Baker Hughes has announced the commercial release of its DeclineShift mature asset solution, which helps operators maximize capital efficiency and extend profitable production from their older oil and gas investments.
The DeclineShift solution boosts recovery and lowers operating costs rapidly and efficiently through a combination of detailed analysis of the asset and fit-for-purpose technology applications.
â€œAs wells and fields age, operating costs tend to rise as production declines. Operators have generally tried to meet this challenge by lowering cost per barrel, either by cutting costs or trying to improve production,â€ said Hans-Christian Freitag, V.P., Integrated Technology, Baker Hughes. â€œUnfortunately, the positive effects of these tactics are usually short-lived. The DeclineShift solution offers a more strategic approachâ€”one focused on maximizing capital efficiency.â€
The foundation of the DeclineShift solution includes a close examination of the areas that can have the greatest positive impact on the assetâ€™s overall economics, whether individually or collectively. The process focuses on three primary areas to increase the value of an asset: optimizing hydrocarbon flow from existing wells, maximizing production revenues and increasing economically recoverable resources.
Then, based on the operatorâ€™s economic objectives, Baker Hughes designs a customized solution for the asset. Each solution begins with the development of an accurate asset profile and applies only the necessary technologies to enhance the asset. A detailed operational plan is developed to minimize deployment time and production disruptionsâ€”helping to accelerate payback and grow the present value of the operatorâ€™s cash flow.
â€œBecause each unique DeclineShift solution leverages a very precise design process and execution plan, most can be implemented rapidly, with minimal disruption to a customerâ€™s ongoing operations. The results to date have shown that operators can extend the economic life of their mature assets beyond what they previously thought possible,â€ continued Freitag.
In one recent application, Baker Hughes designed and implemented a DeclineShift solution for an 80-year-old field in which production was declining 6% monthly, new wells were costly, and previous revitalization attempts had not yielded significant improvements. Baker Hughes developed and prioritized an assortment of production enhancement opportunities, including rejuvenating existing wells and accessing bypassed oil.
At the operatorâ€™s request, Baker Hughes assumed management of the field. The full solution included the drilling and completion of 30 new wells, 36 recompletions and 86 workovers of existing wells, and 77 new fracturing treatments. As a result of these efforts, the DeclineShift solution increased the operatorâ€™s field production 300% while reducing monthly decline rates 43%. Additionally, the efficient execution of the solution reduced costs related to ongoing production and field operation 57%.