bluuebunny/crossref_metadata_2025 huggingface dataset:
Review and proposed extension of the APPEA Method for estimating levels of financial assurance
Authors: Horn David , Downey Kristina , Taylor Andrew
Published: May 2018

In 2014, the Australian Petroleum Production and Exploration Association (APPEA) published the ‘Method to assist titleholders in estimating appropriate levels of financial assurance for pollution incidents arising from petroleum activities’, referred to as the APPEA Method. The APPEA Method provides a standard approach to quantifying the appropriate level of financial assurance required under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act). The National Offshore Petroleum Safety and Environment Management Authority (NOPSEMA) endorsed the APPEA Method for an initial period of 2 years (until December 2016) with the requirement that APPEA review the method against a broader range of case studies to confirm its validity.
In 2017, APPEA applied the APPEA Method to 18 case studies, comparing independently calculated cost estimates with the APPEA Method cost band for each case study. For 17 of the 18 case studies, the independent cost estimate was less than the APPEA Method cost band, confirming the validity of the APPEA Method for those case studies. For one of the case studies involving marine fuel oil, the APPEA Method cost band potentially underestimated the response and clean-up costs. The robustness of the APPEA Method can be improved by amending the hydrocarbon type impact score for fuel oils. Based on the review, NOPSEMA has since endorsed the APPEA Method until September 2018.
The APPEA Method is currently endorsed for incidents in which the total volume of hydrocarbon released is <1 000 000 m3 and the total volume of oil ashore is <25 000 m3. Based on an assessment of the response and clean-up costs from three additional case studies that exceeded these limits, amendments to the APPEA Method are proposed that would extend the range of incidents to which it could be applied.
Free drainage of foam mixed with proppants in the presence of nanoparticles
Authors: Fei Yang , Gonzalez Mary , Haghighi Manouchehr
Published: May 2018

The focus of this paper is an experimental study at room temperature and pressure of free drainage and proppant suspension of four types of designed foams: A, 0.1 wt% regular anionic surfactant mixture; B. Foam A + 0.8% SiO2 nanoparticle; C, Foam A + 0.36% carboxymethyl hydroxypropyl guar; and D. Foam A + 7% NaCl. The results show that SiO2 nanoparticles with surfactant significantly improve the foam stability. In addition, we concluded that better proppant suspension can be achieved by higher viscosity and higher foam stability.
Petroleum source rocks of Western Australia
Authors: Ghori K. Ameed R.
Published: May 2018

Petroleum geochemical analysis of samples from the Canning, Carnarvon, Officer and Perth basins identified several formations with source potential, the:
• Triassic Locker Shale and Jurassic Dingo Claystone of the Northern Carnarvon Basin;
• Permian Irwin River Coal Measures and Carynginia Formation, Triassic Kockatea Shale and Jurassic Cattamarra Coal Measures of the Perth Basin;
• Ordovician Goldwyer and Bongabinni formations, Devonian Gogo Formation and Lower Carboniferous Laurel Formation of the Canning Basin;
• Devonian Gneudna Formation of the Gascoyne Platform and the Lower Permian Wooramel and Byro groups of the Merlinleigh Sub-basin of the Southern Carnarvon Basin; and
• Neoproterozoic Brown, Hussar, Kanpa and Steptoe formations of the Officer Basin.
Burial history and geothermal basin modelling was undertaken using input parameters from geochemical analyses of rock samples, produced oil, organic petrology, apatite fission track analysis (AFTA), heat flows, subsurface temperatures and other exploration data compiled by the Geological Survey of Western Australia (GSWA). Of these basins, the Canning, Carnarvon, and Perth basins are currently producing oil and gas, whereas the Southern Carnarvon and Officer basins have no commercial petroleum discovery yet, but they do have source, reservoir, seal and petroleum shows indicating the presence of petroleum systems.
The Carnarvon Basin contains the richest identified petroleum source rocks, followed by the Perth and Canning basins. Production in the Carnarvon Basin is predominantly gas and oil, the Perth Basin is gas-condensate and the Canning Basin is oil dominated, demonstrating the variations in source rock type and maturity across the state.
GSWA is continuously adding new data to assess petroleum systems and prospectivity of these and other basins in Western Australia.
Drilling data of deep coal seams of the Cooper Basin: analysis and lessons learned
Authors: Salmachi Alireza , Dunlop Erik , Rajabi Mojtaba
Published: May 2018

