RESERVOIR MANAGEMENT

EMPHASIZES PEOPLE,
TECHNOLOGY AND INNOVATION
Hussain A. Al-Faddagh
and Gordon Tobert

Hussain A. Al-Faddagh

Al-Faddagh is supervisor for the Hawiyah and

Uthmaniyah Unit of the Gas Reservoir Management
Division. In 1984 he graduated from the University of
Tulsa in Oklahoma, with a BSc in petroleum engineering.
Al-Faddagh has completed assignments in production
engineering and drilling and workover engineering. He was
the team leader in charge of the development of Shaybah
field. In 1995-1996 he was chairman of the Saudi Arabia
Section of the Society of Petroleum Engineers (SPE).
Tobert is a petroleum engineer in the Reservoir
Management Department. In 1980 he graduated from
Texas A&M University with a BSc in petroleum
engineering. His assignments have included Berri field,
Abqaiq field and Khurais Complex development. In
1998-1999 Tobert was chairman of the Saudi Arabia
Section of the SPE. Prior to joining Saudi Aramco in
1991, Tobert worked for Tenneco and Fina on their
Gulf Coast gas properties.
ABSTRACT

Gordon Tobert

Saudi Arabia owns 25 percent of the worlds oil reserves and is a reliable supplier of
energy. Economists predict world oil demand will rise from 76 million barrels per
day (MMBPD) in 2002 to 90 MMBPD by 2010. Saudi Aramco supplies 12 percent
of the world oil demand with a capacity to produce 10 MMBPD. Saudi Arabias
policy is to use its large oil reserves to ensure market stability as world demand
increases. In addition, economists predict the Kingdoms internal demand for
natural gas will increase substantially during the decade. A gas program is in place
to discover and develop reserves to meet gas demand and advance national
economic growth. Saudi Aramcos energy reserves are its primary assets. Asset
teams engaged in the reservoir management process undertake a stewardship role
for those reserves. The reservoir management process is a set of decisions and
operations by which an asset team characterizes, evaluates, develops, produces and

This is a visualization of the Arab C reservoir in Qatif field with wells entering the reservoir. Qatif field development is the story of an asset team integrating
technology into a comprehensive plan. Visualization capabilities are an important part of a platform that enable team members to share multidisciplinary
information. Shared information enriches contributions from every team member.

monitors a hydrocarbon reservoir from discovery until

abandonment. Saudi Aramcos reservoir management
standards guide decisions and plans throughout the
reservoir life (Saudi Aramco E&P, Reservoir Management
Guidelines and Standards Manual). The main objectives of
the reservoir management process at Saudi Aramco are to:
Meet supply commitments;
improve hydrocarbon recovery; and
increase upstream efficiency.
Asset team members include geoscientists, lab
scientists, information technology (IT) specialists, as
well as engineers experienced in safety
and the environment,
drilling,
production,
reservoir
simulation and
reservoir
management. The
latter undertake the
coordination role within
the multidisciplinary team,
by defining reservoir
depletion strategies and devising field
development plans. This text presents the
reservoir management process from their
perspective.

PLANNING FOR A BRIGHT TOMORROW

Reservoir strategies and development plans set the
framework for managing a reservoir. Reservoir strategies
set out long term goals and objectives. Development plans
fill in the implementation details of where and when to
drill wells, expected production and injection rates and
anticipated reservoir pressures. Asset teams update
strategies and plans when new information supports an
enhanced geological interpretation or engineering
analysis. Creative ideas and innovation are rewarded as
ways to achieve reservoir management objectives with
increased efficiency.
Knowledge about a reservoirs behavior increases
continuously throughout its productive life. Seismic,
wireline logs, well testing and production and
injection data all provide descriptive information
about a reservoir. A proactive data
acquisition program, including
(continued on page 14)
Horizontal and multilateral wells put a larger
footprint into a reservoir than do vertical wells.
Long reservoir contact increases productivity
and reduces field development costs by requiring
fewer wells, and it also improves sweep and
recovery. Progress is impossible without change
and asset teams apply horizontal well innovations as
they emerge. Saudi Aramcos reservoir management
process encourages innovation.

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 11

Saudi Arabia is a reliable supplier of energy. Saudi Aramcos state-of-the-art technology surface facilities, such as Zuluf GOSP-3 (Gas/Oil Separation Plant) shown
here, support this reputation. Oil wells flow to a GOSP where the produced fluid is separated into oil, gas and salt water. The reservoir management process
bridges subsurface and surface engineering requirements. It does this by providing engineering parameters, such as production rates, wellhead pressures and plateau
life, which are included in the design of large capital expenditure items like this offshore GOSP.

The area of Saudi Aramcos operations encompasses the entire

Kingdom of Saudi Arabia including territorial waters in the Arabian
Gulf and Red Sea. This operational area is equal to twice the size of
Egypt or three times the size of Texas. The map shows the
companys oil and gas fields. Most of the fields are located in the
Eastern Province. Recently discovered fields are located in the
Central Province near Riyadh.
Active fields include Ghawar and Safaniya, the largest onshore
and offshore fields in the world, respectively. The geological types of
reservoirs range from platform carbonate reservoirs in Ghawar field
to deltaic sandstone reservoirs in Safaniya field.
Field developments include deep, high pressure, low permeability
and sour non-associated gas reservoirs. The broad array and
different types of reservoirs cover the full spectrum of rock and fluid
properties.

12 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

The discovery dates of the

six oil producing areas are:
Ain Dar 1948
Haradh 1949
Uthmaniyah 1951
Shedgum 1952
Hawiyah 1953
Fazran 1957

Integration of well log,

core and 3D seismic
results contribute to a
comprehensive geological
model of the reservoir.

Vertical fractures and a

leached stratiform
interval show in this
outcrop of the Arab D
member. These features
flow at high rates at
depth and influence
reservoir strategies.

