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DeclineShift solution shifting the life of mature assets

27th October 2015

The Baker Hughes DeclineShift mature asset solution is helping operators get the most out of their investments—including maximum returns—through individual, fit-for-purpose solutions that offer minimal disruption, downtime, and footprint.

Baker Hughes DeclineShift mature asset solution
Baker Hughes DeclineShift mature asset solution

“Because no two operating companies and no two mature assets are the same, Baker Hughes takes an individual approach when building a solution for a particular asset, focusing specifically on each asset and the operator’s objectives,” says Maki Ikeda, manager, Baker Hughes integrated technology for mature fields. “Every DeclineShift solution is founded on a close examination of the areas that—individually and collectively—have the greatest impact on operators’ bottom lines. This examination, which fuels the development of the most capital-efficient and high-impact solution, can range from individual well diagnostics to full-field analyses. Depending on an operator’s needs, this examination typically focuses on three primary challenges: optimizing production from existing wells, maximizing production revenue, and increasing economically recoverable resources.”

Baker Hughes has designed and implemented a broad mix of fit-for-purpose technologies and services for declining fields around the globe, leveraging extensive application knowledge.

In an 80-year-old field in Latin America, the solution included developing and prioritizing a production enhancement portfolio, creating more streamlined well designs, accessing further oil efficiently, and utilizing flared gas for reinjection and power, improving capital efficiency.

Production from the field—one of the most complex in the world—was declining by 6% monthly, and new development wells were costly. Previous revitalization attempts were ineffective, so the operator contacted Baker Hughes to request a customized solution, including integrated field management over a three-year period.

Once the solution was implemented, production increased from 2,600 to 10,500 BOPD in the first 12 months, and operation costs dropped from USD 4.38 BOE to USD 1.86 BOE over the first 18 months. An additional 20,000 barrels of incremental production was realized through strategic well completions and interventions, and the monthly field production decline dropped to 3.4%.

“This consistent focus on capital efficiency and close collaboration with the operator’s team yielded precise, technical solutions to lower cost per barrel and reduce overall field decline, successfully extending the economic life of the asset,” Ikeda adds.

In a large mature field in Indonesia, a DeclineShift solution increased revenue more than USD 320 million by reducing deferred production and saved the operator USD 30 million in workover rates.

Wells experienced frequent workovers and lost production due to challenging well conditions, including bottomhole temperatures up to 280°F (138°C) and more than 90% watercut. The average electrical submersible pump (ESP) run life in the field was less than 300 days.

Baker Hughes designed a solution to improve equipment life and decrease deferred production. More than 1,000 Baker Hughes ESP systems and 15 rod-driven progressing cavity pump systems were installed—with minimal disruption—to increase production and address sand, scale, emulsion, and gas lock issues.

This solution increased oil production by more than 10 million bbl across a seven-year period and reduced workover rates by more than 30%.

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