Extra Heavy Oil in Canada

Separasjonsteknologi 2007, 26.09.2007

By Martin V. Solberg, Statoil ASA

Presentation Outline
Why Heavy Oil? What is it? Value Chain and Production Methods The SAGD Process Challenges & Opportunities

Oil Sand, EHO, Syncrude, Processing Facility, SAGD Facility with Pads (Image Source: Unknown (Internet) / Encana / Google Earth)

Why Heavy- and Extra Heavy Oil?

Sources of new project liquids for majors (Source: Gordon Energy Solutions)

Statoil EHO Experience:

Sincor, Venezuela

In production, 200 000bbl/d

Statoil North American Oil Sands Corporation (NAOSC), Canada

First production is planned for late 2009/early 2010 from the Leismer demonstration project (10 000 bbl/d). The portfolio is expected to yield more than 200,000 barrels per day at the end of next decade.

What is Heavy Oil?

High density and viscosity
Heavy Oil: Density from 20 to 10 API with
reservoir viscosity in the range of about 50 to 2000 cp.

Extra Heavy Oil: Density less than 10 API with

reservoir viscosity higher than 1000 cp.

Low hydrogen to carbon ratios High boiling point and a high molecular weight (e.g. C60+) Typically high contents of aromatics, asphaltenes, heavy
metals, sulphur, nitrogen, wax, resins, naphtenic acids and naturally occurring emulsifiers and foaming components

Specialized refining processing is often required

Model of Asphaltene in Venezuelan Crude; Viscosity & densities (Image Source: www.uic.edu/Unknown)

Value Chain & Production Methods

Conventional Oils

Upstream

Reservoir Reservoir Reservoir Reservoir Reservoir Reservoir

Crude Pressure Support

Crude

Heavy Oil
EHOSand Condensate Dilbit Naphta

Mining Cold

Market

Refinery

Gasoline Diesel Etc. Asphalt

EHO / HO

Upgrader

Upstream

Naphta Dilbit

Steam EHO/Bitumen & Water emulsion Solvent Diluted EHO/Bitumen

Syncrude

Hot Vapex In-situ combustion

Syncrude Synbit

Air EHO / HO

Mining
Typically reservoir depth <80-100 m Bitumen as solid in reservoir and at ambient
Temp. & Press. Typical Process: Overburden is removed to access the bitumen rich sands Oilsand is mined in an open mine Statoil/NAOSC is NOT Separation (typically Boiling and filtering) to planning separate bitumen from sand Sand, Clay and Residual Bitumen is sent to to do this in Canada tailing ponds for future reclamation Bitumen is diluted or Upgraded Challenges Large areas of land involved CO2 (Boiling of Bitumen+vehicle exhaust) Holding Ponds Fine clay particles

Mining in Northern Alberta, Canada (Image Source: Unknown / Internet)

Steam Assisted Gravity Drainage (SAGD)

Reservoir is heated
with steam to make the oil mobile

Bitumen/water
emulsion is pumped up to the surface at Production Pads

Separation of
bitumen, water, gas and sand at a Central Processing Facility

Water is recycled for

steam generation
SAGD is typically suitable for :

Bitumen is diluted or
upgraded

Reservoir depth >100 m Solid or liquid bitumen at reservoir T&P Reservoir pressure < critical pressure for water/steam
(Image Source: http://www.statoil.com/)

SAGD Facilities
Pads

Wellpairs

CPF

Production Pads Gathering networks Central Processing Facility (CPF) Water Treatment Steam generation Separation
SAGD Facilities; SAGD CPF and PAD, Alberta, Canada (Image Source: Internet) Simplified SAGD process scheme (Image Source: Statoil/MEG Worley Parson)

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Challenges
Vulnerable Environment Wetlands, Wildlife, Access Roads &
Pipelines,

Aboriginals/First Nations Water Make-up water & Disposal without interference of

ground water

Process Wastes Project Execution Challenges Location, Transportation, Skilled Personnel Emissions to Air Global Emissions: CO2 Local Emissions: NOx, SOx, etc.

(Image Source: David Dodge, The Pembina Institute)

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Opportunities
Improved well-control & reservoir knowledge = reduced SOR CO2 capturing & deposit Technology advancements:
Water Treatment, Steam Generation & Zero Liquid Discharge Alternative production methods

Cogeneration Value chain optimisations and synergies Facility and environment monitoring and continious follow-up Reclamation of land & planting of trees Future developement of cities and industry in the area

ICO2N is a CO2 capture and disposal organisation (Photo: David Dodge, The Pembina Institute);

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Questions ?

Oil Sand, EHO, Syncrude, Processing Facility, SAGD Facility with Pads (Image Source: Unknown (Internet) / Encana / Google Earth)