A geological model with

robust characterization
improves the accuracy of
reservoir performance
predictions by reservoir
simulation.

Seismic interval velocity

volume reflects the
geological interpretation.

A geocellular geological
model shows the variable
distribution of porosity in
Ghawar field.

The mission of reservoir management at Saudi Aramco is to maximize the economic recovery of the companys energy assets by optimizing reservoir strategies and
development plans over the reservoir life cycle. Multidisciplinary asset teams use state-of-the-art technologies to develop and reliably produce energy for Saudi
Aramco in an efficient, safe and environmentally responsible manner.

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 13

Workflow among engineers and geoscientists occurs in feedback loops to provide comprehensive and integrated reservoir management. Information technology and
the Internet are having a beneficial impact on the reservoir management process as integration of real time information into the reservoir management process
improves decision quality.

(continued from page 11)

supervisory control and data acquisition (SCADA) systems,

serves as the eyes and ears of the reservoir management
team to monitor reservoir behavior. The reservoir
management process transforms reservoir data into
integrated geological and reservoir simulation models to

predict productive capacity and to improve hydrocarbon

recovery in planning for a bright tomorrow.

BUILDING ON SUCCESS
Exciting opportunities exist at Saudi Aramco to apply a

Lab scientists conduct rock and fluid studies in Saudi Aramcos state-of-the-art Research and Development Center. Reservoir management teams use lab study
results to update reservoir characterization, refine the initial reserves evaluation and plan field development in a best practices manner.

14 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

R E S E RV O I R M A N A G E M E N T P R O C E S S

ECC is equipped with the energy industrys most advanced computing systems.
The energy industry and Saudi Aramco are power users of computers to find
and develop energy, as well as to increase upstream efficiency.

comprehensive and integrated approach to reservoir

management in the development of giant fields. Saudi
Aramco commissioned Shaybah field in 1998 and the
development of Qatif field started in 2001. The Qatif asset
team utilized lessons learned from the successful
development of Shaybah field when it formulated its
development plan.
Asset teams provide solutions that achieve business
results by applying carefully selected technology
accelerators (Collins, J., Technology and Creativity).
Dedicated professionals work together and build on a
tradition of success. They are the heart of the reservoir
management process at Saudi Aramco. It is an effort
focused to manage Saudi Arabias reservoirs for the benefit
of the Kingdom and the world.

The extrapolation of current and emerging trends in

reservoir management points to a process that is
increasingly multidisciplinary, integrated, technology based,
information loaded and real time. The process creates
business value for Saudi Aramco by leveraging these trends
to meet challenges that include developing difficult-toproduce reservoirs and improving hydrocarbon recovery in
mature reservoirs.
Key sub-processes of the reservoir management process
(RMP) are:
Reservoir characterization
Reserves evaluation
Reservoir simulation
Development and optimization
Reservoir monitoring
The sub-processes are active in each stage of the
reservoir life cycle. Reservoirs in Saudi Arabia are in one of
three stages: field appraisal, development or production.
The following sections outline the three stages and
selectively highlight the five sub-processes.

F I E L D A P P R A I S A L S TA G E
The field appraisal stage starts when exploration
geoscientists discover oil or gas and it ends when company
management approves a development plan. An asset team
participates in field delineation and makes an initial
evaluation of reserves. Field appraisal moves to the
development stage if Saudi Aramco needs a new fields
production to meet supply commitments. During the field

S T E WA R D S O F A V I TA L R E S O U R C E
Saudi Arabia possesses the largest oil accumulation in the
world and Saudi Aramco manages all but a small fraction
of the Kingdoms energy reserves. Reserves at the end of
2001 totaled 260 billion barrels of oil and 224 trillion
cubic feet of gas. Saudi Aramco managed 81 fields and 315
reservoirs in the first half of 2002.
Reservoir management plays an important role in the
companys stewardship of the Kingdoms reserves.
Consistent with this role, the reservoir management vision at
Saudi Aramco is to be an industry leader in the application
of best-in-class reservoir management practices. The vision
guides professionals to create business value by building
emerging technologies into the reservoir management
practices (Saleri, N. G., Innovative Technologies).

Reservoir visualization included an integrated geocellular model. The Khurais team

used the tool to match wellbore options to the depositional environment and
structure, thereby improving the probability of achieving development plan rates.

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 15

appraisal stage, the reservoir management process provides

engineering parameters that are included in the design of
surface facilities.

P R O P E RT I E S A N D R E S E RV E S
Lab scientists conduct rock and fluid studies to gather the
full spectrum of reservoir properties of a new energy
resource. Saudi Aramcos state-of-the-art Research and
Development Center is equipped to make the required rock
and fluid measurements. The asset team uses the results to
update the initial reserves evaluation. This updated
evaluation and the geological model serves as the
foundation for reservoir simulation.
Data acquisition is important in each reservoir stage.
During field appraisal it is critical for an asset team to develop
an accurate catalog of initial reservoir properties. Basic data
requirements serve as input and a baseline for subsequent
reservoir engineering and reservoir simulation studies.

