MULTILATERAL WELLS: EXPERIENCE AND FUTURE DEVELOPMENTS IN VENEZUELA BY PDVSA

Ana Maria Hernandez PDVSA!INTEVEP" #$an Car%&' Barri&' PDVSA!INTEVEP" L$i(i Sa)$*e%%i PDVSA E+P" and Mi,-ae% #. E,&n&/ide' Uni0er'i*1 &2 H&$'*&n.
Pre'en*ed a* *-e 33*- In*erna*i&na% C&n2eren,e &n H&riz&n*a% Te,-n&%&(1 H&$'*&n N&0e/4er 35!36 3777

Abstract A critical technology team was assembled with the goal to develop and massify complex well architecture, often referred to by the limiting term multilateral wells, in Venezuela. Professionals of different disciplines were involved during the screening process to select reservoirs with appropriate geological, reservoir and production characteristics for the construction of multilateral wells. he first step was to review earlier multilateral wells in P!V"A expressly to identify the reason of the thus far marginal success of these wells and to research possible candidate reservoirs in the exploitation units of eastern and western Venezuela. #or this screening several reservoirs were analyzed with specific production problems where the development of multilateral technology would be compelling. $ecause of the enormous number of reservoirs in Venezuela, the research was focused on reservoirs with short%term, high%economic potential interest in the application of new technologies. A second focus was the consideration of reservoirs where multilateral wells have already been drilled or where &single' horizontal technology has been used widely. his wor( suggests that the spectrum of Venezuelan reservoirs where multilateral technology could be attractive is very wide, encompassing very different geologies and production and reservoir aspects.

A ma)or element of this wor( is the inclusion of real%time field data for the permanent history matching of reservoir properties. A novel techni*ue, using state%of% the%art downhole sensors and surface e*uipment sensors has been implemented to automatically incorporate new field data to the reservoir simulation model. hese real% time monitoring data were networ(ed to pro)ect databases. +ncremental reservoir simulation is properly triggered as new data are collected, indicating the error between predicted and real data. his techni*ue allows integrated teams to easily and continuously update reservoir models. $etter reservoir characterization can be performed as new data arrive. #ine%tuning is possible since continuous improvement is carried out to characterize local heterogeneities and flow barriers. +t also allows for better identification of flow units and, thus, improving recovery. As a result of this multidisciplinary approach, technical and economic decisions can be readily facilitated in developing multilateral well technology in Venezuela at a massive scale.

Introduction A review of the exploitation plans of Venezuelan reservoirs allows the identification of potential areas with production problems or opportunities for which the implementation of multilateral technology is li(ely to be beneficial. he reservoirs belong to the four most prolific areas of Venezuela, -aracaibo $asin, Apure%$arinas $asin, .astern $asin and the /rinoco $elt &#igure 0'. -ultilateral technology and appropriate stimulation methods combined with stress field studies will increase well productivity in naturally fractured carbonate reservoirs in the -aracaibo and Apure%$arinas $asins. P!V"A is now undergoing a change precipitated by last year1s catastrophic low oil prices and production cuts. he drilling organization has shepherded pro)ect% oriented well construction teams, that are composed of professionals belonging to one of eight knowledge communities &well%planning, well%design, fluids, cementing, tra)ectory and geomechanics, wor(over and completion, operations and business strategies'. hese (nowledge communities have helped the company to understand the current situation and to focus on highly

