WIRELINE ISSUE 27 SPRING 2014

NEWS ROUND-UP PIL T FOR M

OPERATIONS

Discoveries are alsogenerally smaller and moreexpensive toexploit; production efficiencyhas declined from an average of 80per cent in2004 to60per cent by 2012; and the challengeofmaintaining existing infrastructure andencouraging investment innew infrastructure continues. To address these areas andhelp secure the long-termhealthof theUKoffshoreoil andgas sector,PILOT, thegovernment- industry forum, isworkingon anumberof major initiatives.These are consistentwith Sir IanWood’s recommendations fromhis independent reviewof theUKCSwhich has implications for the industry’s future direction (seep25 formoreon the ‘WoodReview’ and seebox-out overleaf formore informationonPILOT). Sizingup the explorationchallenge InOctober2012, thePILOTExploration TaskForce (ETF)was established to examinehow to increase thenumberof explorationwells drilled and improve the commercial success rateof such activity. Key to achieving thesegoals is to ensure that the industryhas agreater understandingof thebasin and its subsurfacegeology.The task force is therefore assessing the level of current knowledgeof thebasin and is also investigating thepotential for advanced seismic acquisition technology to improve results.Other factors thatwill encourage exploration success include increased drilling rig availability andenabling smaller companies to secureequity capital. NickFretwell, geosciencedirector at TOTALE&PUKwhoheads up theETF, explains: “There is anurgent need for the industry todiscover additional reserves as some infrastructure is reaching theendof its economic life and if decommissioned could leaveprospectiveexploration areas stranded andundeveloped.The industryneeds to share its knowledge to move forwardquickly todrill themost promisingprospects and capitaliseon the infrastructurenetworks that are currently still inplace.” TheETF is driving anumberof initiatives, which include the recentPitfalls of Exploration conferenceon4February in London (seep6 formoredetails).Another project underdevelopment is the21st CenturyExplorationRoadMap, adigitally updatableversionof theMillenniumAtlas, amajor atlas of thepetroleumgeology of theUKCS.The aimof the roadmap is topromote theUKCS tonew and

“There is an urgent need for the industry to discover additional reserves as some infrastructure is reaching the end of its economic life and if decommissioned could leave prospective exploration areas stranded and undeveloped.”

management andexecution. Industry will sharebest practice in this area. Another group is investigatinghow to improve ‘wrench time’ (ameasureof offshoreemployeeefficiency) across the industry, by reducingunplanned compressoroutages and coordinating plannedmaintenance schedules across assetswith shared infrastructure.And anotherworkstream is reviewingotheroil andgas basins and industries for areas of transferablebest practice. Jim says: “SinceMay2013, thePETF has gained considerable traction from supportingmembers, aswell as recognition from thebroader industry. While a serious challengeexists, there are distinct opportunities for improvement. With renewed commitment from industry andgovernment, thePETF is focused ondriving improvements inoverall performance.” Enhancingoil recovery Muchof theUKCS’ remainingpotential lies inexistingoil andgas producing fields (brownfields).The challenge is to increase the recovery rate from such fields, which is typically running at around 46per cent inoil fields.The industry’s ability to increaseproduction from brownfields using state-of-the-art technology is therefore critical. PILOT’sEOR (enhancedoil recovery) WorkGroup is investigating thepotential

existingplayers and improvegeological understanding,with a focus onnewplays inunexplored areas andneglectedplays in explored areas.

Pushing forwardon productionefficiency

Productionefficiency is apercentage measureof anasset’s actual production comparedwith itsmaximumcapability. TheProductionEfficiencyTaskForce (PETF), chairedby JimHouse, regional vicepresident andmanagingdirectorof ApacheNorthSea, is takingon thePILOT challengeofbringingproductionefficiency backup from60percent to80percent by2016. Over the last sixmonths, the task forcehas carriedout root cause analysis of themain factors impactingproductionefficiency. ThePETF is now targeting the50 asset clusters in all regions of theUKCSwhich contribute80per cent of production, addressing thekeymechanisms that will help realise the assets’ potential and ensuring that adequate investment levels arebeingdirected towards achieving a step change inproduction. All stakeholders responsible foroperations across theUKCSwill need to take responsibility for anumberof key actions forwhichPETFhas set specificobjectives. Oneworkstream is addressingplanned shutdowns topromotemoreefficient

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