IN 1984,

THE HISTORY OF SAUDI ARABIA’S GAS PROGRAM HAS BEEN RICH IN ACHIEVEMENTS AND GROWTH OVERTHE LAST 40 LAST 40 LAST YEARS. IN 1975, THE KINGDOM INITIATED THE MASTER GAS SYSTEM (MGS) THAT BECAME THAT BECAME THAT OP-ERATIONAL BY 1977 WITH THE COMMISSIONING OF THE BERRI, SHEDGUM AND ’UTHMANIYAH GAS PLANTSTO PROCESS ONLY THE ASSOCIATED GAS THAT IS THAT IS THAT RECOVERED WITH OIL PRODUCTION. ASSOCIATED GAS ISFOUND DISSOLVED IN SOLUTION WITH THE OIL OR AS A FREE “GAS CAP” ABOVE THE OIL IN THE RESERVOIR.

S

AUDI ARABIA’S

B Y Dr. Zillur Rahim, Mike Haas, Adnan A. Al-Kanaan and Dr. Hamoud A. Al-Anazi

the nonassociated gasfrom the ’Uthmaniyah and Shedgum Khuff reservoirs were introduced into the

MGS. Nonassociated gas is found in natural gas reservoirs that do not contain crude oil, but may have condensate in solution. In 2001 and 2003, two new grass-root gas plants in the Hawi-yah and Haradh areas were put fully onstream to process only nonassociated gas, followed by the Hawiyah gas plant expan-sion along with the Hawiyah natural gas liquid (NGL) recovery plant. Furthermore, the Khursaniyah gas plant (KGP) went on-stream in 2010 to process only associated gas and later in 2012 the KGP facilities were expanded to process nonassociated gas from Karan reservoir Khuff gas.

The gas program’s future is bright with the addition of two new gas plants, Wasit and Fadhili, expected to come onstream in 2015 and 2018, respectively, along with an-other new plant, Abqaiq, which will process gas from the Abqaiq and Berri Khuff gas fields. Overall, the new gas plants will raise the raw gas feed for the MGS to almost 20 billion standard cubic feet per day (Bscfd).

DELINEATION PROGRAMThe delineation and deepening initiatives to ascertain con-ventional and tight gas resources in and around existing fields have resulted in the discovery of new reservoirs and added reserves by extending the field limits.

Deepening selected wells to the pre-Khuff sandstone lev-el after drilling through the primary Khuff carbonate target is a cost-effective method to assess new formations in exist-ing fields and to expand the reserves portfolio. This strat-

ABOVE: A gas expansion loop between the wellhead platform and the auxiliary platform in Karan field.

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egy, along with new discoveries and improved production due to the use of novel technologies, increased the nonasso-ciated gas reserves by 70 percent in the past 10 years. The current yearly addition through the continuation of such strategies is to replenish production and increase reserves cost effectively to help meet the Kingdom’s increasing en-ergy requirement.

UNDERBALANCED COILED TUBING DRILLINGAn example of a new technology application is under-balanced coiled tubing drilling rigless, which is a “game changer” for the gas program that has increased the total productivity of tied-in low rate gas producers by 1.3 Bscfd, with more wells identified and planned for coiled tubing workover without utilizing a conventional rig.

The rigless unit utilizes slim drilling assemblies to place multi-slim laterals within the reservoir while flowing the well and transferring the produced gas to the nearest processing facility throughout the drilling operation — eliminating flaring and protecting the environment.

Over the past five years, many low rate gas wells were re-drilled with this application that delivered higher gas rates, reduced drilling time and lowered unit development cost compared to conventional drilling.

MEETING DOMESTIC ENERGY REQUIREMENT WITH GASThe Peak Seasonal Production (PSP) Strategic Plan is to meet domestic power requirements by supplying additional gas during peak de-mand periods — to reduce burning crude oil — which has worked successfully by targeting prolific res-ervoirs, implementing best reservoir manage-ment practices, and optimizing gas pro-duction priorities and spare plant capacity to minimize the volumes of supplemental crude oil burned.