productive initiatives. he same communities are also responsible for new well design and sizing and novel technology applications to reduce well cost and to increase the asset life cycle. 2ew technologies include complex wells, expandable tubulars, casing drilling and completion practices, among others. -ultilateral technology may create step change profitability in P!V"A3s resource base in the next decade. o meet the declared production target of 4 million bpd within that time, more than 05,555 drainage points must be added during the next five years. #urthermore, the country is planning to intensify the internal gas mar(et, which will imply the reactivation of one of the world1s largest gas reserve field, "anta 6osa. -ultilateral technology may substantially reduce the number of re*uired wellheads and mother%holes by creating novel well architectures, potentially combined with induced hydraulic fractures. he latter, in con)unction with the increased reservoir accessibility are li(ely to reduce the activation index by 75 to 859. :nder these circumstances some ;,555 branches may be drilled in the next decade from 0,555 vertical or horizontal mother holes. #uture development and challenges are ascribed to the highly compartmentalized, deep and fractured reservoirs, widely prevalent in Venezuela. <hile current drilling technologies are poised to overcome these problems, other issues, such as completion, production reservoir exploitation and, especially, good formation characterization, need significant improvements and *uantum developments to affect substantially the overall complex well architecture strategy. /riented drilling will be necessary to control sand production in shallow reservoirs of the -aracaibo $asin and deep reservoirs of the .astern $asin. "hallow reservoirs of the $arinas $asin are candidates for multilateral wells as a solution to water coning problems. +n reservoirs under secondary recovery located in -aracaibo and .astern $asins, multilateral technology will be necessary to increase the recovery factor and to design new exploitation plans using in)ector=producer combinations adapted to the geological and reservoir features of the reservoirs. 6eservoirs with rapid pressure decline and depleted and marginal areas are common in the -aracaibo $asin. +n layered and low%permeability reservoirs that are common in the .astern basin, multilateral wells are li(ely to greatly increase well productivity. $ecause of the recent volatility in the oil price, the search for gas and gas%condensate reservoirs has pic(ed up in the Anaco area in the .astern $asin, and multilateral technology is expected to increase their production. +n the /rinoco belt, new technologies have been developed recently to upgrade heavy oil, ma(ing these reservoirs attractive. .xceptionally large reserves of heavy oil &the resource base in the /rinoco $elt has been estimated by many to exceed one trillion barrels, 05 0>

bbls, or more' point towards a very massive activity in the area. $ecause the pressure of heavy crude reservoirs, operating above the bubble point deplete *uic(ly, increasing the reservoir%to%well contact area is crucial. .ach of four announced pro)ects have estimated >,555 single horizontal wells for a total of ?,555 wells. @owever, multibranched wells are considered far more appropriate. $ecause of wellbore stability these wells will probably have to be Aevel ; and higher. Assuming >.8 horizontal wells to be replaced by one multilateral well, ultimate /rinoco $elt development may construct several thousand higher%level multilateral wells, clearly one of the most massive developments of this type in the world. +mproving the production rate and the ultimate reservoir recovery re*uires both a better understanding of the flow mechanisms through the reservoir and the associated implementation of new technologies. 6eservoir model construction and the updating of the process is complex because of the lac( of proper integration of technologies and visualization techni*ues. +n the particular case of multilateral wells this process is particularly cumbersome. he vision for the exploitation unit of the future is to be a totally automated integral unit, from the subsurface to the client, autonomous and interdependent, with ;! leadership &#igure >'. he exploitation unit will be able to ta(e advantage of environmental changes *uic(ly, with real%time optimization capabilities. .merging reservoir technologies are concerned with data management &type, volumes' and integration, reservoir performance monitoring &fluid flow and fluid interfaces' and technologies to obtain real%time systems with subsurface control through the whole chain of value &interaction' B. Current reservoir technologies are not integrated to support multi%disciplinary team collaboration or to handle large amount of data. he present reservoir characterization cycle is long &> to 7 years' and usually cannot foment drilling and operational needs for production maintenance or enhancement &#igure 7'. .ven when a model is barely built, it is already out%of% date, because of the new data collection which, usually, does not match predicted behavior. +n a very mature global resource base, more complex processes arise, such as enhanced oil recovery pro)ects, infill drilling, complex well architecture and real%time data ac*uisition. echnology integration is a must in order to cope with such diverse (nowledge. Previous Multilateral Experience in PDVSA +n the period between 0BB8 and 0BB? P!V"A drilled five multilateral wells in different reservoirs around the country &#igure ;'. his previous experience with the technology showed very marginal success and only two of the five wells are producing now &<ells 0 and ; of #igure ;'. he first multilateral well in Venezuela, drilled in 0BB8, is shown schematically in #igure 8 05. +t was