R E S E RV O I R S I M U L AT I O N
Khurais Complex consists of Abu Jifan, Khurais and
Mazalij fields and is the field example for this stage.
Khurais field is 56 miles (90 km) long and 7 miles (11 km)
wide and is the largest of the three fields. The Khurais team
devised a comprehensive development plan in 2001 for
these underdeveloped fields.
Due to the large scale of Saudi Arabias fields, reservoir

simulation is important for optimizing plans in the field

appraisal stage. Because a field is new, however, the
challenge is having sufficient production data for a
meaningful history match. Without the calibration of a
good history match, simulation in prediction mode provides
sensitivities with considerable uncertainty. Several decades
of low rate production reduced this risk in the case of
Khurais Complex.
The technical basis for the Khurais development plan
was a simulation study run on Saudi Aramcos in-house
developed Parallel Oil Water & Gas Reservoir Simulator
(POWERS) utilizing Massive Parallel Processing (MPP)
technology. The 4 million cell Khurais simulation model
was the worlds largest active model in 2001. Multimillion
cell models are under development for Ghawar, Safaniya
and all active fields.
The 4 million cell Khurais full field simulation model
and the geological model had the same resolution. The
POWERS simulator has the ability to incorporate full
resolution geocellular models. This improves the history
match and increases predictive accuracy. POWERS also
provides rapid turnaround in the analysis of complex
development scenarios, running Khurais history and 25
years of prediction in 16 hours.
Saudi Aramco maintains reservoir simulation models
for its active oil and gas reservoirs and for reservoirs
under appraisal for development. Asset teams
continuously refresh active field models with updated
geological, laboratory, seismic and production data.
POWERS creates business value by providing accurate

Members of the Khurais team use 3D visualization to review reservoir depletion and pressure maintenance strategies for the field development plan.

16 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

The illustration shows the sequence stratigraphic framework of the Shuaiba carbonate reservoir in Shaybah field. It depicts the correlation of the major depositional cycles
and the distribution of reservoir rock types within each cycle. The formation was deposited on gentle ramp margins of an intrashelf basin. Subtle basement tectonics
created several northeast trending depositional blocks with rudist buildups. Rudists, related to modern day oysters and clams, lived in the Mesozoic and became extinct
with the dinosaur. The depositional framework ranges from lagoonal (blue), through the rudist barrier complex (orange), to open marine rock types (green).

and rapid analysis of reservoir management options across

the reservoir life cycle.

COMPUTING REQUIREMENTS
Asset teams centered in the Exploration and Petroleum
Engineering Center (EXPEC) have large reservoir
simulation and seismic data processing requirements. The
EXPEC Computer Center (ECC) provides the computing
power to meet the requirements of both reservoir
simulation and seismic data processing. ECC had
computing capabilities of 15 million floating operations per
second (FLOPS) and 20 billion bytes of online storage in
1983. By 2002, the ECC raised its processing and online
storage capacity to one trillion FLOPS and 600 trillion
bytes, respectively. The first supercomputer was a Cray
acquired in 1984. A series of ever-faster Cray, IBM and SGI
supercomputers followed over the years.
ECC is equipped with the energy industrys most advanced
computing systems. A respected website (www.top500.org)
that tracks the worlds 500 most powerful computer systems
ranks ECC as one of the foremost facilities of its type in the
world. This comparison includes the giant computer facilities
at Lawrence Livermore National Laboratory, Sandia
National Labs and Los Alamos National Laboratory.

ENHANCED SEISMIC IMAGES

Supercomputers make enhanced images of reservoirs,
located a mile or more underground, by processing vast
amounts of seismic data. Advanced and resource intensive
processing techniques are required to accurately image
reservoirs that are deep, or are located in areas of complex
geology. The increase in seismic data at Saudi Aramco has
been truly astounding. The number of seismic traces (the
form in which data is delivered from seismic field crews)
grew from approximately 150 million traces per month in
1998 to two billion in 2002. More seismic data means high
resolution images of the subsurface, which in turn
maximizes the probability of drilling successful wells.

MEGA-CELL MODELS
Mega-cell simulation models require immense computer
processing power and the upward direction of this trend
within the industry is clear. The 4 million cell Khurais
model was the largest active model in the world at the end
of 2001. It is reasonable to forecast reservoir simulation
models with 25 million cells in the near future and to
predict reservoir simulation models having 100 million cells
within five to ten years. Saudi Aramco intends to be a
leader in this trend. POWERS enables the analysis of giant
reservoirs in fine detail. POWERS accomplishes 50 year

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 17

(and longer) prediction runs in hours, without the need to

scaleup reservoir attributes. This allows reservoir
management engineers to use improved reservoir characterizations, which model actual reservoir heterogeneities,
thereby increasing predictive accuracy.

V I S U A L I Z AT I O N A N D I N T E G R AT I O N
Saudi Aramco utilizes a multidisciplinary and integrated
asset team approach in the reservoir management process.
Reservoir management teams include geoscientists, lab
scientists, IT specialists, as well as engineers experienced in
safety and the environment, drilling, production, reservoir
simulation and reservoir management. Team members
leverage their diverse areas of expertise to add value when
analyzing volumes of reservoir data using advanced
computer applications.
Geophysicists and geologists use seismic and geological
data to develop structural and stratigraphic interpretations.
They integrate their insights to create rigorous and
enhanced geological models. These models are used to

predict geobodies, locate areas of high and low porosity

and permeability, and focus in on high quality reservoir
zones. The geological models are also important for
wellbore planning and geosteering.
Reservoir simulation models that use dynamic data to
predict reservoir performance provide another piece of the
development plan puzzle. Engineers use dynamic data to
condition geological models to actual reservoir parameters.
The conditioned geological model makes it easier for the
simulation model to match past production and it improves
the accuracy of the history match. The benefit is increased
accuracy of the simulation model in prediction mode when
the team analyzes various production scenarios.
An asset team then integrates the optimum production
scenario into the final development plan. An IT specialist
facilitates the efforts of engineers and geoscientists who
collaborated in a visualization center. Team members
analyze reservoir and geological variables in a virtual model
of the reservoir and evaluate numerous wellbore type and
placement options.

A montage of Shaybah field shows the accomplishment of developing a large oil operation in the Empty Quarter. The 500,000 BPD Arab Extra Light increment
cost billions of dollars to commission. The giant fields of Saudi Arabia add a noteworthy dimension to the importance of continuous learning and innovation.
Remote locations and a harsh environment combine to produce development commitments of labor and capital seldom found elsewhere. Saudi Aramco uses stateof-the-art technologies to develop and reliably produce energy in an efficient, safe and environmentally responsible manner.