Last year, 9 million barrels of crude oil were saved. Since start-ing the PSP strategy in 2010, there has been an approximate 85

percent reduc-tion in the vol-umes of supple-mental crude oil burned, amounting to 35 million bar-rels. The goal is to fully offset the supple-mental crude oil burning in the Eastern region in the coming years by capitalizing on full continu-ous production of the Karan field, the ongoing Wasit and Fadhili gas plant developments, other new planned gas plants and increments, and fully utilizing the dedicated PSP.

OFFSHORE DEVELOPMENTSSaudi Aramco has been exploring, developing and producing hydrocarbons for more than 80 years, but it was not until 2011 that the Karan field — the first offshore nonassociated gas field — was put into production. Saudi Aramco developed the Karan gas field — located in one of the busiest oil tanker shipping areas in the world — in record time from exploration to production.

Danah Alsana, Zillur Rahim, Anas Omair,

Adnan A. Al-Kanaan (Manager), Mike Haas

and Ahmed Omair

Adnan A. Al-Kanaan, GRMD manager.

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The field was discovered in 2006 and was put into early production in July 2011 — just five years after discovery and three years after the final invest-ment decision. The Karan field is Saudi Aramco’s first offshore nonassociated gas development that was “fast tracked” with 21 startup wells drilled down to 14,000 feet subsea from five multi-well slot platforms in a water depth of 175 feet, com-pleted with 7-inch monobore tubing completions to meet the required well production rates. The gas is used for do-mestic consumption to meet the Kingdom’s energy needs for the foreseeable future, resulting in a significant reduction of crude oil burning that would otherwise be required to generate energy.

The new Arabiyah and Has-bah offshore Khuff reservoir gas field increments are on track to supply gas to the new grass-roots Wasit gas plant with a planned completion date in 2015. The Arabiyah and Hasbah fields are being developed with big bore 9 5/8-inch completions rated at 10,000 pounds per square inch working pressure for the first time in the world to supply Saudi Arabia with enough gas to meet its increasing energy demand.

The big bore concept reduced the well count from 34 conven-tional 7-inch wells to 13 big bore completed wells, thereby saving significant upstream costs, and providing much more production flexibility to meet gas demand. The new Fadhili nonassociated gas processing plant with a completion date of 2018 is designed to process gas production from the offshore Hasbah gas field and from the Khursaniyah onshore gas field.

Dual well packer assembly to provide added isolation.

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GAS RESERVOIR MANAGEMENT DEPARTMENTThe Gas Reservoir Management Department (GRMD) isresponsible for the company’s nonassociated gas program with 700 wells that produce close to 8 Bscfd of raw gas with 425,000 barrels per day of condensate. With more than 100 professionals focused on developing the Kingdom’s nonas-sociated gas reserves, GRMD has thrived under the building blocks of attracting a talented and qualified workforce, estab-lishing a healthy and creative working environment and em-powering staff to make decisions to handle the challenges and workload required to meet the Kingdom’s future gas needs. A large percentage of the development budget over the next 10 years is dedicated to the conventional gas program to meet the increasing gas demand. By identifying a robust gas devel-opment program, new technologies and the necessary staffing levels, the department is well positioned to meet these goals.

GRMD is committed to the “Energy to Kingdom” initia-tive in the Accelerated Transformation Program for the gas program’s role in identifying additional gas resources and increasing gas supply. The department continues to steward new technologies within the gas program to enhance pro-duction and increase reserves.

New technologies, such as seismic imaging to identify “sweet” spots, long extended reach horizontal wells to improve reservoir contact, multistage fracture stimulation to enhance production from relatively tighter formations, underbalanced coiled tubing drilling to tap into productive layers, and evaluating the feasibility of using low-pressure systems to significantly decrease field abandonment pres-sures and increase production and ultimate gas recovery. These are being utilized to produce gas that otherwise would not be recovered using conventional methods.

These endeavors and continuous testing and application

of novel technologies have increased the success rate and significantly enriched Saudi Aramco’s gas program.

TECHNICAL TALENTMeeting the technical talent requirement plays a major rolein the expansion of the nonassociated gas program in new frontiers as well as in expanding the life of existing fields through the introduction of innovative evaluation tech-niques and new technology.

