www.intsok.com

Capabilities in IOR in the Norwegianbased petroleum cluster

In this presentation

• Categories of measures for Improved Oil Recovery• Suppliers within each category• Examples of implementation and benefit

Eva LjoslandRegional DirectorINTSOK

MoscowNovember 16, 2010

2

Definitions

Improved oil recovery - IOR(Norwegian Petroleum Directorate)

The planning and execution of measuresintended to increase or accelerate oilrecovery from a hydrocarbon field in aprofitable manner compared to currentplans with corresponding forecasts

Improved Oil Recovery - IOR(Society of Petroleum Engineers)

Any of various methods, chiefly reservoirdrive mechanisms and enhanced recoverytechniques, designed to improve the flowof hydrocarbons from the reservoir to thewellbore or to recover more oil after theprimary and secondary methods (waterand gas floods) are uneconomic.

Enhanced Oil Recovery (EOR)Term normally used for the advancedchemical recovery processes, which canbe part of an IOR project.

IOR in INTSOK

’Improved Oil Recovery’ (IOR) isused for all measures which canincrease or accelerate the oilrecovery of a field.

There is emphasis on measuresbased on information gatheredduring production, and onmeasures based on advancedtechnology.

3

The unrealised potentialM

illio

nSm

3

oil

Remaining resources after planned closingof field, in accordance with approved plans

Oil produced as of 31.12.2009

Remaining reserves

1993-1996 1997-2000 2001-2004 2005-2008

Growth of reserves from discoveries

0

100

200

300

400

Mill

ion

Sm3oi

l

Growth of reserves from fields on production

Growth in reserves on Norwegian Continental Shelf (NCS)

Time

Multi-phaseprocessingIncreased

recovery andvalue creation

Multi-phasetransport

3Dseismic

Waterinjection

TOGI

Horizontaldrilling

4Dseismic

Cables forocean bed

Integratedoperations

1977COD/Ekofisk

1979Statfjord

1986Ekofisk

1991Oseberg

1996Troll

1999Gullfaks

2003Valhall

2004Ekofisk

2007Tordis

Technological development

6

The key to high recovery factors

• Management focus• Setting targets and monitoring progress• Aggressive data acquisition programs• Cooperation with partners and service providers• Experience sharing across multidisciplinary asset teams

Technology is essential - but far more than technology is required:

..... i.e., a systematic and continuous effort toidentify, evaluate and implement IOR measures

Expe

nses

(bill

. NO

K, 2

009)

Cos

t per

uni

t (N

OK

/bar

rel)

Development costs

8

Well interventionWell intervention

4D seismic4D seismic

Reservoir modellingReservoir modelling

Water and gas injectionWater and gas injection

Produced waterProduced watermanagementmanagement

Reservoir Management - IOR - Success stories

Expected ultimate recovery factors

1986 1996 2004 Current ambitionStatfjord 49 % 61 % 68 % 70 %Gullfaks 46 % 49 % 60 % 68 %

Advanced wells and costAdvanced wells and costefficient infill drillingefficient infill drilling

Top side modificationsTop side modifications

Production startProduction start

6

Oseberg main field – liquid reserves development

MSm3

Oseberg C1991

Oseberg

TrollTOGI1991

First dedicatedNess well 1995

Postponed gas export

Horizontalmulti-branchedwell 1995

Oseberg C

20+ New well targets

5 Postponed gas injection

20-30 Oseberg D 1999: Incremental gascapacity and NGL

20-30 Horizontal wells. Multilateral wells

20-25 Ness channel system development

40-50 Revised production mechanismTOGI ImportDevelopment of northern part byOseberg C

50-60 Increased STOIIPMaturing of technical reserves

159 Base reserves 1983

10

Modeling !!OptimisingPlanning

11

12

Reservoir Modelling and Planning – the OIL COMPANY TASK

Reservoir simulation and recovery planning§ AGR Group - Analysing IOR potential§ Aker Solutions – Consultancy in field planning, IOR studies and production technology§ IFE – Reservoir and tracer simulation tool§ IRIS – Field studies and special simulation tools and services§ Roxar – Reservoir interpretation, modelling and uncertainty. Reservoir simulation and history matching§ SINTEF Petroleum Research – full field and specialized models and simulation services§ SPT group – Reservoir and near-well simulation tools§ Weatherford Petroleum Consultants – Reservoir modelling and simulation

Recovery planning is normally based on full field or sector simulation and this isalso the basis for optimised recovery.

The operating oil company is in charge,but will benefit from additional capacity and complimentary expertise.

