Baker Hughes announced on Monday the commercial release of its DeclineShift™ mature asset software.
Baker’s new product is designed to help operators maximise capital efficiency and extend production from their older oil and gas assets.
The company said its new product “boosts recovery and lowers operating costs rapidly and efficiently through a combination of detailed analysis of the asset and fit-for-purpose technology applications.”
“As 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,” said Hans-Christian Freitag, Vice President, Integrated Technology at Baker Hughes.
“Unfortunately, the positive effects of these tactics are usually short-lived. The DeclineShift solution offers a more strategic approach – one focused on maximizing capital efficiency.”
In one recent application, Baker Hughes designed and implemented a DeclineShift software 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 prioritised an assortment of production enhancement opportunities, including rejuvenating existing wells and accessing bypassed oil. At the operator’s request, Baker Hughes assumed management of the field.
This 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, DeclineShift increased the operator’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%, accoridng to the company.
The foundation of the new software includes a close examination of the areas that can have the greatest positive impact on the asset’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, maximising production revenues and increasing economically recoverable resources.
Then, based on the operator’s economic objectives, Baker Hughes designs a customised programme for the asset. Each programme 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 minimise deployment time and production disruptions—helping to accelerate payback and grow the present value of the operator’s cash flow.
“Because each unique DeclineShift solution leverages a very precise design process and execution plan, most can be implemented rapidly, with minimal disruption to a customer’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,” continued Freitag.
