The value calculation for a new digital and innovative technology is often requested by the executive management to justify the cost required for the implementation and maintenance of the technology. The value is normally segregated into a tangible and intangible value that correspond to a quantitative and qualitative description of those value elements. As part of the Digital Oilfield (DOF) assessment, the solution value has been defined using two approaches. Firstly, qualitative value is described using a "FEATURE_BENEFIT_VALUE" model. The qualitative value elements have been grouped to align with the company strategic pillars to achieve its vision. Secondly, the quantitative value has been estimated using an NPV model. It estimates the value of the complete digital solution (combined investment for all domains) being proposed for the Asset. The model estimates the net present value (NPV) of the expected Asset investment in digital enablement and digital capability as defined in the assessment report. Net cash flow graphs are also calculated. The approach used is to calculate an NPV for a GO-NOGO decision. Therefore, a conservative estimate of NPV is made with the mind-set that if even being conservative, the NPV clears the company's hurdle rate for such projects, then the decision to invest is undertaken. Sensitivity analysis has been performed using conservative estimates of production gain enabled by digital and conservative oil prices. The paper will detail out the approach for the value quantification of a DOF solution that will also correspond to the industry guidance. Example on how the value is calculated will also be outlined.

A new integrated growth strategy of an oil & gas company is focusing on maximizing the value of reserves and production in order to meet the value proposition of the highest possible return to the company. The strategy is built on the strategic foundation of the company of People, Performance, Profitability and Efficiency. From a business performance perspective, the strategy will bear fruit through increased production capacity, improved operational and cost efficiencies, re-energizing mature fields and uncovering new resources whilst maintaining safety and asset integrity. The objective of this global level exercise aims to assess and evaluate various Digital Oilfield (DOF) practices and initiatives against industry best practices, to perform a landscape assessment of the upstream assets, to review the asset digital gap, to develop a strategic framework and roadmap ensuring that the company strategic pillars are supported across all relevant aspects, by closing the digital gap between current and future states. The assessment scope covers the following domains: Reservoir management Production optimisation Operation management & integrity Engineering & projects Drilling Efficiency Logistics & Planning The landscape assessment and gap analysis consist of several stages that starts from documenting the information received from the assets capturing their current business practices and processes, analyzing the "as-is" condition, designing the future state, assessing the impact to the specific assets, define the benefits and value and creating a 5-year business roadmap. Aligned with the company DOF strategy, understanding the asset digital gap and enhancing the asset digital maturity will improve: HSE and asset integrity by reducing hazard exposure, optimizing energy usage and improving wells and facilities integrity Collaboration and faster analysis leading to timely decision making Integrated operations by optimized drilling planning, operations, optimized production forecasting and integrated planning Optimum Reservoir Management through enhanced reservoir surveillance and recovery

Integrated Operations (IO) was indentified as part of the redevelopment program in Samarang field. The IO framework defined was focusing on Asset Management Decision Support through increasing levels of monitoring and surveillance; fast, medium and slow loop diagnosis, transformation of operations, and optimization of asset values.The aim of Samarang IO is to achieve the followings: Effective and efficient working environment through streamlined and automated workflows  Quality information acquisition and dissemination across the organization  Collaborative expertise across multiple disciplines and locations  Optimum asset value through increased production and reserve recoveryAs the first step of project execution process, an IO study team was formed to carry out a conceptual study. The Samarang Integrated Operations (IO) study was conducted within the context of an Integrated Operations Model developed by Schlumberger. This model is used to frame, plan, and execute the IO Conceptual Study for Samarang.The methodology, scope of work, and project deliverables for the conceptual study, is based on the general description of the IO model. In general the IO model describes how asset decisions will be supported by new measurements and equipment proposed for installation on existing and new platforms. It also describes how decision process will be enabled by software applications and how collaborative decision making can be improved.An innovative parallel design approach was used to fast track the design process by integrating IO solution conceptual design in parallel to EPC FEED design for instrumentation with interface management as the main quality controller.Upon completion of the conceptual study, a total of 2010 man-hours were logged from interviews, workshops, peer reviews and offshore survey involved interaction with different stakeholders. The extensive time invested in the data gathering has enabled the team to complete the project deliverability inclusive of some additional scope.

