Practical Aspects of Oil and Gas Well Planning and Cost Management (10 Days)

Introduction:

This course examines cost estimating and oil and gas well planning, focusing on the most practical working processes involved in exploring and producing oil and gas wells. The content emphasizes understanding the real-life aspects of well planning and costing, which are crucial for promoting efficiency and productivity in drilling while reducing risks and costs.

A well management plan is essential for site selection, geological analysis, and wellbore design, considering various technical, environmental, and legal aspects. This challenge is addressed through the coordination of geologists, engineers, and economists, developing a comprehensive approach to overcome the unique challenges of each task.

Risk management strategies are vital to protect people and organizations through cost estimates, ensuring that performance targets are achieved despite issues like equipment breakdowns, unexpected geological conditions, and environmental risks. All projects include cost control measures, as being overly optimistic about financial performance can be detrimental. Participants will learn about budget control, costing, and the importance of accurate forecasting at each stage of the oil and gas well lifecycle, from exploration and drilling to production and abandonment.

Today's learning also encompasses handling construction expenditures associated with CAPEX (e.g., drilling rigs, equipment, and materials) and operational costs (OPEX), including human resources, maintenance, and regulatory compliance concerning occupational health and the environment. Accurate evaluation of costs and plans is vital for securing funding, managing working capital, and controlling profits. Participants will also explore specific actions and factors necessary for effective oil and gas well estimation and planning.

Objectives:

After completing the Oil and Gas Well Planning and Costing course, participants will be able to:

• Apprehend the procedures of the oil and gas well planning process, including well design.
• Conduct site studies to identify oil and gas well drilling locations.
• Develop safe and expedient wellbore schematics.
• Formulate a cohesive structure for oil and gas well program documentation.
• Prepare adequate financial estimates for oil and gas well construction.
• Accurately prepare CAPEX and OPEX estimates.
• Control costs in all relevant projects.
• Detect drilling hazards and take mitigation steps.
• Utilize knowledge for effective project management.
• Comply with health, safety, and environmental regulations.

Training Methodology:

• Workshop
• Groups
• Simulations
• Excursions
• Case Study Analysis
• Scenario Enactment
• Fiscal Allocation for Induced Them
• Industry Practitioners as Guests

Course Outline:

Unit 1: Introduction to Well Planning:

• Description of the oil and gas well planning processes.
• Importance of strategic planning in oil and gas operations.
• Roles and responsibilities in oil and gas well planning.
• Stages of the well planning process from idea to realization.
• Interaction of geological information with engineering data.
• Preliminary site evaluation and associated studies for site viability.

Unit 2: Geological and Geophysical Considerations:

• Studying geology.
• Utilizing seismic data for oil and gas well planning.
• Identifying dangers when drilling a well.
• Analyzing reservoir properties.
• Selecting drilling locations through geophysical data.
• Integrating geological borehole data with oil and gas well engineering concepts.

Unit 3: Wellbore Design and Engineering:

• Understanding wellbore configurations.
• Designing for maximum drilling efficiency.
• Selecting drilling mud.
• Cementing and casing design.
• Ensuring wellbore safety and strength.
• Exploring trends in wellbore configuration technologies.

Unit 4: Cost Estimation and Budgeting:

• Details of CAPEX cost components.
• OPEX drilling costs.
• Estimating project expenditures in detail.
• Valuing costs accurately.
• Financial risk analysis and planning.
• Managing costs on the project.

Unit 5: Risk Management and Compliance Policy:

• Recognizing and evaluating drilling risks.
• Developing strategies to counteract risks.
• Environmental protection strategies.
• Compliance with national and global rules and policies.
• Forming backup plans.
• Requirements for recording and reporting.

Unit 6: Drilling Activities Management:

• Overview of drilling activities.
• Scheduling drilling programs.
• Managing drilling operations and supplies.
• Communicating with drilling companies and providers.
• Revising and improving drilling operations.
• Solutions for common operational problems.

Unit 7: Implementation and Cost Control Measures Expectations:

• Activities aimed at cost reduction.
• Practices for controlling costs and monitoring expenses.
• Cost analysis metrics.
• Engaging in cost control measures.
• Reducing non-productive time (NPT) through cost control measures.
• Case examples of cost management approaches.

Unit 8: Factors Likely to Affect Environmental Safety and Precautions:

• Addressing environmental effects of drilling processes.
• Implementing pollution prevention measures.
• Establishing standard operating procedures for drilling.
• Preparing and training staff in safety protocols.
• Emergency planning.
• Ensuring compliance with health, safety, and environment (HSE) regulations.

Unit 9: Post-Drilling Evaluation and Reporting:

• Guidelines for completing oil and gas wells or structural works.
• Reviewing post-drilling data.
• Analyzing oil and gas well testing results.
• Communicating drilling activities and results.
• Identifying best practices and lessons learned.
• Enhancing oil and gas well planning performance.

Unit 10: Project Closure and Decommissioning:

• Developing strategies for the well decommissioning stage.
• Understanding legal requirements for well abandonment.
• Implementing safe and effective decommissioning strategies.
• Planning for site reclamation after closure.
• Reporting costs at project closure.
• Evaluating successes and shortcomings of the project.

Conclusion:

This course on the planning and costing of oil and gas wells is structured to equip participants with practical skills and knowledge essential for effective planning and costing in this dynamic sector. Each unit delivers competencies necessary for managing oil and gas well projects comprehensively.