SPE 117894

New Methodology for Optimized Field Development Plan, Why Do We Need To

Introduce Dynamic Rock Typing Case Study for Simulation Model Improved Accuracy and
Reliability
Faisal Al-Jenaibi, Khaled Hammadi & Lutfi Salameh, Abu Dhabi National Oil Company "ADNOC"


Copyright 2008, Society of Petroleum Engineers

This paper was prepared for presentation at the 2008 Abu Dhabi International Petroleum Exhibition and Conference held in Abu Dhabi, UAE, 36 November 2008.

This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been
reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its
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Abstract

The initial hydrocarbon (Oil and Gas) in-place represents the asset volume of ADNOC that is required estimation at high
accuracy level with minimum uncertainties to avoid any future risks with fields development plans. Moreover, accurate
estimation of the reserves that can be produced during the field life cycle is critical as it is directly impact the CAPEX and
OPEX of different field development phases.

Fields developments are usually selected based on the techno-economic evaluations of the outcome from the full field
simulation studies using representative models. Accordingly, management decision for fields development is totally
dependant on the accuracy of the used simulation models.

Worldwide, there are many simulation models successfully demonstrating good history match profiles, nevertheless, several of
these models are utilizing unsupported parameters, such as representative capillary pressure and relative permeability curves.
In addition to the adverse impact on the predictive reliability, massive convergences problems that are encountered and
participating in slowdown the models performance and decreasing accuracy. Subsequently, incorrect Long Term Development
Plans LTDPs profiles will be generated.

Therefore, in order to ensure achieving more representative asset volume estimates, a new procedure has been setup,
established and successfully validated through different fields. The main objectives of the new procedure are to enhance model
initialization with minimum gap in terms of hydrocarbon-in-place between the static and the dynamic models below the range
of 1.0 %, to achieve more accuracy of the expected movable oil and gas with respect to water flooding (Current Development
Plan) and future Gas/WAG flooding (LTDP), to eliminate high risk of assessment of modeling the actual gas/water
breakthrough timing, recovery factor, sweep efficiency and fields measured matching parameters, and to cut down potential
risks of under/over estimating the water/gas influx fronts in the reservoir.

Quality match is essential in order to prevent utilization of non-measured parameters such as irreducible water saturation
(Swcs), also to eliminate utilization of unproven permeability multipliers. Moreover introducing a new capillary pressures
(Pc) designing concept will contribute in reducing convergences problems as well as providing more consistent dynamic
model setup (dynamic model rock typing).

Based on the results from several simulation studies which were introduced to the new procedure framework, the new
procedure managed to demonstrate its capability to design the most reliable capillary pressure profiles. These profiles are
essential for simulation models to ensure quality match of lateral and vertical oil and gas distribution in the field which
represents the most extremely improvement match achieved when compared with other used method.


2 SPE 117894
Introduction

Through detailed reviewing of several current simulation models, it has been observed that, those models are unable to
initialize and honoring log-derive water saturation profiles at acceptable levels. The lack of mismatching the initial fluid
saturation will increase the models associated risks and uncertainties in addition introducing more challengers into history
match processes. Due to the significant gaps between log-derived water saturation and the capillary pressures model-derived
water saturation profiles during dynamic model initialization phase, more time consumed were spent in process to match
reservoir observation data.

Therefore, as the results of implementing ADNOC new procedure, less time and cost with better outcomes quality and
performances have been accomplished in the following areas:
Less volumetric gaps between the geological and the reservoir static models in terms of hydrocarbon-in-place distribution.
As a result of that, (encouraged fluids saturation matched laterally and vertically fluids match can be ensured within 1 %
accuracy.
Better assessment of production potential of the initial field development phases.
Reliable assessment of the LTDP production potential under different development options using the emerging
technology.
Reduce computer timing and CPUs.
Reduce Man-hours which is required to carry out the field development study.
Resources costs saving.
Teamwork, exchange knowledge & skills transfer would be achieved.
Better description of hydrocarbon column thickness, top of transition zone and Pc curves

In a transition zone where oil and water exist in the reservoir, the capillary pressures (Pc) height above the free water level
(FWL) are utilized to define the top of the transition zone as the depth interval where both oil and water below it are in the
mobile conditions at the beginning of production. At a given height above the free water level, the water saturation (Sw)
reaches its irreducible value (Swirr) where above it is the oil zone begins. So, the transition zone is characterized by the
presence of mobile water below the dry oil limit as shown in Figures 1 & 2. The most practical method to define and locate the
top of the transition zone is by performing selective production tests of different intervals.

