Intelligent Completions at the Ready

Kevin Beveridge
Clamart, France

The merits of intelligent completions are well documented, but their perceived high

Joseph A. Eck
Rosharon, Texas, USA

operators development plans. A new offering is likely to change that perception;

Gordon Goh
Kuala Lumpur, Malaysia

larger and more-complex, high-tier systems.

Gabriela Scamparini
Ravenna, Italy
Oilfield Review Autumn 2011: 23, no. 3.
Copyright 2011 Schlumberger.
For help in preparation of this article, thanks to Claire Bullen
and David Nuez, Houston; and Farid Hamida, Rosharon, Texas.
IntelliZone Compact, UniConn and WellBuilder are marks of
Schlumberger.
1. For more on intelligent completions: Algeroy J, Morris AJ,
Stracke M, Auzerais F, Bryant I, Raghuraman B,
Rathnasingham R, Davies J, Gai H, Johannessen O,
Malde O, Toekje J and Newberry P: Controlling
Reservoirs from Afar, Oilfield Review 11, no. 3
(Autumn 1999): 1829.
Dyer S, El-Khazindar Y, Reyes A, Huber M, Raw I and
Reed D: Intelligent CompletionsA Hands-Off
Management Style, Oilfield Review 19, no. 4
(Winter 2007/2008): 417.
2. Aggrey GH, Davies DR and Skarsholt LT: A Novel
Approach of Detecting Water Influx Time in Multizone
and Multilateral Completions Using Real-Time Downhole
Pressure Data, paper SPE 105374, presented at the
SPE Middle East Oil and Gas Show and Conference,
Manama, Bahrain, March 1114, 2007.
Aggrey G and Davies D: Real-Time Water Detection and
Flow Rate Tracking in Vertical and Deviated Intelligent
Wells with Pressure Sensors, paper SPE 113889,
presented at the SPE Europec/EAGE Annual Conference
and Exhibition, Rome, June 912, 2008.
3. Sakowski SA, Anderson A and Furui K: Impact of
Intelligent Well Systems on Total Economics of Field
Developments, paper SPE 94672, presented at the SPE
Hydrocarbon Economics and Evaluation Symposium,
Dallas, April 35, 2005.

18

Intelligent well systems were originally conceived in response to the extreme costs associated with certain well intervention operations in
critical or remote areas, particularly in deep and
ultradeep waters. The costs of workovers, recompletions and even some forms of basic maintenance on wells in water depths greater than
about 150m [500ft] are often prohibitively high
because these operations can be performed only
from floating platforms.

Because such vessels are expensive to lease

and to move, and subsea workovers are typically
long term, operators are reluctant to contract a
deepwater rig for a single workover or recompletion that does not promise significant return on
investment. In addition, because these are often
high-rate wells, the cost of lost production during
shut-in may be a critical consideration when an
operator is contemplating the merits of an intervention. Taken together, these factors often cause

85

40
Pressure drop
Water cut in toe zone
Water cut in heel zone

80

30

75

20

70

10

65
500

720

940

1,160

1,380
Time, d

1,600

1,820

2,040

Water cut, %

Maharon B. Jadid
Willem Ruys Sablerolle
PETRONAS
Kuala Lumpur, Malaysia

these smaller, modular systems lower costs while retaining all the advantages of the

Pressure drop, psi

Ronaldo G. Izetti
Petrobras
Rio de Janeiro, Brazil

initial costs for design, installation and maintenance keep them out of many

> Detecting water encroachment using downhole sensors. Because water

influx at a zone causes a reduced production rate at that zone, the rates will
increase in the other zones to ensure the well meets total well constraints,
such as liquid rates or tubinghead pressure set by the operator. This change is
manifested in a corresponding decrease or increase in pressure drop between
zones. In this production scenario, at about Day 700, water breakthrough at the
toe (blue) of a two-zone horizontal well creates a sharp decrease in pressure
drop (red) between that zone and the sensor at the heel of the well. As water
production increases from the heel of the well, around Day 1,160 (green), the
pressure drop decreases more slowly. At about day 1,700, with increasing
water production from the heel, the pressure drop increases. (Adapted from
Aggrey et al, 2008, reference 2.)

Oilfield Review

operators to postpone needed interventions. Such

delays can lower production rates over an extended
period of time, cause permanent damage to reservoir productivity and reduce ultimate recovery, all
of which impact total field economics.
An intelligent completion (IC) can offer an
alternative to interventions. ICs include downhole sensors that allow operators to gather flow
and reservoir data remotely. They are equipped
with remotely actuated downhole flow control
valves (FCVs) with which operators can adjust
flow from individual production zones.1
Remote sensors eliminate the need for the
most common intervention in multizone wells: to
identify the location of production-inhibiting
problems such as water, gas or sand ingress.
Sensors that measure changes in flow rate, temperature and pressure at specific well depths
allow engineers to determine in real time which
zone is experiencing production or pressure
decline, without the expense and risk of an intervention (previous page).

