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EOR TECHNOLOGIES AND APPLICATIONS IN MALAYSIA - CCOP

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<strong>EOR</strong> <strong>TECHNOLOGIES</strong> <strong>AND</strong><br />

<strong>APPLICATIONS</strong> <strong>IN</strong> <strong>MALAYSIA</strong><br />

The Petroleum Policy and Management (PPM) Project<br />

4 th Workshop of the Indonesia – Kutai Basin Case Study<br />

Jakarta, Indonesia<br />

13 – 17 June 2006<br />

Dr. Nasir Haji Darman<br />

Norhayati Bt Hashim<br />

1<br />

Presentation Outline<br />

• Introduction<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions


Custodian of Malaysian Petroleum Resources<br />

Petroleum Management Unit<br />

(PMU)<br />

A distinctive resource owner and<br />

manager, maximizing value of<br />

Malaysia’s hydrocarbon resources<br />

Attract Attract exploration<br />

exploration<br />

investments<br />

investments<br />

Optimize Optimize Malaysian Malaysian<br />

E&P E&P Assets Assets<br />

Facilitates Facilitates<br />

development development & prod. prod.<br />

Monitor Monitor all all E&P E&P<br />

companies companies<br />

To fulfill our role and responsibilities, we must undertake<br />

and implement <strong>EOR</strong> initiatives<br />

PMU Key Business Focus Areas<br />

PMU objective to maximize the domestic long term value<br />

of reserves is done through 4 main levers<br />

Reserves addition<br />

100% replenishment ratio for crude<br />

and 70% for gas through exploration<br />

Reserves recovery<br />

Additional 33% replenishment<br />

ratio through IOR/<strong>EOR</strong><br />

Reserves production<br />

Sustain 3% annual increase in<br />

production to meet demand<br />

Operational excellence<br />

Production enhancement and<br />

reliability improvement


<strong>EOR</strong> in Malaysia: Current Status<br />

We started off with conducting a screening in 2000<br />

& identified 1 Bstb (unrisked) <strong>EOR</strong> potential<br />

Our target is to add 520 MMstb of reserves from <strong>EOR</strong> by 2010<br />

Our progress so far…<br />

• Gas flood – 2 fields at full field WAG implementation, 1 on pilot<br />

• Chemical <strong>EOR</strong> – pilot for offshore AS flooding<br />

• Total of 11 projects at various stages (from lab study to full field)<br />

Some of our challenges…<br />

• PSC commitment – <strong>EOR</strong> project payback often after PSC expiry<br />

• Mindset – people view <strong>EOR</strong> as expensive and difficult<br />

• Gas vs. Oil – <strong>EOR</strong> will defer gas development (gas cap)<br />

<strong>EOR</strong> in Malaysia: What’s Next?<br />

Integrated CO 2 -<strong>EOR</strong>…<br />

• Why do it – Over 18 Tscf HC gas locked due to high CO 2<br />

– <strong>EOR</strong> competing for gas with sales gas/LNG<br />

–CO 2 perform better than natural gas<br />

• CO 2 supply – close to 5 Tscf in Peninsular Malaysia<br />

– over 24 Tscf in Sabah/Sarawak<br />

• <strong>EOR</strong> target – Project A: 9 fields (one area), 150 km from CO 2 source<br />

– Project B: 2 fields (one area), 140 km from CO 2 source<br />

• <strong>EOR</strong> process – immiscible and miscible<br />

• Status – Immiscible pilot started in June-06<br />

– Miscible pilot decision in final stages<br />

Our next step…<br />

• Phase 2 – Revisit <strong>EOR</strong> screening to identify new opportunities<br />

• Partnership – Strategic alliances with experience parties to make<br />

offshore <strong>EOR</strong> in Malaysia a reality


<strong>EOR</strong> in Malaysia: Our Roles to Make it Happen<br />

As a custodian of Malaysian Petroleum Resources, we have<br />

to manage and maximize our hydrocarbon assets<br />

We have to ensure 520 MMstb of reserves from <strong>EOR</strong> by 2010 a REALITY<br />

Re-negotiating our PSC in return for <strong>EOR</strong> implementation<br />

PSC renewal with longer period<br />

Better terms<br />

Tackling Triple Plus<br />

Leadership – Formal/Informal coaching, job attachments<br />

Mindset – support from the top, show positive results<br />

Institutional Capability – succession plan, <strong>EOR</strong> fraternity<br />