Capillary Pressure Design Concern

Pcs curves plays major role in defining the initial distribution of fluids in a reservoir and they can have significant influence
on fluids movement. For displacements dominated by gravity, Pcs curves will control the vertical saturation distribution and
the fluids vertical movement. In highly fractured oil reservoirs, the dominant producing mechanism can be capillary
imbibitions of the water.

Capillarity may also be an important force if high and low permeability strata communicate sufficiently to permit cross flow.
In most, however, capillarity tends to be significant only in establishing initial saturations and in controlling fluid distributions
at the pore level. Capillary pressure and saturation relationship are also history-dependent if there is a reversal in the
direction of saturation change during a simulation, it would be necessary to utilize capillary pressure hysteresis function in the
calculations.

Accurate description of fluid flow in reservoirs dominated by a capillary transition zone which might requires special core
analysis (SCAL) data to be implemented in a correct manner to capture the physics of the flow process. Nevertheless, due to
several uncertainties related to the mercury injection capillary pressures (MICPs) curves trends and shapes, the MICPs
curves can easily contribute in adding more uncertainties as input parameter used to distribute fluids in the simulation model.
Additional concerns are as follows:
In several previous cases studies, the MICPs curves, which were used to classify the geological model rock types, have
failed to match the initial water saturation (Swi) profiles for each well as presented in the geological model. This caused
poor quality match and incorrect fluids in place distribution and estimation. (Gap between the water saturation generated
by MICPs against the logs water saturation is reached more then 50% in many available simulation models).
Due to the high Pcs values reported from SCAL studies, those values are participating in over estimating the thickness of
the transition zone which is extremely slow down the simulation models running time and allow earlier than expected
water breakthrough. This will force the simulation engineer to perform unjustified adjustment process with several
parameters like vertical permeability & relative permeability data in order to obtain any history match regardless the
physical reliability.
SPE 117894 3
The heterogeneity in carbonate reservoirs can not be represented by single Pc curve per each rock type due to scatter of
log water saturation values per each rock type against depth as shown in Figure 3. It is clearly that more Pcs curves are
needed to reflect the heterogeneity of the measure log-derived water saturations.
Several reported MICPs are showing low water saturations with very high threshold pressures values which in many
cases are not consisting with ideal concept of Pcs curves shapes, in many cases, for different rock types, the used Pcs
curves have the same shape and trend.
Current practice with Endpoint scaling system approach, showed that the normalized Pcs curves become more unreliable
since they are going to be adjusted to match Swi from the geological model which they would loose their strength and the
physical meaning of the lab measurements.
Upscaling and converting laboratory measurements to field conditions, often introduces errors as the contact angles and
interfacial tension are not known with proven precision.
Consequently, to achieve representative producers water breakthroughs timing and trends, it is highly important to ensure
acceptable simulation model stability with practical running time, good estimate of the transition zone thickness that should be
thin enough and acceptable.

It is worth noting that in view of many field production reports were wells are completed above the defined FWL depth by few
feet, substantial amount of dry oil production during early periods is measured. The water production evolution and timing of
water breakthroughs are of vital important elements when considering well placement, production strategy and field
economics.

Due to the presence of mobile water in the transition zone, some water production is expected, and considered as a critical
factor in planning of field development in terms of prediction of water cut. Based on that, implementation of enhancement
methods (EOR) such as gas injection, artificial lift (Gas lift or ESP) or water-alternating-gas (WAG) will be considered to
ensure sustainable oil production and towards achieving ultimate recovery.

Pcs curves are normally introduced into simulation model as tables; Attention should be made during construction of these
tables, as simulators are sensitive to the slope change between adjacent pairs of table entries. Large change in the slope can
cause round-off or extrapolation errors during the simulation runs.
Figures 3 and 4 illustrate the improvement in quality of matching the vertical saturation profiles which is not only limited to
wells data, but also the lateral distribution of hydrocarbon saturation cross the field as shown in Figure 5.

Pc's Curves Development, Approach Description

It is very essential to obtain general knowledge on the expected top of the transition zone, which could be recognized by
reviewing the available production tests in many producing wells perforated and in the transition zone of carbonate reservoirs
reported dry oil production at early time, while their logs profiles showed high Sw over 60%). Therefore, to design Pc's curves,
proper estimation of thickness of the transition zone with respect to ideal physics of fluids dynamic should be honored to avoid
using any constrains that might required to be introduced to slow down water movement in the simulation model.
Nevertheless, in the following paragraphs, the main issue to be addressed is how we can obtain excellent match between Sw
log profiles and Sw generated by Pc's curves especially in the transition zone, while well history showed dry oil production.

