abstract reviews the considerations that went into developing the ANSI standard, issues that were resolved and progress and hurdles faced by the many petrochemical companies as they are now progressively implementing ANSI RP-755 as a continuously-improving FRMS process.
Geology and prospectivity of the Capel and Faust basins in the deepwater Tasman Sea region
Authors: Hashimoto Takehiko , Higgins Karen , Rollet Nadege , Stagpoole Vaughan , Petkovic Peter , Colwell Jim , Hackney Ron , Logan Graham , Funnell R , Bernardel George
Published: August 2017

Geoscience Australia recently completed a petroleum prospectivity assessment of the Capel and Faust basins as part of the Australian government's energy security program. This pre-competitive study was carried out in collaboration with GNS Science and the government of New Caledonian, and was based on seismic, potential field, multibeam bathymetry and sample data acquired during marine surveys in 2006–7.
The Capel and Faust basins are located in the Tasman Sea region, which contains a number of deepwater basins. There is little information about their geology. The Geoscience Australia study confirmed the existence of large compartmentalised depocentres containing sediments up to 6 km thick. The basins formed during two Cretaceous extensional episodes related to the final breakup of eastern Gondwana. Syn-rift deposition appears to have been initially dominated by volcanics and volcaniclastics, then dominated by non-marine to shallow marine clastics. The post-rift succession comprises upward-fining clastic to calcareous bathyal sediments. A pre-rift (?Mesozoic) sedimentary succession appears to underlie some depocentres.
Mesozoic successions in nearby eastern Australian and New Zealand basins suggest that fluvio-deltaic potential source rocks (Triassic/Jurassic to Upper Cretaceous coals) may occur in the pre-rift and syn-rift successions of the Capel and Faust basins. Multi-1D basin modelling suggests that the deeper depocentres are presently within the oil or gas generation window and that expulsion occurred from the Early Cretaceous. Fluvio-deltaic, shoreline and turbiditic sandstones may provide potential reservoirs. Likely play types include large anticlines, fault blocks, unconformities, and stratigraphic pinchouts. The results will guide future exploration and reduce risk in this vast frontier region.
A sound exposure level study near the Camden Sound area, Browse Basin
Authors: Long Andrew , Duncan Alec , Maggi Amos , Colman Jeremy , Wisløff Jens , Ali Jaafar , Mostavan Averrouz , Hedgeland David
Published: August 2017

A common approach to environmental risk assessment when assessing the level of risk to marine animals during marine seismic surveys is to compare either measured or modelled estimates of underwater sound levels to a known sound level threshold criteria.
Over the years, a number of measures have been used to calculate and characterise underwater sound thresholds, including: sound pressure level (SPL), a root mean square (RMS) calculation, and—more recently—sound exposure level (SEL). SEL was suggested in 2007 by an expert panel of researchers as an appropriate measure to reduce the risk of temporary threshold shift (TTS) occurring in marine animals.
Petroleum Geo-Services (PGS) commissioned an SEL study in preparation for a large MultiClient 3D seismic survey planned for the environmentally sensitive Camden Sound area, Western Australia, in late 2010. The Centre for Marine Science and Technology (CMST) at Curtin University built a comprehensive bathymetric model of the Camden Sound area and used two seabed geoacoustic models, with sand/limestone—as worst case, most reflective—and silt—as best case, least reflective. Acoustic propagation modelling over the frequency range of 8–1 kHz was used to build 3D maps of sound levels throughout all areas relevant to the seismic survey.
The CMST SEL modelling results were integrated with other airgun array and SEL modelling pursued by PGS, and represent part of a broader environmental management strategy by PGS. Discussion is also given to other variants of SEL modelling.
Refining the Mungaroo Formation and Lower Barrow Group depositional models, Exmouth Plateau, North Carnarvon Basin: WA-390-P phase II exploration
Authors: Minken Jon , Cox Phil , Buchanan Sandy , Griffin Dean , Kusumanegara Yohan , Massie Steve , Moig Neil , Owen Paul , Prescott Edward , Smallwood John
Published: August 2017

