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KAZAKHSTAN UPSTREAM OIL AND GAS technology and R&d ...

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4.1 Drilling <strong>and</strong> well costs<br />

Challenge commentary<br />

Kazakhstan has some of the most complex<br />

reservoirs in the world, containing oil <strong>and</strong> gas<br />

at high pressures <strong>and</strong> temperatures, as well as<br />

high levels of H 2<br />

S <strong>and</strong> CO 2<br />

. Drilling is always<br />

going to be a challenge under these conditions.<br />

On top of this, there are the practical <strong>and</strong><br />

logistical difficulties associated with the limited<br />

internal infrastructure in parts of the country, lack<br />

of a sea route for drilling equipment into the<br />

country <strong>and</strong> the harsh winters.<br />

Under the circumstances, rig safety is a<br />

major challenge in Kazakhstan, undertaking<br />

exploration or development drilling or well<br />

intervention in a manner that reduces the<br />

risk to the people involved as well as local<br />

communities. The challenge is most acute in<br />

fragile formations <strong>and</strong> where there are issues<br />

of well integrity – the Kenkiyak, Korolev,<br />

Kumkol South <strong>and</strong> North Buzachi fields are<br />

examples. Casing pressure management is<br />

also a safety-related issue in many fields,<br />

especially in sedimentary sub-salt reservoirs<br />

such as Karachaganak, Kenkiyak, Zhanazhol<br />

<strong>and</strong> Alibekmola.<br />

Drilling through low pressure zones is a<br />

widespread challenge, given the prevalence<br />

of carbonate reservoirs in Kazakhstan <strong>and</strong><br />

their tendency to contain cavities (vugs or<br />

karsts) or otherwise low mechanical strength<br />

rock structures. Mud loss, well bore stability<br />

<strong>and</strong> pipe sticking are common problems<br />

in, for example, Karachaganak, Kenkiyak,<br />

Kumkol South <strong>and</strong> North Buzachi.<br />

Given the drilling challenges faced in<br />

Kazakhstan, well costs are generally high.<br />

Drilling in shallow water generally entails<br />

the construction of concrete drill pads. But<br />

the main cost issues arise from the need to<br />

bring every element of the drilling process<br />

(rigs, tools <strong>and</strong> equipment, chemicals <strong>and</strong>,<br />

not least, skilled people) into Kazakhstan.<br />

Unsurprisingly, cost over-runs are common:<br />

reducing their likelihood is a big challenge.<br />

VALUE<br />

CHALLENGE (elements)<br />

Rig safety<br />

4.1.7<br />

4.1.1<br />

4.1.2<br />

4.1.3<br />

4.1.4<br />

4.1.5<br />

4.1.6<br />

TECHNOLOGY SOLUTIONS<br />

4.1.1 Casing & liners with improved pressure<br />

containment capabilities<br />

4.1.2 Drilling through abnormal pressures,<br />

high temperatures & H 2<br />

S<br />

ATTRACTIVENESS<br />

4.1.3 Surface pressure control equipment for improved safety<br />

(on l<strong>and</strong> & shallow water)<br />

4.1.4 Drilling safety methods<br />

83<br />

Drilling through low pressures<br />

(losses, stability)<br />

4.1.2 Drilling through abnormal pressures,<br />

high temperatures & H 2<br />

S<br />

4.1.5 Cost effective drilling techniques<br />

4.1.6 Directional drilling & reach<br />

4.1.7 Improved drilling rigs with directional drilling capabilities<br />

Reduce well costs<br />

Kazakhstan Upstream oil & gas <strong>technology</strong> <strong>and</strong> R&D roadmap

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