18 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

D E V E L O P M E N T S TA G E
The development stage begins when company management
approves field development plans. The stage continues
through commissioning and ends with early production.
The end of early production corresponds to 25 percent
depletion of reserves. The goal is to deplete hydrocarbons
from the bottom of the reservoir to the top. Asset teams
examine development plans continuously because learning
amidst rapid technological change fosters creative ideas and
innovation.

D E V E L O P M E N T A N D O P T I M I Z AT I O N
A significant change is occurring in the field development
stage due to the influence of a competitive energy
marketplace and emerging technologies. These forces are
driving reservoir management to adopt a learning model
that carefully manages new trends and selects emerging
technologies that optimize the development of a field
(Saleri, N. G., Learning Reservoirs). Oil and gas prices in
the 1990s were low and volatile. The rapid drop in oil
prices that accompanied the Asian economic crisis in 1998
typified the industrys experience.
Inflation-adjusted oil prices in 1998 were lower than
before the 1973 price increase. At the same time, 3D
seismic, horizontal well and information technologies were
making a business impact on the energy industry. Operators
embraced emerging technologies as a way to increase
upstream efficiency during a period of low and uncertain
prices. Oil prices stabilized at higher levels by 1999, but the
push for increased efficiency continued and gained
momentum when a recession two years later reduced oil
demand in the worlds major economies.
The giant fields of Saudi Arabia add another dimension
to the importance of continuous learning and innovation.
Remote locations and a harsh desert environment combine
to produce development commitments of both labor and
capital seldom seen elsewhere in the world. Shaybah field
provides a powerful example of field development using a
continually self-improving process and it is the field
example for the development stage.

S H AY B A H F I E L D D E V E L O P M E N T
Saudi Aramcos exploration geoscientists discovered
Shaybah field in the Empty Quarter in 1968. The field is
located 495 miles (800 km) from Dhahran. Saudi Aramco
commissioned the field in 1998 to meet supply commitments
and field development has continued. Shaybah field is a
case study for the business impact of horizontal wells.

Russia drilled horizontal wells in the 1930s. The energy industry drilled
relatively few horizontal wells over the subsequent 50 years. Technology
rapidly progressed after 1985 with the successful exploitation of the Austin
Chalk trend in Texas using horizontal wells. A recommendation to drill a
horizontal well once required intense discussion before approval. The
paradigm shift is so complete that a horizontal well, rather than a vertical
well, is now the standard completion.

Horizontal wells gained attraction in the energy industry

in the early 1990s. A few years later, when Saudi Aramco
initiated Shaybah field development, horizontal well
technology had evolved to where incorporating the
technology into the Shaybah field development plan made
business sense. Vertical wells played an important
surveillance role in the development plan.

V E RT I C A L W E L L S
Vertical wells delineated Shaybah field. The vertical wells
provided critical reservoir information for the field
appraisal and development stages. To appreciate this
surveillance role, it is necessary to know the topography of

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 19

the vast, harsh and remote Rub al-Khali desert under

which Shaybah field lies.
Shaybah field lies under sand dunes that rise 175 meters
(574 ft) above the desert floor. Interspersed between the tall
sand dunes are flat sabkhahs. A drilling rig would set up on
a sabkhah and drill a vertical producer with the objective of
gathering reservoir information. Vertical wells are
operationally easier and less expensive to log and core
compared to horizontal wells. Once the geologists and
engineers characterized the reservoir beneath a sabkhah,
they drilled horizontal producers off the sabkhah pad under
the sand dunes, much like an offshore operation. The initial
plan included drilling and coring 17 vertical
delineation/production/monitoring wells. The team used
data from these wells to design and drill more than 100
horizontal production startup wells.
Geoscientists used vertical wells to calibrate 3D seismic
data by running vertical seismic profiles (VSPs) from total
depth to the surface. VSP calibration was important in
Shaybah field where the mixed terrain of high sand dunes
and flat sabkhahs contributed to a low signal-to-noise ratio
from source to receivers. Shaybah field is approximately 40
miles (64 km) long and 8 miles (13 km) wide. Due to the
large field size and inter-well spacing, geophysical data will
contribute to reservoir characterization throughout the life
of the field.

H O R I Z O N TA L W E L L S
The producing wells in Shaybah field are horizontal.
Objectives for drilling them horizontally included
improving sweep and recovery by limiting water and gas
coning, increasing productivity in low permeability and
non-fractured facies, and reducing development costs.

Well testing provides 1. initial reservoir pressure a primary parameter of

reservoir management and 2. permeability a key attribute for the reservoir
simulation model. Among the various formation evaluation options, well
testing is unique in that it samples the reservoir out to distances of hundreds
or even thousands of feet from the wellbore via pressure transient analysis.
Interpreting this response is the fundamental objective of well testing and
provides insight into reservoir dynamics.

The Shuaiba formation is the principal hydrocarbonbearing formation in Shaybah field. The Shuaiba
hydrocarbon accumulation is a gently folded anticline. A
gas cap overlays, and an aquifer lies underneath, the oil in
the Shuaiba reservoir. Faults seen on 3D seismic images
and confirmed by image logs suggest the reservoir is prone
to gas and water coning. Reducing pressure drawdown to
limit unwanted water or gas movement under producing
conditions is an objective of the horizontal well.
Theoretically, horizontal wells deliver productivities
several times higher than offset vertical wells. The realized
productivity gain depends on reservoir characteristics and
total contact with the reservoir. Fewer horizontal wells are
thus required to meet a desired production rate and, as a
result, the cost of developing a field is reduced, as was the
case in Shaybah field.

E VA L U AT I N G H O R I Z O N TA L W E L L S

The Shaybah team innovates with horizontal well technology to produce

various Shuaiba reservoir rock types. To address the challenge of producing
low permeability and non-fractured rock types, reservoir contact lengths were
increased. Compare a 1998 1 km well to a 12 km MRC (Maximum Reservoir
Contact) well drilled in 2002. Asset teams match MRC well design to reservoir
management objectives at specific locations.

