Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm...

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Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft
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Page 1: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Enabling Integration of Core Work Processes in Upstream

Oil and Gas 

Kaare Finbak & Pål Rylandsholm

Det Norske Veritas,

Ray Verhoeff, OSIsoft

Page 2: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 2

Topics Covered

• Integrated Information Platform (IIP) project– Background

• The new operation concept Integrated Operations (IO)

• OLF’s strategy for Quality Information

– Purpose and deliverables

• Objectives

• Deliverables

– Take-up process

• OLF’s Daily Production Reporting project

• OSIsoft RtPM for Production Data Exchange in Upstream Oil & Gas

OLF = Norwegian Oil Industry Association

Page 3: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 3

DNV - Det Norske Veritas • Independent foundation

• Objective: To “Safeguard life, property, and the environment”

• Established in 1864 in Norway

• Top 3 certification body world-wide

• Top 4 ship classification society world-wide

• Global representation

• 6095 employees

Page 4: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 4

DNV – Information Quality Management• Business Information Services

– Requirements– Governance– Architecture

• Information Quality Assessment and Rating • Information Training and Education

– Standards

• Information Models & Data Standards• Test Center

– Compliance to Standards (Software)– Validation according to Standards (Data)

• Independent Data and Information Hosting

Managing risk by managing information

Page 5: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 5

Bergen

Trondheim

Aberdeen Control room

Expertcenter

Expert center

Stavanger

Operator’s onshore

operation centre

Vendor’s onshore operation

centre

Fiber

cab

le

Real time data

Expertcenter

According to OLF, IO increases revenue and reduces costs

Source: OLF, 2005

Page 6: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 6

OLF predicts that IO will be implemented in two main steps

Traditional facilities

Reservoir & production

management

Drilling & completion

Operation & maintenance

Real-timecollaboration

rooms

Vendor

Automaticoptimization

Intelligent facilities Real-time

pipeline

Operator

IO Generation 2• Integrated operation centers

of operators and vendors• Heavily instrumented

facilities• Heavy automation and multi-

domain optimization of processes

IO Generation 1• Integrated onshore and

offshore centers• Intra-domain optimization

of work processes

Vendor

Source: OLF, 2005

Page 7: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 7

OLF intends to establish an information pipeline that supports both IO generations

Vendor

Vendor

Semanticoil & gas web

Field data• Health, safety,

environment• Drilling &

completion• Reservoir &

production management

• Operation & maintenance

Schemas for automaticexchange of data

Automatic optimization

Operator

Web portalsProcesses

Web services

TerminologyTaxonomyOntology

Source: OLF, 2005

Page 8: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 8

Terminology, taxonomy and ontology?

Drilling Completion Reservoir Production Operation MaintenanceHSE

Well monitoring

Production monitoring

Reservoir monitoring

Reservoir & production optimization

XML

Terminologies

Taxonomies

Ontologies

Services

Project

Page 9: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 9

The IIP project delivers required terminologies, taxonomies and ontologies

Traditional facilities

Real-timecollaboration

rooms

Automaticoptimization

Intelligent facilities Oil & gas

ontology

Generation 1• Terminologies for single domains• The basis for XML schemas for

automatic transferal of data between applications in same domain

Generation 2• Complete ontologies

supporting automated reasoning or inference of data using logical rules

• Taxonomies for multiple domains

Page 10: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 10

Develops terminologies based on solid business knowledge

– Input from project participants

– Other projects specifications

– Domain specific standardsPrepares approval of the terminologies by international standardization bodies

– ISO and W3C

– POSC Caesar and POSCAddresses short term …

– Terminologies and XML schemas for real-time exchange of data

… as well as long term business needs

– Taxonomy and ontology supporting optimization of processes across domains

Equipment

Reservoir characterization

Drilling

Production

Condition monitoring

Safety and Automation

System

Geometry and topology

The project targets key business domains

Page 11: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 11

Deliverables will be available on the Internet

Publicly available from www.posccaesar.com during Q2 2006

Page 12: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 12

Visualization

Definition

Terms

http://ht.vestforsk.no/demo/production/index.html

Page 13: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 13

The project is supported by many key players

Page 14: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 14

Project schedule and budget

Total current budget:

24 MNOK (3 MEUR)

Project Duration:

16.06.04 – 30.06.07

The project is partly funded by The Norwegian Research Council program PETROMAX and by the

project participants.

