EOR TECHNOLOGIES AND APPLICATIONS IN · PDF fileEOR TECHNOLOGIES AND APPLICATIONS IN MALAYSIA...

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EOR TECHNOLOGIES AND APPLICATIONS IN MALAYSIA

Dr. Nasir Haji DarmanNorhayati Bt Hashim

The Petroleum Policy and Management (PPM) Project4th Workshop of the Indonesia – Kutai Basin Case Study

Jakarta, Indonesia13 – 17 June 2006

Presentation Outline

• Introduction

• Current Progress Updates and StatusDulang : Immiscible WAG

Baronia : Immiscible Gas Injection

West Lutong: Miscible Gas Injection

Tapis: Miscible Gas Injection

Tabu: Double Displacement

• Issues and Challenges

• Way Forward

• Summary and Conclusions

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Custodian of Malaysian Petroleum Resources

A distinctive resource owner and manager, maximizing value of

Malaysia’s hydrocarbon resources

Petroleum Management Unit(PMU)

Facilitates development & prod.

Facilitates development & prod.

Monitor all E&P companies

Monitor all E&P companies

Optimize MalaysianE&P Assets

Optimize MalaysianE&P Assets

Attract exploration investments

Attract exploration investments

To fulfill our role and responsibilities, we must undertake

and implement EOR initiatives

PMU Key Business Focus Areas

Reserves production

Operational excellence

Reserves addition

PMU objective to maximize the domestic long term value of reserves is done through 4 main levers

Sustain 3% annual increase in production to meet demand

100% replenishment ratio for crude and 70% for gas through exploration

Production enhancement and reliability improvement

Reserves recovery Additional 33% replenishment ratio through IOR/EOR

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EOR in Malaysia: Current Status

Our progress so far…• Gas flood – 2 fields at full field WAG implementation, 1 on pilot

• Chemical EOR – pilot for offshore AS flooding

• Total of 11 projects at various stages (from lab study to full field)

Some of our challenges…• PSC commitment – EOR project payback often after PSC expiry

• Mindset – people view EOR as expensive and difficult

• Gas vs. Oil – EOR will defer gas development (gas cap)

We started off with conducting a screening in 2000 & identified 1 Bstb (unrisked) EOR potential

Our target is to add 520 MMstb of reserves from EOR by 2010

Integrated CO2-EOR…• Why do it – Over 18 Tscf HC gas locked due to high CO2

– EOR competing for gas with sales gas/LNG– CO2 perform better than natural gas

• CO2 supply – close to 5 Tscf in Peninsular Malaysia– over 24 Tscf in Sabah/Sarawak

• EOR target – Project A: 9 fields (one area), 150 km from CO2 source– Project B: 2 fields (one area), 140 km from CO2 source

• EOR process – immiscible and miscible

• Status – Immiscible pilot started in June-06– Miscible pilot decision in final stages

Our next step…• Phase 2 – Revisit EOR screening to identify new opportunities

• Partnership – Strategic alliances with experience parties to make offshore EOR in Malaysia a reality

EOR in Malaysia: What’s Next?

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EOR in Malaysia: Our Roles to Make it Happen

Re-negotiating our PSC in return for EOR implementationPSC renewal with longer periodBetter terms

Tackling Triple PlusLeadership – Formal/Informal coaching, job attachmentsMindset – support from the top, show positive resultsInstitutional Capability – succession plan, EOR fraternity

Revised procedure and guidelinesEOR potential is assessed for every green field developmentIOR and EOR is integrated and not in silos

Technology Improvement and R&DSupported by UTP, local universitiesResearch Technology Division

As a custodian of Malaysian Petroleum Resources, we have to manage and maximize our hydrocarbon assets

We have to ensure 520 MMstb of reserves from EOR by 2010 a REALITY

Overview of Malaysian Oil and Gas Industry

Oil was discovered in Malaysia in Miri, Sarawak in 1910.

Initially producing some 83 barrels per day, the petroleum industry in Malaysia has now grown into a multi-billion dollar business with oil production over 600,000 barrels per day while gas is being produced at 5 billion cubic-feet per day.

To date a total of 2,664,023 million line km seismic had been acquired and 1,100 exploration wells (515 Appraisal and 585 Wildcat wells) had been drilled in Malaysia resulting in the discovery of a total of 134 oil fields and 178 gas fields.

