THE PETERHEAD CARBON CAPTURE AND STORAGE PROJECT › perch › resources › 1615... · Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise

Copyright of COMPANY NAME

THE PETERHEADCARBON CAPTUREAND STORAGE PROJECT

UP HERE TOO MUCHCO2 IS A PROBLEM

DEEP DOWN UNDERTHE NORTH SEATHERE IS A SOLUTION

Copyright of SHELL UK

PETERHEAD CCSCO2 INJECTION INTO A DEPLETED RESERVOIR

Luis Acevedo, Owain TuckerShell UK

2


CAUTIONARY STATEMENT

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2014 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, May 21, 2015. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation.

We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330

3March 16, 2015


AGENDA

Project Introduction

CO2 Properties

Well Concept

4

Copyright Reserved. 5

PETERHEAD CCS - SUMMARY

CO2 capture volume: 10 to 15 million tonnes over a period of 10 to 15 years

High Purity CO2 - 50 ppmv H2O, 1 ppm O2

CO2 transported via combination of existing and new pipelines to Goldeneye field for storage

Operated in dense phase

Arrival at platform at seabed conditions: ~120bar, 4°C

Copyright of Shell U.K. Ltd. 6

EXISTING GOLDENEYE PLATFORM AND WELLS

Unmanned Installation

5 wells drilled 2003/04, COP 2011

Res. temp. 83°C

Res. P - Hydrostatic

Minimum 0.25psi/ft, Current P 0.32psi/ft

7” existing upper completion


CO2 PHASE BEHAVIOUR

Pre

ssure

(Psi)

725

1450

2175

2900


INJECTION INTO A DEPLETED RESERVOIR

Reservoir

Depleted hydrocarbon

Aquifer presence

8

0

10

20

30

40

50

60

70

2000 2500 3000 3500 4000

CIT

HP,

ba

r

Preservoir, psi

CITHP vs Preservoir(Geothermal Gradient)


INJECTION - FREE CO2 EXPANSION

9

Current Completion Steady state flow at 2500psi

-2605.00

-2175.00

-1745.00

-1315.00

-885.00

-455.00

-25.00

-30.00 -20.00 -10.00 0.00 10.00 20.00

Temperature (Deg C)

TV

D (

m)

2500psi_57MMscfd 2750psi_57MMscfd 3000Psi_57MMscfd

3500psi_57MMscfd 3800psi_57MMscfd

• This low temperatures will create issues in existing wells (low temperature, wellhead)

P reservoir


EXISTING COMPLETIONS NEEDED TO BE WORKED OVER

The existing completion (7”) under steady state injection needed to be replaced because:

Expansion of CO2 in the 7” tubing could cause low temperatures (below some well elements threshold)

Polished Bore Receptacle (PBR) was unsuited to new service

Alternatives like warming up CO2 precluded owing to remote normally unmanned platform

Solution – work over the wells to manage the CO2 phase behaviour

10


THE SOLUTION – KEEP CO2 IN DENSE PHASE

11

0

20

40

60

80

100

120

-40 -20 0 20 40

Pre

ssure

, bar

Temperature, °C

Expected Wellhead expansion

CO2 Saturation Line

Isenthalpic - JT

Pipeline Conditions

Critical Point31 °C, 73.8bar

Liquid

Gas

Keep CO2 in liquid phase Minimum Rate


VLP - TUBING SIZE SENSITIVITY

12

2000

2500

3000

3500

4000

4500

5000

5500

0 10 20 30 40 50 60 70 80Inje

ctio

n B

ott

om

Ho

le P

ress

ure

, psi

Injection Rate, MMscfd

Tubing Size Sensitivity(Based on GYA01 well)

Inflow - P reservoir 2650psi Inflow - P reservoir 3450psi

5.5" tubing 50bar 5.5" tubing 115bar



2 7/8" tubing 50bar 2 7/8" tubing 115bar

CCP Rate

2 7/8" tubing 3 1/2" tubing

4 1/

2" t

ub

ing

5 1/

2" t

ub

ing


VLP – P/T TRAVERSE IN THE WELL

130

50

100

150

200

250

300

-30 -20 -10 0 10 20 30 40 50 60 70 80 90 100

Pre

ss

ure

, b

ar

Temperature, °C

CO2 Density and Injection Conditions

100 Kg/m3

200 Kg/m3

300 Kg/m3

400 Kg/m3

500 Kg/m3

600 Kg/m3

700 Kg/m3

800 Kg/m3

900 Kg/m3

1000 Kg/m3

Saturation

Wellhead conditionsBottomhole

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

0 50 100 150 200 250 300

True

Ver

tica

l Dep

th,

ftPressure, bar

Pressure Traverse

41 MMScfd 50bar FTHP 41 MMScfd 80bar FTHP 41 MMScfd 115bar FTHP


0

1000

2000

3000

4000

5000

6000

7000

8000

9000

0 10 20 30 40

True

Ver

tica

l Dep

th,

ft

Temperature, °C

Temperature Traverse




WELL OPERATIONS – OPEN / CLOSE THE WELLS

14

Steady State CO2 Injection (All Dense)

WHP = Inj. Pressure

Well Just Closed-In (2 Phases)

WHP < CITHP

CO2 Flashing (No friction and Low Pres)

Well Closed-In for a long time (2 Phases)

WHP = CITHP

Dense CO2

Gas CO2

Wellhead Choke Closed

Wellhead Choke Open

Steady State Transient State

Well Close in

Well Start Up

Injection Fluid TempAvg. tubing temp

Avg Prod Casing temp

WH PressureGas Mass Flow

Well Design Case (2h CI, 2h SU) –

1 DegC (downstream of choke) (45bar THP) Injection fluid temp

2500 psi


CONCLUSIONS

Existing wells can be used for CCS

Depleted reservoir poses some extra challenges from the CO2 phase behaviour perspective

Flow assurance pipeline-wells important

Well concept of using small tubing

Can design system to eliminate steady state expansion

Trade off: restrictions in terms of minimum rate

Management of transients

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THE PETERHEAD CARBON CAPTURE AND STORAGE PROJECT › perch › resources › 1615... · Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise