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DR. PANDELE NECULAE WPC CPC RO NATIONAL COMMITTEE OF ROMANIA PRESENTS Place: Bucharest (Romania) Date: 21-22.10.2019 WPC EXPERT WORKSHOP BUCHAREST 2019 on “HC Increasing Recovery Efficiency in the Mature Fields. Methods and Technology for Cooperaon.” Good business. Efficiency. Sustainability.

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DR. PANDELE NECULAE WPC CPC RO NATIONAL COMMITTEE OF ROMANIA PRESENTS

Place: Bucharest (Romania)

Date: 21-22.10.2019

WPC EXPERT WORKSHOP BUCHAREST 2019 on “HC Increasing Recovery Efficiency in the Mature Fields.

Methods and Technology for Cooperation.”

Good business. Efficiency. Sustainability.

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WORKSHOP REPORT – STRUCTURE AND CONTENT GUIDELINES PART 1 – PLANNING & LOGISTICS Main contact: [email protected] ; [email protected], Phone: 0040 752 081 360, Corneliu Condrea President WPC RNC [email protected] ; [email protected], Phone: 0040 723 234 295, Pandele NECULAE, WPC CPC Romania Representative

A) PLANNING OUTLINE – ORGANISATION OF THE EVENT - Organisation of the event: This Expert Workshop was organised by the Romanian

National Committee and co-hosted by the Iranian National Committee. The logistics were led by Mr. Corneliu Condrea, President of WPC RNC and Dr. Mohammad A Emadi, WPC CPC Iran, EVP Upstream, Pasargad Energy Development Co, Iran The technical programme was led by Dr. Pandele Neculae, WPC CPC Romania and Mr. Ali Rahneshin, WPC YP Iran The WPC EXPERT WORKSHOP BUCHAREST 2019 was organised under the auspices of the World Petroleum Council – London / UK, Romanian Academy, Romanian Ministry of Energy, University of Oil and Gas Ploiesti and University of Bucharest with participation of H.E. Emil Constantinescu, President of Romania 1996 – 2000. The Official Partners of the event: MUSAT & ASOCIATII, Attorneys at Law https://www.musat.ro/ The Official Publication Energy Industry Review https://energyindustryreview.com/ The workshop was organised as a one and a half day of technical presentations split into 6 plenary roundtable sessions, one poster session and two specific oil and gas application visits. The WPC Iranian Nationl Committee as co–host of workshop particípated with specialists in the technical programme, led one plenary roundtable and invited participants to attend the workshop.

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- Format of sessions: 6 plenary roundtables sessions with Q&A and Conclusions. The format was developed to share and debate the success of applications and new technology with the participants including Q&A debates.

- Sponsorship: Musat & Associatii supported by providing the venue and facilties for workshop including conference romos, facilities, coffee breaks and snacks Romanian Geological Institute supported free of charge the technical visit at IGR - National Museum of Geology in Bucharest. National Petroleum Museum Ploiesti granted the visit too. Bioterra University- Bucharest granated free hosting for international students participation at WPC Expert workshop. Conpet SA Ploiesti, MegaConstruct SA Bucharest, Romgaz SA, EUROTOTAL COMP Bucuresti supported the payment to suplyer for part of services related to workshop programme.

- The technical conclusion drawn from this workshop indicates that using current

technology and new technologies with an adequate promotion of the successful ones the future production potential to be obtained only on the discovered oil fields will successfully meet the needs of the world over 2050 year.