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Overview of Malaysian Oil and Gas Production

• Malaysian oil reserves was in declining phase (from 1994 – 2002)

• Through a concerted effort, our reserves return to an upward trend from 2003

• Our target is to have a minimum of 1.33 replacement ratio

• At current rate of production, our reserves life is about 19 years

Malaysian Historical Crude Oil Trend

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erve

s, B

stb

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n, B

stb

Reserves Production

Malaysian Historical Natural Gas Trend

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Reserves Production

• Current reserves is in plateau stage

• Gas supply is critical to PGU and MLNG

• Our target is to have a minimum of 0.7 replacement ratio

• At current production rate, our reserves life is 33 years

EOR Potential

There is a substantial amount of oil reserves that can be achieved through IOR/EOR processes in the Malaysian oil fields.

Acknowledging the above, PETRONAS has initiated several initiatives to encourage the operators in Malaysia to look into EOR opportunities in their respective operating areas.

Total STOIIP 17.0 B stb

EUR 5.62 B stb

Remaining oil 11.38 B stb

Averaged RF 33%

Remaining oil

(67%)

EUR (33%)

Total STOIIP for Malaysian producing fields = 17 B stb

Source: ARPR 2005

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To identify EOR potential, PETRONAS has conducted EOR screening study in year 2000

Based on the screening study, in Malaysian context, three EOR processes may be considered:

Gas injection: miscible or immiscible in WAG or straight modeChemical methods (surfactant, foam, polymer and gel),Microbial methods.

MICROBIAL FLOODINGRecovery by this method utilizes the effect of microbial solutions on a reservoir. The reservoir is usually

conditioned by a water preflush, then a solution of microorganisms and nutrients is injected. As this solution is pushed through the reservoir by drive water, it forms gases and surfactants that help to mobilise the oil. The resulting oil and product solution is then pumped out through production well.

Preflushto

Condition Reservoir

Driving Fluid

(Water)Nutrients

Microor-ganisms

Microbial Products

for Releasing

Oil

Single 5-Spot Pattern Shown)

Produced Oil and Products

Injection Pump

Production Well

Injection Well

Microorganisms and Nutrients

Oil and Products





Preflushto

Condition Reservoir

Driving Fluid

(Water)Nutrients

Microor-ganisms

Microbial Products

for Releasing

Oil

Single 5-Spot Pattern Shown)

Produced Oil and Products

Injection Pump

Production Well

Injection Well

Microorganisms and Nutrients

Oil and Products

Produced Fluids (Oil, Gas and Water) Separation and Storage Facilities

Carbon DioxideWater

Injection Pump

Production well

Water

Injection well

Drive water

AdditionalOil

RecoveryGas Gas

Mis.zone

Oil Bank

MISCIBLE GAS FLOODINGThis method is a miscible displacement process applicable to many reservoirs.

A gas slug followed by alternate water and gas injections (WAG) Viscosity of oil reduced providing more efficient miscible displacement


Carbon DioxideWater

Injection Pump

Production well

Water

Injection well

Drive water

AdditionalOil

RecoveryGas Gas

Mis.zone

Oil Bank


Carbon DioxideWater

Injection Pump

Production well

Water

Injection well

Drive water

AdditionalOil

RecoveryGas Gas

Mis.zone

Oil Bank


Carbon DioxideWater

Injection Pump

Production well

Water

Injection well

Drive water

AdditionalOil

RecoveryGas Gas

Mis.zone

Oil Bank

GAS FLOODINGThis method is a miscible displacement process applicable to many reservoirs. A gas slug followed by alternate water and gas injections (WAG) is usually the most feasible method.

Viscosity of oil reduced providing more efficient miscible displacement

CHEMICAL RECOVERYRecovery methods in this category may include surfactant, polymer and alkaline flooding. After a

reservoir is conditioned by water preflush, specific chemicals are injected to reduce interfacial tension (help release oil) and /or improve mobility control (reduce channeling). This action is followed by injecting a driving fluid (water) to move the chemical and resulting oil bank to production wells.