Risk assessment and decision models§ AGR Group – Risk Asessment§ IRIS – Risk assessment models and services

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Data Acquisition and Processing – full field

Full field or regional data gatheringProcessing and analysisVisualization and static modelling

Seismic surveys and interpretationElectromagnetic surveys and interpretationTracer surveys

14-

Reservoir Monitoring with 4-D Seismic (GRM)

1985

1999

Added value for Gullfaks NPV >500 MUSD

• Pioneered in Statoil since the early 1990s.• Both towed streamers and ocean-bottom surveys (OBS) have been used• 4D feasibility study performed for all fields• Ongoing 4D projects on most fields• More than 40 wells drilled based on 4D seismic• Pilot on permanent fibre optical OBS being installed

0.90.0 Oil saturation

15

Seismic and other full field surveys and interpretation§ Aker Solutions – seismic interpretation§ EMGS – Electromagnetic surveys and processing§ EMTEK - Electromagnetic surveys and processing§ Kongsberg - Visualization of reservoir and geophysical data§ NORSAR Innovation – 4D seismic modeling and rock physics

modelling§ OCTIO – Acquisition and processing seismic data§ READ – Down hole seismic acquisition and processing (VSP).

Permanent Seismic Down hole Monitoring (PSM)

Data Acquisition and Processing – full field

Tracer surveys§ IFE – Tracers mapping reservoir dynamics – ideal, partitioning

and natural tracers, injection services and analysis. Monitoringchemical flooding.

16

Data Acquisition and Processing – local measuments and lab

Geo lab data and processingFluid lab data and processingSub sea monitoringDown hole monitoringTopside monitoring

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OilFormation water

Injection water

Reservoir monitoring through logs and 4D seismic

1989 1992 1993 1994 1995 1997 2007

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Data Acquisition and Processing – local measuments and lab

Geo & fluid lab data and processing§ APT – Biostratigrafic data based on core. Biosteering while drilling§ Aquateam - Water quality and chemicals. Lab- and pilot studies§ IFE – Stable isotope data and biomarkers§ IRIS - General multifunction petroleum lab§ Numerical Rocks – Petrophysical and reservoir fluid flow data

acquisition based on pore scale modelling§ SINTEF Petroleum Research – Multifunction fluid lab

Down hole monitoring§ READ – Multiple types cased hole data acquisition and processing§ RESMAN – Tracers for monitoring well inflow performance§ Roxar – Permanent PT Downhole Monitoring System (PDMS)

Sub sea and top side monitoring§ ClampOn – Sand detection§ Framo Engineering – Multiphase monitoring§ MPM – Subsea and topside multiphase & wetgas measurement§ ProAnalysis - Argus oil in water online monitors§ Roxar – Sub sea PT amd multiphase monitoring

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Advanced flooding§ Polymer flooding§ Surfactant flooding§ Gel treatment§ CO2 injection§ N2 injection§ Water Alternating Gas

(WAG)§ Foam Assisted WAG

(FAWAG)§ Microbial EOR (MEOR)§ Steam injection§ Steam soak

Chemical Flooding

Conventional methods§ Pressure depletion§ Water injection§ Injection of natural gas

20 -

Water Alternating Gas or Simultaneous Water and Gas

Oil/Gas production – 300 000 BOEDWater injection – 650 000 BBLS

The Ekofisk field

22 -

Historic and planned injection per field

23

Advanced water injection

• Advanced water-based recoverymethods is presently an activefield of development– Low-salinity water injection

– Micro gels (Linked polymersolutions)

– Surfactant/polymer flooding

– MEOR

• Produced water management

POLYMERINJECTIONSKID

Angola Block 17 Dalia FPSO - Operated by Total

24

CO2 for IOR in North Sea

North Sea in general• Large well spacing• Very costly offshore

modifications• Extensive use of gas

injection and waterinjection – low residualsaturations

• Contamination of salesgas

• CO2 supply/CO2sources

• Competition with othermethods

Gullfaks in particular• Complex, strongly faulted

reservoir• High permeability in many

reservoir zones• Extensively water flooded• CO2 injection investigated

both by– full-field compositional

modeling– streamline simulation

• No economically viableCO2 injection alternativeidentified (yet)

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R&D / assessment of chemical flooding

§ AGR Group – Assess potential and decision basis for EOR projects§ Aquateam – Microbial EOR§ IFE - Broad petroleum research within recovery mechanisms and tracers for EOR operations§ IRIS – Broad petroleum research within reservoir technology, IOR & drilling§ NTNU - Broad Petroleum reseach§ SINTEF Petroleum Research – Broad Petroleum Research - WAG, FAWAG, polymers, surfactants, foam,

