Enhanced Oil Recovery - Group 3 Presentations

7/26/2019 Enhanced Oil Recovery - Group 3 Presentations

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ENHANCEDOILRECOVERY

SPE 93329

EOR INMALAYSIA: MAKINGITREALITY

Prepared by:

Suhailah Adilah Saarim

Muhd Naqiuddin ZahidMohd Azlan Masri

Nur Khasilah Abdorahman

Muhd Fakhrurrazi Azhar


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ABSTRACTA considerable amount of HC resource is estimated to remain in the ground

even after primary and secondary discoveries in the fields.

In 2003, from 47 producing fields in Malaysia:

- Estimated STOIIP = 20.1 bbl/STB

Cumulative production = 4.9 bbl/STBReserves = 2.5 bbl/STB

Remaining = 12.7 bbl/STB 63.2%

In 2000, 72 reservoirs in Malaysia undergoes SCREENING STUDY:- Almost a billion barrels of additional reserves that can be achieved through

EOR.

- Several key EOR technologies that are most applicable in Malaysia; gasinjection, chemical injection, and microbial.

Prime targetfor EOR

projects inMalaysia


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ABSTRACT

Factors that plays an important role in planning EORprojects in Malaysia:

FACILITIESCONDITION

SOURCES OFINJECTION GAS

RESERVOIRCHARACTERIZATION

TECHNOLOGY

APPLICABILITY

COMMERCIAL

ASPECTS


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OVERVIEW OFMALAYSIAN OIL AND GAS INDUSTRY

July18821910

1950

1954

1962

1968

1971

1973

1974

Today


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OPPORTUNITY

SET


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As of 1st January 2003, the Malaysian oil reservesfigure stands at 3.5 BSTB and the cumulative oilproduction is 4.9 BSTB, and oil-in-place of 24.9 BSTB

which translate to an average oil recovery factor of34%.

This means that there is still a substantial amount of

remaining petroleum resources in the ground thatcould be recovered through IOR or EOR.

Since 1994, the Malaysian crude oil reserves havebeen on the decline.

Existing fields that are in production are alreadyshowing signs of maturing stage and lead theoperators to find another ways to extending the field

life, beyond the primary and secondary techniques.


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PETRONAS, as the Resource Manager, has taken thelead to promote EOR in Malaysia through work

commitment terms when extending the duration of theexisting production sharing contract.

These commitments include financial obligation fromthe PSC operators to conduct extensive research andconducting EOR pilot tests in some of the fieldcandidates.

In meeting the nations oil production target,

PETRONAS also has set a target of increasing therecovery factor from the existing 34% up to 45%.


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EOR INITIATIVES IN MALAYSIA

1985- The earliest feasibility study for EOR in Malaysia wasrecorded with objective to investigate the technical potential of

miscible enriched gas and surfactant flooding in PeninsularMalaysia1986- A screening study was conducted by Shell.The studysuggested the use of thermal EOR in Miri- but did not work2000- PETRONAS endorsed a comprehensive EOR/IOR

screening study- 33 reservoirs from 16 fields in PeninsularMalaysia and 39 reservoirs from 19 fields in East

Malaysia.The outcome of the screening study identified 52

reservoirs that are technically feasible for EOR/IOR

processesConsidering practical limitations- Reduced to 37 reservoirsClassified into four quadrant- Based on remaining oil in placeand expected incremental recovery from EOR processes


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To validate the findings- numerical simulation models were

developed for the group which has highest remaining oil

and highest recovery for selected EOR identified in first-

level screening.

The main processes studied in screening exercise is

chemical,gas flooding and microbial enhanced oil recovery

The miscible hydrocarbon and carbon dioxide WAG

flooding- most favorable processes.


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CHALLENGES

AHEAD

-the approach towards EOR in Malaysia has taken a

conservative route

-producing fields in Malaysia are located offshore

-Offshore environment poses a number

of challenges both technical and commercial


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-One of the primary concerns is the well spacing foreffective EOR processes

-Average well spacing for the Malaysian fields rangesfrom around 1000 ft3000 ft

-thermal or chemical require much closer well spacing

The required range of the well spacing for an effective

chemical process is around 330 ft470 ft

thermal will be much less than that

The most likely viable EOR process is the gasflooding mechanism.


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larger spaced wells add another problem to theprocess, and that is the uncertainty of the reservoircharacteristics between the wells that can greatlyimpact the effectiveness of the proposed gas

flooding

Prediction of the recovery will be difficult without adetailed understanding of the reservoiruncertainties.


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Another complexity of operating EOR in offshoreenvironment is the nature of the wells, which are mostlydeviated or highly deviated, and without a proper floodingpattern.

For conversion of the wells to a pattern injector, somewells may have to be workover or sidetracked in order tooptimize the injection capability.