Autumn 2011

Once engineers identify the source of a problem, they can then shut off, increase or decrease
flow from any zone using FCVs placed across
each production interval and reconfigure the
completion.2 This may be especially cost-effective when initial changes to FCV settings must
be further adjusted based on measurements
taken during a flow period following the initial
remedial operation.
When ICs were first introduced, companies
resisted installing them. Engineers questioned,
with some justification, the reliability of the
systems critical components over the life of the
well. Operators were equally wary of the capital
expenditure (capex) of ICs, which has traditionally been substantially higher than that of conventional completions. As a result, economics
and risk analyses often favored standard completions over ICs except in remote areas or for
subsea completions.
Improvements in components and systems
and years of IC use have done much to overcome

industry misgivings about the reliability of ICs.

However, because their design and implementation are complex, ICs remain relatively expensive. Consequently, their use continues to be
restricted mainly to remote environments and in
wells with very high production rates for which
the cost of intervention and delayed production
is extreme.
More recently, their appeal has widened as
engineers have learned to use ICs as effective
reservoir management tools. Multizone completions, waterfloods, gas lift and other systems are
more easily optimized through remote downhole
monitoring and control than through intervention. In many cases, the return on investment in
ICsthrough accelerated cash flow and
increased ultimate recoveryfar exceeds the
savings realized by avoiding interventions. One
major operator has calculated that 5% of the total
economic impact of ICs on its business is due to
savings on interventions, while 60% is due to
reservoir-related revenue increases.3

19

Annulus sensor
reads the Zone 1
reservoir pressure.

Tubing sensor
reads the
Zone 2 FBHP.

FCV 1 closes

Shale

Zone 1

Shale

Tubing sensor
reads the
Zone 1 FBHP.

Zone 2

Shale

Annulus sensor
reads the Zone 2
reservoir pressure.

FCV 2 closes

Shale

Zone 1

Shale

Zone 2

Shale

> Reservoir and flowing bottomhole pressures from remote monitoring and
control. In a multizone IC, each zone is isolated, monitored and controlled. The
flowing bottomhole pressure (FBHP) may be measured as flow from Zone2
only (red arrows) by closing the FCV across Zone 1 (top), while reservoir
buildup pressures in the shut-in Zone1 are measured. By closing the FCV
across Zone2 and opening Zone1 (bottom), reservoir pressure may be
determined in Zone2 and FBHP from Zone1. The principle may be applied to
any number of isolated zones.

Engineers have also discovered that ICs can

be instrumental in reducing the number of wells
required to exploit a formation. Reducing well
count, intervention frequency and interventionassociated delayed production can save operators millions of dollars in field development costs,
particularly in deep water.4 Fewer wells also
result in less subsea equipment and thus substantial reduction in capex. Additionally, water
and gas processing units that service ICs may be
smaller because excess water and gas production
may be shut off or reduced downhole rather than
treated on the surface. Zonal isolation and pressure optimization between zones result in higher
rates of commingled flow to the wellbore. The
consequence is a net increase in production and
total recovery.
With surface-controlled FCVs, it is also possible to periodically measure reservoir and flowing
bottomhole pressure (FBHP) without running

20

production logs. This is accomplished by first

closing one zone, which allows the downhole
pressure sensor at the sandface to begin recording annular, or reservoir, pressure. At the same
time, a sensor across a fully opened second zone
measures the FBHP for that zone.
When the second zone is closed and the first
zone is opened, sensors at the sandface measure
the reservoir pressure of the second zone and
FBHP from the first zone (above). This technique, which can be applied to a number of producing intervals at a time, allows operators to
gather a downhole pressure profile from any zone
at any time without excessive delays in production for buildup and without exposure to risk
from interventions. This technique of isolating
zones also enables engineers to collect formation
pressure buildup survey information and a drawdown profile for productivity index (PI) updates
and changes throughout the life of the well.5