CO2 sequestation, fluid flow in porous media

Chemical Flooding

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Options for Improving recovery

§ Conventional infill wells§ Horizontal wells§ Multilateral wells§ TTRD (Through Tubing Rotary Drilling)§ Extended reach drilling

Drilling

27

Troll oil wells

• Increasingly longer well paths• Targeting a thinner oil column• Presently 114 horizontal wells

and 33 multilateral wells• Inflow control devices (ICD) in

many wells

Global leader in multilateral wellsGlobal leader in multilateral wells

28 -

Troll Oil reserves

PDOH-wellsGasProvince

Increasedwell density

Testprod.PetrojarlHorizontalwell

Troll PilotPDO P2 wells

PDO TRB G HI area

208277

353

649

385

945

1164

1225

1515

13281358

1411 1451 1467 1539

M bbl Ambition: Troll 300 = 1900 bbl

29

Rigs and drilling service§ AGR Group – Drilling management§ Odfjell Drilling – Rig and drilling services§ SeaDrill – Rig and drilling services

Drilling technology and equipment§ AGR Group – Riserless Mud Recovery§ Geomec Engineering - Improved wellbore stability and mud loss

management§ IRIS - Drilltronics§ PTC – Riser displacement cleaning tool§ Reelwell - Managed pressure drilling. Extended reach drilling

Alternative drilling and well intervention methods§ Aker Solutions – Coiled tubing. Light well intervention. Riserless

well intervention§ FMCTechnologies – Riserless Well Intervention (RLWI)§ Odfjell Drilling – Snubbing§ TTS-Sense – Rack and Pinion technology

DrillingWell design and planning§ add wellflow – Well planning consultancy§ AGR Group – Well planning, operations geosteering§ IRIS – research and verification of well design and down hole

equipment§ SINTEF Petroleum Research – Support for well design, planning

and real time analysis

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Options for improving recovery

§ DIACS wells (downholeinstrumentation and controlsystem)

§ Chemical treatments§ Down hole separation and

injection§ Down hole pumping and

compression§ Artificial lift

Well Technology

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• Statoil - advanced well technology:– 1997: First DIACS well (Snorre A)– 2003: First with open-hole sand screen and swell packs (Snorre B)– Open-hole gravel pack and chemical injection on zonal level (Urd)– First with optical flow meters on zonal level in a DIACS WAG injector (Veslefrikk)– Technology development on Troll - a success story difficult to match

Use of DIACS

Tubing

Packer

Cemented liner

Perforations

Surface operatedvalve.

Zone packer

StandardIn MLT wellIn combination

with gravel pack

With

ICD

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Well equipment§ AGR Group – Canseal, chemical zone isolation tool§ Aker Solutions - Wireline tractor and wireline logging services§ i-Tec – Equipment for smart wells§ Fishbones – Fishbones needles – open hole liner completion for well

stimulation§ PTC – Equipment for Wellhead, Well intervention and completion§ READ – Hydraulic expandable well systems, different kinds§ SeaWell - Completion equipment and service, Gas tight well barriers§ TCO – Smart plugs

Artificial lift§ PTC – Gas lift equipment

Well Technology

Downhole separation§ READ – Flow splitter, cyclone based

Well design and performance§ Geomec Engineering - Sand management, flooding optimisation§ IRIS – Research and verification of well design and down hole equipment§ Kongsberg – LedaFlow, dynamic multiphase simulations, flow assurance§ SINTEF Petroleum Research – Support on well design, planning and real

time analysis, fracturing and filtercake topics§ SPT Group and IFE – Olga Rocx, well and near-well multiphase

simulations

33

Options for improving recovery§ Sub sea pumping and compression§ Sub sea separation§ Sub sea power supply

Sub Sea Solutions

34 -

Troll Oil reserves

PDOH-wellsGasProvince

Increasedwell density

Testprod.PetrojarlHorizontalwell

Troll PilotPDO P2 wells

PDO TRB G HI area

208277

353

649

385

945

1164

1225

1515

13281358

1411 1451 1467 1539

M bbl Ambition: Troll 300 = 1900 bbl

35

Separation§ Aker Solutions – Processing solutions§ FMC Technologies– Subsea separators and

solutions§ GE Oil & Gas – Processing solutions

Pumping and compression§ Aker Solutions – Multiphase pumping and compression solutions§ FMC Technologies – Multiphase pumping and compression solutions§ Framo Engineering – Water injection pumps, Multiphase Pumps and Wet Gas Compressor§ GE Oil & Gas - Compressors§ PG Pump Solutions – Multiphase pumps§ Siemens Oil and Gas Offshore – Wet gas compressor

