Production Geology Approach as a tool to accelerate the implementation of advanced drilling technologies: Intelligent Well Evaluation Methodology

IADC World Drilling conference, Madrid, June, 2002

Ana Maria Hernandez

Production Geology Approach

Knowledge Management
Knowledge Gaps: Time & Money

Geology
Advanced Drilling & Completion Technologies

Production

Intelligent Well Evaluation Methodology

Technological Background Initial screening criteria: production geology scenarios Intelligent Well Systems: Geological Constraints Down hole Sensors Isolated Control flow Zones Surface Systems Intelligent well technologies and new trends in Economics Production Geology Approach: Case Study Multilateral technology

Why Intelligent Wells? Measurement - Control - Monitoring Applications:

To monitor gas \ water coning problems in oil rims

To measure, control and monitor injection & production fluids in complex reservoirs Reservoir drainage improvement Remote control and monitoring in hostile environments

Telemetry
>>>>>

Surface Systems

Well

Down hole Sensors

Isolate Control Zones

To avoid well interventions

Where to apply Intelligent well technology? Initial screening criteria: reservoir candidates

Oil rims in heterogeneous reservoirs IOR projects in complex reservoirs Improvement of drainage strategies in reservoirs with technology maturity Offshore projects with economic potential Areas under environmental regulations

Intelligent Well technology vs. Reservoir types Critical zones: partially connected sands in the middle part of the reservoir

Type 1:Structural/faulted reservoirs with high lateral & vertical heterogeneity

Type 2: Heterogeneous reservoir associated with salt domes

ME-C ME-J1U/L ME-J1U ME-JIU ME-L ME-M1 ME-M2 ME-S1 ME-C

ME-S1 ME-S2,3 ME-T4,5<

Type 3: Stratigraphic traps with internal compartmentalization

Type 4: Bypassed oil zones in stratigraphic reservoirs

Reservoir scale Oil rims and complex IOR in mature heterogeneous reservoirs
Critical Zone: partially connected sands in the middle part of the reservoir
Change in petrophysical properties Bypassed Oil Irregular GOC & WOC

Gas Coning

Km

GOC

Critical zone

WOC m
Water coning Water / Gas Coning Change in reservoir architecture

More control and monitoring is needed to avoid production problems

Data Gap vs. Technology

Resistivity sensors:
Range 0-10 m Permanent monitoring

Borehole seismic:

Range ~ 2-100 m High resolution Geometry limitation

4C/4D seismic:
3D geometry Reservoir coverage Limited resolution

Borehole seismic systems

Source: The leading edge (april, may 1999)

More borehole seismic configurations are needed to improve well to well visualization

The dimensional Problem

Km-m

0-10 m

Illustration by BP

+/- 2-200 m

How to determine the impact of geological variables at inter-well scale? Decision support tool for technology assessment
Variable 1

Project Economics Flow Cash, NPV

Valves Chokes Control Zones Sensors

Identification of variables that produce economical impact

Variable 2

Variable n

Search of the probability distribution to model each variable

Determination of variables with high impact

Sensitivity analysis of each variable

NPV
-200.00 0.00 200.00 400.00 600.00

Run the Simulation

Analysis of results

STOIIP

1141.17

1895.83

Wells to drill

45

16

Plateau rate

5.6

14.0

Discount factor

11.57

8.52

Facility size

100.00

150.00

Recovery

40.5

43.5

Well cost

11.23

9.55

Well rate

6.16

13.84

Geological variables at inter- well scale

Reservoir architecture vs. well architecture
Sensitivity Chart Target Forecast: Reservoir variability
Reservoir continuity (km-m) Vertical connectivity (m) Kv/kh ratio Flow units (m)
.44

.50 .49 .75

-1

-0.5

0.5

Measured by Rank Correlation

Flow unit is the geological variable with more impact related with Intelligent well technology

Reservoir flow units dimensions

Reservoir Candidates +200

150

100

50

25

15

5m

North Sea

Gulf of Mexico
Indonesia West Africa Venezuela
The design of isolated control zones should take into account the dimensions of the reservoir flow units to optimize production and avoid production problems

Isolated control zones at perforation scale

Scale prone

Optimal Completion window

200-20 m

Sand production prone Horizontal well

Drainage points

Production flow units: Rock types + rock wetability + rock strength

Bigger completion windows: high lateral and vertical heterogeneity but more homogeneous rock types (quartz arenites)

Isolated control zones: best geological options in reservoirs with bigger completion windows

A.- Horizontal well

Isolated control zones 200-20 m B.- Multi branch well

Isolated control zones +/- 200 m

C.- High angle wells perforated following the completion windows Example El Furrial Field - Venezuela
PRODUCTION BEHAVIOR HIGH ANGLE vs. CONVENTIONAL WELLS