PART 2 – CONTENT & OUTCOMES

B) WORKSHOP OVERVIEW

- Introduction: The topic of the event WPC EXPERT WORKSHOP BUCHAREST 2019 “HC Increasing Recovery Efficiency in the Mature Fields. Methods and Technology for Cooperation.” was selected and elaborated according with the proposal of Petroleum companies to meet the business and social responsibility as Good business. Efficiency. Sustainability. The workshop’s topics selection, promotion and paper’ selection was led and endorsed by WPC international group of experts and completed by the following technical committee of the event:

WPC EXPERT WORKSHOP BUCHAREST 2019, October 21st – 22nd TECHNICAL COMMITTEE

Honorary Chairperson of Advisory Technical Committee Mr. Tor Fjaeran President, World Petroleum Council (WPC)

Chair: Mr. Leopold Bräuer, Senior VP New Technologies OMV, Austria Co - Chair: Dr. Pandele Neculae, CPC WPC Romania Representative

Members Mr. Corneliu Condrea, President WPC RNC, Romania

Mr. Anatoly B. Zolotukhin VP WPC, Russia Mr. Liu Yuzhang CPC WPC, China Mr. M. A. Emadi, CPC WPC Iran

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Mr. Iulian Nestor, Professor, Dr. Dean Oil and Gas Engineering Faculty, UPG Mr. Mocanu Victor, Professor, Dr. Dean Geology and Geophysics Faculty, UB

Mr. Robert Balch, NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY, USA Mr. Iulian Popescu, Deputy Managing Partner Musat and Asociatii, Romania

Within excellent support of Ms. Sarah Ashmore, Senior Project Manager World Petroleum Council UK

- Objective of the event: Discussion and network with Expert Speakers and participants to discuss the following:

How to evaluate the remaining resources in mature fields; Using up-to-date methods and technologies in mature fields to maximise production and reduce costs; Re-development of mature fields using probabilistic modeling approaches for secondary and tertiary recovery methods;

CO2 Capture, Usage and Storage Projects; How to efficiently increase recovery factors taking the challenging profitability of mature fields into account. - Key Topics:

Resouces “resources in mature fields” Technology “technologies in mature fields ” Recovery “secondary and tertiary recovery” Challenges “CO2 Projects” Efficiency “profitability of mature fields”

C) KEY DISCUSSIONS AND OUTCOMES This global event was attended by representatives from over 15 countries

made of a 100 experts, researchers, academics, professors and WPC Young Professionals and students from the field of the energy and oil and gas business.

The WPC Expert workshop included one opening session followed by five plenary sessions featuring more than 35 technical presentations and interactive Q&A, one poster session followed by a closing session with remarks for the next 23rd World Petroleum Congress due in Houston in 2020 (now 2021).

The topic of the workshop: HC Increasing Recovery Efficiency in the Mature Fields. Methods and Technology for Cooperation has enjoyed a comprehensive approach from the research to the successful technological applications, from the approach of the CO2 issue to the climatic changes, from education to the economic efficiency, legislative framework, all aimed at increasing the efficiency of hydrocarbon recovery.

H.E. Emil Constantinescu, President of Romania between 1996 - 2000 “In the field of energy resources, there is a pressing need both for an encompassing perspective that is adequately capable of harmonizing global, national and local interests, and that provides fair arbitration between corporations and citizens’ interests… The Knowledge Society does not diminish the importance of mineral resources, but rather adds the new challenge of their intelligent incorporation into a sustainable vision for the future.”

Mr. Tor Fjaeran, President WPC, Norway: “The selected theme is an

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important topic to the entire oil and gas industry. Resource owners, usually being the governments, are focused on an optimal and cost-efficient use of the country’s natural resources. In this context, the improvement in the efficiency of hydrocarbon recovery in mature deposits is vital.

Large volumes can often not be produced with initial field development plans and technology. Typically, half of these call for enhanced oil recovery techniques. Testing, qualifying and applying new improved recovery methods within a reasonable time is important if substantial oil volumes are not to be lost. We must also remember that in addition to the technical EOR potential, financial, environmental and operational conditions have to be taken into consideration when making the actual investment decision.