intended to be a four%branch well in a non%consolidate sandstone reservoir. he well collapsed and produced sand during the drilling of the third lateral. <ell 0, now producing, &#igures ; and 4' was drilled in a fractured carbonate reservoir with water production problems emerging during the completion of the lateral hole. he well was fixed and is now producing ?55 $P! from the vertical hole, alone. <ell ; &#igures ; and D' was planned as a level 7 multilateral well to substitute two very close horizontal wells. +n this case, the completion system failed and the well started to produce sand 05. o fix it, the well was converted to level 8, increasing the cost and using an unnecessary hydraulic isolation because the two laterals were draining the same reservoir. $ecause of the failure of the completion system the well is now performing as a very expensive horizontal well. wo other wells, drilled in non%consolidated sandstone reservoirs &<ells 7 and 8, #igure ;', also had problems with the )unction stability. he previous multilateral experiences in Venezuela show that multilateral technology should be adapted to the special conditions of Venezuelan reservoirs to avoid expensive failures. Screening Criteria he search for possible reservoirs for multilateral technology in Venezuela has yielded screening criteria for candidate recognition. Current price of oil and the transformation in progress in P!V"A produce a conservative and cautious attitude to probe and develop new technologies. "everal reservoir and production strategies, already in progress, are planning the drilling of multilateral and, even, intelligent wells. @owever, there is a tendency to postpone the decision because of budget cuts, lac( of awareness of new technologies and the previous marginal experiences. !uring the screening process several possibilities in different types of settings were identified, "hort%term interest from P!V"A &exploitation units with multilateral well proposals in progress' A set of locations with up to%date reservoir, production, drilling and geological data .xisting multilateral or where multilateral wells are planned +ndicated massification of the horizontal technology

Geological Issues On The Future Develop ent O! Multilateral Technolog" In Vene#uela Venezuela presents several complex structural and stratigraphic geological scenarios in the four main

prolific areas where multilateral technology could be applied. #rom the lithological point of view, several carbonate and clastic reservoir were analyzed. o%date multilateral technology has been tested with success in carbonate reservoirs worldwide because of the possibility to drill less complex multilateral wells 4,D. hus, several Venezuelan carbonate reservoirs were analyzed and proposed as candidates. Production and reservoir data of several naturally fractured carbonate reservoirs in both the -aracaibo and the Apure%$arinas $asins were studied, considering the importance of the (nowledge of the orientation of the main natural fractures=faults and the possibility to combine multilateral wells with hydraulic fracturing technology &#igure 0'. here is also an obvious application to develop multilateral wells in other geological framewor(s such as braided and meandering sand reservoirs, mainly in shallow unconsolidated sands and deeper consolidated sand reservoirs, which are common in Venezuela. Configurations such as fishbone, opposing laterals and right%angle laterals are indicated. "uch well architecture will represent a challenge for the service companies in Venezuela, where improvement of existing multilateral technology will be necessary to design wells adapted to the geological features of Venezuelan clastic reservoirs. +n deeper consolidated reservoirs, mainly in the 2orth -onagas oil fields, re%entries have been considered as the best option to date, so a review of wells with mechanical problems has been underta(en. hese reservoirs are usually compartmentalized either by faulting or sedimentation or both, and their structural complexity and facies architecture will generate several options for multilateral wells in deeper reservoirs &multibranch, multilateral, spider wells at the top of the structures7'. @owever, current practices offer few drilling possibilities in deep and high%pressure reservoirs in constructing multilateral wells. Additional production problems may emerge such as borehole stability, sand production, asphaltene and paraffin deposition, high% damage s(in or tubing corrosion. hese reservoirs, in additional to operational challenges also provide exploitation challenges; &reservoir simulation applied to multiple reservoirs, completion and drilling aspects in wells with complex well architecture and in)ector% producer configurations'. Consolidated shallow sands with light oil have been considered for multilateral technology. :nswept areas and reservoir sand poc(ets in fluvial shallow reservoirs are common in Venezuela, and multibranch and multilateral wells that will penetrate several channel sands either at the same stratigraphic level or at different levels are indicated. he generation of new exploitation plans with new technology is critical to increase the recovery factor. +n heavy oil, unconsolidated sand, reservoirs several