Despite proven reliability and a more broadly

defined niche for ICsand because the original
intent of the developers was to use ICs in relatively high-rate wellsthe economics of middleand low-tier fields are such that operators
continue to use traditional completion strategies
rather than risk the capex of an IC. ICs were also
intended to be robust enough to forestall intervention throughout the life of the wellusually
more than 20 yearssince a single intervention
in deep water or other remote area could easily
foil any anticipated economic advantage of an IC.
This design mandate resulted in ICs that
were necessarily large, complex and costly.
Additionally, over time, as industry providers
sought to increase IC reliability and flexibility,
the technology evolved piecemeal. Operators
seeking best-of-class solutions often had to combine components from numerous suppliers
within a single completion configuration. This
created interface challenges that led to increased
risk of equipment failure and wellsite time and
costs to assemble, test and install completions.
All these factors have conspired to perpetuate the image of wells equipped with remote
monitoring and control as large capital expenditures justified only by high-volume production,
well complexity or locations where intervention
is cost prohibitive or technologically problematic. This article describes redirected efforts
that have given rise to a less complex IC system.
Its design lowers its cost, which allows operators
of average to marginal wells to reap the reservoir management benefits of ICs previously
restricted almost exclusively to high-cost or
high-risk applications.
4. Sakowski et al, reference 3.
5. Chen JHC, Azrul NM, Farris BM, NurHazrina KZ,
Aminuddin MKM, Saiful Anuar MY, Goh GKF, Kaur PKS,
Darren Luke TK and Eddep A: Implementation of Next
Generation Intelligent Downhole Production Control in
Multiple-Dipping Sandstone Reservoirs, Offshore East
Malaysia, paper SPE 145854, presented at the SPE Asia
Pacific Oil and Gas Conference and Exhibition, Jakarta,
September 2022, 2011.
6. Sharma AK, Chorn LG, Han J and Rajagopalan S:
Quantifying Value Creation from Intelligent Completion
Technology Implementation, paper SPE 78277, presented
at the SPE European Petroleum Conference, Aberdeen,
October 2931, 2002.
7. Narahara GM, Spokes JJ, Brennan DD, Maxwell G and
Bast M: Incorporating Uncertainties in Well-Count
Optimization with Experimental Design for the Deepwater
Agbami Field, paper SPE 91012, presented at the SPE
Annual Technical Conference and Exhibition, Houston,
September 2629, 2004.
8. Adeyemo AM, Aigbe C, Chukwumaeze I, Meinert D and
Shryock S: Intelligent Well Completions in Agbami: A
Review of the Value Added and Execution Performance,
paper OTC 20191, presented at the Offshore Technology
Conference, Houston, May 47, 2009.

Oilfield Review

Autumn 2011

125

Cumulative oil, %

The Value of Flexibility

When operators plan wells in deep water or other
isolated locations, it may be clear that avoiding a
single intervention saves enough in operating
expense to justify the capital expense of a traditional IC. On the other hand, a single-zone, landbased well in an area well populated with rigs is
unlikely to ever justify the expense of an IC even
if the operator avoids numerous interventions.
During consideration of scenarios between
those two extremesfor example multizone
land-based completionsthe cost analysis may
not be so apparent. Shutting off production from
one zone and opening another through recompletion or by shifting a sliding sleeve are relatively
low-cost propositions built into the original economics of multizone wells. However, such a strategy calls for the first zone to be depleted before
the next one is opened. Reservoir analysis indicates that remotely adjusting downhole FCVs to
commingle zones based on real-time pressure
and temperature data significantly accelerates
production and increases ultimate recovery compared with traditional on-off multizone completion configurations (above right).
This advantage is not always apparent
because traditional discounted cash flow models used by most operators cannot quantify the
value derived from operational flexibility.6 This
flexibility depends on the availability of numerous options with which to mitigate well problems during the life of a well. Having the ability
to remotely monitor downhole conditions and
adjust flow from various zones in real time
adds to the number of choices available to the
operator, removing the economic burden of rigbased interventions.
Remote monitoring and control is a particularly powerful tool for reducing uncertainty
in reservoir properties. For example, as with
many deepwater developments, the operators of
the Agbami field offshore Nigeria did not have
substantial reservoir data on which to base
well plans.7
Agbami wells are typically completed in multiple zones within the same faulted reservoir.
Pressure equilibrium indicated the zones are in
communication, although uncertainties persisted
in vertical and lateral crossfault connectivity
under dynamic conditions (right). Consequently,
engineers believed that waterflood and gasflood
fronts would advance through the reservoir at
different rates.

100

Reservoirs C, B and A

75
Reservoir A

50
Reservoir B
25
Reservoir C
0

10

20

30
40
Time, months

50

60

70

> Comparing commingled and sequential production. The production benefits

of commingling versus an estimated sequential production strategy are
demonstrated in a Gulf of Mexico operators production curves. Two FCVs
were installed in this well to control upper and lower producing zones. The
operator used on-off controls to shut off production from one zone when
its water cut threatened net production; the result (red) was about a 28%
increase over sequential production estimates (blue).

analysis computer that collects and evaluates

sensor output. Variable chokes were placed
downhole and at the surface to facilitate remote
flow control.8

To manage this uncertainty, the operator

installed ICs that included permanent pressure,
flowmeter and densitometer sensors arrayed
from the sandface to the separator. These are
monitored through an integrated database and

Reservoir Model of Agbami Field

U = upper
M = middle
L = lower

14 MY

U 16 MY

Secondary reservoirs

L 16 MY
U 17 MY
M 17 MY

Main reservoir

L 17 MY

> Uncertainty about reservoir properties. The pay intervals at Agbami field consist of two principal
zones. Uncertainty about permeability, fault seals and injection conformance made decisions about
well count and location problematic. The upper, middle and lower 17 MY sands hold about 80% of the
reserves. Secondary reservoirs include the 13 MY (not shown), 14 MY and 16 MY layers. [Adapted from
Houston Geological Society: HGS International Dinner June 21, 2004; Agbami Discovery, Nigeria,
(May 25, 2004), http://www.hgs.org/en/art/209 (accessed August3, 2011).]

