Unlocking the potential from UKCS low deliverability reservoirs Colin Cranfield (DTI) Pete Naylor...
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Transcript of Unlocking the potential from UKCS low deliverability reservoirs Colin Cranfield (DTI) Pete Naylor...
Unlocking the potential from UKCS low
deliverability reservoirs
Colin Cranfield (DTI)Pete Naylor (ECL Technology)
slide no. 2
Overview
• Background– PILOT vision
– Size of the prize
• DTI study– Literature review
– Meetings
– Workshop
• Ongoing activities
slide no. 3
PILOT - vision & challenges
• Maintaining UK production– 3 million boe/d in 2010
slide no. 4
Total UKCS production (million boe/d)
0
1
2
3
4
5
2000 2002 2004 2006 2008 2010
0
1
2
3
4
5
Possible developments
Probable developments - upside
Approved fields - upside
Probable developments - 2P
Approved fields - 2P
PILOT targets
slide no. 5
PILOT - vision & challenges
• Maintaining UK production– 3 million boe/d in 2010
• Production increments needed from– Brown fields
– Undeveloped discoveries
– Exploration and appraisal success
slide no. 6
Undeveloped Discoveries
• Significant UKCS potential resource
slide no. 7
0
5
10
15
20
25
30
35
Cumulativeproduction
Approvedfields
Likelydevelopments
Potentialadditional
Yet to find
Bill
ion
bo
e
high
low
low
high
P3
P2
P3
P2
UKCS - produced & remaining
• 300+ undeveloped discoveries
• > 6 BBOE reserves
slide no. 8
Undeveloped Discoveries
• Significant UKCS potential resource
• Technical challenges– Heavy oil
– HPHT
– Sour reservoirs
– Low deliverability
slide no. 9
Undeveloped Discoveries
• Significant UKCS potential resource
• New technical challenges– Heavy oil
– HPHT
– Sour reservoirs
– Low deliverability• Undeveloped Discoveries Workgroup survey
slide no. 10
UDW survey – development barriers
0
20
40
60
80
100
120
140
Reserves Subsurfaceissues
Welldeliverability
Fluid / surfaceissues
Dist. frominfrastructure
No
. of
hig
h s
core
s
slide no. 11
0
20
40
60
80
100
120
140
Reserves Subsurfaceissues
Welldeliverability
Fluid / surfaceissues
Dist. frominfrastructure
No
. of
hig
h s
core
s
UDW survey – development barriers
slide no. 12
DTI action on low deliverability
• Low deliverability is a barrier in at least 46 undeveloped discoveries
• 35 undeveloped discoveries examined in detail
Review literature
Collate data
Structured discussions
Interactive workshop
Disseminate results
slide no. 13
Literature review – 4Q 2000
• Many reasons for low deliverability– Industry does not focus on overall problem
• Established remedial techniques– Hydraulic fracturing
– Long deviated wells
• Relatively few novel techniques– Seismic
– Visco-elastic fracturing fluids
slide no. 14
Study - Indicative HCIIP distribution
• Aggregate undeveloped discoveries studied:– HCIIP > 2.5 billion boe– Technical reserves > 0.5 billion boe
WoS
NNS
CNS
SNS
By geographical area
Oil
Gas
Cond
By fluid type
slide no. 15
Mind maps to identify barriers
PORE SPACE
WELL&FACILITIES
MISC
FLUIDS
GEOLOGY
Barriers to Development?
slide no. 16
Mind maps to identify barriers
GEOLOGY
Barriers to Development?
impossible to mapbelow seismic resolution
definition of top/bottom
reservoir continuity
limited local extent
selection of geological model
limited data
slide no. 17
Mind maps to identify barriers
GEOLOGY
Barriers to Development?
impossible to mapbelow seismic resolution
definition of top/bottom
reservoir continuity
limited local extent
selection of geological model
limited data
slide no. 18
Mind maps to identify barriers
PORE SPACE
WELL&FACILITIES
MISC
GEOLOGY
FLUIDS
Barriers to Development?
low permillite
diagenesis
cost of wells
cost of tie-backs
too risky!
impossible to mapbelow seismic resolution
definition of top/bottom
reservoir continuity
limited local extent
selection of geological model
limited data
limited reserves
limited data
aquifer support?