Deep (>4920 ft; >1500 m) coal seams of the Cooper Basin accommodate large amounts of natural gas; however, permeability of this unconventional resource is low and reservoir stimulation in prospective coal intervals is essential to achieve commercial production. This paper aims to analyse drilling data of deep coal seams of the Cooper Basin in South Australia. Drilling data obtained from mud logs are utilised to construct a drillability index (DI), in which rate of penetration is normalised by drilling factors, making DI more sensitive to coal rock strength. Analysis of DI and gas show information provides a preliminary screening tool for studying prospective deep coal seams, before performing in-depth reservoir characterisation and production tests.
The decline in DI with depth is attributed to a compaction effect that makes deeper coal seams more difficult to drill through compared with shallow seams. The existence of a fracture network can reduce coal rock strength and consequently DI may increase. The increase in DI may be indirectly related to fluid flow characteristics of the coal seam helping in identifying prospective coal intervals. The DI is also affected by other factors and, hence, should be used in combination with reservoir information to yield conclusive indications. Gas show information and DI results were utilised to indicate the effectiveness of dewatering operation and hydraulic fracture confinement in the wells drilled in the Klebb area located in the Weena Trough.
Pioneering Li-ion batteries on an offshore platform
Authors: Jacobs Lourens , Nguyen Nancy , Beccarelli Ryan
Published: May 2018

Woodside is an Australian oil and gas company and a leading global operator of offshore gas platforms and onshore LNG processing facilities. It is a public company listed on the Australian Securities Exchange headquartered in Perth, Western Australia. Woodside operates the Goodwyn A gas platform on behalf of the North West Shelf (NWS) Project.
Woodside assessed Li-ion battery technology and considered the technology mature and ready to be utilised on offshore and onshore operating assets. Woodside operates dedicated islanded gas turbine power generation at each of its onshore and offshore facilities. It was concluded that a large battery energy storage solution (BESS) can deliver several advantages if connected to such an islanded power generation system. The most significant benefit materialises by using a BESS as backup (or spinning reserve) for the gas turbine generators (GTGs). Woodside decided to pioneer the Li-ion BESS technology in a first of its kind application on the NWS Project offshore Goodwyn A gas platform.
The Goodwyn A BESS is designed for a 1 MW power and 1 MWh energy capacity, which is considered sufficient to provide the spinning reserve for the Goodwyn A platform. Currently, Goodwyn A operates four 3.2 MW GTGs to provide a typical load of 7–8 MW, with one GTG providing the N+1 spinning reserve. When the BESS is connected to the power generation system, Goodwyn A will operate three GTGs, with the BESS proving the backup in case one of the GTGs trip. The BESS will provide the full 1 MW for a minimum of 1 h, which will give the operators enough time to start the standby GTG or adjust the facility loads (load shedding).
The result will be a decrease in overall fuel gas consumption (due to better efficiencies on the remaining GTGs in operation) and a related reduction in CO2 emissions. The project supports the overall objective of the North West Shelf Project to improve the energy intensity of its facilities by 5% by 2020.
Woodside believes that developing capability and experience on the installation of BESSs, using Goodwyn A as an early adopter, will facilitate similar and larger installations on other Woodside operated offshore and onshore assets. This is one of the technologies Woodside believes will play an important role to ensure a lower carbon future globally.
A new compact for communities, government and the resources sector
Authors: Purtill James
Published: May 2018

The growth of coal seam gas production in the Surat and Bowen Basins sparked an exploration and development rush for which few were prepared. Lessons learned suggest that a much greater level of community engagement early on is needed, particularly in frontier basins, to support a social licence for the minerals and energy sector and successful co-existence.
The Queensland Department of Natural Resources, Mines and Energy releases an Annual Exploration Program (AEP) identifying acreage releases for coal, minerals and petroleum and gas resources typically for cash and non-cash tenders. Historically these releases have occurred with little prior engagement with directly affected communities. In a changing environment in which communities are demanding greater levels of consultation, higher performance standards and greater transparency, this approach needed reform.
In 2016, the AEP took a radically different approach. For the first time, the AEP introduced pre-release engagement with directly affected landholders and occupiers, traditional owners, community groups and local governments within the release areas to ensure all stakeholders are fully informed.
These stakeholders are now notified earlier in the AEP timeline, with a range of supporting engagement opportunities also available following the release. These engagement activities promote transparency and enable directly affected stakeholders to access the information they need to be better prepared for potential future exploration. Early results show a high level of appreciation by stakeholders for the early notification, and a willingness to be kept informed of the process. This is particularly the case in the frontier basins. The broader community can also access AEP information via the department’s website and online interactive mapping programs.
Update of the information guidelines to improve scientific information provided to the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development
Authors: Walker Glen , Taylor Sarah , Baker Peter , Bouma Mitchell
Published: May 2018

The Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (IESC) provides scientific advice to decision makers on the impact that coal resource development may have on Australia’s water resources. In particular, advice is provided on development proposals that have been submitted to the Australian Government and relevant state governments in the form of environmental impact statements (EISs). The Information Guidelines developed by the IESC outline the information considered necessary to enable the IESC to provide robust scientific advice to government regulators on the water-related impacts of coal resource development proposals. Proponents preparing EISs are strongly encouraged to consult the Information Guidelines before developing and submitting a proposal.
The Information Guidelines have been updated for the first time since 2015 and will be presented. The update includes important and more detailed information about what types and the level of information that should be included in EISs. In addition a series of ‘explanatory notes’ have been developed which provide practical examples of how information should be presented in an EIS. The first two explanatory notes relate to uncertainty analysis in numerical groundwater modelling and how to undertake comprehensive assessments and manage impacts to groundwater dependent ecosystems. Two additional explanatory notes will be released for use later in 2018. The updated Information Guidelines are a continuing step towards improving the robustness of information provided to the IESC.
Impact of clay type and water composition on low salinity water injection – visualisation approach
Authors: Amirian Tammy , Haghighi Manouchehr
Published: May 2018

Low salinity water (LSW) injection as an enhanced oil recovery method has attracted much attention in the past two decades. Previously, it was found that the presence of clay such as kaolinite and water composition like the nature of cations affect the enhancement of oil recovery under LSW injection. In this study, a pore-scale visualisation approach was developed using a 2D glass micromodel to investigate the impact of clay type and water composition on LSW injection. The glass micromodels were coated by kaolinite and illite. A meniscus moving mechanism was observed and the oil–water interface moved through narrow throats to large bodies, displacing the wetting phase (oil phase). In the presence of kaolinite, the effect of LSW injection was reflected in the change to the wettability with a transition towards water-wetness in the large sections of the pore walls. The advance of the stable water front left behind an oil film on the oil-wet portions of pore walls; however, in water-wet surfaces, the interface moved towards the surface and replaced the oil film. As a result of wettability alteration towards a water-wet state, the capillary forces were not dominant throughout the system and the water–oil menisci displaced oil in large portions of very narrow channels. This LSW effect was not observed in the presence of illite. With regard to the water composition effect, systems containing divalent cations like Ca2+ showed the same extent of recovery as those containing only monovalent ions. The observation indicates a significant role of cation exchange in wettability alteration. Fines migration was insignificant in the observations.
Case study: successful disconnection of a traditional floating production storage and off-loading unit
Authors: Gajula Sashi , Peuchot Bertrand
Published: May 2018

Decommissioning a producing asset within a low oil-price market scenario with a possibility of resuming production at a later stage is becoming a frequent task. The main objective of the offshore campaign is to release the floating production storage and off-loading unit (FPSO) at the earliest time by disconnecting all production risers, umbilical and mooring chains, and ensuring integrity of the subsea assets for future use.
The entire project for the disconnection of this FPSO was managed in four phases. The first two phases were related to shutdown of production and FPSO clean-up. The FPSO readiness for disconnection was required before the final two phases: disconnection of risers and mooring lines.
Detailed engineering was carried out in consultation with various stakeholders involved in the project: the regulator, the company, the FPSO owner and the installation contractor. Through feasibility studies, the best option was selected, which included innovative solutions to reduce overall offshore duration and project costs. The project was successfully completed by meeting the key objective of early departure of the FPSO without lost time injury or any significant environmental incidents.
Risk-based corrosion assessment and refurbishment of marine structures
Authors: Dickinson Stephan , Wilson Kerryn , Sarandily Ali , van der Werf René , Sheen Steve , Cawley Peter
Published: May 2018

This paper outlines a holistic, risk-based approach to managing the service life of existing liquefied natural gas (LNG) and liquefied petroleum gas (LPG) marine structures in Western Australia. The structures have been in service since 1989 (LNG) and 1995 (LPG) and are nearing the end of their original design life. The objective of this approach is to extend the design life for an additional 20 years to 2040. The risk-based assessment (RBA) process is composed of three main steps undertaken in sequence to identify and quantify refurbishment requirements for the timeframe. A two-campaign approach was considered, the first being in 2019 (Phase 1) and the second in 2030 (Phase 2). The RBA process combines innovative and conventional inspection techniques with a detailed desktop structural assessment of the remaining life of the structures’ individual components to enable an informed decision to be made on the refurbishment requirements for each campaign.
The results of the stepped RBA process demonstrate the effectiveness of the approach to define and manage a refurbishment program that achieves the required extended service life of the structures to 2040.
The RBA process enabled the first campaign’s scope to be minimised through detailed analysis and calculation of residual design life of each critical member, deferring most of the refurbishment scope to the second campaign in 2030.
The study has recommended implementation of a corrosion rate trial to verify the assumed corrosion rates for the jetty structures. Environmental monitoring stations and test coupons installed on the jetty for a five-year period will confirm the actual deterioration rates specific to the jetty structures. Confirmation of actual deterioration rates may reduce uncertainty in the values over those currently assumed in the study and positively affect the identified Phase 2 refurbishment scope.
Using risk connectivity and contagion to add value – how analytics are revolutionising the approach to risk
Authors: Sugars Caron
Published: May 2018