candidates were considered for the massification of the multilateral technology either by doing multibranch wells to compartmentalize the reservoir or to install wells for steam%assisted gravity drainage, "AE!0,8,?,00. <e have already mentioned that single horizontal wells are li(ely not sufficient for these formations. .mbar(ing on multilateral wells in the -acaibo $asin and the /rinoco $elt will create a very massive activity. Already opposing horizontal wells, a clear precursor to multilateral configuration have been drilled in these areas >. +n layered and compartmentalized reservoirs of the fluvial%deltaic se*uences of the .astern $asin, new exploitation plans using multilateral technology are now planned with the goal to increase the recovery factor of gas reservoirs. -ore than D55 stratigraphic compartments are associated with these large gas reserves. As a result of this wor( more than >5 Venezuelan reservoirs in the four main prolific areas have been identified as candidates for multilateral technology. An economic matrix of these reservoirs is now generated with the goal to prioritize the development of the technology in fields with technical%economic priority. $e% &eservoir Technologies Collateral to Multilateral 'ells S art &eservoirs he interest of real%time data ac*uisition leans on the "mart 6eservoir philosophy in which downhole assets are fully instrumented and integrated to upper decision systems, such as numerical reservoir simulators, des(top pro)ect management and integrated reservoir management environments &#igures ? and B'. !ata and information is hence properly treated and automatically analyzed to produce instant reservoir strategies to control field e*uipment. ime%lapse information is critical to predict the movement of fluid fronts. $enefits of the smart reservoir include minimum time for analyzing reservoir data, fast troubleshooting responses, and proactive rather than reactive resource optimization. <e believe that with the development and availability of new information technologies, the smart reservoir philosophy will be the main approach to many reservoir and field operations, minimizing cost and optimizing resources. his practice will, for example, allow reservoir engineers to anticipate which horizons are swept by the displacing fluid. Proper actions on the in)ection profile can be made to improve sweep efficiency. "mart reservoir technologies also include data mining from history databases, in which (nowledge is hidden through huge amounts and *ualities of data. 6eal%time data may upgrade history databases with new reservoir information, allowing additional value creation from existing resources.

&eal(Ti e Data Ac)uisition +n the past decade the need of real%time downhole properties has emerged. Current reservoir management techni*ues do not include the systematic analysis of real% time data and it is obvious that such data are necessary for the optimization of operations. Parameter measurements are given good results in the laboratory, but temperature limitations and deployment methods have not been very successful in field applications. Te perature Pro!ile !ownhole permanent distributed temperature monitoring is performed by deploying a specially covered fiber cable into a F coiled stainless steel tubing. he tubing is previously attached along the production tubing or casing. A laser bean is sent through the fiber cable. A computer collects its reflections, which transform light into distributed temperature profile information. !istributed temperature profile when compared to resistivity logs easily indicates and correlates which pay zones are contacted by heat. P!V"A has recently installed two fiber optic temperature profile systems for performance monitoring in a pair of "AE! horizontal wells at the ia Guana #ield in <estern Venezuela &#igure 05'.

&eal(Ti e &eservoir Si ulation Current reservoir technologies overwhelm engineers with bunches of new information. !ecisions are usually ta(en with the analysis of )ust a fraction of the available information. +ntegrated reservoir studies consider most of the field information including the use of historical data to match reservoir properties. @istorical data &pressure, oil, water and gas production' are usually collected monthly or wee(ly throughout the field life and gathered among many other types of data &PV , core data' prior to a reservoir study. 6eservoir study results are finally considered to predict future field performance. @owever, predicted field profiles are not valid for the long term. <hen additional data are collected &i.e. new wells, more production data', the forecast of performance is compared with new field data. #or diverging results, further static and dynamic characterizations are re*uired to match actual performance. 2evertheless, the model update process is complex due to a lac( of proper integration technologies and visualization techni*ues &#igures >,00'.