21

The operator identified four categories that

characterized the value added by using ICs:
incremental recovery through optimized zonal
contributions
reservoir management through effective voidage replacement and pressure maintenance
with gas and water injection

Handling sub

Packer

Mounting sub
Electric line

Dual pressure
gauge

Hydraulic line
Filter sub
Multidrop
module

FCV

Handling sub

> Smaller IC package. The modular design of the

IntelliZone Compact system allows engineers to
assemble and test the IC package for each zone
before it is shipped to the wellsite. All electrical
and hydraulic connections are welded into place
by the manufacturer. Rig operators need only to
connect lines at the handling subs and no longer
must thread lines through packers and connect
them to FCVs and pressure sensors on site,
resulting in reduced installation time, cost and
risk. A filter sub enhances system durability by
preventing contaminants from reaching FCVs. In
multizone wells, multidrop modules require fewer
hydraulic lines to handle multiple control valves.

22

optimized infill drilling through better models

based on history-matching of zonal volumes
rather than total reservoir volumes
operating expense savings through reduction or
elimination of workovers, sidetracks and production logging runs to evaluate injection and
production contribution from individual zones.
Using dynamic simulation models, the operator concluded that the deployment of ICs on a
field-wide basis at Agbami would deliver
incremental oil recovery of 84 to 138 million bbl
[13 to 22millionm3].9
The Agbami field contains 20 producing wells,
12 water injection wells and 6 gas injection wells
in about 5,000ft [1,500m] of water. Production in
2009 was 140,000bbl/d [22,250m3/d] of oil with
peak production expected to be 250,000 bbl/d
[39,730m3/d]. Given its size, location and reservoir uncertainty, Agbami field was an ideal candidate for ICs. But the success there, in terms of
incremental production as a result of IC installation, also demonstrates the potential advantages
the strategy holds for smaller fields if the initial
capex can be recovered.
Smaller, Modular
In contrast to most IC-candidate wellsthose
characterized by multiple high-rate targets
many average to marginal wells are profitable
only when operators are able to access numerous marginal production zones at the cost of a
single wellbore. Despite the complexity inherent in drilling and completing many of these
wells, project economics often demand that
capex be strictly limited. This forces operators
to exchange the reservoir management capabilities of an intelligent completion for the
lower initial costs of traditional mulitzone
completion configurations.
Schlumberger engineers have recently developed a technical solution to this market-driven
issue by repackaging traditional, high-tier IC
technology into a significantly lower-cost system. The IntelliZone Compact modular zonal
management system was developed for deployment in multizone wells that require fewer
choke positions and are of lower working pressures than those of traditional IC-candidate
wells. It is suited for use in brownfields or marginal fields, in wells that would otherwise use
sliding sleeve completionsmost without monitoring systemsand wells requiring extended
well testing. The IntelliZone Compact system
improves recovery in long, horizontal wells by
compartmentalizing them and controls zones in
artificial lift wells by monitoring and controlling
inflow at the sandface.

The IntelliZone Compact system is an integrated assembly rather than a conglomeration of

the individual tools that make up traditional ICs.
The downhole flow control assembly includes a
packer, a handling sub and an FCV (left). FCVs
may be either on-off two-position or four-position
chokes. Each assembly can be tested at the factory and run with a production packer or an isolation packer without slips.
Using frequency shift keying (FSK) communication technology to transmit data to the surface,
the system monitors downhole pressure, temperature and valve position every second.10 The data
are transmitted to the surface control system via
a single monoconductor cable. A hydraulic power
unit (HPU) controls all hydraulic line fluid outflow, inflow and pressures required to actuate
downhole tools. A UniConn universal site controller functions as a data-gathering and control platform that operates motor control systems,
downhole tool systems, SCADA and other communication systems.
The control system fulfills several key functions including acquisition and storage of tool
dataannulus pressure, tubular pressure, annulus temperature, tubular temperature and FCV
position. It also performs the automated sequencing of valve operations, alarm detection and conditions, tolerance levels, acquisition and storage of
HPU data and remote SCADA capability.
The system relies on WellBuilder software for
completion design to integrate the completion
planning process from concept to commissioning.
The WellBuilder program uses reservoir conditions, completion requirements and construction
parameters to generate multiple configurations
of the required number of control lines and operating pressure envelope limits for each zone.
IntelliZone Compact two-position FCVs include
a flow control section and an actuator section.
The two-position FCV may be either open or
closed. A single actuation, accomplished by
bleeding one control line while increasing pressure on another, changes the valve position from
open to closed or vice versa. When more than one
FCV is placed in the well, line sharing allows
reduction of the number of lines to one plus the
number of valves in the hole. The four-position
FCV includes a choke and an actuator section
plus a J-slot indexer, which controls the chokes
position; it can be closed, 33% open, 66% open or
100% open.
Like the two-position FCV, the choke position is changed one step per actuation by bleeding one line and pressuring up another and can
also be configured for line sharing to minimize
the number of hydraulic lines installed. The

