1. Marginal Field Development Advances in 3D Geological Modeling: How it can help?

2. Economic Drivers  How much oil or gas is there?  How much is recoverable?  How fast it can be recovered?  How much capital expenditure required?  What will be return on investment? Economics is constrained & guided by technical complexities & challenges…..how well we understand the field

3. Thrust Areas: New Technology  Data Acquisition & Processing  Seismic Interpretation  Formation Evaluation, Well Stimulation & Well Control  Reservoir Modeling & Simulation  Drilling & Related Services  Facilities & logistics  Information Technology Marginal fields have constraints on heavy data acquisition program - Field understanding is based on limited data - Dealing with Risk when limited data pose high uncertainty The real challenge with marginal field is probably not in selecting the best technology but in the way these technologies will be managed.

4. Technological Drivers  New algorithms  New Workflows  Powerful computing capabilities  Improved integration of various type of data  Improvement in existing algorithms  Improved workflows Efforts are directed towards development of technologies that are faster, automated, scalable, reproducible and provide realistic representations

5. Technological Innovations  3D Geological Modeling  Seismic Technology  Formation Evaluation Strategy  Drilling Technology  Extended Well Tests (EWT)  Early Production Systems (EPS)  Intelligent Completions Aim of technological innovation is to reduce economic & project risk

6. 3D Geological Modeling Challenges  Reservoir pose challenge –structure & stratigraphy  Challenge is to realistically represent reservoirs  Data explosion  Reservoir quality & Volumetric  Challenges are related to- scale, technology, & skill Understanding the reservoir and the associated uncertainty/ risk is key….even in marginal fields

7. 3D Geological Modeling Workflow Stratigraphic Modeling Pillar Gridding Well Log Upscale Facies & Petrophysical Modeling Make contacts & Volume Calculation Intro to Petrel Interface Workflow Editor Property Modeling Make Horizons Zones & Layering 3D Grid Construction: Structural Modeling Studio 3D Grid Construction Structural Framework Fault Modeling 3D Grid Construction Structural Gridding Introduction Surfaces and Data edit

8. New Algorithms- Structural Modeling

9. New Algorithm- Model Update 9

10. Facies updated in region around new well Petrophysics updated in region around new well New well shows low NTG compared to 3D model New Algorithm-Model Update Porosity Facies Updated model Original model

11. Improved Algorithm-Integration with Seismic  Seismic Technology can identify Geobodies  Geobodies can be incorporated in reservoir models for better charchaterization  Move from stochastic to semi-deterministic

12. Improved Algorithms- Integration of Various Data  Initial Model Built from geological data, geophysical and petrophysical data  Well Testing provides additional information  Models can be calibrated to handle additional information No Distance conditioning Distance conditioning

13. New Algorithms- Capturing Reality 15 biggest geobodies extracted Well match Conditioned Simulation (Hard Data)

14. Dealing with Uncertainty  Uncertainty spectrum is very important for marginal fields  Evaluation of scenario uncertainty is more important than generating multiple realizations for marginal fields

15. Handling Different Scenarios and Realizations in Petrel Scenario 1: Petrel geo model 1 Realizations : Scenario 2: Petrel geo model 2 Scenario 3: Petrel geo model 3 1_11_21_N2_12_22_N3_13_23_N3_3 Volume distributions :... Use nested approach : For each scenario, run multiple realizations. The Cases pane is used to organize the results.

16. Technical Advantages  Fast Model Building  Better integration with various data  Rapid model updates  Easy and Simple Workflow  Faster & Better Decision Making

17. Conclusion  New geological concepts development  New Data Acquisitions Technology (Logs, Seismic)  New & Improved Interpretation techniques  Integrated Solutions & Multidisciplinary studies  Project Management