REPORT ON Brainstorming Session for …Brainstorming Session for Development, Management and...

REPORT ON

Brainstorming Session for

Development, Management and Monitoring of

Oil and Gas Fields

22nd

July to 24th

July, 2009

Dev G Note: 1052

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Oil India Limited Development Geological Note No. 1052

A Report on the Brainstorming Session on Development, Management and

Monitoring of Oil and Gas Fields held at Shillong during July 2009

I. INTRODUCTION

1.1 History of the oil and gas industry is replete with examples where it was believed that

hydrocarbon resources were dwindling and later it was proved that actually people had been

running out of ideas to locate them. This also includes some major discoveries of oil and gas.

Oil India has also not lagged behind in the share of major breakthroughs. Dedicated efforts by

generations of Oil Indians have helped OIL to complete fifty years of a remarkable journey in

the search of hydrocarbons. During this period, the company has established itself as the second

largest Oil and Gas Company in India in terms of total proved plus probable oil and gas

reserves and production. However the current industry scenario with its competitive

environment and challenges demands even more from the dedicated band of Oil Indians to

retain its position and strive ahead. It was in this backdrop that Chairman and Managing

Director Sri N.M.Borah mooted the idea of a brainstorming session for the younger generation

of geoscientists who have a bigger stake in this company in terms of years of service, to come

out with ideas that would aid OIL on its continuous path of growth, arresting any slippage down

the list of Industry Majors and to retain OIL`s position as a front ranking upstream company in

years to come. Chairman and Managing Director also suggested that the session should be

organized away from the workplace to ensure that the thinking process was not disturbed by

day to day routine activities of office as well as home.

1.2 The first brainstorming session on the exploration domain was organized from 15th to

18th March, 2009 at Kaziranga, Assam, where a total of 18 participants of varying ages, mostly

below 40 years, comprising of members from Geology, Geophysics and R&D disciplines, were

brought together on a common platform to brainstorm on emerging trends and ideas for future

exploration and development activities. The discussion that followed for the next three days

was guided by BP coaches to keep the session aligned with the objective as well as to provide

equal opportunity to all the participants. Over twenty five ideas were deliberated upon and the

outcome of the discussion, which had been systematically captured during the process, was later

presented to the E&D Top Team and the Executive Council in the presence of CMD and the

Board of Directors at Duliajan where the priority ideas as well as the road map to achievement

were described. Following the success of the first session, the second brainstorming session on

the Development, Management and Monitoring of Oil and Gas Fields was held in Shillong

from 22nd

July to 24th

July, 2009. The domain on which the deliberations took place was on the

Development, Management and Monitoring of Oil and Gas Fields and was conducted in a

format similar to the first session under the active guidance of the BP coaches. There were 18

participants in the second session and were drawn from disciplines like Geology, Reservoir,

Geophysics, Chemical, Production Oil and Gas, R&D, Well Logging, Drilling and Technical

Services. The list of participants is enclosed in Annexure I.

1.3 The inaugural and concluding sessions of the brainstorming sitting was graced by the

presence of Shri B.N.Talukdar, Director (E&D) accompanied by Sri. K.K.Nath, General

Manager (GS). With his thought provoking words and a detailed picture of the current Indian

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upstream hydrocarbon scenario, Director (E&D) set the tone for the intense sessions that

followed. Director (E&D) also highlighted the future energy demand in India, challenges ahead

of E&P companies with special reference to Oil India Limited and asked the participants to

contribute in OIL’s way forward by actively participating in the session and coming up with

new ideas.

.

1.4 The brainstorming session concluded on 24th

evening and culminated in a presentation

on the ideas generated during the three days of brainstorming session to Director (E&D). The

concluding session was also attended by Sri. A.K.Mahanta, General Manager (CC & PR) and

Sri. B.K.Borah, General Manager (Pipeline Services).

1.5 This document is a compilation of all the ideas and views of the group of participating

executives emerging out of the discussions that took place in the three-day brainstorming

session. The draft is structured to include the methodology used, ideas generated, comments

and conclusions thereafter drawn. Furthermore, the ideas generated in Shillong may also go

through further modifications over time. It may be mentioned here that action at various levels

may already have been initiated at different levels of the Company. However the discussions of

these ideas reinforce the belief and confidence that the participants have on that particular idea.