Permit WA-390-P, in Australia’s Exmouth Plateau, has been the subject of an extensive exploration drilling campaign with gas discovered in the Late Triassic Mungaroo Formation and the Cretaceous Lower Barrow Group. Characterisation of these reservoirs with 3D seismic data, well logs, core and biostratigraphic information has allowed insight and refinement to the previously established depositional models. The Mungaroo Formation comprises a thick succession (more than 2 km) of delta plain deposits characterised on 3D seismic by channel morphologies of differing sizes and orientations. Well penetrations in the channels reveal sand-bodies that can be classified as either single-storey or multistorey.
Single-storey sand-bodies are thin (less than 15 metres), narrow in planform (less than one kilometer), lack evidence of lateral accretion and occasionally exhibit a funnel geometry. Multistorey channels are characterised by relatively thick, vertically and laterally amalgamated sand-bodies (more than 15 metres), in a broad channel morphology (more than one kilometer) bounded at its base by a composite surface of erosion. Single-storey channels have been interpreted as distributary channels and multistorey channels as incised valleys. In contrast, the Lower Barrow Group is a contemporaneous wave-dominated delta and slope-to-basin-floor sediment gravity flow system.
The depositional environments formed progradational clinoform seismic stratigraphic units that filled accommodation generated during rifting. The delta is organised into arcuate to cuspate lobes that show changes in the shelf-slope trajectory with variations in accommodation and sediment supply. During falling trajectories of the shelf-slope break, the slope is demarcated by gullies forming a line of feeder systems that transport sediment from the delta shoreface into the deep-water. The sediment gravity flows formed coalescing fans that blanket the toe-of-slope and basin floor.
Flexural extension and top/fault seal failure in the Bonaparte Basin: input form multi-scale deformation models
Authors: Langhi Laurent , Ciftci Bozkurt
Published: August 2017

Overcoming uncertainties associated with top/fault seal effectiveness still represents a critical challenge for conventional hydrocarbon exploration in the Bonaparte Basin. Cainozoic faults’ development/reactivation and dip-linkage processes through top seal have been well established as primary causes of the development of conduits, leading to fluid flow from reservoirs. Constraining predictions on structural traps integrity and preservation of hydrocarbon column, however, requires further understanding and quantification of the background mechanism behind the Cainozoic structural activity.
In this paper, we use 2D elastic models to evaluate the evolution of the flexural deformation affecting the Bonaparte Basin petroleum system during the Cainozoic development of the Timor foreland basin. Associated stress distribution is quantified using multi-scale deformation modelling and used to predict the locus of deformation and fault distribution within the Cretaceous top seal and Cainozoic limestone.
Modelling results associated with paleogeographic reconstructions and field-scale structural analysis support that the distribution of a flexural extension front triggers the Cainozoic structural activity. At the reservoir-scale, the horizontal extension results in new fault nucleation within the Tertiary limestone and reactivation of older faults bounding the reservoirs. Shear failure and linkage occurs between the initially detached two sets of faults due to the propagation of fault tip damage zones. The spatial relationship between the two sets, the Cainozoic stress tensor and the mechanical anisotropy of the stratigraphic column might significantly impact on such propagation and fault connectivity. The modelling of the perturbed stress field may provide prediction of potential fracture zones in the top seal and risking of traps structural trap integrity.
Shale gas prospectivity in South Australia
Authors: Hill Anthony , Menpes Sandra , Backè Guillaume , Khair Hani , Siasitorbaty Arezoo
Published: August 2017

