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JANUARY 2014 JOURNAL OF PETROLEUM TECHNOLOGY www.spe.org/jpt
EOR PERFORMANCE
AND MODELING
MATURE FIELDS AND
WELL REVITALIZATION
WELL INTEGRITY
DECOMMISSIONING
AND ABANDONMENT
ROBOTICS
FOR SUBSEA
SPE Technical Directors 2014 Outlook
Better Oshore Risk Analysis
The Industrys Technical Skills Gap
FEATURES
Jan14_JPT_Cover.indd 1 12/17/13 2:44 PM
Petrolink_IFC_jpt.indd 1 12/11/13 11:14 AM
6 Performance Indices
10 Regional Update
12 Company News
14 Presidents Column
18 Comments
24 Technology Applications
30 Technology Update
38 Young Technology Showcase
112 SPE News
113 People
115 Professional Services
119 Advertisers Index
120 SPE Events
Cover: Lockheed Martins first
autonomous underwater vehicle
designedfor the oil and gas industry,
theMarlin Mk1, is deployed for inspection
operations of a fixed leg platform in the
US Gulf of Mexico. Photo courtesy of
Lockheed Martin.
20 Guest editorial reducinG uncertainty
to ensure Future asset PerFormance
With the shift of offshore developments to harsher environments and
deeper water, the traditional method of estimating expected availability
and production performance figures, using extrapolated data from
previous experience, is increasingly insufficient.
44 a lonG-term View From multiPle anGles
SPEs technical directors think the industry needs multidisciplinary,
data-driven ways to adapt to what is ahead, focus on what is critical for
decision making, and take a long view as another generation takes over.
50 robotic roustabouts For tomorrows
subsea Fields
Robotic submarines, capable of operating by themselves thousands
of feet under water for months and perhaps years at a time, are under
development to become the vanguard of tomorrows subsea oil and
gasfields.
56 Kuwait unVeils uPstream oPPortunities
The inaugural SPE Kuwait Oil and Gas Show and Conference in Kuwait
attracted more than 3,000 delegates representing major oil and gas
companies from all over the world.
60 talent & technoloGy taKinG a balanced
aPProach to the technical sKills GaP
The industry continues to face a shortage of skilled workers with 10 to
20 years of experience, which affects staffing for midlevel management
jobs and, subsequently, senior level management positions.
An Official Publication of the Society of Petroleum Engineers. Printed in US. Copyright 2014, Society of Petroleum Engineers.
Volume 66 Number 1
ContentsJan14.indd 1 12/17/13 2:40 PM
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TECHNOLOGY
ThecompleteSPEtechnicalpapersfeaturedinthisissueareavailable
freetoSPEmembersfortwomonthsatwww.spe.org/jpt.
62 EORPerformanceandModeling
Omer Gurpinar, SPE, Technical Director, Schlumberger
63 Foam Simulation Faces Several Numerical Challenges
66 UK Field Benefits From Reduced-Salinity Enhanced-Oil-Recovery
Implementation
69 Simulation of Flow-Control Devices With Feedback Control for
Thermal Operations
73 Multiscale Simulation of WAG Flooding in Naturally Fractured
Reservoirs
76 MatureFieldsandWellRevitalization
Jesse Lee, SPE, Chemistry Technology Manager, Schlumberger
77 Channel Fracturing Applied in Mature Wells in Western Siberia
82 Mature-Field Subsurface Integrity: Holistic Diagnostic Approach
inMalaysia
86 Optimum Development in Mature Fields: Sanga-Sanga Assets,
Indonesia
90 WellIntegrity
Otto Luiz Alcantara Santos, SPE, Coordinator, Petrobras
91 Uncertainty Evaluation of Wellbore-Stability-Model Predictions
94 Zonal Isolation Through Gas Hydrates Offshore Tanzania
98 Perforating Through Casing Strings to Remediate Annulus Gas Leak
102 DecommissioningandAbandonment
Win Thornton, SPE, Vice President of Decommissioning, BP
103 Modeling Options for Drill-Cuttings Management
106 Environmental Risk Arising From Well-Construction Failure
109 Digital-Slickline Capability on Plug-and-Abandonment
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Failing to properly understand the true
capabilities of lifting equipment such as
forklifts and cranes can easily lead to
disaster. To help carry out proper mechanical
lifts or hoists, always perform a Job Safety
Analysis (JSA), inspect the forklift or crane
in advance, and check the equipments
certication. Also, make sure the equipment
is properly seated and secured. Follow all
approved hoisting procedures and always
know the loads weight and length, as well
as how the position of the equipment affects
the load limits of the equipment. Allow
only certied employees to operate lifting
equipment. And, make sure no one is ever
under a suspended load as a lift in progress.
At Halliburton, solving customer
challenges is second only to keeping
everyone safe and healthy. You can
nd more safety tips at
www.halliburton.com/HSE
HSE
TIP No. 25
2013 Halliburton. All rights reserved.
DID YOU KNOW
EVEN THOUGH THE
EQUIPMENT DOES THE
HEAVY LIFTING, YOURE
STILL RESPONSIBLE
FOR DOING IT SAFELY.
SPE PUBLICATIONS: SPE is not responsible for any
statement made or opinions expressed in its publications.
EDITORIAL POLICY: SPE encourages open and objective
discussion of technical and professional subjects per-
tinent to the interests of the Society in its publications.
Society publications shall contain no judgmental remarks
or opinions as to the technical competence, personal
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Canada Publications Agreement #40612608.
Georgeann Bilich, Publisher
John Donnelly, Editor
Alex Asfar, Senior Manager Publishing Services
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JPT JANUARY 2014
PERFORMANCE INDICES
WORLD CRUDE OIL PRODUCTION
+
THOUSAND BOPD
OPEC 2013 FEB MAR APR MAY JUN JUL
Algeria 1490 1490 1510 1510 1510 1520
Angola 1790 1840 1855 1890 1770 1790
Ecuador 506 504 516 522 524 531
Iran 3200 3200 3200 3200 3200 3200
Iraq 3075 3075 3175 3075 3100 3100
Kuwait* 2650 2650 2650 2650 2650 2650
Libya 1400 1350 1450 1420 1130 1000
Nigeria 2320 2420 2400 2420 2270 2400
Qatar 1200 1200 1200 1200 1200 1200
Saudi Arabia* 9140 9140 9440 9640 9840 10040
UAE 2820 2820 2820 2820 2820 2820
Venezuela 2300 2300 2300 2300 2300 2300
TOTAL 31891 31989 32516 32647 32314 32551
THOUSAND BOPD
NON-OPEC 2013 FEB MAR APR MAY JUN JUL
Argentina 534 536 532 541 539 545
Australia 309 328 344 338 356 361
Azerbaijan 903 870 860 870 905 890
Brazil 2017 1853 1923 1993 2101 1974
Canada 3259 3419 3237 3026 3146 3586
China 4146 4164 4174 4174 4245 4043
Colombia 997 1012 1007 1013 974 1020
Denmark 197 193 183 181 169 177
Egypt 547 545 543 541 540 538
Eq. Guinea 303 303 303 303 303 305
Gabon 239 239 238 238 237 245
India 767 777 773 776 778 766
Indonesia 853 866 860 856 834 811
Kazakhstan 1583 1588 1580 1458 1555 1586
Malaysia 552 536 506 511 522 491
Mexico 2595 2555 2557 2548 2559 2522
Norway 1502 1498 1567 1563 1386 1648
Oman 944 934 910 920 948 931
Russia 9990 9995 10002 10018 9955 10052
Sudan 106 112 115 248 336 301
Syria 133 91 71 71 71 71
UK 823 803 812 857 774 787
USA 7133 7160 7335 7323 7270 7487
Vietnam 355 337 359 348 343 318
Yemen 162 140 118 118 118 118
Other 2461 2442 2428 2416 2436 2408
Total 43410 43295 43337 43249 43399 43980
Total World 75301 75284 75853 75896 75713 76531
SPE Bookstore
2013 SPE Membership
Salary Survey Report
Each year, the Society of Petroleum
Engineers (SPE) surveys its professional
members to benchmark global compensation
trends in the industry. The 2013 SPE
Membership Salary Survey Report is a
sample of self-reported information from
petroleum industry professionals with
responses from a sample of industry
professionals worldwide.
This years participants are based in
100 diferent countries. Their employers are
based in 105 countries, and 46 U.S. states.
The 2013 SPE Membership Salary Survey
Report includes a 45-page Highlight Report
and a Microsoft Excel worksheet containing
the data collected.
Interested in a summary? You have
the option of purchasing the Highlight
Report alone.
Contents
Job Categories and Total Compensation
Job Function and Work Region
The Impact of Gender
Experience Level and Compensation
Compensation by Age
Compensation by Citizenship
Visit our online bookstore at
www.spe.org/go/books.
NEW TITLE
SPEBKS_THV_13MD_Salary_v3.indd 1 12/12/13 1:45 PM
Perf_Indices_Jan.indd 6 12/17/13 2:18 PM
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JPT JANUARY 2014
PERFORMANCEINDICES
HENRYHUBGULFCOASTNATURALGASSPOTPRICE*
WORLDROTARYRIGCOUNT
REGION
2013
MAY JUN JUL AUG SEP OCT NOV
US 1767 1761 1766 1781 1760 1744 1756
Canada 128 183 291 368 387 378 385
LatinAmerica 424 423 418 399 404 420 411
Europe 124 138 139 143 139 136 137
MiddleEast 362 389 379 362 379 383 388
Africa 124 133 128 125 119 131 135
AsiaPacific 249 250 241 238 243 245 240
TOTAL 3209 3178 3277 3362 3416 3431 3437
WORLDCRUDEOILPRICES(USD/bbl)
109.06 86.53 109.49 87.86 112.96 94.76 116.02 95.31

2012 NOV DEC 2013 JAN FEB
108.47 92.94 102.25 92.02 102.56 94.51 102.92 95.77
MAR APR MAY JUN
107.93 104.67 111.28 106.57 111.60 106.29 109.08 100.54
JUL AUG SEP OCT
Brent WTI
WORLDOILSUPPLYANDDEMAND
1
MILLIONBOPD 2012 2013
Quarter 4th 1st 2nd 3rd
SUPPLY 89.57 89.06 90.39 90.52
DEMAND 90.31 89.35 89.93 90.82
INDICES KEY

+ Figures do not include NGLs and oil from nonconventional sources.
* Includes approximately one-half of Neutral Zone production.
1 Includes crude oil, lease condensates, natural gas plant liquids, other hydrocarbons for refinery feedstocks, refinery
gains, alcohol, and liquids produced from nonconventional sources.
Source: Baker Hughes.
* The US Dept. of Energy/Energy Information Administration discontinued its reporting of US Natural Gas Wellhead
Prices, replacing them with Henry Hub Gulf Coast Natural Gas Spot Prices.
Source: US Dept. of Energy/Energy Information Admin.
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Perf_Indices_Jan.indd 8 12/17/13 2:18 PM

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REGIONAL UPDATE
10 JPT JANUARY 2014
AFRICA
Oil was discovered at the Ekales-1
wildcat well located in Block 13T in northern
Kenya. The well has a potential net pay of
between 197 and 322 ft in the Auwerwer
and Upper Lokone sandstone formations.
Tullow (50%) operates 13T with partner
Africa Oil (50%).
The Mzia-3 appraisal well in Block 1 off
Tanzania encountered a combined total of
183 ft of net pay in the Lower and Middle
sands and confirmed reservoir quality in
line with that seen in the Mzia-1 and Mzia-2
wells. BG Group (60%) operates Block 1
with partner Ophir (40%).
ASIA
The Luba-1 offshore well on Brunei Block L
was spudded. The well will evaluate the
hydrocarbon potential of the Triple Junction
structure. Serinus has a 90% interest in Block
L, through indirect wholly owned subsidiaries
Kulczyk Oil Brunei (40%) and AED SEA
(operator, 50%). A private Brunei company
owns the remaining 10% interest.
Drilling began on the Malida-1 exploration
well in Block G1/48 in the northern part of
the Gulf of Thailand. The well will test for
the development of the main Miocene-age
interval of the Manora oil-bearing sands in an
independent fault-dependent structure, east
of the Manora field. The well will be drilled to
a measured depth of approximately 2670 m.
Mubadala Petroleum (60%) operates, with
partners Tap Oil (30%) and Northern Gulf
Petroleum (10%).
Heavy oil was discovered at the Luda
5-2 North discovery wells in the Liaodong
Bay area of Chinas Bohai Gulf. The two
wells, Luda 5-2N-2 and LD 5-2N-4, were
both drilled to a depth of approximately
1140 m and encountered oil pay zones
with total thickness of 394 and 279 ft,
respectively. China National Offshore Oil
Corporation (100%) is the operator.
AUSTRALIA
OMV completed its Manaia-2/2A
appraisal well within Petroleum Mining
Permit (PMP) 38160 in the Maari field
located 50 miles off the coast of South
Taranaki District, New Zealand. The well,
drilled to a measured depth of 2891 m,
reached its target in the North Cape
formation and intersected oil-bearing sands
in the Moki and Mangahewa formations.
OMV New Zealand (69%) operates
PMP 38160 with partners Todd Maari
(16%), Horizon Oil International (10%),
and Cue Taranaki (5%).
Drilling began on the Matuku-1 well
in New Zealands Petroleum Exploration
Permit (PEP) 51906 in the offshore Taranaki
basin. The vertical well will be drilled to a
potential total depth of 4750 m. OMV New
Zealand (65%) operates PEP 51906 with
partners Octanex NZ (22.5%) and New
Zealand Oil & Gas (12.5%).
EUROPE
Oil was discovered at the 6407/8-6
exploration well and the 6407/8-6A
sidetrack well in the Snilehorn prospect in
the Norwegian Sea northeast of the Njord
field. Estimated volume of the discovery
ranges between 55 and 100 million bbl
of recoverable oil. Statoil (35%) is the
operator, with partners GDF Suez E&P
Norge (20%), E.On E&P Norge (17.5%),
Core Energy (17.5%), Faroe Petroleum
Norge (7.5%), and VNG Norge (2.5%).
Drilling began on the 16/5-5 appraisal
well on Norwegian production license (PL)
410. The well will target the Luno II South
structure. The reservoir is expected to
be of Jurassic/Triassic age. Planned total
depth is 2374 m below mean sea level.
Lundin Norway (70%) operates PL 410
with partner Statoil (30%).
Hydrocarbons were confirmed at
Statoils North Sea Askja West prospect
exploration Well 31/11-9S in Norwegian
PL 272. Statoil (50%) operates PL 272 with
partners Det norske (25%) and Svenska
Petroleum (25%).
MIDDLE EAST
Oil was discovered at the Mirawa-1
exploratory well in the Harir Block in
the Kurdistan Region of Iraq. The well,
drilled to a total depth of 4267 m,
found oil and natural gas shows over an
extensive gross interval of both Jurassic
and Triassic reservoirs. Flow rates from
multiple Jurassic zones totaled more than
11,000 BOPD. Multiple nonassociated
gas zones in the Triassic flowed at rates
totaling around 72 MMcf/D, together with
associated condensate from one zone at a
rate of 1,700 BOEPD. Marathon Oil (45%)
operates, with partners Total (35%) and the
Kurdistan Regional Government (20%).
The Salsala-1 exploration well in Block
32 onshore Yemen flowed naturally at an
initial rate of 5,900 B/D of 36API crude
oil. The well, directionally drilled to a total
depth of 4147 m, encountered oil shows in
the Shuqra formation. DNO International
(38.95%) operates Block 32 with partners
Ansan Wikfs (42.93%), TransGlobe Energy
(13.12%), and Yemen Oil & Gas (5%).
NORTH AMERICA
The US Bureau of Ocean Energy
Management will hold Gulf of Mexico
Central Planning Area (CPA) oil and gas
lease sale 231 in New Orleans on 19 March
2014. The sale is the second CPA lease sale
and the fourth overall sale under the 2012
2017 Outer Continental Shelf Oil and Natural
Gas Leasing Program. The auction will
offer 39 million acres offshore Louisiana,
Mississippi, and Alabama, and include all
available unleased areas in the CPA.
SOUTH AMERICA
Production began at the Papa Terra
heavy-oil field development within Block
BC-20 of the southern Campos basin, using
platform P-63, which is connected to the
PPT-12 well. The floating production, storage,
and offloading platform is anchored at a
water depth of 1200 m and has the capacity
to process 140,000 BOPD, compress
1 MMcf/D of gas, and inject 340,000 B/D of
water. Petrleo Brasileiro (62.5%) operates
Papa Terra with partner Chevron (37.5%).
A third 3D seismic survey began on
Falkland Oil and Gass license areas to the
south and east of the Falkland Islands (Islas
Malvinas) in the south Atlantic. It is the final
survey prior to commencement of drilling
operations in late 2014. Interpretation
results from the survey, operated by Noble
Energy, should be available by the end of
the first quarter 2014.
A 396-m column of 28API oil was
confirmed at Petrobras 3-BRSA-1184-RJS
(3-RJS-723) well, informally known as
Franco Leste, in the Santos basin presalt
Franco area 124 miles southeast of Rio
de Janeiro, Brazil. Total depth of the well
was 5900 m in water depth of 2011 m.
Petrobras (100%) is the operator. JPT
RegionalUpdateJan.indd 10 12/17/13 2:15 PM
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COMPANY NEWS
12 JPT JANUARY 2014
MERGERS AND ACQUISITIONS
Compania Espanola de Petroleos
entered into a definitive merger agreement
to acquire Coastal Energy for an aggregate
value of approximately USD 2.2 billion. The
transaction is expected to close in the first
quarter of 2014.
Total, with partners Anadarko and
Canadian Natural Resources International
(CNR), will spend up to USD 300 million
during 2014 to drill exploration wells on three
ultradeepwater offshore blocks (514, 515, and
516) in Ivory Coast waters. Total owns a 54%
interest in 514, with CNR (36%) and Petroci
(10%). Total and Anadarko each control 45%
of 515 and 516, with Petroci (10%).
Eni signed an agreement with
Quicksilver Resources to jointly evaluate,
explore, and develop potential shale oil
resources in 52,500 gross acres held
by Quicksilver in the Leon Valley area,
Pecos County, Texas. The agreement calls
for an initial three-phase program that
includes drilling up to five exploration wells
and acquisition of a 3D seismic survey,
both aimed at determining the areas
hydrocarbon potential and a subsequent
development plan. Eni will pay Quicksilver
up to USD 52 million to cover drilling,
completion, and seismic survey costs, while
the two companies will equally share any
future expenditure.
Heritage Oil entered into a joint venture
with Bayelsa Oil Company, owned by
Nigerias Bayelsa State government, to
establish an oil company called Petrobay
Energy. The new company will look to
acquire production, development, and
exploration assets from international oil
companies operating in Nigeria. Heritage
will own a 45% equity interest.
Ophir Energy will sell a 20% interest
in Blocks 1, 3, and 4 in the Ruvuma
and Mafia Deep basins area offshore
Tanzania to Pavilion Energy, a Temasek
portfolio company, for USD 1.3 billion. The
transaction is expected to be completed in
the first quarter of 2014.
Seadrill subsidiary Seadrill Jack-up
Holding agreed to pay USD 235 million
for 100% of the shares and certain
intercompany obligations of Prospector
Offshore Drilling subsidiary Prospector Rig
3 Owning Company (PR3OC). Prospector
will receive a total of USD 55.2 million
from Seadrill. The transaction includes
PR3OCs yard construction contract with
Dalian Shipbuilding Industry Offshore for
the new-build, high-specification jack-up
rig Prospector 3. The rig, scheduled to be
delivered in first-quarter 2014, has a water
depth capacity of 400 ft and a drilling
depth capacity of 35,000 ft.
Devon Energy will buy closely held
GeoSouthern Energys assets in the
Eagle Ford shale play in south Texas
for USD 6 billion. The assets include
current production of 53,000 BOE/D
and82,000net acres.
COMPANY MOVES
Schlumberger announced the official
opening of the Schlumberger Reservoir
Laboratory (SRL) in Brisbane, Australia.
The 10,000-ft
2
facility is the latest addition
to the global network of SRLs, providing
core measurement and analysis services
for companies with unconventional and
conventional oil and gas assets. Laboratory
personnel will work closely with the
Queensland University of Technology.
Construction began on a 30-story,
Class AA office tower located in Houston,
Texas, to anchor a new headquarters
campus for BHP Billitons global petroleum
business. The 600,000-ft
2
office building,
constructed to LEED-Gold standards
and expected to be completed in 2016,
will be situated on a 2.72-acre tract
beside BHP Billitons current petroleum
businessheadquarters.
CONTRACTS
Benthic was awarded a contract by
Neptune Marine Services for an offshore
geotechnical investigation to collect seabed
geotechnical data off the north coast of
Western Australia. Benthics portable
remotely operated drill will perform
rotary drilling and piston coring, and also
perform in-situ testing using a piezo-cone
penetrometer to identify the soil conditions
and geotechnical properties of the soil for
the placement of a mobile jackup rig.
KS Drilling, an 80%-owned subsidiary of
KS Energy, with its joint operation partner,
Pertamina Drilling Services Indonesia,
received a 1-year, USD-41-million contract
extension for the jackup KS Java Star. The
KS Java Star is expected to continue drilling
in the West Madura oil field offshore Java
until January 2015.
Transocean entered into a 3-year
contract with Royal Dutch Shell for work
off the coast of Alaska starting July
2014. Transoceans Polar Pioneer harsh
environment semisubmersible drilling unit
will earn a rate of USD 620,000 per day in
the summer season from July to October
and then USD 589,000 per day the rest
ofthe year.
Ukraine signed a shale gas production-
sharing agreement, to extend for 50
years and whose potential value is
USD10 billion, with Chevron to develop
the countrys western Olesska field. The
agreement foresees an initial investment of
USD350million by Chevron for exploratory
work over 2 to 3 years to establish the
commercial viability of shale reserves in
the2,000-sq-mile Olesska.
Adyard Abu Dhabi, a subsidiary of
Interserve, was awarded a USD-17-million
contract by Dana Gas for the fabrication
of an offshore platform for the Zora Field
Development Project, which spans the
territorial waters of Sharjah and Ajman,
United Arab Emirates. The platform will help
extract reserves from the Zora field through
an offshore facility and transport the
reserves through a 21.7-mile subsea pipeline
to an onshore gas-processing facility.
Mitsui Ocean Development &
Engineering Company and Schahin were
awarded a supply, charter, and operations
contract for a floating production, storage,
and offloading (FPSO) vessel by Petrobras,
on behalf of Consortium BM-S-9, for the
BM-S-9 block (Carioca area) in the presalt
region of the Santos basin, Brazil. The FPSO
vessel, with expected delivery by June 2016,
will be capable of processing 100,000B/D
of crude oil, 177 MMscf/D of gas, and
120,000 B/D of water injection, with the
ability to store 1.6 million bbl of crude oil.
Lamprell completed construction of
the jackup rig Jindal Star for Jindal Pipes
to be used offshore India. The Jindal
Star, weighing 10,500 metric tons, is a
LeTourneau Super 116E rig with a self-
elevating 477-ft leg design.JPT
CompanyNewsJan.indd 12 12/17/13 2:36 PM
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EMERGING FRONTIERS
14 JPT JANUARY 2014
Big Data!
Jeff Spath, 2014 SPE President
Big data, once only the concern of database geeks or a market-
ing technique among retailers, is now part of our mainstream
consciousness and vocabulary. Big data is having a profound
impact on the upstream E&P industry as well.
What is big data? According to a McKinsey Global Insti-
tute report, big data refers to datasets whose size is beyond
the ability of typical database software tools to capture, store,
manage, and analyze. I like this definition because it does not
require a dataset of any specific size. It allows datasets to increase as technology ad-
vances. This definition also varies to the extent that different industries have different
standards of database and analytic software tools.
To get a feel for just how big data has become, consider recent rates of data
growth. In 2012, disk drives worldwide added 7 exabytes (10
18
) of new data. Global
data volumes are projected to increase 40% per year, while global information tech-
nology (IT) spend will grow only 5%. Thirty billion pieces of content are shared on
Facebook each month. Or consider that Asia now leads the world in the generation and
storage of personal location data due simply to the number of mobile phonesan es-
timated 800 million in China alone.
How mainstream has big data become? Consider these examples of wide -
spreadusage:
High-speed supercomputers statistically analyze massive amounts of data,
enabling scientific breakthroughs such as the gene sequencing of individual
organisms and entire ecosystems.
Coaxing the Higgs boson into a nanosecond of existence required the global
distribution and analysis of roughly 200 petabytes of data.
Or, more familiar to most of us, retail organizations cleverly obtain our
behaviors, preferences, and product perceptions by monitoring our Facebook
and Twitter information.
The combination of massive amounts of data and sophisticated analytics is pro-
foundly affecting a spectrum of industries, and oil and gas is no exception.
Big Data in the Oil Field
The amount of data that our industry acquires, communicates, stores, and analyzes
is exploding exponentially. For example, the growth of land seismic acquisition is one
of the most data-intensive phases of our industry. Channel count has roughly doubled
every 3.5 years since 1970. Together with advances in the acquisition technology
which now measures vector information rather than scalarthe data acquired and
stored in a typical survey has grown from gigabytes to petabytes. Furthermore, the
growing popularity of permanently installed geophones for monitoring fluid fronts,
passive monitoring of carbon capture sequestration sites, and observing microseismic
events during hydraulic fracturing has driven an extraordinary and daunting growth
in seismic data of all forms.
SPE BOARD OF DIRECTORS
OFFICERS
2014 President
Jeff Spath, Schlumberger
2013 President
Egbert Imomoh, Afren
2015 President
Helge Hove Haldorsen, Statoil
Vice President Finance
Janeen Judah, Chevron
REGIONAL DIRECTORS
AFRICA
Anthony Ogunkoya,
TBFF Upstream Oil and Gas Consulting
CANADIAN
Darcy Spady, Sanjel Corporation
EASTERN NORTH AMERICA
Bob Garland, Universal Well Services
GULF COAST NORTH AMERICA
Bryant Mueller, Halliburton
MID-CONTINENT NORTH AMERICA
Michael Tunstall, Halliburton
MIDDLE EAST
Fareed Abdulla, Abu Dhabi Co. Onshore Oil Opn
NORTH SEA
Carlos Chalbaud, GDF Suez E&P UK
NORTHERN ASIA PACIFIC
Ron Morris, Roc Oil (Bohai)/Roc Oil (China)
ROCKY MOUNTAIN NORTH AMERICA
Mike Eberhard, Anadarko Petroleum Corporation
RUSSIA AND THE CASPIAN
Andrey Gladkov, Modeltech
SOUTH AMERICA AND CARIBBEAN
Nestor Saavedra, EcopetrolICP
SOUTH, CENTRAL, AND EAST EUROPE
Maurizio Rampoldi, Eni E&P
SOUTHERN ASIA PACIFIC
John Boardman, RISC
SOUTHWESTERN NORTH AMERICA
Peter Schrenkel, Vision Natural Resources
WESTERN NORTH AMERICA
Tom Walsh, Petrotechnical Resources of Alaska
TECHNICAL DIRECTORS
DRILLING AND COMPLETIONS
David Curry, Baker Hughes
HEALTH, SAFETY, SECURITY, ENVIRONMENT,
AND SOCIAL RESPONSIBILITY
Roland Moreau, ExxonMobil Upstream
Research Company
MANAGEMENT AND INFORMATION
Cindy Reece, ExxonMobil Annuitant
PRODUCTION AND OPERATIONS
Shauna Noonan, ConocoPhillips
PROJECTS, FACILITIES, AND CONSTRUCTION
Howard Duhon, Gibson Applied Tech PF&C
RESERVOIR DESCRIPTION AND DYNAMICS
Olivier Houz, KAPPA Engineering
AT-LARGE DIRECTORS
Liu Zhenwu, China National Petroleum Corporation
Mohammed Al-Qahtani, Saudi Aramco
To contact the SPE President, email president@spe.org.
Search the Groups Field for Society of PetroleumEngineers.
PresColumnJan.indd 14 12/18/13 7:11 AM
Mew_015_jpt.indd 1 12/17/12 1:13 PM
EMERGING FRONTIERS
16 JPT JANUARY 2014
As a consequence of this data explosion, technology con-
tinues to advance. The industry has developed significant im-
provements in survey design, data compression techniques,
auto-picking algorithms, and intelligent storage schemes. As
an aside, it is worth noting how much value is created by new
technologies that store and analyze what was once considered
noise, revealing even more detail within complex reservoirs.
On the production side of our business, a well-known ex-
ample of big data and associated analytics is the advent of the
smart field or digital oil field. Here, the carefully defined
combination of IT and data acquisition with intelligent pro-
duction engineering analyticsoften including artificial intel-
ligencehas generated a deluge in data. Examples range from
water/oil ratios along intelligent completions to measurements
of methane emissions during hydraulic fracture flowbacks.
To understand the often frustrating amounts of data in-
volved, consider the fact that for each well in a digital oil field
we now measure and storeoften using permanently installed
fiberdifferent flow rates for each phase, various pressures
and temperatures at the wellhead, as well as electrical submers-
ible pump parameters, environmental data, and power usage.
As a result, smart engineers now apply sophisticated algorithms
and powerful software tools to enhance decision making and re-
duce cycle time, and to optimize productivity, return on invest-
ment, and net present value, thus reducing the need for skilled
on-site personnel.
Big data combined with smart people and smart software is
proving to be very powerful.
Whats Next?
The rate and volume of growth in data generation and usage will
continue to increase in our industry over time.
In thinking about recent trends, it is apparent that the
value of taking many more measurements is increasing rapid-
ly. Take the drilling domain, for example. From high-telemetry
logging-while-drilling or measurement-while-drilling measure-
ments to the many parameters required for automated or as-
sisted drilling on the rig floor, the amount and the rate of drill-
ing data being acquired, stored, transmitted, and interpreted is
increasing dramatically every year. And as we are asked by reg-
ulators and the public to monitor our operations more closely,
big data will only get bigger.
In each case, growth in data alone is not useful. While gen-
erating insights from more data is always important, action-
ability is the hallmark of big data, through data analytics and
old-fashioned smart petroleum engineering. The next wave of
technology innovation in our industry and the next level of un-
derstanding our reservoirs will depend on our ability to inte-
grate diverse data, measurements, and domains. This implies,
of course, that our young professionals will require additional
skillsets to succeed.
SPE Activity in Big Data
With the growth in E&P applications of big data SPE has recog-
nized that members need to collaborate on these new issues and
to learn how to leverage the many opportunities provided. The
first SPE Intelligent Energy conference was held in 2001 and
since 2008 we have held seven conferences, 12 workshops, and
one forum, dealing with intelligent energy and digital oil fields.
A quick search in OnePetro shows more than 6,500 papers
on the subject. As part of the new SPE strategy to create life-
long learning and fast-track young professionals, the topic will
become more prevalent in all our meetings, whether it is the
main topic or the catalyst behind the next big discovery.
Each month, I post my JPT column topic on the SPE
LinkedIn group for comment and conversation. I invite you
all to join in this discussion and look forward to hearing
yourviewpoints.JPT
Reference
Manyika, J., Chui, M., Brown, B., et al. 2011. Big data: The
next frontier for innovation, competition, and productivity.
McKinsey Global Institute. http://www.mckinsey.com/insights/
business_technology/big_data_the_next_frontier_for_innovation
Tenure-Track Position
The Department of Chemical and Petroleum Engineering
in the Schulich School of Engineering at the University of
Calgary invites applications for a position with expertise in
the following areas:
Computational Thermodynamics,
and Energy & Environment Applications
Tenure-track Assistant Professor Position
The successful candidates will establish a strong research
program, supervise graduate students, teach a range of
undergraduate and graduate courses and attract external
funding to support research activities.
Applicants must possess a PhD in Chemical or Petroleum
Engineering, or related elds or be within 6 months of their
doctoral thesis defense and be eligible for registration as a
professional engineer with the Association of Professional
Engineers and Geoscientists of Alberta.
For full posting details, please visit:
http://schulich.ucalgary.ca/chemical/about/employment
The review of applications will begin February 15, 2014,
and continue until the position is lled.
All qualied candidates are encouraged to apply; however, Canadian citizens
and permanent residents of Canada will be given priority. The University of
Calgary respects, appreciates and encourages diversity.
PresColumnJan.indd 16 12/17/13 3:03 PM
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COMMENTS
18 JPT JANUARY 2014
2014 Outlook
John Donnelly, JPT Editor
Signs point to sustained strong oil prices this year, levels that
will continue to support upstream unconventional projects in
North America and elsewhere.
North Sea Brent and West Texas Intermediate (WTI) crude
oil, the worlds two key benchmark prices, averaged around
USD 108/bbl and USD 97/bbl, respectively, in 2013. And most
price forecasts for 2014, which began emerging from ana-
lysts and investment houses in the fourth quarter, predict similar price levels in the
new year. The wild card in that scenario, however, is the growth of non-OPEC sup-
ply and production levels from Libya and Iraq, which are difficult to anticipate. North
American supply is expected to continue its upward swing, and significant increases in
Kazakhstan are also forecast. Commercial production at Kashagan, Kazakhstans giant
Caspian Sea oil field, is expected to begin in the first half of the year. The field was dis-
covered in 2000, one of the largest finds in decades, but development has faced rising
costs and numerous delays.
US crude oil production is expected to rise again this year. The US Energy Infor-
mation Administration (EIA) says US crude output averaged 7.5 million BOPD in 2013
and will average 8.5 million BOPD in 2014. When US production hit 8 million BOPD in
November, it was the highest monthly output level since 1988. The EIA believes that
growth shows no signs of stopping, with US crude production forecast to come to a
high of 9.6 million BOPD in 2016, a level not seen since 1970.
The EIA sees non-OPEC production growing from 54.2 million BOPD in 2013 to
55.9 million BOPD this year. Most of the non-OPEC production growth will be from
US onshore tight oil formations and Canadian oil sands, with smaller increases from
Africa, South America, and Asia. That will continue to put pressure on OPEC, which
has watched its market share erode recently. OPEC countries are expected to produce
29.4 million BOPD this year, compared with an average of 30.3 million BOPD in 2013.
Oil prices are notoriously hard to predict. Some of the same analysts who fore-
casts strong prices this year predicted a sharp drop in oil prices in 2013, something
that never happened. Nevertheless, there seems to be a consensus that Brent and WTI
will remain near their current levels in the new year.
A survey of price forecasters published by Petroleum Intelligence Weekly in
December showed most analysts seeing Brent in a USD 100-110/bbl range for the
near year, and WTI at around USD 90-100/bbl. The survey of 10 analysts at consult-
ing groups and investment banks shows Brent crude averaging USD 106/bbl for 2014,
while the average for WTI is USD 97/bbl. Forecasters were optimistic that Libyan
output would recover after months of disruption, and that a strengthening global
economy would help absorb oil supply growth. JPT
EDITORIAL COMMITTEE
Syed AliChairperson, Technical Advisor,
Schlumberger
Francisco J. Alhanati, Director, Exploration
& Production, C-FER Technologies
William Bailey, Principal Reservoir Engineer,
Schlumberger
Ian G. Ball, Technical Director, Intecsea (UK) Ltd
Luciane Bonet, Senior Reservoir Engineer, Petrobras
America Inc.
Robert B. Carpenter, Sr. Advisor Cementing,
Chevron Corp.
Simon Chipperfield, Team Leader Central Gas Team/
Gas Exploitation, Eastern Australia Development,
Santos
Alex Crabtree, Senior Advisor, Hess Corporation
Jose C. Cunha, Drilling Manager, Ecopetrol America
Alexandre Emerick, Reservoir Engineer,
Petrobras Research Center
Niall Fleming, Leading Advisor Well Productivity
& Stimulation, Statoil
Ted Frankiewicz, Engineering Advisor, SPEC Services
Emmanuel Garland, Special Advisor to the
HSE Vice President, Total
Reid Grigg, Senior Engineer/Section Head, Gas
Flooding Processes and Flow Heterogeneities, New
Mexico Petroleum Recovery Research Center
Omer M. Gurpinar, Technical Director, Enhanced Oil
Recovery, Schlumberger
A.G. Guzman-Garcia, Engineer Advisor,
ExxonMobil (retired)
Robert Harrison, Global Business Leader,
Reserves & Asset Evaluation, Senergy
Delores J. Hinkle, Director, Corporate Reserves,
Marathon Oil (retired)
John Hudson, Senior Production Engineer Shell
Morten Iversen, Completion Team Leader, BG Group
Leonard Kalfayan, Global Production Engineering
Advisor, Hess Corporation
Tom Kelly, Systems Engineering, FMC Technologies
Gerd Kleemeyer, Head Integrated Geophysical
Services, Shell Global Solutions International BV
Jesse C. Lee, Chemistry Technology Manager,
Schlumberger
Casey McDonough, Drilling Engineer,
Chesapeake Energy
Cam Matthews, Director, New Technology Ventures,
C-FER Technologies
Badrul H Mohamed Jan, Lecturer/Researcher,
University of Malaya
Lee Morgenthaler, Principal Technical Expert,
Chemical Production Enhancement, Shell
Alvaro F. Negrao, Senior Drilling Advisor,
Woodside Energy (USA)
Shauna G. Noonan, Staff Production Engineer,
ConocoPhillips
Karen E. Olson, Completion Expert,
Southwestern Energy
Michael L. Payne, Senior Advisor, BP plc
Mauricio P. Rebelo, Technical Services Manager,
Petrobras America
Jon Ruszka, Drilling Manager, Baker Hughes
(Africa Region)
Martin Rylance, Senior Advisor and Engineering
Manager Fracturing & Stimulation,
GWO Completions Engineering
Jacques B. Salies, Drilling Manager,
Queiroz Galvo E&P
Otto L. Santos, Snior Consultor, Petrobras
Luigi A. Saputelli, Senior Production Modeling
Advisor, Hess Corporation
Sally A. Thomas, Principal Engineer, Production
Technology, ConocoPhillips
Win Thornton, Global Projects Organization, BP plc
Erik Vikane, Manager Petroleum Technology, Statoil
Xiuli Wang, Vice President and Chief Technology
Officer, XGas
Mike Weatherl, Drilling Advisor, Hess Norge AS
Rodney Wetzel, Team Lead, SandFace Completions,
Chevron ETC
Scott Wilson, Senior Vice President,
Ryder Scott Company
Jonathan Wylde, Global Head Technology,
Clariant Oil Services
Pat York, Global Director, Well Engineering & Project
Management, Weatherford International
To contact JPTs editor, email jdonnelly@spe.org.
CommentsJan.indd 18 12/17/13 2:29 PM
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20 JPT JANUARY 2014
GUEST EDITORIAL
Frank Ketelaars
is head of UK
Advisory Services
at DNV with overall
responsibility for
its advisory units in
London, Manchester,
and Aberdeen. He
began his career at Shell International
in 1989. Later, he worked for 10 years
for Jardine and Associates, specializing
in asset performance and availability
analysis covering upstream, midstream,
and downstream assets. Ketelaars
joined DNV as part of the companys
acquisition of Jardine in 2005, and has
worked as head of the DNV advisory unit
in London since 2008, responsible for
advisory activities covering safety, and
environmental and asset risk.
Over the past 5 to 10 years, there has been an increasing focus in the offshore oil and
gas industry on predicting and quantifying an assets expected production perfor-
mance. This performance risk has always been considered one of the key risk fac-
tors for an offshore development, in addition to subsurface, economic, safety, and
environmental risks. However, with the shift of offshore developments to harsh-
er environments and deeper water, the traditional method of estimating expected
availability and production performance figures, using extrapolated data from pre-
vious experience, is increasingly considered insufficient.
With increased investment required for some of the ambitious new offshore
developments (floating liquefied natural gas [FLNG], Arctic, and ultradeep develop-
ments), there is growing pressure to address any risk to the bottom line and under-
stand how the impact of changing environments and operating conditions will affect
economic return and expected revenue. As a result, most operators are now adopt-
ing more robust methodologies, such as using simulation technology tools, to evalu-
ate and predict expected performance.
Several key areas in the offshore industry illustrate where these new produc-
tion risk factors are especially relevant.
The subsea industry, in particular, continues to undergo rapid transformation
as it seeks to exploit untapped reserves. Subsea fields exploited since the late 1990s
in the North Sea, US Gulf of Mexico (GOM), and offshore Brazil are now considered
areas using proven technology and their performance is well understood. Howev-
er, pushing subsea developments into ultradeep locations does result in addition-
al performance risk. The 2010 Macondo accident in the GOM clearly showed that
the potential impact and escalation of subsea failures or incidents can be dramati-
cally increased because of high water depths. The ultradeep environment will affect
potential diagnostics options (Is there a leak? Where is it coming from?), and miti-
gation and repair options (What intervention activities are possible? Which vessels
are available at short notice?). A relatively minor failure, which could have been
addressed quickly by divers or remotely operated vehicles in shallower waters, can
potentially result in long well or even field outages. In addition, public scrutiny
concerning any potential environmental impact would make it likely that opera-
tors would now opt for conservative decisions (e.g., a shutdown) in the event of any
uncertainty about potential subsea leaks or failures.
The global drive to harsher environments, including West of Shetlands and
Arctic locations, introduces its own set of uncertainties and risk to asset perfor-
mance. Experience on fields such as the Schiehallion or West of Shetlands, has
shown that the impact of the harsh environment is significant, both in operation
of floating production facilities and access to the subsea wells. For example, any
well or subsea intervention during the winter season will result in significant addi-
tional intervention durations, increased operating expense, and long well outages.
For such locations, an analysis and understanding of expected metocean conditions
and their effect on operations is key to understanding production performance. For
Arctic developments, there is the additional problem of access to facilities during
Reducing Uncertainty to Ensure
Future Asset Performance
Frank Ketelaars, Head of UK Advisory Services, DNV
GuestEdJan.indd 20 12/17/13 2:28 PM
ENGINEERED STIMULATION DESIGN
IN THE PETREL PLATFORM
Mangrove
PetroChina Changqing beats previous-best
horizontal well production by more than 50%.
PetroChina Changqing used Mangrove* workow in the Petrel* E&P software platform to capture the
complexities of the Ordos basin. The engineered fracturing design helped improve reservoir-to-wellbore
connectivity while cutting fracturing uid consumption and pressure drawdown in half. Three months after the
wells were completed, sustained production rates were 50% higher than the previous-best ofset horizontal well.
Read the case study at
www.slb.com/Mangrove
Schlum_021_jpt.indd 1 12/11/13 2:53 PM
22 JPT JANUARY 2014
GUEST EDITORIAL
periods with ice and the impact of Arctic
conditions on maintenance activities.
Another major development for
the offshore industry in the past few
years is the option to consider FLNG
plants for large stranded gas reserves.
Many operators are currently consid-
ering FLNG options for some of their
biggest investments. The potential risk
of taking a complex LNG facility to an
offshore operating environment is sig-
nificant. There are uncertainties as to
how LNG-specific equipment will oper-
ate under offshore conditions and wave
motion, how reliable the LNG offloading
operations will be, and how major main-
tenance activities will be executed for a
complex facility with less access to per-
sonnel due to bedding constraints.
A recognition of the importance of
these risks is apparent by the decision of
some operators, during the design com-
petition for the Masela and Tupi fields,
to consider FLNG production risk a key
performance parameter when compar-
ing designs during the front-end engi-
neering design competition for FLNG
developments (in addition to compari-
son of overall capital expenditure and
safety risk).
A final area in which future produc-
tion performance risk is a major issue is
the aging facilities in mature offshore
provinces, such as the North Sea and
GOM, where lifetime extension projects
are being considered. For these facilities,
production is extended beyond origi-
nal design life and there will be future
downtime associated with additional
maintenance requirements, both pre-
ventive and corrective. In many cases,
and as an added risk factor, these facili-
ties will have changed ownership, intro-
ducing new operators and operations
personnel to the facility and potentially
losing some historical operational expe-
rience. These factors pose a tough chal-
lenge to maintaining strong production
performance, while minimizing operat-
ing costs, without jeopardizing the safe-
ty and integrity of the asset. For these
types of projects, a clear framework for
assessing future performance against
best-in-class performance and identify-
ing the potential main bad actors at an
early stage is essential.
The additional complexity in the
operation of offshore assets demands
more accurate and sophisticated tools
and methodologies for assessing poten-
tial performance. These methodologies,
combined with a thorough understand-
ing and qualification of the new technol-
ogies employed, will ensure that future
asset owners and investors can define
a better picture of future performance.
The developed performance models will
also provide a clear auditable frame-
work, clearly showing the links between
input data assumptions (on reliability,
operability, environmental conditions,
etc.) and bottom-line performance. In
addition, these models allow testing of
alternative scenarios to mitigate identi-
fied potential production loss. It is not
surprising that for many operators such
performance prediction tools are now
mandatory requirements as part of the
project decision gate processes.
By making potential risks more
transparent to all stakeholders, the con-
sistent implementation of better per-
formance risk analysis should assist the
industry in raising awareness of the crit-
ical improvements that are required to
push forward into new territory.JPT
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GuestEdJan.indd 22 12/18/13 7:10 AM
Horizontal Cemented Completions are our focus at Trican Completion Solutions.
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Trican_023_jpt.indd 1 12/16/13 8:55 AM
TECHNOLOGY APPLICATIONS
24 JPT JANUARY 2014
Polycrystalline-Diamond-
Compact Bit
Ulterra has introduced its line of FastBack
high-rate-of-penetration polycrystalline-
diamond-compact (PDC) bits. FastBack-
designed bits use a unique blade config-
uration that supports the cutters with
a smaller-than-usual profile that elimi-
nates wasted energy needed for pushing
larger blades, thereby focusing all energy
on the diamond cutting surfaces (Fig. 1).
This efficiency improvement resulted in a
56.8% drilling-speed increase in a Marcel-
lus well. The FastBacks new blade design
is made possible by advanced surface
coatings, which provide maximum ero-
sion control without sacrificing strength.
Additionally, the FastBacks smaller blade
configuration opens up the junk-slot area
for optimal hydraulics and enhanced cut-
tings evacuation.
For additional information, visit
www.ulterra.com.
Tagged Inhibitor
Operators are seeking ways to address
scale-inhibitor monitoring on- and off-
shore to better manage treatments.
Determining the minimum inhibitor con-
centration quickly and precisely is criti-
cal to effectively manage the required
shutdowns and scheduling for offshore
squeeze treatments. In response to this
need, Kemira has introduced its Kem-
Guard 2490 phosphorous-tagged inhibi-
tor and its KemGuard 2420 fluorescent-
tagged inhibitor, both of which can be
monitored quickly and accurately down
to single-ppm levels (Fig. 2). The tagged
inhibitors can be quantified in the pres-
ence of one another to monitor multiple
wells from a single production stream
at a collection platform or field battery.
The tags are manufactured into the poly-
mer structure so that both the tag and
the polymer stay together as the poly-
mer moves through the reservoir in the
case of squeeze jobs or through produc-
tion equipment for onshore treatments.
The tagged inhibitors have proved effec-
tive for inhibition of sulfate scales under
a wide range of oilfield brine conditions.
www.kemira.com.
Wireless Downhole
Testing System
Schlumberger has introduced the Quar-
tet downhole-reservoir-testing sys-
tem enabled by Muzic wireless telem-
etry, which provides data in real time
for validation so that critical informa-
tion is available to meet well-test objec-
tives. The Quartet system uses wireless
bidirectional communication to provide
downhole tool status and pressure and
temperature data, allowing test-design
modifications and test-data validation
while reservoir testing is taking place
(Fig. 3). The system also enhances test-
ing efficiency by enabling the isolation,
control, measurement, and sampling
of the reservoir in a single run. Field
tests using the Quartet system with wire-
less telemetry have been run in Egypt,
Indonesia, Qatar, Brazil, and Angola in
environments ranging from onshore
to deep water. A total of 22 reservoir
Chris Carpenter, JPT Technology Editor
Fig. 1Ulterras FastBack PDC bit. Fig. 2A test for residuals by use of Kemiras tagged inhibitors.
TechAppsJan.indd 24 12/17/13 2:33 PM
A
D
0
1
0
4
7
O
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ONESUB-127_Controls_JPT_1210.indd 1 12/10/13 5:49 PM OneSubsea_025_jpt.indd 1 12/11/13 9:58 AM
26 JPT JANUARY 2014
tests have been conducted with data
from downhole to surface at a 100%
communication-success rate. In Bra-
zil, Petrobras and Schlumberger identi-
fied an opportunity to optimize deepwa-
ter well-test operations with a real-time
communication solution on a well in the
presalt Santos basin. As a result of the
collaboration, the Quartet system was
deployed successfully, delivering flow
and shut-in data to monitor operations
and adjust the test program in real time.
www.slb.com/Quartet-Muzic.
Tight-Casing Centralizer
Centek Groups UROS-CT centralizer,
targeted at tight-casing applications in
deepwater wells, is now available. The
UROS-CT is designed for use in tight-
tolerance casings where the centralizer
is required to compress fully to travel
between tight-tolerance casing strings,
yet will expand to the designed open-
hole size (Fig. 4). The UROS-CT is engi-
neered to precise ring-gauge tolerances,
partly because casing drift downhole is
a major concern when running in deep-
water wells, but also because the central-
izer must compress as closely as possible
to the casing because every millimeter
saved allows for greater expansion in
the open hole. The centralizer is secured
into position by use of low-profile,
positive stop rings. The UROS-CT fits
straight onto standard casing joints, so
there is no need to run an expensive pup
joint, and substantial rig makeup time
is avoided. This centralizer significantly
reduces insertion forces and drag, and
the unit does not need to be pulled into
the well because the design allows for
normal run-in-hole methods, so it goes
down under its own mass. The UROS-
CT is being run successfully off Norway,
Brazil, Brunei, and Malaysia and is now
being used in the Gulf of Mexico by both
US and Mexican operators.
www.centekltd.co.uk.
Scale-Inhibitor-
Evaluation System
The Model 5400 dynamic scale-
deposition loop from AMETEK Chan-
dler Engineering is a fully automated
system that measures and evaluates the
performance of scale inhibitors under
high-pressure and high-temperature
conditions (Fig. 5). The system pumps
precisely heated oil samples at known
rates through a tubing test section while
Fig. 3Schlumbergers Quartet Muzic
wireless downhole testing system.
Fig. 4The UROS-CT centralizer from Centek.
Fig. 5AMETEK Chandler Engineerings Model 5400 scale-inhibitor-evaluation
system.

