Planning in Oil and Gas Fields

WHERE
WHAT-IF
Pl
Pr ann
oc i n
es g
s
WHEN
Planning
WHO
in
WHAT
HOW
Oil & Gas Field

WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
WHERE
HOW
Planning defines the activities and describes how the

activities will be accomplished. The purpose of
plan is to define each task, estimate the time and
resources required, and provide a framework for
management review and control.
WHEN
Without a plan, success will be difficult.
WHO
Pl
Pr ann
oc i n
es g
s
PLANNING IS THE SEED FOR SUCCESS
WHAT
Planning is an iteration process
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
Pl
Pr ann
oc i n
es g
s
WHAT
HOW
WHO
WHEN
WHAT-IF
WHEN
WHERE
WHAT-IF
WHERE
WHO
HOW
Scope: of any project is a combination of all individual tasks and their goals.
Activity They are a division of all the work that needs to be completed in
order to accomplish the project goals.
Resource is something that lies ready for use or that can be drawn upon for
aid or to take care of a need. Can be people, equipment, materials or services
that are needed to complete various tasks. The amount of resources affects
the scope and time of any project.
Risk is any factor that potentially can jeopardize the successful completion
of a project.
Risk Management is the art and science of identifying, analyzing, and
responding to risk factors throughout the life of a project.
Work Breakdown Structure is a division of tasks that define, organize, and
display the work to be accomplished to achieve the specified product or
services.
WHAT
Pl
Pr ann
oc i n
es g
s
Terminology
WHAT
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
HOW
WHO
WHEN
WHERE
WHAT-IF
Plan Triangle
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
Pl
Pr ann
oc i n
es g
s
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
Pl
Pr ann
oc i n
es g
s
The relationship options are illustrated

here:
SS
FF
FS
SF
- start / start
- finish / finish
- finish / start
- start / finish
WHAT-IF
SS Start / Start
(NOTE: Delays/overlaps between finish/start

are possible)
WHERE
WHO
It is possible (and in some instances

mandatory) to setup relationships for the
planned Activity
EXAMPLE
A typical example of a Start / Start
relationship would where work needs to
be carried out on an offshore platform at
sea level by boat. Rather than complete
each task step sequentially, returning to
shore each instance to pick up necessary
resources, it would more beneficial carry
out all task steps at the same time in a
single trip a start/start relationship.
WHEN
Pl
Pr ann
oc i n
es g
s
Relationships
0010 Task
Step
Step
FS Finish / Start
0010 Task
Step
0020 T.
St
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
If no relationships are set the system

assumes all activity will be start in start day
of the project
HOW
0020 Task
WHEN
WHO
HOW
WHAT
WHAT (Objective, scope, and statement of work)

HOW (Approach, work breakdown structures)
WHO (Project organization and resource schedule)
WHEN (Schedule and milestones)
WHERE (Facilities required)
WHAT-IF (Contingency Plans is the event of Risk
Events)
WHERE
WHAT-IF
Pl
Pr ann
oc i n
es g
s
The Planning Process
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
Government
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
Plan for Exploration Concession
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
West Tawila Concession
Geisum & Tawila

Fields
Only one exploration dry well"

drilled by Shell in 1988
WHEN
West Tawila Lease
West Tawila is juxtaposed to Picos

Tawila field to the west, Gemsa SE to
the north and close to south Geisum.
Detailed review of the West Tawila

block was done in house.
Bids due on 1st December 2009

WHAT
WHO
Area C (88 km) located in the

southern Gulf of Suez
HOW
WHERE
Gemsa SE Field
WHAT-IF
Pl
Pr ann
oc i n
es g
s
EGPC Exploration Bid Round
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
WHERE
Pl
Pr ann
oc i n
es g
s
Exploration Objectives
WHEN
Reserves
WHAT
Company Weight
HOW
WHO
Profit
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
Pl
Pr ann
oc i n
es g
s
Exploration Scope of Work
WHERE
Health Safety
WHEN
& Environment
WHO
Sub-Surface Studies
Evaluation
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
HOW
Drilling & Logs
WHAT-IF
Pl
Pr ann
oc i n
es g
s
Health Safety & Environment
WHEN
WHERE
Environment Impact
Assessment
Available Location
HOW
WHO
For Facilities
WHAT
Risk Assessment
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
WHERE
Review
Seismic Acquisition
WHEN
Seismic Processing
Seismic Mapping
G&G Mapping
Assign Location &
Well Proposal
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
HOW
WHO
Seismic Interpretation
WHAT
Pl
Pr ann
oc i n
es g
s
Sub-Surface Studies
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
Pl
Pr ann
oc i n
es g
s
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
Pl
Pr ann
oc i n
es g
s
WHAT-IF
WHERE
Obtain Approvals
WHEN
Secure Drilling material
HOW
WHO
Hiring a Rig
Execution
Reserves Evaluation
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
Pl
Pr ann
oc i n
es g
s
Drilling & Logs
WHAT
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
HOW
WHO
WHAT-IF
Drilling & Logs
WHEN
WHERE
WHAT-IF
WHAT
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
HOW
WHO
WHAT-IF
Drilling & Logs
WHEN
WHERE
WHAT-IF
WHAT-IF
WHERE
WHAT
HOW
WHO
Now that we have found a promising geological structure and

