PPDM 2008 Fall Member Meeting, Calgary

Hess reports on enterprise deployment of PPDM and Talisman on IM cost/benefit analysis.

PPDM CEO Trudy Curtis noted steady growth through 2008. PPDM now has around 100 member companies and is also to introduce a new individual membership. Most members are software companies and most funds come from oils. PPDM 3.8 was released this year and 3.9 is in development. As requested by membership last year, focus has been on improved documentation, especially for the data management DM module and a new Wiki. The ‘what is a well?’ workgroup is underway and a ‘mineable oil sands’ work group is being scoped. Among the 20 or so new members this year are ConocoPhillips, Energistics, Marathon and Repsol YPF.

Fred Kunzinger described the state of play of PPDM and data management at Hess. Prior to the project, Hess’ multiple offices worldwide had multiple ways of doing things. There were no global standards, processes or technologies and a perception that data management and other support functions were just an overhead expense and that they should cost as little as possible!

Hess has now seen the data management light and considers that, ‘proper data management is critical to E&P success.’ Data management has been embedded in two key Hess programs – ‘Exploration Excellence and Efficiency’ (E3) and Subsurface Evaluation Method. Interestingly, Hess considers that as a fast growing company, now is the time to realize a data infrastructure before it is too late.

A data governance structure was established with workgroups for seismic, SCADA, well, geology and interpreted outputs. These allowed Hess’ large legacy data sets to be mapped into a structure of primary, added value data and ‘intellectual capture’ categories. A bespoke PPDM 3.7 database and ESRI SDE GIS was established for standard data storage. Naming conventions were set up. Compliance was successfully sold as a ‘performance management’ issue rather than a ‘data management” issue. Hess also standardized its interpretation platform (on GeoFrame, Petra and Petrel). Hess has developed an exhaustive data ‘credo’ including the idea that ‘Data belongs to the company - data does not belong to an individual or team.’

Talisman’s Chin Lonnie’s presentation investigated metrics of IM project costs and value. The technique has been developed to track progress of various Talisman IM projects that are underway. Key performance indicators are used to track project progress, measuring resource allocation by geography, well count and man hours. Well IM costs varied from $90 per well to over $200 – with a significant difference between interest and operated wells. These were used to create IM AFEs, for joint venture billing and as a baseline for productivity measurement. On the demand side, costs savings were computed from the reduction in data acquisition time. Talisman now has a handle on its IM costs and has demonstrated million dollar savings from its IM.

This article originally appeared in Oil IT Journal 2008 Issue # 12.

For more information or to comment on this topic email here.