GRMD works in close collaboration with geoscientists, drill-ing, facility and production engineers, as well as completion, stimulation, and production specialists, to ensure that overall well and field development criteria are followed and met.

Reservoir management engineers are key enablers in opti-mizing field development, maximizing property value, evalu-ating production performance, ensuring reservoir health, and are responsible for supplying and sustaining nonassoci-ated gas production for the Kingdom. All GRMD engineers are specialized in general reservoir engineering as well as many other petroleum engineering disciplines, such as well completion and hydraulic fracturing, rock and fluid proper-ties, pressure transient testing and production forecasting.

The qualified young professionals are closely mentored by senior staff to receive the proper knowledge and training to meet the future challenges of producing oil and gas in more complex reservoirs. GRMD has positioned itself to meet these challenges by hiring the most talented workforce pos-sible, providing world-class training and empowering them to perform their tasks.

GREAT LEADERSHIPOver the years, the GRMD, responsible for all nonassoci-ated gas production operations in the Kingdom, has dem-

onstrated great leadership to attain the goals and objectives set by Saudi Ar-amco securing a very prestigious position within the international oil and gas industry. The integrity, opti-mism, and mo-tivation among the engineers,

LEFT: Irregular shape (top) and conventional sort-ed (bottom) high strength prop-

pant. RIGHT: A sample of clean fracture fluid.

novel technologies have increased the success rate andsignificantly enriched Saudi Aramco’s gas program.

TECHNICAL TALENT technical talent requirement plays a major role

of the of the of nonassociated gas program in new in expanding the life of existing of existing of fields

introduction of innovative of innovative of evaluation tech- technology.

collaboration with geoscientists, drill- engineers, as well as completion, specialists, to ensure that overall

are followed and met. are key enablers in opti-

property value, evalu- reservoir health,

sustaining nonassoci- GRMD engineers

well as as well proper-

forecasting. by

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and the collaboration with other departments, have led to remarkable achievements, while all tasks were performed with professionalism, knowledge and dedication.

Adnan A. Al-Kanaan has been leading the department as manager since its inception and is continuously providing his strong and dynamic support and encouragement to his staff to meet the industry challenges.

For his efforts in increasing overall production and reserves through new technologies, and based on his initia-tives, directives, achievements and management capabili-ties, Al-Kanaan received the prestigious 2014 “Production Manager of the Year” award from the Oil and Gas Middle East (OGME). While receiving the award in a ceremony conducted in Abu Dhabi, UAE, Al-Kanaan commented, “This is a recognition of the entire team. I do not consider this to be just for myself; this award is for every single one of the 150 professionals who worked on and supported the gas program.”

HYDRAULIC FRACTURING INDUSTRY LEADERMultistage fracturing (MSF) in horizontal wells has been a major development initiative for Saudi Aramco’s gas pro-gram, especially compared to dual lateral and vertical stimu-lated well methods. This technique includes drilling a well in the minimum horizontal in situ stress direction, installing a completion assembly comprised of injection ports and zonal isolation packers, and fracturing the well in multiple stages.

The induced fractures grow transverse to the wellbore, thereby staying independent and separated from one an-other and contributing to the reservoir/fracture contact area.

GRMD initiated several environmental-friendly optimization strategies to enhance the MSF technology that was tested successfully, thereby increasing well potential and sustain-ability. Saudi Arabia today is internationally recognized in the field of hydraulic fracturing, contributing to its technical enhancement, and deriving immense benefits from its appli-cation by achieving higher and sustained gas rates.

The significant improvement of gas production and trans-forming low producing areas to commercially viable assets with the use of MSF has enabled this technology to become very popular to the overall gas field development strategy.

Since its inception, the MSF has made substantial prog-ress in improving and optimizing the conventional practices in both stimulation treatments and completion assemblies with the testing and use of high strength irregular shaped proppant, retarded acids, emulsified systems, low polymer non-damaging fluids, advanced open hole multistage com-pletion assemblies, cased plug and perforation stimulation procedures, and innovative sequential pumping operations.

