Spe 107918

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This paper was prepared for presentation at the SPE Latin American & Caribbean PetroleumEngineering Conference held in Buenos Aires, Argentina, 15–18 April 2007.

This paper was selected for presentation by an SPE Program Committee following review of information contained in a proposal submitted by the author(s). Contents of the paper, aspresented, have not been reviewed by the Society of Petroleum Engineers and are subject tocorrection by the author(s). The material, as presented, does not necessarily reflect anyposition of the Society of Petroleum Engineers, its officers, or members. Papers presented atSPE meetings are subject to publication review by Editorial Committees of the Society of Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this paper

for commercial purposes without the written consent of the Society of Petroleum Engineers isprohibited. Permission to reproduce in print is restricted to a proposal of not more than 300

words; illustrations may not be copied. The proposal must contain conspicuousacknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O.Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.

ProposalCerro Dragon is a mature Area located in the Argentine

Republic, 90 km to the West of Comodoro Rivadavia and 1,900 km to the South of Buenos Aires, with a surface of

3,480 km² and with 3,738 perforated wells.

Since its discovery in1958, and after a long history of production, a change of strategy on 1999 resulted in animportant increase in Production and Reserves

Decision making at every level, such as people health,environment care, and strategic, organizational, structural,operative and technological planning, was key for the rebirth

of this field.

The work is centered in how we handle the information, theentailment of the data bases and the use of systems we have

built to contribute to maintain the production growth of theCerro Dragón Asset.

Based on the field complexity we recognized that it wasnecessary to implement new tools that would allow us to make production and investments prognoses, integrating informationfrom different sources, as well as to detect improvement

opportunities.

The selected software tools allowed us to perform simulationsand dynamically survey the projects. The information used came from geological, geophysical, physical production,interventions, measurements, and automation databases,

among others. Some of them were developed during the 2

The selected software tools additionally let us integrate the

projects into the Long Term Plan, and Budget, takingadvantage of the virtuous Circle of Plan-Do-Control-Learn.

A project simulation is solved in a period substantially shorter

than the one it demands a conventional simulator, which is of great advantage at the time of analyzing different scenarios in

an area where the structural complexity and the meager petrophysical information are important barriers at the time of making a study.

The control and daily pursuit of the Projects through thesesystems have favored substantially the fast decision making,the correct lease of resources and a better operative answer.

To complete the description of our Optimization options other

tools and practices are described.

IntroductionCerro Dragon fields are located at the Northern flank of the

San Jorge Gulf Basin, in the province of Chubut and SantaCruz, Argentina.

Figure 1 Cerro Dragon Areas Location Plat

SPE 107918

Design and Surveillance of Development Projects Through Specific Software Tools:Importance of Data Management in Mature and Complex Fields in the Golfo San JorgeBasin, ArgentinaRicardo Mazzola, Isabel Cano Frers, and Dario R. Baldassa, Pan American Energy LLC; Jorge Valle and AlejandroLacivita, Interfaces SA; and Carlos A. Ponce, Alfredo F. Viola, and Miguel A. Laffitte, Pan American Energy LLC