It will directly increase the cost for EOR implementation

and thus reduce the economic feasibility of EOR projectin Malaysia.


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Old fields in Malaysia added a new problem to implementEOR I these reservoirs.


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Ageing platforms/facilities

Large investments may be needed to maintain theexisting platforms

refurbishments may be required for added modules suchas water pumps and/or gas compressors for any EORprojects to be implemented

window of opportunity for EOR implementation is limited

If the EOR projects are to be carried out, they need to beplanned, studied and implemented in the near futurerather than much later in the field life, where higher costof maintenance and development is envisaged.


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the main challenge for offshore EOR in Malaysia can besummarized as the possible high cost of theimplementation and not about the technology itself


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For gas flooding (such as CO2 injection), the averagetotal cost per barrel is around US$1220, which,compared to average unit technical cost in Malaysia, ison the high side.

The actual cost of EOR in Malaysia is yet to bedetermined as there is no full-scale implementation ofany EOR projects to date


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CHALLENGEINAPPLYINGEOR INMALAYSIA

Operating environment.

- offshore field

- High reservoir temperature

- Large well spacing

Ageing surface facility which may required facilitiesupgrading.


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Limited detail assessment, planning and study inthe past.

The lack of technical capability in order to realizethe plan for projects effectively.


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WAYFORWARD

Focus in monetizing the possible EOR potentialhaving formal structure

Eg: EOR department with dedicated staff

Proposed a Key Performance Indicators reviewed from time to time to monitor the processof projects.


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All EOR project in Malaysia should be planned earlytoensured smoothness of progress.

Lesson learnt from one particular project will becaptured- to be shared with other staff in different projectprevent multiple mistake.

Clear and transparent work process must be in place to

ensure that all requirement for project assessment aremet.

Right mindset and behavior should be cultivated towarda sustainable EOR growth.


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CONCLUSION

It is recognized that there is amount of oil reservethat we can get through EOR process in Malaysiaoil field.


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SPE 95931

EOR INMALAYSIA: MAKINGITREALITY(PART

2)


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ABSTRACT

PETRONAS had realized the importance to furtherincrease the recovery factor and so far has beenpersuing EOR implementation in its fieldaggressively.

Full-field WAG application in Dulang field is alreadyat its final stage of implementation.


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EOR project have also have been planned foranother 10 fields

- Tabu

-

Tapis- Guntung

- Kepung

- Angsi


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EASTMALAYSIA/ BORNEO

- Baronia

- West lutong

- St Joseph

- Bokor- Baram


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Dulang Tabu

BaroniaWest

Lutong

Tapis


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INTRODUCTION


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Oil reserves were declining from 1994 to2002 (Figure 1).

But increasing with the discoveries ofdeepwater field. In 2004, Malaysias average oil production

was about 620 thousands barrel per day.

Expected reserves life is only about 19years.PETRONASauthorize the entire oil and

gas in Malaysia (including upstream

exploration and production to downstream ofoil refinery) .


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EOR INITIATIVES

National Oil Company endorsed a comprehensive IOR/EOR screeningstudy in year 2000.

Main processes that were considered having the most practical aspects inthe Malaysian oil fields:

- Chemical EOR

- Gas flooding

- Microbial EOR

Dulang field (Immiscible Water-Alternating-Gas, WAG)

- Dulang field Pilot Scheme in the S3 Fault Block- Injection performance

- Production performance of A2L

- Production performance of B5L

- Production performance of B16


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SUMMARY FOR DULANG FIELD

PETRONAS believes that sufficient pilot data have beencollected and analyzed to enable fit-for-purposeassessment of Dulang field wide WAG implementation.

Observed pilot results were scaled up statistical method.

P50 (most likely) case showed and incremental of 18.5MMstb.

New compressor were installed.

Minimizing LP gas flaring for WAG re-injection.


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BARONIA FIELD IMMISCIBLE

SIMULTANEOUS GAS AND

WATER INJECTION)


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Baronia RV2 is the third largest producing reservoirin the Baram Delta some 40 km offshore Sarawak.

Field production started since 1972.

The reservoir is of good characteristics, with:- Pi = 3420 psig - k = 70 md

- = 19 % - Swc = 31%- API = 42 - Bo = 1.6 rb/stb- GOR = 1038 scf/stb - = 0.3 cP

Oil production started under natural depletion drive,which saw rapid pressure decline due to weakaquifer support.

In 1994, peripheral water injection commented with

four horizontal injectors (BN-51, 52, 58 and 60).


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PILOT STRATEGY FOR

THE BARONIA RV2

Aim is to test the feasibility of employing immisicble gasinjection process in Baronia RV2 reservoir.

The pilot feasibility was carried out using the 2001reservoir simulation model which then converted toEclipse 300 compositional format.

The model predicted that immiscible gas injection withcontinued simultaneous water injection at 3200 psig with5 MMscf/d injection rate could yield 2.7 MMstb

incremental recovery within 20 years.