Sub Sea Solutions

Sub sea power supply§ ABB – Power supply§ GE Oil & Gas – Power Supply§ Siemens Oil and Gas Offshore – Power

supply

36

Topside modifications may be needed in an IOR project– as a supplement to other measures or as Improved Recovery in itself

§ Simplification, and reducing down-time§ Allowing low pressure production§ Debottlenecking - Gas processing capacity - Separator capacity - Water

injection capacity - Gas injection capacity - Produced water treatment etc

Topside Modification

Process simulation§ ABB – Prosess simulation and control systems§ AGR – Process simulation§ Aker Solutions – Process simulations§ FMC Technologies – process simulation§ IFE – Process simulation§ Kongsberg – Process simulation and control systems,

lifecycle simulation, online and enterprise simulation§ Siemens Oil and Gas Offshore - Process simulation and

control systems§ SINTEF Petroleum Research – Process simulation, flow

assurance§ Petrolink – Process simulation and flow assurance

In-line separation§ FMC – CDS inline separation

cyclone based§ ProPure – Multiphase flow

conditioner for inline separation

37

Improving recovery

§ Produced watertreatment

§ Reduce waterproduction at source(well technology)

§ Isolate waterproducing zones

§ Intelligentcompletions

§ Down holeseparation andreinjection

§ Reinjection ofproduced water

Water Management

Injection strategy:

Efficient pressure support in allformations.

Optimize the number of injectors byreducing number of dedicated injectorsto release slots for production wells.

ICV (DIACS) injection wells with zonecontrol and flow measurements in allsegments.

Injection control 2008 +

Inject the right phase in the rightformation at the right time.

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Water management consultancy§ AGR Group - Design water injection projects

for IOR§ Aquateam – Consultancy and R&D for water

management, operational support, monitoringand documentation

§ Geomec Engineering – Rock mechanicsconsultancy for water injection

§ NIVA - Water quality assessment and watermanagement consultancy

Produced water treatment§ Hamworthy Gas Systems – Coalescer (VIEC)§ M-I EPCON – Produced water cleaning,

Compact Flotation Unit (CFU)§ NIVA – microbial water cleaning techniques.§ ProPure – Produced water treatment – Four

proprietory water treatment techniquesamong these C-Tour and TORR.

§ Siemens Oil and gas offshore – Producedwater treatment. Walnut shell filter

§ TS-Technology – Produced water treatment,Compact flotation Unit

Water Management

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Integrated Operations

data gathering

analysis

processing

transfer

feedback

Producingwells

Separationprocess

Drilling

visualizationIntegration of data from multiple

sources in wells andproduction process or fromdrilling and reservoir model.

Real time analysis and action

Visualisation and control roomsolutions

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Integrated Operations

Research and DevelopmentDNV – IO in the high North – Development of

standards for data representation tofacilitate communication in the IO chain.

NTNU – Center for Integrated Operations in thePetroleum industry. Partnership fordevelopment of IO technology.

data gathering

analysis

processing

transfer

feedback

Producingwells

Separationprocess

Drilling

visualization

§ ABB – Complete IO systems, data gathering, transfer,processing and control systems

§ AGR – Well planning and delivery process. Optimizing fieldoperations

§ Aker Solutions - Data gathering, transfer and processing§ Bjørge - Remote diagnostics software, communication

systems§ EPSIS – Integrated Operation Services International§ FMC Technologies – Flow management, production

optimisation, software and control systems§ Framo Engineering – Integrated operation services

for sub sea systems§ IFE – Integrated work process analysis, software

and consultancy. Tracer based process management§ IRIS – Integrated operation in drilling§ Kongsberg – Complete IO systems, data gathering, transfer,

processing, visualization and control systems. Collaborationfacilities and work process design

§ Octio Geophysical – Real time decition systems§ Odfjell Drilling – Consultancy for drilling operations§ Petrolink – Complete IO systems with collaboration

models,work processes, communication systems§ Roxar – Reservoir monitoring and data transfer.§ Siemens Oil and Gas Offshore - Complete IO systems,

data gathering, transfer, processing and control systems§ SINTEF – Consultancy on IO for drilling§ Tampnet – Fiber-net communication

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