27 JPT JANUARY 2014
continuously measuring the differen-
tial pressure. An increase in differen-
tial pressure serves as an indication of
scale formation, and the test is com-
pleted once that differential pressure
reaches an adjustable threshold value.
The system features a precise forced-
air convection oven, removable sample
and preheat tube assembly, external pH
electrode, and Hastelloy C276 sample
tubing and fittings inside the oven. Its
hardware includes two manual set-point
backpressure regulators (high or low
range) that are used to create the sam-
ple pressure inside the test section dur-
ing pumping. Two high-performance
liquid chromatography pumps are used
to transport the fluids through the tub-
ing, both with six-port switching valves.
The systems proprietary software is
designed for ease of use and is powerful
enough to collect and calculate all of the
acquired data over the completed test
cycle. The software allows operators to
control the overflow rate, test time, fluid
selection, and temperature of each indi-
vidual test.
www.ametek.com.
Subsea Pile-Driving System
Conductor Installation Services has
introduced its Subsea Piling System, a
remotely operated system that the com-
pany developed to drive piles as large
as 36 in. in diameter in water depths to
300 m. The entire process is carried out
by an experienced pile-driving engineer
from a control unit and monitoring sys-
tem located onboard a vessel or barge. A
hydraulic hammer, connected by an elec-
tronic umbilical cable to the control sys-
tem, is lowered into the water and placed
directly over a subsea pile (Fig.6). Once
it is positioned accurately, the pile is
driven into the seabed by the hammer
until it reaches its target depth. The
operation is continuously monitored
and controlled by an engineer in a dedi-
cated control cabin. The system features
self-tensioning hydraulic winches that
lower and raise the hydraulic hoses and
electrical cables that connect to the ham-
mer. The constant- tensioning capabil-
ity of the Subsea Piling Systems winches
means that they automatically heave and
lower according to seaconditions.
www.c-i-services.com.
Ball Valve
Victaulic has introduced the Series 727
ball valve, a high-pressure, enhanced-
port valve with grooved ends for upstream
oil applications. The internal design of
the Series 727 valve has been streamlined
to provide enhanced flow characteris-
tics, offering improved throughput. Flow
testing demonstrated up to one-third
better flow than competitive standard-
port ball valves. Featuring grooved ends,
the Series 727 is joined using Victau-
lic couplings, enabling quicker and eas-
ier installation and maintenance than
Fig. 6A subsea piling hammer, part of Conductor Installation Services
Subsea Piling System.
28 JPT JANUARY 2014
flanged valves. The Series 727 weighs
one-third less than equivalent flanged
valves, further easing handling and
installation. The two-piece valve features
a floating ball for lower torque require-
ments and is offered with manu-
al handles with an integral tamper-
resistant lock/seal (Fig. 7). The Series
727 is designed for full-open or shutoff
service. Series 727 valves can accommo-
date pressures up to 1,500 psi and are
available in sizes ranging from 2 to 6 in.
Common oilfield applications include
wellhead hookups, flowlines, production
headers, produced-water lines, heater
treaters, and separators.
www.victaulic.com.
Electrical Submersible Pumps
Baker Hughes new ProductionWave solu-
tion is a suite of electrical-submersible-
pump (ESP) -based products and ser-
vices, providing a flexible production
alternative to rod pumps for unconven-
tional oil plays. Among the advantages
of using ESP-based systems vs. rod-lift-
based systems is the ability to place the
ESP deeper in the well, which increases
production and ultimate recovery. The
pumps deviation tolerance eliminates
tubing wear typical of rod-lift systems,
to improve uptime, reliability, and eco-
nomic benefit. The ProductionWave sys-
tems help operators increase production
rates, in some cases by more than 40%,
while lowering operating expenses and
reducing health, safety, and environ-
mental risks in comparison with rod-lift
operations (Fig. 8). These production
systems are targeted at low-flow-rate
unconventional oil wells with trajecto-
ries that are troublesome for rod-lift
systems. The pumps can operate in flow
ranges from 50 to 4,000 BFPD, enabling
operation in dynamic conditions while
providing better associated-gas- and
solids-handling capabilities than does
rod lift. In addition to the pump, Pro-
ductionWave solutions include technol-
ogies for gas handling, sand control, and
production chemicals, and offer flexible
commercial models and services related
to applications engineering, real-time
optimization, and field support.
www.bakerhughes.com.
Fig. 7Victaulics Series 727 high-
pressure ball valve.
Fig. 8Baker Hughes ProductionWave ESP-based services in use.

29 JPT JANUARY 2014
Reservoir-Monitoring System
Weatherford International announced
the worldwide release of its OmniWell
production- and reservoir-monitoring
service, providing unified reservoir mon-
itoring for real-time downhole data under
a wide range of well conditions, from
conventional to extreme. OmniWells fit-
for-purpose solutions incorporate elec-
tronic and optical sensing technologies,
integrating multiple measurement solu-
tions for activities such as flow profiling,
fracture monitoring, production surveil-
lance, and thermal profiling (Fig. 9). The
data from those solutions are acquired
at the surface and processed through a
scalable data-management platform that
relays critical data to visualization and
analysis platforms in real time. A new,
scalable data platform is also available
for acquiring, integrating, and managing
critical well data while offering software
and services to simultaneously visualize
dynamic, multiparameter data for chang-
ing well conditions. The integrated data
platform for multiapplication, multiple
discrete measurements, and distribut-
ed sensing enables correlated readings
and permits advanced, real-time char-
acterization of the well environment.
The unification of these production- and
reservoir-monitoring solutions for flow,
temperature, thermal profiling, and seis-
mic brings actionable data to the opera-
tor for better decision making. JPT
www.weatherford.com.
Fig. 9Applications of Weatherford Internationals OmniWell reservoir-
monitoring system include solutions for temperature and pressure, flow,
thermal profiling, and seismic.
TECHNOLOGY UPDATE
30 JPT JANUARY 2014
A critical part of any oilfield production
processing is oil and water separation.
Although some highly effective demul-
sifier products for this purpose have
been developed for a number of produc-
tion scenarios, the application of demul-
sifiers to heavy oils remains prob-
lematic. However, the work described
below has led to the development of a
tailored range of demulsifiers to add
to the relatively small number of effec-
tive chemistries applicable across the
growing demands of heavy oil produc-
tion activity.
Theoretical models show that the
critical parameters of how chemical
demulsifiers break crude oil emulsions
are associated with the rheology of the
oil/water interface. The work undertak-
en was to determine whether such cor-
relations are justified in real systems by
measuring the rheological parameters
associated with the oil/water interface
and correlating them with demulsifi-
er performance. The principle of this
model was then used to design more
efficient demulsifier molecules. All
demulsifiers were evaluated individual-
ly for comparison and not as a demulsi-
fier blendedpackage.
To meet the needs of field applica-
tions, the desired demulsifiers must be
very interfacially active and be able to
displace the surfactants in crude oil at
a use concentration as low as 10 ppm.
A range of novel heavy oil demulsifiers
has been developed with a wide demul-
sification chemistry portfolio, includ-
ing resins, polymerics, and esters to
optimize and further develop more
efficientmolecules.
Experimental Work
Interfacial Tension (IFT). Demulsifiers
that showed good performance in the IFT
testing were further evaluated in a range
of crude oils with a range of API gravities,
water cuts, compositions, and regions
oforigin.
Relative Solubility Number (RSN). The
relative solubility number of a demulsi-
fier is a measure of its solubility prop-
erties. This is a key factor in demulsi-
fier selection, because solubility prop-
erties dictate whether the chemical
will perform effectively as a surface-
active agent at the oil/water interface.
The following physical properties, pour
point, viscosity, density, and pH, were
measured to provide an indication of
how the products could be handled in
the field.
Turbiscan Analysis. A Turbiscan labo-
ratory instrument, which replicates on-
field bottle testing, was used to evaluate
the demulsifiers. This method enables
the acceleration and documentation
of an aging test for an in-depth under-
standing of the destabilization mecha-
nisms (creaming, sedimentation, floc-
culation, and coalescence) of emulsions.
Results and Discussion
A list of the initial chemistries and their
physical properties is shown in Table 1.
To establish information regarding
the equilibrium adsorption of the demul-
sifier materials at the oil/water interface,
the IFT (mN/m) was measured over time
(sec) for the demulsifiers. Figs. 1 and 2
show the IFT analysis for the demulsi-
fiers listed in Table 1. The graphs show
that the steeper the gradient, the fast-
er acting the demulsifier, and the lower
the equilibrium IFT, the more effective
thedemulsifier.
The results show that an increased
surfactant adsorption time results in a
reduction in the value of the IFT. This
also leads to an increase in the value
of the interfacial elastic modulus. The
demulsifiers were then further evalu-
ated in the Turbiscan instrument, in
some crude oils with a range of API
gravities and water cuts. Three heavy
crude oils with different gravities and
basic sediment and water (BS&W) levels
were used for screening the demulsifiers
and the details. The crude oils are given
inTable2.
Tables 3 through 5 show the Tur-
biscan results from the evaluation with
the crude oils.
The characteristics affecting demul-
sifier performance show that molecular
weight, RSN, and functional groups are
the keys to providing goodseparation of
the water and oil in heavy oils. The IFT
test givesabiastoward high RSN demul-
sifiers, which are stronger water drop-
pers. This is mirrored by the Turbiscan
tests in the crude oils, as all demulsi-
fiers <8 RSN did not exhibit any sep-
aration. However, when the RSN was
increased slightly (11), the perfor-
mance improved significantly regard-
less of the chemical backbone of the
molecule. This is related to the extent of
alkoxylation, and the products that have
high mixed alkoxylation levels have bet-
ter demulsification properties than sin-
gle alkoxylatedproducts.
Developing New Surfactant Chemistry
for Breaking Emulsions in Heavy Oil
Clare Temple-Heald, SPE, Craig Davies, Natalie Wilson, and Nicola Readman, Croda Europe
TechUpdate1Jan14_Art1.indd 30 12/17/13 2:23 PM
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TECHNOLOGY UPDATE
32 JPT JANUARY 2014
In general, the more water solu-
ble demulsifiers show rapid interfacial
adsorption and high values of interfacial
elastic modulus. The value of interfacial
elastic modulus is related to the strength
of interaction between molecules at the
oil/water interface. Bulky hydrophobes
based on resins, which cannot pack well
at the interface, have lower elastic mod-
ulus and promote coalescence. With
higher molecular weight chemistries,
the interfacial adsorption rate decreas-
es, the interfacial activity increases, and
the interfacial elastic modulus decreases.
Therefore, for higher molecular weight
TABLE 1DEMULSIFIER CHEMISTRIES AND PHYSICAL PROPERTIES
Demulsifier
Chemical
Description
Appearance
and Physical
Form RSN
Solubility
(1% in DI
i

water)
Pour
Point
(C)
Viscosity
at 25C
(cp)
Density
at 25C
(g/cm
3
)
pH (1% in
85:15 w/w
IPA
ii
:water)
Molecular
Weight
(Da
iii
)
A C4/C9
resin, high
ethoxylation
Dark brown/
amber liquid
23 Soluble 30 100 1.01 12.5 <3000
B Ethoxylated
trimer acid
ester
Amber/
brown liquid
21 Soluble 12 >5000 1.03 8.0 <3000
C C8 resin, high
ethoxylation
Amber liquid 20 Soluble 15 700 1.03 8.5 <3000
D C9 resin, high
ethoxylation
Dark brown/
red liquid
19 Soluble 12 >5000 0.98 8.0 <3000
E Quaternized
polyimine
Pale yellow
liquid
18 Soluble 18 >5000 1.02 4.5 >12000
F Ethoxylated
polysorbate
adipate
Amber liquid 17 Soluble 9 1300 1.09 7.0 <7000
G C9 resin,
high mixed
alkoxylation
Yellow/
amber liquid
17 Soluble 33 1100 1.01 8.0 <7000
H EO/PO block
copolymer
adipate
Pale yellow
liquid
15 Dispersible 6 1700 1.01 4.0 <12000
I C9 resin,
high mixed
alkoxylation
Dark brown/
amber liquid
11 Insoluble 12 >5000 1.00 9.5 <7000
J EO/PO block
copolymer
adipate
Brown/
amber liquid
11 Dispersible 9 800 1.05 6.5 <7000
K TMP EO/PO
alkoxylate
Clear liquid 8 Insoluble 15 1300 1.00 7.5 <7000
L C9 resin, high
propoxylation
Yellow liquid 8 Insoluble 30 1200 0.93 10.5 <3000
M PEG (40)
sorbitol
hexaoleate
Pale yellow
liquid
7 Insoluble 18 200 1.01 7.0 <3000
N Nonionic
block
copolymer
Brown waxy
solid
7 Insoluble >30 N/A N/A 7.0 <7000
O C9 resin, low
propoxylation
Yellow/
amber liquid
6 Insoluble 12 >5000 0.92 8.5 <3000
ideionized, iiweight-to-weight isopropyl alcohol, iiidaltons
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JPT JANUARY 2014
TECHNOLOGY UPDATE
Fig. 2Interfacial tension vs. adsorption time for demulsifier solutions in
toluene at 10 ppm (products that achieved an equilibrium value of <15 mN/m).
Graph courtesy of Croda.
Fig. 1Interfacial tension vs. adsorption time for demulsifier solutions in
toluene at 10 ppm (products that achieved an equilibrium value of >15 mN/m).
Graph courtesy of Croda.
40
35
30
25
20
15
10
5
0
0 500
Demulsifier D Demulsifier E Demulsifier H
Demulsifier K Demulsifier M Demulsifier O
Demulsifier I
1000 1500
Time, sec
I
n
t
e
r
f
a
c
i
a
l

t
e
n
s
i
o
n
,

m
N
/
m
2000 2500 3000
40
35
30
25
20
15
10
5
0
0 500
Demulsifier A Demulsifier B Demulsifier C Demulsifier F
Demulsifier G Demulsifier J Demulsifier L Demulsifier N
1000
I
n
t
e
r
f
a
c
i
a
l

t
e
n
s
i
o
n
,

m
N
/
m
Time, sec
1500 2000 2500 3000
TABLE 2CRUDE OIL CHARACTERISTICS
Crude Oil Source API
Approximate
BS&W (%) Characteristics
A UK onshore 11 50
B UK onshore 11 70
C France 18 55 Sour, asphaltenic
N
E
W
Water
Handling and
Management
Technical
Section
SPE has formed a Technical Section
to give members the opportunity
to focus on water-related issues in
the upstream oil and gas industry.
This new section seeks to expedite
and facilitate discussion and
cooperation on water handling and
management and provide advice
on water-related events, projects,
courses, and SPE International
activities.
Deepen your learning, and share
your insights on the subject through
knowledge transfer at discussions,
study groups, monthly meetings,
forums, and workshops.
Enjoy the convenience of virtual
meetings along with the benets
of at least one face-to-face
meeting a year.
Join now at
connect.spe.org/WHMTS/Home.
TCHSEC_WaterHandling_THV_JPT_1013_a.indd 1 10/28/13 11:18 AM
TechUpdate1Jan14_Art1.indd 34 12/18/13 7:44 AM

35 JPT JANUARY 2014
TABLE 3CRUDE OIL A (UK ONSHORE, 11 API, BS&W 50%)
Demulsifier Chemical Description % Demulsified as % of BS&W Interface Quality Water Clarity
A C4/C9 resin, high ethoxylation 32 Excellent Excellent
B Ethoxylated trimer acid ester 20 Excellent Excellent
C C8 resin, high ethoxylation 100 Excellent Good
D C9 resin, high ethoxylation 100 Excellent Good
E Quaternized polyimine 100 Excellent Excellent
F Ethoxylated polysorbate
adipate
98 Excellent Excellent
G C9 resin, high mixed
alkoxylation
100 Average Poor
H EO/PO block copolymer
adipate
I C9 resin, high mixed
alkoxylation
100 Good Good
J EO/PO block copolymer
adipate
K TMP EO/PO alkoxylate 20 Excellent Excellent
L C9 resin, high propoxylation No performance
M PEG (40) sorbitol hexaoleate No performance
N Nonionic block copolymer No performance
O C9 resin, low propoxylation No performance
TABLE 4CRUDE OIL B (UK ONSHORE, 11 API, BS&W 70%)
B Ethoxylated trimer acid ester 84 Average Average
C C8 resin, high ethoxylation 100 Excellent Good
D C9 resin, high ethoxylation 94 Poor Poor
E Quaternized polyimine 75 Average Average
F Ethoxylated polysorbate
adipate
99 Excellent Good
G C9 resin, high mixed
alkoxylation
100 Average Very poor
H EO/PO block copolymer
adipate
82 Average Average
I C9 resin, high mixed
alkoxylation
100 Good Average
J EO/PO block copolymer
adipate
84 Average Average
K TMP EO/PO alkoxylate No performance
TECHNOLOGY UPDATE
36 JPT JANUARY 2014
demulsifiers, the initial effect is slower
but more effective overall.
The other physical properties eval-
uated in the study show no correla-
tion with performance, but are required
for the user to understand how to handle
and use the demulsifiers in field condi-
tions. The chemistries chosen were var-
ied to assess surfactants other than those
based on nonyl phenol resins. Although
the nonyl phenol-based demulsifiers are
still the best performers, other chem-
istries have shown suitable demulsifi-
cation performance. In particular, an
ethoxylated polysorbate adipate (pat-
ent pending) performs well in heavy oil,
while classified as yellow and inherently
biodegradable for use in theNorth Sea.
Internal development work was also
done to evaluate resins with longeralkyl
chains as resin alkoxylate demulsifiers.
From this work, it was found that the
ethylene oxide:propylene oxide mix and
resin:alkoxylate ratio are more impor-
tant for demulsification performance
than the type of resin used.
Customer trials with demulsifiers
were executed and the leading products
correlated with the performance in the
laboratory. However, a formulation of
several demulsifiers is commonly used to
obtain optimum field performance.
Conclusions
Leading-edge techniques have been used
that measure demulsifier interfacial
properties, measure how these proper-
ties relate to demulsifier performance,
and evaluate how a range of demulsifi-
ers perform in heavy crude oils. The ele-
ments of molecular structure that deter-
mine adsorption properties have been
discussed, and this understanding has
guided the development of new demul-
sifier types with improved performance.
Although the nonyl phenol resin alkox-
ylates are the best performing products,
a variety of chemistries can be used in
heavy oil, including ethoxylated polysor-
bate adipates.
In field situations, the most effec-
tive demulsifiers are likely to be a for-
mulation of high and low molecular
weight materials. The high molecular
weight species occupies a large area at
the interface, which reduces the sur-
factant concentration, whereas the
lower molecular weight materials will
aid rapid relaxation of the IFT. The dif-
ficulty in designing better perform-
ing demulsifiers lies in balancing these
various parameters, some of which are
inopposition.
Acknowledgments
The authors would like to thank Croda
employees involved in helping with the
article. The authors also wish to thank
Recherche Exploitation Produits and
Star Energy for supplying materials, and
Teclis and Fullbrook Systems for their
technical support.JPT
TABLE 5CRUDE OIL C (FRANCE, 18 API, BS&W 55%)
B Ethoxylated trimer acid ester No performance
C C8 resin, high ethoxylation 60 Excellent Excellent
D C9 resin, high ethoxylation 89 Excellent Excellent
E Quaternized polyimine 71 Average Poor
F
Ethoxylated polysorbate
adipate
No performance
G
C9 resin, high mixed
alkoxylation
75 Average Poor
H
EO/PO block copolymer
adipate
76 Excellent Good
I
C9 resin, high mixed
alkoxylation
85 Good Good
J
EO/PO block copolymer
adipate
K TMP EO/PO alkoxylate No performance
| baker hughes. com
Reduce risk and uncertainty,
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Collect multiple uid samples in a single run.
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logging-while drilling uid analysis sampling and testing service

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2014 Baker Hughes Incorporated. All Rights Reserved. 39910 01/2014
BH_037_jpt.indd 1 12/16/13 9:35 AM
YOUNG TECHNOLOGY SHOWCASE
38 JPT JANUARY 2014
Determining the fluid properties of a
reservoir by using pressure/volume/
temperature (PVT) analysis is essen-
tial to petroleum reservoir studies,
production equipment design, and
reservoir recovery efficiency estima-
tion. The properties of the formation
fluid are used to determine reserves
and to predict reservoir performance
and economics. PVT properties such
as bubblepoint pressure, gas/oil ratio,
viscosity, oil formation volume factor,
and detailed composition are impor-
tant to well performance analysis, mate-
rial balance calculations, reservoir
simulation, and production engineer-
ingcalculations.
Once the reservoir information is
available, the well team makes the criti-
cal field development decisions. Con-
ventional post-well wireline formation
testing operations can delay decision
New LWD Service Integrates Formation
Fluid Analysis and Sampling
Editors note: If you have a
new technology introduced
fewer than 2 years ago and
would like to highlight it in
Young Technology Showcase,
please contact JPT Editor John
Donnelly at jdonnelly@spe.org.
The fluid analysis and sampling service can capture up to 16 fluid samples.
YoungTechJan.indd 38 12/16/13 2:29 PM

39 JPT JANUARY 2014
making for days, sometimes months,
depending upon the logistics involved
in transporting a sample from the well-
site to a PVT laboratory. Additional-
ly, wireline deployment is expensive in
horizontal and highly deviated wells
because of the extra time and equip-
ment required to convey the tools to the
test intervals.
Integration Benefits
The latest logging-while-drilling (LWD)
technology integrates downhole fluid
analysis and sampling with forma-
tion pressure while drilling (FPWD),
thereby providing environmental, eco-
nomic, time-saving, and data quality
benefits over traditional methods of res-
ervoir characterization. The integration
enables three distinct services: real-
time formation pressure tests, real-time
in-situ measurements of fluid proper-
ties, and downhole capture and retrieval
to the surface of fluid samples.
The real-time formation pressure
testing provides important information
on fluid dynamics within the reservoir,
mobility measurements, and zone pro-
ductivity predictions. It is also impor-
tant for accurate gradient analysis. Mea-
suring multiple formation pressures at
different depths delivers a formation
fluid gradient that makes it possible to
find contact points between different
formation fluids such as water, gas, and
oil. Pressure testing in an LWD environ-
ment also provides important informa-
tion for safety and drilling optimiza-
tion, including data that are valuable for
controlling hydraulic overbalance and
equivalent circulating density.
Representative fluid samples pro-
vide information on the production
potential of the reservoir. LWD fluid
analysis and sampling enables fluids
samples to be collected closer to in-situ
conditions for a more accurate determi-
nation of fluid composition. Addition-
ally, sample integrity can be monitored
continually from the first time the sam-
ple enters the LWD tool until it is trans-
ferred to the laboratory for detailed
analysis. Greater accuracy improves
project cycle times and reduces devel-
opment risks.
Although the vital information pro-
vided by the integrated LWD service is
useful throughout the life cycle of a res-
ervoir, it is particularly valuable during
the initial assessment to determine the
commercial potential of a project. The
assessment includes estimates for pro-
ducibility, fluid type and composition,
fluid phase behavior, production facility
design, and flow assurance.
FASTrak Service
Baker Hughes FASTrak LWD fluid
analysis and sampling service can col-
lect an unlimited number of pressure
and fluid analysis tests, and capture and
recover up to 16 fluid samples under
The FASTrak service operates like other formation testing services.
40 JPT JANUARY 2014
PVT conditions. The service is based on
the reservoir characterization instru-
ment and offers automatic sequencing
during pressure testing, pump-through
operations, and sampling.
The tool consists of four modules:
the power module, the pump and ana-
lyzer section, the tank module, and the
termination sub. The power module is
a dedicated mud turbine-alternator sys-
tem that provides the power for extend-
ing and retracting the sealing element;
opening and closing the valves within
the modules; and operating the fluid
identification sensors. It also provides
power to the drawdown pump during
pressure testing and cleanup operations.
The pump and analyzer section is
the heart of the tool. It contains the
pad-sealing element, the quartz pres-
sure gauge, the sample pressure strain
gauge, multiple temperature sensors,
the drawdown pump, and the fluid ana-
lyzer. The pad and pump design is simi-
lar to that of the field-proven TesTrak
FPWD service. Filters within the flow-
line and pad prevent plugging. The pad-
sealing element is exchangeable with
different probe diameters for varying
formation mobilities. A high-tempera-
ture pad for temperatures above 275F
(135C) is also available. The quartz
pressure gauge is the same as in FPWD
tools. Strain gauges monitor the tank-
filling pressure during each sampling
process. Multiple temperature sensors
in the flowline and on the pressure sen-
sor electronics monitor tool and forma-
tion fluid temperatures. The drawdown
pump is designed for, and operated up
to, 8,700 psi (600 bar) differential pres-
sure at rates of up to 25 cm
3
/s for maxi-
mum sampling efficiency.
The fluid analyzer contains four
sensors: the piezoelectric tuning fork,
the acoustic transducer, the tempera-
ture sensor, and the refractometer. They
measure fluid properties to help distin-
guish mud filtrate from formation fluid
and enhance the understanding of fluid
type, contamination level, and compo-
sition. Density and viscosity are mea-
sured using the tuning fork. The high-
frequency acoustic transducer makes
sound speed measurements by measur-
ing the response of the acoustic travel
time through the fluid. The high-resolu-
tion response makes it possible to detect
even very small changes in contamina-
tion. The refractometer, which is highly
sensitive to changes in water salinity, is
used for optical analysis of the down-
hole fluid.
Each tank module is capable of car-
rying up to four tanks. The tool can
carry four tank modules, providing the
capability for retrieving up to 16 single-
phase fluid samples per run. The termi-
nation sub provides an exit to the well-
bore for the contaminated fluids while
the system is cleaning, before taking the
fluidsample.
Operation
The FASTrak service operates like other
formation testing services. Operations
begin by positioning the tool within the
formation of interest. Annular borehole
pressure is measured before the pad or
packer extends from the tool and seals
itself against the borehole wall. The
packer isolates the hydrostatic pressure
in the borehole from the tools internal
test and measurement system. Initially,
a small quantity of fluid is drawn into
the tool to confirm that a packer-to-for-
mation seal has been achieved. The for-
mation pressure is then recorded. As
fluid flows into the tool, the pressure
increases to a final stabilized value. The
pressure buildup profile provides infor-
mation about the local reservoir mobili-
ty. A dual-action piston pump draws for-
mation fluid in repeat drawdowns and
discharges it either to the wellbore or
into one of the sample chambers. When
the mud-filtrate contamination is at a
minimum level, the sample can then be
directed into one of the sample tanks for
future analysis.
Operational efficiency and test
accuracy are enhanced by two continu-
ous control closed loop systems. The
SmarTest system enables fluid pressure
and mobility testing to be performed
automatically and the test parameters
to be monitored by the engineer at the
surface. The system then selects the
optimum pretest and prepares to take
a sample on the command of the engi-
neer. The SmartPad system automati-
cally maintains seal integrity through-
out the operation.
Although still undergoing field
testing, the new LWD fluid and pres-
sure testing service is building a track
recordworldwide.
The service provided accurate pres-
sure testing and gradient analysis in a
highly deviated, unstable formation in
the Netherlands. The project set an area
record by acquiring more samples in a
single run than other comparable servic-
es. Twenty-five pressure tests were per-
formed and three gradients were identi-
fied, targeting four zones of interest for
sample acquisition. Twelve single-phase
samples were acquiredsix oil, three
water, and three gaswith 100% seal-
ing efficiency. This test illustrated how
the system mitigated risk while improv-
ing drilling safety and efficiency.
In Australia, the service acquired 25
formation fluid samples and a range of
pressure tests in challenging, near hor-
izontal wellbores. The high number of
samples acquired and excellent opera-
tional efficiency enabled the operator
to make critical field development deci-
sions while saving valuable rig days.
In an oil-bearing reservoir in the
deepwater Gulf of Mexico, the LWD ser-
vice obtained three single-phase sam-
ples with less than 5% contamination
and identified a disconnect that, when
verified, confirmed a fault that was seal-
ing within the reservoir.
Numerous jobs are scheduled for
Europe, Latin America, and the Asia
Pacific region.JPT
Which Operators?
BHP including Petrohawk, Chevron including Atlas, EP
Energy, Hess, Hunt, Husky, Marathon, Murphy, Newfeld,
Nexen, Pioneer, Shell, Statoil including Brigham, Suncor,
Swift and Talisman.

