Development Plan…

Development Plan of “SUGI” Field

By Sugiyanto


Executive Summary:

The “SUGI” Reservoir is an oil reservoir that is originated as limestone formation found in depth of 6,000 – 6,350 ft TVD. The reservoir has total bulk volume in the hydrocarbon area of 8.2×109 ft3, with average porosity of about 21.4%, average horizontal permeability 30 mD, average vertical permeability of about 23 mD, and average water saturation of 31.3%. It is a type of solution gas drive reservoir with water oil contact at 6,350 ft and initial reservoir pressure 2,616.7 psi (at datum of 6,000 ft). Total estimated oil in-place of this reservoir is 125.58 MMSTB, while its solution gas in-place is 103.54 BCF.

Based on development plan selection, the best strategy to develop “SUGI” Field is by drilling 4 horizontal wells and 1 vertical well and also supported by 3 water injectors. Drilling should be started in the end of 2013 to achieve target on-stream in January 2014.

The production network system of “SUGI” field has been built by constructing a central processing plant in the western part of the field, which is also located nearby the cluster system of wells in that western part. Based on tubing size optimization, recommended size of tubing of vertical well is 2-7/8” while for horizontal wells is 3.5” tubing. Pipeline that is recommended to be used in the facility is also ranging from 4” to 12.75” of pipeline.

Based on result of combined reservoir – network simulation, it seems that the development strategy of “SUGI” Field is already consistent with capability of production network in such that the back pressure resulted from network is negligible. It is proved by small differences between pure reservoir simulation and combined reservoir – network simulation which is only about 0.52 MMSTB of oil. That small difference is coming from VW1 and HW3. Therefore, further analysis of applying additional artificial lift (i.e. gas lift or ESP) is recommended to be studied.

Total capital expenditure (CAPEX) for whole project (2013 – 2023) is estimated to be 213 MM$. Total operating expenditure (OPEX) is estimated to be around 589 MM$. With total cumulative oil production of about 54.7 MMBO and cumulative gas of about 42.9 BCF at oil price of 80 $/bbl and gas price of 5 $/MSCF, this project will gives total gross revenue of 4,588 MM$ with government take of 3,467 MM$ (76%), contractor take of 318 MM$ (7%), and cost recovery of 802 MM$ (17%). Internal rate of return is estimated to be 37.7%, with net present value (NPV) of about 108.9 MM$ at discounted rate 15%. Considering that economic evaluation, this development project is highly recommended to be executed.


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