II. METHODOLOGY

2.1 The venue of the brainstorming session was Hotel Polo Towers in Shillong, Meghalaya.

Following the inaugural presentation by Director(E&D) where he discussed the current status of

the company in the context of the larger scenario of the upstream sector of the country, the

brainstorming session was conducted by Sri. P.K.Devchoudhry, Chief Coordinator BP, and his

team consisting of Sri. Bipul Das and Smt. Deepshika Deka. The methodology followed by BP

coaches for generation of creative ideas was named 3D Creative Process which could be

described as follows.

3 D Creative Process: The 3Ds in the process of creative thinking are Discovery, Dream and

Design.

2.2 During the discovery phase, the participants were asked to discover the strengths and

qualities of OIL as well as themselves individually. Each participant noted down his/her

strengths and qualities and that of OIL and shared the same with other participants. Based on

this exercise, a list of strengths and qualities for the company were prepared which were agreed

by all participants.

2.3 During the Dream phase, participants were asked to dream about the desired future,

given the strengths and qualities the company has. That is when they realized that it is possible

to achieve the desire goal.

2.4 In this state of mind, participants were taken to the Design phase by the BP coaches to

facilitate the group to generate creative ideas in the field of Development. The ideas in the field

of Exploration were subdivided in to two categories, Subsurface Assessment and Subsurface

Problems.

2.5 The participants were divided in to the domains of Sub-surface Assessment and Sub-

surface Problems. Each group came up with ideas and gave a presentation to the larger group.

During presentation and the discussion that followed, more ideas were generated and the

existing ideas were challenged and discussed within the group and refined wherever necessary.

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2.6 Thereafter, BP coaches advised each group to develop the action plan for implementing

each idea keeping in mind the following guiding questions

What results are expected?

What actions are to be taken for implementation of the ideas?

What are the milestones?

Who is to initiate?

2.7 Once the groups had prepared the action plan for implementation, they gave

presentations to the larger group, and finally on the concluding day, a presentation was given to

Director (E&D) and senior officials of the Company on the outcomes of brainstorming session.

III. IDEAS ON SUBSURFACE ASSESSMENT DOMAIN

3.1 The ideas formulated during the brainstorming session on the sub-surface assessment

domain were as follows:

1. Firm Field Development Plan

2. Detail Testing of Exploratory Wells as per International Practice

3. Upgrading In-house Formation Evaluation Capabilities

4. Delineation of Structures

5. 4D Seismic for Reservoir Monitoring

6. Full Wave Form Seismic Analysis

7. In-House Technology for High Angle (J-Bend), horizontal & Slim-hole Drilling

8. Mud Policy as per Field Requirement

9. Inclusion of Modern Drilling Rigs

10. Solid Control Equipment

11. Mud Logging unit

12. Drill in Paper

Idea No. 1 : Firm Field Development Plan

The participants were of the opinion that a systematic development plan should be followed

only after proper appraisal/delineation has been conducted for newly discovered structures.

Systematic data acquisition should also be part of the plan. Furthermore, empowered asset

teams which would include Geophysicists, Development Geologists, Operation Geologists,

Reservoir Engineers, Production Engineers, Geochemists should manage field development

plans in specific group of fields within OIL’s operational area. This would promote a shared

understanding of the fields and a shared roadmap for the field. Systematic data collection

should be conducted on a routine basis in all the fields with constant monitoring of pressure

production behavior.

Expected Results:

Maximization of recovery

Accretion of reserve

Better understanding of future drilling plan

Actions:

Formation of Asset Management Team (AMT) including Geo-science,

Drilling, Chemical, Production, Field Engineering etc.

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Formulation of a full scale development plan by AMT at the very beginning

stage including Geo-mechanical study, Conventional coring, PVT analysis,

periodic BHP measurements, Pressure Transient Analysis (PTA) on routine

basis for development of sub-surface model. Recording of CMR/NMR logs

for refining sub-surface model.

Hook-up surface network with sub-surface model to form integrated Asset

Model

Develop reservoir management plan viz. artificial lift, water injection

/IOR/EOR

Implementation of continuous down-hole monitoring systems after assets are

being put on production

When to Start: To initiate with immediate effect

Who has to Initiate: RCE

Milestones:

Formation of Asset Management Team

Strategic plan to develop the field

Implementation of the development plan for the Asset

Idea No. 2 : Detailed Testing of Exploratory Wells as per International Practice

The participants opined that detailed testing of all prospective sands of each exploratory well as

per international practice should be initiated with immediate effect. This will lead to better

understanding of the reservoir for future development and also in the planned accretion of

reserve. A feasibility study may need to be carried out to see the benefit of using workover rigs

for carrying out the detailed testing vis-à-vis drilling rigs.