The Oil Industry has been implementing Integrated Operations (IO), with several fields documenting value achieved from past and present IO initiatives. Largely, these documented IO initiatives have focused on well and equipment performance and general planning. However, Enhanced Oil Recovery (EOR) methods including thermal, chemical and gas injection which are increasingly being pursued in many fields globally require additional meticulous reservoir surveillance to understand and quantify the effectiveness of the EOR scheme which adds to the value of such projects. Interpretation and integration of all available data and processes into clear, structured and reproducible EOR well and reservoir management workflows to support decision making is still challenging due to the variety of disciplines, data acquisition, processing, analysis, and modeling techniques and technologies involved, and the level of collaboration required. Using an EOR-IO framework as a companion to the Reservoir Management Plan (RMP) can help address these challenges and increase the likelihood of project success. This paper describes such an EOR-IO framework which can be adapted for a wide variety of EOR processes as well as any general injection scheme (including water or gas) and presents a case study where this framework was implemented. The framework is a system for generating a clear framing and mapping of the EOR equipment, data, required analyses and decision processes using an assessment involving all EOR stakeholders and based on the Reservoir Management Plan (RMP). The framework enables all stakeholders to unambiguously understand and agree on how EOR performance will be quantified, what surveillance methods are required and what decisions will need to be taken. The framework facilitates a way for EOR management decision processes to be mapped onto technology-and-people enabled workflows that will help organize data, streamline analysis, define roles and enable efficient management of the EOR implementation in 5 clearly defined layers: Physical, Technology/Infrastructure, Process/Computational, Visualization and Organizational. Depending on the asset and project, the number of workflows may vary but they should fall into one of 3 groups: Operational Group: a system to support implementation of strategy at the operational level using real-time and in-time data.Tactical Group: a system that supports quantification of the overall effectiveness of the EOR scheme in the subsurface in terms of sweep, displacement, pressure, chemical loss, etc. using in-time analysis results.Strategic Group: a system to support identification of situations when an adjustment in EOR strategy is required and enable optimization of the strategy adjustment. This framework was successfully applied to a Field in Malaysia where a total of 6 EOR workflows were designed for managing the EOR scheme. The framework was flexible enough to enable design, development and implementation of the workflows to help ensure that the EOR is managed as an integrated, holistic system.

Oil and gas operators embark on a digital transformation journey in order to maximize their value from every barrel and deliver their greatest possible return to the shareholders in order to meet the world's growing demand for energy. To achieve this, the organization must come up with their new growth strategy that will be sustained through active engagement with the employees and stakeholders who are core to the development and sustainable implementation of their integrated strategy. To align with this strategy, the organization must set up a DOF (Digital Oil Field) organization to identify and implement digital opportunities across the company. During execution, the DOF organization is often faced with multiple challenges to realize the digital vision. To understand these challenges and pain points a detailed study was conducted to assess the maturity level of the DOF organization. Discussions were held with key stakeholders from various departments focusing on their current challenges and pain points of DOF organization. The current state analysis is a combination of inputs received during discussions and through supporting documents. This paper highlights the common practices and pain points of an organization and provides recommendations for improving their future mode of DOF operations through a unified management system framework. The paper also outlines a list of key goals, objectives, and KPIs along with key digital capabilities, enabling tools and technologies required for the organisation to realize their digital vision. To overcome the current challenges of DOF, a new operating model and organization structure has been suggested along with a defined set of operations. To set up the operating model and initiate operations, an indicative roadmap and implementation plan has been outlined highlighting a critical set of activities to be executed over the near term for the new digital organization to be fully operational.