Perspectives on CO2 EOR

Bob Alford

Maersk Oil: Navigating Complexity, Unlocking Potential

Maersk Oil is a wholly owned subsidiary of the Maersk Group, the world’s largest shipping company

Denmark

Qatar

UK

USA

Brazil

Norway

Algeria

Kazakhstan

Angola

Iraq

Greenland

Abu-Dhabi

Exploration, development and business development

Operated and non-operated production

Maersk Oil operates around 600,000 barrels of oil equivalents / day• Turning marginal and challenging fields into commercial successes

• Executing large and complex projects on time and budget

page 2

Operating the Worlds Largest Ships…

The deployment of twenty Triple-E

vessels, each capable of carrying

18,000 twenty foot containers, is

placing Maersk Line at the helm of

change.

The size and capacity of these

vessels, at 400 metres long and 59

metres wide, reduces energy

consumption and lowers CO2

emissions.

page 3

…and reducing our CO2 Footprint

Positive Macro Environment for CCUS in Abu Dhabi

• Low permeability carbonate reservoirs well suited to CO2 EOR

• CO2 EOR deployment slowed because of the lack of low cost CO2 supply - but new sources are emerging

• High growth in domestic energy consumption but governments keen supporters of carbon reduction initiatives

page 4

MENA has the highest CO2 EOR potential

page 5

This does not include the additional scope to obtain oil from the Residual Oil Zones (ROZ*)

*ROZ = oil below the normal oil/water reservoir contact

MENA region dominates the list of worldwide CO2 EOR potential locations

Location; EOR in Bln barrels; EOR % of totalSource: Michael Godec 2010

0

100

200

300

400

500

600

Now 2023

Potential for CO2 to displace Methane Injection for Onshore EOR

Emirates Steel CO2

TriGen CO2

Methane Gas

CO2 substituted for gas injection frees up gas

page 6

Methane can be used for export or to benefit other industries in Abu Dhabi

Note that an additional 1.5 bcf/d of methane is being injected into rich gas reservoirs

Gas I

nje

cte

d (

mm

cf/

d)

CO2 Injection vs. Methane Injection for EOR

page 7

CO2 WAG Could Increase the Oil Recovery Factor from <30% to 45%+

Long horizontal / Maximum Reservoir Contact wells could further enhance the viability of CO2 WAG

*WAG = Water Alternating Gas (CO2)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Methane gas injection Conventional Waterflood CO2 WAG* injection

‘Industry Average’ Recovery Factors

Comparison of Injectant Efficiency

From the Space Industry to the Energy Industry…

…A New Source of Low Cost ‘Reservoir Ready’ CO2

page 8

TriGen’s Oxycombustion ProcessClean Power for over 100,000 Homes while Boosting Oil Recovery

OxyFuel GasCombustor

Air SeparationUnit (ASU)

Gas/Steam

Turbine

Generator

The Power of TriGeneration*

Separation

Gas (+CO2)

45 m

mcf/

d

O285 m

mcf/

d

N2

Nitrogen

Pure Water

0.5 MGD

Net ElectricPower180 MWe

Enhanced Oil Production ~ 7000 bpd

page 9

Oil ReservoirGas Reservoir

CO2 45

mmcf/d

Associated gas with CO2

OilSeparation

*outputs from single TriGen unit – other sizes available

Space Shuttle derived combustor technology…

Diffusion bonded platelet technology similar to Printed

Circuit Heat Exchangers (PCHE’s) used in upstream oil applications

…Demonstration plant operating in California since 2005

page 10

Why Oxycombustion for Carbon Capture?

Atmosphere

Syngas

& Shift

+ CO2 sep

Air Separation Unit

Amine

Absorption

CO2

Compression

& Dehydration

Power & Heat

Power & Heat

Power & Heat

N2

N2 O2

O2

H2

N2

O2

CO2

CO2

CO2

Air

Post Combustion

Precombustion

Oxyfiring

Air

Air

Fossil Fuel

Enhanced Oil

Recovery

TriGen is an oxyfuel technology:• Pure CO2 – no capture cost• Air Separation – energy penalty

page 11

Oxycombustion Chemistry Protects the environment

Nitrous Oxides produce Ozone

(a major smog component)

Oxycombustion produces no NOx and therefore no harmful Ozone

Its only combustion products are products are pure CO2 and H2O ready for use

CH4 + N2 + O2 CO2 + H2O + N2 + NOxAir combustion

Oxycombustion

Air

page 12

CH4 + O2 CO2 + H2O + NOx

Impure Carbon

Dioxide is released

Natural

Gas

Natural

GasOxygen

‘Reservoir Ready‘ CO2 is fully captured and

sequestered deep underground

Water Nitrous

Oxides

Carbon

Dioxide

Nitrogen

The zero emission

TriGen process

Conventional gas fired power

generation

Summary: Drivers / Impediments for CO2 EOR

Drivers

• ADNOC companies 70% ultimate recovery target

• Recognition of CO2 EOR as a key enabler for achieving 70% recovery

• Abu Dhabi’s clean energy vision for 2020, 2030

Challenges

• Incentive fiscal terms for EOR

• Pre/Post combustion CO2 sources limited and/or above ‘market price’

• Clean electricity priced on a ‘case by case’ basis

• Aligning stakeholders for integrated carbon capture to CO2 EOR project

page 13

Thank you

page 14

Abu Dhabi’s Existing Air Separation Plants

‘Waste Oxygen’ may be used for oxy-combustion

power generation

page 15

150MWe Oxy-Fuel Turbine

De-Min Tank

The World’s Largest Oxy-Fuel Facility

(Operated by Maersk Oil Technology Partner, CES)

12” Gas Generator 200MWth

Re-Heater Test Stand Geo/Solar Thermal Booster Demo

24MWe Load Banks

Oxygen Accumulators

Areva Solar Thermal Plant

Oxygen Tank and Vaporizer

Gas Accumulator Pad

CES Kimberlina Power Plant October 2012

60MWe Generator

Gas Accumulators

G2S2 SAGD Steam Separator

30MWe Oxy-Fuel Turbine

4” Gas Generator 20MWth(Inside Biomass Boiler Building)

6MWe Elliott Steam Turbine(Inside Building)