20 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

Logging horizontal wells involves challenges and

opportunities different from those in logging vertical wells.
Challenges arise because coil tubing (or drill pipe) is
required to run logging tools through a horizontal section.
This specialized operation consumes rig time and is costly.
Opportunities relate to the large footprint a horizontal well
makes in a reservoir compared to a vertical well. The
footprint of a horizontal well enables image logs to
intersect vertical heterogeneities not detectable in vertical
wells. The team uses this petrophysical information to

model fractures and facies distribution in the reservoir. Log

results from horizontal wells complement vertical well
results and together improve reservoir characterization.
Effective use of horizontal well technology requires a robust
understanding of fracture type, fracture orientation and
facies distribution.

T E S T I N G H O R I Z O N TA L W E L L S
The asset team instituted a rate test program concurrently
with the drilling program to confirm if deliverabilities
matched development plan assumptions. Four horizontal
wells, tested for two weeks, yielded a choked rate of 12,000
BPD per well. These tests included a production logging
tool and oriented four arm calipers for hole stability
evaluation. The rate tests were consistent with predicted
production rates, increasing the teams confidence to
continue with field development as planned.

C O N T I N U O U S I N N O VAT I O N
The Shaybah team continuously introduces new
technologies into the development plan. One example is the
utilization of satellite communication technologies to
geosteer horizontal wells through the reservoir in real time.
Optimized well trajectories maximize well productivity and
long term performance.
Another example is the Shaybah teams use of horizontal
well technology to achieve specific reservoir management
objectives. In 1998 the longest reservoir contact for any
well in Shaybah field was one km. Horizontal well
technology evolved so that by 2002 the Shaybah team

could match a specific reservoir management objective to a

specific completion design. Field development is a
technology-led process guided by continuously innovative
reservoir management teams.

M A X I M U M R E S E RV O I R C O N TA C T
A maximum reservoir contact (MRC) well has long
reservoir contact through a single or multilateral wellbore
design. It is an example of an innovative technology with
potential to improve how Saudi Aramco produces low
permeability and non-fractured facies in the future. The
first MRC well in Saudi Arabia was drilled in Shaybah field
in 2002 having reservoir exposure of 27,880 feet (8,500 m).
A well with a reservoir contact of 12 km (7 miles) followed
a few months later.
The initial assessment of MRC wells indicates a 30
percent cost reduction when compared to offset three km
single lateral wells, based on a sustainable well production
rate ($/BBL/day). A permanent downhole monitoring
system installed in the 8.5 km (5.3 miles) MRC well will
provide long term testing and monitoring capabilities. The
team will compare test results from offset horizontal wells
of varying reservoir contact lengths. The business impact of
MRC wells is to increase well productivity and improve
hydrocarbon recovery in low permeability and nonfractured facies.

R E S E RV O I R C H A R A C T E R I Z AT I O N
Reservoir characterization is a very important part of the
reservoir management process. Reservoir characterization

The Shuaiba reservoir consists of several textural rock types. Muddy rocks in the lagoon and open marine environments have high porosity but low permeability.
Rocks in the back and fore barrier are grain-rich with high porosity and moderate permeability. The rudist barrier consists of coarse grained rocks having the lowest
porosity and highest permeability. The asset team used detailed reservoir geocellular models to determine optimum locations for horizontal wells.

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 21

describes a reservoir using geological and engineering data

obtained in numerous ways. Cores provide petrophysical
data essential to reservoir engineering. Openhole logs
provide in-situ information about the rock and fluids in the
immediate vicinity of the wellbore. Well testing investigates
deep into the reservoir, far beyond the wellbore, providing
large scale reservoir characterization. Horizontal and
multilateral wells with their large footprints also aid
reservoir characterization.
Data from the above sources, and others, contribute to
a descriptive matrix of reservoir information. This
supports an understanding of the depositional
environment, lateral and vertical rock heterogeneities, and
productivity characteristics of the reservoir. The asset team
integrates new reservoir characterization and engineering
insights into the full-field simulation model. Updated
reservoir simulation predictions serve as the basis for finetuning the depletion strategies.

NEW TECHNOLOGIES REDUCE

DEVELOPMENT COSTS
Shaybah field provides a powerful demonstration of the
business impact of two key technologies. First, drilling costs
would have been six times higher on a ($/BBL/day) of
initial crude production basis had Shaybah field been
developed with vertical rather than horizontal wells.
Horizontal well technology dramatically reduced Shaybah
field development costs. Second, as the result of significant
computational advances between 1996 and 2001, the
POWERS full-field simulation model indicated a 2.5-fold
reduction in overall run time in spite of an almost five-fold
increase in model size.

REAL TIME GEOSTEERING

Real time geosteering technology enables an asset team to
steer a drill bit in real time while drilling a wellbore a mile
or more underground (Smith, R. G., Real Time
Geosteering). Saudi Aramco utilizes real time reservoir
navigation systems on its drilling rig operations and
workover re-drills. Satellite technology sends drilling and
LWD (logging while drilling) data directly from the drill bit
to desktops and visualization centers in Dhahran. A team of
experts in EXPEC analyzes the data as it comes in and
navigates the wellbore trajectory through the reservoir to
achieve reservoir management objectives.
Real time geosteering technology applied in low
permeability reservoirs significantly improves well
productivity, increases the drainage area of a well, and
improves hydrocarbon recovery because of reduced

22 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

drawdown pressure. The Shaybah team uses geosteering

technology to achieve these important objectives.

