Due to increasing demand for the wells work over, cementing jobs are required to perform squeezing existing formation and open new layer for oil and gas production. This field is producing about 7000 bopd by using 4 Rig/Hoist existing to serve 46 jobs per year.
As we need to accelerate oil production to achieve target by the end of year 2011, it’s about 140 old wells will be reactivated. The scenarios to provide the cementing equipments are described below.
- To anticipate additional jobs for 3 unit rigs, one cementing tank is required to perform squeezing well formation.
- Cementing Pump, Mud Agitator and power supply should be available as well without disturbing current 4 Rig/Hoist existing.
Three options are available to support current opportunities.
Development of the outcomes
The Force Field Analysis is developed as per below:
Minimum Acceptable requirements
The criteria of economic selection are:
- The Highest Net Cash Flow and NPV.
- Life Time is predicted for 5 years.
- NPV calculated at 10% Discount.
Develop preferred alternative
Scenario: Invest new cementing unit, is this worth Doing?
Estimated revenue generated as calculated NPV@10% is US$4.927.022 for 5 years operation.
Pay out Time is 3.5 months.
Monitor and Evaluation (Post Mortem)
After the Authorization for Expenditure (AFE) is approved, the following Success Planning is monitored and shall be achieved.
- Spills – zero.
- Industrial Accident / LTI – zero.
- Cost performance – +/- 10% of budget.
- Schedule performance – +/- 10% of milestone dates.
The following action items are a must for achieving the Success Metrics above:
- Good team work & coordination – meet on regular basis, good cross functional participation and good team commitment.
- Follow the project management practices.
- Follow HES procedures and approved standards & codes.
- Utilize VIP’s & Best Practices.
- Involve the right resources (e.g., contract development).
- Peters, Max S & Timmerhaus, Klaus D. (1991), Plant Design and Economics for Chemical Engineers 4th Edition, Singapore: McGraw-Hill, Inc.
- Sullivan, William G., Wicks, Elin M. & Koelling, C. Patrick (1942), Engineering Economy 15th Edition, Singapore: Prentice Hall, Inc.