Maximization of Value from Brown Assets Through Integrated Short Term Oil Generation

Abstract

Abstract The Oil Minning Lease, OML-X (made of several fields), initially operated by a major international oil company with some of its fields discovered in 1963, has experienced significant production decline from its peak in 1967 of 115 Mbopd (and 120 MMscf/d) to less than 30 Mbopd (and 100 MMscf/d) by 2021. This decline was attributed to several factors. The current operator inherited an aging asset characterized by declining reservoir pressures and underutilized gas lift systems. This paper details a comprehensive Redevelopment Strategy implemented by the current operator to reverse this trend and maximize asset value. The approach focused on enhancing production from existing wells and adopting long-term reservoir management best practices. Key interventions included rigless reactivation of shut-in strings, flow line repairs / sectional replacement, and systems integrity assurance, followed by more complex operations. The implementation of this strategy led to remarkable results: a production increase of 78%. This was achieved with a 300% reduced investment and within 50% of the anticipated time, all without any Lost Time Injuries (LTIs). Also, the project saw significant asset integrity improvements through wellhead maintenance and refurbishment. This success story provides valuable insights into the effective management of brownfield assets, highlighting the importance of candidate selection, a SCRUM (agile working system) delivery structure, regulatory collaboration, and integrated teamwork. The approach demonstrated a significant impact on the specific company’s production, with a simple economic indicator of a 5-day payout. Extrapolating these results, the paper concludes that similar strategies could revitalize aging Nigerian oil assets, potentially leading to significant production increases. The case history contributes novel insights to the petroleum industry by showcasing a cost-effective, efficient approach to maximizing brownfield asset value, which could be pivotal for the revitalization of aging oil fields not only in Nigeria but also in similar global contexts.