RE-ENTRY HORIZONTAL DRILLING forENHANCED OIL RECOVERY

Brod SutcliffeOleg Schkoda

15th December 2011

RE-ENTRY HORIZONTAL DRILLING forENHANCED OIL RECOVERY

Brod Sutcliffe – DIrectorAndika Mahardika – Operation Manager

Geoglide Well PositioningUMW –Hydraulic Work Over Unit

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Drivers for Enhancing Oil Recovery through Re-entry Drilling• Are your wells dead or producing at marginal rates ?• Is the gas & water disposal cost spiraling ?• Are there bypassed reserves in your reservoir ?• Can you determine where these reserves are ?• Are your existing wells in re-usable condition ?• Are there formations you wish to avoid ?• Drilling unit availability ?

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Indonesian Oil Production

• First oil – 1883, Telaga Tiga, N Sumatra

• Cepu refinery opened in 1890

• Pertamina formed in 1968

• Peak oil in 1995: 1,600,000 BOPD

• Steady production decline

• 2011 (est) : 903,000 BOPD

• Dozens of mature fields

• Reserve estimate: up to 8 BBOIP

Meeting Indonesian Oil Production Targets

• The job is getting more difficult

• Production shortfall widened in 2011

• Production vs Consumption shortfall widening

Source: IEA, 2015

1. Field Screening- Economic evaluation- Residual producible reserve volumes & location- Current well production - Condition of well & production facilities- Existing seismic and well monitoring- Select a candidate field for more detailed study

2. Assess Wells- Production logging data (availability, economic viability)- Thru-casing logging- Casing condition logging- Modeling of scenario per well- Define remedial action plan

EOR Re-entry Drilling Candidate Selection

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Geoglide Services for Re-entry Drilling

• Directional drilling, MWD, LWD & directional surveying services

• Fishing & casing exiting services (with technical partners)• Reservoir & geological consultation

• Directional well planning & anti-collision

• Drilling engineering

• Drilling optimization– Vibration management

– Downhole pressure management

• Geo-mechanics & formation pressure management

• Geo-steering

• Risk analysis & economics

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• Leverage of existing production facilities & infrastructure• Risk relatively low due to reservoir knowledge • Access bypassed & un-swept reserves• Extend well life and cumulative production

Increase recovery factor / life of mature field:

Drivers for Re-Entry Horizontal Wells

• Exploit pre-existing well (well-head, slot, casing)

• Leverage off existing well information and history

• Manage surface area / structure

Utilize pre-existing wells to avoid the cost/risk of drilling through the over-burden

Three levels of engagement:

EOR Options

1. No re-entry- Optimization of production through surface production facilities adjustments / modifications

3. Re-entry & re-drilling or sidetracking- Re-drill well beyond damaged or coned zone- Sidetrack to access bypassed reserves- Apply benefits of horizontal completions to fields drilled with old technology / techniques

2. Re-entry & re-completion- Work-over, stimulation, re-completion

EOR Re-entry Drilling Key Criteria

• Economics – bypassed reserves are marginal, so we need to keep the cost down !

– Reduce drilling unit footprint

– Reduce POB, support costs

– Reduce equipment cost

• Reduce risk – Confidence of finding reserves (Reservoir & Geology)

– Technical (right technology with high repeatable success rate)

– Minimize complexity

– Planning – more planning = lower execution cost / risk– Use highly experienced people

– Reduce HSE exposure & environmental impact

EOR Re-entry Drilling Unit Selection• Primary considerations: Cost & Risk

• Options– Conventional J/U

• Fairly expensive and often difficult to position due sea-bed infrastructure

– Light weight purpose designed platform rig• Ideal where large campaign is firm

– Hi-spec HWU• Ideal to prove concept or execute

small programme

– CTDU• Higher cost & risk

• Availability (also barge support requirement ?)

Delivery - Risk Reduction

• Planning– Reservoir studies & assessment to locate un-swept reserves

– Ask “will a horizontal drain optimize recovery ?”

– Bottoms-up planning – design well around the production drain

– Design completion (hardware, fluid, longevity, accessibility)

– Connect the drain to the plumbing – i.e. existing host well• Optimize hole size for casing size & expected P-rate

• Directional profile – radius (i.e. optimize curve length to minimize over-burden drilling but allow accurate well placement, lateral length & completion

– Rig availability • Minimal (cost-effective) size, foot-print

Delivery - Risk Reduction

• Planning continued– Knowledge management

• Offset well review – drilling performance

• technology used

• drilling problems experienced and how solved

– Conduct well planning & engineering• Formation pressure regime

• Geo-mechanical stability

• Direction plan, torque, drag, hydraulics

– Develop scope of work, time-depth curve, spread cost, AFE

• define casing exit method, drill bits, FE programme, fluid, steerable BHA design, completion design

– Develop contingencies.