Expected Results:

Good understanding of the reservoir for future development

Accretion of reserve

Actions:

Testing of all prospective sands.

Feasibility of using dedicated work-over rigs vis-à-vis drilling rigs for testing

purpose.

Drilling of S-bend well from same plinth to compensate production loss as

an interim strategy.

Extended well testing of the prospective zones: Extended well tests (EWTs)

are used to evaluate productivity and characteristics of a reservoir and can

complement seismic fault information.


Who has to Initiate: Head Operations (G&R)

Idea No. 3 :Upgrading in-House Formation Evaluation Capabilities

The wire line logs traditionally have been the undisputed, best means available of quantifying

and analyzing the in-situ formation. Wireline logging devices have been developed and refined,

capable of precisely measuring an extremely wide range of petrophysical and geological

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properties. Over the years advances have been made in a variety of logging technologies,

enhancements have taken place in log data acquisition which include higher data sampling and

transmission rates and expanded computer capabilities to process log data and to control

logging operations. New accurate, cost-effective methods for addressing a variety of formation

evaluation challenges have been developed.

The in house capabilities of well logging have been limited to the basic wire line logging and

well completion jobs. The up gradation of in house logging capabilities including technology

procurement and competency build up will not only serve the company better, but also develop

the capability of well logging department to act as service providers to other companies as a

business development venture. The competency build up will also help in better supervision and

quality control of the logs recorded and interpreted by the service providers.

Creation of a multidisciplinary Formation Evaluation group will help in the assimilation of the

data acquisition and data interpretation groups which in turn will facilitate better reservoir

management.

Expected Results:

Improved formation evaluation

Reservoir delineation/ modelling

Reduced dependency on service providers for well logging jobs

In-house knowledge enhancement

Service providers for the other E&P companies

Actions:

Procurement of advanced specialized tools

Competency build-up to take up specialized logging jobs


Who has to Initiate: GM (GS)

Milestone:

Procurement of advanced specialized tools

Manpower Resource Readiness

Actual Data Acquisition

Idea No. 4 : Delineation of Structures

Another view of the participants was that the delineation of discoveries should be conducted by

aggressive drilling of extension/ out-step wells and suggested tentative share of drilling efforts

on Exploration should be 30%, on Delineation being 30% and on Development including

IOR/EOR wells being 40%. Also redefining the structures based on well evidence must be

initiated with immediate effect for conversion of 2P/3P reserve to 1P.

Expected Results:

Conversion of reserves : 3P 2P 1P

Actions:

Refine structure based on well evidence

Sharing of drilling efforts on Exploration wells: 30%, Delineation wells:

30%, Development wells : 30% and water injection or IOR/EOR wells: 10%

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Refine structure based on well evidence



Idea No. 5 : 4D Seismic for Reservoir Monitoring

In contrast to 3D seismic, which is an exploration and development tool, 4D seismic is quickly

becoming a vital reservoir management tool. Time-lapse seismic images may identify bypassed

oil to be targeted for infill drilling, and add major reserves to production to extend a field’s

economic life. 4D seismic may be used to monitor the progress of injected fluid fronts (water,

gas etc.) that can help in optimizing injection programs. 4D seismic can map reservoir

compartmentalization and the fluid-flow properties of faults (sealing versus leaking).

Expected Results:

Monitoring fluid front movement

Identification of remnant hydrocarbons

IOR/ EOR planning

Revitalization of producing and declining fields

Actions:

Developing capabilities for in-house processing and analysis of the

time-lapse data.


Who has to Initiate: GM (GS) (for Acquiring, Processing and Interpreting Data)

GM(G& R) (for Planning & Development)

Milestones:

Acquisition of base and reference surveys

Processing of time lapse data

Identification of fluid movement and remnant hydrocarbon

Proposal for drilling

Idea No. 6 :Full Wave Form Seismic Analysis

Conventional seismic inversion techniques involve transforming the Post-Stack seismic data

into P-impedance, from which we were able to make some predictions about lithology and

porosity. However, predictions based on this technique are limited, since P-impedance is

sensitive to lithology, fluid and porosity effects, and it is difficult to separate the influence of

each effect. To perform stable and more accurate interpretation of inversion results, full elastic

inversion is required to be performed.