$e% Approach Accuracy of the simulated model obviously depends on the characteristics of the model and on the robustness and completeness of reservoir description. +t is important, therefore, to spend some time estimating the *uality of the simulation to determine whether it is ade*uate for the intended use. he best way to calibrate a model is to constantly validate it with real field data. his paper addresses the inclusion of permanent field data into reservoir simulation prediction models. #ield data are collected through permanent field instrumentation systems. he data are remotely accessed from anywhere in the company1s networ( through a specially designed web interface. he generic interface collects data in real time. #ield data &bottom%hole and wellhead pressure, fluid rates' are permanently compared to simulation predicted profiles. "imple programming triggers selected time step calculations to estimate new bottom%hole and bloc( pressure values for those given field flow rates &oil, water and gas'. Per every additional time%lapsed collected data &i.e. more production data' forecast of performance is compared with new field data. #or this, predicted field profiles are validated for a longer reservoir life cycle and hence, simulation models. !iverging results indicate that the model is no longer valid for current field conditions, and therefore, proper static and dynamic characterization is re*uired to match actual scenarios. Ad)ustment then may include relative permeability end%point ad)ustment, cell pore volume reduction, or transmissibility reduction from one of the near well faults. $ecause of the non%uni*ueness of reservoir simulation, it may be necessary to run different case scenarios to validate field data. +t is also possible that different models may be validated in different periods of the life of the reservoir. 2ew real%time flow and pressure data do not mean second%to%second data, or millions of values per hour. hese field measurements often occur once a wee( or once a month. he idea is to (eep on validating field and simulation profiles and, at least, to ma(e use of data that are often collected but are, at times, ignored Econo ic Evaluation o! Multilateral 'ells -ultilateral wells are intended to accelerate the petroleum production rate, to increase the recovery factor and, to minimize reservoir problems such as water and gas coning. Conse*uently, any of these results will create attractive economic expectations for developing an oil field. @owever, there are several economic issues that should be resolved prior to the demonstration that

multilateral wells will be a suitable solution. he 2et Present Value &2PV' is assumed to be the most reasonable economic indicator to evaluate the financial feasibility for a multilateral well pro)ect. o use 2PV, it is first re*uired to estimate the pro)ect cash flow in terms of well construction costs, oil production rate income and, wor(%over costs for both multilateral and conventional wells, as shown in #igure 0>. A multilateral well pro)ect to be attractive should result in a higher 2PV. Also ultimate recovery is expected to increase up to 089 and initial investment costs decrease by as much as ;59 when building multilateral wells as re%entries in existing wells D. 2PV calculations should consider oil production rate uncertainties coming from reservoir simulations, unpredictability of wor(%over costs, unscheduled drilling costs due to )unction failures, and geological uncertainties. /il production rate accuracy depends on the well architecture. h initial investment or well construction costs depend on drilling technology and geological complexity, while wor(%over costs depend on reservoir hydraulic characteristics and well completion technology. o account for these uncertainties in 2PV calculation, all ris(s involved during the planing, well construction and well operation phases should be identified, and corresponding costs should be established, so that the 2PV is ris( weighted. his process is referred to as a Huantitative 6is( Analysis &H6A'. .conomic expectations are more reliable when uncertainties in geological characteristics and reservoir properties are minimized, well productivity modeling simultaneously ta(es into account reservoir properties and well architecture effects. +t is also helped if operational ris(s are predictable during the well design phase and are monitored during well construction. -ultilateral well implementation is attractive only as a massive approach in the reservoir exploitation plan. Conclusions 0. >. .conomic attractiveness of multilateral wells can be realized only if massive application of the technology is underta(en. $ecause of the earlier marginal success of multilateral technology in Venezuela a multidisciplinary approach is necessary to facilitate the development of the technology. "creening criteria were established to identify reservoir candidates for multilateral technology in Venezuela. "everal geological and reservoir structures will re*uire different applications of multilateral technology his paper presents an innovative approach for including permanent field data into reservoir simulator prediction models allowing a continuous

7. ;. 8.

update to the reservoir model, so necessary for the construction of complex wells..