Revised procedure and guidelines<br />

<strong>EOR</strong> potential is assessed for every green field development<br />

IOR and <strong>EOR</strong> is integrated and not in silos<br />

Technology Improvement and R&D<br />

Supported by UTP, local universities<br />

Research Technology Division<br />

Overview of Malaysian Oil and Gas Industry<br />

• Oil was discovered in Malaysia in Miri, Sarawak in 1910.<br />

• Initially producing some 83 barrels per day, the petroleum industry in Malaysia has now<br />

grown into a multi-billion dollar business with oil production over 600,000 barrels per day<br />

while gas is being produced at 5 billion cubic-feet per day.<br />

• To date a total of 2,664,023 million line km seismic had been acquired and 1,100<br />

exploration wells (515 Appraisal and 585 Wildcat wells) had been drilled in Malaysia<br />

resulting in the discovery of a total of 134 oil fields and 178 gas fields.


Overview of Malaysian Oil and Gas Production<br />

4.500<br />

Malaysian Historical Crude Oil Trend<br />

0.300<br />

100.000<br />

Malaysian Historical Natural Gas Trend<br />

2.500<br />

Reserves, Bstb<br />

4.000<br />

3.500<br />

3.000<br />

2.500<br />

2.000<br />

1.500<br />

1.000<br />

0.500<br />

0.000<br />

0.250<br />

0.200<br />

0.150<br />

0.100<br />

0.050<br />

0.000<br />

Production, Bstb<br />

Reserves, Tscf<br />

90.000<br />

80.000<br />

70.000<br />

60.000<br />

50.000<br />

40.000<br />

30.000<br />

20.000<br />

10.000<br />

0.000<br />

2.000<br />

Production, Tscf<br />

1.500<br />

1.000<br />

0.500<br />

0.000<br />

1970<br />

1972<br />

1974<br />

1976<br />

1978<br />

1980<br />

1982<br />

1984<br />

1986<br />

1988<br />

1990<br />

1992<br />

1994<br />

1996<br />

1998<br />

2000<br />

2002<br />

2004<br />

1970<br />

1972<br />

1974<br />

1976<br />

1978<br />

1980<br />

1982<br />

1984<br />

1986<br />

1988<br />

1990<br />

1992<br />

1994<br />

1996<br />

1998<br />

2000<br />

2002<br />

2004<br />

Reserves<br />

Production<br />

Reserves<br />

Production<br />

• Malaysian oil reserves was in declining<br />

phase (from 1994 – 2002)<br />

• Through a concerted effort, our reserves<br />

return to an upward trend from 2003<br />

• Our target is to have a minimum of 1.33<br />

replacement ratio<br />

• At current rate of production, our<br />

reserves life is about 19 years<br />

• Current reserves is in plateau stage<br />

• Gas supply is critical to PGU and<br />

MLNG<br />

• Our target is to have a minimum of 0.7<br />

replacement ratio<br />

• At current production rate, our<br />

reserves life is 33 years<br />

<strong>EOR</strong> Potential<br />

• There is a substantial amount of oil reserves that can be achieved through<br />

IOR/<strong>EOR</strong> processes in the Malaysian oil fields.<br />

• Acknowledging the above, PETRONAS has initiated several initiatives to<br />

encourage the operators in Malaysia to look into <strong>EOR</strong> opportunities in their<br />

respective operating areas.<br />

Total STOIIP for Malaysian<br />

producing fields = 17 B stb<br />

Remaining oil<br />

(67%)<br />

EUR (33%)<br />

Total STOIIP<br />

17.0 B stb<br />

EUR<br />

5.62 B stb<br />

Remaining oil<br />

11.38 B stb<br />

Averaged RF 33%<br />

Source: ARPR 2005


To identify <strong>EOR</strong> potential, PETRONAS has conducted<br />

<strong>EOR</strong> screening study in year 2000<br />

• Based on the screening study, in Malaysian<br />

context, three <strong>EOR</strong> processes may be<br />

considered:<br />

Gas injection: miscible or immiscible in<br />

WAG or straight mode<br />

Chemical methods (surfactant, foam,<br />

polymer and gel),<br />

Microbial methods.<br />

CHEMICAL RECOVERY<br />

Recovery methods in this category may include surfactant, polymer and alkaline flooding. After a<br />

reservoir is conditioned by water preflush, specific chemicals are injected to reduce interfacial tension<br />