Mobility ratio is improved and flow through more permeable channels is reduced, resulting in increased volumetric sweep Single 5-Spot Pattern Shown)

Injection Fluids

Oil

Injection Pump

Production Well

Injection Well

Preflush to

Condition Reservoir

Driving Fluid

(Water)

Fresh Water Buffer

to Protect

PolymerSolution

ForMobilityControl

Additional Oil

Recovery (Oil Bank)





Mobility ratio is improved and flow through more permeable channels is reduced, resulting in increased volumetric sweep Single 5-Spot Pattern Shown)

Injection Fluids

Oil

Injection Pump

Production Well

Injection Well

Preflush to

Condition Reservoir

Driving Fluid

(Water)

Fresh Water Buffer

to Protect

PolymerSolution

ForMobilityControl

Additional Oil

Recovery (Oil Bank)

Preflush to

Condition Reservoir

Driving Fluid

(Water)

Fresh Water Buffer

to Protect

PolymerSolution

ForMobilityControl

Additional Oil

Recovery (Oil Bank)

Systematic approach has been developed to identify EOR potential in Malaysia

Prediction Runs

PRIze Prediction

Runs

GO/NO GO

Screening

Sector Model Prediction

Runs

Reality Check

Screening

To identify suitable IOR processes for major producing oil fields in Malaysia

Prediction run with sensitivity analyses for 6 reservoirs

Three (3) criteria set by IOR Team

Prediction run to estimate incremental oil recovery through IOR process

Prediction run by sector model on the top six (6) reservoir

The study screened 31 reservoirs from 16 fields in the Peninsular Malaysia and 39 reservoirs from 19 fields in East Malaysia.

Considering some practical limitation (such as gas source and reservoir heterogeneity), 37 reservoirs were identified to be technically feasible for IOR/EOR processes.

Numerical simulation models (sector) were developed for the group which has the highest remaining oil-in-place and the highest recovery for the selected EOR process identified in the first-level screening.

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The amount of potential incremental recovery from these reservoirs is almost One (1) Billion barrels

0

50

100

150

200

MM

stb

Producing Reservoirs

* Includes Horizontal Wells, alkaline surfactant polymer flooding, surfactant polymer flooding.Source: PETRONAS 2000 EOR screening for Malaysia’s oil producing fields; CSS team analysis

Tapis Lower J

Guntong Upper I

St Joseph B/G

Tiong J – 20/21

Guntong Lower IDulang E-12/3(currently on pilot stage)

Dulang E-14 (currently on pilot stage)

The top 6 reservoirs have been identified as Group 1 candidates (high remaining and incremental oil)

CO2 miscibleWater FloodHC miscibleOthers*

Legend

Total potential = 955 MMstbNumber of reservoirs = 37Average size = 26MMstb

Group 1 : 570 MMSTB (60.4 %)

Other potential reservoirs: 374 MMSTB (39.6 %)

Sixty percent (60%) of the total EOR potential in Malaysia reside in six reservoirs.


• Introduction







• Way Forward


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Phases for EOR implementation: 4 stages with 3 decision gates review

STAGE 1

Screening study

Field and EOR process identification

Preliminary economic

assessment

STAGE 2

Detail study i.e. lab and simulation

Pilot design and

surveillance

Economic assessment

STAGE 3

Pilot implementation

New data acquisition & processing

Full field design & Economic

Assessment

STAGE 4

Full field implementation

Viability Approval Concept

ApprovalProject

Sanction

Alternative or Abandon

Gate 1 Gate 3Gate 2

Stage ActivitiesStage Activities

Decision GatesDecision Gates

Yes Yes Yes

No No No

Very low(Expense)

Cost ExposureCost Exposure Low(Expense)

Med / High(Expense/capitalise)

High(Capitalise)

Operation, maintenance

and surveillance

Currently we have 11 actively on-going EOR projects in Malaysia

FIELD PROCESSBaram WAG Injection

Guntong Miscible WAG Injection

St. Joseph Immiscible WAG Injection

FIELD PROCESS

Dulang Immiscible WAG Injection

Tabu Double Displacement

Baronia Immiscible WAG Injection

West Lutong Miscible Gas Injection

FIELD PROCESSTapis Miscible WAG Injection

Bokor Aquifer assisted WAG

CEOR Chemical Injection

Tiong/Kepong Immiscible Gas Injection

Stage 1

Stage 2

Stage 3/4

(Pilot or full field implementation)

(Detailed study)

(Preliminary / screening level)

At different level of maturity. Will discuss the progress of top 5 candidates

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Kerteh KALIMANTAN

THAILAND

SINGAPORE

Kerteh

KUALA LUMPUR

SABAH

SARAWAK

BRUNEI

Kerteh KALIMANTAN

THAILAND

SINGAPORE

Kerteh

KUALA LUMPUR

SABAH

SARAWAK

BRUNEI

Location of the 5 fields

Dulang:• 130 km offshore Kerteh• Operator is PCSB

Tapis:• 197 km offshore Kerteh• Operator is EMEPMI

Tabu:• 229 km offshore Kerteh• Operator is EMEPMI

Baronia:• 40 km offshore Lutong• Operator is PCSB

West Lutong:• 12 km offshore Lutong• Operator is PCSB

Three at offshore Peninsular and two at offshore Sarawak


• Introduction

• Current Progress Updates and StatusDulang : Immiscible WAGBaronia : Immiscible Gas Injection





