Real Time Artificial Lift Optimization

1. Real Time Artificial Lift Optimization John Donachie Product Champion

2. Content • Considerations on “Real Time” and “Optimization” • Artificial Lift Optimization focus on Service Delivery • Field trial of a new method – Real Time Optimization • The benefits of well and field wide optimization • What Schlumberger offers to help.

3. Real Time Artificial Lift Optimization • “Real Time” and “Artificial Lift Optimization”: • New wells and old wells • High vs Low producers • Best to have a unified approach, in terms of: • Personnel • Equipment and Services

4. Component Services A Schlumberger key service that optimizes artificial lift wells using multiphase flowmetering technology This service encompasses • artificial lift engineering expertise • multiphase well testing equipment and expertise – (real time production measurement) • implementation products and services • artificial lift products and services.

5. Real Time Measurement? • Why is that useful in artificial lift applications? • What are the benefits of multiphase flow metering? • Ultimately, it’s about: • Proving it • Doing it • Making it economically beneficial to do in the first place • Improving the gaps in knowledge between the different services required for artificial lift optimization

6. Virtuous Circle Artificial lift engineering Data acquisition Implementation Analysis Validation Diagnosis OptimizeLift Data acquisition and comparison Artificial lift products and services

7. Field Example: Gas Lift Service Field Trial Well application in Venezuela

8. Gas Lift Service Slickline unit performing flowing gradient survey

9. Gas Lift Service Portable three-phase tester tied to a gas lift well production line

10. Gas Lift Service Control bay interprets real time data

11. Gas Lift Analysis 800 Total fluid Total gas Inside control bay during multi-rate test on gas lift well 700 600 500 Oil and water rate (BOPD) 400 300 200 100 • 0 3 6 9 12 15 Time (hr) Gas and total fluid result

12. Total oil Total water Gas Lift Analysis 800 700 600 500 Oil and water rate (BOPD) 400 300 200 Inside control bay during multi-rate test on gas lift well 100 • 0 3 6 9 12 15 Time (hr) Oil and water result

13. Gas Lift Analysis 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 TVD (ft) Flowing gradient survey provides real valve injection points Stable flow measured by PhaseTester 50 75 100 125 150 175 200 225 250 Temperature (º F) Flowing gradient survey result

14. Gas Lift Diagnosis Operating rate (STB/D) Inside artificial lift engineering office during diagnosis 0.3 0.375 0.45 0.525 0.6 Lift gas injection rate (MMscf/D) Lift gas performance curves

15. Gas Lift Diagnosis 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 TVD (ft) Inside artificial lift engineering office during diagnosis 50 75 100 125 150 175 200 225 250 Temperature (º F) Existing gas injection location

16. Gas Lift Diagnosis 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 TVD (ft) Inside artificial lift engineering office during diagnosis 50 75 100 125 150 175 200 225 250 Temperature (º F) NODAL* production system model match to real well data

17. Gas Lift Diagnosis • Artificial lift equipment selection • Venturi gas lift orifice valve • minimizes injected gas • increases well stability by injecting • subcritical gas into tubing • optimizes use of limited gas supplies • maintains the deepest point of injection.

18. Gas Lift Diagnosis 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 TVD (ft) Inside artificial lift engineering office during diagnosis 50 75 100 125 150 175 200 225 250 Temperature (º F) Modeled location of Venturi gas lift valve

19. Gas Lift Implementation Slickline installation of the Venturi gas lift valve in the deepest mandrel

20. Gas Lift Validation 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 TVD (ft) Inside artificial lift engineering office during validation 50 75 100 125 150 175 200 225 250 Temperature (º F) Gradient survey validates predictions

21. Before After Injected Gas Rate 0.675 MMSCF/d Injected Gas Rate 0.715 MMSCF/d Gas Lift Validation 800 700 600 500 Oil and water rate (BOPD) 400 300 200 Inside artificial lift engineering office during validation 100 0 • 0 1 2 3 Time (hr) Real-time data acquisition validates production increase and stability

22. Added Value • Actual gas lift well application results: • 16% increase in oil production • 6% decrease in injected gas • cost of operation recovered in 20 days Maximizing productivity through: • technology • people • process. Field example of Artificial Lift operation

23. Real Time Optimization Benefits • Real gains can be seen very quickly through • placing a focus on the realities of lift optimization • use of real time data acquisition • Minimize the cycle time for optimum data analysis • Get the solution in place quickly • Extending product knowledge to add value • identify the right path to take the solution further • implementing long term lift optimization

24. Where can it go? • Where have we already been? • Where is it going?

25. All Wells In Field

26. How can we help? People Portal to SLB Intranet Data Management Schlumberger Artificial Lift Reservoir Evaluation PL’s Knowledge Management Reservoir Development PL’s Training - NExT Reservoir Management PL’s Assist with Short Term Staffing Needs Integration Other R&E Access Worldwide

27. Real Time Artificial Lift Optimization John Donachie Product Champion Questions?