(help release oil) and /or improve mobility control (reduce channeling). This action is followed by<br />

injecting a driving fluid (water) to move the chemical and resulting oil bank to production wells.<br />

Mobility ratio is improved and flow through more permeable<br />

channels is reduced, resulting in increased volumetric sweep<br />

Single 5-Spot Pattern Shown)<br />

Injection<br />

Fluids<br />

Production<br />

Injection<br />

Well<br />

Pump<br />

Oil<br />

Injection<br />

Well<br />

Driving<br />

Fluid<br />

(Water)<br />

Fresh<br />

Water<br />

Buffer<br />

to<br />

Protect<br />

Polymer<br />

Solution<br />

For<br />

Mobility<br />

Control<br />

Additional<br />

Oil<br />

Recovery<br />

(Oil Bank)<br />

Preflush<br />

to<br />

Condition<br />

Reservoir<br />

MISCIBLE GAS FLOOD<strong>IN</strong>G GAS FLOOD<strong>IN</strong>G<br />

This method is a miscible displacement process applicable to many reservoirs. A gas slug<br />

followed by This alternate method water is a miscible and gas displacement injections (WAG) process is usually applicable the most to y man reservoirs. feasible method.<br />

A gas slug followed by alternate water and gas injections (WAG)<br />

Viscosity<br />

Viscosity<br />

of oil reduced<br />

of oil reduced<br />

providing<br />

providing<br />

more<br />

more<br />

efficient<br />

efficient<br />

miscible<br />

miscible<br />

displacement<br />

acement displ<br />

Produced Fluids (Oil, Gas and Water)<br />

Production well<br />

Separation and Storage Facilities<br />

Carbon Dioxide<br />

Water<br />

Injection well<br />

Injection<br />

Pump<br />

MICROBIAL FLOOD<strong>IN</strong>G<br />

Recovery by this method utilizes the effect of microbial solutions on a reservoir. The reservoir is usually<br />

conditioned by a water preflush, then a solution of microorganisms and nutrients is injected. As this<br />

solution is pushed through the reservoir by drive water, it forms gases and surfactants that help to<br />

mobilise the oil. The resulting oil and product solution is then pumped out through production well.<br />

Single 5-Spot Pattern Shown)<br />

Microorganisms<br />

and Nutrients<br />

Production<br />

Injection<br />

Well<br />

Pump<br />

Produced Oil and<br />

Injection<br />

Products<br />

Well<br />

Drive<br />

water<br />

Gas<br />

Water<br />

Mis.<br />

Oil<br />

Additional<br />

Gas<br />

zone<br />

Bank<br />

Oil<br />

Recovery<br />

Driving<br />

Fluid<br />

(Water)<br />

Nutrients<br />

Microorganisms<br />

Microbial<br />

Products<br />

for<br />

Releasing<br />

Oil<br />

Oil and<br />

Products<br />

Preflush<br />

to<br />

Condition<br />

Reservoir<br />

Systematic approach has been developed to identify<br />

<strong>EOR</strong> potential in Malaysia<br />

• The study screened 31 reservoirs from 16 fields in the Peninsular Malaysia and 39<br />

reservoirs from 19 fields in East Malaysia.<br />

• Considering some practical limitation (such as gas source and reservoir heterogeneity), 37<br />

reservoirs were identified to be technically feasible for IOR/<strong>EOR</strong> processes.<br />

• Numerical simulation models (sector) were developed for the group which has the highest<br />

remaining oil-in-place and the highest recovery for the selected <strong>EOR</strong> process identified in<br />

the first-level screening.<br />

GO/NO<br />

GO<br />

Screening<br />

Prediction<br />

Runs<br />

Reality<br />

Check<br />

Screening<br />

PRIze<br />

Prediction<br />

Runs<br />

Sector Model<br />

Prediction<br />

Runs<br />

To identify suitable<br />

IOR processes for<br />

major producing oil<br />

fields in Malaysia<br />

Prediction run with Three (3) criteria set<br />

sensitivity analyses by IOR Team<br />

for 6 reservoirs<br />

Prediction run to<br />

estimate<br />

incremental oil<br />

recovery through<br />

IOR process<br />

Prediction run by<br />

sector model on the<br />

top six (6) reservoir


The amount of potential incremental recovery from<br />

these reservoirs is almost One (1) Billion barrels<br />

• Sixty percent (60%) of the total <strong>EOR</strong> potential in Malaysia reside in six reservoirs.<br />