Potential shale gas bearing basins in SA are primarily dominated by thermogenic play types and span the Neoproterozoic to Cretaceous. Whilst companies have only recently commenced exploring for shale gas in the Permian Cooper Basin, strong gas shows have been routinely observed and recorded since exploration commenced in the basin in 1959. The regionally extensive Roseneath and Murteree shales represent the primary exploration focus and reach maximum thicknesses of 103 m and 86 m respectively with TOC values up to 9%. These shales are in the gas window in large parts of the basin, particularly in the Patchawarra and Nappamerri troughs.
Outside the Cooper Basin, thick shale sequences in the Crayfish Subgroup of the Otway Basin, in particular the Upper and Lower Sawpit shales and to a lesser extent the Laira Formation, have good shale gas potential in the deeper portions of the basin. TOC averages up to 3% are recorded in these shales in the Penola Trough; maturities in the range of 1.3–1.5% have been modelled. Thick Permian marine shales of the Arckaringa Basin have excellent source rock characteristics, with TOC’s ranging 4.1–7.4% and averaging 5.2% over an interval exceeding 150 m in the Phillipson Trough; however, these Type II source rocks are not sufficiently mature for gas generation anywhere in the Arckaringa Basin. Shale gas has the potential to rival CSM in eastern Australia; its potential is now being explored in SA.
Leading practices in business development: a driver of competitive advantage
Authors: Curtin Russell , Audcent Justin , Nicholls Andrew
Published: August 2017

Oil and gas companies, like most other competitive organisations, have a relentless desire to achieve high levels of growth. In an environment where drill-bit expansion is becoming harder and more expensive, asset and corporate acquisitions are becoming a viable alternative for achieving aggressive targets. While the present uncertainty in financial markets has put a brake on activity, the near-term environment is seen as being particularly conducive to mergers and acquisitions (M&A) in the oil and gas sector.
It is viewed this way for the following reasons:

In general, the rising costs and lowering returns associated with exploration—which are expected to continue;
Many producers are sitting on significant cash reserves following a period of sustained high commodity prices; and,
New pressures caused by tighter capital market conditions (equity and debt) on those companies that have large evaluation and development funding obligations associated with their projects.

Companies looking to grow through acquisitions should be aware that the M&A game has changed. Investors are now firmly focused on the risk aspects of their investment, heavily scrutinising any deal in terms of strategy, value, execution and delivery risk. In such an uncertain market, robust thinking and a well-thought-out acquisition process are key criteria for a successful transaction. Getting the right deal for the right reasons is essential for winning the support of your shareholders. This presentation will explore the importance of an effective business development process, drawing on our observations from recent transactions and big oil thinking around corporate strategy, decision-making processes, leadership and assessment tools.
Composite repair of sub-sea pipelines
Authors: Wood Colin , Kozielski Karen , Tian Wendy , Gao Song , Hodgkin Jonathan , Leong K. H. , Leong Alan
Published: August 2017

The development of new deepwater oil and gas fields provide an opportunity for increased use of new materials. Conventional infrastructure is constructed using significant quantities of steel and concrete, which is becoming less practical in comparison to new light weight, easy to handle composites. When infrastructure needs to be repaired, there is often a requirement for underwater welding, which carries considerable occupational health, safety and environment (OHSE) risks.
For this reason, moving away from traditional metal structures or repair technologies is increasingly attractive. In recent years a number of new water activated composite wrap materials have been developed for use in underwater applications. The materials properties that are required can be difficult to achieve and maintain over an extended period of exposure to the marine environment, though, so many research groups are working on this challenge.
A comprehensive literature review has been undertaken to identify present state of the art ideas for the development of improved underwater materials and this will be discussed in the context of adhesive applications. Preliminary material characterisation work will be described where new resins have been formulated to perform well in marine environments and survive prolonged exposure to seawater. Experiments were carried out in artificial seawater and samples left to cure at a range of temperatures
DSC and dynamic mechanical analysis (DMTA) were used to evaluate the crosslink density of the network and the glass transition temperature respectively, while FTIR was used to determine the chemical structure in the cured systems. Preliminary mechanical test results have shown significant improvement in strength for the new formulations compared to a set of control samples of commercially available materials.
Bureau Veritas' demonstration of asset integrity
Authors: Rucinski John , Jarman Mark
Published: August 2017

