Schlumberger Carbon Services Middle East and Asia

Enhancing Global Energy Security, Role of Technology in the Petroleum Sector

Carbon Management in E&P Operations

A Way Forward for Sustainable Future

Mahmut Sengul

Schlumberger Carbon Services, MEA

Riyadh , December 15 , 2008

Schlumberger Carbon Services Middle East and Asia

Overview

Global warming and GHG

Stabilizing CO2

Carbon Capture and Storage

CCS Research

Early case studies

Summary

Schlumberger Carbon Services Middle East and Asia

Direct Observations of Recent Climate Change

Global mean temperature

Global average sea level

Northern hemisphere snow cover

Schlumberger Carbon Services Middle East and Asia

Carbon Mitigation Options

Continued use of fossil fuel in a carbon constrained world will require:

Moderating demand by improving energy efficiency

Developing low / no-carbon energy sources

Implementing large scale carbon capture and sequestration

Schlumberger Carbon Services Middle East and Asia

Emission Reduction Opportunities in Oil and Gas Operations

Gas Flaring

Closed Burning

Open Flaring

Existing Fields:

Review

New Projects:

Incl. in Design

Vapor Recovery

CO2

Emissions

Power Generation

Improve Turbine

Efficiency

Carbon Capture

Ageing Fields

Power Demand

Oil spills

Clean-Up

Guidelines

Fast Response

Corrosion MS

FL Corrosion Data

FL Replacement Project

Best Corrosion

Protection Methods

Flow Line Leaks

Tanker Loading

VOC SOx

VOC Recovery

System

Rich Gas Flaring

Vapor

Recovery

Non CO2

Emissions

Schlumberger Carbon Services Middle East and Asia

Abu Dhabi Flare Reduction Performance

0

25

50

75

100

125

150

175

200

225

250

275

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

ABU DHABI GAS FLARING TREND

261

250

192

156

94

144

132

116

7461

53

38 35

0

25

50

75

100

125

150

175

0

25

50

75

100

125

150

175

200

225

250

275

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

ABU DHABI GAS FLARING TREND

261

250

192

156

94

144

132

116

7461

53

38 35

Courtesy of

ADNOC

Schlumberger Carbon Services Middle East and Asia

Sky Sky Sky Sky

• Enhanced Oil

Recovery

• Enhanced Coal

Bed Methane

• Old Oil/Gas

Fields

• Saline

Formations

Oil

Oil Gas CO2

Gas + CO2 Gas

Flare Gas

Recovery

Reformer

+ CO2 Sep

Air Separation Unit

Amine

Absorption

Fuel

Gas

CO2

Compression

& Dehydration

Power & Heat

Power & Heat

Power & Heat

CO2 Removal

N2

N2 O2

O2

H2

N2

O2

CO2

CO2

CO2

CO2

CO2

N2

O2

CO2

Flare

Air

Flare Gas

Recovery

Flue Gas

Scrubbing

Precombustion

Decarbonisation

Oxyfuel

Acid Gas Removal

Air

Air

Carbon Capture and Storage in E&P

Schlumberger Carbon Services Middle East and Asia

CO2 EOR

Schlumberger Carbon Services Middle East and Asia

Oil Displacement in CO2 EOR

Swelling the crude oil

Reducing oil viscosity

Reducing oil density

Reducing the gas-oil interfacial tension

Solubility process

Vaporizing (extracting) lighter hydrocarbon in crude oil

Generating miscibility by the multiple contact process if the pressure is sufficiently high

Schlumberger Carbon Services Middle East and Asia

US CO2 EOR Production

0

50,000

100,000

150,000

200,000

250,000

300,000

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

EOR

(BPD

)