Full wave inversion technique, unlike conventional inversion, not only uses multi-component

information (.i.e. P-wave & S-wave) but also the pre-stack gathers to estimate more accurately

the P-impedance, S -impedance and density which no other inversion technique can yield. Full

wave inversion can yield information about lithology, fluid and porosity.

As OIL has developed in-house capability of acquiring full waveform data (.i.e.

multicomponent) it is essential to develop in a phased manner in-house capability for

processing, interpretation and analysis of full waveform data through training and work-

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association with experts. The first phase should cater for development of knowledge base for

conventional post-stack seismic inversion. The second phase of the project will develop

capability for Simultaneous Angle Dependent Inversion and third phase will be to implement

full fledged working capability of full waveform inversion.

Expected Results:

Utilization of multi-attributes with confidence

Identification of reservoir fluid and lithology

By-passed oil identification

Actions:

Developing in-house knowledge base and capabilities for full-waveform seismic

data processing and multi-attribute analysis

In-house resource setup for full-waveform processing


Who has to Initiate: GM (GS)

Milestones: Acquisition of full waveform data

Processing of data using in-house capability, developed by training and work

association.

Prospect identification and technique validation

Idea No. 7 : In-House Technology for High Angle (J-Bend), Horizontal & Slim-hole

Drilling

Drilling Technology has made rapid progress since the drilling of first successful oil well in

1859 by cable tool drilling method. Advanced drilling methods like extended reach drilling,

multilaterals, casing while drilling, coil tubing drilling are increasingly becoming the norms

of the industry. In many E&P companies, drilling of conventional vertical wells have mostly

been replaced by horizontal, multilaterals, extended reach wells. Participants therefore felt

that we should also adapt to these advanced technologies by building up in-house

competency.

Expected Results:

Core competency

Productivity enhancement

New business opportunity by providing services

Actions:

Formation of team for identifying and procurement of technology

Identification of wells


Who has to Initiate: RCE, GM (OD&RS)

Milestones:

Identification and application of best available technology

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Develop in house capabilities

To initiate with immediate effect

Idea No. 8 : Mud Policy as per Field Requirement

The group felt that mud parameters should be designed based on geological, lithological and

geo-mechanical studies of the specific field. There should be detailed study of the

geomechanical properties and pressure regime existing in the particular field and use the same

as input for planning the bit, hydraulics and mud policy.

Expected Results: Minimum formation damage

Higher productivity

Minimize down-hole problems

Actions:

Geo-mechanical study

Pore pressure study

Designing of drilling fluids as per field specifications


Who has to Initiate: Head (Chemical)

Milestones:

Identification of field for implementation.

Collection of field data and categorization of field.

Selection of drilling fluids as per field requirement

Idea No. 9 : Inclusion of Modern Drilling Rigs

The participants felt the need of refurbishing /upgrading our drilling rigs with modern

equipments as well as procurement/hiring of modern drilling rigs for more efficient and

safer drilling performance. The rigs may be equipped with top drive system, variable

frequency drive, auto driller, better rig hydraulics etc. Some of these rigs may be custom

made for drilling high angle/ extended reach wells in cluster.

Expected Results: Achievement of drilling targets

Minimize down-hole problems and formation damage

Higher productivity

Actions:

Formation of multidisciplinary team for selection of the best available drilling

rigs

Procurement/ Hiring/ Refurbishment of drilling rigs


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Who has to Initiate: GM (ODRS)

Milestones:

Identification and selection of drilling rig

Procurement/ Hiring as well as refurbishing of existing rigs and training for

operations

Idea No. 10 : Solid Control Equipment

The goal of all modern solids control systems is to reduce overall well costs through the

efficient removal of drilled solids while reducing and minimizing the loss of drill fluids.

Additional goals include worker health and safety and environmental compliance. The greater

the percentage of drill solids removed and drilling fluid preserved, the higher the operating

efficiency.

In most of our drilling rigs, the solid control systems are not fully functional which greatly

hampers the drilling performance. Participants therefore felt that all our rigs should be fitted

with industry standard solid control systems.