R í o S e n g u e r

R ío D e s e a d o

R

ío

C h

i co

LagoMusters

Lago

Colhué

Huapi

PIEDRACLAVADA

KOLUEL KAIKE

EL VALLE

ANT.GRANDE

C.DRAGÓN

ANT.FUNES

El Cordón

L.Perales

L.Mesetas

El Tordillo

Escalante

Manantiales

Behr

C.Vasco

M.Magallanes

M.Espinosa

C.León

P.Truncado

El Huemul

CerroDragón

Zorro

LasFlores

Escorial

Ant.Grande

Cañadon

GrandeOriental

Buenos Aires

C.Minerales

PicoTruncado

LasHeras

Sarmiento

26

3

43

Valle

Hermoso

C.Perdido

40

PeritoMoreno

0 100 km

OIL FIELDS

CERRODRAGON

CERRO

DRAGON

Caleta

Olivia

SA N J OR G E

Comodoro

G O LF O

Rivadavia

ATLANTIC

OCEAN

ATLANTIC

OCEAN

PIEDRA CLAVADAKOLUEL KAIKE


Lago

R í o S e n g u e r

R ío D e s e a d o

R

ío

C h

i co

LagoMusters

Lago

Colhué

Huapi

PIEDRACLAVADA

KOLUEL KAIKE

EL VALLE

ANT.GRANDE

C.DRAGÓN

ANT.FUNES

El Cordón

L.Perales

L.Mesetas

El Tordillo

Escalante

Manantiales

Behr

C.Vasco

M.Magallanes

M.Espinosa

C.León

P.Truncado

El Huemul

CerroDragón

Zorro

LasFlores

Escorial

Ant.Grande

Cañadon

GrandeOriental

Buenos Aires

C.Minerales

PicoTruncado

LasHeras

Sarmiento

26

3

43

Valle

Hermoso

C.Perdido

40

PeritoMoreno

0 100 km

OIL FIELDSOIL FIELDS

CERRODRAGON

CERRO

DRAGON

Caleta

Olivia

SA N J OR G E

Comodoro

G O LF O

Rivadavia

ATLANTIC

OCEAN

ATLANTIC

OCEAN



Lago

Copyright 2007, Society of Petroleum Engineers

initial years (1999 – 2000).

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2 SPE 107918

The Cerro Dragón Contract Area, consists of approximately 50fields. The area has been operated by Amoco since 1959. In

1997, Pan American Energy, become the operator followingthe formation of a joint venture between Amoco (now BPAmoco) and Bridas. Cerro Dragon has been under development as an oil producing area since 1959 through a

combination of infill and extension drilling for additional primary oil production and Waterflooding Projects in some

selected fields. Approximately 60% of the area is now under water flood. Cumulative oil recovery to date from both primary and secondary development exceeds 760 million barrels. There are currently 2410 Oil producing wells and 405water injection wells in the area.

General Geologic Setting & Reservoir Description

The Cerro Dragon asset comprises 800,000 acres in a roughlyrectangular block located on the north flank of the Golfo SanJorge Basin, a Mesozoic extensional basin filled with Jurassiclacustrian and Cretaceous fluvial deposit with Tertiary

compression and wrenching superimposed on earlier extensional features.

The main reservoir consists of sandstones of the ComodoroRivadavia Formation and altered tuffaceous sandstones and siltstones in the Mina Del Carmen Formation.

Hidrocarbons Traps consist of tilted horst blocks, faulted

anticlines and structurally enhanced stratigraphic pinch outs.

Wells are produced commingled from stacked individualreservoirs 1 to 8 meters thick, each one with different initial

reservoir pressure and fluid properties and contacts.

Figure 3. A schematic cross-section show the Field complexity

Some keys of the Cerro Dragon rebirth

A Development Master Plan

3D Record and Processing

An electrification plan

Facilities expansion

DATA MANAGEMENT AND SOFT

INTEGRATION

In 1999 more than 90 % of the fields and wells informationwas available only in hard copies, the challenge was

integrate it into Databases.

First step: Digitalization of old logs

Develop and copy Wells File

INFOPROD and BDIEP data entry (3500 wells)

Detailed geological studies in the waterflooding

blocks

Second step:A virtuous circle “Planning , Doing, Control, Learn”

was a very useful tool, associated with more friendly and empowered softwares. Sotware tools objectives goals:

1. Adjust the Production Forecast2. Improve CAPEX and OPEX3. Identify and Qualify the information required to

share in the new Databases.

30 JUL 200630 JUL 2006

Cuenca San Jorge – AreaCerro DragónHistoria de Producción y Actividad

C

A N

T I D

A D

D

E P

O

Z O

S

P R O

D

U

C T O

R E

S

5

10

200

1400

1000

600

1800

2000

2200

5

10

200

1400

1000

600

1800

2000

2200

1960 197519701965 1980 1985 1990 20001995 2005

TOTAL DE POZOS EN

PRODUCCION

TOTAL POZOS

INYECTORES

WI

NUMERO DE EQUIPOS DE PERFORACION

WP

1960 197519701965 1980 1985 1990 20001995 20051960 197519701965 1980 1985 1990 20001995 2005

TOTAL DE POZOS EN

PRODUCCION

TOTAL POZOS

INYECTORES

WI

NUMERO DE EQUIPOS DE PERFORACION

WP

400

1960 197519701965 1980 1985 1990 20001995 20051960 197519701965 1980 1985 1990 20001995 20051960 197519701965 1980 1985 1990 20001995 2005

P R

O

D U

C

C

I O

N

( B O

P D

)