• Way Forward


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Dulang field: Background Information

N

Block S3

* B16* B5

*A10

* A14* A2

* A31

* A29

-1200

-1250

SCHEMATIC WELL LOCATION

S3 Block

* B16* B5

*A10

* A14* A2

* A31

* A29

-1200

-1250


S3 Block

* B16* B5

*A10

* A14* A2

* A31

* A29

* B16* B5

*A10

* A14* A2

* A31

* A29

-1200

-1250


S3 Block

Pilot Area …• One of Malaysia’s major producing

oilfield (OIIP =1119 MMstb and EUR = 328 MMstb)

• East-West trending anticline structure dissected by numerous normal faults

• Water depth of 76m and area ~11 km x 3.5 km

• Pilot involves 3 producers and 3 injectors

Water injection started in 1996 due to falling pressures

Re-injection of produced gas identified as cost effective EOR option

Injected gas stream is having more than 50% CO2

Pilot WAG at S3 block started in Nov-02 targeting E12/13/14 reservoirs

Dulang Field: Immiscible WAG pilot strategy

Implementation Strategy

* B16* B5

*A10

* A14* A2

* A31

* A29

-1200

-1250


WAG Inj.WAG Inj.

WAG Inj.WAG Inj.

Gas Inj.Gas Inj.

Components of pilot in S3 block:

1. WAG in non-water invaded area (E12/13/14)Injector: A10Producers: B5 and B16

2. Gas injection (E12/13)Injector: A14 recomplete in E12/13Producer: A2

3. WAG in water invaded area (E12/13/14)Injector: A29Producer: A2

Main pilot – W AG & attic oil recovery Main pilot – W AG & attic oil recovery Main pilot – W AG & attic oil recovery

WAG injection (4 MMscf /d gas and 3500 b/d water ) for cycles of 3 months each.

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• Contributing WAG mechanisms drainage of ‘attic oil’ up-dip of the existing producersmore efficient sweep of water flooded regionsflooding of tighter reservoir intervalspartial vaporization of the un-swept oil

Dulang Field: Immiscible WAG pilot performance

10 BOPD 100 – 300 BOPD

WCUT 95% 70%

Pressure maintained

Well A2L

350 BOPD 600 BOPD

GOR 2000scf 1000scf

1350 psia 1467 psia

Well B5L

105 BOPD 300 BOPD

GOR 4500scf 2200scf

WCUT 80% 70%

Well B16

• Pilot performance

Dulang Field: Plan for full field implementation in 2007

Based on pilot performance, results were scale-up to represent full field implementation. P50 of 18.5 MMstb of incremental reserves is expected.

Acquisition of gas compressor and integration with FFR study is currently on-going

Dulang Decline (2005/6 WP&B)

Infill Wells (2004 WP&B)

P85 = 12 MMstb

P50 = 18.5 MMstb

P15 = 23 MMstb

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• Introduction


Baronia : Immiscible Gas InjectionWest Lutong: Miscible Gas Injection




• Way Forward


• 3rd largest producing reservoir in the Baronia field.

• Production started since 1972.

• Initially under-saturated reservoir

• Oil is 42o API and 0.3 cP

Baronia Field: Background Information

• Due to limited aquifer support, peripheral water injection commenced with 4 horizontal injectors in 1994.

• The structure is simple, internally unfaulted, low relief domal anticline. The reservoirs are highly continuous as demonstrated by good geological marker correlation.

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Pilot Objective and PlanTest immiscible gas injection processShowcase for a large-scale immiscible gas injection in the BDO fieldsLocation: Well BN-29 targeting RV2.1 reservoir

Baronia Field: Immiscible gas pilot strategy

• Gas will be injected from BN-29 at 5 mmscf/d

• Continue water injection from BN-58, horizontal injector

• Pilot was designed to provide “least disturbance test” to the current oil production

Model predicted that immiscible gas injection of 5 MMscf/d with continued waterinjection from next well could yield 2.7 MMstb incremental recovery.