Expected Results: Minimize down-hole problems and formation damage

Less wear and tear of equipments

Minimum down time

Actions:

Implementation of industry standard solid control system in all drilling rigs



Milestones:

Identification and selection of solid control system.

Procurement of solid control system and training for operations

Idea No. 11 : Mud Logging unit

Mud Logging Unit is an information hub at the wellsite which brings information on the

drilling process in real time to the decision makers. (onsite or at any remote location). Mud

Logging provides subsurface geological information while drilling a well which can help in

identification of pay zones and fluid contacts. The unit provides electronic monitoring of

drilling parameters such as weight on bit, torque, penetration rate, mud levels, pump speed

which can help to optimize drilling process, geosteering etc. Mud Logging also provides critical

safety functions such as determining pore pressure, kick control and ambient gas

monitoring. Furthermore, with the identification of low resistivity pay, thin reservoir zones and

reservoirs with secondary gas caps in OIL’s area of operation it is imperative that the reliance

on the human factor should be supplemented by monitoring facilities available in the MLUs.

While Mud Logging Units are being used during drilling of most exploratory wells, it should

also be used for monitoring during the drilling of development wells as well.

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Expected Results: Better well management during drilling

Reduction on down-hole problem and formation damage

Improvement in geo-modelling

Actions:

Installing Mud Logging Units (MLU) in all drilling locations

Connectivity of MLU with Drilling, Chemical & G&R Dept.


Who has to Initiate: GM (G&R)

Milestones:

Identification and selection of MLU

Hiring of MLU

Commissioning of MLU and making data available online to all concerned

departments

Idea No. 12 : Drill in Paper

It was strongly felt by the participants that as practiced in the Industry a document enlisting the

detailed step by step operational procedure of each well should be prepared prior to

commencement of drilling. This document would also incorporate the geologic prognosis, basic

well data, HSE details, drilling fluids programme, programmes for bit and hydraulics, wellhead

and BOP configurations, cementing as well as the administrative and data communication

channels.

Expected Results: Better Well management during drilling

Reduction in down-hole problem and formation damage

Drilling target achievement

Cost control

Actions:

Standardization of existing GTO/ Depth Data Drilling Policy

Benchmarking of drilling practices with respect to fields

Condition monitoring of all surface equipments



Milestones:

Formation of Multidisciplinary Team to gather well data

Arranging the resources

Final Documentation

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IV. SUBSURFACE PROBLEMS AND ISSUES DOMAIN

The following subsurface issues / problems were discussed during the brainstorming session:

1. Delineation of Thin Sands

2. Fault Transmissibility

3. Development of Thin Oil Column with Associated Gas Reservoirs

4. Exploitation of Bypassed Hydrocarbon

5. Declining Reservoir Pressure

6. Monitoring of Water Injection Reservoirs

7. Declining production from Aged Fields

8. Near Balanced or Under Balanced Drilling

9. Minimizing down hole complications while drilling

10. Cementing Failure (Primary & Secondary)

11. Wells With Presence of Corrosive Gas (CO2)

12. High GOR in Producing Wells

13. High Water Cut in Producing Wells

14. Sand Ingression in Producing Wells

15. Intelligent Field

16. Wax Deposition

17. Corrosion of tubing in water injection wells

Issue No. 1 : Delineation of Thin Sands

Delineation of thin sands in OIL is mostly based on well-to-well correlation of conventional

well logs and geological information obtained from drill cuttings and cores. There is a certain

degree of uncertainty associated with the continuity and interconnectivity of the sands.

The industry is making increased use of sequence stratigraphic analysis for deciphering the

complexities of determining sand continuity. Recent technological advances in novel, high-

resolution logging instrumentation, increased high-sampling rate data acquisition, advances in

high-resolution signal processing (e.g., deconvolution) techniques, and newly developed thin-

bed interpretation methods now allow an improved reservoir description of such sequences.

Improvements include reliable net pay count; enhanced well-to-well correlation; better thin-bed

correlation of well log, core, and test data.

The participants felt that there should be increased use of the techniques and technology in OIL

on priority basis for a more accurate identification and quantitative evaluation of thin oil and

gas-bearing sands.

Proposed Actions:

High order sequence stratigraphic analysis.

3D Seismic designing for deeper horizons.

Spectral decomposition studies.

Developing capability for wavelet based analysis techniques.

Hiring of Domain Experts.

Expected Results:

Reserve Accretion.

