Innovations in Reservoir Surveillance

DTI Perspective on Reservoir Surveillance

Colin Cranfield Reservoir Engineer Licensing and Consents Unit Aberdeen 15 September 2004

Innovations in Reservoir Surveillance

Quote from the late Laurie Dake* Thorough data acquisition is expensive (very expensive) and it is the duty of practising reservoir engineers to convince those who hold the purse strings of the necessity of the exercise.

* The Practice of Reservoir Engineering

Innovations in Reservoir Surveillance

Overview
DTI-LCU remit PILOT initiatives UKCS reserves Brown field growth Reservoir surveillance General issues Field observations Conclusions

Innovations in Reservoir Surveillance

DTI-LCU aim

Maximise economic recovery of UK oil & gas while minimising environmental impact

Innovations in Reservoir Surveillance

Reservoir surveillance is important throughout field life

Pre-development discussions Field determination issued FDP approved Field start-up Phased development ? AFRs submitted / Addenda to FDP COP

Need to establish economic viability of reservoir, .e.g EWTs Gain reservoir understanding for effective management Establish that reservoir is uneconomic prior to abandonment

Innovations in Reservoir Surveillance

PILOT targets

Government industry partnership Striving to meet 2010 target

Innovations in Reservoir Surveillance

PILOT targets

Government industry partnership Striving to meet 2010 target Can only be achieved via New field development Brown field growth Exploration success

Innovations in Reservoir Surveillance

UK production forecast (mmboe/d)

Actual
4.5 4.0 3.5 3.0 2.5 2.0 1.5
Brown field growth Possible new developments Probable new developments upside
Total UKCS Oil and Gas Production from discovered reserves production boe/day) Forecast(million UKCS oil and gas production 2003

- 2010
4.5 4.0 3.5 3.0 2.5 2.0 1.5

PILOT targets 2005 & 2010

1.0 0.5 0.0 2001

Probable new developments Approved fields Proven + Probable

1.0 0.5 0.0

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source DTI 2003 annual reserves review

Innovations in Reservoir Surveillance

DTI initiatives

PILOT Fallow process Promote licences Access to data Infrastructure code of practice Brown field work group Plus Work with ITF on technology development IOR conferences, web sites, eNewsletter

Innovations in Reservoir Surveillance

UKCS recovery factor distribution

Northern North Sea
Oil Recovery 43%
(upside 45%)

Key Oil Gas

Central North Sea

Production to date
P+P Reserves Possible reserves Unrecovered Oil Recovery 46%
(upside 49%)

Gas Recovery 65%

(upside 71%)

Southern North Sea

Gas Recovery 74%
(upside 78%)

Source DTI

Innovations in Reservoir Surveillance

Improving brown field recovery

Reserves % increase 1991 - 2003
90 80 70 60 50 40 30 20 10 0
In de Br en t Le m M an or ec am be C am el ot S. B ra e Fu lm ar Fo rti es M on A rb C li p pe r H ea th Ba e r lm or al el ds Be ry l Th is tle Vi ki ng M au re en Au k Se an IV & R R Vfi

Source UK Oil & Gas Commemorative Volumes

Innovations in Reservoir Surveillance

Brown field growth

Brown field WG addressing barriers Typical success factors Cost control Combining technologies Technological advances
Drilling & completion
Geo-steering

Sub-sea tie-back

Improved reservoir understanding

Integrated approach 3D/4D advances

Innovations in Reservoir Surveillance

By-passed & trapped oil

Causes Reservoir compartmentalisation Fault shadows Heterogeneity Attics Opportunities Better utilise injection Infill / sidetrack locations Well work / re-perforation / water or gas shut-off

Innovations in Reservoir Surveillance

1) Existing wells draining effectively?

Innovations in Reservoir Surveillance

1) Existing wells draining effectively?

Massive sands un-perforated intervals

Existing B2 perforations Un-perforated Existing B2 perforations 10383 10423 ft md 10423 10470 ft md 10478 10498 ft md

Innovations in Reservoir Surveillance

2) Existing wells draining effectively?

Innovations in Reservoir Surveillance

2) Existing wells draining effectively?

Channel sands un-perforated interval

Un-perforated interval 11,770 11,790 ft md

Innovations in Reservoir Surveillance

3) Existing wells draining effectively?

Gamma ray spikes could they be horizontal barriers?

Innovations in Reservoir Surveillance

Typical surveillance approaches

Routine RFT, LWD, logging Production performance Non-routine 3D/4D, geochem, geomech, SrRSA Permanent surveillance Difficulty in estimating value More advanced cost/benefit analysis?

Innovations in Reservoir Surveillance

Andrew production & 4D surveys

150,000 140,000

Andrew Production Since Start-Up

150,000 140,000

Daily Water Volume bbl

130,000

Daily Oil Volume plbbl Daily Gas Production

130,000 120,000 110,000 100,000 90,000 80,000

120,000

110,000

100,000

90,000

Fluid [bbls/d]

80,000

70,000

Water Rate

70,000 60,000 50,000 40,000 30,000 20,000 10,000 -

60,000

50,000

40,000

30,000

20,000

OIL Rate
Nov-00 Nov-01 Jun-96 Jun-97 Jul-98 Jul-99 Jul-00 May-01 May-02 Aug-01 Jan-99 Dec-96 Dec-97 Jan-00 Sep-96 Sep-97 Feb-01 Feb-02 Mar-97 Mar-98 Apr-99 Apr-00 Oct-98 Oct-99

10,000

Maximising Brown field Recovery

Aug-02 Dec-02 Jun-03 Dec-03 Sep-03 Mar-03

Baseline 3D

3D/4D Survey acquisition

2001

2002

2004

Gas [mscf/d]

Innovations in Reservoir Surveillance

Surveillance challenges past and present

Compartmentalisation Impacted injection strategies Hydraulic fracturing Poorly controlled water injection Marginal / sub-sea developments Pre-drilled wells
Based on static data Non-optimum well placement

Defer injection wells? Inaccurate zonal allocation Inability to model reservoir

Innovations in Reservoir Surveillance

UKCS reserves categorised by development type

UKCS reserves

20 billion boe
Key Developed P+P Developed Fields Possible SST P+P SST Possible Undeveloped Probable Undeveloped Possible

Undeveloped

Platform Fields

Potential Additional

Subsea tiebacks
Source DTI web page

FPFs/FPSOs

Innovations in Reservoir Surveillance

Way forward - reservoir surveillance

Continue to refine and improve surveillance Down-hole flow- & pressure-meters

By zone

Continue to integrate data observations More sophisticated analysis Tailor strategy to specific reservoir situation Address key uncertainties Develop case for thorough data acquisition

Innovations in Reservoir Surveillance

Thank you for listening

For DTI oil & gas information:
http://www.og.dti.gov.uk/

or contact:
colin.cranfield@dti.gsi.gov.uk 01224 254066