Companies are seeking more agility in how risk is managed. Businesses need a real-time view of risks underpinning decision making and, in an increasingly connected world, they want to plan for what is on the horizon to create competitive advantage. Management and boards are also asking questions about how strategic risks focus on, compare against and map to the well-grounded operational risk profile. Applying network theory, analytics and artificial intelligence creates an opportunity for risk management to drive strategy, reduce costs and add rigour to decision making. The significant competitive advantage gained through thinking about risk differently and incorporating greater focus on emerging risks can establish the resilience needed in a rapidly changing world. This paper considers how resilience, profitability and ultimately competitiveness can be enhanced through the application of technology, analytics and network theory to understand the interconnectivity, contagion as well as aggregation of risks and mapping of operational risk profiles to strategic risk profiles.
Cretaceous to present-day tectonic reconstructions of Zealandia
Authors: Seebeck Hannu , Strogen Dominic , King Peter , Nicol Andrew , Hines Ben , O'Brien Grant
Published: May 2018

Reconstructions of the past relative positions of northern and southern Zealandia provide important constraints on the orientation and amount of strain accumulated between rigid plates within the Australia–Pacific plate tectonic circuit. This configuration of plates ultimately determines how, where and when sedimentary basins formed during and since continental breakup along the eastern margin of Gondwana.
Although the first-order geometry of Zealandia is well established, uncertainty remains regarding plate motions through the latest Cretaceous to Eocene. Recent reconstructions are, in some cases, inconsistent with geological observations at key time intervals, highlighting uncertainties inherent in plate reconstructions for the south-west Pacific.
Building on previous tectonic reconstructions and incorporating published seafloor magnetic interpretations, paleomagnetic observations and geological constraints (e.g. terrane geometry and distribution), we developed a tectonic framework to reconstruct Zealandia back through to the latest Cretaceous.
Using GPlates, we use a simple double-hinge slat concept to describe Neogene deformation within the New Zealand plate boundary zone, while the geometry of northern and southern Zealandia during the Eocene is modified from recently published models based on geologic considerations. This study ultimately highlights the need for integrated studies of the Zealandia plate circuit.
Engineering real success using digital technologies
Authors: Phasey Craig , Ashfield Steve
Published: May 2018

The business press is full of articles extolling the benefits of digital transformation. Although no one wants to be left behind, getting caught up in a craze is not attractive either. But oil and gas companies have used digital technologies, such as computers and control systems for years; how is digitalisation different?
The key difference between a company with digital systems and a ‘digital company’ is connection. The former is characterised by disparate, unconnected digital systems, whereas the ‘digital company’ integrates the company’s systems, improving the precision of each. This enables integrated solutions, reducing the potential for counterproductive individual initiatives. Integration enables Big Data and Machine Learning, delivering additional insights. However, integration is not a universal good; as knowledge acquisition has accelerated, so has misinformation. There are better and worse ways to digitalise.
Acknowledgement that digitalisation is the way of the future will not induce change or ensure success. Digitalisation is an alternative method to achieve business goals; it is not the goal. To achieve real success using digital technologies, first a significant need must be identified. The root cause of the major business problems must be discovered before appropriate digital technologies to address those problems are selected. The challenge must be led and supported at the C-suite and the solutions must have enterprise-wide impact. Systems engineering digitalisation creates value through a set of initiatives rather than single-point optimisation. Selection of a suitable scalable digital backbone is a key element of successful implementation.
Cost recovery: when reducing costs for an asset can increase costs for an operator
Authors: Ludwig Robin
Published: May 2018

In an unpredictable environment, oil and gas companies within Australia need to reduce their cost of production in order to protect the company’s margins. Many large companies are doing this by adapting a traditional asset-based operating model to be a central functionally aligned model, and creating synergies through offshoring, outsourcing, combining corporate capabilities across global assets, and/or creating centres of excellence.
A functionally aligned centralised operating model, however, has the potential to increase the complexity for companies when recovering costs from their joint venture partners. In order to be recoverable, an operator must prove that the costs incurred are still directly related to the asset and by moving functions away from the front line, attribution to assets can be complex. If not allocated, documented and communicated in line with the joint venture agreements, the recoverability of these costs is put at risk. It could, therefore, eventuate that the reduction of costs for an asset results in an increase of costs for the operator.
When assessing the recoverability of costs, operators should consider: (i) documenting the end to end cost allocation process and communicate this with joint venture partners; (ii) embedding robust governance and tools to aid cost transparency; and (iii) reviewing their contractual obligations as operations evolve. If the appropriate steps are taken, an operator can reduce costs without increasing their own costs by putting recoverability at risk.
Construction safety case (MAP) – a strategy for successful implementation
Authors: Selleck Roberta
Published: May 2018

