Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I hold a BSc in Chemical Engineering and an MSc in Project Evaluation, with 22 years of international experience in Argentina, Venezuela, Indonesia, and the US. In the first 8 years of my career, I worked in process engineering and project management roles. For the following 10 years, I served as a field operations engineer, focusing on implementing process safety best practices, optimizing production, and troubleshooting.

Over the past 4 years, I have led special Operational Excellence projects and Wells Integrity implementation across various business units.

I spent 15 years with Chevron and the last 3 years with Pan American Energy, one of LATAM's most important private energy companies. My experience spans Extra Heavy Oil operations in Venezuela, Conventional and Non-Conventional operations in Argentina, and Steamflooding and Waterflooding assets in Indonesia.

 

Q2. What are some efficient strategies to reduce costs without compromising quality or service levels in the Wells Integrity Management System?

Leverage Technology

• Implement monitoring systems such as pressure transmitters for annulus management or temperature transmitters to infer production issues
• Implement Generative Artificial Intelligence since it has an enormous potential to anticipate/detect failures and promptly propose solutions
• Implement drone inspections equipped with cameras to detect leaks that can be caused by integrity failures that must be treated
• Implement Risk-Based Management to focus on the most critical aspects of well integrity using technology

Optimize Supplier Relationships

Consolidate your supplier base to leverage better pricing and terms. Building strong, collaborative relationships with key suppliers can lead to cost savings through bulk discounts and more favorable contract terms.

Implement Preventive Maintenance

Regularly scheduled maintenance of Wellhead and Christmas Trees valves can prevent costly breakdowns, extend the life of equipment, and, most importantly, guarantee the means of isolating the well in case it becomes necessary during emergencies. This proactive approach can reduce unexpected downtime and repair costs.

Invest in workforce training around well integrity/well control

International certifications of IADC or IWFC are a plus.

 

Q3. Are there recent or planned investments in technology to improve the operational efficiency of the supply chain for the Wells Integrity Management System?

Yes, Generative AI technology is becoming a very important partner for routine activities and for analyzing tons of information coming from the field, suppliers, and the different groups related to good integrity.

The technology has enormous potential to extract information from different corporate databases, international codes and standards, engineering documents, and more. It can also provide specific answers to complex questions made by people with little integrity expertise, giving very clear and precise answers.

Also, data analytics and machine learning are becoming very useful in predicting supply chain disruptions, optimizing inventory, detecting critical spare parts that are out of stock, and improving decision-making processes.

 

Q4. How do you use data and analytics to drive continuous improvement in Wells Integrity Management System?

Within our in-house developed application, we gather data from corporate databases regarding the operating conditions of wells, their structural components, and various integrity records and pressure tests conducted during their operation and intervention. Using this information, we analyze the potential consequences of integrity loss and calculate the probability of such an event occurring. This allows us to assess the risk associated with each well. Based on these results, we develop monitoring, inspection, maintenance, and, if necessary, intervention plans.

Additionally, we can infer potential well integrity issues by analyzing wellhead and annulus pressure trends through data analytics. In the case of shale assets where fracking occurs, we predict parent-child good interference as part of our Frac Hit Risk Management plan.

 

Q5. How do you monitor and improve the efficiency of the operations Wells Integrity Management System?

We track KPIs to monitor and improve efficiency. Some of them are:

Integrity Failure Rate: Number of integrity failures per well per year.

Inspection Frequency: Number of integrity inspections conducted per well per year.

Inspection Compliance Rate: Percentage of inspections completed as per the plan.

Well Control Events: Number of WC events due to integrity failures.

Pressure Test Compliance: Pressure tests overdue within the year.

Monitoring Efficiency: Percentage of wells monitored in real-time.

Well Risk Index: Risk assessment of each well based on the probability and consequences of integrity failures (as explained in the previous answer).

Wells with annuluas pressure > MAWOP: Wells operating under abnormal conditions.

Additionally, our Well Integrity group is responsible for updating our corporate Wells Integrity handbook, which includes industry best practices that fit our operations.

 

Q6. What are some challenges faced in the Wells Integrity Management System?

Lack of Understanding Across the Lifecycle

Ensuring well integrity requires a comprehensive understanding throughout the well’s lifecycle, from planning and design to decommissioning. Inconsistent standards and practices across different phases and teams can lead to integrity issues.

Cost-Driven Decisions

Making decisions based solely on cost considerations can compromise well integrity. It’s crucial to balance cost efficiency with safety and reliability.

Lack of Management of Change Culture

Failing to carefully assess the impact of changes in operating conditions, equipment, or procedures can lead to unexpected integrity failures.

Unclear Requirements and Standards

The absence of clear and concise requirements and standards for well integrity management can result in inconsistent practices and increased risk.

Lack of Training and Skills

Irregular training and a lack of necessary skills among staff can hinder effective well integrity management. Continuous education and skill development are essential.

Aging Wells

Managing the integrity of aging wells presents unique challenges, such as increased susceptibility to corrosion and mechanical failures.

Complex Well Designs

The increasing complexity of well designs, including deeper and more technically challenging wells, makes maintaining integrity more challenging.

Data Management

Efficiently managing and analyzing large volumes of data from various sources to monitor well integrity can be complex and resource intensive.

Poor Data Governance

This can result in inaccurate decision-making and operational inefficiencies due to low-quality data.

 

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

How does your company ensure operational excellence and maintain asset integrity while adapting to evolving industry standards, new technologies, and environmental regulations?

Additionally, how do you balance the need for emissions reduction with maintaining profitability and competitiveness in the market?