As opposed to conventional proppants that are mostly well-sorted sand grains, high strength proppants are made of special materials, such as ceramic or bauxite that can withstand very high closure stress and overburden pressure without becoming deformed and losing permeability. The appropriate use of such proppants also resists gel damage, high temperature degradation, embedment, and crushing. Although proppants are usually round or oval in shape, newly obtained irregular shape proppants that will provide even higher long-term permeability and restrict proppant flow back during production are now being tested. The

proppant flow back challenge is currently being mitigated with the use of resin-coated proppants that stick the proppants together, thereby restricting the move-ment but that also reduces the proppant permeability, some-thing that needs to be avoided if possible.

The two types of completions used for MSF treatments in Saudi Arabia are the open hole, unce-mented assembly and the cased hole perfo-ration configuration. The isolation between fracturing stages is obtained by mechani-

High strength irregular shaped proppant.

and the collaboration with other departments, have led to remarkable achievements, while all tasks were performed with professionalism, knowledge and dedication.

Adnan A. Al-Kanaan has been leading the department as manager since its inception and is continuously providing his strong and dynamic support and encouragement to his staff to meet the industry challenges.

For his efforts in increasing overall production and reserves through new technologies, and based on his initiatives, directives, achievements and management capabilities, Al-Kanaan received the prestigious 2014 “Production Manager of the Year” award from the Oil and Gas Middle East (OGME). While receiving the award in a ceremony conducted in Abu Dhabi, UAE, Al-Kanaan commented, “This is a recognition of the entire team. I do not consider this to be just for myself; this award is for every single one of the 150 professionals who worked on and supported the gas program.”

HYDRAULIC FRACTURING INDUSTRY LEADERMultistage fracturing (MSF) in horizontal wells has been a major development initiative for Saudi Aramco’s gas program, especially compared to dual lateral and vertical stimulated well methods. This technique includes drilling a well in the minimum horizontal in situ stress direction, installing a completion assembly comprised of injection ports and zonal isolation packers, and fracturing the well in multiple stages.

thereby staying independent and separated from one an

GRMD initiated several environmental-friendly optimization strategies to enhance the MSF technology that was tested successfully, thereby increasing well potential and sustain

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cal or swellable packers in the open hole system while by cement for the cased hole. The choice of conducting a fractur-ing operation open hole or cased hole system depends largely on res-ervoir properties, hole geometry, and production expectation from the well. A reservoir management engineer makes that decision based on experience and extensive data analyses and modeling.

Simulation modeling is routinely performed to compute the number of optimal transverse fractures needed to achieve the desired well production rate and the dimensions and properties of these induced fractures. Rigorous modeling with the best available data has enabled the engineers to design and select the optimal completion and stimulation practices, optimize well placement and spacing, and attain higher well productivity.

In essence, MSF technology and its application has made a great impact on overall gas production, changed low rate gas wells to commercially valuable ones, and made gas field development economically viable.

GAS PROGRAM FUTURESaudi Aramco has made the decision to invest in both con-ventional and nonconventional methods to increase the Kingdom’s energy capacity. The gas program will require significant capital expenditures, especially for offshore,

deepwater and remote areas that will require a talented and experienced workforce to ensure projects are economical and are completed within scope and with on time delivery.

The application of innovative ideas is an essential en-abler to meet the Kingdom’s future energy needs, and new concepts, ideas, and plans are being assessed and deployed across the whole spectrum of upstream operations. Proven technologies, along with new ones, are routinely being trial tested and implemented to enhance production rates and maximize reserve recovery. All the concerned petroleum engineering and geoscience disciplines are working as an integrated team to ensure that the entire process chain from exploration, delineation, development planning, facil-ity construction, installation, commissioning, startup and production is done efficiently and cost effectively.

Implementing novel technology, new initiatives, focused vision, and concerted efforts have substantially accelerated the Kingdom’s gas development program. With the long history and the successes achieved throughout the devel-opment and expansion of the program, Saudi Aramco is confident about its ability to support the Kingdom’s energy sectors and strengthen its economic growth for many more years to come.

ABOVE: Multistage frac-turing in a horizontal

well. RIGHT: Swell pack-er converging with bore-hole shape and providing stage isolation after a few days of exposure with completion fluids.

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