The Critical Control Management (CCM) methodology has emerged in the construction and mining industries as a ‘safety case’ to manage personal safety risks associated with high-risk activities. The construction-based Major Accident Prevention (MAP) program has been implemented on oil and gas projects since early 2016 and has been tested in greenfields, brownfields, operations and maintenance, and hook-up and commissioning environments. Since implementing the MAP program, a reduction in high potential ‘near miss’ events and a reduction of all injuries has been observed. Within the Clough organisation, four projects that are near completion have zero injuries.
MAP works by providing the specific standards (rules), in a similar manner to ‘operating limits’ used in process control systems, to ensure critical control integrity. Through these specific standards, MAP eliminates substandard field work practices becoming normalised and MAP empowers field supervisors and even line employees to ‘stop work’ when critical control standards are not met in the field.
Based on widely accepted organisational change principles, a framework for successfully implementing CCM has been developed. The framework is critical to successfully implementing and executing construction safety cases in a proactive manner. This paper explores what comprises CCM and the key attributes contributing to successful implementation.
Predictions of fracture growth in Walloon coals using a layer fracture model
Authors: Zhang Xi , Wu Bisheng , Connell Luke , Han Yanhui
Published: May 2018

Individual low-permeability Walloon coal seams are separated by the stiffer beds of carbonaceous shales, mudstone, siltstone and sandstone in the Surat basin. Considering the thin nature of Walloon coals, the fracture growth across the stiffer beds becomes a key issue in assessing the fracture treatment efficiency and in determining the impacts of fracture stimulation on groundwater resources. A hydraulic fracture model considering the elastic property difference across layers is developed to obtain the fracture growth behaviours in a multiple layer formation. A case study was performed where the in situ stress across beds is of similar magnitudes to highlight the effect of property difference. The fracture initiates at the targeted lower coal seam and the complex footprints generated by fracture growth are obtained. In contrast to the assumed constant fracture height and the large fracture height to length ratio obtained by other layer models, the vertical fracture growth is limited in the propagation speed by the alternating stiff and compliant rocks. The alternating growth in lateral and vertical directions results in an oscillating pressure, which is an indicative for fracture height growth.
The permeability structure of fault zones in sedimentary basins: a case study at the Castle Cove Fault, Otway Basin
Authors: Debenham Natalie , Farrell Natalie J. C. , Holford Simon P. , King Rosalind C. , Healy David
Published: May 2018

An understanding of the permeability structure and transmissibility of fault zones can have profound implications for reservoir appraisal and development within petroleum systems. Previous investigations on the permeability structure of fault zones often focus on low-porosity host rocks rather than porous sedimentary rocks which more commonly form reservoirs. We present detailed mineralogical and geomechanical data from porous Cretaceous sandstones (Eumeralla Formation) collected at the Castle Cove Fault in the Otway Basin, south-east Australia. Ten orientated sample blocks were collected in the hanging wall at distances within 0.5–225 m from the fault plane. A progressive increase in porosity (~17–24%), permeability (0.04–2.92 mD), and pore throat size and connectivity was observed as the fault plane was approached. High-resolution thin section analyses revealed an increase in grain-scale fractures and deformation of authigenic clays in sandstones adjacent to the Castle Cove Fault plane. The improvement of the permeability structure of the sandstones is attributed to the formation of grain-scale fractures and the change in clay morphology as a result of faulting. This study demonstrates the importance of detailed mineralogical and geomechanical analyses when attempting to understand the reservoir properties of high porosity, low permeability, and clay-rich sandstones.
Social media use in the Australian energy and resources sectors
Authors: Styan Craig A.
Published: May 2018

Social media is becoming ubiquitous, but may not always be an effective way for companies to interact with their stakeholders. This paper reports the results of ongoing assessments of social media use in the Australian energy and resource sectors, starting from 2013. Nearly all energy and mining companies had publicly accessible websites but, although increasing, social media use is (still) relatively limited compared with other industries. LinkedIn (with a recruitment focus) was the social media channel most commonly adopted across the extractive sectors, although Twitter and YouTube are increasingly being adopted. Larger companies use more channels, post more and have more followers. In contrast, even small environmental and community groups frequently used a range of social media. Although this may suggest social media should be a place to engage such groups in dialogue, other recent studies suggest that, in practice, social media platforms are often difficult venues to do this, not least because companies cannot control the directions of conversations. For example, customers of utility companies frequently use social media to bypass official grievance mechanisms, which, over time, has apparently led to demand-driven increases in resourcing needed to deal with this. In addition to providing an industry-wide benchmark of social media use, these surveys provide a basis for comparison with other industries to understand what role social media could have in better engaging stakeholders associated with the extractive sectors.
Effects of near surface lithology on velocity modelling and time–depth relationships in the Cooper–Eromanga–Lake Eyre Basin
Authors: Manka Anna , Buick Glen , Menpes Rob , Gardiner Luke , Jones Cameron , Amrouch Khalid
Published: May 2018