Oilfield Review

four-position FCV can also use a multidrop module that allows manipulation of up to three
downhole valves through a single control line. A
position sensor is integrated into the hydraulic
FCV, which is accomplished by programming
each FCV to react to a two-, four- or eight-pulse
signal (right). Since the valves move in a single
direction, a series of pulses may be used to
change them from on to off or through the series
of choke settings.
Minimizing the number of hydraulic control
lines in a completion reduces installation complexityfewer lines require less handling and
splicing. The multidrop module also makes it possible to place FCVs at more production zones
than would otherwise be possible because of a
limited number of available packer or tubing
hanger penetrations.
The multidrop module is externally mounted
to the tubing within the IntelliZone Compact system and is connected to the open and closed
ports of the FCV and, in series, to the hydraulic
control line deployed to the surface. Downhole
instrumentation can also be added to the flow
control assembly as a modular package by mounting pressure and temperature gauges and other
hydraulic devices around the tubing sub.
Savings in Brazil and India
The savings generated by the IntelliZone Compact
system approach compared with conventional
intelligent completions systems are derived from
its modularity and standardization. At about
10m [30ft] long, it is half the length of standard
ICs. Because the isolation device, sensors and
flow control valves are packaged in a single
assembly, there are no interface issues common
to systems built from components supplied by
multiple manufacturers. This significantly
enhances total system reliability and, because the
entire system is assembled and tested at the
point of manufacture rather than in the field, it
saves operator rig time.
The IntelliZone Compact system also helps
operators save time and possible missteps
because the control lines are installed as part of
the package. Control line handling on site is
limited to making splices above and below the
package as it is run into the well. In standard
applications, these lines must be threaded
through the packers and connected to each control valve individually; this is a time-consuming
operation fraught with opportunity to damage
lines and components. Because fewer lines
require handling, risk associated with splicing
operations is also reduced.

Autumn 2011

0
Two-pulse
multidrop module

Zone 1

Actuation cycle
3
4
5

Close Open Close Open Close Open Close Open

Two-position FCV

Four-pulse
multidrop module

Zone 2

Close Close Open Open Close Close Open Open

Two-position FCV

Eight-pulse
multidrop module

Zone 3

Close Close Close Close Open Open Open Open

Two-position FCV

Zone 1
Two-position FCV
Multidrop module

Zone 1
Four-position FCV
Multidrop module

Zone 1
Four-position FCV
Multidrop module

Zone 2
Two-position FCV
Multidrop module

Zone 2
Two-position FCV
Multidrop module

Zone 2
Four-position FCV
Multidrop module

Zone 3
Two-position FCV
Multidrop module

Zone 3
Four-position FCV
Multidrop module

Zone 3
Four-position FCV
Multidrop module

Zone 4
Two-position FCV
Multidrop module

Zone 4
Four-position FCV

Zone 5
Four-position FCV

Zone 5
Four-position FCV

> Reducing the number of hydraulic lines. In typical completion configurations, each surface-actuated
FCV requires a dedicated hydraulic line. A multidrop module interprets pulses from the surface as
commands to shift openings of a specific FCV within a well (top). This allows engineers to operate
at least one more FCV than the number of hydraulic lines available. For example, using multidrop
modules (bottom) allows three 2-position FCVs to be operated on a single control line (black lines, left)
or two 2-position plus three 4-position FCVs on two lines (black and green lines, middle) and up to five
4-position FCVs on three lines (black, green and red lines, right).

9. Adeyemo et al, reference 8.

10. FSK communication technology uses a robust frequency
modulation scheme that sends digitally encoded data by
changing the frequency of a transmitted signal. A

receiver converts the signal back to the original form.

The FSK signal is easily connected to other
communications devices such as those used by
SCADA systems.

23

Perform final inspection.

25

Terminate fittings in the packer.

Arrange control lines and fit
protectors, plates.
Install dual gauge into mandrel.
Perform gauge check and pressure test.

20

Perform electrical test and check gauge.

Function test FCV.
Connect control line to FCV:
flush, connect and pressure test.