In order to apply ADNOC procedure to design Pcs curves, it is required to build a geological model with proper Sw
distributed to be used as reference, keeping in mind that, one of the main objective of the new concept is to duplicate and
transfer the Sw model from the geological model into the reservoir simulation model with high resolution and quality while
providing additional enhancement elements.

There are two options can be considered to implement the new procedure to design Pcs curves which are as follows:
The first option is to maintain the original rock types classification model without ignoring the geological rock type
classification. The new concept will be applied per each of rock type, and will duplicate the numbers of the generated Pc's
curves. Many of these curves will have similar shape with same endpoints values, and not optimized.
The second option is to ignore the geological rock type classification and focus on Sw log data against height above FWL
depth to generate dynamic rock type classification that can be used to generate Pc's curves.

From practical simulation modeling point of view, the second option will support reducing saturation tables input data into
simulation models while assist in achieving high resolution match between the Sw log profiles and Sw generated by Pc's
curves at simulation models initialization. Furthermore, the final number of the generated Pc's curves will be defined based on
how good quality match is required to be achieved. Usually, the total number of the drainage Pc's curves, which is required to
present excellent match, is ranged between 7 to 12 drainage Pc's curves.
4 SPE 117894
The main formula used to classify and index the Sw log data, in addition to design the drainage Pc's curves is as follows:

Sw = Swirr + ((100-Swirr)/ (1+ (FWL/A) ^B)) -- (1)

Where:
Sw: Sw that need to be calculated at height above free water level depth (%).
Swirr: Residual Sw value (%).
FWL: Height above free water level depth input data to calculate Sw, (ft).
A: Dimensionless parameter reflects threshold pressure.
B: Dimensionless parameter reflects Pc curveting (slope) and top of the transition zone.

Pc's Curves Development, Approach Workflow

For illustration purpose, the following workflow steps have been simplified in order to explain and address each step function
for implementation. Summary of the workflow is as follows:

With assumption of total of 7 drainage Pc's curves to be constructed, the first step is to classify the Sw log data against
height above FWL depth into 7 groups (each group will have single drainage Pc curve).
By dividing the Sw log data scale (usually is equal 100% saturation unit) on the total number of drainage Pc's curves
required, the calculated number is presenting the size of each data set of Sw log data. (Size of Sw date set = 100/7 = 14.1
unit, and therefore; the group-1 has Sw(s) that are ranged between 0.0 to14, and group-2 has Sw(s) that are ranged
between 14 to 28, and etc.
Then, to shape each group of Sw log data, it's required to spot the lower and upper ranges limits to that will be used to
design target drainage Pc curve. Thus, let us suggested that the values of the A & B constants parameters are as addressed
in Table-1A.
The upper limit input data i.e. (Swirr, A & B) that will be used in Formula(1) to shape group-1 data, they will be used
again as the lower limit input data to shape group-2 data, these processes will be continued to cover all the 7 groups.
Table-1A is presenting Swirr, A & B values that used at each group to calculate the lower and the upper limits of each
group.
As concept, the oil dry limit curve is presenting top of the transition zone at different Swirr values (the oil dry limit curve
is presenting the thickness of the transition zone at different Swirr value, which is considered to be thin for good quality
dynamic rock type and to be thick for bad quality dynamic rock type, see Figure-2. So therefore, the group-1 is presenting
best dynamic rock type group that has high porosity and high permeability values, and high oil saturation values, while
group-7 is presenting worse dynamic rock type that has low porosity and low permeability values, and low oil saturation
values.
The constant B parameter is usually ranged between 0.5 to 10, where it could be used as constant value to be applied for
all groups or as variable input value per each group to tweak the oil dry limit curve i.e. (by lowering constant B parameter
value, the oil dry limit curve will be increase).
Through applying lookup approach per each cell in the geological model where each cell should have single Sw value and
single height above FWL depth value, the Pc group then will be assigned to each cell with Sw vary between the upper and
lower limits of the calculated Sw when the Sw in the geological model for X-cell is equal to 57.5 and height above FWL
is equal to 8 ft, then the X-cell Sw is fit between 40.15 and 66.58 which is between the lower and upper limits of group-3
and therefore, the X-cell will be assigned to SATNUM no. 3. Table-1B is showing Sw log data groups that can fit with in
order to achieve quality match between the Sw log derived data and the Sw Pc derived data.
After filtering and plotting Sw log data of each group against height above FWL depth, and through utilizing Formula (1),
the drainage Pc curve then can be constructed using best fit approach after tuned for Swirr, A & B values to achieve batter
match between Sw log data and Sw. Table-2 is addressing the used input data (Swirr, A & B) in Formula (1) to design Pc
curve per each group.
By completed the highlighted process, each drainage curve will be tied-up with a single imbibition curve that is needed for
history match process, and therefore, a total of 14 saturation tables (7 drainage & 7 imbibition curves) will be loaded to
simulation model without need for any scanned curve.