Schlumberger Carbon Services Middle East and Asia

Issues with CO2 EOR

CO2 availability

Recovery estimates

– Relative permeability end point values

– Slim tube MMP experiments

– Timing of CO2 EOR

– CO2 Utilization

Reservoir / well integrity issues

Schlumberger Carbon Services Middle East and Asia

40 Tcf

EUROPE

CO2

H2S

CO2 + H2S

59 Tcf

SOUTH AMERICA 35 Tcf

AFRICA

641 Tcf

FSU

1552 Tcf

MIDDLE-EAST

249 Tcf

FAR-EAST

Source: Iris 21 database from IHS Energy -June 2004

2576 Tcf

40% of remaining reserves are sour (Excluding NAM)

Remaining Gas Reserves with CO2>2% and/or H2S>10ppm

Schlumberger Carbon Services Middle East and Asia

High CO2 Natural Gas - EOR Synergy

CO2 Capture

High CO2

Gas Reservoirs

Mature

Oil Reservoirs

Low RF

CCS + EOR

PROCESSES

Natural Gas

LNG Sales

Incremental

Oil Recovery

CO2 Storage

Schlumberger Carbon Services Middle East and Asia

Schlumberger Focus in CCS

CO2 Capture

Services(Process)

CO2

Transportation(EPC)

Reservoir

Development

Services(SLB-OFS)

Carbon

Services

Carbon Capture &

Storage

R&D

Technical Consulting

Reservoir

Management

Support

(IPM-DCS-SIS)

SCS works with customers to identify CO2 Capture and Storage opportunities and recommend options for implementations.

SCS works closely with OFS segments and alliance partners to implement CCS projects

Schlumberger Carbon Services Middle East and Asia

Current Research Activities

Time lapsed 3D Seismic CO2

Eclipse for CO2 Service

Geochemical Simulator

Geomechanical Simulator

CO2 resistant cement

ESP / HPS for CO2

Next generation reservoir simulator

Risk Assessment

Schlumberger Carbon Services Middle East and Asia

Field Projects

Schlumberger Carbon Services Middle East and Asia

Monitoring Using RST – S Measurement

CO2 Injection :

Start – Oct 4th / Stop - Oct 14th

(*) Sakurai et al. , SPWLA 46th – June 26-29th - 2005

RST injection well

Schlumberger Carbon Services Middle East and Asia

Microseismics

Main applications:

Injection control

Avoid fracturing cap rock

Control CO2 displacement

Fault Re-activation

Schlumberger Carbon Services Middle East and Asia

Sleipner Seismic Monitoring Results

Courtesy SACS2

1994 1999 2001 2002

“Leakage” into

Sand wedge

Schlumberger Carbon Services Middle East and Asia

Otway Basin Pilot Project - Australia

Schlumberger Carbon Services Middle East and Asia

Schlumberger Involved CO2 Projects

Sleipner

Weyburn

In Salah

Gorgon

Otway

FrioLost Hills

R&D Consortia and Projects

GCEP Stanford University

IPGP (France)

CO2CRC (Australia)

CO2ReMoVe (EU)

COSMOS-1 (France-Germany)

MOVECBM

Battelle (US-DOE)

Frio (US-Texas)

Otway (Australia)

CS Energy

CS Energy

PETRONASParticipation in international forums

Zero Emission Fossil Fuel Power Plant (EU)

Carbon Sequestration Leadership Forum

IEA Greenhouse Gas R&D program

Schlumberger Carbon Services Middle East and Asia

CO2 Sequestration Business - Challenges

Upstream

Transportation

EPC, Gas processing

R&D Technology

Asset Ownership

Policies

Awareness

Economic Incentive

Will of people

Need

PROJECT

Technical Capabilities Societal Factors

Schlumberger Carbon Services Middle East and Asia

CCS in the Middle East

The region has huge storage capacity.

CO2 EOR can make sequestration economically attractive in the

short term.

Storing CO2 in carbonate reservoirs has not been done elsewhere,

and offer unique opportunities.

High volume demonstration projects needed

E&P industry could be a part of “Solution to Climate Change” issue

Schlumberger Carbon Services Middle East and Asia

Enhancing Global Energy Security, Role of Technology in the Petroleum Sector

Thank you