What plays and formations?
Altamont, Appalachia, Avalon, Bakken, Barnett, Bossier,
Deep Basin, DJ Basin, Duvernay, Eagle Ford, Evie, Exshaw,
Falher, Fayetteville, Granite Wash, Groundbirch, Haynesville,
Horn River, Magnolia, Marcellus, Mesaverde, Montney,
Muskwa, Niobrara, Olmos, Otterpark, Permian, Pinedale,
Sand, Spraberry, Three Forks, Wasatch, Wilcox, Williston,
Wolfcamp, Woodford and many more in the pipeline.

How many wells?
Thousands, and the number of Operators and wells is
growing all the time.

How reliable is the data?
Very. The data is independently quality controlled by an
organisation with 25 years experience of doing this.

How can I access this data?
If you are an Operator of shale gas or tight oil wells I would
be delighted to explain. You can fnd me at
www.RushmoreReviews.com

We also have data on shale wells in Australia, Argentina,
China, Colombia, Indonesia, Jordan, Poland and Sweden
with more countries on the way.
Hello,
Im Helen Rushmore, Im here to
let you know that North American
Operators are now sharing high
quality drilling, completions and
fracing data on their shale gas
and tight oil wells.
Rushmore_041_jpt.indd 1 12/11/13 2:50 PM
42 JPT JANUARY 2014
Many operators have a register of
flanged connections identified as having
fitted stud bolts below acceptable stan-
dards and, on many occasions, in criti-
cal condition requiring urgent attention.
Corroded stud bolts seriously under-
mine an assets integrity and unsched-
uled pressure releases can have a dev-
astating impact on offshore operations.
In 2009, the situation prompted
several operators in the United Kingdom
Continental Shelf to contact Stork Tech-
nical Services regarding safety concerns
related to incidents of uncontrolled
pressure releases and future potential
releases, as a result of severe stud bolt
corrosion/failure on four-bolt flanged
connections. Many of the corroded stud
bolts were proving difficult to remove
and replace during planned shutdown
activities, because of their location and
the presence of existing systems.
Stork was asked to develop a more
sophisticated method of removing
and replacing corroded stud bolts that
would mitigate risk and improve the
safety of operations and the wider asset,
while simultaneously reducing operat-
ing costs and optimizing productivity.
Comprehensive R&D
Stork embarked on a rigorous re-
search, design, and testing program and
worked with a specialized manufacturing
company to develop the hot bolt clamp
(HBC) technology. The patented HBC sys-
tem enables the safe removal and replace-
ment of corroded stud bolts on live
four-bolt flanged connections, with no
disruption to ongoing production.
Since its introduction and develop-
ment in 2012, the technology has suc-
cessfully reworked thousands of four-
bolt flange connections. Since devel-
oping the initial standard HBC, which
covers Class 150 rating flanges from 2
in. to 3 in., Stork now produces a range
of HBCs to cover all four-bolt flang-
es, including those designed for tight,
restricted access applications.
Hot bolting (the practice of remov-
ing, replacing, or freeing and retighten-
ing stud bolts on live piping and equip-
ment) of flanged connections with eight
bolts or more is a well-established prac-
tice. Traditionally, any stud bolt activity
on four-bolt flanges required the system
to be shut down, isolated, and purged
prior to breaking the flange integrity
to enable rework. This is a lengthy pro-
cess requiring the system to be shut
down (typically, with lost production)
as well as associated alternative ser-
vices to be in place to cover system
purging and subsequent system testing
to prove the integrity of the disturbed
flangedconnections.
The HBC system allows hot bolt-
ing to be carried out on four-bolt flang-
es without a shutdown. Corroded stud
bolts can be removed and replaced on
live connections while maintaining
flange integrity, which delivers cost,
efficiency, and time benefits.
The system hydraulically clamps
pressurized bolted pipeline flanges
together in a controlled manner so that
the corroded stud bolts can be safe-
ly removed. Once all the bolts have
been replaced, the hot bolt clamps are
depressurized and removed. Change-
out of the bolts is achieved without tak-
ing the flanges out of operation, disrupt-
Hot Bolt Clamp Addresses
Corrosion Problem
Fig. 1The hot bolt clamp (HBC) system undergoes vigorous testing and
checks.
YoungTechJan_Art2.indd 42 12/17/13 2:22 PM

43 JPT JANUARY 2014
ing standard line pressure, or the dan-
ger of a medium release.
Using the HBC, a four-bolt flange
can be reworked in only 40 minutes and,
as the system can be used on live assets,
typically removes approximately 1.5 days
of activity from a planned 1-month shut-
down, which would otherwise equate to
hundreds of thousands of dollars lost in
deferred production. This also reduc-
es the number of personnel required on
board during the shutdown period at a
time when bed space is at a premium.
Converting the initial clamp con-
cept into a safe, practical, and efficient
tool posed a number of significant chal-
lenges. The clamp dimensions had to
be compact enough to fit around the
flanged dimensions, as well as having
suitable rigidity to deliver sufficient load
so as to start transferring the retained
stress from the studs to the clamps. At
the same time, the clamp also had to
be adjustable to cater to a wide range
offlanges.
The initial conceptual design was
carried out with 3D computer-aid-
ed design to check for limiting access/
geometry constraints and using finite
element analysis modeling. Rigorous
testing was then carried out on manu-
factured clamps, with hydraulic cylin-
der, full-cyclic pressure tests to simu-
late real environment use. The cylin-
ders were pressurized beyond maximum
working pressure for 10,000 pressure
cycles with realistic dwell times between
each pressurization.
Once the manufacture of the clamps
was complete, the process of develop-
ing the site service was initiated, which
saw the clamps being operated in con-
junction with ultrasonic bolt load mon-
itoring equipment to ensure that min-
imal load transfer could be detected
while preventing excessive load transfer
through the assembly to the energized
sealinggasket.
Case Study
Stork was contracted by Shell UK to
carry out four-bolt flange replacement
on the Nelson North Sea platform. It
was also asked to carry out a prejob sur-
vey on the platform to determine a fixed
scope of work. This allowed work to be
planned efficiently in line with ongoing
work scopes. All flanges worked were
under live working conditions, which
enabled the HBC team to work on them
without the need to depressurize and
purge any lines, thus removing the
requirement for a costly shutdown.
Following the initial trip and suc-
cessful bolt change on 20 flanges, the
company continued using the HBC sys-
tem to operate a 5-month program in
which more than 500 four-bolt flanges
were successfully hot bolted. The full
work scope was carried out in time and
within budget, and the work was com-
pleted safely.
After receiving requests from
a number of operators and technical
authorities, the next evolution of the
clamp design is currently under way.
Further innovation and new applica-
tions will be developed and covered by
the technology. JPT
Fig. 2Flange before using the HBC system.
Fig. 3Flange after using the HBC system.
YoungTechJan_Art2.indd 43 12/17/13 2:24 PM
SPE TECHNICAL DIRECTORS 2014 OUTLOOK
44 JPT JANUARY 2014
A
condensed version of what is on the minds of
SPEs technical directors is: The industry needs
multidisciplinary, data-driven ways to adapt to what is
ahead, focus on what is critical for decision making, and take
a long view as another generation takes over.
In other words, this group of six representing key
industry disciplines has a lot of ideas. When SPEs technical
directors met in October 2013, they discussed two big ideas
that may become group projects: better management of
critical processes to ensure they are done safely, and caring
for aging fields.
A discussion of whether managing aging fields
isworthy of greater attention brought up the challenge
of permanently plugging offshore wells not designed
withcurrent technology in mind, whether worn tubulars
inold wells can withstand the stress of life-extending
fracturetreatments, and estimating how long a well is likely
to beproducing.
Itcrosses disciplines. There are problems, and
opportunities to get more out of fields, that cross the lines,
said Roland Moreau, SPE technical director for Health,
Safety, Security, Environment, and Social Responsibility, who
has taken a personal interest in process safety.
Smarter, faster use of data is a common theme. David
Curry, SPE technical director for Drilling andCompletions,
wants to see drilling systems that are wired to manage
the data needed to observe what is ahead and intelligently
respond to it. Olivier Houz, SPE technical director for
Reservoir Description and Dynamics, sees the need for better
systems to highlight critical bits of information from all the
data flowing in as more sensors are built intowells.
Shauna Noonan, SPE technical director for Production
and Operations, is interested in better long-term production
management of unconventional wells. Her concern overlaps
Houzs work on predicting reservoir life for unconventional
wells because part of the plan is for retirement, but how
do you do that when you do not know what the retirement
ageis?
When it comes to petroleum engineering educators,
theaverage retirement age is uncomfortably close for
two-thirds of those in academia. The academic crew
changecomes at a time when there has been a surge
in thenumber of students enrolled, putting stress on
institutions that are struggling to keep up. Cindy Reece,
SPE technical director for Management and Information,
said SPEneeds to actively foster new ideas and greater
cooperation between academia and industry to ensure a
quality education for future petroleum engineers. When
welook at what is needed in the future, what we have today
is not sustainable, Reece said.
Stephen Rassenfoss, JPT Emerging Technology Senior Editor
A Long-Term View
From Multiple Angles
TechDirectors.indd 44 12/17/13 2:36 PM

45 JPT JANUARY 2014
SHAUNA NOONAN
SPE Technical Director, Production and Operations
Not Fade Away
When SPEs technical directors discussed managing aging
oil and gas facilities, one question was: What do you call
it? Plugging and abandonment has long been used, but the
word abandonment sends a negative message to those
living around those wells, and the directors want to make
the point that the issues go well beyond permanently sealing
old wells. Other possible labels include managing mature
assets; fields nearing the end of their life; or restoration,
since the procedure restores natural barriers where a well
onceflowed.
Noonan said there needs to be more thought about
the end from the beginning. As with saving and investing
for retirement, decisions made early on can have a
profound impact decades later. This is particularly true for a
generation of unconventional wells, because the cost of early
miscalculations can be magnified by the tens of thousands
that are being mass produced each year.
The industry needs to think about how these wells will
be produced years down the road as they near retirement,
Noonan said. This is not a problem to be handed over
to the production engineers once the well is drilled and
completed. Well design decisions affect the cost and
effectiveness of pumping systems, flow performance, and
well interventioncapabilities.
Long-term monitoring could be used to extend the life
of a field, but the decision to install
that costly hardware when the
well is completed needs to
be made during planning.
For the unconventional
well developments, a
multidisciplinary team
of drilling, completions,
production, and reservoir
engineers needs to map out an
overall strategy of the entire well
life cycle, Noonan said.
The teams vision needs to extend to the end of the
wells life, when it will need to be permanently plugged. She
said those building wells now need to answer the question
Are current drilling and completing practices leading
us down a path that would make wellbore retirement a
technicalchallenge?
Even small decisions can have a lasting impact. Noonan
would like to see greater use of management of change
systems, which are used in industries such as aerospace
to observe and control daily decisions. These systems are
widely used to track maintenance work on major processing
equipment used on the surface, such as gas processing
units, and Noonan said that needs to be done below
thewellhead.
OLIVIER HOUZ
SPE Technical Director, Reservoir Description
and Dynamics
Telling Details
The exploding number of sensors in wells offers reservoir
engineers the opportunity to understand reservoirs as never
before, if they only had the time to understand it all.
For Houz, there is opportunity in this irony. The biggest
challenge has moved from creating
computer systems capable of
filtering enormous volumes
of data from sensors to
developing smart software
that ensures meaningful
information is not missed.
Doing so will require new
analytical methods that
identify trends in data, point
out anomalies worth further
attention, and provide data-based
forecasts. What is common to the three items is that they all
aim at saving an engineers time, which is the main, if not only,
way to address information overload, Houzsaid.
The overload is the product of the growing number of
wells with long-term monitoring systems, such as pressure
sensors. This is likely to increase exponentially with the
use of equipment such as fiber optic cables capable of
measurements throughout the wellbore. A notable exception
is unconventional formations, where the industry is still
lacking quality data. Compounding the problem is the rise in
wells per engineer as companies develop drilling-intensive
onshore formations.
The number of potentially significant recorded events
has inflated to the point where it is absolutely impossible
for the engineers to treat them all, Houz said. He offered
several responses to the challenge:
Refine computerized field management work flows so
engineers can focus on instances where the observed
data diverges from what was predicted.
Revisit artificial intelligence, which fell out of favor after
the 1990s, to create programs that constantly monitor
well data, presenting engineers with problems likely to
require creativity and the ability of humans to deal with
events that fall outside the norm.
Use models based on big data, rather than physics,
to detect trends, spot outliers, and even provide draft
forecasts.
46 JPT JANUARY 2014
These systems let the data (production, logs, etc.)
constrain a physics-less model that only honors the observed
behavior, Houz said.
While the most enthusiastic supporters of this modeling
approach argue that reservoir data-only production forecasts
are the future, Houz sees them as a near-term option, but
not the final word. All these technologies are meant to save
time and streamline information, he said. Thefinal word has
to be with well-trained engineers using models honoring the
physics. If you only rely on automatic physics-less processes,
be ready for billion-dollar cyberblunders.
DAVID CURRY
SPE Technical Director, Drilling and Completions
Detect and React
Adaptive well construction is not a familiar concept, but
anyone who drives a new car has likely benefited from it.
In driving and drilling, systems are able to use a rapid flow
of data to react to changing conditions, such as the way
antilock brakes adjust to force applied
to them on a wet road.
Many parts of the
control systems in modern
cars are adaptive, said
Curry, who recently helped
organize an SPE forum to
explore adaptive drilling and
completion systems. As you
drive, you are in ignorant bliss
of the incredible control system
under you. If you turned it all off, you
would appreciate how much it is doing to look after you.
Adaptive systems have been developed to speed
drilling by using downhole data to adjust the weight-on-bit
and rotary speed to reduce vibration. But the oil industry lags
behind the automobile industry in using them. Driverless
motor cars are capable in tests of navigating safely along
busy highways, so why cant we do the same with our wells?
Curry said.
Reaching that goal will require better spatial awareness.
One of the best known examples of adaptive well construction
is geosteering, which guides the drillbit using petrophysical
data showing where it is in relation to geological structures
mapped during planning. But with sensors typically 30 to
90ft behind the bit, and current mud pulse telemetry rates,
its a bit like trying to steer down the highway at 70 mph by
looking in the rearview mirror, Curry said.
The challenge is knowing where you are geologically,
he said. There are many things you could be doing better
with a better knowledge of the environment you are
drillinginto.
A key to reaching that state of knowledge is creating an
electronic nervous system that provides a detailed picture
of what is ahead based on drilling data gathered closer to
the bottom of the hole, which is linked to a control system
capable of intelligently responding to what is observed.
Doing so will require integrated systems with
communication links that allow a wider range of sensors to
transmit more data faster to control systems programmed
to make the correct adjustments as conditions change.
Drillers will still be able to intervene when needed, but
there was a discussion at the forum about how to define their
role and how best to manage interaction between humans
and future control systems.
We have some of the technologies for adaptive well
construction now, Curry said. We can look out 10 to 20
years to technological capabilities we would like to have and
how we could use those to revolutionize how we drill wells.
HOWARD DUHON
SPE Technical Director, Projects, Facilities, and
Construction
What Were They Thinking?
Oilfield facilities engineering mixes precise analysis based on
math and logic with the mental habits, psychology, and social
skills of people in large organizations. Technical skills are
obviously important, but so are soft skills.
Duhon is interested in both sides of the process. The
level of difficulty in project management is rising along with
the scale and complexity of the jobs, as well as the number
of parties with a stake in the outcome. The mission for the
industry in the projects, facilities, and construction area is
more effective project execution, more effective community
engagement, and continuous improvement in process
safety, Duhon said.
He has been busy expanding the information and
training available for members within the discipline. There
will be more how-to articles in SPEs Oil and Gas Facilities
magazine, which serves the
discipline. A new SPE technical
section is being formed
bringing together those
involved in flow assurance
issues, adding to what is
offered by the Separation
Technology and Water
Handling technical sections.
Looking ahead, he sees the
need for similar attention to
issues related tocompressors.
When he looks at design, construction, and operations,
Duhon also sees the need for greater awareness about what
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48 JPT JANUARY 2014
goes into engineering decisions. His work as a facilities
engineer offers regular reminders that in this objective
profession, with precise formulas used to define what
needs to be done, there is a human element that adds a
levelofsubjectivity.
Duhons interest in the messy process of how
decisions really are made led to his first involvement in
SPE committees. He began his study of decision making
with objective systems, such as decision trees and linear
programming. Over time Duhon has focused more on the
social and psychological aspects of how decisions are made
One goal is to make project managers aware of decisions
they do not even notice they are making. The invisible two-
thirds of the iceberg is decision making, Duhonsaid.
There are explicit decisionswhen you choose what
type of compressor to installwhere it is clear you are
making decisions, he said. But most of our decisions are
tacitmost do not realize they are making a decision when
they do an analysis just like they did it on the last project.
ROLAND MOREAU
SPE Technical Director, Health, Safety, Security,
Environment, and Social Responsibility
In Process
The SPE Board of Directors is considering ways to focus more
on process safety. The challenge in that is deciding which
processes merit close attention.
Moreau, who has been an
advocate for a greater focus
on process safety, likened the
challenge to consuming a
pie: We cannot eat it all at
one time. We need to break
it intochunks.
To gather input,
Moreau used SPE Connect
to ask members to share their
process safety concerns and he
received responses from around the globe. They suggested
issues from safely integrating large systems to planning for
how to properly execute an emergency shutdown. The goal is
to choose the initiatives and programs that improve how the
industry analyzes its operations to identify and reduce risks.
The push to expand process safety efforts comes at
a busy time in this discipline. An SPE summit in March will
consider how best to calculate worst-case discharge from
offshore wells. United States regulators asked SPE to take a
second look at the issue, which its members first considered
in the wake of the Macondo disaster in the US Gulf of Mexico.
Those general guidelines have guided operators
preparing the estimates that must be submitted in permit
applications for drilling in the US Gulf of Mexico. The US
Bureau of Ocean Energy Management asked for a second,
more detailed look, because it was concerned about the wide
variations in some worst-case dischargeestimates.
An SPE subcommittee is working on a more specific
estimation method to calculate the size of a worst-case oil
discharge using probabilistic analysis. The goal is an SPE-
recommended methoda formula plus examples for how it
can be applied in different circumstances. A proposal under
development will be reviewed by an invitation-only group of
experts from industry, academia, and regulators.
Growing use of chemicals for exploration and
production led to plans for a workshop on chemical risks
this year. Proper chemical management is a challenge for
some companies in the industry, particularly those without
specialized professionals on staff.
A July 2012 SPE summit looking at human factors
in operational safety will yield a white paper. Moreau said
there is also interest in starting a human factors technical
section. And he is looking for member input for HSE Now, the
SPE online periodical for what is new, interesting, and on the
minds of professionals in the field.
CINDY REECE
SPE Technical Director, Management and Information
The Other Crew Change
To explain why she is concerned about the future of petroleum
engineering education, Reece starts with a simple chart. It
shows that the number of petroleum engineers expected to
graduate in the next couple years is near the peak reached in
the early 1980s when the industry was booming.
The problem in that good news is that in between
thehighs then and now is a deep U-shaped valley. The
chart,based on an annual survey by Lloyd Heinze, a
petroleum engineering professor at Texas Tech University,
shows the number of petroleum engineering graduations
falling rapidly after the oil boom ended and oil companies
begancutting jobs. The curve turned steeply up in 2005
when companies began hiring large number of engineers
to prepare for the big crew change, as many key workers
near retirement. Colleges, which
downsized during lean times,
have been unable hire teachers
fast enough to keep up with
rising enrollments. The
number of students per
faculty members jumped
from less than 15:1 in 1993
to near 55:1 in 2013.
This shift has put a
heavy load on the professors,

49 JPT JANUARY 2014
many of whom are nearing retirement age. More than
two-thirds of petroleum engineering faculty members in
theUS universities surveyed are older than 50, and 37%
of them are past age 60. While similar statistics are not
available outside the US, academics from other countries at
a recent SPE forum on the future of petroleum engineering
education, said they face similar problems, Reece said.
SPEs Board recently recognized the critical nature
ofthis issue when it made attracting, developing, and
retaining petroleum engineering faculty a strategic
initiative. To support this effort, the organization committed
USD600,000 a year to recognize faculty who use innovative
teaching techniques and those who are successful at
attracting people into an academic career. The program also
helps new faculty members establish research programs.
It is a positive step, but Reece said the problem is
far larger. There is a wide pay gap between academia and
industrya petroleum engineer with a bachelors degree can
often earn more than an assistant professor with a PhD
which steers students away from seeking advanced degrees
and entering academia.
Another area of need is industry support for young
academics so they can do the research needed to publish
papers. Overcrowded laboratories need to be expanded and
updated with the latest equipment.
What we are finding is that the issues are so complex,
no one company or no one university has the ability to
really solve them, Reece said. It will require collaboration
among academia, which SPE is working to facilitate. SPEs
role is topromote programs that address specific issues
and facilitate collaboration to spread the use of good ideas,
shesaid.
One promising possibility is a cooperative program
among universities to open up wider access to classes and
equipment among students in participating institutions.
Another would be to have petroleum engineering experts
loaned by companies to teach in their area of expertise.
Other ideas include creating online networks that
promote sharing of course-related material, and using
advanced communications to allow students at one school to
remotely use automated laboratory equipment elsewhere.
Regional pilot programs in Nigeria and the northeastern
US are currently under way to better understand regional
differences, because the problems vary, as will likely
solutions. Reece said, It is not going to be one thing. It will
be a lot of things.JPT
www.spe.org/events/dc
THE PREMI ER DRI L L I NG EVENT
REGI S T ER NOW!
4 6 MARCH 2014
F OR T WOR T H CONVENT I ON CENT ER
F OR T WOR T H, T E X AS
50 JPT JANUARY 2014
R
obotic submarines, capable of operating by themselves
thousands of feet underwater for months or perhaps years
at a time, are under development as the vanguard of tomorrows
subsea oil and gas fields. This development comes as the off-
shore oil and gas industry moves into ever-deeper waters and
remote areas of the world, where installing a floating produc-
tion facility is either economically unjustifiable or infeasible.
The industrys solution is to install production equip-
ment on the seafloor, where someone, or something, must
keep a close eye on all of it. That something is likely to be what
are known as field resident autonomous underwater vehicles
(AUVs). Nonresident AUVs have already paved the way by prov-
ing they can carry out detailed inspections of platforms and
pipelines in some cases four times faster than a human-piloted
remotely operated vehicle (ROV). Two of the leading companies
in the resident AUV business, Lockheed Martin and Saab Sea-
eye, are blending proven military technology with new software
and hardware optimized for the offshore industry. Their emerg-
ing systems represent a new breed of subsea robots that will be
capable of much more than earlier generations of autonomous
systems. As their capabilities are realized, resident AUVs will
eventually be assigned many of the same tasks that ROVs are
carrying out today.
To achieve that end, offshore operators are working with
manufacturers to identify how best to fully deploy this emerg-
ing technology. Much of the groundwork is being laid through
DeepStar, a research and development consortium that counts
11 operating companies as members. We are already using
AUVs for certain functions on a sporadic basis, but were try-
ing to understand, as operators, what else this technology can
do reliably, said Greg Kusinski, DeepStar director and Chevron
senior advisor to DeepStar.
DeepStars primary goal is to accelerate the development
and adoption of AUV technology by drafting interface stan-
dards, similar to the standards already developed for ROVs.
Among the interface issues yet to be resolved is how resident
AUVs will connect to life support systems in a subsea field.
Because resident AUVs will have to remain submerged for
months to possibly years at a time, the docking station is a criti-
cal piece of equipment that will charge up the AUV and upload
its data to the operators server by a subsea Internetconnection.
Once the particulars of the docking station are under-
stood, Kusinski said careful consideration must be given to
other issues, such as where to place it among the subsea infra-
structure. There are a lot of questions of that nature, he said.
As responsible operators, we are addressing these issues in a
very systematic and methodical manner. I dont think anyone
is interested in putting a bunch of them down there and just
seeing what happens. DeepStar expects to conclude its AUV
study on interfaces in about a year and will deliver its recom-
mended best practices to the American Petroleum Institute
for review.
ROBOTIC ROUSTABOUTS
for Tomorrows Subsea Fields
Trent Jacobs, JPT Technology Writer
The Marlin Mk3 is an autonomous underwater vehicle (AUV) under development for the deepwater oil and gas industry.
Equipped with several sensors and tools (not shown), the AUV is designed to carry out inspections and intervention
operations of subsea equipment and infrastructure. Illustration courtesy of Lockheed Martin.
Submarine.indd 50 12/17/13 2:17 PM

51 JPT JANUARY 2014
Resident Capabilities
Although AUVs have been used by the offshore industry for years,
they have had very limited application until recently. One subset
of AUVs called underwater gliders travel thousands of miles
across the worlds oceans collecting oceanographic data for sci-
entific research, but are not applicable to the deepwater environ-
ment. Torpedo-shaped AUVs can zip through the water at high
speeds while conducting ultrahigh-resolution seismic surveying
and mapping; however, they lack the maneuverability to conduct
the close inspection, sensor replacement, and valve operations a
subsea production facility would demand. Human-piloted ROVs
are not the answer either as they were designed to stay underwa-
ter for only hours at a time, not days, weeks, or months.
A resident AUV must be able to hover in place or move in
any direction. It must also have an onboard collision avoid-
ance system that will prevent it from striking environmental
hazards or production systems on the seafloor. We have stan-
dardized what kind of forces and momentum an ROV can carry
into infrastructure from an impact perspective, Kusinski said.
Now we are thinking about that from an AUV perspective, and
since they are smaller, we could potentially allow them to trav-
el faster. ROVs are restricted in terms of speed for other rea-
sons too. A typical ROV must move as slow as half a knot (kn) to
properly manage its tether system and allow the surface vessel
to follow it from location to location, whereas a resident AUV
moves as fast as 6 kn because it works independently.
And unlike a work-class ROV, to deploy an AUV, operators
do not need to contract a dynamically positioned support ves-
sel. Day rates for this type of vessel, which in many cases are at
least 300 ft in length and house up to 100 crew members, run
as high as USD 250,000. Large vessels are needed because an
ROV comes with a large equipment spread that includes a tether
management system, winches, a control van, and replacement
parts that together can weigh up to 90 tons. In contrast, an AUV
can be launched and recovered from a significantly smaller ves-
sel because it comes with a small amount of supporting equip-
ment and without a tether, dynamic positioning is not needed.
Additionally, work-class ROVs require an onboard team
of pilots and technicians to operate the vehicles and repair
them when they break down. In contrast, when an AUV hits the
water, it begins its mission without the need for human inter-
action until it resurfaces. Customized operations can be pre-
programmed into the AUV telling it what to do in certain situa-
tions and new commands can be uploaded to its software while
submerged. Another important distinction is that AUVs are less
prone to mechanical failure because they have fewer moving
parts than an ROV and no hydraulic systems.
With these advantages in mind, AUV makers are hoping
that in the not-too-distant future, oil and gas companies will
not only see AUVs as more competitive than ROVs, but also as
a required asset for life-of-field operations. Field operators
have very high standards, John Jacobson, senior program man-
ager at Lockheed Martin, said. The infrastructure is extreme-
ly expensive and it is carrying product. So as we work toward
these capabilities, we have to keep in mind the standards that
operators will put upon the AUV in terms of performance, reli-
ability, and navigation.
Deepwater AUV
Lockheed Martin is applying AUV technology that it originally
developed for military applications to now meet the needs of
the deepwater oil and gas market. The companys latest devel-
opment is a deepwater AUV called the Marlin Mk3, which is
Detailed 3D-rendered models of subsea structures,
used for decommissioning surveys and post-hurricane
inspections, can be completed in less than an hour using
an AUV. Image courtesy of Lockheed Martin.
The Sabertooth AUV is capable of remaining inside a
protective docking station for more than 6 months at a
time without maintenance. Image courtesy of Saab Seaeye.
ROBOTIC SUBMARINES
52 JPT JANUARY 2014
capable of operating at depths of up to 13,100 ft (4000 m) for
up to 33 hours on a single battery charge. Based on a field-tested
model engineered for shallower depths, the deepwater Marlin is
in its late-stage design phase. The future vision of the program
is to develop a highly functional resident system that operators
can rely upon for inspection and light intervention work.
To guide its way through the dark depths, the Marlin
employs several navigation systems, including an inertial mea-
surement unit coupled with Doppler sonar. We enhance that
using other features, including terrain- and feature-based nav-
igation, Dan McLeod, deputy director of offshore systems
and sensors at Lockheed Martin, said. The Marlins software
enables it to identify not only seabed hazards, such as boulders
or steep inclines, but also specific equipment, such as mani-
folds and subsea trees. Once georegistered, the AUV will never
forget the location of the equipment, or the features of the
surroundingterrain.
In order to withstand the pressures of the ultradeep, the
latest Marlin will have stronger pressure vessels to protect its
electronic and mechanical systems. To achieve buoyancy, the
deepwater AUV will use a denser form of the synthetic flotation
material used in the earlier models. As a result, the 17-ft-long
deepwater Marlin is more than twice the length and weight of
the first generation AUV designed to operate at a maximum
depth of only 1,000 ft (304 m). By necessity, McLeod said,
deeper vehicles get larger and heavier.
Another key difference between the earlier version and the
deepwater model is that it will be equipped with interchange-
able payload modules. Lockheed Martin believes that a modu-
lar design provides the ability to tailor the AUV with regard to
how much endurance vs. sensor capacity each mission calls for.
On one mission, you might need more battery and less work
payload, and on another mission, you may need less battery
and more payload, Jacobson said. And were anticipating that
you are going to want to change things out, that you are going to
want to take on the latest sensors.
Change Detection
Among the modular systems that Lockheed Martin is planning
on equipping the Marlin with is a 3D laser scanner. Current 3D
imaging is done using sonar; however, even the latest sonar
technology is limited by the physics of sound and only capable
of resolutions with about 5 cm of detail. Using a laser, you are
seeing 5-mm sorts of resolution, so it is about an order of mag-
nitude improved, Jacobson said. With this level of precision,
the AUV is capable of measuring the exact dimensions of subsea
equipment, comparing the measurement data with a baseline
3D model stored in its internal memory, and then detecting any
changes, or damage, between the two.
Over time, the AUV builds up an inspection inventory that
it will use to detect subtle changes that may go unnoticed using
conventional inspection technology. Today, ROV companies
pay operators to sit and stare at screens for hours and hours on
end, Jacobson said. That is a lot of manpower and those people
get tired, and when people get tired, they miss things. The AUV,
he added, does not get tired, nor does it require a crewchange.
While carrying out an autonomous inspection, the Marlin
will use its high-definition video and still cameras, along with
sonar or laser sensors, to record images of the systems and
structures it is checking on. What it is doing at the same time
is detecting changes and flagging the operator, Jacobson said.
Preset commands tell the AUV that when it detects a change,
however small or large, to investigate the problem further by
getting closer to take photos, video, and detailed scans from
The Marlin Mk3 uses a suite of navigation and mapping systems to simultaneously pinpoint its location while mapping
the surrounding area with great detail. Image courtesy of Lockheed Martin.