Structural closures on the western flank of the Patchawarra Trough in the Cooper–Eromanga Basin are truly low relief; drilling opportunities regularly target hydrocarbon columns of similar magnitude to the uncertainty of depth prediction. Improving the accuracy and precision of depth prediction will reduce risk for drilling opportunities, and improve drilling success rates. A detailed study of the near surface geology (surface to ~500 m depth) of the western flank of the Patchawarra Trough has been undertaken to better understand the effect of observed geological variations of the near surface on depth prediction at deeper target levels. The stratigraphic interval investigated includes the top of the Eromanga Basin and the entire Lake Eyre Basin, which is sparingly studied and routinely overlooked in the statics and velocity modelling process. This study analysed recently acquired cased-hole sonic logs in conjunction with gamma logs and mudlog data to map out the observed geological variations, and construct a 3D velocity model of the near surface. Variations of layer thickness and seismic velocity were input into Monte Carlo simulations to investigate sensitivities of each formation on two-way travel time and depth prediction. This investigation has found that velocity variations of the Weathered Winton Formation, and thickness variations of the Namba Clastics have the greatest impact on imaging of structures at depth. Independently, these have the potential to completely conceal or create structures in the time domain. Continued efforts in improved understanding of the near surface will subsequently lead to enhanced imaging of structures, which can then be used in the mapping of structural closures in petroleum exploration and development.
Smart upstream to LNG
Authors: Byfield Russell
Published: May 2018

With today’s current technologies, it is possible to answer the question, ‘What is the most profitable mode of operation for the next few hours, for the rest of today, tomorrow and beyond?’ With ‘lower for longer’ oil prices, the need for enterprise wide optimisation in the upstream and midstream oil and gas industry is greater than ever. The terms ‘Digital Oil Field’, ‘Digital Gas Field’, ‘Digital Twin’ are being utilised to extol the virtue and value of big data analytics and model-based asset optimisation and supply chain optimisation by enabling this in efficient ways not previously possible with multiple unintegrated systems, processes and procedures. Multiple different point solutions rolled out across multiple sites become difficult to integrate horizontally for management of safe and optimised operations and vertically up to business enterprise resource planning level to give useful and timely business insights. With careful planning, coupled with deep operational technology and operations knowledge, an integrated enterprise wide supply chain and asset operations and management system can unlock significant hidden value. This is enabled by the correct and efficient integration of many systems and the efficient collection, management and use of huge amounts of data. As the industry needs to ‘do more with less’, getting this integration right is critical to enable desired outcomes and functionality. This paper summarises the current state-of-the-art solutions that enable optimised well to liquefied natural gas plant process, asset and business management to deliver desired functionality and outcomes.
What comes next: responding to recommendations from the task force on climate-related financial disclosures (TCFD)
Authors: Tyagi Shiva
Published: May 2018

The task force on climate-related financial disclosures (TCFD) published its recommendations for disclosing climate-related risks in June 2017. The TCFD report represents a framework for companies to disclose climate-related information consistently in their mainstream financial filings. Reporting financial activity using the lens of climate-related risk would, according to the TCFD, help more appropriately price risks and allocate capital in the context of climate change. The initiative, while voluntary, would help speed the transition to a low-carbon economy, and help shift the corporate perspective beyond immediate concerns.
The oil and gas industry can play a leading role in the transition to a low carbon economy through: carbon capture and storage, use of natural gas as a transition fuel and the implementation of large-scale renewable energy projects.
Given the oil and gas industry’s global leadership in petroleum geology, resource extraction and pipeline transmission, the industry has a vital role in testing the feasibility of large-scale carbon capture and storage.
Fossil fuels and renewable energy technologies have obvious complementary synergies and fossil fuels like natural gas are necessary for the reliable, affordable and low-cost transition to a low carbon transition pathway.
The oil and gas industry may be the only sector with the requisite expertise and global scale of operations to test and implement large-scale renewable technology initiatives within a public-private partnership framework. Moreover, oil and gas companies are well positioned to be leaders in the effort to adapt and strengthen resilience to the effects and risks of climate change and reduce impacts.
The Halladale–Speculant fields: the first nearshore gas fields to be developed from mainland Australia
Authors: Constantine Andrew , Morgan Glenn , O'Leary Robin , Smith Simon
Published: May 2018