Tapis Lower J<br />

200<br />

Total potential = 955 MMstb<br />

Number of reservoirs = 37<br />

Average size = 26MMstb<br />

Group 1 :<br />

570 MMSTB (60.4 %)<br />

Guntong Upper I<br />

150<br />

MMstb<br />

100<br />

50<br />

St Joseph B/G<br />

Tiong J – 20/21<br />

Guntong Lower I<br />

Dulang E-12/3<br />

(currently on pilot stage)<br />

Legend<br />

CO2 miscible<br />

Water Flood<br />

HC miscible<br />

Others*<br />

Other potential reservoirs:<br />

374 MMSTB (39.6 %)<br />

Dulang E-14<br />

(currently on pilot stage)<br />

0<br />

Producing Reservoirs<br />

The top 6 reservoirs have been identified as Group 1<br />

candidates (high remaining and incremental oil)<br />

* Includes Horizontal Wells, alkaline surfactant polymer flooding, surfactant polymer flooding.<br />

Source: PETRONAS 2000 <strong>EOR</strong> screening for Malaysia’s oil producing fields; CSS team analysis<br />

Presentation Outline<br />

• Introduction<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions


Phases for <strong>EOR</strong> implementation: 4 stages with 3<br />

decision gates review<br />

Stage<br />

Stage<br />

Activities<br />

Activities<br />

STAGE 1<br />

Screening<br />

study<br />

STAGE 2<br />

Detail study<br />

i.e. lab and<br />

simulation<br />

STAGE 3<br />

Pilot<br />

implementation<br />

STAGE 4<br />

Full field<br />

implementation<br />

Field and<br />

<strong>EOR</strong> process<br />

identification<br />

Preliminary<br />

economic<br />

assessment<br />

Pilot design<br />

and<br />

surveillance<br />

Economic<br />

assessment<br />

New data<br />

acquisition &<br />

processing<br />

Full field<br />

design &<br />

Economic<br />

Assessment<br />

Operation,<br />

maintenance<br />

and<br />

surveillance<br />

Decision<br />

Decision<br />

Gates<br />

Gates<br />

Gate 1 Gate 2<br />

Gate 3<br />

Viability<br />

Approval<br />

Concept<br />

Approval<br />

Project<br />

Sanction<br />

Yes Yes Yes<br />

No No No<br />

Alternative or Abandon<br />

Cost<br />

Cost<br />

Exposure<br />

Exposure<br />

Very low<br />

(Expense)<br />

Low<br />

(Expense)<br />

Med / High<br />

(Expense/capitalise)<br />

High<br />

(Capitalise)<br />

Currently we have 11 actively on-going <strong>EOR</strong> projects in<br />

Malaysia<br />

• At different level of maturity. Will discuss the progress of top 5 candidates<br />