8.

SI MET&IC CO$VE&SIO$ FACTO&S cp. ft ft> ft7 in. lbf md psi bbl x 05I x 7.5;?I x B.>B5 75;I x >.?70 4?8 x >.8;I ;.;;? >>> B.?4B >77 x 4.?B; D8D x 8.048 .%57 .%50 .%5> .%5> .%55 .%55 .%5; .%55 .%55 J Pa.s Jm J m> J m7 J cm J2 J m> J (Pa J ft7 4.

#ernandez, $., .conomides, C.A., .conomides, -. G., -ultilevel +n)ector=Producer wells in hic( heavy crude reservoirs paper "P. 87B85 presented at the V+ AACP.C conference, Caracas, Venezuela &0BBB', April. >0% >7. @all, "., -ulti%lateral horizontal wells optimizing a 8%spot <aterflood. paper "P. 78>05 presented at the "P. Permian $asin /il K Eas 6ecovery in :.".A. &0BB4' -arch. @all, "., -ultilaterals convert 8 spot to line drive waterflood in ". :tah. paper "P. ;??4B presented at the "P. +nternational conference in China, $ei)ing &0BB?'. 2ov. -endoza, @.A., #inol, G.G., "AE!, pilot test in Venezuela paper "P. 874?D presented at the V+ AACP.C conference, Caracas, Venezuela &0BBB', April. >0% >7. "aputelli, A., :ngredda, A.., Nnowledge Communities help to +dentify best operating practices paper "P. 87D8B presented at the V+ AACP.C conference, Caracas, Venezuela &0BBB' , April. >0% >7. irado,G., #errer,G., Velas*uez,A., Euimerans,6., Lovera,G., Eonzalez,-., -endez, #., "andoval, ". 2on Conventional !rilling. echnical !iscussions in P!V"A. +nternal 6eport. &0BB?' Gun. 7%8.

D.

I Conversion factor is exact ?. Ac*no%ledge ents he authors wish to than( P!V"A%+2 .V.P for supporting publication of this paper and the people of the -ultilateral Pro)ect eam, exploitation :nits and echnical -anagement for their contributions to this wor(. &e!erences 05. 0. $oardman, !.<., !esigning the optimal multilateral well type for a heavy oil reservoir in Aa(e -aracaibo, Venezuela paper "P. 7D88; presented at the "P. +nternational hermal /perations K@eavy /il "ymposium, $a(ersfield, California, &0BBD'. #eb. 05%0>. Consentino, A., "potting,E., Eonzalez, E. .., Arau)o, L., @errera, G. Cycling "team +n)ection Parallel horizontal well, Eeostatistical description, thermal simulation and field experience. paper "P. ;B50D presented at the "P. echnical Conference, 2ew /rleans,:.".A. &0BB?'. "ep. >D%75. .conomides, C.A., echni*ues for -ultibranch <ell ra)ectory !esign in the context of a three% !imensional 6eservoir -odelM paper presented at the "P. .uropean 7%! 6eservoir -odeling Conference, "tavanger, 2orway. &0BB4' . April. .conomides, -.G., $rand, C.<. and #ric(, .P., <ell configurations in Anisotropic 6eservoirs, SPEFE , !ec. 0BB4, >8D%>4>. B.

>.

00. Vas*uez, A.6., "anchez, A., -cAennan, G.!., Euo, H., $ludun, -.A., -endoza,@., -echanical and hermal Properties of :nconsolidated sands and its implication to heavy oil "AE! pro)ect in the ia Guana #ield, Venezuela paper "P. 8;55B presented at the V+ AACP.C conference, Caracas, Venezuela &0BBB' , April. >0% >7.