The innovative paradigm developed by Bureau Veritas has been applied to achieve superior outcomes and benefits for a major oil and gas player. The focus of this innovative approach achieved operational security and risk management for the critical ageing assets. The paradigm and its vital components will become the benchmark for the management and improvement of the performance of ageing assets and serve as a fundamental input to new generation design for oil and gas facilities.
Among the key challenges in managing the performance (risk and integrity) of new and ageing assets are the understanding of process safety and critical equipment condition. When discussing with senior management the issues foremost on their minds, Bureau Veritas has found the answer is a common theme—how can I be confident the design of new or existing facilities is fit-for-purpose for the duration of the asset’s life? The integrated approach has brought together the leading concepts/tools in process risk management and prognostic health and reliability engineering. These components include rigorous risk-assessments of the process as well as sensing design based on failure mode consequence effect analysis (FMCEA), data acquisition and processing (real-time monitoring and data fusion), diagnostic and prognostic models and systems for the effective management asset(s). The result of this approach creates a value proposition of financial significance advantage.
The Redback gas discovery: a triumph for the formation image log
Authors: Powell Dean , Grewar Julia
Published: August 2017

A thin but highly productive reservoir near the top of the Permian Wagina Sandstone has been responsible for more than 100 bcf of gas from six producing wells, which were drilled along the fault bounded Beharra Springs Terrace in the northern Perth Basin. Recent drilling has targeted the Redback Terrace, located immediately east of the Beharra Springs Terrace with the Wagina Sandstone lying at least 300 m deeper.
Mt Adams-1 was drilled in 1966 at the northern end of the Redback Terrace—it encountered a tight Wagina section, suggesting reservoir quality could be an insurmountable risk on the deeper terrace. This paradigm seemed to be confirmed when Origin Energy drilled Redback-1 in 2004; nevertheless, this well was cased and suspended for a possible future sidetrack.
Redback-1 image logs provided evidence for the presence of a small, sub-seismic fault that could have been responsible for the absence of the high quality reservoir unit in the Wagina Sandstone. This interpretation, however, seemed to be too contrived; hence, it was not widely accepted.
The sidetrack well, Redback South-1, was finally drilled in 2009 and intersected 5.7 m of the high quality Wagina reservoir, confirming the image log interpretation. This reservoir flowed gas at a stabilised rate of 11.8 MMcf/d. Subsequently, in 2010, Redback-2 was drilled 400 m north of Redback-1 and encountered 14 m of pay—the thickest reservoir section ever recorded in the region.
Getting the best out of billion-dollar infrastructure assets
Authors: Doran John
Published: August 2017

What are infrastructure assets (IAs)? How can they best be managed? How can IA policy, strategy, tactics and operational execution ensure best commercial advantage through the entire life of the IA? These questions and others are addressed in this paper.
The way leaders direct IAs through their lifecycle is vital for optimising IA performance. This includes managing embedded cost in design and acquisition and applying appropriate business solutions through the productive (beneficial life) phases.
In a venture employing capital IAs, the design, engineering, procurement and construction may cost millions of dollars over several years. The production, operational, or beneficial life phase could cost billions in operations, maintenance and renewals over decades.
Being mindful of business imperatives, how can IA lifecycles be synergised to promote a seamless transition between phases? How can overall service delivery, safety, efficacy, risk, quality, volume, sustainability, longevity, and cost performance be optimally managed during each phase?
Different categories of IAs—fixed and movable—comprise different service lives, lifecycle cost distributions, risks, and physical and functional characteristics; therefore, tailored approaches to optimising performance are required.
Understanding the mix of infrastructure assets is important.
For example, it is important to understand:

dynamic-active-productive-point infrastructure—which usually contains moving components and generally consumes energy and is subject to wear and tear;
static-passive-linear infrastructure—which is usually structural in nature and may be buried or submersed;
instrumentation-control-automation equipment; and,
movable assets.