Extended-reach drilling (ERD) is becoming an increasingly common technique used to explore for hydrocarbons and develop fields in areas where simple vertical wells cannot be drilled due to access problems, stakeholder concerns, environmental issues, poor reservoir quality and/or cost. While these types of wells are generally more expensive and technically challenging to drill than vertical wells, they can be very cost-effective, and if a discovery is made, considerably quicker to monetise when future development costs are also taken into consideration, particularly in offshore environments.
In 2014–2015, the conventional Exploration and Production division of Origin Energy (now Lattice Energy) drilled three onshore-to-offshore ERD wells and a geological sidetrack in the Otway Basin with horizontal offsets of 1929, 2576, 4239 and 5152 m targeting an undeveloped gas field (Halladale) and exploration prospect (Speculant) located in Victorian state waters near Port Campbell. The three wells (Halladale-2, Speculant-1 and Speculant-2) and sidetrack (Speculant-2ST1) were drilled during a single drilling campaign from the same pad to reduce mobilisation, drilling and development costs. Halladale-2 was designed to develop the Halladale Field, while Speculant-1, -2 and -2ST1 were designed to evaluate the Speculant Prospect. Both Speculant wells and the sidetrack encountered significant gas columns with Speculant-1 and Speculant-2ST1 subsequently completed as producers after being successfully flow tested. A 33 km onshore pipeline was then constructed to transport the gas from Halladale and Speculant back to the Otway Gas Plant (OGP) for processing and sale.
The arrival of first gas at the OGP from the Halladale and Speculant gas fields on 26 August 2016 marked a significant milestone for Origin Energy in terms of accelerated project delivery. It also represented the end of a 15-year journey for Halladale from exploration to discovery to development. The drilling campaign also set several records in the process with: (1) Speculant being the first offshore field to be discovered from mainland Australia; (2) Halladale and Speculant being the first offshore fields to produce gas back to mainland Australia from onshore wells; (3) Halladale-2, Speculant-1 and Speculant-2 being the three longest onshore-to-offshore wells drilled to date in Australia (in horizontal departure terms); and (4) Halladale-2 being the longest well (in mMDRT terms) drilled to date in the Otway Basin. Speculant is a good example of how transition zone (TZ) seismic and ERD technology can be used successfully to explore and develop resources in areas previously considered too difficult by using more conventional seismic acquisition and drilling technology.
Wellsite serviced power model for the CSG industry
Authors: Harris Gregory Edward
Published: May 2018

CD Power (CDP) was challenged by a coal seam gas (CSG) operator to develop a wellsite power supply solution that would lower the operators running costs ($/kWh) whilst improving availability from low 90% to above 97% power availability. Furthermore, the operator sought a supply, install and maintain approach – resulting in a cheaper, more reliable outsourced energy solution.
Typically, energy supply to wellsites in Australia consists of expensive inflexible and slow to install high voltage (HV) cable reticulated to each well. As wellsites deplete, these HV cables cannot be rerouted, resulting in expensive loss of capital. These limitations prompted operators to seek a highly mobile and cost focussed solution.
CDP was contracted to deliver an innovative program of power solutions for a major CSG operator at 50 wellsites in 2017. The contract is to design, manufacture, install and maintain mobile 3-phase power supply units for wellsites. These units are powered by gas reciprocating engine generators and solar battery modules with synchronising switchboards.
The full wellsite serviced power contracting model is a first of its kind for the CSG industry and is based on delivering high power availability and collaborative field service performance. CDP anticipates that providing a high level of technical innovation and superior performance, they will see the model extended across the industry and challenge the traditional economics around HV wellsite power.
This paper will address the challenges faced in moving from a traditional segregated power model to a performance-based model at a time when the power industry is surrounded by innovation.
Effect of casing eccentricity on cement sheath integrity
Authors: Arjomand Elaheh , Bennett Terry
Published: May 2018

Cement sheaths play an important role in providing zonal isolation and preventing the migration of formation fluids to aquifers and the surrounding environment. The condition of a cement sheath may change because of the imposed pressure and temperature alterations during a wellbore lifetime. Cement sheath mechanical failure may happen because of poor cement placement, development of cracks within the cement sheath and debonding at the cement sheath, casing and rock interfaces. A three-dimensional finite element framework, employing an appropriate constitutive model (Concrete Damage Plasticity, CDP) for cement sheath and a surface-based cohesive behaviour for the interfaces, is developed for integrity investigations. The incorporation of the CDP is very advantageous to model quasi-brittle materials due to its capabilities to simulate both compression and tensile damage. The effect of casing eccentricity on stress distribution within the cement sheath and the integrity of the cement sheath is investigated while enhancing the wellbore pressure. Three different degrees of casing eccentricity (30%, 50% and 70%) were considered. The huge stress concertation within the narrower part of the cement sheath makes this section susceptible to compression and tensile damage. The high magnitude of compression and tensile damage in the scenario with 70% casing eccentricity highlights the importance cement sheath centralisation.
Injectivity formation damage due to fines migration
Authors: Chequer Larissa , Bagheri Mohammad , Zeinijahromi Abbas , Bedrikovetsky Pavel
Published: May 2018

