SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

EOR as a Driver for CCS Projects in Mexico

Fernando Rodríguez de la Garza

Victor Arana Ortiz

CCS in Mexico: Policy Strategy Options for CCS. March 7-8, 2012

Outline

Introduction

Status of EOR in PEMEX

Incremental Oil by CO2 EOR: Expectations from first round

Final Thoughts

Outline

Introduction

Status of EOR in PEMEX

Incremental Oil by CO2 EOR: Expectations from first round

Final Thoughts

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

Production stages of an oil field

4

The production of an oil field

usually involves three main

stages: Primary, Secondary

and Enhanced Oil Recovery

(EOR).

25%

15% 10%

Primary Recovery

Secondary Recovery

EOR

Remaining Volume

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

Enhanced Oil Recovery Methods

5

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

EOR Oil production costs

are higher than primary or

secondary production

Oil produced by PEMEX

mostly comes from primary

production and some from

secondary recovery

methods

Source: IEA World Energy Outlook 2008, Oil & Gas Journal

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Pro

du

ctio

n C

ost

(U

SD

/ b

bl)

Volume (MMMBPCE)

Oil

Produced

Middle

East and

North

Conventi

onal oil

(others)

EO

R C

O2

All deep water

EO

R o

ther

s Art

ic

Heavy Oil

and

Bitumen

Oil

shale

Gas to

oil

Coal to

Oil

Resources available worldwide

6

EOR Oil Production Costs

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

Basics of CO2 EOR

7

PARAMETER UNIT AMOUNT

Depth ft <9,800 and >

2,000

Temperature °F <250, but not

critical

Pressure psia >1,200 to 1,500

Permeability mD > 1 to 5

Oil gravity °API >27 to 30

Viscosity cp <10 to 12

Residual oil

saturation >0.25 to 0.30

Source: NETL, march 2010.

CO2 has two main characteristics

when used as EOR fluid:

• It is miscible, or partially miscible,

with the oil

• Less expensive than other

miscible gases

Screening criteria for CO2 candidates

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

CO2 EOR: Benefits and Challenges

8

Solubility of CO2 in the oil

produces oil viscosity reduction

and swelling.

Interfacial tension reduction

between oil and CO2.

Lower miscibility pressure

requirement for CO2, compared to

other gases.

CO2 has water-like injectivity

Standard injection facilities.

× Large volumes of water and CO2

produced.

× In heavy oil the Minimum Miscibility

Pressure (MMP) is difficult to reach.

× Higher levels of corrosion.

× Gravity Segregation in the reservoir.

× Viscous fingering in the reservoir.

× Application in the Mexican naturally

fractured reservoirs.

Major benefits: Technical Challenges:

Source: GEOGREEN, 2010.

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

Recovery Factors : Fields from Canada and USA

9

Field Oil Gravity

(°API)

Oil

Viscosity

(cP)

Amount

Injected

(%HCPV)

RF, Incremental

Recovery Factor

(% OOIP)

Total Factor

(Mcf/STB)

Net Factor

(Mcf/STB) Start

Dollarhide 40 0.4 30 14 2.4 1985

East Vacuum 38 1.0 30 8 11.1 6.3 1985

Ford Gerldine 40 1.4 30 17 9 5 1981

Means 29 6.0 55 7.1 15.2 11 1983

North Cross 44 0.4 40 22 18 7.8 1972

Northeast Purdy 35 1.5 30 7.5 6.5 4.6 1982

Rangely 32 1.6 30 7.5 9.2 5 1986

SACROC (17

pattern) 41 0.4 30 7.5 9.7 6.5 1972

SACROC (4

pattern) 41 0.4 30 9.8 9.5 3.2 1981

South Welch 34 2.3 25 7.6 -- -- --

Twofreds 36 1.4 40 15.6 15.6 8 1974

Wertz 35 1.3 60 13 13 10 1986

Source: Brock, W.R. and Bryan, L.A., «Summary Results of CO2 EOR Tests, 1972-1987» Tulsa, OK, April 22-25.