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The source gas shall be from the discharge ofBaronia gas re-injection compressor that has a

maximum discharge pressure of 3000 psig.

As the required injection pressure is higher thanwhat the existing re-injection compressor candeliver, it is likely, that a booster compressor isrequired.

Baronia pilot is expected to be a showcase for alarge-scale immiscible gas injection in the BDO

fields.

SHELL estimated that the immiscible process couldgive up to 74 MMstb from four fields in this region.

WEST LUTONG FIELD


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WEST LUTONG FIELD

Located at Baram Delta Province 12 km north-west offshoreLutong ,Sarawak

It was discovered in June 1966 with WL-1 and started oilproduction in July 1968- 35 wells has been drilled including16 sidetracks and 33 abandoned

KL and MN sands are the major producing reservoirs in WestLutong

The reservoir MN units have contributed some 40% of theproduction although these two zones have been defined andcharacterized as two seperated zones- M and N reservoirsare modeled as single unit in the pilot study.

The pilot was designed to test the feasibility of miscible gas

injection in Baram Delta Fields- due to large EOR potential

The objective of the pilot is to reduce the uncertainties of key


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The objective of the pilot is to reduce the uncertainties of key

reservoir unknown that were identified as follows:

Remaining oil saturation- high recovery in sandstone reservoirs

Vertical sweep efficiency- multiple stacked pay

Areal sweep efficiency- few wells,no pattern,large spacing

Minimum miscibility pressure- aquifer supported or not

Injectivity and need for WAG injection- aquifer,high permeability

streaks,trapping

Th t l i t i l t b ti il t ith


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The current plan is to implement an observation pilot program with one

injector and one or two observation well(s) to be drilled 100 feet away

High purity carbon dioxide gas will be used to supply the injectant gas

at miscibility condition- It is expected to run for 3 months at 1500 psi

injection pressure.

Continuous gas injection is considered due to extremely strong aquifer

Gas chromatography equipment will be required to monitor gas

breakthrough and composition as a function of throughput

Resistivity log must be run monthly to monitor flood front anddesaturation


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TAPIS FIELDMISCIBLE OR NEAR MISCIBLE GAS FLOODING


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LOCATION

Near southeastern end of Malay basin in the SouthChina Sea.

200 km off the east coast of Peninsular Malaysia inabout 64 km of water.

Tapis field discovered in 1969 by the Tapis.


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1 exploration well and 3 appraisal wells before

development drilling commenced in 1977. 4 platforms were installed and 90 development wells

were drilled in 1988.

The 5thplatform (Tapis E) was installed in 1998 to

develop the west and southwest fault block of the field. Tapis field is the one of main target field for EOR as

identified by EOR screening in 2000.


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THEFOCUSINSTUDYISCONCENTRATEDONEASTFAULTBLOCKOFTAPISFIELDSELECTEDBASED

ON:

Potential recovery of bypassed andresidual oil from mature waterflood paterns

in the block.Large remaining oil in place from thereservoir.

Moderately high degree of practicality.Relatively high degree of knowledge.


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One of the key findings in the element models is theincremental recovery from immiscible vs misciblefloods.

Immiscible floods yielded incremental recovery

between 4% - 7%.

Miscible floods gave higher recovery between 10%- 13%.


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It must be noted that the recoveries from these elementmodels may not represent the behavior of the same

process in the full field modeldifferent boundaryconditions, well spacing, pressure communication thatare present in the field.

Hence, currently a full-field modeling of the EOR process

is being undertaken to further understand and estimatethe EOR potential from Tapis.


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TABUFIELD(DOUBLE

DISPLACEMENT)

It is one of the twelve fields drilled and developed by EPMI to date

located in the southeastern part of the Malay Basin, approximately 200

kilometers east of Kerteh

an oval-shaped east-west trending anticline of approximately 26 square

kilometers.

Two major north-south trending normal faults separate the field into

East, Central and West fault blocks.

Water depth at the field is approximately 64 meters.


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discovered in October 1978 and field development wasinitiated in February 1986 with the commencement of adrilling program from the Tabu-A platform

Tabu-A development drilling was confined to the EastFault Block of the Tabu field

Later, the Tabu-B development drilling programcommenced in November 1995 to develop the West and

Central Fault Blocks as well as the underdevelopedareas of the East Fault Block

T b t f lt bl k (WFB) i th U I i i


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Tabu west fault block (WFB) in the Upper I reservoirs isbeing tested for the double displacement process (DDP).