Baronia Field: Plan for pilot project in 2006

Pilot FDP has been approved by PETRONAS and flowlines modification is currently underway to convert BN-29 well to become gas injector

Baronia RV2 immiscible gas injection pilot will be interpreted together with West Lutong miscible pilot (described later) to come out with regional EOR

implementation strategy at Baram Delta

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%Cumulative Injection Since Start of Gas Injection as %HCPV

Incr

emen

tal R

ecov

ery

as %

STO

IIP

Miscible

Near Miscible

Immiscible

(W Lutong)

(Baronia)

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

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20%

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%Cumulative Injection Since Start of Gas Injection as %HCPV

Incr

emen

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ecov

ery

as %

STO

IIP

Miscible

Near Miscible

Immiscible

(W Lutong)

(Baronia)

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• Introduction



West Lutong: Miscible Gas InjectionTapis: Miscible Gas Injection



• Way Forward


• One of the oldest producing field in Malaysia

• KL and MN reservoirs contribute > 70% of the total production

• 1/3 of the MN commingled modeled as a single unit. STOIIP = 110 MMstb

• Pilot to test miscible gas injection in Baram Delta fields

• MMP at or near current reservoir pressure. Strong aquifer.

West Lutong Field: Background Information

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West Lutong Field: Miscible gas pilot strategy

Capture Producer

M

N

1,100 ft

100 ft

Pilot Injector (New)

Logging, Observation Well (Fiberglass Casing, Slimhole)

Perforations

*Note: Well distances are notional

Capture Producer

M

N

1,100 ft1,100 ft

100 ft

Pilot Injector (New)

Logging, Observation Well (Fiberglass Casing, Slimhole)

Perforations

*Note: Well distances are notional

PILOT PLAN

1 injector and 1 observation (100 feet apart)

Barge mounted CO2 generator supplying 2 MMscf/d high purity CO2

3 months at 1500 psiinjection pressure

1st injection anticipated early 2007

Determine remaining oil saturation

Areal sweep efficiency

Injectivity and need for WAG injection

Vertical sweep efficiency

Minimum miscibility pressure

PILOT OBJECTIVE

“The West Lutong pilot, if implemented, will become the first miscible

pilot in Malaysia. If successful, the miscible process can give

an incremental of up to 165 MMstb for the BDO fields.”

West Lutong Field: Plan for pilot project in 2007

0 50 100 150 200

Incremental oil (mmstb)

Miscible

Immiscible

West LutongBaramBaroniaBettyBakauBokorTukauSiwa

91MMstb

165MMstb

Both pilots at Baronia and West Lutong are planned to confirm 256 mmstb incremental oil at Baram Delta region (miscible and immiscible processes)

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• Introduction




Tapis: Miscible Gas InjectionTabu: Double Displacement


• Way Forward


TAPIS EAST-FAULT BLOCK STRUCTURE MAP

OWC : -2050 mGOC : -1550 mPre-Production

EFB

F-02

F-06F-04

CI = 50m

• Water depth 64 meters

• Discovered in 1969

• Five platforms

• 90 development wells

• Current focus is on the east fault block of lower J reservoirs

Tapis Field: Background Information

Small gascap is present in the fault block

Lower J unit have contributed some 40% of the total Tapis production.

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Tapis Field: Miscible gas study work flow

Tapis EOR study workflow

Lower J Unit was selected due to…Potential recovery of bypassed and residual oil from mature waterfloodLarge remaining oil remaining in placeExisting water & gas injection facilities, existing well patternsNew geologic model and a history matched simulation model available

Tapis Field: Miscible gas study

“The immiscible floods yielded an incremental recovery between 4-7%

whereas miscible floods gave a higher recovery between 10-13%.”

Miscible

Separator gas

LPG enrichment

Immiscible

CO2

Process evaluated

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• Introduction







• Way Forward


• Oval-shaped east-west trending anticline

• Area = 26 km2

• Water depth = 64 meters

• Two major north-south trending normal faults

• Discovered in 1978

• Developed in 1986

Tabu Field: Background Information

Study focused on West Fault Block (WFB) in the Upper I reservoirs

Double displacement process (DDP) is currently being tested

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Tabu Field: The double displacement process

• Potential recovery of by-passed oil downdip of high GOR wells by converting alternate wells along periphery of oil rim to water injectors

• The up-dip injector forces the gas cap towards southwest, countering the aquifer influx and increasing future oil from nearby wells.

• Cost of flowlines, well restoration and surveillance is relatively minimal

• Prediction runs showed that DDP for the Tabu WFB Upper I reservoirs alone will give an estimated incremental of 1.8 MMstb

• Field works are currently on-going


• Introduction







• Way Forward


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Operating EOR in offshore environment is technically challenging

Only about 9% of world wide EOR application is in offshore environment. On the other hand, all of our producing fields are offshore.