Page 15: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

OLF’s Daily Production Reporting project

One of several fast-track take-up projects initiated by OLF

Page 16: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 16

Daily Production Report- Project details

• Scope: Develop ontology and common XML schemas for daily production report

• Participants: All major operating companies on the Norwegian Continental Shelf

• IIP contribution: Terminology and standard XML

• Pilots: Åsgard and Valhall

• Implementation: Started January 1, 2006

Source: OLF, 2005

Page 17: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 17

Operator LicenseWeb Authorities, operator & partners

License Web

XMLfile

Excel reportsStd. reportsNon-std. reports

Prod. report

ValhallÅsgard

Internalprod.data

system

XMLfile

ISO15926

• Benefits: Efficient exchange of production data and daily production reporting

Daily Production Report - System overview

Source: OLF, 2005

Page 18: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 18

A Daily Production Report

XML based on standard XSD

Standard reportSource: OLF, 2005

Page 19: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 19

OSIsoft RtPM And The IIP Project

Reliable real-time information pipeline supporting G1 and G2 integrated operations

Provides terminologies, taxonomies and ontologies to be used for real-time optimization of reservoir and production for heavily instrumented oil and gas fields

Provides framework for collecting, structuring, storing and analyzing real-time field data from heavily instrumented oil and gas fields

May enable

Page 20: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 20

OSIsoft RtPM in Upstream

• About the upstream business…

• Problems & Solutions

• Exchanging data

• The ProdML Initiative

Page 21: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 21

Priorities in Upstream

• Cambridge Energy Research Associates (CERA) polled leading E&P firms in 2006:– “Total Asset Awareness”

• better sensor technology

• better in-field communication systems

• advanced data mgmt solutions

– Visualization & Analytics• automated model updating

• improved visualization

• system-wide optimization (both surface and subsurface)

Page 22: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 22

OSIsoft in Production & Refining

• 37% of the world’s refined products are monitored by PI

• Installed in 26% of the world’s refineries

• 15% -20% of the world’s oil fields are monitored by PI

Page 23: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 23

OSIsoft RtPM in Upstream

• Green field, brown field, offshore

• Production is a complex business…

– Few free flowing wells

– Most done by injection of steam or gas

Page 24: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 24

Compressor 2

Compressor 3

Compressor 1

Separator

Wing & Master Valve

Controller or Casing Choke Flowline Choke

Valve

Choke

Measurement #Perforations

Tubing

Casing

Injection Production

To Well

From Well

From Well

To Well

2

34

5

1

11

12

13

1514

10

16

21

20

22

24

23

25 2726

Gas Header

Production Header

Gas Lift Valve

Packer

1

Gas Lift Well

Page 25: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 25

Upstream Data Management Problems

• Frequently changing flow network configurations

• Hard-to-measure data– “3 phase” flow meters rare

• Data reconciliation and estimation needed• Back-allocation• Optimization• Reporting must be accurate

Page 26: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 26

Interaction of Applications

• “Chaining” of applications needed in the field

– Measured data feeds estimated algorithms

– Estimated feeds enter back-allocation algorithm

– Allocated data fed to modeling software

– Modeling software drives optimization

– …

Page 27: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 27

Solutions abound

• Many vendors offer analytical solutions

• Data exists, but from a variety of sources

• This suggests a data exchange standard!

Page 28: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 28

Full Production Facility

Page 29: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 29

Rendering in XML<unit>

<name>A</name>

<flow>

<name>…</name>

<kind> … </kind>

<port>

<direction>inlet</direction>

<temp> … </temp>

<pres> … </pres>

<product>

<period>

<kind> … </kind>

<dTimStart> etc.

<volume></volume>

</period>

</product>

</port>

</flow>

</unit>

Page 30: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 30

“Foundation”

• Foundation is…– A flexible enterprise asset model– Relationships between the assets:

• Hierarchical

• Flow network

• Not just one relationship– Access to:

• PI data

• Relational and web service data

Page 31: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 31

ProdML

Page 32: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 32

ProdML Members

• Oil Companies

– BP, Chevron, ExxonMobil, Shell, Statoil

• Software Companies

– Halliburton, Invensys, OSIsoft, Petroleum Experts, Schlumberger, Sense Intellifield, TietoEnator, Weatherford

• Standards Organization

– Petroleum Open Standards Consortium (POSC)

Page 33: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 33

Sources

• Wellhead Information Transfer Standard Markup Language (WITSML)

• W3C

• ISO 15926

• OPC UA

Page 34: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 34

ProdML Use Cases: The Flows

• Flow #1– Optimal allocation of lift gas, current time only

• Flow #2– Evaluate model, compare with actual

performance, notify if different, current time only

• Flow #3– Similar to Flow #2, but use historical data

Page 35: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 35

ProdML Flow #2

Data Acquisition

& Control system

Data Validator

Applications to derive

well oil, gas, water flows

Applications to predict

performance

Model Validator

Advisory Tools

OrchestrationTools

Inform staffand track actions

Data Acquisition

& Control system

Data Validator

Applications to derive

well oil, gas, water flows

Applications to predict

performance

Model Validator

Advisory Tools

OrchestrationTools

Inform staffand track actions

Page 36: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 36

OSIsoft Implementation of ProdML

FoundationSDK

Foundation AssetDatabase

ProdMLNetworkModelWeb

Services

Model InModel Out

FoundationSDK

PIData

Reference

PI Archive

Data InData Out

ProdMLDataWeb

Services

Page 37: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 37

Summary

• Data flows in upstream production management are complex

• Many vendors contribute to solution

• Standards-based data exchange makes collaboration possible

• OSIsoft RtPM is the infrastructure for ProdML support

Page 38: Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 38

.. the end