Gas-Lift Automation Breakout Session

1. Gas-Lift AutomationBreakout Session Summary of Discussion Facilitated by Cleon Dunham Oilfield AutomationConsulting

2. Gas-Lift Automation Breakout SessionPanel of Experts • Panel • AppSmiths Dwayne Vetter • eProduction SolutionsGreg Stephenson • PetrobrasEdson Henrique Bolonhini 2005 Spring Gas-Lift Workshop

3. Gas-Lift Automation Breakout SessionAutomation Outlook • Allagreethatautomation outlook is positive • But, what is definition of automation? • Monitoring • Monitoring and control • These plus optimization • These plus more – e.g. information exchange • How can automation be justified? • Detailed studies • Believe benefits from previous installations • Difficult to convince some managers • Maybe difficult to justify for old fields • Guidelines needed! 2005 Spring Gas-Lift Workshop

4. Gas-Lift Automation Breakout SessionAutomation Outlook • Where automation is easily justified • Many wells to be operated • Need to improve operation – keep it running • Special challenges – e.g. deep water 2005 Spring Gas-Lift Workshop

5. Gas-Lift Automation Breakout SessionBarriers / Challenges • People • Training, Empowerment • Technology uptake • Applies to all staff – managers, engineers, operators • Technology • Technology is available • Often out pacing people’s understanding / use • But more technology is needed for automatic control • Acceptance • Issue in “new” Petrobras companies, e.g. Venezuela 2005 Spring Gas-Lift Workshop

6. Gas-Lift Automation Breakout SessionDetailed Notes Taken by Flavia Correiro • Full vs. partial automation. • Monitoring, controlling, and integration. • What level/degree of automation is necessary to work better? • Operators aren’t trained to work automated systems. • The answer is, “the best system is that which has worked for a majority of people.” • Experience of staff is important. • The goal is to be profitable as much as possible. • If possible, decrease the CAPEX using automation, mainly when there is a large number of wells. • Costs before and after automation must be studied. • How can the gains be measured when some parts are automated and some are not? • Best practices: people from different companies coming & learning together. 2005 Spring Gas-Lift Workshop

7. Gas-Lift Automation Breakout SessionDetailed Notes Taken by Flavia Correiro • A project has been performed to how people in the field analyze their wells. • Automation (2 classes). (1) Optimization, increased production, or (2) operational use to unload wells, minimize downtime. • It is possible to only optimize gas-lift monitoring. • We need to use monitoring, and after that analysis. • We have to use the right equipment. • If you use one person per well to provide manual monitoring, the boss will why automation is not being used. • The main object is to “keep it running!” After that, “keep it running the best way.” • Personnel training is important. • Standards and guidelines for analysis of automated wells are needed. • Need to use as much information as possible to increase production. 2005 Spring Gas-Lift Workshop

8. Gas-Lift Automation Breakout SessionDetailed Notes Taken by Flavia Correiro • Resistance in the organization – management, operations – must be broken. • Cost of production and losses --- automation is a tool, maintain control of the process is the objective. • The first step is to convince managements of the benefits. • Commitment and prediction of failures is the best thing, not only a management crisis. • It may be difficult to justify automation in old fields. • It is necessary to obtain information that gives the real situation base design of the automation system on this information. • Do it step by step. 2005 Spring Gas-Lift Workshop