GAS DEVELOPMENT
In 1975, the government of Saudi Arabia requested Saudi
Aramco to design, construct and operate a system to
collect, process and utilize the Kingdoms associated gas
reserves. Saudi Aramco commissioned the system, called the
Master Gas System (MGS), in 1980. Associated gas, as the
name suggests, is gas associated with oil production. Oil
wells flow to a GOSP where the produced fluid is separated
into oil, gas and salt water. The gas then flows, or is
compressed and piped, to a MGS plant that processes the
gas into natural gas liquids or sales gas.
In recent years, Saudi Aramco embarked on an ambitious
program to develop non-associated gas as a swing source of
feed gas to the MGS. Non-associated gas is independent of
oil production. Saudi Aramco enlarged the MGS to gather
and process high pressure non-associated gas from the deep
Khuff reservoir, as well as the pre-Khuff, Jauf and Unayzah
reservoirs. Non-associated gas is a valuable resource to
meet national power generation demand and to fuel the
Kingdoms petrochemical industry. Non-associated gas
reserves in the Kingdom are typically in deep, high pressure
and temperature and heterogeneous reservoirs.

G A S C O N D E N S AT E R E S E RV O I R S
Detailed phase behavior of the hydrocarbon system is
important in order to assess the potential of gas condensate
reservoirs. Conventional black oil models cannot capture all
aspects of the phase behavior of these systems. Instead, the
evaluation and prediction of reservoir performance require

Real Time and

High Resolution Data
f o r B e t t e r We l l s

compositional simulators based on equation of state

technology. The Khuff and Jauf non-associated gas
reservoirs exhibit significant spatial compositional
variations. Extensive field sampling of reservoir fluids, with
laboratory studies to determine their composition, was
required to develop equation of state models.

PRODUCTIVITY ENHANCEMENT
Enhancing the deliverability of gas wells is a top priority.
Productivity enhancement options include acid fracturing,
matrix acidizing, proppant fracturing and horizontal wells.
The gas asset team based its evaluation on reservoir flow
characteristics, formation heterogeneity, net pay thickness
and reservoir continuity.
In the southern areas of Ghawar field, Hawiyah and
Haradh, the quality of the Khuff-C reservoir deteriorates
and productivity enhancement becomes the main challenge.
The type of porosity development changes areally from thin
and continuous intervals to thick and broken intervals. The
strategy is to utilize a horizontal well in the Type-A areas of
thin and continuous porosity development (where
horizontal wells are more effective), and rely upon acid

fracturing of a vertical well in the Type-B areas of thick and

layered porosity.

P R O D U C T I O N S TA G E
The production stage includes advanced and mature
production and corresponds from 25 percent depletion of
reserves to the start of enhanced oil recovery. An asset team
supports early life cycle strategies with field scale
parameters that carry considerable uncertainty. Certainty
increases with the acquisition of additional data from each
new well. The reservoir characterization effort during
advanced and mature production harnesses enormous
volumes of data and turns unstructured data into missioncritical reservoir information. The energy industry and
Saudi Aramco rely heavily on computers. One reason is the
requirement to store and analyze the vast amounts of
reservoir data acquired during advanced and mature
production.
The objectives of the production stage are the same as
the previous two stages, but plans reflect a maturing asset.
New maintain/potential and evaluation/observation wells
are drilled in yet undeveloped areas of the reservoir to meet
supply commitments. Existing wells are worked over to

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 23

R E S E RV O I R M O N I T O R I N G

Saudi Aramco commissioned the Hawiyah Gas Plant on January 1, 2002. The
plant has a capacity of 1.6 billion cubic feet of gas per day.

maintain desired productivity/injectivity rates. Facilities are

modified to handle production of expected fluid volumes
and increase efficiency.

M I G H T Y G H AWA R F I E L D
Ghawar field is the largest oil field in the world and is the
field example for the production stage. The field has
produced for half a century and has many decades of
production remaining.
Ghawar field was discovered in 1948 with Ain Dar No.
1. The field is about 174 miles (280 km) long and 16 miles
(26 km) wide. Additional discoveries followed in five more
producing areas: Haradh in 1949, Uthmaniyah in 1951,
Shedgum in 1952, Hawiyah in 1953 and Fazran in 1957.
Ghawar field contains several oil and gas reservoirs.
Commercial production from Ghawar field began in
1951 from Ain Dar and peripheral water injection in
Ghawar field started in 1965. Treated seawater from the
Arabian Gulf is pumped across the desert through two 56
inch (142 cm) trunklines and one 60 in (152 cm) trunkline
to distribution points within the field. Seawater injection is
environmentally preferred because it avoids the use of
Wasia aquifer or Biyadh aquifer waters.
The primary reservoir in Ghawar field is the prolific
Arab D reservoir that optimally combines the elements
required for high productivity: high porosity and high
permeability. Oils were derived from thermally matured,
Jurassic age and organic rich carbonate source rocks. Then
the oils migrated into highly porous and permeable
carbonate reservoirs in large structural traps. The Arab D
reservoir consists of 76 meters (250 ft) of reservoir quality
limestone and dolomite.
24 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

Saudi Aramcos oil and gas reserves are its most valuable
assets. Surveillance of those reserves is the primary objective
of reservoir monitoring. Monitoring takes on a dataintensive nature as the number of wells in a field increases.
Production, injection and observation wells are windows
through which asset team members investigate a reservoir.
Pressure, temperature and flow rate data, along with
production log results, are some of the important
engineering variables used by an asset team to monitor an
entire reservoir system. Digital technologies have expanded
the capabilities of previous analog-only SCADA systems,
making real time reservoir monitoring a reality. Intelligent
wells combine real time monitoring and remote downhole
intervention to provide robust flexibility to a team.
Remote downhole intervention is an emerging
technology that enables an asset team to manage each
lateral in a multilateral well. With this technology, the asset
team manages multilateral wells based on production
profiles for each lateral generated from real time rate
information. Intelligent wells provide the capability to make
and implement decisions in real time to avoid downhole
problems and optimize well and reservoir productivity. The
high flow rate of a typical Saudi Aramco multilateral well
necessitates a competence to manage and control laterals
separately, so an impaired lateral does not disrupt

Reservoir compartmentalization of the Jauf reservoir along the east flank of

Hawiyah field is based on 3D seismic mapping of faults that are integrated
into a multilayer geocellular model. The model shows the truncation of the
Jauf reservoir by a major north-south fault (blue slab) and the successive
erosion of the layers by a major period of erosion, following deposition and
structural tilting of the Jauf reservoir sandstone. Reservoir characterization is
essential for optimum well placement and is the basis for simulation studies
that assess the impact of faults on fluid flow in the reservoir. The asset team
updates its reservoir depletion strategies based on this assessment.

productive laterals. Intelligent well technology is climbing

the learning curve as installed systems around the world
demonstrate its promise. The following pages touch on
Saudi Aramcos participation in real time monitoring and
intelligent wells.

