Brown Field Excellence: Leveraging Technology, Supply Chain and Human Resources in Transforming Asset Value

Abstract The Oil Mining Lease, OML-R, is situated in the Eastern Niger Delta on approximately 1,300 square kilometers, and has been in operation since the 1960s, with cumulative oil production of more than 1.1 billion barrels representing ca 50% of the estimated UR (ultimate recovery) of 2.3 billion barrels from a STOIIP (Stock Tank Oil Initially in Place) of over 4.6 billion barrels. The associated Oil and Gas Surface Processing Facilities were designed with an initial life expectancy of about 25 years but have been operated for over 60 years before the operatorship by Company-X started in 2021 with attendant significant equipment integrity issues and challenges of over-aged facilities in addition to rapid production decline (ca. 75% loss compared to the historical peak). The status simply fits into a classic brown field asset and requires a focused approach to managing the desired top quartile delivery. This paper shows how Company-X transformed the mature OML-R asset through Brown Field Excellence philosophy, focusing on value and not just doing activities. The approach that paid off includes (1) clear re-development strategy (2) re-vitalization of existing wells through reactivation of closed-in wells and advancement to multi-zone completions, (3) management of asset integrity transition from ‘end-of-Life’ to ‘life-extension’ (4) successful costs optimization of re-completion with Hydraulic Workover Units (HWU) instead of more expensive traditional rigs, with view to replication on upcoming workover portfolio execution (5) unleashing of possibilities by strategic spading / de-spading of Trains 1 and 2 of a NAG plant for accelerated project delivery, early gas and costs saving (6) improving supply chain management system and (7) adequate resourcing of highly experienced professionals for high delivery from the start of operatorship. The power of integration and end-to-end project management and execution reversed the downward trend that welcomed the current Operator at onset. The benefits over the past 4 years include doubling net oil production from less than 30 to over 50Mbopd without new drills and arrest of production decline in the first 100 days and currently aspiring to 60Mbopd production level. Others are improvement on reconciliation factor (RF) from ca. 30% to 99.8%, improved equipment reliability, over 60 well interventions per year for oil generation, improved well integrity through Preventive and Corrective Maintenances, achievement of ZERO High Risk wells in the OML-R, improvement from reactive to predictive maintenance approach, costs reduction and overall improved System Effectiveness (SE) of ca. 80%, highlighting the power of resilience in achieving our ambitions. This can be done repeatedly and replicated in Nigeria, with global extension of the best practices.