7.

;.

"ARACAIB$ FI%&#S Pre''$re De, %ine C &/ ) a r*/ en*' Se%e, *i0e Pr& d $, *i& n

A'AC$ AR%A In, rea 'e Re, &0er1 Fa , *&r in ;a '! C&nd en'a *e Re'er0&ir'

handle large amount of data. he reservoir characterization cycle is long &>%7 years' and usually does not match drilling and operational needs.

#$n, *i& n a nd La *e ra % C& %%a ) 'e < Sa nd Pr&d $, *i&n

*ell + *ell *ell ,

BARI'AS A(UR% FI%&#S Wa *er C&nin( Fra , *$red Ca r4 &na *e Re'e r0&ir'

$RI'$C$ B%&) Hea01 Oi%: Ne: E9)%&i*a*i&n P%a n' 2&r En-an, ed Cr$d e'

Wa *e r Pr& d $, *i& n #$n, *i& n a nd La *era % C & %%a ) 'e < Sa nd Pr&d $, *i& n

*ell / *ell .

Dri%%in( a nd C& / ) %e *i& n Pr& 4 %e/ '

Figure +, Aocation map showing the four prolific areas of Venezuela and some of their multilateral technology opportunities.

+n Production Abandoned

Sa nd Pr& d $, *i& n a * *-e =$n, *i& n

Measurement and Sensors

Modeling and Predictions

Operation Control

Finance and Economy

Figure /, -ap of Venezuela showing the location of the multilateral well drilled between 0BB8%B?, their recent status and a summary of their problems.

8 Focalized Centers 8 Synergy of efforts 8 Better Use of Investments 8 Reduction of Uncertainty. 8 Bigger technical support 8 isualization! "anipulation 8 "ultisensoring #isplay 8 #ata Integration 8 Collaboration!

4-D Leadership

Figure -, Visuali#ation Centers, hese centers provide teams with powerful tools to integrate competences and (nowledge, to ta(e advantage of previous investments and to reduce uncertainties.

Figure 0. !iagram with the <ell > Architecture and Completion "ystem.

S*a4%i'O)*i/$/ E9)%&i*a*i&n P%an

E9e,$*e A,*i0i*ie'

M&ni*&r Re'er0&ir Per2&r/an,e

8 C-ara,*erize 8 O)*i/$/ P%an

8 Dri%%in( 8 O)era*i&n

8 S$r0ei%%an,e 8 C&n*r&%

8 U)da*e M&de% 8 Re0ie: P%an

Figure ., Production Value Chain, Current reservoir technologies are not integrated to support team collaboration and

De%i0er

Re0ie: E9)%&i*a*i&n P%an

T&&%'
8 In2&r/a*i&n Te,-n&%&(1 8 Da*a S*&ra(e 8 Fa'* Si/$%a*i&n 8 C&%%a4&ra*i0e A%%ian,e' 8 Ne*:&r>in( ,a)a4i%i*ie'

+,0,142 5 -7778

M&ni*&rin(
8 Per/anen* In'*r$/en*a*i&n 8 Fi4er O)*i,' 8 Re/&*e 8 In*e(ra*ed *& M&de%

R&,>!2%$id M&de%
8 In*e(ra*ed en0ir&n/en* 8 In*e(ra*ed A))r&a,8 M$%*i)%e d&/ain a,,e'' 8 ?D + @D Vi'$a%iza*i&n

:0.142 5 .-778

S/ar* Re'er0&ir C&n*r&%

92 &A)%RA& 62 5 6,9.8
8 In*e(ra*ed 8 A$*&/a*ed O)era*i&n' 8 N&n in*$i*i0e 8 In*e%%i(en* '%ee0e' 8 A$*&/a*ed )a,>er' 8 A$*&/a*ed /e'- )a,>

De,i'i&n + S*ra*e(ie'
8 In*e(ra*ed Re'er0&ir Mana(e/en* 8 E22i,ien,1 8 C&/)e*i*i0e ,&'*' 8 Re'&$r,e 4a'e 8 S-&r* and %&n( *er/

%R)ICA& *%&& 40+1-2 5 6/778

Figure 3, "mart 6eservoir Philosophy. !ownhole assets are fully instrumented and integrated to upper decision systems, such as numerical reservoir simulators, pro)ect management des(top and integrated reservoir management environments.