Formulating development plan of thin reservoirs.

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When to Initiate: To initiate with immediate effect

Who has to Initiate: GM (GS) for carrying out the necessary seismic aquisition and analysis

GM (G&R) for formulating development plan of thin reservoirs

Milestones :

Completion of acquisition of broadband data

Spectral analysis and identification of stratigraphic traps

Identification of reservoirs and development plan of thin reservoirs

Issue No. 2 : Fault Transmissibility

Faults control not only the presence of hydrocarbon in a trap but also how much and how they

are distributed. Traditionally flow across faults have been estimated based on reservoir pressure

and production behaviour. In reservoir simulation, the cross-flow behavior of faults has

traditionally been treated simply as a calibration parameter for history matching or by applying

a transmissibility multiplier uniformly to all faults. There is now a growing consensus within

the industry that the correct characterization of fault seals is a crucial missing step in the

reservoir modeling-to-simulation workflow.

Study of fault transmissibility will help in better understanding of reservoir

compartmentalization which will lead to better reservoir management.

Proposed Actions:

Fault Seal analysis.

Pressure Transient analysis.

Tracer injection

Expected Results:

Robust Dynamic Modeling.


Who has to Initiate: GM(G&R)

Milestones :

Identification of Juxtaposition relationship.

Identification of Clay Smearing.

Identification of Reservoir Compartments.

Issue No. 3 : Development of Thin Oil Column with Associated Gas Reservoirs

In Nahorkatiya and Jorajan fields a number of reservoirs with thin oil column (STOIIP < 1 MM

Std Kls) and large gas cap are lying idle pending a suitable development strategy. The

conventional way to produce an oil reservoir that has a gas cap is to produce only from the oil

column while keeping the gas cap in place so that it can expand to provide pressure support.

However, it is difficult to extract oil from these reservoirs through conventional vertical wells

since gas breaks through very early. Gas cannot be produced from these reservoirs since

production of gas would lead to loss of reservoir energy and hence poor recovery of oil.

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Participants felt that a suitable development strategy needs to be formulated for these reservoirs

which could either be:

1. Gas-cap blowdown. Some oil is expected to be produced with high rate of gas

production.

2. Utilization of horizontal wells to accelerate oil recovery prior to gas cap blow down.

However, a detail modelling of the reservoir would be necessary for this for proper

placement of the horizontal wells.

Proposed Actions:

Review of thin oil column reservoirs

Formulation of development plan

Expected Results:

Enhancement in production

1P reserve accretion.



Milestones :

OIL team to visit BG’s Mukta-Panna Field to gather first-hand information.

Short-listing of such reservoirs.

Reservoir study.

Strategy Development

Issue No. 4 : Exploitation of Bypassed Hydrocarbon

The participants felt that lot of bypassed hydrocarbon is still left in our matured fields.

Advanced techniques like cross well resistivity may be implemented to identify these bypassed

zones which can then be exploited through suitable infill drilling. Slim-hole sidetracks can be a

low-cost alternative to drilling new wells. Many wells in our oilfields have been temporarily

abandoned or are lying idle due to downhole complications which can be utilized for drilling

side-track wells.

Additionally in fields like Nahorkatiya, some oil may be left in the crestal part of reservoir (attic

oil) which can be exploited through horizontal wells or maximum reservoir contact (MRC)

wells. An MRC well by definition is a multilateral horizontal well with more than five km of

total contact with the reservoir rock.

Proposed Actions:

Identification of bypassed oil through new technologies like interwell resistivity

logs.

Utilization of idle wells through window cutting and drilling sidetrack/

multilateral wells.

Exploitation of attic oil through horizontal wells / MRC wells

Expected Results:

Enhancement in production.

Enhancement in 1P reserves.


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Milestones :

Reservoir modelling to identify of bypassed oil.

Identification, prioritization and probing of candidate wells for window cutting.

Acquisition of tools and technology.

Drilling of sidetrack wells/horizontal/multilateral wells

Issue No. 5 : Declining Reservoir Pressure

A total of fourteen reservoirs of Nahorkatiya, Jorajan, Moran and Shalmari are presently under

water injection. Apart from these fields there are some other fields including Eocene fields

where reservoir pressure is declining rapidly. Water injection needs to be extended to all these

fields urgently. Participants felt that the conventional way of converting old wells to injectors

may not be sufficient and new injection wells are needed which can be drilled at optimal

locations to provide better sweep efficiency.