BARRIERS
slide no. 19
Objectives networks for solutions
increasedeliverability
fracturingacidise
stimulation
slide no. 20
Objectives networks for solutions
increasedeliverability
'nuclear'frac
fracturing
proppantflowback
HPHTfrac
beef upcompletion
design
acidise
stimulation
slide no. 21
Objectives networks for solutions
increasedeliverability
improvesand
control
cheapergravel
packing
cheapexp'dablescreens
proveHPHT
screens
longerhorizon
gravel pk
copewith sandproduction
'nuclear'frac
fracturing
proppantflowback
HPHTfrac
beef upcompletion
design
HPHThoriz
drilling
HPHT wellcontrol
underbalancedrilling
welldesign
multi-lathigh angle
acidise
maxperf
seismic
teflonpipelines
downholepumpsgaslift
subseaseparation
multiphase
pumping
lowersep
press
modifieddesigncodes
subseapig launch
viscosifywater inj
IOR
bugs
wettabilityalteration
improveskin
sandmanage-ment
stimulation
maximizecontactwith res
improveflowline
performance
slide no. 22
0
10
20
30
40
50
Po
or
res
erv
oir
ch
ara
cte
ris
ati
on
Lo
w p
erm
Co
mp
art
me
nts
,th
in b
ed
s
Lo
w e
ne
rgy
Co
mm
ing
ling
Lo
w r
es
erv
es
Co
mm
erc
ial,
co
ntr
ac
tua
l
Infr
as
tru
ctu
re,
ulla
ge
We
ll, f
ac
iliti
es
,lic
en
ce
co
sts
Un
de
ve
lop
ed
re
se
rve
s (
%) Oil
Gas
Relative importance of barriers
Technical Barriers Non-technical
slide no. 23
0
10
20
30
40
50
60Im
pro
ve
dS
eis
mic
Ad
va
nc
ed
,c
he
ap
er
we
lls
Ch
ea
pe
r,e
ffe
cti
ve
fra
cc
ing
Ge
o. m
od
els
/a
na
log
ue
s
Sa
nd
ma
na
ge
me
nt
Co
mm
erc
ial,
co
ntr
ac
tua
l
Un
de
ve
lop
ed
re
se
rve
s (
%)
Oil
Gas
Relative importance of solutions
Technological Solutions Commercial
slide no. 24
Conclusions
• Primary technical barriers:– Uncertainties in reservoir characterisation
– Compartmentalisation
– Low permeability
• Solutions exist in many cases– Relatively few technology gaps
• Significant contractual / commercial barriers
• Future opportunities - what is required:– Change in culture
– Strategies to manage risk
slide no. 25
Recommendations
• Evaluate progress in key technological areas– Quantify potential benefits– Report successes / failures– Disseminate best practices
• Reduce risk– Collaboration– Field trials
• Review procurement practices– Focus on value
• Raise awareness– Technology champions
slide no. 26
Current strategies (1)
• DTI / PILOT– Fallow blocks /discoveries initiative
slide no. 27
Fallow process
Four years of no drilling, or no Development Programme four years after discovery
Doing all that canbe expected
Misalignment, Not economic,Commercial barriers
Market testing (12 – 18 months)
Divest/ReassignRelinquish
Retain
CLASS A CLASS B
Renewed activity?NO
YES
slide no. 28
Current strategies (2)
• DTI / PILOT– Fallow blocks / discoveries initiative
– Shortened licence terms for new licences
– Access to infrastructure
– Consultation on “promote” licences
– Availability of regional data
– UK-Norway North Sea co-operation
slide no. 29
Current strategies (3)
• DTI / PILOT– Commercial “Code of Practice”
– Study on technology uptake
• Brown field work group
• ITF solutions to low permeability
• Show-case events
slide no. 30
Potential timeline
2002 20032002
ITF Low perm. solutions
Code of practice
DTI fallow initiative Fallow assets onto LIFT
2004 2005
Increasing impact of specialist companies
PILOT 2005 target
Continuing efficiency and technology improvements
slide no. 31
Further information
• www.og.dti.gov.uk
• www.pilottaskforce.co.uk
• www.indigopool.com/publicchannel/uklift