Formation damage by fines migration during low-salinity water injection can greatly affect field-scale waterflooding projects. In this paper, we present the basic governing equations for single-phase flow with detachment, migration and straining of natural reservoir fines. We perform laboratory corefloods with low-salinity water injections and monitor the breakthrough particle concentration and pressure drop across the core. The analytical model for linear flow matches the laboratory data with high accuracy. The analytical model for radial flow predicts well behaviour from laboratory-tuned coefficients. The calculations show that fines migration during low-salinity water injection causes significant injectivity decline. For typical values of fines-migration model coefficients, injectivity index declines 2–8 times during 10−3 pore volumes injected and the radius of the damaged zone does not exceed a few metres. We present two field cases on waterflooding and low-salinity water injection. The radial model presents good agreement with well injectivity field data.
Coreflood planning criteria for relative permeability computation by Welge-JBN method
Authors: Al-Sarihi A. , You Z. , Behr A. , Genolet L. , Kowollik P. , Zeinijahromi A. , Bedrikovetsky P.
Published: May 2018

Relative permeability computation is extensively applied in petroleum engineering through the Welge-JBN’s method in unsteady-state corefloods. The purpose of this work is to determine admissible coreflood parameters that could limit the application of the Welge-JBN method. These parameters are presented through theoretical and operational criteria. The theoretical criteria include capillary number and capillary–viscous ratio. The operational criteria consist of measurement precision for pressure, volume sampling for either of phases, water cut measurement precision, and number of samples taken during one pore volume injected. The minimum core length and fluid displacement velocity for specific rock and fluid properties could be determined through these criteria. A laboratory coreflood example was performed using the proposed parameters.
Investigating depth structure uncertainty for horizontal well placement, Bauer Field, Cooper-Eromanga Basin
Authors: Shirley Erin
Published: May 2018

The Bauer Field was discovered in August 2011 on the Western Flank of the Cooper-Eromanga Basin. Bauer 1 discovered an 11 m oil column in the Namur Sandstone, directly overlain by a 4 m oil column in the McKinlay Member. The Bauer Field has been developed by vertical wells targeting the high deliverability Namur Sandstone with the McKinlay Member as a secondary target. In 2017 the decision was made to specifically target the McKinlay Member with a horizontal well, requiring a multi-disciplinary approach to combine geological, geophysical and engineering datasets.
The McKinlay Member is 3–5 m in thickness and below seismic resolution with the wavelet being dominated by the larger acoustic impedance contrast produced from the Namur Sandstone. The McKinlay Member depth structure was mapped using various depth conversion methods to investigate the uncertainty in the depth structure expected for the landing of the well and along the lateral section. An average depth surface generated from the different techniques was useful for providing the general form of the structure and was used to predict dip changes along the lateral section. Understanding the uncertainty led to successful well placement of the first horizontal well in the McKinlay Member on the Western Flank.
The role of marine science in managing environmental risk offshore
Authors: Hardisty Paul E , Dommisse Michaela , Cooper Karin E
Published: May 2018

Australia’s marine economy is worth over $70 billion a year, of which offshore oil and gas is a big contributor. Operating safely and in an environmentally sustainable way is vital to the long-term success of Australia’s offshore petroleum sector. Making good risk management decisions depends on a sound understanding of the complex marine environments in which they operate. Key emerging challenges include the effects of noise on marine life, decommissioning of offshore infrastructure, and the unprecedented rate of change in natural marine systems.
The Australian Institute of Marine Science (AIMS) undertakes research that helps industry, regulators, government and the wider community to make informed decisions about the management of Australia’s marine estate.
Working closely with industry and government partners, AIMS has established some of the world’s longest running and most comprehensive tropical marine monitoring programs. The regional baseline datasets span the subtropics of Western Australia, the North West and North Marine Regions, through to the Great Barrier Reef and the Coral Sea Marine Region. This unique repository of data and environmental intelligence allows quantification of system changes, modelling of anticipated future trends and impacts of development, and the development and testing of risk mitigation measures. Examples of research specifically tailored to meet the needs of the offshore oil and gas industry include recent projects in noise management, eco-toxicity and machine learning/automation. In each case, AIMS and its science partners worked with industry to develop research programs designed to help manage specific risks, or conduct work more efficiently and safely.