53 JPT JANUARY 2014
multiple angles. There might be 2 days of video, but does the
operator have to watch 2 days of video to be cued up to what the
significant issues are? Not necessarily, he said. With the auto-
matic flagging system, inspection engineers can skip over the
innocuous and fast forward to where the problems have already
been identified by the AUVs software.
In 2011, Lockheed Martin and Chevron completed a series
of demonstrations in the Gulf of Mexico of the shallow-water
Marlins change detection software. Then in 2012, Chevron
field-tested Lockheed Martins real-time 3D georeference mod-
el-building software, again with the shallow-water Marlin,
to inspect 14 offshore sites in the Gulf of Mexico, including
11 standing structures. Over the course of the 2-week opera-
tion, the AUV was in the water for a total of 62 hr and covered
nearly 76 miles in depths up to 125 ft (38 m). It took less than
a day to download the data and generate 3D models of each of
thestructures.
The Marlins change detection technology is also designed
to monitor flowlines and pipelines that may have moved or
become suspended across subsea berms. When production is
starting up or shutting down, the temperature in the pipeline
changes quickly. This can cause a thermal expansion or con-
traction of the pipes materials, which can then force entire sec-
tions to move out of place. This phenomenon, known as walk-
ing, can contribute to fatigue and serious failures at tiebacks
and riserhookups.
Light Intervention
Like the Marlin, the underlying technology inside Saab Seaeyes
Sabertooth AUV is military born, originally conceived for hunt-
ing explosive mines and designed to carry a payload of sensors
including cameras and sonar. The technology inside the Saber-
tooth was field proven, not in the deep waters of the US Gulf of
Mexico or offshore Brazil, but high in the Rocky Mountains of
Colorado. In 2011, Hibbard Inshore, an ROV company specializ-
ing in underwater industrial inspections, deployed the military
version of the AUV in a 9-mile (15 km) water transportation tun-
nel used to supply water to a hydroelectric dam. Using the AUV,
the customer incurred zero loss in revenue. Traditionally, this
operation was very expensive and difficult, because you had
to drain the tunnels and that costs a fortune, Jan Siesj, chief
engineer at Saab Seaeye, said.
The Sabertooth has an excursion range of about 25 miles
(40 km) and can be depth rated up to 9,842 ft (3000 m) for
deepwater operations. Subsea equipment maker Aker Solutions
has partnered with Saab to fully integrate the technology with
its subsea production systems. Aker has also completed design
studies for a subsea control module for the Sabertooths dock-
ing station at which the AUV can power up and upload data in
between missions.
By geotagging each aspect of the inspection and using feature-based navigation, AUVs such as the Marlin are able
todetect changes much quicker and more dependably than conventional visual inspections that rely on humans.
Image courtesy of Lockheed Martin.
MARLIN MK3-V1
Payload Capacity
Wet Weight350 lb (160 kg)
Volume20 ft
3
(0.57 m
3
)
Power4 kw peak
Endurance 33 hr (mission dependent)
Speed 05 kn
Range 100 nmi (185 km)
Depth Rating 13,124 ft (4,000 m)
Length
Width
Height
17 ft (5.2 m)
3 ft (0.9 m)
4 ft (1.4 m)
Weight in Air 5,500 lb (2,500 kg)
ROBOTIC SUBMARINES
54 JPT JANUARY 2014
One of the misconceptions that engineers are trying to put
to rest is that AUVs are unequipped to operate the controls on
a subsea system, which involves using a manipulator arm or a
torque tool to turn various sockets and valves. The Sabertooth
is among the first commercially available resident AUVs capa-
ble of these operations, termed light intervention. People think
they need hydraulic power, Siesj said regarding an AUVs abil-
ity to operate valves. You can actually do it just as well with a
small electrical tool, but you need a vehicle with a high degree
of maneuverability so you can be oriented to where you want to
put the tool.
With this need in mind, the Sabertooth was designed to be
very nimble, so that it can swim inside manifolds and under-
neath equipment for close inspection. Its thrusters and buoyant
design allow it to pivot 360 on its axis and maintain its posi-
tion at any angle, which means it can work facing straight up
or straight down. Although the vehicle was designed to oper-
ate independent of human controllers, it is a hybrid system. If
the vehicle is connected using a tether or radio link, it may be
manually operated. When used as a resident system, the Saber-
tooth recharges itself in a protective docking station where the
AUV can begin uploading sensor data, video, and sampling data
to onshore using an Ethernet connection. Using a hydrophone,
the Sabertooth is even able to listen for oil or gas leaks. If a leak
is detected, the AUV can take up to four environmental samples
and send the resulting analytic data back to the operator.
Several operating companies have shown interest in the
Sabertooth, including Chevron, which sponsored a project in
late 2012 to demonstrate the AUVs data harvesting capabilities.
During the tests, the AUV retrieved data wirelessly from a sub-
sea sensor and then physically connected to the sensor to trans-
fer data through a hard link.
The test determined the useful range of an aftermar-
ket communication system and was carried out under both
lake and open sea conditions. In another study, completed for
Exxon Mobil, the AUVs reliability as a backup solution should
an emergency occur in a remote subsea area, such as the Arctic
where most support vessels are unsuited to operate during the
winter months. If you are in the Arctic and it is frozen all over,
Siesj said, when something happens, you need to be able to
go out to find out what it was and possibly turn a valve to shut
something down. In Arctic scenarios, AUVs such as the Saber-
tooth could serve as early warning systems for the particular-
ly real threat of ice scouring and could alert operators quickly
about oil or gas leaks, or even shut in production. If the AUV is
unequipped to remedy the problem right away, you will always
be in a situation where you will gain time, whether it be hours
or days if you have something already there in the field that can
go out and investigate for you, Siesj said.
Communications
Last year, the Sabertooth was tested by Eni Norway in the
fjords just off Hammerfest, Norway, located more than 300
Saab Seaeyes Sabertooth AUV comes in two models:
single hull and double hull (which has twice the battery
capacity of singe hull). Image courtesy of Saab Seaeye.
A computer illustration shows the Sabertooth AUV
carrying out light maintenance, inspection, and
intervention work inside a subsea manifold.
Image courtesy of Saab Seaeye.
SABERTOOTH AUV (DOUBLE HULL)
Endurance >14 hr (mission dependent)
Battery Capacity 20 kW-hr
Speed 0-5 kn
Range 100 nmi (185 km)
Depth Rating 9,842 ft (3000 m)
Length
Width
Height
12 ft (3.7 m)
2.1 ft (0.66 m)
1.4 ft (0.45 m)
Launch Weight 2,314 lb (1050 kg)

55 JPT JANUARY 2014
miles north of the Arctic Circle. During the test, the AUV used
beams of blue photons to communicate with a seabed sen-
sor at a distance of almost 200 ft (60 m). Called BlueComm,
the technology was developed by Woods Hole Oceanograph-
ic Institution, the largest oceanographic research facility in
the US. The institution partnered with Sonardyne, a subsea
communications systems maker, to bring the system to the
offshoreindustry.
Wireless optical systems, such as BlueComm, will be
used to establish an infield communication network between
various subsea production systems, vessels, and AUVs. Blue-
Comm transmitting and receiving units installed on an AUV
and on subsea sensors can share data at a rate of more than
20MB/s across almost 500 ft (150 m) of seawater. This broad-
band data stream allows operators to receive high-definition
video in real time when the system is integrated with a sea-to-
shore link.
The technology is an evolutionary leap for subsea com-
munications that for more than 40 years has relied on acous-
tic sound waves to transmit much smaller bits of data. With
acoustics, we can transmit about 6 kB of data, which is pretty
fast, Ralph Gall, technical sales manager at Sonardyne, said.
Six kB is a lot, but 20 MB is massive and gives you the abil-
ity to send video over 150 m, which is a big deal in the subsea.
The technology also applies to data harvesting and signifi-
cantly reduces the time it takes to upload data compared with
current technology. With an optical communication system,
sensors and AUVs that have been logging data for long periods
of time, but are not connected to a subsea Internet, can upload
gigabytes of information in minutes to a visiting surface vessel
equipped with a lower bandwidth commutation system. By low-
ering a communications device known as a depressor equipped
with a receiver unit on its end, vessels and crews would not be
required to spend valuable time at sea physically recovering the
AUV or sensors, downloading the data, and then redeploying
each system.
Saab Seaye is also testing other ways of communicating,
such as electromagnetic antennas and short communications
tethers. Electromagnetic communication has been used by var-
ious branches of the military in both underwater and under-
ground scenarios. Using this technology, the antenna can be
built into the AUV and allow for high bandwidth communica-
tion rates as high as 10 MB/s when the vehicle is in close prox-
imity to a docking station. Other companies are also working to
solve problems that will expand the applications of AUVs even
further, such as how to communicate through layers of ice and
improve the redundancy of subsea communication networks to
make the vehicles more efficient and safe.JPT
Tested offshore Norway, a Sabertooth AUV used a BlueComm communications system to receive data at a rate of
6million bits per second from a BlueComm transmitter (inset) across a distance of 200 ft (60 m). Photos Courtesy of
Saab Seaeye and Sonardyne.
THE POWER OF COLLABORATION
56 JPT JANUARY 2014
The inaugural SPE Kuwait Oil and Gas
Show and Conference (KOGS), held
710 October 2013 in Kuwait, attracted
more than 3,000 delegates representing
major oil and gas companies from all over
theworld.
The event, under the patronage of
Kuwaits Prime Minister Sheikh Jaber
Mubarak Al-Hamad Al-Sabah, carried
the theme The Power of Collaboration...
People and Technology in the Oil and
Gas Industry,
Hosnia Hashim, KOGS conference
program chairperson and vice president
of operations at Kuwait Foreign Petro-
leum Exploration Company (KUFPEC),
said that the gathering allowed explo-
ration and production professionals to
network with colleagues from around
the world and celebrate key successes in
the industry. For the first time ever in
Kuwait, she said, we launched a techni-
cal event with outstanding participation,
having received more than 520 papers,
from 104 organizations and 69 universi-
ties, from 37 countries.
In his opening remarks at the Con-
ference Opening Ceremony, Kuwait Dep-
uty Premier and Minister of Oil Mustafa
Al-Shimali, reiterated Kuwaits unflinch-
ing commitment, in its capacity as a
main oil producer, to ensuring regular
supplies to world markets. This confer-
ence is timely and logical, as the Kuwait
oil sector is undertaking plans to ensure
that it meets and fulfills its international
role as a reliable supplier. We have allo-
cated billions of US dollars to reach pro-
duction capacity of 4 million BOPD by
2020. An international exchange of tech-
nology and experience is critical to real-
izing these plans, Al-Shamali said.
Kuwait Unveils Upstream Opportunities
Abdelghani Henni, Middle East Writer
Ali Rashed Al-Jarwan, CEO of Abu Dhabi Marine Operating Company (ADMA-OPCO), (left) and Kuwaiti Deputy Premier
and Minister of Oil, Mustafa Al-Shimali, during the inaugural SPE Kuwait Oil and Gas Show and Conference.
KuwaitJan.indd 56 12/17/13 3:24 PM

57 JPT JANUARY 2014
At the Executive Plenary Session,
Nizar Al-Adsani, chief executive offi-
cer of Kuwait Petroleum Corporation
(KPC), aentation titled Kuwait Experi-
ence: The Power of Collaboration, Peo-
ple, and Technology in the Oil and Gas
Industry, that the challenges ahead for
his country are great. The emergence
for new competitors, changes in supply
and demand dynamics, social and envi-
ronmental pressures, and demographic
shifts, are transforming and reshaping
our industry, he said.
Al-Adsani said that technology
has been the driving force behind the
industrys continued ability to deliver
increased oil and gas production safe-
ly, efficiently, and in an environmen-
tally friendly manner, adding that he
believes that the excellence required is
only provided through the strength of
humanresources.
The CEO said that his company is
proceeding with its ambitious plans to
enhance KPCs role in the international
oil industry and to be more effective in
supply security for the worlds energy,
adding that KPC wants to focus on the
upstream. Achieving our crude oil pro-
duction growth target of nearly 1 mil-
lion BOPD by 2020, and maintaining it
through 2030, depends on the success-
ful implementation of advanced technol-
ogy in both improved and enhanced oil
recovery, he said.
Kuwait aims to spend USD 100 bil-
lion over the next 5 years on development
projects, with 60% spent on upstream
project expansion inside and outside of
Kuwait. This is in addition to escalat-
ing operating costs as our fields mature.
These great challenges cant be met and
overcome by ourselves, Al-Adsani noted.
It is our strategy to invest to maintain
excess capacity, which has proved so far
to be a correct strategy.
Moreover, the additional produc-
tion capacity will come from geologically
complex reservoirs, which require high-
ly skilled people. The skills required to
develop such complex and difficult res-
ervoirs and achieve such a production
capacity are not sufficient in terms of
skills, or expertise, or know-how. We def-
initely need the assistance of the differ-
ent IOCs to work with us, in an acceptable
form of win-to-win basis, to achieve all of
these strategic targets, Al-Adsani added.
Speaking about relationships with
IOCs, the CEO of KPC said that these
partnerships should fulfill overall Kuwait
strategic interests and concerns. In
these relationships, we focus on several
issues such as the transfer of technolo-
gy, promoting the skills of our nationals
in various disciplines, bringing in man-
agement processes, and leveraging with
them for maximum benefit. We are fully
aware of the need to partner with IOCs
but also we are very careful about ensur-
ing an effective future role of IOCs in the
Kuwait oil industry that will eventually
add value in our understanding and per-
ception, he said.
Despite the collapse of the USD 17
billion joint venture between Kuwaits
Petrochemical Industries Company (PIC)
and the US Dow Chemical, where Dow
subsequently sued PIC and was awarded
more than USD 2 billion in damages by an
international court in 2012, Kuwait will
continue to explore and develop partner-
ships with international oil companies on
many industry fronts.
Al-Adsani said that the key for mak-
ing the industry more efficient is, with-
out doubt, technological advancement.
Cyber Security Thoughts
John Fridye, cyber security engineer at Ventyx, an ABB Company, says
multi-layer systems are the best solution to counter cyber attacks.
As a cyber security engineer, what are your main duties within Ventyx?
Ventyx offers enterprise software solutions for energy, mining, and other
industries. Within Ventyx, I am focused on network control products, which
include energy management and SCADA control systems. We have a broad
focus on network control because it is critical for companies we deal with.
Outside of network control, ABB and Ventyx have a wider cyber security
presence, where ABB has a cyber security council made up of members of
different product lines. Ventyx is in charge of the power systems group, but
there are people from all different groups like robotics, automation, and many
other groups.
As an engineer specializing in cyber security, what are the challenges facing
developers of cyber security solutions or technology?
The challenge is to define a process, which means defining your design
methodology, which we call a threat-modeling analysis. It aims mainly at
looking for what could be avenues of attack at your product line. After that,
the threat model analysis looks at what security controls you design that block
those avenues of attack, and then you go through the test phase to ensure that
these security controls are indeed effective against particular threats to your
products, and then you can implement the product and deliver it to customers.
It is an ongoing process.
Are there any specific security control systems that help you build the cyber
security system?
There are many types of security control and many of them are well defined;
in addition, there are many defense mechanisms that can be used and one of
them is called defense in depth. If you penetrate one security control there is
another one behind it, and we call that the onion model, because you have to
pile through the layers to get down to the core you want to attack. So, if you
have that defense in depth, that is a key defense of your critical systems.
THE POWER OF COLLABORATION
58 JPT JANUARY 2014
Technology is vital across the energy
landscape and in the field of clean energy
production in order to serve and preserve
the environment. The oil industry has a
long history of innovation to generate
new sources of supply, he said. There
is no country in the world that can insu-
late itself from changes in the oil market,
whether positive or negative.
Hashem Hashem, CEO of Kuwait
Oil Company (KOC) and chairperson of
the KOGS Executive Committee, stated
that his company is contributing to the
countrys socioeconomic development
and looks forward to the future through
increasing oil output, meeting compa-
ny development requisites while helping
maintain the stability of world markets.
Khaled Al-Buraik, vice president for
petroleum engineering and development
at Saudi Aramco, said in his Plenary Ses-
sion presentation that technology, peo-
ple, and collaboration work together in
the quest for business excellence. Tech-
nology is the cornerstone of what oil
and gas companies do, and major players
including Saudi Aramco are transform-
ing into technology developers. Our
goals are for breakthrough, disruptive
technologies, Al-Buraik said.
As such, the goals are very long
term and carefully calibrated to objec-
tives. This research stresses fundamental
science. It also calls for synergy among
the sciences and other disciplines of
Saudi Aramcos business. We are break-
ing down organizational barriers in pur-
suit of technology breakthroughs.
Development of people is also cru-
cial for oil and gas companies, particu-
larly a commitment to lifelong learning,
he said. Al-Buraik said that Saudi Aramco
has a large program to cultivate science
and engineering skills among high school
students in Saudi Arabia. The compa-
ny recruits directly from high schools,
including apprentices for vocational
careers and students whom it sponsors
for university education and professional
employment. We send our professionals
on to masters and doctoral programs,
he said. In-house programs such as the
new Upstream Professional Develop-
ment Center are game-changers for on-
boarding much-needed talent. All told,
the companys training and development
budget is among the largest in the world.
Collaboration is also key to the pros-
perity of the industry, not only internal-
ly among disciplines, but also external-
ly with other institutions. We operate
numerous other joint ventures in the
kingdom and abroad. Adjacent to our
headquarters and King Fahd University
of Petroleum and Minerals is the extra-
ordinary new Dhahran Techno- Valley, a
science park with a collaborative atmo-
sphere housing research centers of GE,
Honeywell, Baker Hughes, and many
more, Al-Buraik said.
Companywide, Saudi Aramco plans
to increase research spending fivefold.
It will also triple its manpower in sci-
ence and technology. Mostabout
80%of this growth will be in Dhah-
ran, but we also are opening upstream
and downstream satellite research cen-
ters around the globe in partnership with
the automotive industry and leading
academicinstitutions.
Patrick Pouyanne, president of
refining and chemicals at Total, said the
relationship between national oil com-
panies and international oil companies
is that they share a common objective,
which is bringing energy to people. In
this type of collaboration, IOCs propose
technology, project management, and
financing, as well as acceptability to the
market, he said. As an IOC, we always
aim to bring value to host countries for
win-winpartnerships.
As an IOC, Total works on answer-
ing host countries expectations in terms
of transferring know-how, accompany-
ing NOCs in their ambitions beyond
theirboundaries.
Delegates attending the KOGS event
agreed that collaboration is key to the
industrys success amid the growing chal-
lenges facing the oil and gas sector. Over-
all, the event offered the opportunity to
network with industry peers, and also to
learn more about oil and gas investment
opportunities in Kuwait. JPT
Hashem Hashem, CEO of Kuwait Oil Company (KOC).
2013 Halliburton. All rights reserved.
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TALENT & TECHNOLOGY
60 JPT JANUARY 2014
One could compile an extensive bibli-
ography written about the big crew
change over the past several years. The
short story is that although the human
resource emergency that the oil and
gas industry has decried during the
past decade has slowed, it has not dis-
appeared but merely been delayed. The
industry continues to face a shortage of
skilled workers in the 10 to 20 years of
experience category, which is affecting
the staffing of midlevel management jobs
and, subsequently, senior level manage-
ment positions.
Estimates show a net outflow of
5,500 people at the petrotechnical pro-
fessional level in the oil and gas indus-
try. The immediate ramifications of this
decline in experienced human capital
will be heavy recruitment of staff from
competitors, which will continue to
drive salaries higher. With the cost of
a barrel of both West Texas Intermedi-
ate and Brent crude still around USD
100/bbl, projects will continue to be
economic, thus increasing the need for
experienced hires. But the 5,500-person
net outflow says that companies may be
unable to properly staff these projects,
which could result in delays or the pos-
sibility of less experienced staff running
them, with potentially risky outcomes
in safety and downtime. All of these fac-
tors increase costs for oil producers.
However, quantity is not the only
risk; quality (i.e., real-world experience)
is also a factor. Could the overpromotion
of less experienced professionals put
projects at risk for safety and downtime
problems? Many projects are only as
good as the individual managing them.
Project leaders must focus on the prop-
er balance of the quality of work, tim-
ing, supply of equipment and people,
safety, and the bottom-line profitability
for all parties to be satisfied. These are
all strong management and leadership
skills that can be found in other indus-
tries, which have devised and imple-
mented best practices. If the proper
general manager of a project is selected,
he will surround himself with techni-
cal experts, thus allowing a focus on the
core skills and abilities that he brings
to the company, rather than strictly the
technical knowledge of the project. This
opens up the industry to looking at mid-
career leaders in the heavy industrial
and civil construction industry, mining
industry, or even the military.
Effect on Senior Management
So what do these midlevel staffing issues
mean in the long term? For starters, the
industry will have a smaller pool of talent
to choose from when looking at senior
management succession planning. There
could also be the real possibility that
there are no qualified employees from
which to choose within a company. This
may cause the company to look outside
for talent, which could lead to higher
wages, higher turnover due to compet-
itors poaching from one another, and
increasing one-time costs attributable to
new hires.
If we do not fill the gap, we run the
risk of perpetuating the problem from
which the industry currently suffers.
When those at the top retire, the pool of
talent to choose from within the industry
will be considerably younger. When this
younger crop of talent is appointed to
top positions, they will naturally remain
in those roles for a longer period of time,
making those behind them wait longer
to rise to executive roles. For some high-
potential midlevel management individ-
uals to reach the top, they may consider
leaving the industry to see their career
aspirations come to fruition.
A Balanced Approach
To solve the skills gap cycle, a four-
pronged approach is necessary. The
approach incorporates short- and long-
term strategies, thinking outside the
norm when making hiring decisions, and
implementing organizational develop-
ment strategies that put the onus on both
the company and employees.
Be open to hiring managers, both
mid and senior levels, from outside
the industry. By opening up manage-
rial roles to those from other industries,
the oil and gas industry can import
best practices into the energy indus-
try that it may not have knowledge of
or experience with, as well as help fill
some of the gap that exists in midca-
reer employees. Consider an individual
who currently works for a company that
provides field development and produc-
tion contracting services to the energy
industry, and is particularly technology
focused. This individual worked in the
medical industry as an engineer leading
groups of other engineers and provid-
ing installation and operations support
services to clients for almost a decade.
He then moved on to provide engineer-
ing and construction project manage-
ment services to the construction and
infrastructure industries. This large and
technically complex project manage-
ment background has proven invalu-
able to the individuals current employ-
er and has given the company an edge
Taking a Balanced Approach
to the Technical Skills Gap
Joy Brown Kirst, Managing Partner, Park Brown International
TalentTechJan.indd 60 12/17/13 3:01 PM

61 JPT JANUARY 2014
over some of its competitors with new
approaches to old problems.
An example of an executives
appointment is exemplified by the
following:
Arthur Soucy is president for
Europe, Africa, and Russian Caspian at
Baker Hughes, and formerly was presi-
dent of global products and services at
the company. Before that, he was the
companys vice president of supply chain,
responsible for sales and operations
planning, manufacturing, purchasing,
transportation and logistics, and qual-
ity. Before joining Baker Hughes, he was
vice president of global supply chain at
Pratt & Whitney, a United Technology
company. Soucy held a variety of man-
agement positions at Pratt & Whitney.
He also spent a decade working at Ham-
ilton Standard, serving in various man-
ufacturing, engineering, and product
development management roles. Soucy
has an MBA degree from the Massachu-
setts Institute of Technology with a con-
centration in global innovation and inter-
national business and a bachelors degree
in international business from Lesley
University in Massachusetts. Soucys
story proves that someone who is not an
engineer by academic background and
does not have energy industry experi-
ence is capable of becoming an executive
at one of the top oilfield service compa-
nies in the world.
Use organizational and talent devel-
opment as a strategic and competitive
tool. Strategic human resources is the
management of human resources aligned
to the organizations future direction,
focusing on longer-term human capital
issues and macro concerns about struc-
ture, quality, culture, values, and match-
ing resources to the future needs of
theorganization.
The Economists Talent Manage-
ment Summit held in London in 2013 rec-
ognized that talent is no longer an issue
confined to the HR department, but is
rising to the top of the agenda for senior
executives across the board (www.
economistconferences.co.uk/event/
talent-management-summit-2013/7232).
Companies in the energy sector must
facilitate the involvement of human
resources at strategic decision-making
levels to ensure that a culture is creat-
ed that sends a clear message to current
and future employees that leadership tal-
ent is highly valued within the organiza-
tion. This can be supported by leader-
ship development programs tailored to
meet both the employees specific devel-
opment needs and the companys profile
for futureleaders.
To facilitate the desired effect,
human resources professionals must be
seen as true strategic partners. Senior
executives seeking a competitive advan-
tage by attracting, developing, and
retaining more than their fair share
of the industry leadership talent must
seek and hire the best strategic human
resources practitioners regardless of sec-
tor background.
For entry-level to mildly experienced
hires, consider individuals with com-
plementary skill sets from other indus-
tries. There are a number of intelligent
first-year college students who do not
initially set out to become engineers or
scientists. There is a good chance that a
person with an undergraduate degree in
mathematics or economics knows enough
about crunching numbers and analysis
that they could be taught how to apply
those skills to the energy industry. Every
company out there is courting the fill-in-
the-blank engineers, and not everyone is
going to get them. Why not consider look-
ing at strong analytical types and putting
them into a rotational development pro-
gram in your company to find where they
best fit? Also, companies should commit
to leadership or leadership potential as a
desirable skill when recruiting these indi-
viduals. Selling upside career opportunity
to new graduates may just net the orga-
nization individuals who may have cho-
sen another offer otherwise. In addition,
using these criteria when recruiting less
experienced employees may aid organi-
zations in their quest for succession plan-
ning in their ranks.
This is true for slightly more experi-
enced people as well. Most military per-
sonnel enter the energy industry without
engineering degrees. Others have gone
from civil engineering roles designing
roads for government projects to sub-
sea design engineering, and have done
quite well for themselves and the compa-
nies they joined. Many times in an expe-
rienced hire, one needs to look more
closely at the creativity and leadership
capability of the candidates as opposed
to checking the boxes of preferred hard
skills and experiences.
Consider long-term options to increase
the pipeline of talent into the industry.
Looking for talent development at the
collegiate level is not enough. While it
can be helpful to recruiting efforts to pro-
vide internships, scholarships, and work-
study options to undergraduate students,
more needs to be done to entice students
to become science, technology, engineer-
ing, and math majors. Companies should
be looking at increasing awareness of this
type of education at the middle and high
school levels or potential engineers and
scientists may be lost to another major
in college.
Conclusion
While these suggestions may be nontra-
ditional and not easy to implement, com-
panies that desire to get ahead in the war
for talent could use them to have an edge
over their competitors. The strategy will
not produce immediate effects today or
tomorrow, but will be advantageous in
the long term. JPT
Joy Brown Kirst is a managing partner
with Park Brown International.
After positions with Western Atlas
International and Heidrick & Struggles,
she became vice president at an
executive search firm overseeing energy
industry searches in North and South
America, Europe, and the Asia Pacific.
She holds a degree in Russian and East
European Studies and an MBA from
Rice University.
TalentTechJan.indd 61 12/17/13 3:03 PM
62 JPT JANUARY 2014
Omer Gurpinar,
SPE, is the
technical director
of enhanced oil
recovery (EOR) for
Schlumberger. He
leads Schlumberger
in development of technologies and
services to help improve recovery
factors in oil fields. Gurpinar has more
than 35 years of industry experience in
various aspects of numerical reservoir
modeling, with specific focus on
naturally fractured reservoirs, reservoir
optimization, and EOR. He has
contributed to recovery optimization
for numerous oil and gas fields
globally. Since joining Schlumberger
in 1998, Gurpinar has served as the
vice president and technical director
in various segments and has played a
key role in building Schlumbergers
exploration and production consulting
organization. He holds BS and MS
degrees in petroleum engineering
and holds several industry patents on
reservoir and field optimization and
EOR. Gurpinar is a member of the JPT
Editorial Committee.
Recommended additional reading
at OnePetro: www.onepetro.org.
SPE 162701 Geomechanics
Considerations in Enhanced Oil Recovery
by Tadesse Weldu Teklu, Colorado School
of Mines, et al.
SPE 166597 BP North Sea Miscible
GasInjection Projects Review
by Pinggang Zhang, BP, et al.
IPTC 17157 The Development of
a Workflow To Improve Predictive
Capability of Low-Salinity Response
by B.M.J.M. Suijkerbuijk, Shell, et al.
SPE 166075 The Upscaling of Discrete
Fracture Models for Faster, Coarse-Scale
Simulations of IOR and EOR Processes for
Fractured Reservoirs by Mun-Hong Hui,
Chevron, et al.
This is the most exciting time for enhanced oil recovery (EOR) in recent memory. At
last, almost everyone is talking about increasing recovery factors, and improved oil
recovery (IOR) and EOR are being considered natural components of reservoir man-
agement. Furthermore, many traditional philosophies are being openly challenged.
EOR planning is happening as part of field-development plans. Proven technologies
are being adapted in new, smart ways, and new technologies are constantly evolving
from research to commercial applications, making EOR projects more economical.
These new directions are the result of the following factors:
Most fields, including the giant ones, are maturing, and producing
liquid hydrocarbons is becoming more difficult in all types of reservoirs
(conventional and unconventional).
Leaving approximately 70% of the in-place reserves unrecovered has been
challenged.
There have been developments on many fronts (e.g., advanced reservoir
characterization, multiphase-flow physics, smart-well and intelligent
completions, recovery research, monitoring and control technologies, EOR
chemicals, EOR pilot concepts, and observation-well concepts); the collective
effect of all of those is going to make new EOR projects more successful.
Increasing recovery factors has been considered a fully integrated
multidomain activity (from pore space to separator and everything in
between).
Severe production decline in tight/light (unconventional) reservoirs is making
the industry think about recovery challenges.
EOR has been considered during field-development planning in most recent
offshore oil developments.
We lived through the most active period of EORbetween the mid-1970s and the
mid-1980sand learned about recovery fundamentals then. However, if we look back
at that era carefully, most of the wells were single and vertical; reservoir characteriza-
tion was very elementary, with no digital geological modeling capabilities; and there
were no concepts such as monitoring systems or intelligent completions. All of those
factors created a significant gap between what was planned in the EOR laboratory and
what was achieved in field application. Other than those implemented in extreme-
ly viscous oils (heavy-oil EOR operations), projects recovered far less than planned.
Overall, such recovery gave a stigma to EOR as inherently difficult and expensive. Most
of the factors that made EOR difficult and expensive are gone today. That is why we
will see more fields using EOR operations in upcoming years.
Broadening the scope of recovery challenge to all domains will make realizations
of new reserves more likely, but this change will bring additional challenges.
TECHNOLOGY
EOR PERFORMANCE
AND MODELING
1EORFocusJan.indd 62 12/12/13 11:09 AM
63 JPT JANUARY 2014
F
oam simulation brings various
numerical challenges. Some of
these problems are largely cosmetic,
creating, for instance, fluctuating
fluxesand pressure gradient but no
significant effect on final recovery.
Others severely influence the whole
progress of the flood. This paper
discusses the origin of the challenges,
how to recognize them, how they
can be mitigated, and whether they
arise from a correct representation of
foam physics or are the unintended
result of attempts to solve other
numericalproblems.
Introduction
Injected gas [carbon dioxide (CO
2
), hy-
drocarbon gas, nitrogen, or steam] can
be very effective at displacing oil in
enhanced-oil-recovery (EOR) processes,
but ultimate recovery suffers from poor
sweep efficiency. Poor sweep efficiency
arises from reservoir heterogeneity, vis-
cous instability, and gravity override of
gas. Foam can address all three causes
of poor sweep efficiency. Foam is a dis-
persion of gas separated by water films
called lamellae that separate the gas into
bubbles; the lamellae are stabilized by
surfactant. Thus, foam requires the pres-
ence of gas, water, and surfactant.
Two fundamental approaches exist
for representing the effect of foam on
gas mobility. Population-balance mod-
els introduce lamella density (number of
lamellae per unit volume of gas phase)
as a separate variable and perform a
balance on lamellae at each location in
the formation, along with material bal-
ances on water, gas, surfactant, and oil.
Thus, an additional partial-differential
equation must be solved at each location
and timestep, along with those for satu-
rations of the phases. The model then
represents gas mobility as a function of
lamella density and other factors.
Local-equilibrium (LE) models as-
sume that the processes of lamella cre-
ation and destruction are always and
everywhere at local steady state. It is
possible to adapt a population-balance
model to LE by setting the expressions
for lamella creation and destruction
equal to each other. Most LE models,
however, represent the effect of bubble
size implicitly in relations for gas mo-
bility as a function of water and oil satu-
rations, surfactant concentration in the
aqueous phase, and other factors.
Foam can be injected in at least
fourways:
1. In coinjection, gas and aqueous
surfactant solution are injected
simultaneously from a single
well. Foam forms in the surface
facilities where the fluids meet,
in the tubing, or shortly after the
fluids enter the formation.
2. In surfactant-alternating-
gas (SAG) injection, gas and
surfactant solution are injected
in separate slugs from a
single well. Foam forms in the
formation where gas meets
previously injected surfactant
solution or when surfactant
solution meets previously
injected gas.
3. It is possible to dissolve some
surfactants directly into
supercritical CO
2
. Then, there
is no need to inject aqueous
surfactant solution; injected CO
2

with dissolved surfactant forms
foam as it meets water in the
formation.
4. Surfactant solution and gas
can be injected simultaneously
from different sections of a
vertical well (gas injected below
the surfactant solution) or
from parallel horizontal wells
(gas injected from the lower
well). Asfar as we know, this
approachhas not been tested
with foam in thefield.
Simulating each of these injection
methods involves particular challenges.
Challenges to Foam Simulation
Effect of Water Saturation. Gas, as the
nonwetting phase, is at higher pressure
than water in the geological formation;
this difference is (gas/water) capillary
pressure. Capillary pressure draws water
out of lamellae; therefore, high capillary
pressure is destructive to foam.
Fig. 1 shows the gas relative perme-
ability function with a large reduction in
gas mobility.
SAG Injection: Fluctuating In-
jectivity During Gas Injection. Fig. 2
shows total relative mobility
rt
with
foam (the sum of water and gas mobili-
ties) as a function of water saturation S
w

for the model in Fig. 1. During gas injec-
tion in an SAG process, there is a shock
front at the leading edge of the gas bank
from the initial state of the reservoir to
a point of very low water fractional flow,
where foam has partially collapsed. Thus,
the water saturations that would have the
greatest mobility reduction with foam
are not experienced in the reservoir ex-
cept within the shock front of negligi-
ble width. In a finite-difference simula-
tion, however, each gridblock at the foam
Foam Simulation Faces
Several Numerical Challenges
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
This article, written by Special Publications Editor Adam Wilson, contains highlights
of paper SPE 166232, Numerical Challenges in Foam Simulation: A Review, by
W.R. Rossen, SPE, Delft University of Technology, prepared for the 2013 SPE Annual
Technical Conference and Exhibition, New Orleans, 30 September2 October. The
paper has not been peer reviewed.
EOR166232.indd 63 12/12/13 1:21 PM
64 JPT JANUARY 2014
front passes through all those satura-
tions and, thus, the mobility reduction at
the foam front is overestimated. At least
one gridblock at the leading edge of the
foam bank has a mobility computed to
be below that anywhere in the foam bank
itself. As this gridblock passes through
the minimum in mobility in Fig. 2, the ef-
fect on overall injectivity can be large. In
extreme cases, where the foam collapses
completely behind this shock, this one
gridblock can mask the problem and give
diversion of gas flow in the simulation
that would not occur in reality.
This problem reflects the finite-
difference formulation of the foam dis-
placement, not an inability of the simula-
tor to solve the finite-difference equations.
SAG Injection: Calculating Injec-
tivity. The gridblock with the injection
well likewise must pass through the min-
imum in mobility in Fig. 2. Injectivity
is conventionally calculated by assum-
ing a uniform saturation and mobility
in the injection-well gridblock and using
the Peaceman equation. Therefore, for
a time, injectivity in a simulation of an
SAG process is extremely poor. In real-
ity, the near-well region crucial to injec-
tivity rapidly dries out and injectivity is
much greater than estimated in a finite-
difference simulation.
Fine-Scale Capillary Effects. Be-
cause foam is sensitive to water satura-
tion and capillary pressure, capillary ef-
fects on foam near abrupt transitions
in permeability can be significant. Simi-
larly, in flow parallel to an abrupt layer
boundary, capillary pressure can draw
water from the higher-permeability layer
and weaken or destroy foam in a narrow
zone near the boundary. In both cases,
the affected region is small in width but
influences flow over a much larger scale.
Accurate modeling of the effects with
larger gridblocks remains a challenge.
Effect of Water Saturation: Miti-
gation. The sensitivity of foam to cap-
illary pressure and water saturation in-
troduces two problems: Individual
gridblocks experience mobilities and sat-
urations not present in the displacement
except within the shock (Fig. 2); also,
abrupt changes in mobility in individual
gridblocks introduce oscillations that are
unsightly and may challenge the stability
of the simulator. Reducing the magnitude
of the gas-mobility reduction with foam
reduces both problems, if a smaller value
is justified by the data.
Similarly, the overall effect of the
artificially low computed injectivity de-
creases as the size of the injection-well
gridblock is reduced. Also, the fraction of
overall injection-well pressure dissipated
in that gridblock decreases (though more
slowly) as gridblock size is reduced.
Finally, gas compressibility reduc-
es the effect of fluctuating mobility at
the foam front on injection-well pres-
sure, especially as the size of the foam
bankincreases.
Effect of Surfactant Concentration.
The effect of surfactant concentra-
tion on gas mobility in foam is non-
linear, with most of the effect coming
at low concentrations. In the absence
of dispersion (physical and numerical),
two surfactant concentrations primar-
ily matter to a foam process: the ini-
tial concentration in the reservoir (i.e.,
zero surfactant concentration) and the
injected concentration. In the absence
of significant physical dispersion, nu-
merical dispersion rapidly spreads the
surfactant front from its initial sharp
profile over many gridblocks, though
surfactant adsorption (if modeled with
a Langmuir isotherm) helps to sharpen
the front.
If the true effect of surfactant on
foam mobility is combined with numeri-
cal dispersion of the surfactant front, the
foam bank is extended beyond where it
should lie, toward the leading edge of the
dispersed front, and the arrival of foam at
any location is earlier and more gradual
than it should be.
Effect of Surfactant Concentra-
tion: Mitigation. As with water satu-
ration, the less abrupt the rise in gas
mobility with decreasing surfactant con-
centration, the smaller the effects. In this
case, the artifacts arise from an abrupt
change not required to match data but as
the unintended consequence of trying to
mitigate another problem, the effect of
dispersion of surfactant concentration.
Fig. 1Water and gas relative permeability (k
ri
) with and
without foam and for one foam model.
Fig. 2Total relative mobility
rt
as a function of water
saturation S
w
for the model in Fig. 1. In an SAG process,
there is a shock from the initial state ahead of the shock
past the water saturations with lowest mobility. In a finite-
difference simulation, each gridblock passes through all
of the intermediate water saturations as the foam front
enters the gridblock.
k
r
i
0 0.2 0.4 0.6 0.8
10
0
10
1
10
2
10
3
10
4
10
5
10
6
Water
Gas, no foam
Gas, foam
S
w