Operation, h

15

Pass the control line and electric line

through the packer feedthrough ports.
Connect packer assembly to tubing in
rotary table.

10

Pick up packer assembly to the rig floor.

Connect gauge mandrel assembly to
tubing in rotary table.
Pick up gauge mandrel assembly to
the rig floor.

Connect FCV assembly to tubing

in rotary table.
Pick up FCV assembly to the rig floor.

0
Standard IC

IntelliZone Compact
completion

> Saving time. Because it has a modular design and can be assembled and tested before arriving at the wellsite,
the IntelliZone Compact assembly is prepared to be run in a well in about half the estimated time required to reach
the same stage using a standard IC installation. Much of the time saved is a result of steps required of standard IC
installations (outlined in red) that are not required when running an IntelliZone Compact completion.

It was these time and cost savings that influenced a Petrobras decision to use an IntelliZone
Compact system in the Carapeba-27 injection well
of the Carapeba field in the Campos basin offshore
Rio de Janeiro. Engineers sought to optimize production from this mature field by replacing conventionally completed, one-zone wells with IC
three-zone wells. They chose to use an IntelliZone
Compact IC in an injector well to optimize reservoir sweep and to perform injectivity tests to allocate injection rates in each zone. Both objectives
are facilitated by the systems highly accurate position sensor. Engineers also needed to monitor and
control downhole flow remotely through their
SCADA system, which was accomplished through
the UniConn site controller.
Assembled and tested at the factory, each
component of the three-zone modular completion included an isolation or production packer, a
dual pressure and temperature gauge for tubing
and annulus reading, a multidrop module, a two-

24

or four-position FCV and an FCV position sensor.

Since Carapeba is a brownfield, its project economics demanded a low-cost system, which was
achieved by installation costs that were less than
those estimated for traditional ICs (above).
Engineers with an offshore India operator
also turned to an IntelliZone Compact solution as
it considered how to complete a three-zone well
within the economic restraints of a marginal
field. They sought to reduce capex by using
already purchased equipment. At the same time,
they sought optimum return on their investment
through control of each zone independently.
Given these two constraints, their completion
choices were between sliding sleeves and a surface-controlled downhole flow control system.
Sliding sleeves require interventions to shift
them, and engineers knew that to bring these
wells online they would have to perform coiled
tubingconveyed acid treatments across each
zone individually. The alternativetreating all

three zones at oncewould have resulted in

most of the acid entering one high-permeable
zone while leaving the other two untreated. Use
of traditional surface-controlled flow control systems to isolate each zone was not possible
because operation of control equipment for
three zones would require more hydraulic lines
than existing penetrations in the companyowned wellhead.
The solution included deploying a multidrop
module in an IntelliZone Compact system.
Engineers were able to deploy surface-controlled
downhole FCVs across all three zones using a single hydraulic line. The systems were deployed with
a cased hole packer and two swellable packers to
isolate each zone (next page). Using the multidrop
module, engineers could open one zone while the
other two were closed, ensuring that acid treatments were reaching their targets.

Oilfield Review

The elimination of three of the four control

lines required by traditional systems and of the
need for coiled tubingbased interventions
saved the operator three weeks of rig time. As a
result, the operator optimized production at
165% of the originally expected rate and saved
US$1million within the first two months following system installation.
Low-Cost, High-Technology Solution
Optimizing production requires investment.
However, when faced with an asset of marginal
reserves, operators are often left to choose only
from basic completion scenarios for fear that any
incremental production realized through higher
technology will not be enough to pay the cost of
such a solution. This is especially true when the
challenge to increased production is as technical
as that faced by engineers at PETRONAS completing a field offshore East Malaysia.
The PETRONAS-operated S-field contains
marginal reserves in unconsolidated heterogeneous sandstone reservoirs. Reserves are in a
stacked 40m [131ft] thick oil column. Because
of the presence of a large gas cap, engineers
feared breakthrough would prematurely end production and cause significant oil reserves to be
bypassed. They also had to consider the possibility of water invasion from a moderately strong
and active aquifer.11
To reduce well count while maximizing reservoir contact, PETRONAS engineers planned
development of the field using 14 horizontal
wells. Horizontal wells create a lower pressure
drop at the sandface than do typical vertical or
deviated wells with equivalent productivity. This
lower drawdown helps reduce the severity of
water coning and gas cresting.12
However, when the horizontal section penetrates zones of differing flow properties, those
with higher permeability will deplete first. This
can lead to water or gas entering the wellbore
through the depleted sections of the producing
zone, causing reserves in less permeable areas of
the formation to be bypassed. Once such breakthrough occurs, rig-based remedial operations
11. Chen et al, reference 5.
12. For more on extended-reach drilling: Bennetzen B,
Fuller J, Isevcan E, Krepp T, Meehan R, Mohammed N,
Poupeau J-F and Sonowal K: Extended-Reach Wells,
Oilfield Review 22, no. 3 (Autumn 2010): 415.
13. For more on inflow control devices: Ellis T, Erkal A, Goh G,
Jokela T, Kvernstuen S, Leung E, Moen T, Porturas F,
Skillingstad T, Vorkinn PB and Raffn AG: Inflow Control
DevicesRaising Profiles, Oilfield Review 21, no. 4
(Winter 2009/2010): 3037.
Chen et al, reference 5.