The DDP process is predicted based on the simulation

model generated for the fault block The response is expected to be positive as a result of the

sandwiching of the oil by the two north flank waterinjectors and the other two producers located in the north

At the same time, the up-dip injector forces the gas captowards southwest, thereby countering the aquifer influxand increasing future oil from nearby wells

Prediction runs showed that DDP for the Tabu WFB


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Prediction runs showed that DDP for the Tabu WFBUpper I reservoirs alone will give an estimatedincremental of 1.8MMstb

The cost of flowlines, well restoration and surveillance isconsidered to be relatively minimal hence DDP for theTabu WFB Upper I had been designated as an early fieldtrial for the said process

A heightened surveillance program is currently beingundertaken to better understand the DDP performancebefore it is implemented in the full field mode


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CHALLENGESAHEAD

Malaysia has seen a more focus and persistenteffort towards EOR

concerted collaboration within the EOR fraternityset up by PETRONAS

The fraternity is lead by EOR unit in PetroleumManagement Unit (PMU) and receives operationalsupport from the EOR unit in PETRONAS Carigaliwhilst PETRONAS Research and Scientific

Services (PRSS) served as one of the key technicalresource centre.

Th h f d t ll EOR


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The group has so far managed to ensure all EORprojects identified to be evaluated.

The challenge that the fraternity is facing now is how to

bridge the people that are operating the fields to buy inthe idea of implementing EOR that requires them tochange their operation philosophy.

They also faced some difficulties to getting the right

staffing in the current tight manpower situation. Even with the right people and skills, fields in Malaysia

are located in an offshore environment is already achallenge.

EOR i till bj t i M l i


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EOR is still a new subject in Malaysia

Thus, most of Malaysia producing fields were developedwithout taking EOR into consideration

more than two-third of existing platform age are morethan 20 years

For EOR to come into the picture and becomes reality,added investment may be needed in form of existing

platforms maintenance refurbishment to add water pumps and/or gas

compressor modules,

a new platform that substantially erodes the EOR

profitability

t i i EOR ti i ff h i t i


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most promising EOR option in an offshore environment isgas injection

Source gas in some cases, may not be easy to come by

especially if it involves large quantity. In Peninsular Malaysia, gas supply is critical to the

running of gas pipelines that supply most of thepowerbproducers demand.

In the East Malaysia side, the MLNG plants also havehigh requirement for gas, thanks to the booming of worldLNG demand

In this situation EOR projects that usually shrouded with


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In this situation, EOR projects that usually shrouded withuncertainties and lengthy payback is forced to competefor the source gas in comparison to the sales gas

demand that is usually immediate. Malaysia might be very fortunate because CO2 is

naturally in abundance,

work to synchronize these areas with EOR is currently

underway. technology advancement, lab studies and pilot learnings

can eliminate some of the technical hurdles,

But the economics usually hold back the implementation

of EOR

P d ti h i t t (PSC) h li it d


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Production sharing contractors (PSC) have limitedproduction period granted by the host government

but the incremental from EOR projects can only be

realized well beyond the PSC expiry In cases, where the contract is nearing its expiry, it is very

difficult to get the PSC to even conduct an EOR feasibilitystudy.

Th h t f d h t t ti t f


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The shortage of manpower and short retention rate ofstaff in our industry is also a great challenge with respectto EOR

EOR projects not only need people with deep technicalunderstanding in the field of petroleum engineering

but also have to compete with other initiatives in theCompany for suitable manpower supply and funding

WAY FORWARD


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The value creation of EOR in Malaysia- a forward thinking and strategic

frameworks need to be considered

Malaysia is well positioned to implement succesful EOR projects-PETRONAS

Unfortunately,offshore EOR has its technical challenges- need to take some

calculated risk

Pilot initiatives are one way to reduce the risk

To ensure that EOR is being considered even before first production- PETRONAS

revising its FDP

For brown fields,EOR projects will be linked to full-field review (FFR) initiatives for

cost optimization

PETRONAS strives to excel in oil and gas industry


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One promising solution that is currently under evaluation is by using carbon dioxide as

source gas in EOR- would not only secure a longterm supply of injectant gas but

also bring aditional gas reserves on stream

EOR projects in Malaysia have become reality partly- PSC

Although PETRONAS will continue to leverage on new signings to fund EOR

feasibility studies- still become reality in Malaysia

PETRONAS also working closely with its education division and Universiti Teknologi

PETRONAS (UTP)supply fresh manpower

Collaboration with another universities- long-term strategy to develop local

expertise

PETRONAS also recruits fresh graduates and leverage on Knowledge Management

(KM)tranfer knowledge to younger staff


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CONCLUSIONS

EOR in Malaysia has becoming a reality to a certainextent.

The first case was in Dulang field where it was gearedtowards a full-field WAG implementation.

Tabu field although on smaller scale also shows that EORin certain cases can be implemented immediately atminimal cost.

Malaysia also have seen at least two EOR pilot projectsin Baronia and West Lutong respectively in 2006.


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THANK YOU

Documents

Enhanced Oil Recovery - Group 3 Presentations