12500

25000

50000

62500

75000

37500

87500

100000

200

V E N

T A S D

E G

A S

( M

M

f t 3 / d )

100

PRODUCCION TOTAL

DE PETROLEO

VENTAS DE GAS

RECUPERACION SECUNDARIA

300

OILOIL

IWIW

GasGas

P R

O

D U

C

C

I O

N

( B O

P D

)

12500

25000

50000

62500

75000

37500

87500

100000

200

V E N

T A S D

E G

A S

( M

M

f t 3 / d )

100

PRODUCCION TOTAL

DE PETROLEO

VENTAS DE GAS

RECUPERACION SECUNDARIA

300

OILOIL

IWIW

GasGas

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SPE 107918 3

Figure 4. A virtuous circle

The core of the new way for our work was SAHARA afriendly software to history matching the production wells and forecasting. Along the years this software was empowered with new options of connectivity with our data bases and new

options of calculations and simulation became available.Waterflooding Projects, Workovers and Drillings Plan weresimulated block by block in each field of Cerro Dragon.

Figure 5. Inputs and outputs from SAHARA

The source of the Geological models was Landmark Software, the production and operation information sourcewas INFOPROD , the completion and work over informationincluding test was BDIEP SLPOS, the beam pumpinginformation source was Dynapack . For each one of these

sources data loading processes were added to SAHARA.The simulation time in Sahara was reduced dramaticallycompared with conventional simulators, less information or simplification of it to simulate is very important when youhave around a hundred layers in each well, with different fluid properties, only a SFT pressure by layer and completion or

workover test for each one by swabbing.

Figure 6. History Match and forecast

Figure 7. Some case of design

Figure 8. How you see each layer and the injection pattern

WF MANGEMENT TOOLS

INFOPROD(PAE Production DB)

DYNA PACK(Artificial Lift DB)

LANDMARK(geological & geophysical)

BDIEP(Drlg, WO & Completion DB)

SAHARAReservoir Simulation

Reservoir Management

New Projects Simulation

Current Pro ject Management

Forecasts & Reserves Estimation

i-Choke

Cuenca del Golfo de San Jorge (C.G.S.J)

Control

DoingPlannig

Learning Control

DoingPlannig

Learning

New Tools

TOTAL FIELD HISTORY MATCH

q lP [m ³/ d] q o P [m ³/ d] q lA lP [m ³/ d] q o AlP [m ³/ d]

10

100

1000

10000P C D-80/P C D-81/P C D-149/P C D-153/...

19 65 19 70 19 75 19 80 19 85 19 90 19 95 2 00 0 2 00 5 2 010 2 015 2 02 0 2 02 5

Liquid rate

Oil rate

Oil rate forecast

Liquid rate forecast

Oil production

wells

Injectors wells

Injection rate

forecastInjection

rate

Sahara project expansion

Design & surveillance

CDIII: Expansion Horizontal

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

PCD-80

PCD-81

PCD-149

PCD-153PCD-159

PCD-160

PCD-164

PCD-173

PCD-179

PCD-180

PCD-183

PCD-184

PCD-186

PCD-187

PCD-190

PCD-191

PCD-192

PCD-195

PCD-196

PCD-220

PCD-240 PCD-257

PCD-258

PCD-259

PCD-273

PCD-274PCD-804

PCD-832

PCD-845

PCD-847

PCD-848

PCG-26

PCG-86

PCG-109

PCG -113

PCG-153

PCG-157PCG-251

PCG-819

PCD-850

PCD-852

PCD-851

PCD-0A PCD-0B

PCD-0D

PCD-0F

PCD-0H

PCD-0IPCD-0J

PCD-0K

PCD-0L

PCD-0M

PCD-0P

PCD-0O

PCD-0R

PCD-0T

Arena J4E

The layer wf

was improvedwith new

injectors and

infill well

perforation

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4 SPE 107918

The exploitation status, dynamic and statics parameters of thewells, dinamometer studies, artificial lift system conditions,monitoring, Pulling Frequence, Production Meeting

comments, references, bottomhole installation, operatingconditions, changes, formation water injection by injector welland by layer can be monitored very quickly. Early detectioncan be achieved for taking right decisions.