REAL TIME MONITORING

A real time monitoring system developed by a service
company was installed recently in an Uthmaniyah well.
The tool continuously monitors the movement of salinitycalibrated water injected into the reservoir. Monitoring
occurs by measuring downhole deep resistivity up to 15
meters (50 ft) away from the wellbore with dynamic and
static openhole logs. The system also monitors pressure,
temperature and flow rate in real time. The team analyzes
all of the data to better understand residual oil saturation
after waterflooding, recovery factor and relative
permeabilities to oil and water. Better insights into these
key reservoir management parameters in turn are used to
fine-tune Ghawar field depletion strategies.
Another application of real time reservoir monitoring is
in Haradh, in south Ghawar field. Downhole gauges
monitor reservoir pressure in real time. This provides the
reservoir management team the information needed to
produce low transmissibility wells within the optimum
pressure range above the bubble point.

INTELLIGENT WELLS
Intelligent well technology is an innovation that enables a
reservoir management team to monitor a reservoir in real
time, analyze the data and remotely initiate downhole
intervention. Enough installations exist around the world to
consider the technology proved, and experience has greatly
increased the technologys reliability. The tradeoff is higher
capital expenditures up front for faster production,
improved recovery and lower operating expenses later.
Recent internal studies highlighted the benefits of using
intelligent completions. The vision is to integrate intelligent
well technology with the demonstrated effectiveness of
horizontal, multilateral and MRC wells to accelerate
production while enhancing sweep efficiency and delaying
water breakthrough. When water enters a lateral, intelligent
completions create value by providing the capability to
intervene from the surface and shut off the wet lateral,
allowing the remaining laterals to produce undisturbed. The
cost of intelligent wells will decrease as the industry climbs
the learning curve. Saudi Aramco is participating in this
learning effort.

The heterogeneous nature of the Khuff and Jauf non-associated gas reservoirs
and the wide well spacing make 3D seismic a prerequisite in selecting good
well locations. Seismic results improve the probability of connecting with the
best porosity development.

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 25

Members of the Ghawar team finalize reservoir monitoring priorities for the field.

METRICS
An accurate view of reservoir performance is required to
make long range decisions in a timely manner.
Reservoir management metrics provide a highly effective
solution to measuring and improving performance by
tracking a variety of key performance indices. Metrics
provide a scorecard for every field on how and when asset
teams achieve their goals. Key indices measuring reservoir
performance include:

Recovery factor
Mobile oil recovery efficiency
Rate of depletion as a percentage of remaining reserves
Reservoir injection to production ratio
Producing water cut
Reserves depletion state
Mobile oil depletion state
Dead well statistics
Strategic studies
Annual production

When water enters a lateral, intelligent completions create value by providing downhole intervention capability to shut off the wet lateral from the surface, leaving
the remaining laterals to produce undisturbed. The tradeoff is capital expenditures up front for faster production, improved hydrocarbon recovery and lower
operating expenses.

26 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

fractures. Heterogeneities may lead to premature water

breakthrough, and barriers lead to bypassed oil or lack of
pressure support.
The reservoir management strategy is to balance oil
production with water injection. A proactive data
acquisition program monitors reservoir pressure and
produced fluids to determine the conformance of vertical
and areal sweep of hydrocarbons.

T H E C H A L L E N G E O F TA R

Monitoring Reservoir Sweep: Injection water in the Ghawar Arab D reservoir

efficiently displaces oil from the flanks of the reservoir to the crest and from the
bottom of the reservoir to the top. Data acquisition results incorporated into
3D visualization models monitor the effectiveness of depletion strategies.
Seismic and image log data have confirmed the existence of fractures and faults
in the Arab D reservoir that until relatively recently were not mapped. The
continuous learning process utilizes technology to fulfill reservoir management
objectives, and reservoir metrics monitor the results for business impact.

Annual decline rates

Unit development costs
Regular reviews of these and other key indices provide
an accurate and timely critique of performance by field.
Performance metrics ensure stringent and uniform
evaluation of all active Saudi Aramco reservoirs and the
results guide strategic decisions. A performance metricguided process is consistent with the companys vision to be
a leader in the application of best-in-class reservoir
management practices.

Uniform reservoir sweep contributes to improved

hydrocarbon recovery. The lack of reservoir rock quality
and conductive flow paths, as well as tar that acts as a
barrier to fluid flow, are obstacles to an efficient sweep. Tar,
when found, usually occurs at or near the interface of the
oil and water columns. It is possible to identify tar
occurrence with reservoir monitoring programs and careful
measurement of rock and fluid samples.
Tar on the eastern flank of Uthmaniyah has not
hampered historical sweep, but wells to the west of the tar
have shown an increasing lack of pressure support, and
consequently a reduction in production potential. An
innovative approach to the challenge is to tunnel through
the tar barrier with a horizontal well as shown in the
adjoining figure. A planned tunnel well will bridge the

R E S E RV O I R D E P L E T I O N
At the field level, as opposed to the well level, a time lapse
flood front map monitors reservoir depletion. The map
takes into account wireline log data and water production
measurements and documents water entry over time. As
expected, the general trend is for water to initially appear
on the periphery and subsequently envelop up structure
wells. A cross check for sweep efficiency is made by
comparing the volume of cumulative produced oil to the
volume of original oil in place.