Outline

Introduction

Status of EOR in PEMEX

Incremental Oil by CO2 EOR: Expectations from first round

Final Thoughts

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

EOR Experience in PEMEX - E&P T

her

mal

Met

ho

ds

Imm

isci

ble

gas

dri

ve

Ch

emic

al

Met

ho

ds

Steam / Hot

Water

Electrical

Heating

In Situ

Combustion

Hydrocarbon

Gas

Carbon Dioxide

Nitrogen

Polymer /

surfactant

Microbial

PEMEX EOR experience

is mostly limited to lab

and simulation studies:

yet conducted CO2 pilots

in Chicontepec fields and

steam injection in

Samaria Terciario field

More than 350 EOR

projects implemented

worldwide: 2.2% share of

the world oil production

Very limited worldwide

experience on EOR in

Naturally Fractured

Reservoirs. 92% of

PEMEX oil production

comes from NFR

Development/

Production Pilot Test

Research and

Development

* Nitrogen injection processes applied as secondary recovery, not enhanced.

Source: OGJ 2008, Websites of the companies mentioned

1

1

The EOR strategy of PEMEX is focused on the 19

biggest fields

EOR implementation on

the 19 biggest fields of

Mexico will have a

potential impact on 60%

of the total OOIP of all

fields

These 19 fields involve

onshore and offshore

fields as well as non

fractured clastic and

fractured carbonate

reservoirs

Source: Producción y Reservas por campo – Pemex 2008

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000

240,000

0 50 100 150 200 250 300 350

90% impacted

volume– 73

biggest fields

80% impacted

volume– 41

biggest fields

60% impacted

volume– 19

biggest fields

OOIP

MM barrels

Number of Fields

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

13

Cantarell

Jujo-Tecominoacan

Ku-Maloob-Zaap

Poza Rica

Cacalilao

AJB Complex

Abkatun-Pol-Chuc

ATG North (6) Miquetla, Coyol,

Humuapa, Remolino, Corralillo y Soledad

Ebano

Akal KL, Chac

Maloob

Chuc

Cardenas

Poza Rica

Cunduacan

Samaria

Terciario

Coyotes

19 P

rio

rity

Fie

lds

Foamed Surfactant injection in the

invaded zone by gas in Akal KL

Solution surfactant in the invaded zone by

water in Chac

CO2 injection in Coyotes

CO2 injection in Maloob

Foamed Surfactant injection in the

Antonio J. Bermudez Complex

Hydrocarbon gas in Chuc

Ain injection in Cardenas

Surfactant injection in Poza Rica

Air injection in Soledad

CO2 injection in Ogarrio

Panuco

Field Field Test

(Analogous) Pilot

Will start with 11 pilot

tests covering most

of the EOR

technologies

Results from pilots

will extend to other

analogous reservoirs

The air injection in

NFR pilot is strategic

since 50% of

Mexico´s oil reserves

come from NFR

reservoirs. Soledad

Steam injection in Samaria Terciario

A

B

I

C

D

E

F

J

K

H

G

ATG South (4) Agua Fria, Tajin;

Coapechaca, P. Alemán Agua fria

EOR Strategy in PEMEX E&P

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

CO2 EOR: Road Map

2015 2014 2013 2012 2011 2010

Pilot Test in the Coyotes

Fields

Pilot Test in the Field Poza Rica.

Pilot Test in the Field Maloob.

Pilot Test in the Field Altamira.

Design in the Field Ayatsil-Tekel-Kayab

Design in the Field Ogarrio

EOR Strategy in PEP

CO2 Supply Status (Geological)

CO2

Supply Strategy Geologic study Secondary

Recovery Strategy of PEP

IMP Study. Analysis of CO2 available in Petrochemical

Cosaleaque (Ammonia Production)

