Well Cost Improvement and Automation – Reducing The Costs Of Well Construction And Production
We’re committed to slashing the cost of drilling new wells, well re-entry, workovers, and retrofitting existing ones. We developed a fully automated Well Engineering AFE cost-generating template and activities time breakdown that saves time and cost
We consider offset wells and benchmarked similar wells worked on in the past within a particular field in generating and updating the activities time breakdown and cost template. We coach and support teams on- to help them reach their objectives as a whole.
Our Deliverables
- Develop/Maintain wells project activities/cost assumptions & validation sheet
- Wells Project cost planning & automation (AFE) – Budget
- Daily Cost/Performance tracking & automation
- Project cost control, tracking and analysis
- Auto generation of well activities cost plot(Plan & actual)
- Auto generation of activities time-depth plot (Plan & actual)
- PO and Invoice reconciliations
- End of Project invoices vs. field ticket audit
- Project cost (Estimate, Forecast and Actual)
Why is Improving Well Cost Reduction Important?
It is important to reduce the cost of drilling new wells, well re-entry, workovers and retrofitting existing ones because it impacts on performance, delivery and cost. This means not only will the price of gas and oil go down, but other products that rely on these resources as a substitute will also become cheaper. We take steps to identify and eliminate what’s repetitive and time-consuming in your day-to-day tasks in well planning and operations.
What are the Challenges of Operating an Oilfield With Low Cost Improvements And High Labor Requirements?
The Well Engineering Team has been unable to achieve deadlines for the Drilling Business Plan and well operations activities – AFE. It is advantageous for Oil & Gas firms to have a lean workforce structure.
The oil sector has struggled to find ways to lower costs and increase efficiency without compromising output. Several issues, including high labor requirements, low-cost advancements, and the necessity for skilled people, have made this extremely challenging. The skilled workforce of DaneOGSL overcomes this gap
The DaneOGSL automated activity time breakdown & cost AFE template generation for Well Planning & Operations
We designed an automated Well Engineering AFE template and Well activities time breakdown for Well Project Management.
We collect data to form near best-in-class data of our past drilling activities, from which we developed the premise/benchmark (utilizing: Drilling speed, Casing running speed, cementing time, equipment handling speed, Completions operation sequence etc.) of our drilling operations on a phase-by-phase basis, which we converted to a code to make the premise dynamic (Because no two wells are the same).
Then we built an interface to collect drilling parameters from the Drilling Engineer and programmed them to communicate with the project premise (so we can automate the project premise and create drilling operations time depending on Well Engineer data/parameters).
With the automation built, we focus on Contracts, equipments, personnel, and drilling materials required to carry out drilling operations based on the premise above (here we consult PR’s, PO’s, field tickets, and other cost-related documents). Cost elements were automated to respond to the aforementioned assumption case-by-case (Time cost, Lump-sum, Depth etc.)
For Marginal field owners and JV partner companies, there are over 5 detailed (services and personnel on a phase-by-phase basis) cost reports to be presented to government agencies and other partners, each with a different form. We’ve automated all report templates to update automatically as the Well Engineer enters drilling parameters. We automated the NPT (percent) to react on phase time and the contingency to react on a cost-item basis to give the template flexibility.
The Well Engineer concentrates on well design and drilling/completions parameters, and the template generates drilling time and cost.
This template has enhanced our ability to develop a Drilling Business Plan – AFE Well Design from weeks to hours.