Implementing IOR & EOR adds a lot of value without enormous investments. At present, many field developers initially invest in this so they have the option to further improve the recovery in the field’s life. This being for example water and/or gas injection, 4D seismic and permanent reservoir monitoring. With today’s focus on climate change mitigation tertiary recovery methods, like liquid CO2 injection, have also received increased attention as a way to reduce CO2 emissions.

During the Expert Workshop global experts, discussed more about alternative technologies and different field examples – all being fundamental for the maximization of the value added by the mature fields.

This is an area of cooperation rather than competition, between companies, research institutions and technology suppliers – and includes financial backing from government research budgets.”

Acad. Nicolae Anastasiu, Professor Emeritus with the Romanian Academy: “The subject of revitalizing heavily exploited, mature deposits that have been left with increasingly shrinking available reserves is of notable significance and has caught the eye of the oil and natural gas producing countries. The concept of secondary and tertiary recovery has evolved, revitalization techniques involving horizontal and multi-drain drills for mature deposits have improved and spending has been reduced. These investigations will have two immediate effects: exploitation of additional reserves of active probes and an increase in reserves for each oilfield. It is time for us to pay more attention to such approaches, and this conference is proof of the global interest in these issues.

Continuing the tradition that has made us stand out in the oil and gas industry and with the hope that Romania will pay heed to the outcomes of this conference, the Romanian Academy gives its full support and encouragement to this ambitious project.”

Mr. Anatoly B Zolotukhin, Professor Gubkin University, Russia, VP WPC: “This WPC Expert workshop organized by the Romanian and Iranian National Committees of the World Petroleum Council in Bucharest is of high importance for the oil producing countries.

Implementation of Enhanced and Improved Oil Recovery methods (EOR / IOR technologies) enable to almost double the recovery from many mature fields and increase the oil recovery factor to 45-60%. The world - class experts representing the industry and academia discussed the present status, new challenges and future prospects of implementation of conventional and innovative technologies

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based on EOR / IOR.” Mr. Liu Yuzhang, Director of Senior Consultants Office, RIPED, CNPC, China,

CPC WPC: ”Mature oilfields are still the major contributors to world oil supply. In addition, they are of even greater importance for National Oil Companies. In China, over 80% of oil production is from brown fields. Averagely, the water cut is over 90% with a recovery factor 30-45%.

Waterflooding is the dominant methodology in developing mature oilfields, and it could have higher oil recovery. Studies showed that waterflooding is more effective in washing oil than we learned from laboratory and books. Well coring analysis from Daqiing indicated that vertically, some parts of the core is washed white (So ≈0) while 1/3 of the core is still untouched and remains black (So≈Soi). In those severe heterogeneous and less vigorously developed oil fields, important amounts of oil are left behind and the use of Enhanced Waterflooding has a great potential. In the presentation, proven techniques and innovative methodologies such as “Logging While Injection”, “Pre-gelled Polymer Beads” and “Cast Effective Short Radius Side Track” will be introduced for rejuvenating the brown oil fields.”

Mr. Iulian Popescu, Deputy Managing Partner Musat and Asociatii, Romania presented the “Legislative Framework on CO2 Capture and Storage paper, including the European Union legislative framework regarding the Implementation of the CCS Directive within the European Union, the national legislative framework with Demonstration projects which qualify for European financing - Getica CCS project and Future perspectives in Romania with a very important conclusion: Romania holds a very good geological CO2 storage potential in oil and gas fields and saline aquifers.

Musat & Asociatii Energy Law team is permanently connected to these trends, being involved together with our clients in the most important flows on the energy market.

As such, we believe the market will witness in the following period possible significant changes, anticipating the apparition of new key investments in Romania and the adjoining regions, both from the EU and overseas investors, regarding nuclear and renewable general capacities.”

Dr. Mohammad A Emadi, EVP Upstream, Pasargad Energy Development Co, Iran, CPC WPC: ”The Global View of Oil and Gas Industry Trends and Challenges paper disclosed the Major global developments and trends affecting the energy sector, such as: Economic Developments, Politics, Rise of Shale Sources, Rise of Renewables, Industry Uncertainties, Technology Push, Climate Actions, Price Fluctuations, all of them in the dynamic interactions to be taken into consideration for petroleum business.”