This understanding will guide the development of policy, strategy and tactics to help ensure optimum operational performance of complex IAs.
The Hammerhead Delta—deepwater fold-thrust belt, Bight Basin, Australia: 2D kinematic and geomechanical reconstructions
Authors: MacDonald Justin , Backé Guillaume , King Rosalind , Hillis Richard
Published: August 2017

The Hammerhead Delta—deepwater fold-thrust belt is located in the Ceduna Sub-basin of the Bight Basin, offshore southern Australia. It is a short lived gravity gliding system, Late Santonian-Maastrichtian in age. It exhibits a distinctive spoon shape in cross-section and detaches on a master horizon above Santonian marine shales of the Tiger Supersequence. Here, we have interpreted a large seismic dataset—including the recently acquired regional two-dimensional seismic dataset provided by Ion Geophysical—to constrain the regional structural geometry of the Hammerhead Delta—deepwater fold-thrust belt.
Two structural restorations were completed to quantify the amount of extension and shortening in the system. These restorations were: a two-dimensional kinematic restoration, using 2D MOVE; and a two-dimensional geomechanical restoration, using Dynel 2D. By comparing results from the two techniques we demonstrate that the amount of observed extension in the delta top is nearly balanced by the shortening in the delta toe. The near balance (< 2 % excess extension) of the system is a unique result. Other passive margin systems demonstrate larger amounts of extension compared to shortening, due to the regional-scale pro-gradational nature of the systems.
These results suggest that the balanced geometry of the Hammerhead Delta—deepwater fold-thrust belt is consistent with either a sudden decrease in sediment supply during the upper Maastrichtian, resulting in a cessation of prograding fault activity, or a loss of extension to the underlying Cenomanian growth faults or some combination thereof. Thus, the system failed to develop into an extensive passive margin delta—deepwater fold-thrust belt.
Numerical simulation of CO2 injection into fractured gas condensate reservoirs
Authors: Al-Abri Abdullah , Amin Robert
Published: August 2017

More than sixty percent of the world’s remaining oil reserves are hosted by intensely fractured porous rocks, such as the carbonate sequences of Iran, Iraq, Oman, or offshore Mexico (Bedoun, 2002). The high contrast of capillarity between the matrix and the fractures makes a significant difference in the recovery performance of fractured and non-fractured reservoirs (Lemonnier and Bourbiaux, 2010). Simulation of naturally fractured reservoirs is a challenging task from both a reservoir description and a numerical standpoint (Selley, 1998). This paper presents the recovery performance of CO2 injection into a local fractured and faulted gas condensate reservoir in Western Australia. Tempest 6.6 compositional simulation model was used to evaluate the performance of uncertain reservoir parameters, injection design variables, and economic recovery factors associated with CO2 injection. The model incorporates experimental IFT, relative permeability data and solubility data at various thermodynamic conditions for the same field. These measurements preceded the simulation work and are now published in various places. The model uses Todd-Longstaff mixing algorithm to control the displacement front expansion.
This paper will present, with aid of simulation output graph and tornado charts, the results of natural depletion, miscible and immiscible CO2 injection, waterflooding, WAG, sensitivity of fracture porosity, permeability and fracture intensity. The results also demonstrate the effect of initial reservoir composition, well completion and injection flow rate. All simulation cases were carried out at various injection pressures. The results are discussed in terms of transport mechanisms and fluid dynamics. This project was sponsored by a consortium of companies.
2012 offshore petroleum exploration acreage release
Authors: Constable Tania
Published: August 2017

