Risk-based asset performance management in CSG production operations

Abstract

The coal seam gas (CSG) industry is an asset intensive and highly regulated industry, with each project having a large, complex network of upstream processing facilities. Each major project will drill over 3000 individual wells with around 40000 wells predicted across the Surat and Bowen basins during the lifetime of these projects. This high asset count poses a challenge for upstream oil and gas operators to meet corporate and legislative requirements, maintain asset integrity of the facilities; while delivering leading operational performance and return on investment in this cost-focused environment. In this paper, we propose that the effective management of these CSG assets requires a conscious cross-disciplinary, whole lifecycle focus on value realisation. We explore three ways that CSG operators can successfully achieve this by transitioning to a risk-based, asset performance management led environment: 1. Safe production and regulatory compliance – the geographic spread of CSG facilities poses significant exposure to driving risk when travelling in remote locations. We discuss how CSG operators can leverage existing data to create fit-for-purpose risk-based inspection strategies. 2. Maximising reliability – CSG consists of a complex network of interconnected reservoirs, process facilities and complex demand-side variability. This requires a fluid approach to the allocation of scarce maintenance planning resources. We discuss how CSG operators can use a risk-based approach to achieve an optimised ‘best value’ outcome. 3. Managing supply-chain cost and quality – we explore how CSG operators can deliver a step-change in integrity, cost-of quality and capital efficiency in their supply chain.