acquired the petroleum rights, it is time to go ahead and drill.
Regardless of all the sophisticated geological and geophysical
mapping that has been done, the only way to find out if there is
any oil or gas present underground is to drill a well.
WHEN
Pl
Pr ann
oc i n
es g
s
Drilling & Logs
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
WHERE
Pl
Pr ann
oc i n
es g
s
Drilling & Logs
Wildcat Well
WHAT
HOW
WHO
WHEN
WHAT
HOW
WHO
WHEN
Wildcat Well: well that drilled into a geologic

structure in which no oil or gas has yet been
discovered.
The objective of drilling is to bore a hole (the
well bore) into the ground until you penetrate
a target rock formation, that has been
identified by the geologists and geophysicists
as having the potential to contain commercial
hydrocarbons.
Formations may contain fluids (oil, water or
natural gas) at very high pressures, without
taking the appropriate precautions, the fluids
would come out of the hole and we'd have
what's called a blowout.
WHERE
WHAT-IF
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
Drilling & Logs
Well Control by Blowout Preventer

WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
After drilling only one well (the discovery well), Seismic data is very
helpful in mapping the size of the underground structure, but the only way
to be certain of what parts of the structure contain oil is to drill
delineation or step-out wells. Each new well added more information
about the field. This information was then used in planning the location of
the next delineation well until finally there were enough wells to show the
limits of the field.
After a field has been discovered, it must be developed so that it can be

put on production and generate some cash. Developing a field involves
the drilling of additional wells to the geologic structure and installing
production equipment throughout the field to facilitate commercial
production of the oil or gas. The production phase essentially involves
getting the oil and/or gas out of the ground, treating the fluids to remove
impurities, and taking whatever steps are necessary to keep the wells
producing at a profitable rate for as long as possible.
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHERE
WHEN
For in between the exploration phase and the development phase there is
quite often one other phase: the delineation phase.
WHO
HOW
How Big is our Oil or Gas Field?
WHAT
Pl
Pr ann
oc i n
es g
s
Reserves Evaluation
WHAT
WHAT
HOW
WHO
WHEN
XXXX
HOW
WHO
WHERE
Pl
Pr ann
oc i n
es g
s
WHAT-IF
PLAN
WHEN
WHERE
WHAT-IF
WHAT-IF
The development plan can be generated Based on:
WHERE
Pl
Pr ann
oc i n
es g
s
Development Phase
WHEN
Volumes
WHO
P1, P2 and P3
Reservoir Characteristics
HOW
Porosity, Permeability and Pressure
Composition, Density (API) and Viscosity

WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
Fluid Characteristics
WHAT-IF
WHERE
WHAT
Proven reserves (P1) - defined as oil and gas "Reasonably Certain" to be

producible using current technology at current prices, with current commercial
terms and government consent- also known in the industry as 1P.
Probable reserves (P2) - defined as oil and gas "Reasonably Probable" of
being produced using current or likely technology at current prices, with
current commercial terms and government consent - This is also known in the
industry as 2P or Proven plus probable.
Possible reserves (P3) - Possible reserves are those unproved reserves
which analysis of geological and engineering data suggests are less likely to
be recoverable than probable reserves. This is also known in the industry as
3P or Proven plus probable plus possible.
WHEN
WHO
Oil reserves are primarily a measure of geological risk - of the probability of oil
existing and being producible under current economic conditions using
current technology. The three categories of reserves generally used are
proven, probable, and possible reserves.
HOW
Pl
Pr ann
oc i n
es g
s
Definition of Reserves
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
HOW
WHO
WHAT-IF
Drilling Plan
WHEN
WHERE
WHAT-IF
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
Actual Production vs Drilling Cost
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
Oil Production Forecast
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
Gas Production Forecast
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT-IF
inlet
well head
&
gathering
system
WHEN
separator
system
condensate
stabilization
system
WHERE
Pl
Pr ann
oc i n
es g
s
Facilities
WHAT
HOW
WHO
export pump
WHEN
WHERE
to MELIHA
WHAT-IF
WHAT
HOW
WHO
storage
H2O vapor
gas
dehy.
separator
2 nd.
f/coal.
stab.
to MELEHA
stor.
HOW
WHO
w.deg.
WHEN
inlet
well head
&
gathering
system
WHAT-IF
gas
sweet.
WHERE
Pl
Pr ann
oc i n
es g
s
co2
to EPC
WHAT
WHAT
to inj.well
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
HOW
WHO
WHAT-IF
Facilities Plan
WHEN
WHERE
WHAT-IF
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
Facilities and Drilling Relationship
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
HOW
WHO
WHAT-IF
Economics
WHEN
WHERE
WHAT-IF
Cash
flow
at each
period
($)
WHAT-IF
P = present value
positive
F = future value
0 1 2
4 .
Time
period
i = interest rate
n = number of periods
negative
WHAT
HOW
WHO
WHEN
WHERE
WHAT
How long is
a time period?
WHO
We will use common