Simulation Model Stability Test

After completed quality check process to ensure quality match between the geological and the simulation models in term of
fluids-in-place volumetric and distribution to validate the water saturation by compare the lateral and the vertical fluids
SPE 117894 5
distribution match between the geological and the simulation models. It is important to perform model stability test by
simulation run with no production and no injection for many years to ensure that the saturation tables are contributing in model
stability.

Simulation model stability test is essential as one of the best approach to validate the impact of the saturation table on the
simulation model stability. It should be performed with large target time step such as 6 months for evaluation period over 50
years, if the simulation model failed to converge with the target time step size due to fluids movement and pressures changes
with the time, then the input saturation table needs to be reviewed and modified.

Simulation Model Performance with New Pc

The benefits of applying reliable Pc's based on ADNOC new procedure are proven in the following areas:
Simulation model running time, time step convergence and stability showed massive improvement as depicted in Figure-
6.
Accuracy of prediction of reservoir performance for 45 years showed more reliable results in terms of Oil rate, GOR,
Pressure and WCT evolution as shown in Figure-7
The added value of using the new Pc's procedure is shown in Figure-8 as follows:
a. Number of Pc's and Kr's curves reduced from 162 to only 14 tables that can be better managed.
b. Convergence problems reduced from 1557 to only 9 which is good indication of the model stability and accuracy.

Wettability Change with Depth
Batter history matches profiles were achieved in many recent subsurface studies after implementing wettability changes with
depth concept, which is assumed that the wettability is changing from oil wet system located nearby top of the reservoir into
water wet system located nearby FWL depth.

In order to introduce wettability change with depth concept in the previous simulation models, depth cut-off approach was
applied based on trail and errors which suggested that, the top part of the reservoir has oil wet system, while the middle part of
the reservoir has mixed wet system and the bottom part of the reservoir has water wet system for the same rock type, the
relative permeability curves will be adjustment to present wettability based on the depth location of the signed rock type, such
as if X-rock type is located nearby top of the reservoir, it will have oil wet system relative permeability curves, while if it is
located nearby FWL depth, it will have water wet system.

The new procedure to design Pcs curves has the capability to address the wettability changes with depth, since each group
which has been classified to design Pc curve is presenting different depth interval and different quality (Sw log values which
have been assigned them into group-1 and they have low Swirr, then they will be assigned them to Kr's curves that are
presenting oil wet system, while the Sw log values which have been assigned them into group-7 and they have high Swirr,
then they will be assigned them to Kr's curves that are presenting water wet system). As a result, each Pc curve group has the
capability to be assigned to different wettability system based on the needs.

Further discussions and way forward to design imbibition and Kr's curves, and more details about wettability issues will be
addressed in other technical papers in near future.

Conclusion
ADNOC new procedure to design Pcs curves can provide and contribute in the following merits:
Efficient and practical procedure that can be easily implemented and updated while achieving high quality match with
observed measured data.
Excellent match with logs-derived water saturation profiles per well and per layer.
Excellent match with less volumetric gaps (OIP & GIP) between the static and dynamic models that can be reduced to
below 1.0 %.
Accurate definition of the top transition zone thickness which would assist further to control water and gas breakthroughs
timing and trends.
Eliminate using unsupported parameters such as permeability multipliers and usage of unmeasured Swcs values.
Allow to implement more ideal relative permeability curves shapes.
Improve simulation model stability which would accelerate computer running time and reduce convergences problems.
Better definition of oil dry limit depths per each dynamic rock type which provides results close to general physics of
hydrodynamic theories.
6 SPE 117894
Practical to address the wettability change with depth. (Assign oil-wet wettability to top of structure and water-wet
wettability nearby transition zone interval).
Minimize the number of saturation table that can be managed in the simulation model.
More reliable results for predicted reservoir production potential required for management decisions in order to select the
most optimum development scheme based on techno-economic evaluation with enhanced oil recovery methods (EOR) for
long term full field development plan.