Figure 1. !iagram with the <ell 0 Architecture and Completion "ystem. his well is actually producing from the vertical hole only.

S*ea/ In=e,*&r

O4'er0a*i&n Pr&d$,er We%%

C&n*r&% %ine 2&r ,arr1in( *-e &)*i,a% ,a4%e i' '*ri))ed *& *-e )r&d$,*i&n *$4in(

&)BS

/0+1-2 *indo; 5 ,4.-8 &ateral < - 5 .,/68 Azimuth +.7= &iner /0+1-2 7.7+.2 &ateral < + 5 ..4.8 &iner .0+1-> 7.7+.2 Azimuth 7= :0.142 5 ,::78

S*ea/ /i(ra*in( *-r&$(- re'er0&ir

C&n*r&% %ine ,arrie' *-e &)*i,a% ,a4%e

Figure 2. !iagram with the <ell ; Architecture and Completion "ystem. his well is producing in a heavy oil reservoir of the /rinoco $elt.

Figure 4, !ownhole permanent distributed temperature monitoring. +t is performed by deploying specially covered fiber cable into a F coiled stainless steel tubing.

;a$(e TPS

#ig. 0>. 2PV cash flow analysis for multilateral versus conventional well

3? ?<AB S$r2a,e Ca'in(

?!3<CB T$4in(

C!6<AD Cir,$%a*i&n T$4in(

3C!3<@B H&%e

S*ain%e'' S*ee% 3<@B T$4in( :i*- Ni*r&(en 7!5<AB Ca'in( Ni*r&(en C-a/4er S*ain%e'' S*ee% 3<@B T$4in( :i*Fi4er &)*i, Ca4%e Ni*r&(en C-a/4er

Pa,>!&22 6B S%&**ed Liner U!T1)e C&n2i($ra*i&n

Figure +5, #iber /ptic installation. P!V"A has recently installed two fiber optic temperature profile systems performance monitoring in one pair of "AE! horizontal wells.

Field Field? ?"odel "odel#ata #ataIntegration Integration Field FieldAutomation Automation I I0 0(rocess (rocessControl Control IIII0 0Supervisory Supervisory III III00$ptimization $ptimization I I 0 0Integration Integration #o;nhole #o;nhole"onitoring "onitoring 88 (ressure! (ressure! 88 Saturation Saturation 88 )emperature )emperature 88 "ultiphase "ultiphaseFlo; Flo; 88 Sand Sand(roduction (roduction 88 Asphaltenes Asphaltenes 88 3 -S! 3 S!)racers! )racers!C$ C$
-

Reservoir Reservoir#escription #escription 88 Static Static? ?#ynamic #ynamic 88 (redictions (redictions (roBect (roBect"onitoring "onitoring Fluid Fluidfront frontadvance! advance! coning! coning! ;ellbore ;ellboreinstability instability Surface hole Control d0 Surface? ?d0hole d0hole Control 88 Cho@e! Cho@e!Aas0lift! Aas0lift!%S( %S( 88 Sleeves Sleeveson1off on1off 88 (ac@ers! "eshes (ac@ers! "eshes 88 Separation Separation 88 ReinBection ReinBection

Figure ++, "mart 6eservoir Concept, 6eal%time systems.

E CAS3 F&$* C"" ED @ C F !C !@ !E

(roduction

)I"% C"$')3SD 3 C ? @ 5 E

Initial Investment

*or@over Costs
MULTILATERAL WELL

CONVENTIONAL WELL

'( F BAS% CAS%

<

'( F"&)