Field Operations Red Flag Review: Sproule ERCE Investigation
An exploration and production (E&P) company had concerns over their field operating practices in its primary area of operations. Sproule ERCE Asset Management was engaged to perform a comprehensive review of daily operations activities, facility operational procedures, equipment inventory, and shut-in well review to identify areas of improvement, efficiency, and surplus equipment.
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Project Highlights
- Junior E&P company with daily production of over 250 boe/d.
- Fraudulent time reports from contract operators.
- Unauthorized water disposal in E&P companies wells.
- Theft of equipment from operated and non-operated sites.
Challenges:
Reduced Production: Field operations erroneously reported wells were incapable of production and required costly well servicing.
Cashflow: Excessive billing and time charged by field contract staff for daily operations was identified.
Trespass: Unauthorized and unaccounted-for third-party water disposal was occurring in the company's wellbore.
Theft: Sproule ERCE discovered and reported that unauthorized removal of company-owned equipment was taking place by third parties.
Cashflow: Excessive billing and time charged by field contract staff for daily operations was identified.
Trespass: Unauthorized and unaccounted-for third-party water disposal was occurring in the company's wellbore.
Theft: Sproule ERCE discovered and reported that unauthorized removal of company-owned equipment was taking place by third parties.
Solutions:
Operational Changes: Sproule ERCE developed a rotational schedule designed to maximize the efficiency of field operations and provide accountable daily reporting. Historical operational staff were replaced with a skilled new workforce and provided clear expectations for operational excellence, as well as environmental, health and safety standards.
Asset Review: Sproule ERCE's supervision staff successfully tested and returned numerous wells to production without wellbore intervention. These wells were previously shut in and awaiting workover operations.
Surveillance: Sproule ERCE initiated remote wellbore surveillance systems that identified unauthorized fluid disposal in company wellbores and the identity of individuals suspected of equipment theft, ultimately resulting in equipment recovery.
Asset Review: Sproule ERCE's supervision staff successfully tested and returned numerous wells to production without wellbore intervention. These wells were previously shut in and awaiting workover operations.
Surveillance: Sproule ERCE initiated remote wellbore surveillance systems that identified unauthorized fluid disposal in company wellbores and the identity of individuals suspected of equipment theft, ultimately resulting in equipment recovery.
Values:
Productivity: The new operational schedule and improvements in field operations led to higher staff productivity levels.
Operational Safety: Enhanced measures and adherence to provincial environmental, health and safety standards improved overall operational safety and compliance.
Cessation of Illegal Activity: Identification of unauthorized third-party water disposal activity and new security measures supported the client to deter further unauthorized activity.
Cost Savings and Reliability: Enhanced security measures and proactive resource management led to significant cost efficiencies, improved operational reliability, and a successful return to industry-standard operating practices.
Operational Safety: Enhanced measures and adherence to provincial environmental, health and safety standards improved overall operational safety and compliance.
Cessation of Illegal Activity: Identification of unauthorized third-party water disposal activity and new security measures supported the client to deter further unauthorized activity.
Cost Savings and Reliability: Enhanced security measures and proactive resource management led to significant cost efficiencies, improved operational reliability, and a successful return to industry-standard operating practices.