,

d
i
m
e
n
s
i
o
n
l
e
s
s
r
t
0.05 0.25 0.45 0.65 0.85
10,000
1,000

100
10
1
Foam bank
State ahead of foam
S , dimensionless
w
EOR166232.indd 64 12/12/13 1:21 PM
65 JPT JANUARY 2014
Refining the simulation grid reduces the
magnitude of the effect.
Effect of Oil Saturation and Compo-
sition. The effect of oil saturation and
composition on foam is complex and not
fully understood, and there are many
outstanding questions concerning how
to represent the effect of oil on foam. The
effect of oil on foam is sometimes repre-
sented as an abrupt change as a func-
tion of oil saturation. This leads poten-
tially to the same sort of complications
observed with water saturation, as oil
saturation in gridblocks at a foam front
pass through oil saturations where foam
properties change abruptly. The pres-
ence of a third mobile phase introduc-
es an additional, different complication:
Composition paths on the phase diagram
may attempt to travel along a bound-
ary in which foam properties change
abruptly. Maintaining the correct course
in such cases is extremelydifficult.
Effect of Oil: Phase Names. Simu-
lators define foam as an interaction be-
tween aqueous surfactant solution and
gas. In a first-contact or multiple-contact
miscible displacement, the identity of the
nonaqueous phase changes from oil to
gas as the miscible front passes a given
location, and there are only two phases
present at any location: water and gas or
water and oil. Therefore, by definition,
there is no effect of oil on foam: If oil is
present, there is no gas and, therefore,
no foam; if gas is present, there is no oil
to affect the foam. In fact, the effect of oil
on foam in such a case is to abruptly cre-
ate foam (if surfactant is present) when
the simulator changes the name of the
nonaqueous phase from oil to gas.
If the miscible front is ahead of the sur-
factant front, then this effect is unim-
portant; however, in injection of lower-
quality foamor in an SAG flood, where
surfactant injection precedes gas injec-
tion and the miscible front lags the sur-
factant front, at least at firstthis ef-
fect would control the propagation rate
of foam.
Effect of Oil: Displacement Front.
In an immiscible (or partially miscible)
displacement, if oil saturation ahead of
the foam bank is great enough to kill
foam, foam may still displace oil if oil
drains out the gridblock at the lead-
ing edge of the displacement front fast
enough for foam to build. Whether this
would occur in reality depends on the
traveling wave at the displacement front,
where oil is displaced as foam arrives.
Whether this would happen in the simu-
lation depends on how well the simula-
tor, in a single gridblock, represents the
traveling wave.JPT
www.aapg.org/gtw/2014/houston/index.cfm www.aapg.org/gtw/2014/houston/index.cfm
Come See What's New Are Shales Still Exciting?
Fifth Annual AAPG-SPE
Deepwater Reservoirs Geosciences
Technology Workshop
28-29 January 2014 Houston, Texas
Norris Conference Center CityCentre
Determining reservoir connectivity, calculating pore pressure,
understanding the structural subtleties, identifying hazards, and
developing accurate images (including subsalt), are deeply affected by
new multi-disciplinary discoveries in science and technology. While
new discoveries in the Gulf of Mexico, West Africa, East Africa, Brazil,
and the Mediterranean grab headlines, what is going on behind the
scenes affects everyone who works in deepwater offshore.
Exciting developments in our understanding of deepwater structure
and reservoirs, along with new developments in technology, have
helped propel the industry to a new level.
Third Annual AAPG/STGS GTW: Eagle Ford +
Adjacent Plays and Extensions
February 24-26, 2014 San Antonio, TX
This workshop focuses on prospectivity and producibility, with an emphasis on the conditions
and characteristics of successful wells, and the technologies and techniques used in
achieving success.
The productive extent of the Eagle Ford has expanded, thanks to new information and
understanding of the factors that make the formation producible in a particular prospect or
location. The same is true of adjacent formations such as the Buda and the Austin Chalk,
along with Cretaceous extensions of the Eagle Ford, which extend from the Eaglebine to the
Tuscaloosa Marine Shale.
Topics:
Geophysics, regional geology, and Eagle Ford Extensions
Sweet spots, reservoir quality, and the Eagle Ford
Petrophysics
Geomechanical considerations
Drilling the new zones: Lessons learned and Must-Know facts
Compl et i ons: Hydraul i c f ract uri ng, proppant sel ect i on, underst andi ng
reser voi r behavi ors
The right kind of frac: How can geologists help? What can engineers explain?
Decline curves: Seeking and finding answers
Geosciences Technology
Workshops 2014
EOR166232.indd 65 12/17/13 9:13 AM
66 JPT JANUARY 2014
B
P has shown, by use of its
reduced-salinity (RS) water-
injection technology, that incremental
increases in oil recovery can be
achieved across length scales associated
with coreflood experiments (inches),
field-based single-well chemical-tracer
tests (feet), and field trials (interwell
distances). This paper discusses the
process undertaken by the Clair Ridge
project in getting RS enhanced oil
recovery (EOR) adopted as a Day-1
secondarywaterflood.
Introduction
Clair Ridge Field Overview. Contain-
ing more than 6 billion bbl of oil in place,
Clair is the largest oil accumulation in the
UK continental shelf, and it lies 142miles
north of the Scottish mainland and
35 miles west of the Shetland Islands in
132155 m of water.
The Clair A platform is a lightweight-
steel-jacket development that was de-
signed to be economic across the range of
expected reservoir outcomes. The main
risk at startup was whether waterflood of
the fractured reservoir would work.
More than 5 years of production
data indicate that the reservoir produc-
tion mechanism in Clair Phase 1 is work-
ing. There is evidence of displacement of
oil from the matrix by a combination of
viscous sweep, gravity drainage, and im-
bibition of water from the fracture net-
work into the matrix.
Success at Clair Phase 1 has paved
the way for a much larger Clair Phase 2
development. The next phase of develop-
ment will target roughly twice the oil in
place of Clair Phase 1 in an area that has
generally shallower and thicker reser-
voir, known as Clair Ridge. During devel-
opment, various EOR schemes were stud-
ied. Gasflooding of the reservoir would
be hampered by adverse relative perme-
ability factors. These can be improved
by enriching the gas with heavier com-
ponents such as propane and butane;
however, there is not a large source of
these materials in the basin. Modeling
has shown that the open fractures are ex-
pected to provide a shortcut between gas-
injection and production wells. Alterna-
tives such as CO
2
flooding and polymer
flooding were also considered and reject-
ed. Clair is a waterflood reservoir, and
recovery depends on sweeping the large
areas of matrix rock between the conduc-
tive fractures.
What Is RS EOR? RS EOR can be defined
as waterflooding of a sandstone oil res-
ervoir using water with total- dissolved-
solids (TDS) content of less than
2,0008,000 ppm. The RS-flood TDS
threshold shows some variation across
different reservoir/fluid systems, with
consistent enhanced recovery below the
lower end of the range and varied effect
within therange.
Full-reservoir-condition RS EOR
corefloods have been performed on
many reservoir systems across the
world. All tests have shown similar char-
acteristics, with increased oil produc-
tion at water breakthrough and a de-
crease in remaining-oil saturation at the
end of the waterflood tests. RS EOR re-
covers additional oil after both second-
ary (RS water injection from Day 1) and
tertiary (RS injection following higher-
salinity-water injection) waterflood ap-
plications. Figs. 1 and 2 show typical
secondary and tertiary responses to RS
EOR, respectively.
The mechanism for release of addi-
tional oil has been inferred from labora-
tory tests. Organic components in crude
oil are attracted to surfaces through a
mechanism explained by the Derjaguin-
Landau-Verwey-Overbeek theory of col-
loid stability. The mechanism by which
polar organic species in the oil become
attached to charged surfaces involves, in
several cases, cation bridges. RS brines
are able to break the organic-molecule at-
traction to the surface by exchanging the
divalent cation for a monovalent cation
such as sodium.
Selection and Description of Mem-
brane Technologies for RS-EOR Fa-
cilities. Facilities studies considered
numerous desalination technologies
and identified the most suitable, prov-
en technology for the desalination of
seawater offshore to be membrane de-
salination protected upstream by mem-
brane prefiltration to minimize effects
on weight and space.
Membrane desalination relies on ion
rejection by reverse osmosis. The process
requires application of pressure to the
seawater feed to drive water molecules
through semipermeable ion-rejection
membranes, overcoming the osmotic po-
tential of the seawater and generating RS
permeate and more-concentrated reten-
tate (or brine) streams. Upstream, mem-
brane filtration provides the high lev-
els of suspended-solids, organic- matter,
and bacteria exclusion necessary to limit
fouling and maintain operability of the
desalination process. The filtration-
UK Field Benefits From Reduced-Salinity
Enhanced-Oil-Recovery Implementation
of paper SPE 161750, Low-Salinity Enhanced Oil Recovery, Laboratory to Day-1
Field ImplementationLoSal EOR Into the Clair Ridge Project, by Enis Robbana,
SPE, Todd Buikema, Chris Mair, SPE, Dale Williams, Dave Mercer, Kevin Webb,
SPE, Aubrey Hewson, and Chris Reddick, SPE, BP, prepared for the 2012 Abu Dhabi
International Petroleum Exhibition and Conference, Abu Dhabi, 1114 November. The
EOR161750.indd 66 12/12/13 1:26 PM
67 JPT JANUARY 2014
membrane efficiency is maintained by
regular, frequent backwash cycles.
Robust Laboratory Analysis
RS Coreflood Testing. In support of de-
ployment of RS EOR in Clair, a num-
ber of corefloods were performed. These
tests were conducted at full reservoir-
temperature and -pressure conditions
with live fluids.
Core Characterization and Selection.
Intact core pieces were scanned routine-
ly with computed tomography to aid se-
lection of plugging points and to ensure
minimal heterogeneity (especially frac-
turing and lamination). The plug sam-
ples were cleaned by miscible solvent
and had their permeability and porosity
measured by flow-through methods.
Acquisition of Initial Conditions. The
samples were set to initial water satu-
ration by the porous-plate method, and
the samples were then loaded into a test
rig and degassed by injection of refined
laboratory oil. The samples were then
saturated with live (i.e., gassed) recom-
bined Clair oil. The samples were aged
for 3 weeks, with weekly refreshes of the
resident oil.
Coreflood Experimentation. For sec-
ondary recovery, the samples were
water flooded with RS brine in an
unsteady-state mode at a low rate of
approximately 4-cm
3
/h injection in the
laboratory. During this test, oil produc-
tion was recorded and saturation was
monitored in situ. At the end of the test
sequence, the RS brine was displaced
with a doped brine to obtain good in-
situ saturation endpoint data. The bene-
fit associated with RS EOR in the second-
ary mode was then assessed by running
a regular coreflood using connate brine
on a sample cut from the same core piece
and exhibiting properties that were as
similar aspossible.
Experimental Results. Plugs from the
main field experienced significant bene-
fits from secondary flooding across both
of the permeabilities tested, with a shift
of 5.5 saturation units and 7.9 satura-
tion units in the two tests. These benefits
were observed at residual oil saturation
and as an increase in dry-oil production.
Subsurface-Process
Evaluation Efficiency
Having seen evidence of a material RS
EOR oil response from special core
analysis of the Clair rock/fluid system,
it was recognized that an upscaled view
of the expected Clair Ridge RS EOR
incremental-oil-recovery profile would
be required to justify the incremental
capital expenditure associated with RS
EORfacilities.
An initial sensitivity study covering
RS EOR residual-oil uncertainty, capil-
lary pressure uncertainty, and reservoir-
description uncertainty confirmed that
reservoir description had the largest ef-
fect on RS-EOR incremental oil recov-
ery at Clair Ridge. Although a full-field
model (FFM) of the Clair Ridge existed,
2-day FFM run times and the wide range
in underlying reservoir-description un-
certainty combined to drive the project
toward adoption of sector modeling to
investigate and upscale Clair Ridge RS-
EOR oil-recovery predictions.
Sector-Model Description. A range
of 48 reservoir-description types were
defined as plausible across the Clair
Ridge structure by combining possible
joint and subseismic fracture descrip-
tions. RS-waterflooding performance
across this range was evaluated using a
single-porosity sector-model volume cut
out from Clair Ridge. The sector model
contained a producer/injector pair at
reservoir-scale interwell spacing. Across
all reservoir-description types investi-
gated, fractures and matrix were both
modeledexplicitly.
Fig. 2Typical coreflood responses, tertiary. HCPV=hydrocarbon pore volume.
Fig. 1Typical coreflood responses, secondary.
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0
Pore Volume of Water Injected
P
o
r
e

V
o
l
u
m
e

o
f

O
i
l

P
r
o
d
u
c
e
d
28000ppm
1400 ppm
RS flood
High-salinity flood
Low-Salinity
Oil-Plateau
Extension
High Salinity
Oil Plateau
2 4 6 8 10 12 14
28,000 ppm
1,400 ppm
High-Salinity
Oil Plateau
Oil Production vs. Throughput
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0 10 20 30 40 50
HCPV Injected
H
C
P
V

o
f

O
i
l

P
r
o
d
u
c
e
d
High Salinity Low Salinity
0.74 HCPV
0.82 HCPV
EOR161750.indd 67 12/12/13 1:28 PM
JPT JANUARY 2014
The effect that this range of reser-
voir fracture/matrix descriptions could
be expected to have on RS EOR incre-
mental oil recovery was investigated by
simulated waterflood of each reservoir-
description type. BPs Top Down Res-
ervoir Modeling technique was used to
build a sector model for each reservoir
description and then to execute separate-
ly both a high-salinity and an RS water-
flood through that same reservoir de-
scription. Comparison of RS waterflood
oil-recovery performance against high-
salinity-waterflood oil-recovery perfor-
mance allowed an incremental RS EOR
type response to be generated for each
reservoir description.
Sector-Model Results. Fig. 3 shows in-
cremental RS EOR recoveries for the 48
models at end of field life ordered by in-
creasing recovery. There is a positive RS
EOR incremental oil recovery from 98%
of the reservoir descriptions tested. The
average incremental oil recovery across
all descriptions is clearly positive.
Further investigation into the below-
average recovery cases seen in Fig.3 con-
firmed that low-recovery cases are asso-
ciated with matrix-dominated reservoir
descriptions where the fracture density
is low and the fracture network poor-
ly connected. In such reservoir descrip-
tions, injectivity is pressure limited and
the flood-front progression under both
high-salinity and RS waterfloods is slow.
When such matrix-dominated reservoir
descriptions are waterflooded across an
interwell distance, the arrival time of in-
cremental RS-EOR oil is delayed to the ex-
tent that it is only just beginning to mani-
fest itself at the end of field life.
Sector-Model-Results Upscaling. On
the basis of core, seismic, and log data,
a Delphi analysis (a systematic approach
that started with individual experts
views that were subsequently discussed
and revised to achieve a consensus
view) was completed by members of the
Clair Ridge subsurface team to define
the volumetric significance (within the
Clair Ridge reservoir) of each of the 48
fracture/matrix descriptions considered
in the RS-EOR sector-modeling study.
Normalized RS-EOR incremental-oil-
recovery profiles from each of the 48
sector models were then combined on a
volume-weighted basis into a single nor-
malized rock-volume-weighted (RVW)
-type response.
With the aim to reinject produced
water, an evaluation was conducted to
determine the optimal location and tim-
ing for injecting produced water and RS
water across the various reservoir com-
partments. Produced-water reinjection
and RS-waterflood injection can be con-
sidered to be mutually exclusive for a
given water-injection well. Therefore, un-
derstanding where produced water can
be disposed of across the field defines
the injectors that will not take produced
water and, by implication, the injectors
that can take RS-waterflood injection.
Having understood the sequence of
Clair Ridge reservoir segments to ex-
perience RS waterflood, a Clair Ridge
upscaled RS-waterflood incremental-oil-
recovery profile was created by apply-
ing the normalized RVW-type response
to the underlying high-salinity-flood
oil-recovery profile associated with
each Clair Ridge segment to experience
RS flooding.JPT
Fig. 3Sector RS-EOR recoveries in ascending order. IR=initial recovery.
-Dominated Recovery
Distribution of RS-Flood Responses at 2050
10
5
0
5
10
15
20
25
30
35
Reservoir Descriptions
R
S
-
F
l
o
o
d

I
R
Low-IR
Cases

Matrix-Dominated IR Case
Fracture-Dominated IR Case
Av 14.5%
2526 March 2014
The Woodlands, Texas, USA
The Woodlands Waterway Marriott
Hotel and Convention Center
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Register Now!
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EOR161750.indd 68 12/16/13 7:42 AM
69 JPT JANUARY 2014
F
actors such as hydraulic gradients
in the horizontal completion,
geologic and fluid variations in
the reservoir, and well-placement
issues can produce very poor steam
conformance in steam-assisted gravity
drainage (SAGD). Using proportional-
integral-derivative (PID) feedback to
control steam injection can lead to
improvements in SAGD. Inflow- or
injection-control devices (ICDs) can also
improve SAGD performance. This paper
examines detailed wellbore simulations
of a SAGD process in which wells are
equipped with a combination of ICD
completions and feedback control to
determine the physical mechanisms
and outline practical procedures to
determine an improved ICD completion
and feedback-controldesign.
Introduction
SAGD is the most extensively used pro-
cess for development of the bitumen re-
sources in western Canada. Fig. 1 shows
the concept of this process in which two
closely spaced horizontal wells are placed
such that the upper well injects steam and
the lower producer collects reservoir flu-
ids that drain mostly by gravity from a
constantly evolving steam chamber. Ide-
ally, the steam chamber evolves uniform-
ly along the entire length of the well
pair. However, the actual pattern of SAGD
well pairs shows very irregular steam-
chamber development along the lengths
of most of the pairs in the pattern.
For many years, SAGD operators in
this region have been evaluating methods
to improve conformance along well pairs.
One such method is to install dual-tubing
strings in the injector and producer. Pre-
scribed injection and production rates
from each tubing string may be deter-
mined from a reservoir-engineering
analysis of the formation around the
pair, but such analyses are often inexact.
In order to prevent the steam chamber
from touching the lower producer, which
would then remove hot steam instead
of using it more efficiently in the upper
reaches of the chamber, the injection and
production rates are usually set to main-
tain a prescribed temperature difference
between fluids exiting the upper injec-
tor and entering the lower producer. This
temperature difference, also referred to
as a subcool because it is set to be sev-
eral degrees below a water saturation
temperature, may be controlled at both
the heel and the toe of the well pair by use
of the ability to inject and produce from
the two tubing strings that are landed at
these points. However, setting these in-
jection and production rates to reflect
the current state of the reservoir and
current subcool is difficult with conven-
tional reservoir-engineering analysis. To
improve on this, a proposal was made to
use a feedback controller to monitor tem-
peratures of produced and injected fluids
automatically, with a target subcool at the
heel and the toe of the well pair. By tar-
geting the same subcool at the heel and
the toe, two objectives are accomplished:
(1) achieving the subcool prevents steam
from entering the lower producer, and
(2) both toe and heel halves are encour-
aged to produce uniformly because both
are targeting the same subcool (i.e., if
one-half temporarily operates at a lower
or higher subcool than the target, steam
injection is decreased or increased, re-
spectively, in that half to compensate).
Another method to improve confor-
mance is to install carefully constructed
ICDs in either the injector or the produc-
er, or in both. When placed in the injec-
tor, these devices can equalize the out-
flow of steam from heel to toe better,
regardless of variations in reservoir mo-
bility properties.
PID Controller
For the dual-tubing cases examined here,
the short tubing string in both wells is
landed at the heel and the long tubing
string is landed at the toe. Two separate
controllers are used for the heel and toe
tubulars, each with its own error term.
See the complete paper for the controller
and error term equations.
When a controller with an error term
is used to control the injection rates of dual-
injection-tubing strings, each of which is
targeting a specified subcool to the near-
est region in the lower producer, the ob-
jectives of meeting a subcool target and
of improving conformance are both met.
Steam chamber uniformity is improved
because each controller operating on dif-
ferent regions of the well pair is attempt-
ing to achieve the same specified subcool.
ICD Design To Control
Conformance, Subcool, and
Unwanted Water/Gas
For this study, a high-temperature ICD
design was chosen that combines a sand-
Simulation of Flow-Control Devices With
Feedback Control for Thermal Operations
of paper SPE 163594, Advanced Wellbore Simulation of Flow-Control Devices With
Feedback Control for Thermal Operations, by Terry Stone, SPE, Schlumberger
Information Solutions; Carlos Emilio Perez Damas, Schlumberger Calgary Regional
Technology Centre; Glenn Woiceshyn, SPE, Absolute Completion Technologies;
David Hin-Sum Law, SPE, Schlumberger Calgary Regional Technology Centre;
George Brown, Schlumberger Fibre Optics Technology; and Peter Olapade and
William J. Bailey, SPE, Schlumberger-Doll Research, prepared for the 2013 SPE
Reservoir Simulation Symposium, The Woodlands, Texas, USA, 1820 February. The
EOR163594.indd 69 12/12/13 1:23 PM
70 JPT JANUARY 2014
control screen with a choke that is de-
signed to give a linear production or in-
jection profile throughout the length of
the horizontal wellbore. These devices
are installed in 7-in. base-pipe joints,
each with a length of 46 ft. Each joint
is equipped with flow-constriction noz-
zles. Flow across the nozzles produc-
es a Bernoulli relation (pressure drop
vs. flow rate). Fig. 2 is a schematic of
the device, including dimensions, outer
screens, flow paths, and a picture of
thenozzle.
Case Studies
Four cases were run. These included com-
binations of dual-string injection with
PID control and wells equipped with
ICDs. The first case, PID injector/ICD pro-
ducer, was configured with an injector
containing dual 3-in.-inner-diameter (ID)
tubing strings landed at the heel and toe
and in which steam-injection rates to the
heel/toe strings were PID controlled with
a specified subcool target. The producer
was equipped with ICDs and, hence, con-
tained only a single 6.3-in.-ID tubular
with no additional tubing string landed
at the toe. For the second case, PID in-
jector/dual-string producer, the injector
and producer both contained dual-tubing
strings. The injector was PID controlled
by a heel/toe subcool target, and the pro-
ducer produced equally from both heel
and toe tubing strings. The third case,
ICD injector/ICD producer, contained
both injector and producer fitted with
ICDs along their entire horizontal length.
Again, there was no additional tubing
string landed at the toe for this case. The
We offer innovative engineering consulting to understand how your completions actually work.
Experience the advantages of a trusted, strategic engineering partner.
We Can Help. noetic.ca
Break through
production
challenges.
NOETIC JPT HALF PAGE JAN 2013_2.indd 1 2013-12-10 5:27 PM
Fig. 1An overview of a typical SAGD process. Shown are the location of the well pair relative to surface facilities (left),
a cross-sectional view of the evolving steam chamber (center), and a plan view of a pattern of well pairs demonstrating
nonuniform steam-chamber development along the well pairs (right).
Steam-
Chamber
Expansion
Steam Injection
Oil Well
EOR163594.indd 70 12/12/13 1:24 PM
fourth case, dual-string injector/dual-
string producer, was a base case in which
the injector and producer both contained
dual-tubing strings, steam injection rates
were constant and equally split between
the heel and toe strings, and production
was split also between heel and toe.
Results
One of the benefits of installing ICDs
in an SAGD injector is to allow a higher
heel injection pressure, which means that
there is higher enthalpy delivery to the
reservoir for a given mass rate and that
steam quality increases across the nozzle
because of the pressure drop.
At 2 years, temperature and gas-
saturation profiles are similar between
the three casesPID injector/ICD pro-
ducer, PID injector/dual-string produc-
er, and ICD injector/ICD producer. ICD
injector/ICD producer displays a slightly
greater coolness in the midregion and
lower gas saturations although with simi-
lar chamber growth near both ends, pos-
sibly because injection and production
are both occurring only at the heel, while
the first two cases have injection at both
the heel and the toe. All are showing
a good degree of uniformity along the
length of the well pair.
By 7 years, the two PID-injector
cases are showing equivalent steam-
chamber growth along the entire length
while the ICD-injector/ICD-producer
case is showing slightly less growth near
the toe. Temperatures in the first case
(PID injector/ICD producer) are looking
somewhat cooler than those for both the
PID-injector/dual-string-producer and
ICD-injector/ICD-producer cases be-
cause the PID controller in the former
is just beginning to hit its subcool target
at this time (7 years) and the second PID
case will achieve this shortly after.
By 12 years, the first two PID cases are
showing cooler steam chambers than the
ICD-injector/ICD-producer case because
both are achieving their subcool targets.
The two cases with dual-string pro-
ducers, dual-string injector/dual-string
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Experience the advantages of a trusted, strategic engineering partner.
We Can Help. noetic.ca
Break through
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challenges.
NOETIC JPT HALF PAGE JAN 2013_2.indd 1 2013-12-10 5:27 PM
Fig. 2Schematic of the ICD, showing overall linear dimensions, outer screens,
flow paths, and a picture of the nozzle.
Base Pipe
Boss Ring (Cover)
Media + Shroud
5 ft to >38 ft 4 ft 4 ft
Port Plug
Shroud
Fluid Flow
EOR163594.indd 71 12/12/13 1:24 PM
JPT JANUARY 2014
producer and PID injector/dual-string
producer, show very large, uncontrolled
subcools up to approximately 5.5 years,
while the two ICD cases show controlled
subcool throughout the production cycle.
The PID-injector/dual-string-producer
case does eventually start to control the
subcool. The base case, with dual strings
in both injector and producer and no sub-
cool control, shows very low subcools at
times greater than 5 years, but this is be-
cause the steam chamber is touching the
producer at these times. The case with
ICDs in both injector and producer ex-
hibits very low subcool at times greater
than 5 years; but, again, the steam cham-
ber is getting close to the producer. The
PID-injector/ICD-producer case shows
good subcool control in the early stages
and the ability to achieve a subcool target
in the later stages.
At 2 years, the two cases with PID
injection, PID injector/ICD producer
and PID injector/dual-string producer,
show similar pressure profiles around
the well pair except that the case with the
ICD producer shows flatter profiles than
the case with the dual-string producer.
This is expected because of the bene-
fits of the ICDs in evening out inflow to
theproducer.
At 7 years, the PID-injector/ICD-
producer case is showing lower pres-
sures because the PID-injector has al-
ready begun to achieve its subcool target,
which the second PID injector case has
not yet accomplished. Pressure profiles
for the other two cases, PID injector/
dual-string producer and ICD injector/
ICD producer, are very similar.
By 12 years, the two PID-controlled
injection cases are showing comparable
low pressures around the well pair, while
the ICD injector/ICD producer case is
showing considerably higher pressures
because steam has broken through to the
producer and is causing higher pressure
drops across the ICD nozzles.
Fig. 3 presents a comparison of cu-
mulative steam/oil ratio for the three well-
pair configurations and the basecase.
Discussion
The results suggest that a hybrid meth-
od of using feedback- (PID-) controlled
steam injection from dual- tubing strings
with a producer equipped with ICDs may
have several benefits. First, there are re-
duced capital and operating expendi-
tures because there is one less tubing
string in the producer. Second, an ICD-
equipped producer provides a more-even
inflow, which results in better- controlled
subcool throughout the production cycle,
particularly in the early stages after
switch over when it is more difficult (or
impossible) for PID-controlled steam in-
jection to achieve a subcool target. Third,
later in the production cycle, the ability
of the PID-controlled injection to force a
specified subcool target appears to keep
the steam chamber farther from the pro-
ducer and improve the economics of
theprocess. JPT
Fig. 3Comparison of cumulative steam/oil ratio for three SAGD well-pair
configurations and the base case.
Time, days
C
u
m
u
l
a
t
i
v
e

S
t
e
a
m
/
O
i
l

R
a
t
i
o
Cumulative Steam/Oil Ratio vs. Time
ICDs in Injector/Producer
PID Injector, ICD Producer
Dual-String Injector, Producer
PID Injector, Dual-String
Producer
3
2.9
2.8
2.7
2.6
2.5
2.4
2.3
2.2
2.1
2
0 1,000 2,000 3,000 4,000 5,000
Health,
Safety, and
Environment
Information
When You
Need It
www.spe.org/hsenow
A new Web app from SPE
Scan this
code to
preview.
EOR163594.indd 72 12/16/13 7:44 AM
73 JPT JANUARY 2014
N
aturally fractured reservoirs
(NFRs) contain a significant
amount of remaining petroleum reserves
and are now being considered for
water-alternating-gas (WAG) flooding
as secondary or tertiary recovery. The
authors face the challenge of reservoir
simulation of WAG by building models
at various scales, starting with pore
scale and expanding to an intermediate
scale and then to reservoir scale. They
show how pore-network modeling and
fine-grid modeling where the fractures
and matrix are represented explicitly
can be used to increase the accuracy of
numerical simulations at field scale.
Introduction
A significant portion of the worlds re-
maining petroleum resources is located
in NFRs, including supergiant fields in
the Middle East. A detailed understand-
ing of the recovery processes involved in
extracting hydrocarbons from NFRs by
use of enhanced-oil-recovery techniques
is key to increasing ultimate recovery for
such reservoirs.
Waterflooding has been used with
various degrees of success in NFRs. For
unfavorable (i.e., mixed- to oil-wet) ma-
trix wettability, however, waterflooding
can be ineffective.
Gas/oil gravity drainage (GOGD)
provides an important drive mechanism
that can be effective irrespective of the
rock wettability. In NFRs, fractures in-
crease the exposure of the injected gas
to oil in reservoir rock, which renders
GOGD more effective than it is in unfrac-
tured reservoirs. Consequently, gas in-
jection has been applied in many NFRs.
However, because the gas mobility is very
high compared with that of water and oil,
so is the risk of bypassed oil and gravity
override, which can lead to very early gas
breakthrough. This is particularly true
for NFRs.
WAG flooding combines the mer-
its of the two injection fluids on mac-
roscopic and microscopic scales while
stabilizing the injection front, delaying
breakthroughs, and, therefore, leading
to increased oil recovery compared with
continuous water or gas injection.
Reservoir simulation of WAG injec-
tion is very challenging because a repre-
sentative three-phase saturation model is
required to predict relative permeability
and capillary pressure as water and gas
saturations increase and decrease alter-
nately. Three-phase relative permeability
and capillary pressure data are extremely
difficult to measure experimentally. Even
if experimental evaluation becomes fea-
sible, an infinite number of saturation
paths can occur in the reservoir. This ne-
cessitates the use of empirical, or inter-
polation, models to predict three-phase
relative permeability and capillary pres-
sure from two-phase experiments.
In NFRs, capillary pressure and rela-
tive permeability functions have a major
effect on fluid exchange between ma-
trix blocks and fractures. Predicting the
effects of the interplay of viscous, cap-
illary, and gravity forces is challenging
because fluid flow is viscous-dominated
in the fractures while transfer between
fractures and matrix blocks is dominated
by capillary and gravity forces. Because
most of the oil is contained inside the ma-
trix, capillary and gravity forces can be
more important in NFRs than in conven-
tional reservoirs.
This capillary-/gravity-driven ex-
change between fractures and matrix
is commonly modeled by use of
dual-porosity or dual-porosity/dual-
permeability models.
The authors use a novel pore-
network model to predict three-phase
relative permeability and capillary pres-
sure functions of arbitrary wettability to
model fracture/matrix transfer processes
during WAG flooding. While it is difficult,
time consuming, and costly to obtain all
hysteretic two- and three-phase relative
permeability and capillary pressure func-
tions experimentally for the same rock
sample, pore-network models can gener-
ate a complete saturation function for the
same pore structure.
The authors attempted to preserve
small-scale recovery processes at the
field scale to ensure that they were well
represented in porosity models. There-
fore, they introduced a stepwise upscal-
ing procedure (Fig. 1) to preserve these
processes across various scales.
Pore-Scale Displacements
To Predict Saturation Functions
The authors three-phase pore-network
model accounted for all observed mi-
croscopic displacement processes during
three-phase flow, such as multiple dis-
placement chains, layer formation and
collapse, or film flow. The pore- network
simulator has been benchmarked against
published three-phase experiments
for sandstones and micromodels of
differentwettability.
To generate relative permeabili-
ty and capillary pressure data, the net-
work was initially saturated with water
followed by oilflooding to simulate a
primary-drainage process. Then, a series
Multiscale Simulation of WAG Flooding
in Naturally Fractured Reservoirs
of paper SPE 164837, Multiscale Simulation of WAG Flooding in Naturally Fractured
Reservoirs, by Mohamed Ahmed Elfeel, Adnan Al-Dhahli, Sebastian Geiger, SPE,
and Marinus I.J. van Dijke, Heriot-Watt University, prepared for the 2013 EAGE
Annual Conference and Exhibition/SPE Europec, London, 1013 June. The paper has
not been peer reviewed.
EOR164837.indd 73 12/12/13 1:22 PM
74 JPT JANUARY 2014
of waterflooding (imbibition) simula-
tions followed until the network water
saturation reached a predefined value, at
which gasflooding commenced (Fig. 2).
The Intermediate Scale
A fine-grid model was constructed to in-
vestigate the effect of three-phase relative
permeability and capillary pressure on
matrix/fracture transfer for a gridblock
scale of 505050 ft with 27 (333)
matrix blocks that are 121212 ft each.
This resembles the classical but highly
idealized sugar-cube array (Fig. 3). This
model allows for results from the pore
scale, in the form of relative permeabil-
ity and capillary pressure tables, to be
brought to the continuum scale where
fractures and matrix are present. To sim-
ulate WAG cycles, the fractures were in-
stantly filled with water or gas when
modeling recovery from the 27 matrix
blocks. Matrix blocks were assigned two-
and three-phase data. For the fractures,
linear relative permeability was used and
zero capillary pressure was assumed.
During the first two water/gas cy-
cles, recovery predicted for all empiri-
cal models reasonably matches recovery
predictions for the pore-network-derived
three-phase relative permeability and
capillary pressure. This is because the
total average oil saturation is relatively
high and, hence, close to two-phase rela-
tive permeability and capillary pressure
curves. However, empirical models pre-
dicted that oil recovery continues to in-
crease in subsequent WAG cycles where-
as the pore-network-derived functions
predicted no substantial increase in oil
recovery after the first two flooding cy-
cles. This is because relative permeabil-
ity and capillary pressure functions from
the pore-network model cause water and
gas phases to displace each other but do
not recover additional oil, leaving the oil
phase undisplaced.
WAG-Flooding Sensitivities
On the basis of the pore-network-derived
saturation functions, the authors con-
sidered a series of sensitivities to WAG-
flooding-design parametersWAG-cycle
duration and -cycle orderas well as the
effects of altering the matrixwettability.
Cycle Duration. For the nonviscous-
dominated flow between matrix blocks
and fractures, the authors observed that
the overall WAG recovery exhibited little
to no sensitivity to the WAG-cycle length.
However, the results also show that the
shorter the WAG cycle, the higher the
speed of recovery. This is because most
of the oil is produced during the first two
Fig. 1Stepwise procedural upscaling of recovery processes in NFRs. Colors represent different phases (red=gas,
green=oil, blue=water).
Fig. 2Saturation paths during gasflooding at different initial water saturations
after water imbibition into a water-wet sandstone. Color legends show relative
permeability values of oil, water, and gas phases, respectively, from left to
right.
Fig. 3Fine-grid model used to simulate fracture/matrix multiphase transfer
(green=oil, blue=water; left). Top view of the model (top right) and cross-
sectional view of the model (bottom right) show the oil saturation in fractures
and matrix.
Pore Scale Intermediate Scale
Single
Porosity
Dual
Porosity
Reservoir Scale
Oil Saturation
EOR164837.indd 74 12/17/13 9:21 AM
75 JPT JANUARY 2014
water/gas cycles because of a combina-
tion of water imbibition and gas gravity
drainage. During later WAG cycles, little
additional oil recovery is achieved when
using pore-network-model-derived rela-
tive permeabilities.
Cycle Order. The order of WAG cycles
also has an effect on oil recovery from the
matrix. At first, oil displacement by spon-
taneous water imbibition occurs faster
than GOGD if the matrix is water-wet.
Then, recovery by water imbibition be-
gins to diminish because of the reduction
in oil-phase mobility as water saturation
increases at the boundaries of matrix
blocks. Gas-gravity-drainage displace-
ment continues to increase and eventu-
ally outperforms recovery by spontane-
ous water imbibition. The difference in
recovery profiles during gas and water in-
jection for the WAG cycles is an indication
of the competition between the phases.
This is because, when gasflooding occurs
after waterflooding, the average initial
water saturation is high. Hence, oil recov-
ery is slow in the beginning because gas
displaces water first. The water cycle fol-
lows the sameexplanation.
Effect of Matrix Wettability. The rock-
matrix wettability has a significant ef-
fect on recovery from NFRs. To study
this effect, three-phase relative perme-
ability functions, capillary pressures, and
saturation paths were recomputed with
contact angles adjusted to represent oil-
wet rock. As expected, water/oil capillary
pressure values were negative in the oil-
wet case. This dramatically changes the
efficiency of water injection for recover-
ing oil from matrix blocks; capillary forc-
es act against water entering the blocks.
However, gravity forces, because of the
density difference between the water and
oil phases, enable the water phase to start
displacing oil in the matrix blocks from
the bottom up. Recovery from water dis-
placement by gravity alone in oil-wet res-
ervoirs is significantly less than that from
the combined gravity and capillary forces
in water-wet reservoirs. However, water
gravity displacement in an oil-wet res-
ervoir is a cocurrent displacement and
does not lead to the trapping of oil inside
blocks by the low-oil-mobility region.
Discussion and
ConcludingRemarks
The application of three-phase satura-
tion functions showed that the empir-
ical interpolation methods to estimate
three-phase saturation functions, which
are commonly used in standard indus-
try simulation practice, overestimated
oil recovery during late WAG cycles by
an absolute difference of 25% compared
with physically consistent and pore-
network-derived relative permeability
and capillary pressure functions. The au-
thors suggest that the reason for such a
tremendous difference is the more accu-
rate representation of intrapore displace-
ment processes in relative permeabili-
ty and capillary pressure functions that
are computed from pore-network sim-
ulation. A sensitivity analysis revealed
that water imbibition during the water-
injection cycles in WAG flooding creates
a region of low oil mobility around ma-
trix blocks. At such low oil saturations,
empirical interpolation models over-
estimate relative permeability, predicting
more oil to be released from the center of
matrixblocks.
The sensitivity analysis also showed
that recovery speeds up with decreas-
ing length of WAG-flooding cycles but
that final recovery always converged to a
similar value. Final recoveries were also
similar for cases in which the order of
the WAG cycles was changed. Surprising-
ly, continuous gas injection in water-wet
rocks yielded higher oil recoveries com-
pared with WAG flooding, whereas con-
tinuous water injection recovered less oil
compared with WAG. Hence, the authors
concluded that water imbibition has an
adverse effect on recovery from matrix
blocks if gas is available for injection. This
is because of the low-oil-mobility region
at the fracture/matrix interface.
The authors point out that the results
cannot be used to evaluate WAG-flooding
success in general because viscous dis-
placement is not taken into consider-
ation. The question, therefore, remains:
Will heterogeneity in the viscous flow
field, arising from nonuniform fracture
networks, dominate recovery or will un-
certainty in the fracture/matrix transfer
prevail and control the overall recovery
behavior during WAG? JPT
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EOR164837.indd 75 12/17/13 5:38 PM
76 JPT JANUARY 2014
Jesse Lee, SPE,
is chemistry
technology manager
at Schlumberger. He
holds a PhD degree
in chemistry from
Yale University and
conducted his post-doctoral research
at the Massachusetts Institute of
Technology. Lee joined Schlumberger
in 1997 in Tulsa as a development
engineer, focused on the development
of polymer-based fracturing fluids.
During 200010, he managed new-
product development at Schlumberger
product centers in Sugar Land, Texas,
and Clamart, France. At Schlumberger,
Lee is responsible for developing
technical collaborations and managing
relationships with external chemical
companies. He is a member of the JPT
OTC 24092 A Mature Southern North
Sea Asset Considers Conversion to
Wet-Gas Operation, Which Requires the
Development of Compatible and Novel
Chemistries for Flow Assurance and Asset
Integrity by J.F.L. Garming, Nederlandse
Aardolie Maatschappij, et al.
SPE 166300 Reducing Brownfield
Development Costs Through Improved
Drilling Practice and Enhanced
Understanding of Wellbore Instability
inWeak Formations by N. Stevenson,
Statoil, et al.
SPE 160429 Innovative Solution
Successfully Recompletes Problematic
Well in Malaysia by Chris Elliott, Petronas
Carigali, et al.
Sustainable growth in oil and gas production must stem from a combination of new
discoveries and optimized recovery from maturing fields. Therefore, development
of mature oil fields has been, and will increasingly be, an attractive subject. Conse-
quently, there is a large number of published studies describing the methodology of
mature-field-development practices. However, it is also evident that optimizing the
production of mature fields presents great technological challenges for the operators,
who must manage production decline over the short term while increasing recovery
factors over the long term. There are opportunities for quick wins, but, for long-term
growth, a coherent strategy that integrates elements of technology, people, and pro-
cess must be established.
A significant amount of information is available that covers almost all aspects of
managing mature fields. It is critical to have access to the relevant information and to
use the right tools to improve decision cycle time. This allows the operators to cor-
rect course in a timely manner and to avoid implementing changes in a compartmen-
talized fashion. It is straightforward to establish processes and follow best practices,
but having people with multidisciplinary expertise is the glue that holds all the pieces
together. Many in the industry have stressed the importance of properly developing
experience and capacity for innovation. However, promoting the culture of innova-
tion requires patience, which is challenging for public companies that are under quar-
terly pressure.
It is exciting to see that there is no shortage of technological advances, but it is
safe to say that there is still plenty of room for key enablers to continue to evolve and
to synergize with each other. For instance, chemistry, as a basic science, could play a
bigger role in the overall scheme and perhaps, in certain areas, should take the lead-
ing role. Nature has designed countless examples of well-choreographed chemical
reactions that support the complexity of life. It is conceivable that such intelligent
chemistry can also be developed to broaden the role of chemistry in terms of manag-
ing mature fields. I hope to see more and more chemistry-related publications in the
coming years.
The decline of a fields production curve is inevitable; good preparation helps to
control the process. I remember reading this statement from one of the majors: Prep-
arations for field maturity must start with first oil. In parallel, one must also keep in
mind that social responsibility, especially the environmental aspect, should be one of
the key considerations while establishing the development strategy.
Again, this is where chemistry can bring significant value. For instance, precise
fracturing technology that uses less proppant is a good example of new technology
that exhibits uncompromised performance that is one step in the right direction. I
hope you enjoy reading the selected papers for this months feature. JPT
TECHNOLOGY
MATURE FIELDS AND
WELL REVITALIZATION
2MFWRFocusJan.indd 76 12/12/13 8:34 AM
77 JPT JANUARY 2014
T
he new channel-fracturing
technique is capable of increasing
fracture conductivity by up to two orders
of magnitude. The channel-fracturing
technique allows development of an
open network of flow channels within
the proppant pack, enabling fracture
conductivity by such channels rather
than by flow through the pores between
proppant grains in the proppant pack.
The successful implementation of
the channel-fracturing technique in
brownfield development is described
in detail with the case study of the
Talinskoe field in Russia.
Introduction
The Talinskoe section (for simplicity, re-
ferred to herein as the Talinskoe field) is
part of the medium-sized, mature Kras-
noleninskoe field, located near Nyagan,
Russia. Exploration of this section began
in 1982. It has more than 5,000 wells
completed either in the Middle Juras-
sic Tyumenskaya suite (Formations JK2
through JK9) or the Early Jurassic Sherka-
linskaya suite (Formations JK10 through
JK11). More than 1,500 wells have been
fractured hydraulically. Approximately
60% of all wells are idle, mainly because
of water breakthrough (the average water
cut throughout the field is 90%). Most
hydrocarbons are found in the Sherka-
linskaya suite, but, currently, water cut in
many wells producing from the JK10 and
JK11 formations already exceeds the eco-
nomic limit. These wells are recompleted
to produce from shallower formations in
the Tyumenskaya suite.
The Tyumenskaya suite is character-
ized by a complex geology. It is an argil-
laceous facies with sandstone sublayers
and lenses. Because of low permeabili-
ties in the Tyumenskaya suite, most of
the wells cannot be produced commer-
cially without stimulation. To enhance
well productivity in such conditions, the
greatest possible fracture length is re-
quired, but it is not always possible to
achieve targeted half-length because of
geological limitations and formation
mechanical properties. While designing
for the greatest length possible, the en-
gineer is frequently limited by low-to-
moderate stress contrast between the
target formation and the barrier separat-
ing the target interval from the possibly
watered-outformation.
It is usually not a problem in low-
permeability reservoirs to achieve tar-
get dimensionless fracture conductivity
(DFC) greater than 2. But this does not
always provide the best productivity re-
sults. Thorough analysis of the 3-year
fracturing campaign in Nyagan showed
that an DFC greater than 1520 should
be targeted for this region. Lower DFC
values result in lower productivity. Lack
of control over fracture-height growth
(with the subsequent reduction in frac-
ture width) is a possible reason for pro-
duction underachievement.
Current fracturing practices in the
Talinskoe field aim for height-growth
control, longer effective fracture half-
lengths, and enhanced fracture conduc-
tivity. For these purposes, several differ-
ent fracturing technologies and pumping
techniques were implemented. All of
these technologies have demonstrated
different levels of productivity increase.
But all of them have a significant draw-
back: The screenout ratio increases with
a decrease in fluid viscosity and an in-
crease in operational complexity. In the
period between 2007 and 2009, when
these technologies were implemented,
the average screenout ratio for Talin-
skoe field was 12%. Screen out affects
production in several ways. When all the
designed proppant is not placed in the
formation, then the fracture geometry is
compromised, possibly by a lower DFC,
incomplete zonal coverage (the entire
net pay is not covered), or smaller skin
improvement (shorter fracture length).
In addition, fluid and gel recovery might
suffer from lengthy workover opera-
tions, which may reduce the retained
fractureconductivity.
A trial campaign for channel-
fracturing technology was conducted on
the Tyumenskaya suite. The campaign
was aimed at increasing fracture con-
ductivity and effective fracture half-
length without an additional risk of
prematurescreenout.
Channel Fracturing
The concept behind the new fractur-
ing technique may be described in one
word: channels. The homogeneous prop-
pant pack is replaced by a network of
flow channels (Fig. 1); now, the frac-
ture conductivity is created not by prop-
pant, but rather by channels. Proppant
is now grouped into clusters, support-
ing fracture walls from closure around
thechannels.
Channels are created by a spe-
cial pulsing pump schedule and a clus-
tered perforation scheme. In contrast to
the conventional pumping schedule, in
Channel Fracturing Applied
in Mature Wells in Western Siberia
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper SPE 159347, First Channel Fracturing Applied in Mature Wells Increases
Production From Talinskoe Oil Field in Western Siberia, by Rifat Kayumov,
SPE, Artem Klyubin, SPE, Alexey Yudin, SPE, and Philippe Enkababian, SPE,
Schlumberger, and Fedor Leskin, SPE, Igor Davidenko, SPE, and Zdenko Kaluder,
SPE, TNK-BP, prepared for the 2012 SPE Russian Oil and Gas Exploration and
Production Technical Conference and Exhibition, Moscow, 1618 October. The paper
has not been peerreviewed.
MFW159347.indd 77 12/12/13 1:38 PM
78 JPT JANUARY 2014
which proppant is added homogeneous-
ly with incremental increases in prop-
pant concentration, the new technique
adds the proppant in short pulses. The
proppant pulses will create the prop-
pant clusters. The clean pulses (pulses
without proppant) will promote the for-
mation of channels. The last step of a
treatment requires continuous addition
of proppant, as in a conventional treat-
ment. The goal of this step, referred to as
the tail-in step, is to ensure a stable, uni-
form, and reliable connection between
the channeled fracture and the wellbore.
It is important to design the tail-in step
so that it is short enough to prevent it
from having a significant negative im-
pact on the overall fracture conductivity.
As for the perforation scheme, it is nec-
essary to create clusters of perforation
shots separated by nonperforated inter-
vals. These clusters will separate prop-
pant pulses into smaller slugs and will
promote uniform distribution of prop-
pant slugs across thefracture.
The special modeling workflow
comprises proppant-transport models
to calculate the placement of proppant
slugs. After the proppant slugs (conglom-
erates) are placed, the fracture walls will
bend around the slugs (Fig. 2), which
will reduce the effective volume of the
channels. To model this phenomenon, a
special fit-for-purpose mechanical model
was developed and integrated into a com-
mercial fracturing simulator. If the width
profile of the channels is known, fracture
conductivity can be calculated. The de-
veloped engineering workflow thus al-
lows us to relate what is performed at
surface to what is obtained in the frac-
ture. Furthermore, it allows optimiza-
tion of the fracture design to ensure that
channels will stay open.
Many successful case studies of
channel-fracturing implementation al-
ready have been published; some of
them are based on hydraulic fractur-
ing in ultralow-permeability reservoirs,
and others concern low- and medium-
permeability reservoirs. Regardless, all
authors show significant productivity in-
creases in the wells with channel fractur-
ing compared with offset, conventionally
stimulated wells. These studies proved
the benefits of this technology; how ever,
all of them are related to gas and gas/
condensate reservoirs.
Before initiating the pilot channel-
fracturing campaign, a similar experi-
ence was reviewed carefully. A previously
presented case study with the channel-
fracturing technique implemented for
medium-permeability oil formations in
western Siberia in newly drilled wells of
the Priobskoe field yielded two impor-
tant conclusions:
1. The performance of the wells
treated with the new technique
was 10 to 15% higher than that
of wells receiving conventional
treatments.
2. The productivity index of the
wells treated with the new
technique was stable for 2
years, confirming the existence
and reliability of the channel
structures.
In addition to extraordinary fracture
conductivity, improved fracture clean-
up, and increased effective fracture half-
length, there is another valuable bene-
fit from the implementation of channel
fracturing in Talinskoe field: a mini-
mized risk of screenout. Currently, more
than 6,500 stimulation treatments with
channel-fracturing technology have been
performed worldwide, and only three
screenouts have occurred, which yields a
success rate greater than 99.95%.
Candidate Selection and
Design Considerations
Several criteria and considerations were
applied in the candidate-selection pro-
cess. One of the main objectives, besides
those that relate to the technology itself,
was to find candidates with several repre-
sentative offset wells that were hydrauli-
Fig. 1A conventional propped fracture (left) with respect to channel-
fracturing technology (right).
Fig. 2Channels narrowing around proppant slugs.
Conventional Fracturing Channel Fracturing
X
f effective
X
f propped
X
f hydraulic
X
f effective
X
f propped
X
f hydraulic
= =
Open Channel Open Channel
Stress
Stress
Proppant
Conglomerate
MFW159347.indd 78 12/18/13 8:19 AM
Do you know colleagues who are authorities in their elds and
experienced public speakers? If so, consider nominating one or more
of them for the SPE Distinguished Lecturer Program for 2015-16.
Learn more about the program at www.spe.org/dl.
Motivate
Inspire
Educate
Nominations are accepted beginning 1 February.
The SPE Distinguished Lecturer Program is funded by the SPE
Foundation, Ofshore Europe, AIME, and companies that allow their
professionals to serve as lecturers.
DL_JPT_FP_Nom_1213.indd 1 12/16/2013 8:27:47 AM DL_079_jpt.indd 1 12/16/13 10:21 AM
JPT JANUARY 2014
cally fractured by use of conventional
technologies and had enough production
data to make correct comparison analy-
sis. In addition, wells were screened on
the basis of the following requirements:
Cased-hole wells with no
perforation in the target interval
to allow cluster perforation
Well deviation of less than 15 in
the target interval to minimize
risk of misalignment of fracture
plane with the wellbore
A certain degree of rock stiffness:
ratio of Youngs modulus to
closure stress at greater than 275
Net height greater than 6 m
Lowest possible lamination of
the pay interval with a minimum
number of separating shale or
argillite streaks
No additional risks of breaking
into water-bearing formations in
case of fracture-height growth
Channel fracturing is beneficial in
two ways. First, the presence of clean
pulses around proppant structures and
fibers inside slurry provide bridging-
free flow, which leads to increased prop-
pant penetration inside the formation.
Second, enhanced fracture permeability
enables faster and more-complete re-
covery of the fracturing fluid during well-
cleanup procedures through channels,
which results in increased effective half-
length and unhindered hydrocarbon flow
during production. A specially developed
module in the commercial simulator was
used for the designing and optimizing
of channel formation. The effort was
made to design treatments that ensure
fully opened channels through the entire
length of created fractures with maxi-
mum possible conductivity.
After thorough candidate screen-
ing, with several stimulation and pro-
duction specialists involved from both
the operator and the service company,
five wells showed the best possible com-
pliance with the screening criteria de-
scribed and were chosen to be stimu-
lated with channel-fracturing treat-
ment (Wells X268, X118, X473, X430,
and X373). Chosen wells were distrib-
uted across the field. All were treated
with water-based fracturing fluid with
3-kg/m
3
(25-lbm/1,000-gal) guar- polymer
loading and borate-type crosslinker. A
16/20-mesh intermediate-strength prop-
pant was used as the main treatment,
and 3 tons per job of 12/18-mesh resin-
coated proppant was used as tail-in mate-
rial to ensure maximum conductivity in
the near-wellbore region and control over
proppant flowback at the same time. All
treatments were pumped as per design
without screen outs, despite a very ag-
gressive schedule, proving the reliability
of proppant placement in pulsating mode.
Production Analysis
Analysis of production is based on the
productivity-index value normalized
on the net-pay thickness. For each well,
the productivity index was recalculated
from daily-liquid-production data, with
applied Vogels correction for produc-
tion below bubblepoint pressure. Net-
pay thickness was derived from log data.
A robust permeability value was not
known for most of the wells, so it was not
used for further data normalization. The
productivity index at or above bubble-
point can be simply calculated as a ratio
of liquid production to applied draw-
down. Wells in the Talinskoe field pro-
duce with electrical submersible pumps.
It is a common practice to keep bot-
tomhole pressure below the bubblepoint
pressure. (For a detailed discussion of the
production-analysis process, please see
the complete paper.)
Normalized productivity-index val-
ues for the five wells treated with the
channel-fracturing technique were av-
eraged into a single curve and com-
pared with the averaged normalized
productivity-index curve from eight off-
set wells after stimulation with conven-
tional fracturing treatments. The pro-
ductivity of wells treated with channel
fracturing was significantly higher than
that of wells stimulated with conven-
tional fracturing. Note that because of
the low number of treated wells, nor-
malized productivity curves suffer from
noise induced by imperfections of
daily production-measurement data
from each well. But the general trend is
obvious: Wells treated with the channel-
fracturing technique display signifi-
cantly higher productivity-index values
during the entire production period cur-
rentlyavailable. JPT
2 0 1 4
Save
the
Date!
1 3 April 2014
THE WOODLANDS WATERWAY
MARRIOTT HOTEL
& CONVENTION CENTER
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www.spe.org/events/urc
MFW159347.indd 80 12/16/13 7:46 AM
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82 JPT JANUARY 2014
A
s a field matures, there is a
crucial need to focus on
integrity-related issues such as
hazard prevention and mitigation.
During the initial field development
of D fieldoffshore Terengganu in
Malaysia, the well design was fit for
purpose to meet production needs.
However, extension of production
requirements contrary to earlier
plans, a production-driven operational
philosophy, and irregular well-integrity
surveillance have compounded integrity
issues. To rectifythis trend, a field
redevelopment was based on a number
of concretesteps.
Field Overview
D field is an oil- and gas-producing field
that saw its first hydrocarbon discov-
ery in 1981. After a series of apprais-
al wells and the formulation of a field-
development plan, the fields first oil
production was realized in March 1991.
The fields primary production is oil
from multistack major reservoirs X1 and
X2, with 30 to 70% CO
2
concentration.
D field has a total of four producing plat-
forms, consisting of one main platform
with three satellite platforms. The pro-
duction streamlines from the satellites
undergo separation processes at the
main platform before collection at the
floating storage and offloading facility.
Currently, the field is oper-
ating with a total of 218 completion
strings. The main platform consists of a
separation-process unit, a water-
injection module, a gas-injection mod-
ule, and a produced-water-treatment
system. Dedicated gas and water pipe-
lines run to each satellite platform,
meeting the requirement of water and
gas injection to the reservoir as part
of the reservoir-management plan. In
addition, enhanced-oil-recovery (EOR)
implementation is being assessed as
part of the effort to increaseproduction.
Problem Statement
From 2010 to 2012, a 60% decline in
daily production rate was observed,
largely as a result of integrity issues.
Operating under a wide range of CO
2

concentrations in hydrocarbons poses
a challenge in the initial material se-
lection for well completion, which can
in turn greatly affect well integrity
and life span. Furthermore, the early-
optimization philosophy for water and
gas injection led to the use of one well
slot with dual-utility well completion,
which complicates well intervention and
deteriorating well-integrity assurance
because of the difference in operating
temperatures between the two strings
in awellbore.
Extensive diagnostic surveys and
well-integrity logging were conducted
from 2010 to 2012 in order to determine
the condition of subsurface well integ-
rity and safeguard the production and
reservoir-management-plan require-
ments for the EOR project. To ensure
deliverables, the team has adopted a se-
ries of systematic guidelines to diagnose
well integrity.
Subsurface Integrity
Diagnostics
Rapid Increase in Water Cut. From the
key observation wells, the team noted
a steep increase in water-cut percent-
age; in one example (Well AA), this per-
centage rose from an initial 18 to 80%
within 2 consecutive years of monitor-
ing. From this observation, the team has
initially estimated that leaks in comple-
tion strings most probably have occurred
because of an operating strategy of si-
multaneous water injection and oil pro-
duction in one well slot in most of the
D-field wells.
Sudden Drop in Oil Production. In
again considering the example of Well
AA, the steep unexpected increase in
water production has caused a significant
reduction in oil production. This was be-
lieved to be caused by the increase in hy-
drostatic pressure in the annulus that sig-
nificantly reduced the oil column in the
production strings overtaken bywater.
Abnormal Pressure Profile. Here we
use the example of Reservoir X-3, which
was simultaneously produced from the
group of six observation wells that had
shown a stable pressure profile in the
course of 7 years of production. It is im-
portant to note that Reservoir X-3 is not
the main producing reservoir in D field.
X-3 is a natural-depletion reservoir, a
term used by the team to describe a res-
ervoir with no water-injection support
from the injector wells to maintain the
pressure. However, the reservoir pres-
sure monitored from these six wells ex-
perienced a steady decline that ended in
1998, but in 2001, the pressure increased
by 200 psia, with a steady increase until
the end of 2007.
This phenomenon is probably
caused by production-tubing leaks in sin-
gle or multiple wells concurrently pro-
ducing from and injecting to the other
Mature-Field Subsurface Integrity:
Holistic Diagnostic Approach in Malaysia
of paper SPE 165634, Mature-Field Subsurface Integrity: Formulation of a New
Paradigm Through a Holistic Diagnostic Approach for D Field, Malaysia, by
Wan Rokiah Ismail and Almag Fira Pradana, Petronas Carigali, prepared for
the 2013 SPE Latin American and Caribbean Health, Safety, Social Responsibility,
and Environment Conference, Lima, Peru, 2627 June. The paper has not been
peerreviewed.
MFW165634.indd 82 12/12/13 1:38 PM
JPT JANUARY 2014
reservoirs in D field. The injected water,
intentionally dedicated to support other
reservoirs, has traveled to Reservoir X-3
because of leaks in completion strings,
which in turn caused high water produc-
tion recorded from the reservoirs pro-
ducing wells.
High Casing Pressure. Daily surveil-
lance on well parameters such as flow-
ing tubinghead pressure, production-
casing pressure (PCP), intermediate-
casing pressure (ICP), and flowing pro-
duction-string-head temperature allows
the team to identify anomalies in well
conditions. Early signs of communica-
tion between casings can be detected if
PCP (Annulus A) exceeds 2,000 psi and
ICP (Annulus B) exceeds 300 psi. The
communication between casings is fur-
ther confirmed by bleeding off the pres-
sure at the respective annulus and moni-
toring to see if the pressure builds up in
the annulus by more than 50% within
24 hours after the attempt. Communica-
tion between casings is treated as a high
health, safety, and environmental prior-
ity. Should the situation be encountered,
the well is required to be secured and
tested further to confirm the existence of
leaks, and remedial action is to be taken.
Well Intervention
In place of the requirement to perform
field-performance analysis and reser-
voir studies by operating per a con-
sistently optimum-condition reservoir-
management strategy, the D-field team
has initiated and executed routine
reservoir-data gathering in all of its 170
wells, which further confirmed the ex-
istence of poor well integrity after 20
years of production. For a detailed dis-
cussion of these findings, please see the
complete paper.
Well Workover
Once the well-integrity condition is con-
firmed through surface data and well-
survey data, the condition is then eval-
uated. If possible, internal patching
(completion string and casing) will be
conducted to rectify the integrity issues.
However, in order to secure the wells
safety, ensure continuous production,
and ensure reserves recovery, a work-
over is required should the well present
conditions indicating that it is beyond
rectification, such as multiple holes and
leaks in the completion string, annulus
communication, and packer leak caus-
ing crossflow betweenreservoirs.
Therefore, with multiple wells expe-
riencing severe well-integrity issues be-
yond rectification and in preparation for
a future EOR program, a massive work-
over campaign was carried out between
2009 and 2012 in D field. In the course
of the workover campaign, the down-
hole condition was confirmed further
200
0
400
600
800
1000
1200
1
/
1

1
/
8

1
/
1
5

1
/
2
2

1
/
2
9

2
/
5

2
/
1
2

2
/
1
9

2
/
2
6

3
/
4

3
/
1
1

3
/
1
8

3
/
2
5

4
/
1

4
/
8

4
/
1
5

4
/
2
2

4
/
2
9

5
/
6

5
/
1
3

5
/
2
0

5
/
2
7

6
/
3

6
/
1
0

6
/
1
7

6
/
2
4

7
/
1

7
/
8

Bbls. CBT Oil Production Daily Total 2012
CnF
Foamer Pumped

MORE OIL,
LESS COST
For more information contact
cesimkt@otekind.com
or call
832-308-CESI (2374)
CnF
Foam Conformance Modier

The field in the above graph
was under a CO
2
flood and
the project was not meeting
expectations. After injecting
CESIs CnF
foam conformance
modier, an incremental increase
of approximately 14,000 barrels
of oil was produced at a total
cost of less than $0.60 per
barrel this production increase
has persisted for more than 6
months!
FL RIDA
CHEMICAL
Fig. 1Condition of retrieved completion strings.
Corroded
Production
String
Buckled
Production String
Showing Ring
Worm Corrosion
MFW165634.indd 83 12/12/13 1:39 PM
JPT JANUARY 2014
on the basis of the completion string
and well accessories retrieved to surface
from various wells (Fig. 1). Internal and
external corrosion can be detected on
the major completionaccessories.
Casing Integrity
On the basis of the severely corroded
condition of the completion string re-
trieved during the workover activity, the
casing integrity becomes suspect. The
team has initiated and executed a series
of casing-integrity tests to ensure the
ability of the casing to withstand pres-
sure during production with no potential
hazard to the environment. In addition
to the casing- injectivity tests that were
performed to ensure casing reliability, a
series of cased-hole logs with sonic and
ultrasonic capabilities was executed to
ascertain not only the integrity of the
casing but also the bonding quality of the
cement behind the casing.
In one example from Well DD, the
interpretation result of the surveys cor-
rosion mode was able to show a sig-
nificant degree of metal loss ranging
from 30 to 50%, mostly located near
or between the fluid-entry points at the
perforation area. In an instance from
Well EE, the ultrasonic interpretation
of a significant portion of the casing re-
vealed the disturbing occurrence of a
microannulus filled with gas (from the
reservoir secondary gas cap) in the ce-
ment above the main production zones.
To ensure the safety of the environment
with respect to the hazards caused by a
potential leak of production fluids, the
team decided to perform a remedial
squeeze cementing on Well EE, resulting
in a major improvement in the cement-
bonding quality.
However, the poor casing condi-
tion in Well DD made that well particu-
larly hazardous for a new recompletion
in the same slot. Hence, the team put
forward a plan to reuse the slot by per-
forming a plug-and-abandon operation
in the existing wellbore, starting from
the poor-casing section and extending
to the bottommost depth of the origi-
nal slot, followed by a sidetracking of a
new target above the abandoned section
to secure and deliver the remaining re-
serves of the well.
Controlling the Corrosion Rate
Corrosion is inevitable. Therefore, the
only possible control that can be ap-
plied in a completion string is control of
the corrosion rate. The corrosion rate
increases as the temperature, pressure,
and stress increase during production.
Corrosion will occur with the appear-
ance of an anode, a cathode, and an elec-
trolyte, which promote the oxidation
and reduction processes of metal.
A high concentration of carbon
dioxide, together with high-water-cut
production, promotes the formation of
carbonic acid. The acidic substance will
then react with iron to form sidetrite
scale, forming a protective film on the
walls of the completion string because
the scale is nonconductive in nature,
thus preventing galvanic corrosion oc-
currence. However, crevice and pitting
corrosion will occur when carbonic acid
is formed. Additionally, the presence of
CO
2
will cause embrittlement, which in
turn results in stress-corrosion crack-
ing, causing mechanical failure of the
completion string (Fig. 1).
There are also biological factors
to consider in corrosion-rate con-
trol. Injection-water quality should be
monitored for the presence of sulfate-
reducing bacteria (SRB). SRB metabolize
sulfate ions of an organic carbon source,
thus introducing hydrogen sulfide (H
2
S)
into an H
2
S-free system. This will then
accelerate the occurrence of crevice cor-
rosion in the completion string. Fur-
thermore, other factors can influence
the corrosion rate, including an erosive
production environment and the selec-
tion of completion metallurgy.JPT
Be a part
of the
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Panel
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opportunity is
for you.
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each month, you can help shape the
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Join the SPE Opinion Panel and give
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in industry and technical topic research.
Getting started is easy.
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www.spe.org/volunteer/opinion_panel.
MFW165634.indd 84 12/16/13 3:32 PM
Formation Evaluation
|
Well Construction
|
Completion
|
Production
201 Weatherford. All rights reserved.
In aging reservoirs, Weatherford provides an unparalleled array of resources to
extend the eoonom|o ||fe of your fe|d and boost proftab|||ty. W|th the |ndustry`s
most comprehensive offering of production systems, we are ready to help you:
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Weather_085_jpt.indd 1 12/11/13 3:21 PM
86 JPT JANUARY 2014
V
ICO Indonesia is the operator
of the Sanga-Sanga production-
sharing contract (PSC) in Indonesia.
Against a backdrop of of 46% annual
base decline, VICO generated and
implemented an integrated and
aggressive work program called the
Renewal Plan. This is an integrated
approach between reservoir
management and technology
application. This plan proved to
be an efficient example of better
reservoirmanagement for optimum
development of mature assets.
Introduction
The Sanga-Sanga acreage is located on-
shore in the Mahakam delta, East Kali-
mantan, Indonesia. The acreage is lo-
cated within the Kutai basin, which is
characterized by the Samarinda anti-
clinorium, with a series of highly pro-
lific anticlines. Hydrocarbon accumu-
lations are most often located within a
series of mid-Miocene upper-delta and
delta-plain sandstone reservoirs, and
are principally characterized by four-
way dip closure or two-way structural/
stratigraphictraps.
VICO Indonesia has been explor-
ing and developing this PSC acreage ac-
tively since 1968. There are seven pro-
ducing fields (Fig. 1): Badak, Nilam,
Semberah, Mutiara, Beras, Pamaguan,
and Lampake. These together produce
385 MMscf/D of gas and 14,500 B/D
of liquids from 420 active wells, which
have mixed wellbore completions (sin-
gle, dual-selective, monobore, dual-
monobore, and horizontal). The sur-
face facilities supporting the production
include four main production centers,
12 gathering stations, and more than
90compressors.
After 40 years of production, these
fields have now reached a fairly mature
stage; most of the penetrated reservoirs/
tanks have been depleted from origi-
nal pressures. Coupled with the annual
production decline, this condition has
resulted in significant challenges to de-
livering a continuous economic and ef-
ficient field-development strategy while
maximizing field production.
Renewal Plan
VICO carried out a reserves-reassessment
studyan integrated approach involving
reservoir management and technology
applications conducted by a multidisci-
plinary team. The seven components of
the Renewal Plan are described in the fol-
lowing subsections.
Securing Base Production. Secur-
ing base production is one of the keys
to achieving a production target. Well
monitoring and surveillance are the
primary methods by which base pro-
duction is secured. Previously, VICO
wells were monitored by frequent pro-
duction tests, mostly depending on
humansurveillance.
In the Renewal Plan, automated
real-time monitoring well surveillance
of wellhead-pressure and flow-rate data
on each well was impemented. This
real-time wellhead surveillance (RTWHS)
transmits the data from the wellsite to
the VICO server; then, it is stored in a
data base. Operators and production en-
gineers could monitor the behavior of
the well in real time. This system has
proved to minimize well downtime, lead-
ing to aggressive well reactivation.
This installation has also become
standard for new wells. Currently, 90%
of VICOs active wells are equipped
withRTWHS.
Aggressive Drilling Plan. The multidis-
clipinary team concluded that remain-
ing potential reserves are high, even
though the PSC acreage has produced
70% over 40 years. New well develop-
ment can be carried out by means of
conventional-well, grid-based-drilling,
and cluster-drilling methods.
Previous VICO completion design
used single-/dual-string 2-, 2-, and
3-in. completion with multipackers
installed for single/multiple perforation.
This led to commingled production from
several zones, reducing the maximimum
potential of each individual zone. The
single 4-in. monobore offered bet-
ter reservoir management and a single
production tubing, with the annulus ce-
mented up to surface. The downside of
the 4-in.-monobore completion, how-
ever, includes less flexibility to catch up
with the deliverability target.
A dual 3-in.-monobore comple-
tion was implemented, and flexibility
of the production strategy was achieved
by use of long strings for maximizing
reserves recovery, and short strings
for optimizing production. This dual
3-in. monobore has become a stan-
dard well completion in VICO Indone-
sias portfolio.
Aggressive Rigless Development.
While maintaining base production, op-
timization of existing wells is the prior-
ity for meeting the production target. To
that end, on a routine basis, the multi-
Optimum Development in Mature Fields:
Sanga-Sanga Assets, Indonesia
of paper SPE 158716, Renewal Plan: Efficient Strategy for Optimum Development
in Mature FieldsA Success Story From Sanga-Sanga Assets, Indonesia, Andre
Wijanarko, Bambang Ismanto, and Robhy Permana, VICO Indonesia, and Italo
Pizzolante, Eni, prepared for the 2012 SPE Asia Pacific Oil and Gas Conference and
Exhibition, Perth, Australia, 2224 October. The paper has not been peer reviewed.
MFW158716.indd 86 12/12/13 1:37 PM
ACHIEVE THE HIGHEST RECOVERY RATES
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up to 60% and extend the life of your wells.
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plete projects that werent previously feasible and in-
crease your cash ow from already existing assets.
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of well tractors in the industry. These provide the work-
horse to accomplishing e-line workovers that shift, set
or cut, remove debris or deposits, machine out nipples
or restrictions, and restore production. All done on e-
line, without adding uids to your well.
MAXIMIZE YOUR RETURN THROUGH E-LINE INTERVENTIONS
FIGHT BACK AGAINST PRODUCTION DECLINE
BEAT THE CURVE
Welltec_087_jpt.indd 1 12/12/13 12:21 PM
88 JPT JANUARY 2014
disciplinary team evaluated potential
wells along with underperforming wells,
idle wells, and bypassed zones.
For underperforming wells, a de-
tailed review was conducted to determine
the causes of production decline. Static/
flowing bottomhole and production-
logging data are useful in this task;
nodal-analysis and material-balance
software were used to support review
findings. For idle wells, a detailed re-
view is performed to evaluate existing
producing zones and remaining poten-
tial zones.
A bypassed zone is a potential pro-
ductive zone that was not interpreted as
a hydrocarbon zone in the past. These
zones are reviewed on the basis of log
data, offset-well production, and mud-
log data compiled during drilling.
Low-Permeability Exploitation. One
of the Renewal Plan objectives is to re-
gain production and increase the re-
serves recovery from low-permeability
zones. Because most of the fields have
reached a mature stage at which the
shallow and middle layers have been
produced and depleted significantly, the
remaining reserves are spread over the
deeper low-permeability sands, where
previous completion approaches have
not effectively depleted the reserves.
A comprehensive approach was
identified that ranks the candidate reser-
voirs for low-permeability development.
Additionally, several low- permeability
gas-development strategies and technol-
ogies have been evaluated and execut-
ed since 2006. These low- permeability
technology applications pertained to
horizontal wells, hydraulic fracturing,
and radial drilling/jetting.
Deliquification. A large proportion of
VICOs existing well production is sub-
ject to liquid loading, leading to prema-
ture abandonment of producing zones;
and some wells have to be in cyclic pro-
duction. Liquid loading of a gas well
is the inability of produced gas to re-
move the produced liquids from the
wellbore, leading to excessive backpres-
sure on the production interval, which
in turn reduces productivity. This situ-
ation is influenced by tubing size, sur-
face pressure, and the amount of as-
sociated liquids being produced with
the gas.
Historically, VICOs approach to
well reactivation/deliquification includ-
ed low-cost, low-technology solutions
such as venting, cycling, gas injection,
and soap sticks, used with mixed suc-
cess. In 2006, in new-technology trials,
the installation of capillary-string injec-
tion in liquid-loaded wells was tested.
The capillary-string-injection con-
cept introduces a foaming agent into
the wellbore through -in. capillary
strings and injects the surfactant across
the perforation. The foaming agent is
then mixed with produced fluids, reduc-
ing the density of the liquid, increasing
the gas velocity, and improving the abil-
ity of the well to produce liquids and
have stabilized gas flow. This capillary-
string chemical injection was chosen
because its relatively simple application
also can be implemented in a wide range
of VICOs completions (monobores,
dual-string completions with nipple
profiles, and selective completions pro-
duced through sliding sleeves).
Fig. 1Sanga-Sanga PSC. Fig. 2Wellhead compressor.
0 10 20 km
Compress to VLP Compress With Wellhead Compressor
Date
G
a
s
,

M
c
f
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d

P
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e
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e
,

