Outcome focused: how to deliver value in a field (re)development. A case study from the Cooper–Eromanga Basin, South Australia
S. J. Molyneux A C , H. F. Wu A , S. Delaney B and A. Gongora BA Molyneux Advisors Pty Ltd, 24 Stanley Street, Nedlands, WA 6009, Australia.
B Beach Energy Ltd, 80 Flinders Street, Adelaide, SA 5000, Australia.
C Corresponding author. Email: simon.molyneux@molyneuxadvisors.com
The APPEA Journal 60(2) 491-496 https://doi.org/10.1071/AJ19030
Accepted: 24 February 2020 Published: 15 May 2020
Abstract
The share of global hydrocarbon production from ‘aging’ assets is increasing, whereas global demand for energy continues to increase at 1–2% per year (IEA 2019). In 2018, the International Energy Agency estimated the global average production decline at 4% per annum (Gould and McGlade 2018). Production from many of Australia’s established basins, such as the Cooper–Eromanga basin and the North West Shelf, is dominated by aging assets. To arrest this decline, actions must be taken to meet global demand for oil and gas, sustain production and underpin shareholder expectations of a return on their investment. Arresting field decline is a multifaceted problem. A single fix, whether technological or operational, will not maximise production or asset value. Any project to arrest field decline, grow production or (re)develop a field must be considered in its entirety, as an integrated system, by a multidisciplinary team. In addition, and critical to success, the required outcome must be clearly established and committed to by field owners, consultants and staff assigned to the project. This paper demonstrates how using a committed, outcome-focused approach, an integrated project team identified field redevelopment opportunities that significantly increased estimated ultimate recovery in an aging oilfield (that had already produced more than 70–80% of the developed resource) in the Cooper–Eromanga basin, South Australia. Factors critical to success were: (1) a commitment to look at all aspects of the field, from geology and geophysics, through the completion, well and field performance and operational infrastructure to identify development opportunities; (2) an ability to be agile, cycling quickly through the workflow as new information became available; (3) dedicated resources, clear communication and a commitment to integrated work across consultant and staff resources; and (4) management support.
Keywords: agile, development, integration, subsurface, technical limit.
Simon Molyneux is Managing Director and Principal Geoscientist at Molyneux Advisors, an integrated subsurface advisory where he advises clients on development, exploration and data acquisition. He is a geoscientist by background with more than 20 years of experience in senior management in technical positions at Santos, Talisman Energy, Shell, Mobil and BP. Simon has a Masters degree in Earth Sciences from Cambridge University, a PhD in Structural Geology from Durham University and a Graduate Certificate in Strategic Decision and Risk Management from Stanford University. Simon is a Fellow of the Geological Society of London and a member of PESA, SEAPEX, PESGB and the Australian Institute of Company Directors. |
Hong Feng Wu is a Director and Principal Reservoir Engineer at Molyneux Advisors. He has 23 years of technical experience as a Reservoir Engineer gained at Shell, BP and CNOOC. He was Shell's lead reservoir engineer for Prelude and the East Browse basin, Australia and the Champion and Champion West fields in Brunei. His knowledge covers the full range of the gas/oil field life cycle from exploration, field development, well delivery and field management. Hong Feng has a Masters degree in Sedimentology from University of Petroleum China (Beijing) and an MBA from the joint program of Lingnan, Sun Yat-Sen University and MIT Sloan management school. Hong Feng is a member of SPEE and SPE. |
Scott Delaney is Manager Development Western Flank Oil for Beach Energy in Adelaide. His main area of interest is Reservoir Engineering and he holds a BE degree in Chemical Engineering, BFin degree and M Petroleum Engineering all from University of Adelaide. |
Andres Gongora is Staff Development Geologist on the Western flank Oil for Beach Energy in Adelaide. His main interest area of interest is Sequence stratigraphy and he holds a BA degree in Geology from Colombian National University , a MSc of Geology from Curtin University and a MBA from University of Western Australia. |
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