Australia has abundant natural gas reserves and is experiencing a rapid expansion of its liquefied natural gas (LNG) production capacity. In 2011 alone, four Australian LNG projects received final investment decisions (FIDs) and another FID was made in the first weeks of 2012. These projects will add more than 33 million tonnes of new LNG capacity, represent more than $100 billion in investment, and will see Australia become the world’s second largest LNG exporter by 2015.
These projects are underpinned by Australia’s stable economic environment and our effective and efficient legislative regime that provides the industry the confidence to pursue a variety of investment opportunities. The essential first step covered by this regime is exploration, which is supported by Australia’s annual Offshore Petroleum Exploration Acreage Release. Prepared by the Department of Resources, Energy and Tourism and Geoscience Australia, the annual Acreage Release is the key mechanism used by the Australian Government to encourage investment in petroleum exploration.
The 2012 Acreage Release areas have been carefully selected to offer the global petroleum exploration industry a variety of investment opportunities. Areas vary in size, level of existing geological knowledge, and are located in a range of water depths. Selected areas are supported by pre-competitive geological and geophysical data and analysis undertaken by Geoscience Australia.
The detailed Acreage Release information package is available at online at www.petroleum-acreage.gov.au or by visiting the Commonwealth Government’s booth at the APPEA conference.
Contemporary fiscal issues impacting M&A in the oil and gas sector
Authors: Wee Kenneth
Published: August 2017

Ongoing growth in deal activity in the oil and gas industry is one of the critical forces underpinning the sustained robustness of the Australian economy. Australian oil and gas assets continue to attract significant international interest and are actively pursued by global and domestic investors alike. On the supply side, exploration players are seeking the necessary funding and technical support to commercialise prospective oil and gas discoveries, while on the demand side, major established oil and gas companies are seeking to acquire viable targets as a means of rapidly replenishing their reserves. Consequently, merger and acquisition (M&A) deals and asset trades have become a regular feature of the corporate oil and gas scene in Australia. In time to come, a wave of industry consolidation is likely to emerge. This paper discusses key fiscal aspects of M&A transactions, as affected by recent developments in the Australian taxation landscape, and their impact on the overall economics of, and extracting value from, an investment in the oil and gas sector, including:

the taxation of farm-in/farm-out arrangements, asset swaps and carry arrangements;
structuring the deal consideration for fiscal efficiency;
takeover and acquisition vehicle structures;
the M&A issues associated with the extension of the Petroleum Resource Rent Tax (PRRT) to the onshore oil and gas industry;
consideration associated with capital management, capital structure and financing trends for the industry;
exit and repatriation routes—do all roads lead to tax?;
managing transaction costs; and,
managing tax risks in M&A deals.
Personal ruin versus corporate profit: why individual risk attitudes lessen economic outcomes
Authors: Welsh Matthew B. , Begg Stephen (Steve) H.
Published: August 2017

Previous work on utility theory has highlighted value lost as a result of companies’ non-risk-neutral behaviour. Prospect theory, however, extends utility theory to describe how individuals make decisions under uncertainty. Key features include: use of decision weights rather than probabilities, and asymmetry between losses and gains, with losses weighted more heavily. Both effects impact on peoples’ risk tolerance (i.e., how risk averse or risk seeking they are). Given the petroleum industry’s reliance on decisions made under uncertainty, prospect theory can significantly impact on the value of decisions.
This paper presents multiple studies highlighting the impact of prospect theory on decision value and, in particular, the changes in value resulting from differences between individual and company risk tolerances. Results indicate that prospect theory effects cause changes in risk tolerance, resulting in lost value compared to risk-neutral decisions and that this is strongest when probability of success is low—as is often the case in petroleum exploration. Differences between individual and corporate risk tolerances also impact value. The presented studies, however, demonstrate why it can benefit an individual to be risk averse even when their employer would prefer risk-neutrality, as this reduces the chance of personal ruin and increases personal expected value (EV).
Finally, the implications for oil and gas decision makers are discussed. It is argued that corporate risk tolerances are, in fact, aggregated individual risk tolerances, which should be compared to ideal corporate risk tolerances calculated using the chance of ruin for a company with a particular portfolio of investments.
Marine environmental monitoring programs: tips on design, measurement and interpretation
Authors: Hanley John Russell
Published: August 2017

