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14.06.2021 PGNiG to harness artificial intelligence to make production more efficient, cheaper and greener

Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) has launched the Smart Field project, which uses advanced digital technology to support oil and gas exploration and production operations. As one of its expected outcomes, the project will increase domestic recoverable natural gas reserves by more than seven billion cubic meters.

‘The Smart Field project demonstrates that PGNiG is keeping up with the latest trends for using digital tools in hydrocarbon exploration and production operations. Our specialists have extensive experience and expertise, which, however, come up against natural constraints of the human mind. With artificial intelligence, machine learning and cloud solutions, we will be able to speed up analytical processes and increase the amount and detail of data processed. This will help us improve the operational and financial efficiency of PGNiG’s exploration and production activities,’ said Paweł Majewski, President of the PGNiG Management Board.

Using IT technology to analyse various drilling and development options will help increase recovery factor r of PGNiG’s oil and gas reserves. The Company’s experts estimate that domestic recoverable gas reserves will increase by 7.3bcm as a result of implementation of the Smart Field project in 2021 and 2022. Based on the results of previous digital projects, the application of IT technologies to support PGNiG’s exploration and production activities will increase domestic recoverable natural gas reserves by over 11bcm in 2019–2022 and provide an opportunity to tap into these resources. Therefore, Smart Field is a guarantee that domestic production can be maintained at stable levels. What is more, it will help to extend the field life by an average of ten years, contributing to preservation of local jobs, increased revenues from taxes and production fees for local governments and an additional secure source of domestic gas supplies.

Smart Field is a comprehensive approach enabling very precise analysis along the entire production process, from the reservoir to the delivery point. In addition to increasing the hydrocarbon resource base, its application will reduce production costs by optimising investment in production infrastructure. AI-based simulations of various asset management scenarios will optimise work and well numbers and will increase the efficiency of surface infrastructure, reducing greenhouse gas emissions associated with exploration and production activities.

Natural gas may play a key role in the rapid decarbonisation of our economy. We want the fuel we supply to have the lowest possible carbon footprint along the entire value chain. Therefore, efforts to curb greenhouse gas emissions in the upstream segment are at the top of our list of priorities,’ Mr Majewski noted.

Smart Field is another step in the digital transformation of PGNiG’s upstream operations. In 2019, the Company unveiled its Digital Field platform, which integrates the work of specialists in various fields of expertise related to hydrocarbon production in a single field model. The benefits delivered by the platform prompted PGNiG to expand its capabilities to include analytical process automation based on artificial intelligence and machine learning, supported by the immense computing power provided by digital cloud.

Smart Field is a natural extension of the Digital Field, but it’s so much more than an upgrade from the previous system. It is a technology leap, which opens up new avenues for building our position in global markets,’ said Robert Perkowski, Vice President of the PGNiG Management Board, Operations. ‘Smart Field allows us to leverage the expertise and experience of our specialists based in Poland to support the PGNiG Group’s exploration and production abroad.

Mr Perkowski added that the ability to remotely handle processes related to the design of exploration and production works has become vital considering the experience of the COVID-19 pandemic.

‘Time overruns escalate costs. With the Smart Field solution, we minimise the risk of delays by providing universal access to data and specialist software from any location of the PGNiG Group. This solution will allow our specialists to work simultaneously on the same models, significantly improving work speed and efficiency,’ noted Robert Perkowski.

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