Pilot Plant Operation of 2.5 MW for CO2

capture1 Pilot Plant Operation of 250 MW for CO2

capture2

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

Location of CO2 Pilot Tests

15

Maloob

Ogarrio

Coyotes

Poza Rica

Altamira

Carmito

Petrochemical

Quebrache

CFE Tuxpan

CO2

Anthropogenic

Sources of CO2

Natural Sources of

CO2

Atasta: N2 Plant

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

Location of main sources of CO2

16

Q

C

H V

M T

R

T

Madero, Tamps.,

Refinery

MMPCSD: 120

Miguel Hidalgo

Refinery

MMPCSD: 159

C

C

AHMSA

MMPCSD: 762

A

Las Truchas

MMPCSD: 132

R

Cadereyta, NL,

Refinery

MMPCSD: 107

R

Carmito

MMPCSD: 50

Quebrache

MMPCSD: 260

CEMEX Puebla

MMPCSD: 101

Guanajuato

Refinery

MMPCSD: 251

CEMEX Hidalgo

MMPCSD:

CFE Tuxpan,

Veracruz

MMPCSD: 390

Mittal Steel

MMPCSD: 263

Burgos

MMPCSD: ~100

A

Cangrejera

Complex

MMPCSD:790

M

CFE Tula, Hidalgo

MMPCSD: 623

CFE, Valle de

Mexico

MMPCSD: 126

CFE, San Luis

Potosí

MMPCSD: 114

S

B

Refineries

CEMEX

Reservoir

Steel

CFE

Outline

Introduction

Status of EOR in PEMEX

Incremental Oil by CO2 EOR: Expectations from first round

Final Thoughts

35,163 Cantarell

Abkatun Pol Chuc

10,782

Maloob

9,770

5,950

Antonio J. Bermudez

3,782

Ogarrio 1,006

Ebano Chapacao

3,649

San Andres 1,422

ATG* 13,594

3,216

Panuco

Cacalilao

11 out of the 19 priority fields are candidates

for CO2 EOR

Soruce: Production and Reserves by field- Pemex 2008

OOIP

Million barrels

CO2 EOR could be first

implemented in fields that

add up to 22 MMMB of

OOIP (first round)

Would represent 9% of the

OOIP in all fields and 16%

of the OOIP in the fields

considered in the EOR

strategic program

Remaining Volume

Np

CO2

* Fields: Coyotes, Soledad and Humapa

Potential Incremental Oil from first round CO2 Floods

Assuming an incremental

oil recovery ranging from 3

to 8 %, oil attributable to

CO2 flooding will range

from 600 to 1700 MMB for

fields considered in the first

round fields.

INCREMENTAL OIL POTENTIAL BY ENHANCED RECOVERY

Million barrels

476

1,088

1,758

80114

Ogarrio

30

Maloob

179

San Andres

11

Total ATG

408

628

FR 8% FR 3%

* Coyotes, Soledad and Humapa

19

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

Volume of CO2 Required

20 (1) 20 years of Time horizont analyzed

(2) SEMARNAT. CO2 source emision 2007 (3) Utility factor of 10,000 CF/B of oil

Considering a Utilization Factor of 10,000 SCF/Bl of incremental oil, a trivial analysis gives the CO2 requirements

Fields considered: Maloob, ATG Fields, Ogarrio and San Andres.

CO2 Volume by source2

MMPCD

888

964

944

927

610

2777

350

628 MMB =>

0.314 TSCF/year

1,758 MMB =>

0.88 TSCF/year

Production3 Cement Total PEP CFE Petrochemical Refinery

1272

Steel Res.1

High requirement (FR 8%)

Lower requirement (FR 3%)

8,732 = 3.2 TCF/year

* Fields: Coyotes, Soledad and Humapa

Outline

Introduction

Status of EOR in PEMEX

Opportunity to increase oil recovery

Final Thoughts

Final Thoughts

CO2 EOR is playing, and will play, an important role in the

exploitation of oil reservoirs, and therefore, it could contribute in the

near future with the development of CCS Projets.

After successful CO2 pilot testing, CO2 EOR could be an effective

driver for strategic-large scale CCS projects.

CO2 recycling has to be considered when deploying CO2 EOR field-

scale projects

Reduction in CO2 capture costs will impact possitively the EOR

projects of PEMEX.

22

SUBDIRECCIÓN TÉCNICA DE EXPLOTACIÓN

EOR as a Driver for CCS Projects

in Mexico.

CCS in Mexico: Policy Strategy Options for CCS. March 7-8, 2012