Stage 3/4<br />

(Pilot or full field implementation)<br />

Stage 2<br />

(Detailed study)<br />

Stage 1<br />

(Preliminary / screening level)<br />

FIELD<br />

Dulang<br />

Tabu<br />

Baronia<br />

West Lutong<br />

FIELD<br />

Tapis<br />

Bokor<br />

C<strong>EOR</strong><br />

Tiong/Kepong<br />

FIELD<br />

Baram<br />

Guntong<br />

St. Joseph<br />

PROCESS<br />

Immiscible WAG Injection<br />

Double Displacement<br />

Immiscible WAG Injection<br />

Miscible Gas Injection<br />

PROCESS<br />

Miscible WAG Injection<br />

Aquifer assisted WAG<br />

Chemical Injection<br />

Immiscible Gas Injection<br />

PROCESS<br />

WAG Injection<br />

Miscible WAG Injection<br />

Immiscible WAG Injection


Location of the 5 fields<br />

• Three at offshore Peninsular and two at offshore Sarawak<br />

THAIL<strong>AND</strong><br />

Dulang:<br />

• 130 km offshore Kerteh<br />

• Operator is PCSB<br />

Tabu:<br />

• 229 km offshore Kerteh<br />

• Operator is EMEPMI<br />

Baronia:<br />

• 40 km offshore Lutong<br />

• Operator is PCSB<br />

Kerteh<br />

KUALA LUMPUR<br />

Tapis:<br />

• 197 km offshore Kerteh<br />

• Operator is EMEPMI<br />

SARAWAK<br />

BRUNEI<br />

SABAH<br />

West Lutong:<br />

• 12 km offshore Lutong<br />

• Operator is PCSB<br />

Kerteh<br />

S<strong>IN</strong>GAPORE<br />

KALIMANTAN<br />

Presentation Outline<br />

• Introduction<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions


Dulang field: Background Information<br />

Pilot Area …<br />

SCHEMATIC WELL LOCATION<br />

* B5<br />

* B16<br />

-1200<br />

*A10<br />

* A14<br />

N<br />

* A2<br />

-1250<br />

* A31<br />

S3 Block<br />

* A29<br />

• One of Malaysia’s major producing<br />

oilfield (OIIP =1119 MMstb and EUR<br />

= 328 MMstb)<br />

• East-West trending anticline<br />

structure dissected by numerous<br />

normal faults<br />

• Water depth of 76m and area ~11 km<br />

x 3.5 km<br />

Block S3<br />

• Pilot involves 3 producers and 3<br />

injectors<br />

Water injection started in 1996 due to falling pressures<br />

Re-injection of produced gas identified as cost effective <strong>EOR</strong> option<br />

Injected gas stream is having more than 50% CO2<br />

Pilot WAG at S3 block started in Nov-02 targeting E12/13/14 reservoirs<br />

Dulang Field: Immiscible WAG pilot strategy<br />

Implementation Strategy<br />

SCHEMATIC WELL LOCATION<br />

Main pilot – W AG & attic oil<br />

recovery<br />

* B5<br />

* B16<br />

-1200<br />

*A10<br />

WAG Inj.<br />

* A14<br />

Gas Inj.<br />

* A31<br />

* A2<br />

-1250<br />

* A29<br />

WAG Inj.<br />

Components of pilot in S3 block:<br />

1. WAG in non-water invaded area (E12/13/14)<br />

Injector: A10<br />

Producers: B5 and B16<br />

2. Gas injection (E12/13)<br />

Injector: A14 recomplete in E12/13<br />

Producer: A2<br />

3. WAG in water invaded area (E12/13/14)<br />

Injector: A29<br />

Producer: A2<br />

•WAG injection (4 MMscf /d gas and 3500 b/d water ) for cycles of 3 months each.


Dulang Field: Immiscible WAG pilot performance<br />

• Contributing WAG mechanisms<br />

drainage of ‘attic oil’ up-dip of the existing producers<br />

more efficient sweep of water flooded regions<br />

flooding of tighter reservoir intervals<br />

partial vaporization of the un-swept oil<br />

• Pilot performance<br />

Well A2L<br />

Well B5L<br />

Well B16<br />

10 BOPD 100 – 300 BOPD<br />

WCUT 95% 70%<br />

Pressure maintained<br />

350 BOPD 600 BOPD<br />

GOR 2000scf 1000scf<br />

1350 psia 1467 psia<br />

105 BOPD 300 BOPD<br />

GOR 4500scf 2200scf<br />

WCUT 80% 70%<br />

Dulang Field: Plan for full field implementation in 2007<br />

Based on pilot performance, results were scale-up to represent full field<br />

implementation. P50 of 18.5 MMstb of incremental reserves is expected.<br />

Acquisition of gas compressor and integration with FFR study is<br />

currently on-going<br />

P15 = 23 MMstb<br />

P50 = 18.5 MMstb<br />

P85 = 12 MMstb<br />

Infill Wells (2004 WP&B)<br />

Dulang Decline (2005/6 WP&B)


Presentation Outline<br />

• Introduction<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions<br />

Baronia Field: Background Information<br />

• 3rd largest producing reservoir in<br />

the Baronia field.<br />

• Production started since 1972.<br />

• Initially under-saturated reservoir<br />

• Oil is 42 o API and 0.3 cP<br />

• Due to limited aquifer support, peripheral water injection commenced with 4<br />

horizontal injectors in 1994.<br />

• The structure is simple, internally unfaulted, low relief domal anticline. The<br />

reservoirs are highly continuous as demonstrated by good geological marker<br />

correlation.