p
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i
g
300
275
250
225
200
175
150
125
100
75
50
25
0
1600
1500
1400
1300
1200
1100
1000
900
800
700
600
500
400
300
200
1
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9
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1
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0
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/
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0
/
1
0
MFW158716.indd 88 12/12/13 1:37 PM
89 JPT JANUARY 2014
Fieldwide capillary-string-injection installation has been
implemented since 2006. Currently, there are 65 capillary-
string-injection installations, which have successfully main-
tained liquid-loaded-well production with continuous flow (in-
stead of a cyclic mode) to deliver 16MMscf/D.
Oil Development. The aggressive drilling program in Mutiara
and Pamaguan fields resulted in an increase of oil reservoirs to
be produced. A gas lift system is the preferred method used to
achieve artificial lift because VICO has abundant gas resources.
Because monobore wells have no annulus (they are cemented
up to surface), there is no gas-lift-valve/side-pocket-mandrel
configuration available to introduce gas lift into the produc-
tion tubing.
A solution for developing oil in a monobore well com-
pletion involves use of smaller-inside-diameter coiled tub-
ing (normally 1-in. diameter) inside the production tub-
ing, which includes special bottomhole assemblies (nozzle,
dual-flapper check valve, and nipple). A special tubing hanger
is attached to the top of the tree to hold the inserted coiled tub-
ing. This application is known as permanent-coiled-tubing gas
lift (PCTGL), which allows gas lift injection into the produc-
tion tubing.
This method does not require the well to be recomplet-
ed with a rig, thus having significant cost savings and deliv-
ering desired oil production. During 20102011, 16 units of
PCTGL were installed, successfully sustaining 3,500 B/D of
oilproduction.
Facility Optimization. To maximize reserves recovery with
the condition that most of the production comes from deplet-
ed reservoirs, several attempts to lower abandonment pres-
sure were made. Lowering the flowing wellhead pressure will
keep the well flow above the critical and liquid-loaded rates for
a longer period of time. To assist in this effort, VICO has cat-
egorized four different pressure systems:
1. High-pressure compressor with an inlet pressure of
700psi and an outlet pressure of up to 1,500psi
2. Medium-pressure compressor with an inlet pressure of
280 psi and an outlet pressure of up to 710 psi
3. Low-pressure compressor with an inlet pressure of
100psi and an outlet pressure of up to 320 psi
4. Very-low-pressure (VLP) compressor with an inlet
pressure of 25 psi and an outlet pressure of up to
120psi
Before 2006, only a few VLP compressors were available.
Consequently, some of the wells prematurely ceased flowing
because of an inability to flow in lower-pressure systems. Sev-
eral studies were performed to determine how to lower field-
abandonment pressure, improve well productivity and re-
serves, and better manage a gas fields natural decline. These
studies resulted in additional VLP compressors and indeed in
the categorization of another compressor with pressure lower
than that of a VLP systemcalled an extreme-low-pressure
compressor (wellhead compressor). Having wellhead compres-
sors installed at the wellsite reduces the flowing wellhead pres-
sure further (Fig. 2). JPT
Winter Education
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u Quick Guide to Carbonate Well Log Analysis
u 3D Seismic Attributes for Prospect Identication and
Reservoir Characterization
u Seismic Amplitude Interpretation
u Geophysical Methods for Estimating Geomechanical
Properties
u Integrating Data to Evaluate Shale Resources
u Exploration in the Bakken Petroleum System
u Exploration in the Niobrara Shale
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MFW158716.indd 89 12/12/13 1:36 PM
90 JPT JANUARY 2014
Otto Luiz
Alcantara
Santos, SPE, is
the coordinator
of the well-
control training
and certification
program of Petrobras, instructor
of deepwater and advanced well-
construction technologies at Petrobras
University, and a senior technical
advisor of Petrobras. He holds a BS
degree in civil engineering and an MS
degree in petroleum engineering from
the Colorado School of Mines and a
PhD degree in petroleum engineering
from Louisiana State University. He has
written several technical papers in well-
construction technology, especially
on well integrity and directional and
horizontal drilling, and he coauthored
the book Directional Drilling. Santos
is editor of the SPE book Drilling and
Production Operations in HPHT Wells.
He was an SPE Distinguished Lecturer
for 200910. Santos is the current
chairperson of the SPE Bahia/Sergipe
Section and has served on several SPE
committees. He is a member of the JPT
SPE/IADC 163417 Detection of
Kicks Prompted by Losses and Direct-
Measurement Well-Control Method
Through Networked Drillstring With
Along-String Pressure Evaluation
by Daan Veeningen, NOV IntelliServ
SPE/IADC 163445 Feasibility Study
of Applying Intelligent Drillpipe in
Early Detection of Gas Influx During
Conventional Drilling by Karimi Vajargah,
The University of Tulsa, et al.
SPE/IADC 163438 Analysis of Potential
Bridging Scenarios During Blowout
Events by S.M. Wilson, Apache, et al.
Statistics on well-integrity incidents are difficult to find in the literature. There are
some examples of kick and blowout events, but normally they are scarce and focus
on the number of incidents and their root causes. There is, however, one example of
statistics that has been inspiring me throughout the years when I prepare my lectures
on how we can drill, complete, and produce wells safely. It is one that is presented in
the excellent textbook on high-pressure/high-temperature wells published by Aber-
deen Drilling Schools that shows human factors related to offshore blowouts. On the
basis of those statistics, I divided these factors into four groups: (1) inattention to
operations (25%) and inadequate supervision/work supervision (20%); (2) improper
maintenance of equipment (20%) and improper installation/inspection of equipment
(2%); (3) inadequate documentation (2%) and improper method or procedure (11%);
and (4) improper planning (12%). No direct human error involved was stated for the
remaining 8%. Here, I will show how these factors can be addressed to make a well-
integrity system efficient.
The first group represents 45% of the human factors related to offshore blow-
outs. One efficient way to address it is through training and assurance of personnel
competence. A well-integrity system implemented by any company of the oil industry
can be robust only if it strongly considers this aspect. Regrettably, this topic only bare-
ly appears in the literature and conferences on the topic of well integrity. Recently, the
International Oil and Gas Producers Association presented appropriate recommenda-
tions for technical enhancements to well-control training, examination, and certifica-
tion that can be extended to other activities related to well integrity.
The second group encompasses well-equipment-related issues. An adequate well-
integrity system should have the necessary safety barriers in place, understood, test-
ed, verified, and maintained. It should also have proper contingencies in case of failure
of these primary barriers.
The third group refers to documentation. Currently, there is a strong movement
toward elaborating or revising regulations related to well integrity by entities such as
the American Petroleum Institute and the International Organization for Standardiza-
tion. Creation of new or improvement of existing design and operational procedures
that result in safer operations throughout a wells life cycle is mandatory for an effec-
tive well-integrity system. It is also important that any well-integrity anomaly be docu-
mented, analyzed, and transmitted to all involved parties.
The last group refers to planning. Many well failures are a result of poor well
design and operation planning. A strong well-integrity system should rely deeply
on approaches such as risk assessment, management of changes, action plans, and
designbasis.JPT
TECHNOLOGY
WELL INTEGRITY
3WIFocusJan.indd 90 12/12/13 8:53 AM
91 JPT JANUARY 2014
T
he purpose of this work is to
investigate typical fracture
and collapse models with respect
to accuracies in the input data.
Uncertainties in the input data will be
considered to show how they contribute
to the cumulative uncertainties in
model predictions. In this approach,
the input parameters are assigned
appropriate probability distributions.
The distributions are then applied in the
wellbore-stability models. By means of
Monte Carlo simulation, the uncertainties
are propagated and outputs, which follow
a probability distribution, are generated.
Introduction
Wellbore-stability analysis is necessary
for safe drilling operations, especially
now that oil and gas operators venture
into more-challenging environments. A
wide range of parameters is required for
accurate study, many of which are subject
to uncertainties caused by measurement
errors. Error also can be introduced into
data through the methods of interpreta-
tion used. Epistemic error, arising from
imperfect human knowledge of a system,
is another source of input uncertainties.
Analytical models used for wellbore-
stability analysis are also often associ-
ated with uncertainties. Mathematical
modeling algorithms only try to approxi-
mate physical processes and are not true
representations of the problems under
study. The modelers should be aware of
the imprecision and limitations of these
physical models. Thus, output uncertain-
ty stems from the variations in input data
and uncertainties caused by wellbore-
stability-modeling processes.
Expected values give no information
about uncertainty. Deterministic estima-
tion of the downhole pressure limits pro-
vides only single-point values that lack
variability information. Instead, proba-
bility distributions can be used. With this
approach, cumulative uncertainties in
the output predictions can be quantified,
leading to a more-informed decision.
In-Situ Stress Field
For a given formation, the starting point
in wellbore-stability analysis is the in-situ
or pre-existing stress state. Knowledge of
the stress state is key to handling borehole
problems such as fracturing, lost circula-
tion, collapse, and sand production. The
in-situ stress state is normally assumed to
coincide with vertical and horizontal di-
rections. In relaxed depositional basins,
the values of these horizontal stresses are
usually lower than those of the vertical
stress. The horizontal-stress magnitudes,
however, may exceed those of the vertical
stress in strongly tectonic regions.
A stress state can be defined as normal-
fault, reverse-fault, or strike/slip-fault state
of stress. The normal-fault stress state is
assumed in this work. If the magnitudes of
the three principal stresses and the direc-
tion of one of the stresses are known, then
the stress state can be specified. The stress
concentration is usually very high around
the borehole wall. This effect decreases
rapidly away from the hole. At a long dis-
tance from the wellbore, the principal in-
situ stresses are undisturbed and lie along
their in-situ directions.
Wellbore Instabilities
Wellbore instabilities include such phe-
nomena as breaking of intact rock around
the wellbore because of high stress con-
centration or sudden temperature varia-
tions; loosening of rock fragments; and
fracture extension from the wellbore into
the formation, sometimes with a signifi-
cant loss of drilling fluid. They also con-
sist of such mechanisms as failure of rock
around the borehole because of inter-
action with drilling fluid, squeezing of
soft rocks such as salt and shales into the
wellbore, and activation of pre-existing
faults that intersect the wellbore.
A significant amount of break-
outs resulting from mechanical failure
around a wellbore can cause severe sta-
bility problems such as excessive torque
and drag, sudden increase in bottomhole
pressure, and stuck pipe. By application
of good drilling procedures, cavings can
be removed efficiently and safely. How-
ever, borehole instability remains the
major cause of lost drilling time and lost
downhole equipment.
Mechanisms of Wellbore Failure. Shear
Failure. The von Mises yield condition
and the Mohr-Coulomb shear-failure cri-
terion are the most commonly used hy-
potheses for evaluating rock shear fail-
ure. The von Mises condition considers
the three principal in-situ stresses as ac-
tive participants in wellbore compressive
failure. Well planners frequently use the
position of the stress state relative to the
failure envelope as a yardstick for evalu-
ating wellbore stability.
The Mohr-Coulomb model for shear
failure neglects the intermediate principal
stress but captures the effect of the direc-
tional strengths of shales. The maximum
stress is the tangential stress, followed by
the axial stress and the radial stress (well
pressure). This model predicts a mini-
mum well pressure that can cause well-
bore collapse in the direction of least in-
Uncertainty Evaluation of
Wellbore-Stability-Model Predictions
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
paper SPE 166788, Uncertainty Evaluation of Wellbore-Stability-Model Predictions,
John Emeka Udegbunam, Bernt Sigve Aadny, SPE, and Kjell Kre Fjelde, SPE,
University of Stavanger, prepared for the 2013 SPE/IADC Middle East Drilling
Technology Conference and Exhibition, Dubai, 79 October. The paper has not been
peer reviewed.
WI166788.indd 91 12/12/13 1:46 PM
92 JPT JANUARY 2014
situ stress. Wellbore collapse is a result of
shear failure of rock around a borehole.
To prevent this from occurring during
drilling, mud pressure must be such that
it will effectively carry the load caused by
the in-situ stresses around the wellbore.
Tensile Failure. Generally, rock for-
mations are weak in tension. In most
cases, the tensile strength of rock is set to
zero on the premise that drilling-induced
fractures initiate in flaws, joints, or pre-
existing fractures around the wellbore.
The analysis of tensile failure involves
application of the effective-stress concept.
This implies that a formation fails in ten-
sion when the least effective principal
stress exceeds the rock tensile strength.
Increase in a wellbore pressure will cause
the effective tangential stress to decrease.
The effective radial stress remains con-
stant, while the effective axial stress in-
creases. At a certain well pressure, the
value of the hoop stress becomes zero, and
a vertical fracture initiates as the stress
goes into tension. Thus, drilling-induced
fractures are associated with minimum
tangential stress. Critical fracture pres-
sure is the well pressure beyond which a
wellbore will fracture in tension.
Considering the two wellbore-
failure mechanisms, the absence of suffi-
cient well pressure capable of supporting
the load caused by high stress concen-
tration around the wellbore can lead to a
wellbore collapse, but an excessive mud
weight will cause borehole fracturing,
sometimes with a loss of drilling fluid
into the formation.
Wellbore-Stability Modeling
Both numerical simulators and analyti-
cal models are used for wellbore- stability
analyses. These tools do not provide accu-
rate descriptions of geological processes,
mainly because of limited human knowl-
edge of subsurface strata. However, on
the basis of geomechanical principles,
drilling engineers can estimate fracturing
and collapse pressures by use of mathe-
matical approximations, which describe
the relationships among input variables.
In this work, a vertical-well con-
figuration is considered. The formation
around the wellbore is assumed to be lin-
early elastic. Therefore, complex mate-
rial behavior such as nonlinear elastic-
ity or elastoplasticity is not treated. If an
inclined wellbore is assumed, the in-situ
stress field must reflect borehole inclina-
tion and direction.
Uncertainty in the Input Data
Measurement and interpretation errors
are the major causes of input-parameter
uncertainties. This section briefly pres-
ents some important parameters affect-
ing wellbore stability and their assumed
measurement or prediction uncertainties.
Pore pressure can be estimated with
direct measurements. For a very-low-
permeability rock such as shale, indirect
methods, which use drilling data and well
logs, are used. If a nonpermeable barrier
exists over an interval, a discontinuous
pore-pressure profile is expected. There-
fore, higher uncertainty is associated
with the indirect pore-pressure measure-
ments than with the direct estimations.
We have mentioned that the determi-
nation of the in-situ stress state is crucial
to wellbore-stability analyses; stress mag-
nitudes will ultimately affect the accuracy
of the model predictions. These should be
considered uncertain parameters because
there are no existing methods to measure
the stresses accurately. However, the in-
situ stresses can be estimated by use of
several methods. The overburden stress is
calculated by integrating the bulk density
of drilled cuttings over the depth interval,
with values obtained every 30 m. At great-
er depths, density or sonic logs are used
to estimate overburden stress.
The minimum horizontal stress can
be estimated with leakoff-test (LOT) data,
by interpreting the slope change (deviation
from linearity) on an LOT plot when pres-
sure drops after a mud pump is stopped. In
a relaxed depositional environment, equal
horizontal stresses are normally assumed.
The value of maximum horizontal stress
is more difficult to estimate with direct
methods. With the inversion technique, an
improved accuracy in the estimations of
both magnitude and direction of the two
horizontal stresses can be obtained. In
addition, the rock-mechanical properties
such as cohesive rock strength and rock-
friction angle are often derived from indi-
rect measurements by interpreting sonic
logs. There is higher uncertainty in the es-
timation of cohesive rock strength than in
the estimation of internal friction.
For a discussion of the example case
and simulation results, please see the
complete paper.
Sensitivity Analysis
A sensitivity analysis is conducted to as-
certain input factors that are most re-
sponsible for output variability and
that require further research. A mod-
eler can thereby justify whether input-
parameter estimates are accurate enough
for a model to give reliable predictions. If
not, more work will be directed toward
improving the estimations of these un-
certain parameters.
The sensitivity analysis is required to
understand how the model predictions re-
spond to changes in input variables, there-
by complementing the analyses presented
so far in this work. This allows determi-
nation of the parameters that contribute
most to the cumulative uncertainties in
the critical fracture- and collapse- pressure
predictions. The results from the analyses
will be useful when calibrating the models
against offset-well data.
For a full discussion of the differen-
tial method used in this analysis, please
see the complete paper.
Monte Carlo Sensitivity Analysis. In
this analysis, the input parameter that
is considered uncertain assumes a prob-
ability distribution, while other param-
eters are treated as fixed factors. This is
done to quantify the individual contri-
bution of each parameter to the cumu-
lative output variances. The base-case
scenario, in which all the input data are
treated as random variables, serves as a
standard for measuring the degree of the
output variability caused by the uncer-
tainty in a given parameter. In the prob-
abilistic approach, only triangular distri-
bution will be considered.
In each run, both the uncertain pa-
rameter and fixed factors are applied in
the wellbore-stability models. The out-
puts, which follow a probability distri-
bution, are generated after 600,000
simulations. In the results, the fracture-
pressure distribution for the minimum-
horizontal-stress uncertainty has the
highest spread or variance compared
with other input parameters; therefore,
minimum horizontal stress is the most
influential factor. For the collapse pres-
sure, the sensitivity determined for the
cohesive rock strength shows that that
parameter is the most important input
factor responsible for the uncertainty in
the pressure. JPT
WI166788.indd 92 12/12/13 1:46 PM
Formation Evaluation
|
Well Construction
|
Completion
|
Production
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Weather_093_jpt.indd 1 12/11/13 3:22 PM
94 JPT JANUARY 2014
D
eepwater cementing becomes
increasingly challenging as
drilling operations move to greater
water depths and more-remote
locations. Before the first exploration
well for an operator offshore Tanzania
was spudded, an extensive cementing-
operations risk analysis was performed.
The risks determined were low
temperatures at seabed, unconsolidated
formations close to seabed, potential
shallow gas, and likely presence of
hydrates. To drill further sections
successfully, objectives were identified
as zonal isolation across the shallow-
flow and hydrate zones, cementing
back to seabed, and good cement
around the casing shoe.
Introduction
Block 2 (Fig. 1) is located south-
east of Tanzanias capital, Dar es Sa-
laam. The water depths in Block 2 vary
from 1000 to 3000 m. The target is an
excellent-quality sandstone gas reser-
voir with very large potential. The sea-
bed consists of soft clays and silts with
minor sandy intervals. Shallow hazards
were identified for this block from seis-
mic data.
Preparation for the exploration
phase started in 2007 when the license
for Block 2 was awarded. Two explo-
ration wells have been drilled in Block
2 offshore Tanzania to date. The wells
were drilled in ultradeep water, with
respective water depths of 2419 and
2627 m. Both wells were drilled suc-
cessfully and have found commercial
gasreserves.
Well Design
The well design for both wells was jetting
a 36-in. conductor casing to provide suf-
ficient well-bearing capacity. The surface
casing was set deep enough to isolate all
shallow zones with potential hydrates
and shallow water and gas flow. The in-
termediate string was set above the top
of the target reservoir, and the reser-
voir was drilled and plugged after the
reservoir was evaluated. Both explora-
tion wells were drilled vertically to total
depth. The riserless section was drilled
with seawater and water-based mud,
while the deeper sections were drilled
with a synthetic-based mud.
Challenges
The main challenges for the two wells
were related to the great water depth (low
fracture gradients and low temperatures)
and the risk of encountering hydrates
and potential shallow flows, which would
need to be isolated by the surface casing.
Gas Hydrates. Gas hydrates are crystal-
line solids (Fig. 2). They consist of a gas
molecule surrounded by a cage of water
molecules. Many gases have molecular
sizes suitable to form hydrate, including
such naturally occurring gases as car-
bon dioxide, hydrogen sulfide, and sev-
eral low-carbon-number hydrocarbons,
Zonal Isolation Through Gas Hydrates
Offshore Tanzania
of paper SPE 163462, Zonal Isolation Through Gas Hydrates Offshore Tanzania,
by J. Vlstad and T. Tveit, Statoil, and P. Aguilar, N. Hurtado, and M. Bogaerts,
Schlumberger, prepared for the 2013 SPE/IADC Drilling Conference and Exhibition,
Amsterdam, 57 March. The paper has not been peer reviewed.
Fig. 1Location of Block 2, offshore Tanzania.
Tanzania
Block 2
Dar es Salaam
Zafarani
Lavani
0 50 km
WI163462.indd 94 12/12/13 1:47 PM
95 JPT JANUARY 2014
but most marine gas hydrates that have
been analyzed are methane hydrates.
Gas hydrates are naturally found when
three conditions are found at the same
time and place: (1) the presence of gas-
hydrate formers, (2) the presence of
water, and (3) pressure and temperature
within the domain of stable gas hydrates.
Shallow Flow. The risk of shallow flow
was highlighted for both wells after the
interpretation of seismic data. Thin sand
layers were identified as potential zones
for shallow gas. Also, the slight risk of
shallow water was identified for each well.
Remote Operations. Logistics were
very challenging because of the remote-
ness of the operations. Engineering sup-
port for the project was provided out
of Dar es Salaam. The operating base
is in Mtwara, located in the south of
Tanzania. Slurry laboratory testing was
initially performed at service-company
laboratories in Cape Town, South Af-
rica, and Aberdeen. During the project,
the laboratory in Mtwara was upgraded
and became able to perform most tests
required for deepwater cementing. All
equipment and materials had to be or-
dered in advance; lead times for com-
mon items are 3 to 6 months and are lon-
ger for specialty products.
Cementing Design
A study was initiated to determine optimum
slurry design and ensure that annular tem-
peratures stayed within the gas-hydrate-
stability zone during cement placement
and the cement-hydration period.
Slurry Design. The formation-pressure
and -strength prognosis indicated a nor-
mal pore pressure of 8.6 lbm/gal in the
upper sections of the hole. The over-
burden and fracture gradient followed a
normal trend, with an expected fracture
gradient of 8.6 lbm/gal at seabed and
9.8 lbm/gal at the surface-casing setting
depth. To avoid losses close to seabed,
the density of the lead slurry was opti-
mized at 12.0 lbm/gal.
The temperature at seabed was de-
termined to be 3C. The geothermal gra-
dient in the first 1000 m below seabed
was 5.4C/100 m, and the gradient would
decrease after that. The expected bot-
tomhole static temperature (BHST) at the
surface-casing setting depth was 34C.
Computer simulations showed a BHST of
only 7C. For the cement to develop com-
pressive strength quickly, to be able to con-
tinue drilling operations, a neat 15.8-lbm/
gal tail slurry was placed around the shoe.
Special low-temperature additives were
used to enhance the development of com-
pressive strength at low temperatures.
The slurry design for the surface
casing needed to (1) be lightweight to
avoid losses, (2) develop quick compres-
sive strength at low temperatures, (3)
be gas-tight to overcome the potential
shallow-flow hazards, and (4) have a low
heat of hydration to avoid destabiliz-
ing the hydrates. The main focus during
the early design stages was on select-
ing the proper slurry for cementing the
gas- hydratezone.
Higher temperatures or lower pres-
sures than those under equilibrium can
destabilize gas hydrates. This can happen
during and after cementation. The param-
eters to consider include the following:
The total heat released during
cement hydration, which
depends on the amount of
reactive material per volume of
slurry
The speed at which the heat is
released, which depends mainly
on wellbore temperature and
additives
The dissipation flow, which
depends on well geometry and
fluid and formation thermal
properties
A number of techniques exist for
determining the heat of hydration of a
setting-cement system, some of them
being standardized. Studies show that
for the same slurry density, the heat
of hydration of extended slurry is 1.5
times higher than that for an optimized-
particle-size-distribution (OPSD) cement
or for a foamed cement, both of which
have very similar heat of hydration.
Some guidelines exist for design-
ing slurries for the case of shallow-flow
zones. The slurry must be stable, with
zero free fluid and no sedimentation.
It must have good fluid-loss properties;
less than 50 mL/30 min is generally rec-
ommended. The transition of the critical
hydration period must be minimized for
the cement to develop from the critical
static gel strength (CSGS) to a static gel
strength of 500 lbf/100 ft
2
in less than 45
minutes. The OPSD blend was optimized
to meet these criteria. Liquid additives
were used to provide low fluid loss at the
anticipated bottomhole circulating tem-
perature (BHCT).
On the basis of these results, an
OPSD-cement system was selected to
cover the hydrate zone offshore Tanzania.
Temperature Simulations. To en-
sure that the temperatures in the an-
nulus stayed within the stable zone,
the temperature in the annulus of the
26-in. open hole (OH) was simulated.
Ocean temperatures and current ve-
locities were derived, and a worst-case,
higher-than-actual geothermal gradient
of 6.4C/100 m was assumed. Actual job
design and slurry properties were used
for the simulation, and an experimental
measured heat of hydration was used to
estimate the change in temperature dur-
ing the cement-setting phase.
Results for the 26-in.-OH section
show that the upper bound slightly ex-
ceeds the gas-hydrate-transition temper-
ature in the case of very high pore-water
salinity. Thus, unless unusual salinity ex-
ists, the risk of gas-hydrate dissociation
while cementing the 26-in.-OH section
appears to be low.
Execution
Zafarani 1. After jetting the conductor
casing, the 26-in.-OH section was drilled
from seabed at 2627 m to 3098 m, with
a maximum deviation of less than 1.
The top section was drilled with seawa-
ter to minimize the disturbance of the
hydrates. Extra care was given to keep
the salinity of the seawater and sweeps
as low as possible to avoid dissolution
of hydrates. The well was displaced to a
Fig. 2Methane hydrates.
WI163462.indd 95 12/12/13 1:48 PM
Technical challenge:
initiated in Houston
discussed in Dubai
solved in Moscow
Thats the power of SPE Connect.
SPE Connect is your virtual destination to communicate, collaborate, and
connect with fellow SPE members and industry leaders from around the
world. Its time you joined.
www.spe.org/go/connect
Scan here to download
the free app.
Connect_096_jpt.indd 1 12/12/13 12:19 PM
JPT JANUARY 2014
weighted pump-and-dump (PAD) mud
before drilling through the potential
overpressured zone.
Because the wellbore was drilled
nearly vertically, centralization focused
on a good shoe and good standoff across
the potential flow zones and the hydrate
interval. The casing was centralized by
use of five centralizers, with a minimum
standoff of 61%.
The cement job was executed as an
inner-string job. The casing was run with
seawater, and, after landing, the inner
string was displaced with PAD mud. After
landing the casing, the well was circu-
lated to break any gels in the PAD mud
to ensure good flow around the casing.
Volumes were based on OH plus 150%
annular excess. A volume of 150 bbl
of a 10.9-lbm/gal weighted spacer was
pumped ahead of the slurry, followed by
510 bbl of gas-tight 12.0-lbm/gal OPSD-
blend slurry. A 144-m section of tail slurry
was placed around the casing shoe. Soft-
ware simulation showed good cement
coverage across the entire wellbore.
Lavani 1. A pilot hole was drilled before
spudding to investigate the presence of
overpressured sands; when none were
encountered, the section was drilled
with seawater. Only the last 15 m of the
hole was drilled with a 10.9-lbm/gal PAD
mud. The 26-in.-OH section was drilled
from seabed at 2419 m to 3015 m, with a
maximum deviation of 1.4.
The casing was centralized by use of
20 centralizers, with a minimum stand-
off of 59%. The casing was run with sea-
water, and, after landing, the inner string
was displaced with PAD mud. After land-
ing the casing, the well was circulated to
break any gels in the PAD mud to ensure
good flow around the casing.
The cement job was executed as an
inner-string job. Volumes were based on
OH plus 150% annular excess. A volume
of 150 bbl of a 10.9-lbm/gal weighted spac-
er was pumped ahead of the slurry, fol-
lowed by 797 bbl of gas-tight 12.0-lbm/gal
OPSD-blend slurry. A 100-m section of tail
slurry was placed around the casing shoe.
Software simulation showed good cement
coverage across the entire wellbore.
Cement-Job Evaluation
Zafarani 1. The job was executed as per
design, except for a small pump-rate de-
crease caused by bulk-transfer conditions
on location. Cement returns were con-
firmed by a remotely operated vehicle
(ROV) during the job (Fig. 3), and no gas
was observed during the setting of the
cement. The wellhead was stable, and
the blowout preventer (BOP) was con-
nected without problems. The formation-
integrity test showed a value sufficient to
allow drilling of the next section to con-
tinue safely without any remedial work.
Lavani 1. The job was executed as per de-
sign. Cement returns were confirmed by
the ROV during the job, and no gas was
observed during the setting of the ce-
ment. The wellhead was stable, and the
BOP was connected without problems.
The leakoff test showed a value suffi-
cient to allow drilling to continue, en-
abling the elimination of one intermedi-
ate string from the well design. JPT
Fig. 3The ROV confirms cement returns to seabed on Zafarani 1.
Enhance the safety in the wells by