3000

FUL-63

FUL-68 FUL-59

FUL-70 FUL-61

FUL-75 FUL-65

1/2"
2500

FUL-56

3/4" 1"

WELL HEAD PRESSURE (PSI)

2000

1 1/4" 1 1/2"

1500

High Angle Wells production

1000

500

Typical wells
0 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 OIL RATE (BOPD)

SPE 56430

Proposed Isolated control zones

Isolated control zones: North Sea Case

Sensitive Sand Production intervals

Scale prone

Sensitive Scale intervals

Completion window
20-5 m

Sand production prone

Horizontal well
Red intervals will produce sand/scale
since the beginning if they are perforated If yellow intervals are perforated any change in the flow regime will activate the production problems

Reservoirs with high lateral & vertical heterogeneity and high internal heterogeneity (rock type: litarenites)

Proposed Isolated control zones: North Sea Case

A.- Low/high angle wells
Completion window

Isolated control zones + 200 m B.- Optimal completion windows in small-channel zones: perforation optimization

Horizontal well

How to determine the impact of geological variables at perforation scale? Injector Monte Carlo Simulation
Decision variables
Injector Injection points Valves/chokes Zonal flow sensors Producer Drainage point Valves/chokes producer Permanent resistivity sensors

Producer
Surprise handling

Water Breakout

Injection points

Assumptions
Interwell data Distance between wells Completed interval Perforation rock types rock wettability rock strenght pore pressure barriers layers Surprise handling Water Breakout

Drainage points

Variability

Sensitivity Chart Target Forecast: Surprise handling

Uncertainty

rock strength rock types rock wet ability layers internal barriers

.54 .52 .49 .05 .01

Forecast

-1

-0.5 0 0.5 Measured by Rank Correlation

Proposed Rock type Analysis

Rock type vs. Rock Strength

Rock type window

Oriented rock type perforation

Rock type window ? Rock Type Bottom Hole Pressure

Rock Strength

Reservoir Pressure

Intelligent well projects: screening criteria

IW project Brainstorming

Identify Technical Issues related with IW

Identify Economical Issues related with IW

Identify IW Potential Scenarios

Initial Options Screening Prospective IW economic scenarios Discounted Cash Flow Analysis

IW Case history selection

IW Reservoir Modeling

Identify Critical Decision Issues

New trends in petroleum economics

IW production Optimization Solutions

Intelligent wells goal is to capture everyday events in the reservoir. Can we analyze them using conventional petroleum economics?

Forecasting & risk analysis

(1)

Life cycle cost analysis(2)

Production

CASH FLOW [MM $]

4 2 0 1 -2 -4 -6 2 3 4 5

Cash flow analysis

TIME [MONTHS] 6

Initial Investment

Workover Costs
MULTILATERAL WELL

CONVENTIONAL WELL

Economic threshold: Decision Tree (3)

NPV | BASE CASE

<

NPV |MLT

(1) SPE 37932,63528; (2)SPE 35315;(3)63201

Advanced decision- making technical/economical tools to justify new technology

Multi-prospects Evaluation
(2)

Dynamic Dynamic Complexity (1) Complexity

Technical / Economical ranking matrix

Reservoir

Scenario 3 Scenario 2 Scenario 1

Technology A Technology B Technology C

40 35 30 25 20 15 10 var. 1 var. 2 var. 3

scena. 1

scena. 2

(1) SPE 52954;(2) SPE 69614; (3)SPE 68579

scena. 3

Multi-objective Decision Analysis

High Risk

5 0

(3)

Variables that impact economically the reservoir

How to accelerate the implementation of advance drilling technologies? Knowledge management. Example MTL Technology; PDVSA, Venezuela

Activity Level
3 Technical Forum

Year 2000

Drilling/completion Maturity

Domestic development Technical ActionsProposals Operational know-how

Geomechanics Case Studies Potential proposals

Multidisciplinary Team Potential Compilation of Information

Information Analysis Business Plan Coalescence Reservoir Review Technology Maturity Opportunity identification

Technology Dispersion Knowledge

Individual Effort

Mutual Help

Unification of Efforts

Results

Production Geology Approach

Production Geology THE FRAME
Combination of: Structural Styles Reservoir Types Rock types Flow Units .... a techno-economic challenge

Technology- a solution
The key: Right Technology in the right frame using the optimal oil recovery process Acceleration of technology implementation

Reduction of cost/ increase of value

Multidisciplinary approach: identification of best practices Uncertainties reduction, production optimisation

Evolution of the Multilateral Technology in Venezuela; PDVSA, Venezuela

Multi laterals 2000 + Multi laterals 1995-1998
1998 MTL technology Abandoned
MTL Failure MTL success

1999 MTL Corporative Effort

MT L Failure MT L suc c ess

20 Wells

5 Wells