Baronia Field: Immiscible gas pilot strategy<br />

<br />

<br />

<br />

Pilot Objective and Plan<br />

Test immiscible gas injection process<br />

Showcase for a large-scale immiscible gas injection in the BDO fields<br />

Location: Well BN-29 targeting RV2.1 reservoir<br />

• Gas will be injected<br />

from BN-29 at 5<br />

mmscf/d<br />

• Continue water<br />

injection from BN-58,<br />

horizontal injector<br />

• Pilot was designed to<br />

provide “least<br />

disturbance test” to the<br />

current oil production<br />

Baronia Field: Plan for pilot project in 2006<br />

Model predicted that immiscible gas injection of 5 MMscf/d with continued water<br />

injection from next well could yield 2.7 MMstb incremental recovery.<br />

Pilot FDP has been approved by PETRONAS and flowlines modification<br />

is currently underway to convert BN-29 well to become gas injector<br />

Baronia RV2 immiscible gas injection pilot will be interpreted together with<br />

West Lutong miscible pilot (described later) to come out with regional <strong>EOR</strong><br />

implementation strategy at Baram Delta<br />

20%<br />

Incremental Recovery as %STOIIP<br />

18%<br />

16%<br />

14%<br />

12%<br />

10%<br />

8%<br />

6%<br />

4%<br />

2%<br />

(W Lutong)<br />

Miscible<br />

Near Miscible<br />

Immiscible<br />

(Baronia)<br />

0%<br />

-2%<br />

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%<br />

Cumulative Injection Since Start of Gas Injection as %HCPV


Presentation Outline<br />

• Introduction<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions<br />

West Lutong Field: Background Information<br />

• One of the oldest producing field in Malaysia<br />

• KL and MN reservoirs contribute > 70% of<br />

the total production<br />

• 1/3 of the MN commingled modeled as a<br />

single unit. STOIIP = 110 MMstb<br />

• Pilot to test miscible gas injection in Baram Delta fields<br />

• MMP at or near current reservoir pressure. Strong aquifer.


West Lutong Field: Miscible gas pilot strategy<br />

Pilot<br />

Injector<br />

(New)<br />

Logging,<br />

Observation Well<br />

(Fiberglass<br />

Casing, Slimhole)<br />

Capture<br />

Producer<br />

PILOT PLAN<br />

1 injector and 1 observation<br />

(100 feet apart)<br />

M<br />

Perforations<br />

Barge mounted CO2<br />

generator supplying 2<br />

MMscf/d high purity CO 2<br />

3 months at 1500 psi<br />

injection pressure<br />

N<br />

1 st injection anticipated early<br />

2007<br />

100 ft<br />

*Note: Well distances are notional<br />

1,100 ft<br />

West Lutong Field: Plan for pilot project in 2007<br />

PILOT OBJECTIVE<br />

Determine remaining oil saturation Vertical sweep efficiency<br />

Areal sweep efficiency<br />

Minimum miscibility pressure<br />

Injectivity and need for WAG injection<br />

“The West Lutong pilot, if implemented, will become the first miscible<br />

pilot in Malaysia. If successful, the miscible process can give<br />

an incremental of up to 165 MMstb for the BDO fields.”<br />

Miscible<br />

Immiscible<br />

165<br />

MMstb<br />

91<br />

MMstb<br />

0 50 100 150 200<br />

Incremental oil (mmstb)<br />

West Lutong<br />

Baram<br />

Baronia<br />

Betty<br />

Bakau<br />

Bokor<br />

Tukau<br />

Siwa<br />

Both pilots at Baronia<br />

and West Lutong are<br />

planned to confirm<br />

256 mmstb<br />

incremental oil at<br />

Baram Delta region<br />

(miscible and<br />

immiscible<br />

processes)


Presentation Outline<br />

• Introduction<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions<br />

Tapis Field: Background Information<br />

TAPIS EAST-FAULT BLOCK STRUCTURE MAP<br />

• Water depth 64 meters<br />

• Discovered in 1969<br />

EFB<br />

Pre-Production<br />

GOC : -1550 m<br />

OWC : -2050 m<br />

• Five platforms<br />

• 90 development wells<br />

F-02<br />

F-06<br />

F-04<br />

CI = 50m<br />

• Current focus is on the east<br />

fault block of lower J<br />

reservoirs<br />

Small gascap is present in the fault block<br />

Lower J unit have contributed some 40% of the total Tapis production.