'
Make sure there is a

common understanding
W
using
t / d
www.wellbarrier.com
W, ^, E
.
W 8
WI163462.indd 97 12/18/13 8:51 AM
98 JPT JANUARY 2014
A
DMA-OPCO had integrity
problems in one of its gas wells,
and abandonment was the only option
available to restore the integrity of the
offshore multiwell jacket and revive
adjacent wells. Integrity problems
included oil/gas bubbles observed on
the seabed around the conductor pipe
and high sustained pressures in the
outer cemented casing annuli. Because
the leak was determined to be located
outside the casing, the perforation of
several intervals was required. Some of
the intervals were perforated through
three casing strings, and the rest
through four strings of casing, before
being squeeze cemented.
Background
The example well, designed as a 7-in.-
monobore gas-production well (see
Fig. 1), was due for abandonment. The
surface leaks in the different casing annu-
li had to be resolved before proper aban-
donment could occur. It was clear from
the prejob analysis that cement-squeezing
operations would be required at different
depths through three and four casing an-
nuli. Techniques for exposing these annu-
li for remediation included underreaming
with a milling tool, abrasive jetting, and
perforating. Underreaming would have
been a very costly operation, and abrasive
jetting is not reliable to penetrate through
more than one casing string; therefore,
perforating was chosen as the method for
accessing the requiredannulus.
Perforating through four strings of
casing is not typical, and many questions
were raised concerning the reliability of
this technique and how its effectiveness
would be measured. With the need to ac-
cess up to four different annuli, conven-
tional circulation and pressure-testing
techniques could not confirm that all cas-
ings had been penetrated. Modeling and
testing were performed to improve confi-
dence in this technique.
Perforating Gun and
Charge Selection
Modeling. A 4-in. gun was selected
for carrying a premium deep- penetration
charge in the 7-in. liner. Two charge op-
tions were available for this: a 5-shots/ft
(spf) 72-phase version carrying 38.8-g
HMX (a nitroamine high explosive) per-
foration charges and a 12-spf 45-phase
version carrying 22-g HMX charges.
The model was set up with the casing and
other well parameters and run with various
perforation-charge/guncombinations.
The modeling results show that all
charges in all phases will penetrate the
four casing sizes; however, the outer-
most-casing entry-hole size with the
12-spf gun is very small, ranging from
0.16 to 0.09 in.
Laboratory Testing. There was con-
cern over the modeling results because
the casing entry-hole prediction is not
considered accurate beyond two cas-
ing strings; therefore, to improve confi-
dence in the results, a series of tests was
conducted in the laboratory. The labora-
tory tests were set up to simulate offset
casing, and each phase of the perforat-
ing gun was tested with the same types of
charges that would be used in the field.
For the 5-spf 72-phase perforat-
ing gun, shots were made at 0, 72, and
144 phases; for the 12-spf 45-phase gun,
shots were made at 0, 45, 90 135, and
180 phases. Single shots were made in
the desired phase directions.
The results confirmed the necessi-
ty for performing the physical testing
to verify the charge performance under
these actual field conditions. The 12-spf
gun is unsuitable because it does not
penetrate through the outer casing in the
180-phase shot, and the entry-hole sizes
for the other phases are unacceptable.
The 5-spf results were more encour-
aging but also show considerable devia-
tion from the model results in the 9-
and 13-in. casings.
The discrepancies between the
model and laboratory-test results are not
Perforating Through Casing Strings
To Remediate Annulus Gas Leak
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
paper SPE 166729, Perforating for Squeeze Through Four Casing Strings To Remediate
Annulus Gas-Leak Problem, by Mohamed El-Sayed Ibrahim, SPE, Ahmed Khalifa
Al-Neaimi, SPE, Mohamed Abdelsalam Hassane, SPE, Abdul Salam Mohamed
Al-Mansoori, SPE, Shanof Mohamed, SPE, and Omar Al-Mutwali, SPE, ADMA-
OPCO, and Alan Salsman, SPE, Schlumberger, prepared for the 2013 SPE/IADC
Middle East Drilling Technology Conference and Exhibition, Dubai, UAE, 79 October.
The paper has not been peer reviewed.
Fig. 1Casing diagram.
Annulus: ABCD
Formation 1
Reservoir A
Reservoir B
Reservoir C
Sea Level
Sea Bed
30 in.
(Depth 1)
7-in. Casing
(Depth 5)
9-in. Casing
(Depth 4)
18-in. Casing
(Depth 2)
13-in. Casing
(Depth 3)
13-in. DV
9-in. DV
WI166729.indd 98 12/12/13 1:46 PM
99 JPT JANUARY 2014
unexpected. At the moment, the three- and four-casing-string
entrance-hole prediction in the model is based on extrapolation
techniques only. This will be updated in the model once more
tests arecompleted.
On the basis of these results, the 5-spf 72-phase gun with
the 38.8-g HMX charge was chosen for this job.
Gun Phasing. The requirement for the most-powerful deep-
penetrating perforating charge to be run meant that the phas-
ing had to be a compromise. The 5-spf gun is available in only
the 72 phase, as indicated in Fig. 2. A gun system could have
been developed with some engineering modifications, but time
and financial constraints prevented this. To improve the effec-
tive phasing of the gun system and increase the possibility that
all channels would be accessed, special orienting adapters were
used. These adapters have locking keys that allow for a 90 off-
set between the perforating guns. The perforating intervals were
20 ft in length, so with four 5-ft-long perforating guns three of
the orienting adapters could be run. This would then offset the
phase between the guns by an effective phasing of 18. A side
view of the assembled gun with the adapters is shown in Fig. 3.
Job Execution
Several zones were selected to be perforated and squeezed: two
zones with three casing strings and two zones with four casing
strings. The guns were loaded in the onshore gun shop and shipped
to the rig, where they were assembled at the wellsite as four 5-ft
gun assemblies. Because of local regulations requiring pipe in
the well at the time of perforating operations, these guns were
run on drillpipe with a tubing-conveyed-perforating pressure-
actuated firing head and were shot in overbalanced conditions.
To further improve the chances of reaching all of the leak
paths behind the pipe, each zone was perforated twice, making
the final shot density 10 spf in the perforated interval. There
was no attempt made to alter the phasing of each run; thus, the
relative shot phasing for each run was random and was likely to
be different from that of the initial run, further improving the
chances of a successful squeeze job.
Special fine cement designed for cement-squeeze opera-
tions addressing small channels was pumped at an acceptable
rate into the perforations and then allowed to set.
The first perforating operation was though three cas-
ing strings in which two zones were shot 30 ft apart to allow
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Fig. 272 phasing.
0
WI166729.indd 99 12/16/13 7:51 AM
If knowledge is power,
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Petrowiki_100_jpt.indd 1 12/16/13 2:02 PM
101 JPT JANUARY 2014
for a circulation squeeze. Once the sec-
ond gun was removed from the well, a
cement-squeeze pipe string with packer
was run and a circulation squeeze and
block squeeze were executed. This oper-
ation was repeated until the zone exhib-
ited a good pressure test.
The second and third perforating
operations were through four casing
strings, and a block squeeze was carried
out. After the cement was set, a pres-
sure test was performed in the squeezed-
off intervals, which often showed an in-
complete squeeze. Consequently, more
cement was pumped to squeeze the re-
maining channels. This operation was re-
peated until the interval showed a good
pressure test, confirming that the zone
was sealed.
Results
Care was taken to completely seal off each
of the four zones that were squeezed.
While it was not possible to determine
the cement placement with respect to
the different annuli, an assumption was
made that the special squeeze-type ce-
ment together with the multisqueeze
method would place cement into the
channels where gas was leaking and
would seal them.
The annulus pressure was moni-
tored during the operations and contin-
ued to be monitored after the job. The
pressure was monitored for a period of
3 months after the job was completed.
The results prove that the abandonment
job was successful and that the objectives
were achieved. JPT
Fig. 3Side view of the four-gun
assembly.
5-ft guns each offset by 90
90 offset adapter
180 offset adapter
270 offset adapter
WI166729.indd 101 12/12/13 1:46 PM
Win Thornton, SPE,
is vice president of
decommissioning,
global projects
organization, at
BP. He has more
than 35 years of
experience in offshore construction and
decommissioning projects working as
an operator for BP, Chevron, and Oxy;
a contractor from Brown & Root and
WorleyParsons; and a consultant for
Winmar and TST. Thornton holds a BS
degree from the Georgia Institute of
Technology and an MS degree from the
University of Houston. His recent work
includes offshore decommissioning
and reuse projects in the Gulf of
Mexico, west Africa, California,
Alaska, southeast Asia, and South
America. Thornton has championed
the environmentally sound and cost-
effective disposal of obsolete platforms
through placement in state-sanctioned
Rigs to Reefs programs. He is a
member of the JPT Editorial Committee.
IPTC 16945 Environmental Liabilities in
the Oil and Gas Industry and Life-Cycle
Management by Lian Zhao, Integrated
Environments, et al.
OTC 24461 Advances in Autonomous
Deepwater Inspection by D. McLeod,
Lockheed Martin, et al.
SPE 161556 Axis of Success: A Unique
Professional Plug-and-Abandonment
Project in a Populated Town Area
by Hazem Abdelsalam, ADCO, et al.
Industry perceives decommissioning projects as more risky and uncertain than capi-
tal projects. Several recent decommissioning projects delivered in an immature mar-
ketplace seem to support this view. What can be done to change this perception and
enable delivery of safe and cost-effective decommissioning projects?
I have always been a fan of this quote from Irving Fisher: Risk varies inverse-
ly with knowledge. I believe it can provide insight into a strategy that can improve
the delivery of decommissioning projects. What can be done around decommission-
ing projects to gather knowledge of the asset to facilitate better planning and delivery
and reduce the risk and uncertainty associated with decommissioning? The select-
ed papers and additional reading listed here illustrate the use of knowledge to plan
decommissioning more effectively and to understand the risks associated with select-
ed end states. The following are a few thoughts on the use of knowledge to reduce risk
and uncertainty in decommissioning:
Decommissioning differs from a capital project in that we know (or think we
know) what the asset looks like. The critical uncertainty is the condition of
that asset at end of life. What diagnostic information do we gather routinely
over the life cycle that can provide clarity on the condition of that asset for
decommissioning? Perhaps we need a key performance indicator analogous
to front-end loading in capital projects that addresses the quality of our
decommissioning and condition knowledge of that asset.
Identify the responsible party in an organization for gathering, distilling, and
using asset knowledge for decommissioning. Asset information comes from
various sources over the life cycle of the asset but needs a decommissioning
set of eyes to identify and manage these risks. An analogy could be how
we typically view and manage regulatory or asset-integrity information.
This is an accountability that spans the life cycle of the asset through to
decommissioning.
When planning the actual decommissioning work, identify and perform
diagnostic work in cooperation with the supply chain as part of your
market-engagement strategy. It is better to know the condition of what
needs plugging and decommissioning than to find out halfway in. The
unknowns become planned work activities instead of risks. This optimally is a
cooperative effort between the owner and contractor to identify and manage
uncertainties of the project, not just a set of contractual terms and conditions.
Share detailed experience, case studies, and lessons learned through
professional forums such as SPE. JPT
TECHNOLOGY
DECOMMISSIONING
AND ABANDONMENT
4DAFocusJan.indd 102 12/12/13 11:08 AM
A
dvances in modeling techniques
allow quantitative prediction
of long-term trends in cuttings-pile
characteristics and environmental risks,
providing firm direction in mitigating
risks. Modeling involving fluid dynamics,
soil mechanics, scientifically verified
3D dispersion modeling, contaminant
degradation, and seabed recovery
was used in several scenarios: the
extant pile, moving the pile across the
seabed using suction pumps, backflush
discharges related to retrieving the pile,
and disturbance from remaining jacket
footings ultimately falling into the pile
after several hundredyears.
Introduction
The Murchison platform is located in
156m of water in the northern North Sea
and is operated by CNR International.
Drilling operations had been conduct-
ed at the field since the 1970s, ending in
2008. Discharges of drill cuttings and
drilling mud have resulted in the forma-
tion of a drill-cuttings pile beneath the
platform jacket structure. Between 1980
and 2000, oil-based muds were used and
oil-contaminated discharges took place
in line with normal permitted opera-
tions, and the cuttings pile now in place
is consequently oil-contaminated. Fig. 1
shows the location of the Murchison plat-
form and the local bathymetry, and Fig. 2
illustrates the jacket base.
The Convention for the Protection
of the Marine Environment of the North-
East Atlantic (OSPAR) Commission Rec-
ommendation 2006/5 sets out a manage-
ment regimen for such oily-cuttings piles,
depending largely on thresholds against
which the level of pollution attributable to
a historical cuttings pile may be measured
in order to determine whether the level of
pollution could be significant. An assess-
ment of the Murchison pile was submit-
ted to the commission in 2008 as part of
the regulators implementation report,
concluding that the Murchison pile did
not exceed the relevant criteria and that
it could be left to degrade by natural pro-
cesses. For those piles that can be dem-
onstrated to have characteristics below
OSPAR thresholds, the recommendation
states that no further action is required
and that the cuttings piles may be left in
situ to degradenaturally.
The Murchison field is in the process
of being put forward for decommission-
ing, and the assessment made in 2008
regarding the rate of oil loss and the per-
sistence footprint has been re-evaluated.
By use of records of the discharges made
from the platform, survey data from the
Murchison cuttings pile, and industry
data sources on the composition of drill-
cuttings piles, a model of the existing pile
has been constructed and used to under-
stand the present condition and long-
term fate of the pile.
Approach
The original drilling discharges were
modeled by use of the dose-related risk
and effect assessment model (DREAM)
published by SINTEF, which incorporates
the ParTrack submodel used for model-
ing dispersion and settlement of solids.
The model predicts the fate of materials
discharged to the marine environment.
DREAM can also calculate an esti-
mate of risk to the environment by use
of a metric known as the environmental-
impact factor (EIF), based on the ratio of
the predicted environmental concentra-
Modeling Options
for Drill-Cuttings Management
of paper SPE 164983, Modeling the Options for Managing Drill-Cuttings Piles on
Decommissioning, Sean Hayes, SPE, Genesis, and Liz Galley, CNR International,
prepared for the 2013 SPE European HSE Conference and Exhibition, London, 1618
April. The paper has not been peer reviewed.
Fig. 1Plan view and relief view of Murchison drill-cuttings pile.
139
140
142
143
144
145
146
148
149
150
151
152
153
155
156
DA164983.indd 103 12/12/13 2:14 PM
tion to the predicted no-effect concentra-
tion (PEC/PNEC ratio). A species sensitiv-
ity distribution is applied to each stressor
to identify a PNEC, and PEC/PNEC ratios
are calculated for the individual stressors
identified as relating to drill cuttings (e.g.,
toxicity of chemicals and oxygen deple-
tion). This allows the model to combine
and compare the contributions of differ-
ent stressors to the overall risk, known
as the potentially affected fraction (PAF).
The level of 5% PAF is a generally accept-
ed risk level, and as such, the EIF value is
taken as the spatial extent over which the
multistressor PAF exceeds 5%.
The model has been developed to
calculate the dispersion and deposition
on the seabed of drilling mud and cut-
tings as well as the dispersion of chemi-
cals in the free-water masses and has
been validated in the field. The calcula-
tions are based on a Lagrangian, or par-
ticle, approach combined with a near-
field plume model and the application
of external current fields for time- and
depth-resolved currents.
Application
The data set comprises 4 years of
single-point current data (198992) for
the Murchison location at eight depth
bands through the water column. The
data set is repeated in the model to pro-
duce currents spanning the period from
1980 to 2001. Wind-driven forcing of
the surface currents is not included in the
modeled currents, and the cuttings de-
position in water depths of 156 m is not
expected to be affected by the shallow
surface conditions. The model takes into
account the thermocline and halocline.
(For a detailed discussion of the Murchi-
son mud and cuttings discharges, please
see the complete paper.)
Oil Composition. A variety of differ-
ent oil types have been used throughout
the Murchison drilling program. Within
each type, there might be several possi-
ble formulations. There are no definitive
records available to identify what was
used. Therefore, assumptions have been
made about the general type of oil used
on the basis of the years when drilling
took place (i.e., diesel-based, low- toxicity
oil, and synthetic oil). Each of these ge-
neric types is composed of a variety of
specific oil components. Typically, these
can be categorized into groups with sim-
ilar properties, including aliphatic oil,
benzene and alkylated benzene [ben-
zene, toluene, ethylbenzene, and xylene
(BTEX)], naphthalenes, and polycyclic
aromatic hydrocarbons(PAHs).
Results
Re-Creating the Extant Pile Within the
Model. Predicted Sedimentation Lev-
els. Predicted deposition thickness of the
drill cuttings and drilling mud over an
area of approximately 88 km around
the release point is shown in Fig. 3. This
indicates that the majority of the cuttings
deposits are close to the discharge point
while a smaller proportion distributes
over a wide area to a low thickness. The
greatest accumulation of cuttings is be-
neath and slightly to the southeast of the
release point, reflecting the prevailing
currents in the area.
Oil Concentrations in the Sedi-
ment. Concentrations are predicted at
the end of the discharge period, and then
at a number of years subsequently (1, 2,
5, 10, and 20 years). It is possible to view
each hydrocarbon type separately in the
model, and it can be seen that overall,
after 20 years, the concentrations of oil
are still dominated by aliphatic hydro-
carbons, which are an order of magni-
tude higher in concentration than PAHs.
The model predicts that BTEX and naph-
thalenes degrade relatively quickly, and
that hydrocarbons in the thinner areas of
deposition degrade much more quickly
than those in the deposits of several cen-
timeters or more.
Mass of Oil Lost From Pile Over
Time. The amount of oil loss from the
pile (i.e., from all the deposition with-
in an 88-km area around the dis-
charge point) is seen to begin at a rate of
119 t/a over the first year after discharg-
es ceased, dropping rapidly over time to
less than 5 t/a at Year 20 and beyond. The
high initial rates could reflect the rela-
tively high biodegradation rates of BTEX
and naphthalene and the fact that most
oil reduction appears to take place in the
thinner areas of deposition.
Area of Seabed With an Oil Con-
centration Above 50 mg/kg. Because a
gradually reducing footprint remains on
the seabed, the area multiplied by the du-
ration (footprintpersistence) will in-
crease slowly over time. To understand
whether this might, at some point in the
future, reach the OSPAR criterion, the
trend was translated into a power rela-
tionship with time and then predicted
into the future. It was calculated that
the forecast of footprintpersistence
over time would not exceed the
500 km
2
years criterion, even project-
ing over thousands of years.
Environmental Risk to the Seabed.
The modeling predicts that, at the end of
the simulation (i.e., the end of 2019),
areas where the risk is greater than 5%
are predicted to be contained within ap-
proximately 1 to 2 km of the well. Over-
all environmental risk is predicted to
be dominated by PAH content, reflect-
ing its modeled persistence and toxic-
Fig. 2Cuttings pile and jacket base.
50
40
30
20
10
0 m
True North
Platform North
DA164983.indd 104 12/12/13 2:14 PM
ity. Oxygen depletion (and consequential
increase in sulfide concentration) is also
significant, reflecting the concentrations
of biodegradable oil present. Other fac-
tors are predicted to be much less sig-
nificant, including heavy metals, burial
thickness, and grain-sizechange.
Moving the Cuttings Pile. Because the
cuttings pile obscures part of the jacket,
certain jacket-decommissioning issues
are contingent on the removal of the pile
to allow access to the jacket.
A second modeling exercise exam-
ined the effects of pumping drill cuttings
from below the Murchison platform to an
area on the seabed located 70 m from the
center of the platform. In this scenario,
the pile is modeled with a degree of deg-
radation of the oil and a distinction be-
tween the main layers of degraded mud
on the surface, a relatively undegraded
oily core, and a bottom layer represent-
ing the original tophole and water-based-
mud cuttings. Two pumping regimens
were modeled in relation to the number
of locations to which the pile is being
pumped, and for each of these, a range
of water/solid ratios and work timespans
was modeled to account for the uncer-
tainty associated with this procedure.
Collapse of the Structural Piles. The
possibility exists that, even during de-
commissioning, the jacket footings may
remain. A further modeling exercise was
undertaken to examine the effects of
disturbance of the existing cuttings pile
below the Murchison platform caused
by the ultimate collapse of the struc-
tural piles that surround each jacket leg
should both the structural piles and the
cuttings pile be left in situ. This collapse
is something that could happen in sev-
eral hundred years time, given expected
corrosion rates. The cuttings themselves
would be significantly weathered and de-
graded by this time.
An exercise in fluid mechanics was
undertaken to calculate the velocity of a
falling pile as it strikes the cuttings pile,
taking drag into account. A second ex-
ercise in soil mechanics was undertaken
to model the displacement of cuttings as
the energy of the falling pile is convert-
ed into mechanical movement of the pile
and ejection into the water column. The
approach taken was expected to lead to
an order-of-magnitude estimation of the
potential effects.
The majority of resuspended ma-
terial was predicted to deposit within
1km of the cuttings pile, while finer com-
ponents will travel considerably farther.
The peak thickness of deposition was ap-
proximately 3.5 mm from a single pile
failure, and 27.5 mm for all the piles fail-
ing, which is predicted to occur within
40 m of the discharge point. Thicknesses
rapidly diminish with distance.
For a scenario in which all the struc-
tural piles collapse within 1 year of each
other, risks to the seabed above a level
of 5% are predicted to occur initially
up to 1 km from the cuttings pile in the
most-pessimistic scenario, reducing over
time to within 500 m after approximate-
ly 1 year. A small area of contamination
is predicted to persist for more than 20
years within 200 m of the cuttings pile.
This is also likely to be the area that re-
tains historical contamination and there-
fore might not represent a significant
change to the underlying conditions.JPT
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Fig. 3Predicted deposition pattern of the existing cuttings pile.
Sediment Thickness, mm
<0.001
0.0010.01
0.010.1
0.11.0
110
10100
1001000
>1000
DA164983.indd 105 12/16/13 8:37 AM
T
he great majority of wells do not
pollute. With that fact in mind,
the purpose of this paper is to explain
basic concepts of well construction and
illustrate differences between single-
barrier failure in multiple-barrier well
design and outright well-integrity
failure that could lead to pollution,
using published investigations and
reviews from data sets taken from wells
worldwide. Ultimately, it is clear that
there is absolutely no one-size-fits-all
well-failure frequency.
Introduction
For purposes of focus and brevity, this
work is limited to the failure poten-
tial of the constructed barriers remain-
ing in the producing well after drilling
(e.g., casing, cement, packers, tubing,
and wellheads) and of other downhole
equipment that remains part of the pro-
ducing well at the handover from drilling
to productionoperations.
Well-Design Overview:
Establishing Redundant Barriers
Barriers may be active, passive, or, in
some cases, reactive. Active barriers
such as valves can enable or prevent flow,
while passive barriers are fixed struc-
tures such as casing and cement. When
barriers are used in series (nested one
inside the other), a multiple-barrier sys-
tem is created, essentially a defense- in-
depth barrier system. Reactive barriers
are invisible or unobtrusive in normal op-
erations, but they deploy a containment
response when a pressure, flow-rate, or
other behavior limit is exceeded. In the
oil and gas industry, a reactive barrier
may be a human or mechanical response
to an activating or triggering event.
The difference between drilling and
production-well barriers is that most pro-
duction-well barriers are static (available
continuously over an extended period of
time, usually without requiring human
observation or action), whereas most
drilling and completion-activity barriers
are dynamic (control is variable with time
and activity). Production barriers require
less-continuous monitoring compared
with drilling and completion barriers that
are dependent on correct human activity.
Important Concepts
in Understanding
Well-Construction Failure
Barriers and Well Integrity. Oil- and
gas-producing wells are a nested collec-
tion of pipe, cement, seals, and valves
that form multiple barriers between pro-
duced well fluids and the outside environ-
ment. Barriers are containment elements
that can withstand a specific design load.
These may consist of pipe that is effec-
tively cemented, as well as seals, valves,
and pressure-rated housings.
Multiple barriers are nested individ-
ual barriers designed and built to with-
stand a specific load without help from
other barriers. If an inside (or outside)
barrier fails, the next barrier will provide
isolation so that a leak path will not form.
Well-integrity failure is an undesired
result where all barriers in a sequence fail
in such a way that a leak path is created.
Whether pollution occurs depends on
the direction of pressure differential. Be-
cause subsurface pressure in many wells
is actually lower inside the well than out-
side, the leak path is often into the well
and therefore environmental-pollution
potential is minor or absent.
Risk. The definition of risk used here
includes the recognition that, although
there is a degree of risk in every action,
the frequency of occurrence and the im-
pact of a detrimental outcome create a
risk or threat level that we can under-
stand and accept or reject on the basis
of what we believe, hopefully from an
assessment of facts. When solid occur-
rence numbers are not available, prob-
ability is used as a proxy.
Wells are designed and built as pres-
sure vessels using exact data on as many
variables of the formations and produc-
ing conditions as we know while con-
sidering how they will change as subter-
ranean forces are altered by producing
or injecting fluids into rocks that have
reached equilibrium in nature. One chal-
lenge to well design is that every inch
of a depositional formation is differ-
ent from the inch above and the inch
below, hence the need to design for the
unknown and the worst load. Well de-
sign is a geomechanical, fit-for-purpose
engineering effort and definitely not a
one-size-fits-allapproach.
All phases of the well design must
consider loads placed and forces exert-
ed on the well from the first cementing
operation through fracturing and to the
end of production. Well-failure causes in-
clude simple, one-variable induced fail-
ures and more-complex failure scenar-
ios. Whenever possible, a failure should
be traced back to a root cause. Although
examining surface failures is a practi-
Environmental Risk Arising
From Well-Construction Failure
of paper SPE 166142, Environmental Risk Arising From Well-Construction Failure:
Difference Between Barrier and Well Failure, and Estimates of Failure Frequency
Across Common Well Types, Locations, and Well Age, by George E. King, Apache,
and Daniel E. King, WG Consulting, prepared for the 2013 SPE Annual Technical
Conference and Exhibition, New Orleans, 30 September2 October. The paper
has been peer reviewed. Published: November 2013 SPE Production & Operations,
page323.
DA166142.indd 106 12/12/13 2:11 PM
cal approach (in which pollution can be
more quickly and unambiguously doc-
umented), determining the root cause
of subsurface failures, where the failed
equipment cannot always be retrieved, is
more difficult, and the direct or indirect
environmental damage, if it occurs at all,
may not be seen until months after the
incident. The most important element of
risk control is to prevent barrier failure
by predicting performance of barriers in
any operating condition.
To work with risk requires an as-
sessment of the impact and the probabil-
ity of an undesirable outcome. For this
reason, the actual expression of risk must
be made on the basis of a quantitative
risk assessment and may be compared to
other industries where significant risk is
an issue. The concept of as low as rea-
sonably practicable (ALARP) is widely
accepted in risk-based industries and by
the public (Fig. 1).
For a thorough discussion of other
well-construction-failure concepts, such
as barrier effectiveness and age vs. era of
construction, and the results of existing
well-failure studies, please see the com-
plete paper, which also contains a discus-
sion of cementing issues and sources of
naturally occurring gas and oil pollution.
Sustained Casing Pressure (SCP). One
of the first signs of a compromised bar-
rier is SCP, described as development of
a sustained pressure between the tub-
ing and casing or between a pair of cas-
ing strings that is not caused solely by
heating of the well when placed on pro-
duction. A sustained pressure may be
bled off quickly but returns over hours or
days after the annulus is shut in. Each of
the annular spaces is a separate pressure
vessel, and the casing strings are nest-
ed to give redundant barriers. Although
one barrier may develop a leak, second-
ary barriers will contain the pressure and
prevent a leak to the outside.
The presence of sustained pressure
in the annulus area indicates that there
may be a seepage-rate flow through at
least one tubing string or casing string or
through the cement; it also indicates that
the pipe and cement on the outside of the
annulus are containing the pressure (and
fluids) and that there may be no signifi-
cant leak to the environment outside of
the well.
Why Well-Integrity Failures
Produce Few Pollution
Incidents
As opposed to loss of control during drill-
ing in high-pressure reservoirs, such as
occurred on the Macondo well, actual
losses from completed and producing
wells are very low for several reasons.
Many drilling failures are the
result of unexpected high
pressure or other drilling-related
factors where the pressure
barriers are mostly dynamic
(mud-weight and blowout-
preventer control) and before
the full range of permanent
barriers is installed that exists in
a completed well. The expected
frequency of surface releases
in production wells (completed
wells) is between one and two
orders of magnitude lower during
production than during drilling.
Workovers during the life of the
producing wells do raise the
risk of a release, although the
frequency is still approximately
one order of magnitude lower
than it is during drilling
activities.
Completed wells are constructed
of multiple barriers that have
been tested and are monitored
where applicable.
Most importantly, the pressure
inside a completed producing
oil or gas well drops constantly
during primary production,
sharply decreasing the potential
from fluids inside the well to
flow to the outside of the well,
considering the outside fluid
gradients that increase outside
(leak-opposing) pressure with
increasing depth.
Groundwater Variation
Groundwater, brine zones, and produced
water from oil and gas operations in a spe-
cific area do not have a constant composi-
tion. According to groundwater experts,
overdrawing or overdrafting a ground-
water reservoir (withdrawing water fast-
er than it can be recharged) can produce
notable changes in the reservoir-water
composition, including pulling in contam-
inants from above and salt from below.
This variance makes single-point compar-
isons of water quality practically worth-
less. Many fresh groundwater reservoirs
are laterally or vertically connected to
more-saline water sources. Salinity within
a single reservoir often varies with depth.
Sudden changes in pressure within
a groundwater reservoir will also change
the amount of free methane gas by caus-
ing gas breakout into the free-gas phase.
The only way to assess changes in a
Fig. 1Schematic of the ALARP concept.
Unacceptable
Marginal
Acceptability
Target Level or Risk=0
Professional
Acceptance
Widely Accepted by Public
Very Low Impact and Low Occurrence
Low Impact and
Moderate Occurrence
High Impact and Low Occurrence
High Impact and Occurrence
Level of Risk
ALARP
As Low As Reasonably Practicable
DA166142.indd 107 12/12/13 2:11 PM
groundwater source is to establish a trend
range and include seasonal factors, with-
drawal rates, and other variables. Inves-
tigations of stray natural-gas incidents
in Pennsylvania, for instance, reveal that
incidents of stray-gas migration were not
caused by hydraulic fracturing of the Mar-
cellus shale. The possibility of some gas-
migration events being related to drilling
cannot be dismissed, how ever, because air
drilling, when practiced, may be a cause
for temporary upsets in shallow-well color
and odor, although the worst of these mi-
grations appear to be in areas with known
examples and a known history of shallow-
gas flows that predatedrilling.
Gas migration in the subsurface oc-
curs principally by advective transport
from areas of high pressure and is influ-
enced by temporal changes in baromet-
ric pressure, soil/bedrock porosity and
permeability, and precipitation that in-
fluences pore-water levels. Methane is
the most common gas in groundwater.
Shallow methane may be from sources
both thermogenic (maturation of deposi-
tional organics in the reservoir) and bio-
genic (biological breakdown of organ-
ic materials carried into the reservoir).
Free (nondissolved) methane gas exists
in many water reservoirs under the cap-
rock or in rock layers, and methane gas is
frequently desorbed from organic forma-
tions such as coal or shale as the pressure
is reduced by producing the water from
these formations.
Bubbles Around a Wellhead
The presence of bubbles in well cellars
or through soil around the wellhead may
or may not be an indicator of leaks from
the well. Any disturbance of soil by drill-
ing, digging, pile driving, or even walking
(e.g., through a swampy area) is frequent-
ly accompanied by release of methane
gas, particularly where natural methane
in the soil is more highly concentrated.
This type of seepage is usually short-lived
except in the presence of natural seeps
fed by deeper reservoirs along an estab-
lished seep path. Depending on the depth
of disturbance, the bubbles may decrease
or stop in seconds to days. Composition
of this gas may be biogenic or thermogen-
ic, because composition of natural-seep
gas indicates that this gas is commonly
from deeper reservoirs and is therefore
overwhelmingly thermogenic.JPT
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DA166142.indd 108 12/16/13 8:38 AM
S
licklines often play a vital role in
offshore plug-and-abandonment
(P&A) operations, either in those phases
of the operation that require slickline
conveyance or because logistical,
footprint, operational, economical,
environmental, or regulatory parameters
of a P&A necessitate full reliance on this
small, light, cost-effective conveyance
offering. P&A activities using digital
slickline increase equipment, logistic,
and marine-support efficiency.
Introduction
Slickline-conveyance services have long
been used in the exploration and produc-
tion industry, with much of the slickline
equipment, processes, and capabilities
remaining relatively unchanged. Me-
chanical services have remained slick-
lines mainstay. Evolutionary enhance-
ments resulting from developments in
metallurgical engineering are applied to
the line itself and the mechanical tools
deployed, along with improvements in
pressure-control and winch technology
used to deploy the tools and services
safely in live wells. Oilfield application of
battery-powered electronics in downhole
tools began in the late 1970s, eventually
including electronics-based devices such
as gauges, firing heads, bottomhole-fluid
samplers, and production-logging and
caliper tools, as well as hydraulic tools.
Slickline services were soon offered to
both remedial services (pipe cutting, tub-
ing punching, and perforating) and mea-
surement services (production, pipe, and
cement-bond-integrity logging). The de-
mand for slickline services has remained
steady over the years because of its many
inherent advantages: minimal footprint;
ease of logistics to, from, and on the well-
site; operational simplicity; and overall
cost-effectiveness.
The demand for hydrocarbons and
the resulting effect on oil prices led to
active developments in the subsea and
deepwater arenas in past years, resulting
in an increased complexity of well place-
ments and associated well completions.
This has led subsequently to new and
innovative well-intervention capabilities
being devised (and the associated equip-
ment being engineered, developed, and
deployed) as the need for intervention in
these well types has grown.
Cost management is also a key part
of P&A operations, along with safe ex-
ecution and quality outcomes. Enhance-
ments to existing (and development of
new) purpose-built vessels and equip-
ment, coupled with an intervention
workforce that is growing in relevant and
multiskilled capabilities, are in high de-
mand. Lightweight, low-footprint inter-
vention systems can lower cost signifi-
cantly if they can offer a broad range of
services and can be deployed on lower-
cost vessels.
Slickline services have most recently
seen a move toward on-command services
and job-recording capability through te-
lemetry enablement of the slick wire, com-
bined with purpose-built downhole tools
and a computer command-and- acquisition
system. With telemetry- enabled slickline,
its real-time data acquisition and con-
trol capabilities enhance and expand not
only the remedial and measurement ser-
vices on offer through slickline convey-
ance, but also the more-routine mechani-
cal services that make up the majority of
slicklineapplications.
These capabilities of digital slickline
are leveraged in the P&A arena, where
advanced levels of clarity, certainty, and
recordability are fully expected from all
services used. These factors are also par-
ticularly sought after in high-cost, highly
sensitive environments such as the Gulf
of Mexico and for the more-complex sit-
uations of subsea completions and deep-
water applications.
The digital-slickline trigger device
used for all explosives-related servic-
es such as device activation (e.g., plugs
and cement bailers), pipe cutting and
punching, and perforating has been de-
signed with a number of intrinsic safety
features that were not previously avail-
able with slickline conveyance. The trig-
ger is designed to ensure that triggering
of the explosives cannot occur without
a positive command from the surface-
acquisition system. The correlation and
eventual firing is managed with a single
descent in the well. In addition, clear
and concise shot detection is available
on surface. This is visualized and re-
corded in real time from multiple sen-
sors in the basic control cartridge as well
as from additional sensors that may be
included, depending on the tool-string
configurationdeployed.
Case Examples
The following examples discussed in
this paper are from two single-well
subsea P&A operations and a subsea-
intervention operation recently carried
out for two different customers in the
Gulf of Mexico. In the P&A examples,
Digital-Slickline Capability on
Plug-and-Abandonment Conveyance Phases
The complete paper is available for purchase at OnePetro: www.onepetro.org.
of paper OTC 23916, Impact of Digital-Slickline Capability on Slickline-Conveyance
Phases of Plug-and-Abandonment Operations, by Stuart Murchie and Matthew
Billingham, Schlumberger, and Douglas Guillot and Chuck Esponge, Production
Wireline, prepared for the 2013 Offshore Technology Conference, Houston, 69 May.
The paper has not been peer reviewed.

Copyright 2013 Offshore Technology Conference. Reproduced by permission.
DA23916.indd 109 12/12/13 2:13 PM
where natural depletion and water en-
croachment had killed the well, there
were no additional zones above to bring
on line. Hence, it was concluded that
the economic life of the well was spent,
and as such the well was to be perma-
nently abandoned. The overall well P&A
process was typical: downhole sequence
of cement-plug placement in the tub-
ing and across the perforations; place-
ment of bridge plugs and associated ce-
ment plugs in the tubing, casing, and
associated annuli at the required depth
points within the well; subsea-tree re-
moval and the cutting and recovery of
some completion components; casing
cutting and removal at the prescribed
depth below the mudline; and final site-
clearance survey and completion cer-
tificate. The riserless intervention
operations featured here required coor-
dination of multiple service companies,
each involved in a number of phases of
the operation, working off a dynamical-
ly positioned multipurpose vessel with
remotely-operated- vehicle capabilities
for equipment placement and removal
of the subsea components. In addition
to the setting of the bridge plugs, there
was also the need to punch the tubing
or casing to enable the circulation nec-
essary for the cement placement. Gauge
cutter drift runs were also performed at
various steps in the P&A sequence. High
precision for the plug setting and perfo-
ration depths was needed to place the
cement barriers successfully. However,
limited deck space, coupled with the
desire to minimize the time taken and
logistics needed for equipment change
out for certain service providers, led
the customer to choose digital slickline
above standard slickline, using this ser-
vice to complete slickline and equivalent
electric-line tasks.
Fig. 1Surface-readout-screen capture of the log-vs.-time record for the bridge plug.
Fig. 2Surface-readout-screen capture of the log-vs.-time record of the lower-crown-plug pulling.
Bridge-Plug vs. Time
Shock
Plug Set
Force
Slips Starting to Set
Line Tension
Digital Slickline (DSL)
Tension
DSL Shock DSL Force
2012-05-27
04:36:10
2012-05-27
04:36:20
2012-05-27
04:36:30
2012-05-27
04:36:40
2012-05-27
04:36:50
2012-05-27
04:37:00
2012-05-27
04:37:10
2012-05-27
04:37:20
2012-05-27
04:37:30
2012-05-27
04:37:40
350
300
250
200
150
100
50
60000
40000
20000
0
l
b
f
l
b
m
Time, days
Pulling Lower-Crown-Plug vs. Time
Shock
Force
Hanging Weight
Hanging Weight
Pressure Increase
DSL Shock DSL Force DSL DHTE DSL Pressure
2012-11-19
14:56:00
2012-11-19
14:58:00
2012-11-19
15:00:00
2012-11-19
15:02:00
2012-11-19
15:04:00
2012-11-19
15:08:00
2012-11-19
15:06:00
1000
800
600
400
200
0
200
10000
5000
0
l
b
f
l
b
m
2800
2600
2400
2200
2000
1000
p
s
i
a
Time, days
DA23916.indd 110 12/12/13 2:13 PM
The first operation was performed in 315 ft of water with
a riser. Magna range bridge-plug placement and cement-dump
bailing was carried out, with several runs performed to place
the desired cement column. A number of gauge-ring drift runs
were carried out, primarily for tubing-access confirmation while
simultaneously capturing the bottomhole-temperature infor-
mation needed for the design of the ensuing cement plugs. In
addi tion, the requisite number of tubing-punching and -cutting
operations were conducted. When initial plans to use the riser
had to be changed for operational reasons, the client was able to
quickly switch to a digital-slickline-deployed riserless operation
for the final tubing-puncher and tubing-cutter runs.
The plot in Fig. 1 is a screen capture of the information
seen on surface in the slickline unit in real time during one of
the bridge-plug-setting operations. As the plug-setting device
is triggered, the resulting tool-string shock and the change in
the line tension displayed clearly indicate that the device has
beenset.
For all digital-slickline runs, the accurate depth correlation
required was provided during the same descent in the hole from
the depth-correlation cartridge in the tool string. The depth
tie-in requirements were related to the completion architec-
ture rather than to the formation. Hence, only the casing- collar-
locator measurement was used for thispurpose.
The second operation was performed in 550 ft of water,
this time using a riserless intervention system for pressure
control. In this operation, regular slickline was used to pull
the crown plugs, and digital slickline was used for the major-
ity of the P&A operations. Again, bottomhole-temperature and
- pressure information was captured during gauge-ring drift
runs to assist in the cement-slurry design. Obtaining this infor-
mation was a critical requirement for the overall P&A operation.
Capturing these data during the slickline operation eliminated
the need to swap out seal-flow tubes in the riserless interven-
tion system for the electric-line cable, saving much time and op-
erational effort. This was performed using the digital-slickline
tool run in memory mode on standard slickline. Digital slickline
was used to carry out a number of tubing-puncher runs, as well
as to trigger a 10-ft, 6-shots/ft hole puncher used to penetrate
both the tubing and the 9-in. casing.
In a separate recent subsea-intervention operation, also
in the Gulf of Mexico, digital slickline was used throughout the
operation, including the removal and replacement of the upper
and lower crown plugs in the subsea tree. Here, the water depth
was almost 4,000 ft.
The plot in Fig. 2 captures the pulling of the lower crown
plug. For this operation, a spring-set power jar was used to man-
age the jarring in a slow and controlled manner, and was set to
activate at 600 lbf. As can be seen, the initial line weight drops
as the tool tags the crown plug. The subsequent pickup line ten-
sion indicates that the pulling tool was engaged successfully, and
jarring was started. After six jar attempts, as seen by the increase
in line tension coupled with the shock measurement, the pres-
sure steps up slightly, indicating that the seal on the crown plug is
broken as the well pressure equalizes. With one final jar, the plug
comes free, as confirmed by the corresponding increase in hang-
ing weight of the tool string. JPT
The Endowed Leone Family Chair in
Energy and Mineral Engineering
The Department of Energy and Mineral Engineering (EME; http://www.eme.psu.
edu) in the College of Earth and Mineral Sciences (EMS) at The Pennsylvania State
University invites applications for a faculty position at the full professor level. The
candidate will also hold the John and Willie Leone Family Chair in Energy and
Mineral Engineering. EME is home to Penn States undergraduate degree programs
in Energy Business and Finance, Energy Engineering, Energy and Sustainability
Policy, Environmental Systems Engineering, Mining Engineering, and Petroleum and
Natural Gas Engineering. At the graduate level, the department offers MS and PhD
degrees in Energy and Mineral Engineering with options in energy management and
policy, environmental health and safety engineering, fuel science, mining and mineral
process engineering, and petroleum and natural gas engineering. With the support
of the Leone Endowment, the EME department is strengthening its combination of
engineering/physical science and business education and research in a variety of
energy elds.
The successful applicant for the Leone Chair is expected to further scholarly
excellence through contributions to instruction, research, and public service that
fosters a combined business and engineering education. The candidate will be
expected to teach undergraduate and graduate level courses, supervise graduate
students at the MS and PhD levels, and pursue a world-class research program in
his/her area of specialization and the integration of business and engineering.
The successful candidate should be an accomplished international scholar with a
sustained record of professional achievement; possess an outstanding research and
publication record, teaching, and/or industrial leadership record; have demonstrated
ability and willingness to establish and lead externally funded research programs;
and have an earned PhD in either an energy-related engineering/physical science
or business discipline or the combination thereof. The candidate should be either an
engineer/physical scientist with extensive business experience or a business expert
with in-depth knowledge of energy, technology, and engineering; have superior
communication, collegial, and interpersonal skills; possess leadership ability in
building interdisciplinary teams for collaborative research; demonstrate an ability
to motivate and inspire faculty and students in the integration of engineering and
business; be an individual who thinks broadly about energy and minerals and the
associated environmental, health and safety, and management challenges; and
exemplify the ideals promoted by the Leone Family gift. Potential candidates with
high-level engineering/physical science and business experience in an energy-
intensive industry are encouraged to apply. Penn State has added at least 25 new
faculty in energy in the last three years (http://www.psiee.psu.edu, and http://www.
psiee.psu.edu/publications/EnergyReport.pdf). EME has hired seven new faculty
under this initiative. The successful candidate for this position will be expected
to collaborate with other energy-related faculty in the EME Department, the EMS
College, and across the University.
Applications should include: (1) a curriculum vitae with educational background,
employment history, and publications; (2) a statement concerning research and
teaching interests as well as the integration of business and engineering education;
(3) names and addresses of at least three referees; and (4) samples of refereed
publications. Send applications at the earliest via regular mail or electronically to:
Chair of the Leone Chair Search Committee, Department of Energy and Mineral
Engineering, 117 Hosler Building, University Park, PA 16802, USA; Fax: (814) 863
5709; E-mail: http://apptrkr.com/409390. Review of applications will begin in
early January 2011 and continue until the position is lled.
Employment will require successful completion of background check(s) in accordance
with University policies.
Penn State is committed to afrmative action, equal opportunity and the diversity of
its workforce.
DA23916.indd 111 12/12/13 2:12 PM
SPE NEWS
SPE Donates to Disaster Relief
SPE donated USD 5,000 to the Philippines Red Cross to support relief efforts for the
victims of typhoon Haiyan, one of the most powerful storms on record. The storm hit
the central Philippine islands on 8 November 2013, leaving a wide swath of destruction.
Thousands were killed and millions displaced.
SPE has an active Philippines Section, which was established in 1981, and two stu-
dent chapters, at Batangas State University and Palawan State University. The Palawan
State University in particular is very active, with a large number of students traveling
recently to Jakarta to participate in the Asia Pacific Oil & Gas Conference and Exhibi-
tion PetroBowl competition.
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Jeff Spath, 2014 SPE president, recently met with Karen Agustiawan, president,
director, and chief executive officer of PT Pertamina, during the SPE/IATMI
2013 Asia Pacific Oil & Gas Conference and Exhibition (APOGCE), held in
October in Jakarta, Indonesia. The conference was a collaboration between
SPE and the Society of Indonesian Petroleum Engineers (IATMI). Pertamina is
Indonesias state-owned oil and gas company, and has been a strong supporter
of SPE and IATMI, as well as the APOGCE in Jakarta since its inaugural event
in1999.
SPENewsJan.indd 112 12/17/13 2:33 PM
PEOPLE
Athabasca Oil Corporations board of direc-
tors appointed ROB BROEN, SPE, to the
recently created position of chief operating
officer (COO). As COO, Broen now leads all
the companys operations, including operat-
ing asset areas (light oil and thermal oil) and
all technical functions. Broen joined Atha-
basca in November 2012 as senior vice president light oil with
responsibility for the Light Oil Division; Drilling and Comple-
tions Services; and Health, Safety, and Environment. He has
more than 20 years industry experience. Before joining Atha-
basca, he managed a capital budget of over USD 1 billion and a
120,000-BOEPD North American shale gas portfolio (Montney,
Duvernay, Marcellus, and Eagle Ford) for Talisman Energy.
Broen began his 18-year career with Talisman as an oper-
ations engineer in Chauvin, Alberta, Canada. At Talisman, he
held increasingly more senior roles, including president, Talis-
man Energy USA, based in Pittsburgh, Pennsylvania; and senior
vice president, North American shale, based in Calgary. He was
an officer and member of the board of directors of Talisman
Energy USA. Before joining Talisman, Broen was a production
and completion engineer with Wascana Energy, stationed in
Swift Current, Saskatchewan, Canada. He earned a BS degree
in chemical engineering from the University of Alberta, and is
a graduate of the Ivey Executive Program at the Richard Ivey
School of Business, University of Western Ontario.
STEPHEN I. CHAZEN, SPE, Occidental
Petroleum Corporations president and chief
executive officer (CEO), was elected chair-
man of the American Petroleum Institutes
board of directors. This elected 1-year posi-
tion was effective 1 January 2014. He has
more than 40 years industry experience.
Chazen joined Occidental Petroleum in 1994 as executive vice
presidentcorporate development. Since then, he has held
numerous positions within the company. He was named COO in
1999 and elected president and chief financial officer in 2007.
Three years later, he was named president and COO and elected
Member Deaths
John D. Albright, Tulsa, Oklahoma, USA
W.A. Downie, Banchory, Scotland
Van B. Goff, Spring, Texas, USA
William W. Liddell Jr., Baton Rouge, Louisiana, USA
Dana G. McCarty, Bellevue, Washington, USA
Douglas Paul Taylor, Corpus Christi, Texas, USA
Roy K. Valla, Odessa, Texas, USA
Don G. Whitten, Houston, Texas, USA
In Memoriam
MICHAEL J. ECONOMIDES, SPE, died
1December 2013. He was 64. At the time of
his death he worked in several capacities,
including professor at the Cullen College of
Engineering, University of Houston; world-
wide petroleum consultant; and editor-in-
chief of two energy-related publications.
Economides was born 6 September 1949 in Cyprus. A
Greek national, he became a US citizen in 1982. At age 19,
he came to the US as a Fulbright scholar, earning BS and MS
degrees in chemical engineering at the University of Kansas.
From 1980 to 1984, he and his wife, Christine Ehlig-
Economides, SPE, designed curricula for and established a
petroleum engineering program at the University of Alaska.
In 1984, he received a PhD in petroleum engineering from
StanfordUniversity.
From 1984 to 1989, Economides worked at Dowell Schlum-
berger, then for 3 years as director of the Institute of Drilling
and Production and petroleum engineering professor at Leoben
Mining University in Leoben, Austria.
In 1993, Economides was principal founder of the Global
Petroleum Research Institute at Texas A&M University, serving
as its director and chief scientist for 5 years, while also a petro-
leum engineering professor at A&M. He joined the University of
Houston in 1998.
Economides consulted on petroleum projects in more than
70 countries and taught more than 300 advanced petroleum-
related short courses worldwide. He authored or coauthored
close to 300 technical papers and several book chapters and
encyclopedia entries. He edited or wrote around a dozen tech-
nical books on topics such as hydraulic fracturing and natural
gas engineering. His best-known popular book, The Color of
Oil: The History, the Money and the Politics of the Worlds Big-
gest Business, co-written with R.E. Oligney, was published in
2000 and became a bestseller. Economides also coauthored
several other general books centering on geopolitics and the
petroleumindustry.
He served SPE as session chairperson at numerous confer-
ences and forums worldwide and member of several technical
and editorial review committees. He was chosen as a Distin-
guished Lecturer for 199192.
Economides became an SPE Distinguished Member (1994)
and received the SPEI Production and Operations Award (1997).
The Russian Academy of Natural Sciences awarded him the
Kapitsa Medal of Honor and the Albert Einstein Medal of Honor
(2004). He received two honorary doctorates.
Economides is survived by his wife Christine and his sons
John and Alexander.
PeopleJan.indd 113 12/17/13 2:38 PM
PEOPLE
to the companys board of directors. He became president and
CEO the following year.
Chazen also serves on the boards of directors for Eco-
lab Incorporated, the Aquarium of the Pacific, and the Cata-
lina Island Conservancy. Before joining Occidental, he was a
managing director in the investment banking group of Merrill
Lynch & Co. Chazen earned a PhD in geology from Michigan
State University, a masters degree in finance from the Univer-
sity of Houston, and a bachelors degree in geology from Rut-
gers College.
Denbury Resources appointed JOHN P.
DIELWART, SPE, to its board of directors,
thereby increasing the number of Denbury
directors to 10. Dielwart has 35 years oil
and gas industry experience, which includes
being a founder, former CEO, and current
member of the board of directors of ARC
Resources, a Calgary-based, midsized, dividend-paying oil and
gas company. He oversaw the growth of ARC from a
USD-200-million startup in 1996 to an USD-8-billion company
at the time of his retirement in January 2013. Dielwart is cur-
rently vice chairman of ARC Financial Corp., a Canadian,
energy-focused private equity manager, a position he assumed
after his retirement.
Before joining ARC, he spent 12 years with a major oil and
natural gas engineering consulting firm, as senior vice presi-
dent and director. Dielwart began his career at a major oil and
natural gas company, where he spent 5 years. He served two
separate 3-year terms as a governor of the Canadian Association
of Petroleum Producers, including 18 months (2002 to 2004)
as its chairman. Dielwart earned a BS degree (with distinction)
in civil engineering from the University of Calgary. He is also a
member of the Association of Professional Engineers and Geo-
scientists of Alberta (APEGA).
Strategic Oil & Gas appointed DOUGLAS
WRIGHT, SPE, as vice president, engineer-
ing and corporate development. He has
been with Strategic since June 2013 as vice
president, business development. In his new
role, Wright is now responsible for engi-
neering, reserves, and developing corporate
strategy. Additionally, he oversees the planning and execution
of Strategics capital spending budget.
Wright has over 29 years experience in western Canadas
energy industry, with expertise focused on reserve evaluations
for both annual reporting and acquisition/disposition analy-
sis. He has worked for several major international companies,
including Texaco, Imperial Oil, ConocoPhillips, and Anadarko.
Most recently, he served in a senior management role at Per-
petual Energy. Wright graduated from the University of Calgary
with a BS degree in chemical engineering and from Athabasca
Universitys Centre for Innovative Management with an MBA.
He is also a member of the APEGA and Society of Petroleum
Evaluation Engineers.
2014 SPE International Conference on
Health, Safety, and Environment
1719 March
Long Beach Convention & Entertainment Center
Long Beach, California, USA
www.spe.org/events/hse/2014
Register Now!
PeopleJan.indd 114 12/17/13 2:38 PM
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Ph: (403) 265-9722 / Fax: (403) 265-8842
McDaniel & Associates
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Domestic & International Specialists in:
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To advertise in Professional Services contact ecarthey@spe.org or call +1.713.457.6828.
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AVASTHI
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ProCardsJan2014.indd 115 12/16/13 1:30 PM
PROFESSIONAL SERVICES
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