Some of the most common problem associated with offshore operation

Large well spacing

Limited space at the surface

0

25

50

75

100

Wor

ld-w

ide

EOR

ap

plic

atio

ns (%

)

Offshore Onshore

World-wide EOR experiences

Source=OGJ 2002

0

500

1000

1500

2000

2500

Min Average MaxW

ell s

paci

ng fo

r G

roup

1 E

OR

cand

idat

es (f

eet)

Range of successul chemical EOR (330 - 466)

Well spacing for Group 1 reservoirs

Average well spacing for successful gas EOR project

Well spacing for Group 1 reservoirs is suitable for gas injection EOR but not chemical

On average, 68% of the 157 existing platforms installed in Malaysia are more than 20 years old

Gas injection pipeline, especially with CO2 handling capability, does not exist. Major infrastructure development is needed (major investment).

Some of the fields are not reaching the MMP even if 100% purity CO2 is injected. Major repressurization project for the reservoir is needed before MMP is reached.

• 68% or 157 platforms had been in-placed more than 20 years.

0

10

20

30

40

50

60

70

5 10 15 20 25 30 35Age of platform

No.

of p

latfo

rm

33% < 20 years 68% >20 years

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Operating EOR in offshore environment is commercially challenging

For gas flooding (such as CO2 injection), the average total cost per barrel is around US$ 12 – 20, which, compared to average unit technical cost in Malaysia, is relatively high.

Source=SPE 24142

World wide EOR cost database

Cost of Incremental Oil (US$/bbl)Process

Injectant Only

3 – 54 – 6

5 – 10

10 – 20~ 7

2 – 71 – 5

Total Process

ThermalSteamPurchased Fuel

5 – 77 - 10

12 - 20

20 – 30~ 19

10 – 17~ 2 - 7

CO2

Surfactant (Micellar)AlkalineSurfactant/Alkaline/PolymerPolymer

Gas

Chemical

Timing is critical to realise the EOR potential

A clear and transparent work process must be in place to ensure that all of the requirements for the project assessment are met.

• Long timing leads to unfavorable economics especially to the Contractors. Cut the time required to reach full field application, without cutting any corners …

EOR Candidate

Reservoir Management strategies based on historical information together with experimental and simulation studies

Pilot projects

Pilot Monitoring

Optimization programs

Pilot EvaluationLarge field scaleWAG applications

Surveillance of projects

3 3 –– 5 5 yearsyears

(e.g. Jay/Little Escambia)

Field expansions without a complete interpretation

of pilot projects(e.g. Prudhoe Bay)

Successfulprojects

2 2 –– 3 3 yearsyears

3

1

2

Source: SPE 50645, 1998

Industry standard

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Current mindset and behaviour prohibits EOR potential

EOR is always associated with uneconomic projects and very difficult to implement, even without study being done.

“The most important reservoir is the reservoir between our ears”Dr. John Doran, CEO – ROC Oil Company Ltd

Most people in the industry have a disaster mentality about EOR

EOR Failure Disaster


• Introduction

• EOR Motivations and Focus







• Way Forward


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Way Forward

Solution 1Solution 1Management support

- clear directions- conducive environment for EOR- Strategic and forward thinking

Solution 2Solution 2 Learning from pilot & other projects worldwide- balancing risk and benefit- Take some calculated risks- effective networking and collaboration effort

Solution 3Solution 3 Starting early- EOR need to be considered even during FDP

submission for green fields

Solution 4Solution 4Synergy in high CO2 gas field development

- long term abundant supply- facilities sharing by integration

Solution 5Solution 5Win-win situation with PS Contractor

- attractive PSC terms- work commitments- Focus on REWARD and not COST


• Introduction

• EOR Motivations and Focus







• Way Forward


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Summary and Conclusions

There is a substantial amount of oil reserves that can be achieved through EOR process in the Malaysian oil fields.

Acknowledging the above, PETRONAS has initiated several initiatives to encourage the operators in Malaysia to look into EOR opportunities in their respective operating areas.

Previously, there were little detailed studies have been conducted to firm up these potentials and monetised them into a full-scale EOR projects.

Among the main challenges are the operating environment (offshore), maturing assets which require facilities upgrading, limited detailed assessments, and lack of capability were identified.

In order to meet these challenges, all parties will need to have the right mindset and behaviour towards realising EOR as a real project to increase value in the business.

Thank You For Your Attention

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