Tapis Field: Miscible gas study work flow<br />

Tapis <strong>EOR</strong> study workflow<br />

Tapis Field: Miscible gas study<br />

<br />

<br />

<br />

<br />

Lower J Unit was selected due to…<br />

Potential recovery of bypassed and residual oil from mature waterflood<br />

Large remaining oil remaining in place<br />

Existing water & gas injection facilities, existing well patterns<br />

New geologic model and a history matched simulation model available<br />

Miscible<br />

Separator gas<br />

LPG enrichment<br />

Process evaluated<br />

Immiscible<br />

CO 2<br />

“The immiscible floods yielded an incremental recovery between 4-7%<br />

whereas miscible floods gave a higher recovery between 10-13%.”


Presentation Outline<br />

• Introduction<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions<br />

Tabu Field: Background Information<br />

• Oval-shaped east-west<br />

trending anticline<br />

• Area = 26 km 2<br />

• Water depth = 64 meters<br />

• Two major north-south<br />

trending normal faults<br />

• Discovered in 1978<br />

• Developed in 1986<br />

Study focused on West Fault Block (WFB) in the Upper I reservoirs<br />

Double displacement process (DDP) is currently being tested


Tabu Field: The double displacement process<br />

• Potential recovery of by-passed oil downdip of high<br />

GOR wells by converting alternate wells along<br />

periphery of oil rim to water injectors<br />

• The up-dip injector forces the gas cap towards<br />

southwest, countering the aquifer influx and<br />

increasing future oil from nearby wells.<br />

• Cost of flowlines, well restoration and surveillance is<br />

relatively minimal<br />

• Prediction runs showed that DDP for the Tabu WFB<br />

Upper I reservoirs alone will give an estimated<br />

incremental of 1.8 MMstb<br />

• Field works are currently on-going<br />

Presentation Outline<br />

• Introduction<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions


Operating <strong>EOR</strong> in offshore environment is technically<br />

challenging<br />

• Only about 9% of world wide <strong>EOR</strong> application is in offshore environment. On the other<br />

hand, all of our producing fields are offshore.<br />

• Some of the most common problem associated with offshore operation<br />

Large well spacing<br />

Limited space at the surface<br />

World-wide <strong>EOR</strong> experiences<br />

Well spacing for Group 1 reservoirs<br />

World-wide <strong>EOR</strong><br />

applications (%)<br />

100<br />

75<br />

50<br />

25<br />

Well spacing for Group 1 <strong>EOR</strong> candidates (feet)<br />

2500<br />

2000<br />

1500<br />

1000<br />

500<br />

Well spacing for Group 1 reservoirs is suitable for gas<br />

injection <strong>EOR</strong> but not chemical<br />

Average well spacing for<br />

successful gas <strong>EOR</strong> project<br />

Range of successul chemical <strong>EOR</strong> (330 - 466)<br />

0<br />

Offshore<br />

Onshore<br />

Source=OGJ 2002<br />

0<br />

Min Average Max<br />

On average, 68% of the 157 existing platforms installed<br />

in Malaysia are more than 20 years old<br />

• Gas injection pipeline, especially with CO2 handling capability, does not exist. Major<br />

infrastructure development is needed (major investment).<br />

• Some of the fields are not reaching the MMP even if 100% purity CO2 is injected. Major<br />

repressurization project for the reservoir is needed before MMP is reached.<br />

• 68% or 157 platforms had been in-placed more than 20 years.<br />

70<br />

33% < 20 years 68% >20 years<br />

60<br />

No. of platform<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

5 10 15 20 25 30 35<br />

Age of platform


Operating <strong>EOR</strong> in offshore environment is<br />

commercially challenging<br />

• For gas flooding (such as CO 2<br />

injection), the average total cost per barrel is around<br />

US$ 12 – 20, which, compared to average unit technical cost in Malaysia, is relatively<br />