Marine environmental monitoring programs are these days a standard requirement for the oil and gas industry in all jurisdictions. Monitoring programs are generally required during the construction and siting of infrastructure in or near the marine environment and then also for the operational phases of that infrastructure.
The types and scales of monitoring programs developed and implemented vary enormously from project to project and typically reflect the complex interplay between often competing factors such as legislative framework, environmental and political sensitivities, cost, industry standards, existing information, predicted levels of impact, access to technology, and the level of professional expertise engaged.
With so many factors influencing the design of a program it is sometimes difficult to focus on the core requirements of any marine environmental monitoring program.
Using case examples this paper provides some advice on choosing which potential impacts are important to monitor, developing a good study design (including the importance of baseline data collection and pilot studies), choosing the right parameters to monitor, avoiding the seduction of technology, and selecting appropriate statistical tests.
The other topic covered is some advice on the interpretation of results with emphasis on the need for clarity at the beginning of a monitoring program about what the data collected will, or can, be used for.
Seismic on the edge—the Speculant 3D Transition Zone Seismic Survey
Authors: Aouad Andrew , Taylor Randall , Millar Neil , Meagher Robert , Brooks Deidre
Published: August 2017

The Speculant 3D Transition Zone (TZ) Seismic Survey was acquired by Origin Energy in the Otway Basin, about 30 km east of Warrnambool, Victoria, during November and December 2010. The objective of the survey was to fill a data gap between existing marine and land 3D seismic surveys. Although the survey covered a small surface area, it included part of the Bay of Islands Coastal Park, dairy farms, southern rock lobster fishing grounds and the migration route for the Southern Right Whale. Numerous exclusion zones were required to address a variety of stakeholder concerns, avoid environmentally sensitive areas, combat a physical landscape dominated by 60 m sea cliffs and the large Southern Ocean surf.
These access restrictions required the innovative use of modern seismic technology to enable a survey that could simultaneously record onshore and offshore without a physical connection between recording systems. On land a GSR cable-free recording system was used for the first time in Australia, eliminating the need for any line preparation or vegetation clearing. Offshore an ocean bottom cable system was used. The survey employed smaller sources than traditionally used in the region. A 900 in3 generator–injector airgun array was used offshore while a single Vibroseis unit was used on land.
This paper shares the lessons learnt during the planning, approval and acquisition of the Speculant Seismic Survey with the steps taken to reduce the operation’s footprint while maintaining data quality.
Reassessing the in-situ stress regimes of Australia's petroleum basins
Authors: King Rosalind , Holford Simon , Hillis Richard , Tuitt Adrian , Swierczek Ernest , Backé Guillaume , Tassone David , Tingay Mark
Published: August 2017

Previous in-situ stress studies across many of Australia’s petroleum basins demonstrate normal fault and strike-slip fault stress regimes, despite the sedimentary successions demonstrating evidence for widespread Miocene-to-Recent reverse faulting.
Seismic and outcrop data demonstrate late Miocene-to-Recent reverse or reverse-oblique faulting in the Otway and Gippsland basins. In the Otway Basin, a series of approximately northeast to southwest trending anticlines related to reverse-reactivation of deep syn-rift normal faults, resulting in the deformation of Cenozoic post-rift sediments are observed. Numerous examples of late Miocene-to-Recent reverse faulting in the offshore Gippsland Basin have also been observed, with contractional reactivation of previously normal faults during these times partially responsible for the formation of anticlinal hydrocarbon traps that host the Barracouta, Seahorse and Flying Fish hydrocarbon fields, adjacent to the Rosedale Fault System.
A new method for interpreting leak-off test data demonstrates that the in-situ stress data from parts of the Otway and Gippsland basins can be reinterpreted to yield reverse fault stress regimes, consistent with the present-day tectonic setting of the basins. This reinterpretation has significant implications for petroleum exploration and development in the basins. In the Otway and Gippsland basins, wells drilled parallel to the orientation of the maximum horizontal stress (ÏH) represent the safest drilling directions for both borehole stability and fluid losses. Faults and fractures, striking northeast to southwest, previously believed to be at low risk of reactivation in a normal fault or strike-slip fault stress regime are now considered to be at high risk in the reinterpreted reverse fault stress regime.
Seismic attributes and structural interpretation—it takes two to tango...
Authors: Backé Guillaume , Swierczek Ernest , MacDonald Justin , Bailey Adam , Tassone David , Abul Khair Hani , Holford Simon , King Rosalind
Published: August 2017

