EOR TECHNOLOGIES AND APPLICATIONS IN MALAYSIA - CCOP
EOR TECHNOLOGIES AND APPLICATIONS IN MALAYSIA - CCOP
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