high.<br />

World wide <strong>EOR</strong> cost database<br />

Process<br />

Cost of Incremental Oil (US$/bbl)<br />

Injectant Only<br />

Total Process<br />

Thermal<br />

Steam<br />

Purchased Fuel<br />

3 – 5<br />

4 – 6<br />

5 – 7<br />

7 - 10<br />

Gas<br />

CO2<br />

5 – 10<br />

12 - 20<br />

Chemical<br />

Surfactant (Micellar)<br />

Alkaline<br />

Surfactant/Alkaline/Polymer<br />

Polymer<br />

10 – 20<br />

~ 7<br />

2 – 7<br />

1 – 5<br />

20 – 30<br />

~ 19<br />

10 – 17<br />

~ 2 - 7<br />

Source=SPE 24142<br />

Timing is critical to realise the <strong>EOR</strong> potential<br />

• A clear and transparent work process must be in place to ensure that all of the<br />

requirements for the project assessment are met.<br />

• Long timing leads to unfavorable economics especially to the Contractors. Cut the time<br />

required to reach full field application, without cutting any corners …<br />

<strong>EOR</strong> Candidate<br />

Industry<br />

standard<br />

(e.g. Jay/Little Escambia)<br />

1<br />

Reservoir Management strategies<br />

based on historical information together<br />

with experimental and simulation studies<br />

2 – 3<br />

years<br />

Large field scale<br />

WAG applications<br />

Surveillance<br />

of projects<br />

Field expansions without<br />

a complete interpretation<br />

of pilot projects<br />

(e.g. Prudhoe Bay)<br />

Successful<br />

projects<br />

3<br />

2<br />

Pilot projects<br />

Pilot Monitoring<br />

Pilot Evaluation<br />

3 – 5<br />

years<br />

Source: SPE 50645, 1998<br />

Optimization programs


Current mindset and behaviour prohibits <strong>EOR</strong> potential<br />

• <strong>EOR</strong> is always associated with uneconomic projects and very difficult to implement, even<br />

without study being done.<br />

Most people in the industry have a disaster mentality<br />

about <strong>EOR</strong><br />

<strong>EOR</strong> Failure Disaster<br />

“The most important reservoir is the reservoir<br />

between our ears”<br />

Dr. John Doran, CEO – ROC Oil Company Ltd<br />

Presentation Outline<br />

• Introduction<br />

• <strong>EOR</strong> Motivations and Focus<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions


Way Forward<br />

Solution 1<br />

Solution 1<br />

Solution 2<br />

Solution 2<br />

Solution 3<br />

Solution 3<br />

Solution 4<br />

Solution 4<br />

Solution 5<br />

Solution 5<br />

Management support<br />

- clear directions<br />

- conducive environment for <strong>EOR</strong><br />

- Strategic and forward thinking<br />

Learning from pilot & other projects worldwide<br />

- balancing risk and benefit<br />

- Take some calculated risks<br />

- effective networking and collaboration effort<br />

Starting early<br />

- <strong>EOR</strong> need to be considered even during FDP<br />

submission for green fields<br />

Synergy in high CO2 gas field development<br />

- long term abundant supply<br />

- facilities sharing by integration<br />

Win-win situation with PS Contractor<br />

- attractive PSC terms<br />

- work commitments<br />

- Focus on REWARD and not COST<br />

Presentation Outline<br />

• Introduction<br />

• <strong>EOR</strong> Motivations and Focus<br />

• Current Progress Updates and Status<br />

Dulang : Immiscible WAG<br />

Baronia : Immiscible Gas Injection<br />

West Lutong: Miscible Gas Injection<br />

Tapis: Miscible Gas Injection<br />

Tabu: Double Displacement<br />

• Issues and Challenges<br />

• Way Forward<br />

• Summary and Conclusions


Summary and Conclusions<br />

• There is a substantial amount of oil reserves that can be achieved through <strong>EOR</strong><br />

process in the Malaysian oil fields.<br />

• Acknowledging the above, PETRONAS has initiated several initiatives to<br />

encourage the operators in Malaysia to look into <strong>EOR</strong> opportunities in their<br />

respective operating areas.<br />

• Previously, there were little detailed studies have been conducted to firm up<br />

these potentials and monetised them into a full-scale <strong>EOR</strong> projects.<br />

• Among the main challenges are the operating environment (offshore), maturing<br />

assets which require facilities upgrading, limited detailed assessments, and<br />

lack of capability were identified.<br />

• In order to meet these challenges, all parties will need to have the right mindset<br />

and behaviour towards realising <strong>EOR</strong> as a real project to increase value in the<br />

business.<br />

Thank You For Your Attention

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