In this paper, different 3D seismic attributes calculated to improve the accuracy and robustness of structural interpretations in several energy-rich Australian basins are compared. Detailed and precise fault and fracture maps are crucial not only for initial petroleum play assessment, but also for fault seal analysis and reservoir integrity studies. Robust fault and fracture models are also needed to improve the design of reservoir simulation programs and to manage the long-term containment of gas in geological formations.
Different attributes (including coherency, dip-steered similarity, dip-steered median filter, dip-steered variance, apparent dip, and dip-steered most-positive and most-negative curvatures) from an array of 3D seismic datasets to better image structural fabrics, such as normal and different fractures patterns, in the North Perth, Cooper, Ceduna, Otway and Gippsland basins have been calculated.
The results provide a remarkable improvement in the quality and precision of structural maps using this multi-attribute mapping workflow by comparison with more conventional maps produced, solely using seismic amplitude data. The key to the successful application of multi-attribute structural analysis, however, remains with the ability of the interpreter to identify meaningful structural information from a large volume of data. Thus, the structural expertise of the interpreter remains as the cornerstone to making geological sense of the various seismic processing techniques available.
Better reservoir visualisation
Authors: Moore Andrew , Storey David J. , Stanton Darren
Published: August 2017

Santos, a significant Australian energy company, sponsors open source software to improve 3D reservoir visualisation. The software, TurboVNC, allows users of standard laptops to connect to servers running Paradigm exploration and production software from any network location. Performance, collaboration and data management benefits are coupled with capital and operational savings of $2.5 million AUD. Santos’s TurboVNC project won the global Innovator of the Year award (2011) with Red Hat, suppliers of Linux, the server operating system.
Beyond these immediate benefits, the real value of thin client application delivery is the ability to centralise data in one large database. This facilitates consistent data standards and quality procedures to be applied. New insights and value can be derived from the consolidated big data gathered from the full exploration and production spectrum. The hypothesis is that access to larger, integrated data sets can result in better reservoir models, reduced uncertainty and optimised production.
Incised valleys in marginal-lacustrine depositional environments: a new reservoir analogue from Lake Eyre, central Australia
Authors: Amos Kathryn , Goodwin Carley , Soria Angel
Published: August 2017

Incised-valley fill deposits can form important hydrocarbon reservoirs and provide pathways for hydrocarbon migration. Incised-valleys formed in marginal-marine environments are well described, however, marginal-lacustrine incised-valleys have been the focus of extremely few investigations and are poorly understood. This paper provides a new description of incised-fluvial systems that are presently constructing terminal deposits in embayments around the shoreline of Lake Eyre, central Australia. It is anticipated that better awareness of such deposits will assist in the recognition of these depositional environments in the rock record, which should be useful for exploration purposes and for the generation of improved models for continental dryland fluvial-lacustrine reservoir deposits. A classification of all significant river mouth deposits around Lake Eyre (width >300 m; n = 104), from topographic map and satellite image data, found that 54% are incised-valleys presently accreting a terminal deposit in a shoreline embayment (playa lake estuary). The depositional elements of three incised-valley systems have been mapped using satellite imagery in a GIS platform, from which element geometries are described. Controls on incised-valley formation are investigated by comparing these observations with evidence for past lake highstands and neotectonics and observations from satellite images, geological map data, and digital elevation model data. The terminal splay deposits of rivers around Lake Eyre are well-used analogues for dryland reservoirs; however, the focus has been on deposits accreting directly onto the playa. It is likely the incised-valleys and terminal deposits in the embayments described here will be of interest to companies exploring in, and producing from, ancient drylands and other lacustrine depositional environments.