Delivery

• Preparation– Assign a highly experienced project team &

field crew

– Communication

– Develop & distribute well-defined Operations Programme

– Pre-spud meetings

– Team building

– Secure supply chain (mobilization)

– Contingency

– Prepare well plans,

– Finalized BHA design & bit selection

Delivery

• Execution– Kill & secure well

– Fish completion & set base plug

– Assess well condition – casing, cement integrity

– Run Casing Caliper-CCL-CBL-GR log

– Precise depth matching

– Squeeze cement if required

– Run, orientate & secure one-trip whipstock w/ milling BHA (or section mill)

– Cut window

– Ensure window is clean & all junk removed POOH

Delivery

• Execution– Run drilling BHA

• For SR wells a special curve BHA will be run with a slide-only SR motor

prior to running a conventional steerable BHA for the lateral

– Monitor torque, drag & hydraulics

– Reduce drilling risk • Light BHA to minimise differential sticking

• PWD for hole cleaning and pressure management

• Tri-axial vibration to ensure LWD reliablity

• Mechanical thruster to assist slide steering and extend lateral reach

– Ensure accurate well placement• WPR resistivity for geosteering

• EM MWD if UBD

Horizontal Drilling – What Radius is Best ?

1,000m

2,000m

up to 10,000m

30 - 60°/30m58 – 29m radius

860 – 290m radius

LongRadius

MediumRadius

ShortRadius

2° - 6° / 30m

290 – 58m radius6° - 30° / 30m

300m

60 - 220°/30m29 - 8m radiiUltra Short

Radius

Horizontal Well Radius Definitions

Radii versus Distance Drilled

Radius Curve Length DLS8 12.6 214.8

12 18.9 143.218 28.3 95.525 39.3 68.730 47.1 57.345 70.7 38.2100 157.1 17.2200 314.2 8.6300 471.3 5.7400 628.4 4.3500 785.5 3.4

1000 1,571.0 1.7

DLS Curve Length Radius200 13.5 8.6100 27.0 17.260 45.0 28.630 90.0 57.312 225.0 143.28 337.5 214.83 900.0 572.9

(m) (m)(m) (m)(deg/30m)(deg/30m)

Ultra-short radius (USR) – USRD + GeoglideShort radius (SR) - GeoglideMedium radius (MR) - GeoglideLong radius (LR) - Geoglide

Radius Drivers: Medium versus Short

Short R

adius

Short R

adius

Medium

Radius

Horizontal Drilling Technology

Long Ultra-ShortMedium

Build Rate (deg/30m (deg/100’))

Curvature

Tool Type

Pipe Rotation

Completions

MWD Type

Std MotorsUSR / Articulated

Collar

Conventional

Slide Drill - No Rotation

Ti & Composites

Conventional - No RestrictionsSpecial

Short Bit-Bend

Short6 30 60

950290

19058

9529

Radius (ft.)Radius (m)

Probe MWD Flex MWD / Steering Tool

Premium - Limited Rotation

220

258

• Limitations versus radius:

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EOR Re-Entry Drilling – Information Needed:

• Desired radius (either radius or DLS) and reason (less cost, trying to avoid a tricky formation, or water, etc)

• Hole size for curve

• Hole size for lateral (generally the curve and lateral will be the same)

• Length of lateral required

• Lithology across the curve (any water bearing layers, unstable shales, etc)

• Lithology of reservoir (e.g. clean sand, carbonate, fractures, shale lenses, etc)

• Nature of reservoir (any gas / water to be avoided)

• Reservoir pressure

• LWD requirements in curve (typically just GR, but resistivity is available)

• LWD requirements in lateral; any geosteering capability needed

• Downhole temperature

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EOR Re-Entry Drilling – Information Needed:

• Drilling fluid type; any underbalanced drilling planned ?

• Completion design

• Any ESP requirements

• For a re-entry: Casing exit details (casing size(s), casing condition, cement condition, window method preferred)

• Anticipated rig capacity

• Estimated AFE, days / well, spread cost

• Anticipated production / well

• Number of wells planned

• Project start date, tender date, etc

• Tender type – full IS, SRD package, individual services, lump sum, $/m, $/day, incentives, penalties

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CONCLUSION

• EOR projects are economically marginal requiring very cost effective, low risk solutions and technologically acceptable

• Working with a light weight rig or HWU can deliver with confidence !

THANK YOU