Digitalization Roadmap for Indian Exploration and Production (E&P) Industry
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Vision Paper Digitalization Roadmap for Indian Exploration and Production (E&P) Industry Confidential – Not for external distribution June 2020 Preface Secretary, P&NG To meet the rising energy needs of the country, the domestic upstream sector has to play a vital role. In the last five years, government has introduced transformational policies to spur investments in the exploration and production sector. These policies include launch of open acreage licensing policy, policies for unconventional and enhanced oil recovery, apart from several steps towards ease of doing business. Apart from policies, there is a huge potential in E&P sector that can be tapped with the use of digitalization. Digital transformation is evolving as a key catalyst of bringing reforms in the world around us. Digitalization in numerous forms has enabled in bringing communities together and creating immense business opportunities in all spheres. Oil & Gas industry has played a pivotal role in the economic transformation of the world yet the use of digitalization in the E&P has been relatively conservative as compared with other sectors. I am of the opinion that there is a tremendous amount of untapped potential that can be leveraged with the help of digitalization in the E&P industry. Digital technologies can act as a key enabler to revive the industry from numerous crises that it has gone through in recent times, including depreciating oil prices, cost overruns and the latest being the COVID-19 pandemic crisis. Availability of vast talent pool in India offers tremendous opportunities for use of digital technologies in E&P sector. enhancing recoveries in the producing fields is one such area. With this pretext in mind, a unified taskforce comprising of over 30 organisations came together at the initiative of the Ministry of Petroleum and Natural Gas to bring together the ideas and pave a way forward for the adoption and use of digital technologies in Indian E&P context. The taskforce, has prepared a Draft Digitalization Road map Document has been put together. The idea is now to get public overview, comments and suggestions on the draft document in order to make it more compact and robust for adoption by stakeholders. Suggestions / Feedback from stakeholders will make the document rich. (Tarun Kapoor) Digitalization Roadmap for Indian Exploration and Production (E&P) Industry Brief Summary: With continuous technological innovation being core to the Oil and Gas industry, global E&P players have been swift to adopt and harness the power of digital in creating competitive advantage in the industry. The impact of leveraging digital initiatives will only grow as the industry continues to grapple with uncertainties, volatilities and external threats. So far, the adoption of digital has unlocked significant value across upstream activities for global E&P players across the value chain in the areas of exploration, drilling, project development, operations, HSSE, de- commissioning, etc. Indian E&P industry today is at an inflection point with policy reforms in last 5 years translating into fresh investment and commitment to help activate India’s Hydrocarbon Vision of increased self-reliance and energy security. Digital will play a pivotal role in realizing this vision as it will offer Indian E&P industry with the toolkit for next wave of growth and value unlock opportunity by transforming the core business processes, operating model and ways of working and by integrating technology and data for action-oriented decision making. A holistic and cautious approach to digital road-mapping, execution and implementation is critical to achieve desired value unlock. While technology and data would continue to be at core of digitalization, value realization from digitalization is sustained by change management and enabling governance. To enable digital across Indian E&P industry, all key stakeholders (government, regulator, operator, and oil field service providers) need to come together and work collaboratively to drive a partnership driven model for digital transformation to embed and flourish. A self-regulating task-force to push and catalyze the digital journey at an industry-level can pave way forward for more empowered and enriching digital success story in the Indian E&P industry, and potentially pave the way for digital transformations in other industries. About Digital E&P Roadmap Document: The intent of the digital roadmap document is to identify opportunities for digitalization across the upstream value chain through collaboration with the entire India E&P ecosystem. More than 30 organizations and institutions covering leading government bodies, regulator, leading Indian E&P players, management consulting companies, oil field service providers, educational institutions, and digital solution providers have come together in a first of its kind initiative to brainstorm, identify and define holistic digital agenda and use cases for the industry. The document is an outcome of multiple discussions between all stakeholders leveraging experience from digital pilots within respective organizations, novel technologies and global case studies. The draft of the vision paper is being released for inputs from the stakeholders. Your feedback or suggestions regarding the themes and content of this report will be appreciated, please reach out to [email protected] Revised Draft Vision Paper – Not for external distribution 1 Table of Contents Executive Summary ............................................................................................................................................. 4 1. Exploration & Production: Setting up the path for rejuvenation ................................................................. 6 2. Digital In E&P: New Way of Working ............................................................................................................. 9 3. Digital in Exploration, Field Development and Capital Projects ............................................................... 13 3.1 Transforming unstructured/legacy data into meaningful information ............................................. 13 3.2 Multi-client model for seismic survey enabled through cloud-system .............................................. 15 3.3 Cloud-based seismic data collection, processing and interpretation ................................................ 17 3.4 Cloud hosted exploration portfolio: From regional to basin to play level ......................................... 19 3.5 Real-time data transmission and analysis - Field to Desktop ........................................................... 21 3.6 ML driven sub-surface characterization & interpretation models..................................................... 24 3.7 Digital twin for integrated well planning and management .............................................................. 27 3.8 Digitally enabled exploration portfolio management ........................................................................ 31 3.9 Digitally driven integrated field development planning .................................................................... 32 3.10 Digital capital project management for integrated schedule and interface management ............. 34 3.11 Advanced analytics based Frac design optimization ......................................................................... 36 3.12 Integrated data management platform for drill planning ................................................................. 38 3.13 Real time operation centre (RTOC) for drilling to foster collaboration ............................................ 40 4. Digital for Reservoir Management, Operational Excellence and HSSE ..................................................... 45 4.1 Data Driven Reservoir Operations Management ............................................................................... 45 4.2 Big data driven polymer dosage optimization in Chemical EOR technique..................................... 46 4.3 Integrated field operations (Integrated view of the field performance from sub-surface, wells, surface networks and facilities) ........................................................................................................... 47 4.4 Integrated Asset modelling in field development: Subsurface and surface digital twin.................. 50 4.5 Automated selection and workflow for well workover ........................................................................ 53 4.6 Well testing automation and data management ............................................................................... 55 4.7 ML based prediction of well choking ................................................................................................... 57 4.8 Pipeline Integrity Management (leak detection and anomaly identification) .................................. 58 4.9 Non-contact magnetometry diagnostic of pipeline ............................................................................ 60 4.10 Artificial Lift performance surveillance and failure prediction ......................................................... 62 4.11 Drone-based surveillance of upstream/midstream assets and infrastructure ................................. 64 4.12 Predictive Maintenance of Pumps, Compressors, and other surface equipment ............................ 66 4.13 Full scale asset simulation on cloud ................................................................................................... 68 4.14 Efficient Asset management