Weatherford International Plc said May 6 that its ForeSite production-optimization platform demonstrated $18 million in annual savings for a Fortune 500 producer by delivering measurable improvements in efficiency, uptime and production. The compelling combined results persuaded the operator to order a global rollout of Weatherford’s field-wide intelligence platform to maximize production across their U.S. and international operations.
Weatherford, in tandem with the West Texas operator, successfully implemented the ForeSite production-optimization platform enterprise-wide, leveraging existing field-data streams as a path to improving efficiencies for multiple forms of artificial lift. Demonstrated improvements included savings in equipment life and personnel gain through management-by-exception techniques.
“The customer’s objectives were clear,” Manoj Nimbalkar, global vice president, production automation and software, Weatherford, said. “One, the solution must accommodate multiple forms of production, including natural flow, rod lift, gas lift, and electrical-submersible pumps (ESPs). Two, Weatherford must create an enterprise-wide, data-agnostic optimization system to reach across multiple software systems and companies. Three, the solution must leverage historical data from the outgoing software and integrate real-time feeds from the existing Weatherford CygNet SCADA platform, as well as a competitor’s field-allocation and well configurator.”
The Weatherford production-optimization team collaborated with the operator to assess the production strategy and data needs across thousands of wells. Together, Weatherford and the operator agreed to a phased rollout of the ForeSite production-optimization platform, starting with an initial pilot that was governed by KPIs that would lead to further, enterprise-wide adoption.
Following the complete rollout, the operator expects an annualized savings of $18 million per year. These projections include a savings of $6 million in personnel efficiency, $7 million in increased equipment run-life, and an additional $5 million in revenue garnered from wells transitioned more quickly from natural-flow lift to artificial lift.
ForeSite was installed on a subset of wells—including natural flow, reciprocating rod lift, gas lift, and ESPs—and the platform seamlessly integrated all existing and historic data-management and planning systems into a single production-optimization platform. The resulting real-time efficiencies empowered the operator to manage all pilot wells, both productive and underperforming, by exception, leading to the multimillion-dollar savings in both production and uptime.
“The ForeSite pilot exceeded all KPIs and as a real result, the program was expanded to include nearly 1,000 wells in a Phase 1 rollout, which will be adopted enterprise-wide over the next two years,” Nimbalkar said.
Recommended Reading
Enverus: 1Q Upstream Deals Hit $51B, but Consolidation is Slowing
2024-04-23 - Oil and gas dealmaking continued at a high clip in the first quarter, especially in the Permian Basin. But a thinning list of potential takeout targets, and an invigorated Federal Trade Commission, are chilling the red-hot M&A market.
Mighty Midland Still Beckons Dealmakers
2024-04-05 - The Midland Basin is the center of U.S. oil drilling activity. But only those with the biggest balance sheets can afford to buy in the basin's core, following a historic consolidation trend.
CEO Darren Woods: What’s Driving Permian M&A for Exxon, Other E&Ps
2024-03-18 - Since acquiring XTO for $36 billion in 2010, Exxon Mobil has gotten better at drilling unconventional shale plays. But it needed Pioneer’s high-quality acreage to keep running in the Permian Basin, CEO Darren Woods said at CERAWeek by S&P Global.
Novo II Reloads, Aims for Delaware Deals After $1.5B Exit Last Year
2024-04-24 - After Novo I sold its Delaware Basin position for $1.5 billion last year, Novo Oil & Gas II is reloading with EnCap backing and aiming for more Delaware deals.
Mesa III Reloads in Haynesville with Mineral, Royalty Acquisition
2024-04-03 - After Mesa II sold its Haynesville Shale portfolio to Franco-Nevada for $125 million late last year, Mesa Royalties III is jumping back into Louisiana and East Texas, as well as the Permian Basin.