30% more efficient upstream operations – a dream or reality? - AGR - Well Management | Reservoir Management | Software | Consultancy
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30% more efficient upstream operations – a dream or reality?

30% more efficient upstream operations – a dream or reality?

AGR Expert Opinion: Benefits of software created by the end users meet their requirements and is more efficient
VP Software Solutions, Petter Mathisen, recently wrote a LINKEDIN PULSE opninion entry: 

"Recently, a group of drilling managers and drilling professionals discussed during a regular network meeting whether the urge to increase efficiency of drilling operations and reduce costs is a trend caused only by the lower oil price? Or whether despite the current turndown the industry was already seeking for long term solutions to improve the decision making process and by gaining more qualitative procedures could also enjoy reduction in costs?

One of the aspects of improving performance is to take care of the huge amount of data collected throughout the petroleum asset life cycle. Data is collected by different operational professionals, equipment suppliers, service companies and data managers.

We at AGR Software believe that in order to increase efficiency and optimise drilling operations, standardised approach and recognizable processes are needed for managing growing amount of present and past data.

Filling the gap of available software tools

AGR has been developing upstream software from early 90’s. All of the products were built in-house as a result of necessity to fill the gap of available solutions as no adequate products for risk performance evaluation, cost calculation, materials management and skills transfer were available.

Identified and quantified risk management

AGR’s P1™ is a probabilistic estimation analysis system that applies Monte Carlo simulation techniques to generate a deeper understanding of the risks inherent in well operations.

Whilst probabilistic estimation techniques are used routinely to characterise risks associated with geological and reservoir uncertainty, these techniques have not been routinely applied to drilling.

The application of a risk-weighted probabilistic cost and schedule estimation tool can help provide detailed answers to the three basic questions in managing investment decisions:
  • What is the likelihood of overrunning the budget?
  • What is the level of exposure associated with any overrun that may occur?
  • Where do the individual risks lie that need to be mitigated against in order to avoid overrun?
If the risks can be mitigated, then the level of exposure can be reduced and projects can be delivered with greater budgetary certainty.

As a proof, AGR has a client in its portfolio that was overspending approx 40% above AFE but was able to get control of project costs and then AFE within 4% after implementing P1™.

Paperless Materials Management

AGR’s M2™ was launched at the end of 2012 and is designed to efficiently track the movement of equipment from the moment of purchase and loading, through the supply chain to eventual return. 

M2™ software was recently used on a project in Africa. AGR were contracted to deliver a new exploration well off the south west coast of Bioko Island, Equatorial Guinea. The project presented complex logistical challenges to coordinate equipment supply from 11 countries, and manage import and export.

As a result of mobilised efforts of personnel and the software, the well could be drilled within time and budget.

Creating Bridge between Drilling and G&G professionals

The most recent innovation in AGR’s software portfolio is iQx™. With World Oil and ONS Innovation Award nominations, the product has successfully been implemented as part of regular drilling delivery process with VNG, OMV, Det norske, Lundin and LUKOIL North Sea Shelf.

iQx™ contains public information from over 6000 wells that have been drilled on the Norwegian Continental Shelf. All data has been transferred into readable and exportable data that can be interpreted in other software applications like PETREL. Moreover, the application can be adjusted according to the client’s working processes and integrated with other well reporting systems.

VNG Norge applies iQx™ as part of their daily drilling reporting system to save the Operator drilling team’s time and resources.

After installing iQx™, VNG have managed to focus time of their engineers on engineering instead of manual and time consuming data gathering and processing. The Operator has seen that working in such a way has increased the quality of its offset analyses giving the team a better platform for decision-making.

iQx™ is also used for applications in licensing rounds, making sure VNG organisation applies in areas where the Operator believes they can perform well and show the authorities that they fully understand the technical challenges in the areas they apply for.

Changing the Mindset

In current market situation with low oil price, cost efficient technology solutions and increased positive performance are the key areas global oil companies are focusing on. Applying software portfolio applicable throughout the asset life can reduce costs on exploration wells up to 4% meaning savings to an operator up to USD 3.4 mio on a well. This largely due to improved feasibility and planning phase; enhanced understanding of risks and probabilistic outcome of costs.

Additionally, engineers working on focused assignments and not wasting time on data management, produce more qualitative decisions. Better decisions lead to safer operations where the companies can ultimately ensure a safe working environment for its people and the environment around. By utilising best practices and lessons learned from historic operations help avoid incidents and make our industry deliver continuous success projects."

To contact Petter Mathisen, please click here.

More information on our software products can be found at www.software.agr.com