P R O D U C T I O N S T R AT E G Y
Production must take into account reservoir heterogeneities
such as strataform high permeability intervals, faults and

The typical distance between wells is one kilometer. The wide spacing
between wells is a reason why geophysical data is an important tool to
reservoir management.

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 27

PROSPERITY WELL

The effort to find oil in Saudi Arabia began in 1933 when the concession was
signed under the wise leadership of King Abd al-Aziz ibn Abd al-Rahman Al
Saud. His Majesty is shown on a rig tour with Floyd Ohliger, resident manager of
the venture. The first commercial discovery occurred in Dammam Well No. 7 on
March 4, 1938 in the Arab D reservoir. Initial production from Dammam Well No.
7 averaged 1,585 BPD and increased to 3,810 BPD. The well produced 32 million
barrels of oil by 1982, when production ceased due to economic reasons. Max
Steineke, also shown (seated), was the geologist who never wavered in the vision to
find oil in Saudi Arabia. He was knowledgeable, optimistic, intuitive, and had
perseverance valuable traits of energy finders.

28 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

peripheral injectors to the central producers, thus providing

the necessary pressure support to produce the oil.

E X C E L L E N C E A N D S T E WA R D S H I P
The reservoir management process sets goals and objectives,
creates a plan to achieve them, monitors their
implementation and analyzes the results. Emerging
technological trends energize this process. Success depends
on professionals who are committed to excellence and who
have a sense of stewardship, as seen in the Shaybah field
development and the Hawiyah Gas Plant projects.

C R E AT I V I T Y A N D I N N O VAT I O N
The extrapolation of current and emerging trends in
reservoir management points to a process that is
increasingly multidisciplinary, integrated, technology
based, information loaded and real time. None of these
trends by themselves, however, guarantees profitability or
success in the future. The right path for the reservoir
management process to take suggests a learning model that
ensures that change is a positive force necessary to achieve
results and succeed.
Innovation harnesses opportunities from among the
options technology offers. Technology is a tool to achieve

The Challenge of Tar: Uniform reservoir sweep contributes to improved

hyrdocarbon recovery. The lack of reservoir rock quality and conductive flow
paths, as well as tar that acts as a barrier to fluid flow, are obstacles to an
efficient sweep. Tar, when found, usually occurs at or near the interface of the
oil and water columns. It is possible to identify tar occurrence with reservoir
monitoring programs and careful measurement of rock and fluid samples.
Tar on the eastern flank of Uthmaniyah has not hampered historical
sweep, but wells to the west of the tar have shown an increasing lack of
pressure support, and consequently a reduction in production potential. An
innovative approach to the challenge is to tunnel through the tar barrier
with a horizontal well. A planned tunnel well will bridge the peripheral
injectors to the central producers, thus providing the necessary pressure
support to produce the oil.

Saudi Aramco and the energy industry have come a long way since 1938, when Dammam Well No. 7 was discovered. Future technologies will allow a reservoir
management team to work virtually inside the reservoir. Improved reservoir management processes using future technologies will lower risk and improve
hydrocarbon recovery.

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 29

30 SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003

goals and then stretch them. Successful results accelerate the

momentum of asset teams. Members share experiences
within web-enabled communities in the company and in the
professional societies of the global energy industry,
improving what works and discarding what does not. Asset
teams manage and implement creative ideas and reservoir
metrics benchmark results for its business impact.

REFERENCES

FUTURE TECHNOLOGIES

Saleri, N. G., Learning Reservoirs: Adapting to Disruptive

Technologies, Distinguished Author Series, Journal of
Petroleum Technology, Vol. 54, Number 3, pp. 57-60,
March 2002.

Technologies with an expected business impact in the future

include diagnostics, information and knowledge
management, as well as enhanced production.
Diagnostic technologies span the spectrum of reservoir
imaging and/or characterization tools. Teams will use
seismic data from 3D, 4D and seismic while drilling as
the input to dynamic simulation models. Reservoir
management will use high resolution 4D seismic
modeling to view field characteristics, analyze well data
and predict production potential.
Information and knowledge management technologies
include advanced communication systems (e.g.
satellites), real time visualization platforms and webenabled data pools.
Enhanced production technologies include intelligent
downhole completions and novel production or drilling
technologies.
Real time technologies and improved proactive processes
will influence how asset teams manage reservoirs in the
future. The vision remains the same whatever the future
brings. Dedicated professionals will manage Saudi Aramcos
reservoirs using best-in-class reservoir management
practices to meet supply commitments, improve
hydrocarbon recovery and increase upstream efficiency.

Collins, J., Good to Great, HarperCollins Publishers Inc.,

New York, New York, 2001.
Saleri, N. G., Disruptive Technologies and Real Time
Reservoir Management Issues, Sixth International
Forum on Reservoir Simulation, Salzburg, Austria, 3-7
September 2001.

Saudi Aramco E&P, Saudi Aramco Reservoir Management

Guidelines and Standards Manual, Dhahran, Saudi
Arabia, March 1997.
Smith, R. G., and Maitland, G. C, The Road Ahead to
Real Time Oil and Gas Reservoir Management,
Transactions of the Institution of Chemical Engineers:
Chemical Engineering and Design, Vol. 76A, pp. 539552, 1998.

ACKNOWLEDGEMENTS
Special thanks go to S. A. Al-Fassam, S. A. Turaiki and
N. G. Saleri. Contributors to this article included
A. S. Al-Muhaish, I. M. Buhidma, S. P. Salamy, D. H. Jones
and R. J. Heil.

SAUDI ARAMCO JOURNAL OF TECHNOLOGY SPRING 2003 31