Strategic Handling of Stranded/ Associated Gas During Oil and Gas Exploration - A Case Study on a South East Asia Field Model

Abstract

This paper presents a complete integrated asset model for gas planning and, in particular, the handling of stranded gas during exploration. Uniquely, it models a gas network from the reservoir, right through to product allocation based on contractual obligations. It back-allocates through the network from the market, to ensure accurate supply and product tracking. We show how this type of model provides unprecedented confidence in field evaluation and gas planning. The market-based approach to integrated asset modelling that we used includes an optimal amount of information to deliver a fast, accurate solution. Oil and gas exploration activities do not usually involve planning for stranded or associated gas. Many discovered gas reservoirs are left undeveloped due to a lack of scenario analysis during the exploration phase. A fully integrated gas planning approach is required for effective field development planning in a timely manner. This has been a subject of intense research and development in recent years. Stranded gas reserves can be effectively developed using proactive market planning and strategic gas exploration guided by an integrated gas planning approach. As such, our model includes reservoirs, platforms, facilities, pipelines and markets to effectively understand the network deliverability. In this paper we defined multiple scenarios for bringing up gas from reservoirs, through the facilities and delivery point, right up to allocation of resources to meet the market demand. The case study deals with a market-based approach for modeling 40 gas reservoirs and associated gas products from nearby platforms. The practical constraints such as condensate handling capacities, compressor systems, and contract gas quality are integrated into the model analysis. The unique, fully integrated reservoir to market approach to IAM we demonstrate in this study provides a real breakthrough in E&P companies’' ability to model and run scenarios against their complete gas network in a relatively very short time. In particular the back-allocation from the market provides confidence around their ability to meet their contractual sales obligations and enables product tracking through the whole network.