symbols and cash
flow diagrams.
WHEN
WHERE
THE TIME VALUE OF MONEY
HOW
Pl
Pr ann
oc i n
es g
s
Economics
Examples?
WHAT-IF
WHAT-IF
WHERE
Pl
Pr ann
oc i n
es g
s
Economics
WHAT
HOW
WHO
WHEN
Cash Flow Diagram
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
WHAT
HOW
WHO
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
HOW
WHO
WHAT-IF
Economics
WHEN
WHERE
WHAT-IF
WHAT-IF
WHEN
WHERE
Pl
Pr ann
oc i n
es g
s
Economics
WHAT
HOW
WHO
Present Value of $ 25,000

received in 2010 is equivalent to
$ 10,000 received in 2000
(because it could be invested for
10 years)
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
0 1 2 .
Meaning of compound?
How was this determined?
F = P ( 1 + i )n
What is the future value of

$1000 after 10 years at
10% annual compound
interest?
WHAT
HOW
WHO
WHEN
WHAT
What is the meaning

of n, i, P and F?
WHERE
WHAT-IF
WHEN
Determine the relationships between P and F

for n time periods, with compound interest
WHO
THE TIME VALUE OF MONEY
HOW
Pl
Pr ann
oc i n
es g
s
Economics
WHERE
WHAT-IF
WHAT-IF
WHERE
Pl
Pr ann
oc i n
es g
s
Economics
WHAT
HOW
WHO
WHEN
Cash Flow Diagram
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
ROI (Return on Investment)

= Cum. Income/Total Investment
NPV
The capital created over and above the
interest rate.
WHAT
HOW
WHO
WHEN
WHERE
WHERE
WHAT-IF
WHO
The time lapse from the initial expenditure

until its cumulative net cash flow become
positive.
WHEN
Payback time
WHAT-IF
HOW
WHAT
Pl
Pr ann
oc i n
es g
s
Economics Indicators
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
WHAT
HOW
WHO
WHEN
WHERE
WHAT-IF
Pl
Pr ann
oc i n
es g
s

Planning in Oil and Gas Fields

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Planning in Oil and Gas Fields

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What are the main components of project planning discussed in the document?

What are the main components of project planning discussed in the document?

What are some of the key terminology used in project planning?

What are some of the key terminology used in project planning?

WHERE

Oil & Gas Field

Planning defines the activities and describes how the

Without a plan, success will be difficult.

PLANNING IS THE SEED FOR SUCCESS

Planning is an iteration process

The relationship options are illustrated

(NOTE: Delays/overlaps between finish/start

It is possible (and in some instances

If no relationships are set the system

WHAT (Objective, scope, and statement of work)

The Planning Process

Plan for Exploration Concession

West Tawila Concession

Geisum & Tawila

Only one exploration dry well"

West Tawila Lease

West Tawila is juxtaposed to Picos

Detailed review of the West Tawila

Bids due on 1st December 2009

Area C (88 km) located in the

EGPC Exploration Bid Round

Exploration Scope of Work

Drilling & Logs

Health Safety & Environment

Secure Drilling material

Drilling & Logs

Drilling & Logs

Drilling & Logs

Now that we have found a promising geological structure and

Drilling & Logs

Drilling & Logs

Wildcat Well: well that drilled into a geologic

Drilling & Logs

Well Control by Blowout Preventer

After a field has been discovered, it must be developed so that it can be

How Big is our Oil or Gas Field?

The development plan can be generated Based on:

Porosity, Permeability and Pressure

Composition, Density (API) and Viscosity

Proven reserves (P1) - defined as oil and gas "Reasonably Certain" to be

Actual Production vs Drilling Cost

Oil Production Forecast

Gas Production Forecast

Facilities and Drilling Relationship

We will use common

THE TIME VALUE OF MONEY

Cash Flow Diagram

Present Value of $ 25,000

What is the future value of

What is the meaning

Determine the relationships between P and F

THE TIME VALUE OF MONEY

Cash Flow Diagram

ROI (Return on Investment)