Mr.Corneliu Condrea, Chairman of Romanian National Committee for the World Petroleum Council: “Increasing the final recovery factor to over 50% is a challenge for both, established experts in the oil world and especially for young specialists for whom "the value does not wait for the years to be measured". In Bucharest, on the occasion of the WPC Expert Workshop 2019, the theme of the event brought to our attention a challenging reality: will the tandem mature deposits-innovative technologies face the decarbonization?

In a world of globalization, the solution will not be the same, singular and

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inflexible, but it will be specifically identified for the geographical-climatic particularities of the area, without excluding the classic-innovative cooperation in the application of the technologies of extraction of hydrocarbons with those of energy production, with minimal effects of Earth pollution.

We hope that "WPC Expert Workshop Bucharest 2019" will be the start of a series of meetings with debates on challenging topics, current issues and perspectives in the field of hydrocarbons.”

Conclusion: on the one hand, the application of advanced technologies in the field of increasing the efficiency of the recovery in the mature areas represents a huge potential for worldwide growth of the production of oil and gas by 2050, thus ensuring the doubling of recoveries; on the other hand, it would provide an increasing support for young professionals in the field of knowledge and practice for them to successfully overcome the current and future challenges of the petroleum business.

We note that a few MoU were signed during this event between universities and petroleum companies for potential cooperation starting with the WPC workshop. WPC Expert Workshop Bucharest 2019.

Dr. Pandele NECULAE Co – Chair Technical Committee Congress Programme Committee World Petroleum Council

D) CONTACTS

LOCATION & CONTACT

Iulian Popescu, Deputy Managing Partner Adriana Firoiu Communications & Marketing Specialist MUSAT & ASOCIATII 43 Aviatorilor Blvd., 1st District, Code 011853, Bucharest, ROMANIA Tel: (40-21) 202.59.00 / (40-21) 202.59.28 Fax: (40-21) 223.39.57 / (40-21) 223.04.95 E-mail: [email protected] ; Website: www.musat.ro

REGISTRATION WITH CONFIRMATION Contact WPC Secretariat at [email protected] [email protected] ; [email protected] ;

[email protected] Mo: 0040 723 234 295 Mo: 0040 752 081 360

The completed programme including the speakers and attendees there are attached

E) SUPPORTING DOCUMENTS AND PRESENTATIONS All presentations are available: http://world-petroleum.ro/

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OPENING CEREMONY MODERATOR MR. CORNELIU CONDREA, PRESIDENT RNC WPC

TOP LEVEL PLENARY: GLOBAL OIL AND GAS BUSINESS

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MODERATOR MR. PANDELE NECULAE, CPC WPC ROMANIA REPRESENTATIVE

PLENARY 1 SECONDARY AND TERTIARY RECOVERY CHAIR MR. ANATOLY B. ZOLOTUKHIN VP WPC, RUSSIA

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PLENARY 2 SECONDARY AND TERTIARY RECOVERY

CHAIR MR. LIU YUZHANG CPC WPC, CHINA

PLENARY 3 CO2 CAPTURE, USAGE AND STORAGE, ENVIRONMENT CHAIR MR. IULIAN POPESCU, DEPUTY MANAGING PARTNER MUSAT AND ASOCIATII, RO

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PLENARY 4 METHODS AND TECHNOLOGY FOR COOPERATION CHAIR MR. MOHAMMAD A. EMADI, CPC WPC IRAN

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POSTER SESSION CONFERENCE HALL CHAIR MR. IULIAN ION, YP WPC OIL AND GAS UNIVERSITY PLOIESTI

INTERACTIVE CLOSING PANEL MODERATOR MR. TOR FJAERAN, PRESIDENT WPC, NORWAY

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