Autumn 2011

may be futile or may be unable to return oil production to economic levels.

Because zonal property contrasts were high,
PETRONAS had to balance initial influx and
maintain the ability to react to inflow problems
later in the wells life. To satisfy these requirements, IntelliZone Compact completions were
considered as an alternative to passive inflow
control devices (ICDs) for the other six commingled producers.13 Wells in the S-field best
suited for the application were analyzed and
ranked based on the well production profile and
dynamic reservoir fluid properties such as water
cut and gas/oil ratio. Different sandface production sensitivities for incremental oil, water-cut
reduction, gas/oil ratio profile and FBHP were
also performed.
The two wells chosen for the installation
Well-A1 and Well-A2showed positive zonal
inflow control analysis results compared with
that of the base case of conventional stand-alone
screens. They were completed with integrated
modular completion packages that included
zonal isolation packers, two intermediate and onoff position FCVs and permanent real-time pressure and temperature sensors.
The assemblies were delivered to the wellsite
as a single joint less than 9m [30ft] long
one-half to one-third the length required for a
comparable conventional IC. The assemblies were
also pretested with electronics and hydraulic
splices welded at the manufacturing center. Each
tested connection was locked to the assembly and
another metal strip was affixed to the housing to
further protect the assembly and to guard against
damage from shock during installation.
In addition to reducing the risk of installation
failure, these practices shortened installation
time by reducing the number of connections to
be made and lines to be spliced on site. In the
S-field case, installation rig time savings were up
to two-thirds per zone compared with that of conventional installation, or the equivalent of about
US$400,000 per well completed.
Following installation, wellbore nodal analysis combined with time-lapse modeling was used
to predict production scenarios based on reservoir deliverability for proposed wellbore trajectories. Because detailed geologic and petrophysical
properties for each well were unavailable from a
history-matching model, these were calibrated
from offset field performance. Production simulation results indicated how the IntelliZone Compact
ICs would enable zonal production and control in

Packer

Multidrop
module
FCV
Perforations
Zone 1

Packer

Hydraulic
line

Multidrop
module
FCV
Perforations
Zone 2

Packer

Multidrop
module
FCV
Perforations
Zone 3

> Adapting to available equipment. Using

multidrop modules at each of three zones,
engineers were able to control FCVs through
a single hydraulic control line (green line). The
operator was thus able to use a wellhead in
inventory instead of having to purchase a more
expensive one with the requisite higher number
of penetrations required in traditional three-zone
IC installations.

25

Production Gain Analysis: FCV Versus Passive ICD

2.4

Cumulative oil production, million bbl

2.1
1.8
1.5
1.2
0.9
0.6
0.3
0
Jan. 2009

Oct. 2009

July 2010

April 2011

Jan. 2012

Oct. 2012

July 2013

April 2014

Jan. 2015

Date

> Potential gain in ultimate recovery. Field modeling software providing material balance, nodal
analysis and system performance was used to compare estimated ultimate recovery for wells in
the PETRONAS-operated S-field. The well was completed with surface-controlled downhole FCVs
(blue) and compared with a well equipped only with a passive ICD (green). The FCV-equipped well is
projected to ultimately recover 100,000 more barrels of oil than the ICD-equipped wells. (Adapted from
Chen et al, reference 5.)

various reservoir deliverability and production

scenarios. The systems would be especially effective in controlling inflow from high PI zones by
using a smaller valve opening, while encouraging
low PI zones to flow through a fully opened valve.
The IntelliZone Compact design includes
options for three sizes of FCVs, each with fully
open, fully closed and two intermediate choke
settings. Based on reservoir simulation models,

Zone 1
Case

Zone 2

the valve assemblies were designed using the

following selection criteria:
zonal control for discrete zones
flow balance from multiple zones
crossflow prevention
sufficient capacity for zonal PI differences.
Engineers used integrated field modeling
software that provides material balance, nodal
analysis and system performance analysis to
compare the estimated ultimate recovery for the

Zone 1

wells completed with IntelliZone Compact systems. They studied two production scenarios
potential production gain and downhole water
and gas shutoff.
Under the first scenario, compared with passive ICDs, engineers found that active downhole
flow control resulted in an additional 15,900m3
[100,000bbl] of oil (above). Analysis of the second scenario, focusing on downhole gas and