Acknowledgment

We would like to thank ADNOC, E&P senior management for permission to publish and present this technical paper for field
application.

References

1. MARZOUK, "Wettability and saturation in Abu Dhabi carbonate reservoirs" MEOS99, Bahrain, 20-23 February 1999, SPE
Middle East oil show & conference No11, Bahrain , BAHREIN (20/02/1999), pp. 497-503 (5 ref.)
2. Johne Alex Larsen, Trond Thorsen & Geir Haaskjold, "Capillary Transition Zones from a Core Analysis Perspective",
Norsk Hydro Research centre, N-5020 Bergen, Norway, SCA 2000-20(1).
3. Tawfic Obeida, YussefAl-Mehairi & Karri Suryanarayana "Calculations of Fluid Saturations from Log-Derived J-Functions
in Giant Complex Middle-East Carbonate Reservoir" E-Journal of Petrophysics 2005, ISSN:1712-7866, Published 06 August
2005.
4. H. Elshahawi, SPE and K. Fathy, SPE, Schlumberger Oilfield Services, and S. Hiekal, SPE, IEOC "Capillary Pressure and
Rock Wettability Effects on Wireline Formation Tester Measurements", SPE-56712.
5. T. A. Obeida ADCO, F. Al-Jenaibi ADNOC, S. Rassas & Serag Eldin ADCO "Accurate calculation of Hydrocarbon
Saturation based on Log-data in Complex carbonate reservoirs in Middle-East", SPE-111112, presented at the SPE/EAGE
reservoir Characterization and Simulation Conference in Abu Dhabi October 2007.
6. Lutfi A Salameh ADNOC, Faisal Al-Jenaibi, ADNOC " OffShore Gas Field Development Optimization Study, Applied
QA/QC Procedure for Models and Decision Reliability, Full Field Compositional Simulation Study-Case History", SPE-
11117, presented at the SPE/EAGE reservoir Characterization and Simulation Conference in Abu Dhabi October 2007.



(Figure-1) Complexity of fluid distribution changes with depth to be matched with assigned Pcs curves to honor the fluid
distribution in the reservoir might not be achieved with single Pc curve per RRT due to reservoir heterogeneity which resulted
low quality initialization.

SPE 117894 7

(Figure-2) Definition of ADNOC new dynamic rock typing concept. In order to control water movement in the current
dynamic models, unphysical parameters have been introduced such as unsupported Swcs values, or/and used unobserved
permeability multipliers values, or/and squeezed down relative permeability curves to slow down water breakthroughs.


(Figure-3) Impact of using not adequate Pcs curves on level and volume of oil in the field that considered the main criteria
for success and reliable field development.


8 SPE 117894

(Figure-4) Dynamic model enhancement after implement ADNOC new procedure. Excellent match was obtained after
introduced the new concept in designing capillary pressure (Pcs) curves which ensured minimum gap in terms of hydrocarbon
between the static and dynamic models.





(Figure-5) The newly Pcs curves design has demonstrated excellent match between static and dynamic models in the laterally
and the vertically cross-section maps, which confine its capability to match hydrocarbon-in-places between static and dynamic
models with minimum volume gaps reported.

SPE 117894 9

(Table-1A) After introduced Swirr, A & B values to classify Sw log data against height above FWL depth into 7 groups based
on quality match requirement. (Table-1B) All the cells in the geological model will be investigated against each group to
locate which group can present the cell Sw value in order to sign-up its dynamic rock type SATNUM value.




(Table-2) Main parameters used for best fit approach for constructing reliable Pc curves. The lower and upper limits are
presenting the boarder of Sw logs data against height above FWL depth which will be defined as SATNUM parameter that
will be assigned to related Pc group.

10 117894 SPE

(Figure-6) Massive improvement has been obtained after introduced ADNOC new procedure to design saturation tables which
contribute in substantially reducing the simulation model running time, timer step convergence with high stability assurance.



(Figure-7) Accuracy of prediction of reservoir performance for 45 years showed reliable results in terms of Oil rate, GOR,
Pressure and WCT evolution.
SPE 117894 11

(Figure-8) The added value of using the new PC procedure is shown in terms of Number of Pc and Relative curves reduced
from 162 to only 14 tables, less convergence problems reduced from 1557 to only 9 which is good indication of the model
stability and accuracy