0

400

800

1200

1600

2000

2400

0.1

1

10

100

1000PCD-172

96 97 98 99 00 01 02 03 04 05 06 07

Figure 9. Well producing Chart

For Injector Wells:

In these charts it is possible to detect water distribution problems and injectivity reductions.

qw iP PC-49[m³/DC] qw iC PC- 49 110[m³/DC] qw iC PC- 49 113[m³/DC]

qwiC PC-49 115[m³/DC] qwiC PC-49 150[m³/DC]

1

10

100

1000PC-49

2000 2001 2002 2003 2004 2005 2006 2007

Figure 10. Well Injector Chart

Figure 11. How look a view of a typical well sketch

Figure 12. Layers view in a 3D Screen

The output of the SAHARA integrated data and simulation

are :1. Drilling Plans2. Workover Plans3. Conversion to injector Plans4. Production and Injection forecast5. Several Scenarios

All the SAHARA output is loaded into the P&CG system(Planeamiento & Control de Gestión system) where theanalyst can manage the budget and CAPEX Expenditures to

prepar the Long Term Plan.

Sahara surveillance - Well analysis

Well sketch

Sahara surveillance

3-D visualization

Wells

Sand J4

Sand

M1

Sand

M7

Sand O6

Sand S4

Workover- Puling

Perforations JobsLiquid Production &

Produciton tests

Oil Produciton &

Production Tests

Sumergency

Artificial Lift

System changes

Decisions taken

Total Water injected

Layer 115

Layer 110

Layer 113Layer 150

Workover Jobs

Waterfooding

response

Artificial List system

Chan e to ESP

Lifting

Optimization

Water Injection Distribution

per Mandrel and Layer

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SPE 107918 5

Figure 13. Sumergency Map

Figure 14. Quickly visualization of Drilling and WO Programs

Figure 16. Underdeveloped status screen – Bubble map

Figure 15. Underdeveloped status screen

Which tools are currently under development :

Facilities visualization

WETS ™module evaluation

Which are the challenges to addres in the future:

Export data to BDRC (Certified Reserves Data Base)

Software utilities integration as:

o Well type design

o Dynamic Pressure Calculation in pipes

o Gas material balance

Other systems and software developments support our daily

work

Figure 16. Pump off and beam pumping data visualization

Figure 17. Facilities Control Panel

Drilling & WO surveillance

programm

0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

I-3

I-2I-1

PCG-949

PCG-948

PCG-924

PCG-939

PCG-938

PCG-937

PCG-935

PCG-936

PCG-934

PCG-895

PCG-927

PCG-868

PCG-920

PCG-922

PCG-919 PCG-921

PCG-892

PCG-888

PCG-891

PCG-889

PCG-890

PCG-884PCG-882

PCG-878

PCG-875

PCG-874

PCG-876

LOCPCG-94

LOCPCG-68

LOCPCG-64

LOCPCG-52

LOCPCG-208

LOCPCG-104

LOCPCG-102

PCG-872

PCG-871

T-116

T-106

PCG-866

PCG-865

PCG-864

PCG-858

PCG-856

PCG-855

PCG-854

PCG-853

PCG-852

PCG-850

PCG-845

PCG-844

PCG-841

PCG-840

PCG-838

PCG-835

PCG-828

PCG-826

PCG-816

PCG-815

PCG-812

PCG-811

PCG-810

PCG-809

PCG-808

PCG-807

PCG-802

PCG-801

PCG-710

PCG-709

PCG-708

PCG-707

PCG-704

PCG-703

PCG-702

PCG-281

PCG-280

PCG-279

PCG-277

PCG-276

PCG-275

PCG-267

PCG-266

PCG-264

PCG-261

PCG-243

PCG-236

PCG-229

PCG-224

PCG-223

PCG-222

PCG-221

PCG-220

PCG-219

PCG-213

PCG-212

PCG-209

PCG-205

PCG-188

PCG-187

PCG-183

PCG-162

PCG-161PCG-159

PCG-156

PCG-154

PCG-147 PCG-146

PCG-145PCG-144

PCG-142

PCG-138

PCG-137

PCG-136

PCG-128

PCG-125

PCG-121

PCG-112

PCG-107

PCG-93

PCG-91

PCG-90PCG-87

PCG-81

PCG-79

PCG-78

PCG-71

PCG-70

PCG-69

PCG-65

PCG-63

PCG-61

PCG-60

PCG-59

PCG-54

PCG-51

PCG-49

PCG-48

PCG-47

PCG-46

PCG-45

PCG-42

PCG-41PCG-40

PCG-39

PCG-38

PCG-37

PCG-36

PCG-25

PCG-23

PCG-22

PCG-21

PCG-20

PCG-19

PCG-18

PCG-17

PCG-16

PCG-15

PCG-14PCG-12PCG-11

PCG-10

PCG-9PCG-8 PCG-7

PCG-6PCG-5PCG-4

PCG-3

PCG-2PCG-1

ICG-1

productor

Cañadón Grande II West

2005

2003

2006

2004

Drilling Productor

Adecuación

Conversión Inyector

Drilling Inyector

OIL

GASWATER INJECTOR

DRYLOCATIONOLD LOCATIONABANDONED-OILSHUT-IN-GASSHUT-IN-OILSHUT-IN-WATER DRILLING-OR-TESTING

SHUT-IN-INJECTOR

Drilling Productor: 4/4

Drilling Inyector: 7/8

Conversión Inyector: 4/4

Adecuaci ón Produc tor: 26/43

Adecuaci ón Inyector : 9/9

Locación P1

Locación P2

Locación P3

Sahara surveillance

Underdeveloped status

SITU surveillance system

Well following up

SITU surveillance system

Facilities following up

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6 SPE 107918

Figure 18. Beam pumping data visualization

THE PRODUCTION CYCLE AND INJECTIONCOMPLEXITY IN TWO FIGURES

Figure 19. Cerro Dragon production cycle

1,850 Beam pumped wells

30 PCP pumped wells

450 ESP pumped wells

2 Gas production wells

70 Oil and gas Stations

2 Oil treatment Plants

1 Gas Treatment Plant

Figure 20. Subsurface injection installation

405 water injection wells

19 injection plants

18 water treatment plants

Conclusions

Integrated data management is one of the keys of the

Cerro Dragon rebirth.

A flexible and friendly simulator with connection toour data bases gives us a power tool to make good decisions.

Databases according the field complexity and needs

is the best way

The virtuous circle is the best tool of our teams tocomplete the targets.

Dynapack surveillance

Well analysis

Production Cycle

2 MAIN TREATING PLANTS

AND ADITIONAL

WATER SEPARATION PLANTS

TO CALETA CORDOVA TERMINAL (SALES)

WATER

WATERFLOOD PROJECTS

INJECTION PLANTS

OIL

WATER

DISPOSALS

PROD. WELLS

SATELLITE STATIONS

FLUID

OIL+WATER+

GAS

INJECTION

WELLS

FIELD GAS SYSTEM

2 MAIN TREATING PLANTS

AND ADITIONAL

WATER SEPARATION PLANTS

TO CALETA CORDOVA TERMINAL (SALES)

WATER

WATERFLOOD PROJECTS

INJECTION PLANTS

OIL

WATER

DISPOSALS

PROD. WELLS

SATELLITE STATIONS

FLUID

OIL+WATER+

GAS

INJECTION

WELLS

FIELD GAS SYSTEM

Flooded sandFlooded sand



Tension Packer Tension Packer Injection mandrel with flowInjection mandrel with flow

regulator valveregulator valve

Tension Packer Tension Packer

Ancho r Packer Ancho r Packer

Subsurface injection installation

Injection histories analisys

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SPE 107918 7

Acknowledgements

Thanks are due to:

PAE Cerro Dragon Development Reserves Teams becausethis paper reflect their hard daily work.

The PAE facilities and automation team for improving the data

loading and databases operation.

The PAE IT Team for high quality systems and communications.

INTERFACES Management and design Team because

they’ve working along many years to improve and integrateinto customized software for their and our ideas and needs.

References

1. Ezequiel Massaglia, Dario Baldassa, Carlos Ponce,

Bernabé Zalazar. Injector-Well Completion Designs for Selectively Waterflooding up to 18 Zones in aMultilayered Reservoir: Experience in the CerroDragón Field. SPE paper 99997 presented at the 2006SPE/DOE Symposium on Improved Oil Recovery held in Tulsa, Oklahoma, U.S.A., 20–26 April 2006.

2. J.P. Martins, SPE, J.M. MacDonald, C.G. Stewart, SPE,and C.J. Phillips, SPE, BPExploration (Alaska) Inc. TheManagement and Optimization of a Major Wellwork Program at Prudhoe Bay. SPE paper 30649 , 1995.

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Spe 107918