Zone 2

Opening, % Opening, % Tubular, psi Annulus, psi Pressure, psi Tubular, psi Annulus, psi Pressure, psi

Gas rate,
Flow rate,
Water cut, % MMcf/d PI, bbl/d/psi
bbl/d

Case 0

100

100

2,094

2,092

2,096

2,094

1,179.2

0.12

0.18

Case 1

100

1,877

1,873

1,875

2,105

230

555.4

21.30

0.05

138.9

Case 2

100

2,101

2,035

66

2,102

2,100

1,067.6

4.85

0.08

533.8

Case 3

33

100

2,095

2,091

2,097

2,095

1,144.4

0.22

0.19

Case 4

67

100

2,095

2,092

2,097

2,095

1,143.4

0.21

0.18

Case 5

100

67

2,085

2,082

2,086

2,101

15

1,001.9

0.44

0.16

Case 6

100

33

1,951

1,949

1,952

2,100

148

1,050.6

0.37

0.17

> Flow control configurations. Measuring zonal production with downhole pressure gauges, engineers studied seven control valve configurations for two
zones in Well-A2 in the S-field. Case 0 established production with both zones fully open. In Cases 1 and 2, by shutting off production from Zone 2 and then
Zone 1, respectively, the operator established the PI and water cut for each zone. Using the results of Cases 0, 1 and 2, engineers were able to discern that
because of its low PI, Zone 1 did not contribute any production when both FCVs were fully open. After testing other combinations, the team concluded that
Case 3, in which the valve controlling Zone 1 is 33% open and the valve at Zone 2 is 100% open, was the optimum configuration. (Adapted from Chen et al,
reference 5.)

26

Oilfield Review

50

2,000

40

1,500

30

1,000

20

500

10

5
4
Time, months

Water cut, %

Oil rate, bbl/d

2,500

50
1,200

Oil rate, bbl/d

800

30

600

20

Water cut, %

40

1,000

400
10

200
0

5
4
Time, months

> Comparing production profiles. Well-A1 (top), equipped with an

IntelliZone Compact completion, was able to defer water breakthrough (blue)
and reach and maintain a higher net oil production profile (green) than an
offset horizontal well (bottom) completed in the same sand. The offset well,
however, was plagued by water production that resulted in lower net oil
production. (Adapted from Chen et al, reference 5.)

water management, indicated that productionending water breakthrough would occur from the
smaller, more permeable reservoir at the wells
heel. By shutting off that zone and opening the
thicker, less permeable zone at the wells toe,
production would continue.14
Using pressure buildup survey data, FBHP
and surface well tests, an asset team studied productivity and zonal reservoir deliverability in
Well-A2 to better understand the reservoir. Zonal
contribution was monitored using permanent
downhole pressure gauges, and production was
adjusted through FCVs at each zone. After studying seven configurations, the asset team determined that 33% and 100% openings on Zones1
and 2, respectively, created optimum flow (previous page, bottom).

time, misgivings about system reliability have

been overcome, and such innovations as rotary
steerable systems and expandable casing have
become commonplace. The same can be said of
the industrys acceptance of IC technology.
Today, industry recalcitrance about ICs stems
from financial concerns among operators uncertain about their marginal or maturing assets;
operators must see sufficient production increases
from remote downhole monitoring and control
capabilities to justify the hardwares initial costs.
The introduction of a modular system aimed
at providing the industry with the advantages of a
traditional IC at a much lower cost promises to
satisfy that requirement. This change in perception will accelerate the adoption of IC technology
throughout the industry and, in doing so, significantly impact how operators view their marginal
and mature fields.
With the cost barrier to entry lowered, ICs
may extend the life of marginal fields because the
technology to control production at the sandface,
without interventions, leads to higher net production and ultimate recovery through more efficient
commingling. Similarly, projects with economic
scenarios so fragile that they were shelved for
fear the cost of probable future interventions
would negate net profit may now be brought forward. By using ICs in these marginal projects,
operators can save on interventions and reduce
initial capex for ancillary facilities. The ability to
manage reservoir parameters by controlling flow
to slow water ingress at the sandface also allows
operators to plan smaller surface facilities and
reduce water-handling costs, both of which have
significant impact on aging or marginal field
development plans.
RvF

The asset team compared a production profile of Well-A1 with one in an offset horizontal
well completed in the same sand (above). The
former showed a prolonged period of high net
oil production while water and gas breakthrough was deferred. The latter suffered from a
fluctuating lower oil rate coupled with accelerating water encroachment.
Technical Solution to a Market Problem
For years, developers of oil industry technology
have been stymied by an industry reluctance to
adopt innovative solutions. Generally, user hesitancy, particularly regarding tools aimed at the
upstream sector, has been grounded in a fear that
the new system would fail when subjected to the
harsh realities of the downhole environment. In

14. Chen et al, reference 5.

Autumn 2011

27