Another issue, which needs to be deliberated urgently is re-injection of produced water into the

reservoir. Not only will this be more compatible to the reservoir, but more importantly it will

save some of the precious fresh water resource which is presently being used for injection

purpose.

A study on IOR/EOR application in major Eocene fields is presently being carried out by M/s

Halliburton. Additionally, a pilot project on water injection in Eocene reservoir of Kamkhat

field is being taken up, which will give better understanding of water injection process in

Eocene reservoirs.

Proposed Actions: Aggressive water injection scheme to arrest reservoir pressure decline.

New water injection wells need to be drilled as few old wells are available for

conversion.

Optimal location of injectors.

Produced water re-injection.

Expected Results:

Better Reservoir Management


Who has to Initiate: GM (G&R)

Milestones :

Short-listing of reservoirs.

Identification of injection patterns.

Drilling/conversion of injection wells.

Issue No. 6 : Monitoring of Water Injection Reservoirs

Surveillance of water injection projects is very critical and need to be carried out more

efficiently. At present only basic surveillance techniques are applied which includes monitoring

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of injections rates and pressure production behaviour of the reservoirs. However, all

measurements are to be taken accurately for any meaningful study. Individual well injection

pressure and rates need to be measured and not allocated. In any waterflood project, every

injection well should be equipped with its own water flow meter. It is impossible to evaluate

waterflood performance without individual well injection rate and cumulative injection data.

More advanced surveillance techniques may also be implemented like, use of streamline

simulators, time lapse 3D seismic, PLT combined with high precision thermal logging etc.

Proposed Actions:

Streamline simulators.

Monitoring based on 4D seismic.

PLT.

Downhole memory camera

Expected Results:

Enhancement in Recovery.

Better Reservoir Management.


Who has to Initiate: GM (G&R) for building reservoir model and formulation of action plan

GM(P-Oil) for implementation and day to day monitoring

Milestones :

Building of reservoir models.

Initiation of 4D seismic.

Implementation of Action Plan formulated for the reservoir

Issue No. 7 : Declining Production from Aged Fields

Declining production from our mature fields like Nahorkatiya, Moran, Jorajan, was a concern

for the participants. Although these fields are on production for the last four to five decades, the

participants felt that there is more oil left in these fields which can be extracted through suitable

IOR/EOR applications.

The primary phase of oil production from a reservoir depends on its existing natural energy

source. This primary process is normally supplemented early in the life of the reservoir by

secondary recovery or improved oil recovery (IOR) processes consisting of gas injection and

water flooding. Tertiary or EOR methods are applied at the end of the secondary phase. They

can be thermal, miscible or chemical processes which attempt to sweep out as much as possible

of the remaining oil.

Although OIL has successfully implemented secondary recovery processes like gas and water

injection in some of its reservoirs and polymer flooding in one reservoir, no other field scale

EOR projects have been implemented.

Due to a perception of high investment risks associated with EOR, the associated decision-

making workflows demand screening procedures, simulation exercises and detailed economic

evaluations. Such a study is presently being conducted by M/s Halliburton on application of

IOR/EOR in the Eocene reservoirs of Dikom, Kathaloni, Tengakhat and Chabua. Similar

Dev G Note: 1052

17

studies should also be carried for other matured fields. This may be followed by laboratory

studies and pilot projects of identified EOR methods.

Proposed Actions:

Multidisciplinary team to identify suitable EOR schemes for matured fields.

Pilot project of identified EOR methods

Expected Results:

Enhancement in Recovery.

Enhancement in 1P Reserve accretion.


Who has to Initiate: GM (R&D)

Milestones :

Identification of suitable EOR schemes based on the present condition of the

ageing fields

Build up of infrastructure.

Implementation of pilots

Issue No. 8 : Near Balanced or Under Balanced Drilling

These techniques of drilling greatly reduce the damage caused to the formations because of

over balanced drilling. Induction of the system will minimize damage to the formations,

greatly reduce downhole problem in drilling and facilitate easy activation of the reservoirs.

A study has been conducted recently by M/s Weatherford to carryout screening of short

listed reservoirs and conduct feasibility studies of candidate reservoirs for successful

application of UBD technology. The consultant has recommended application of UBD

technology for drilling horizontal wells in the Makum Barail 4th

+5th

sand reservoir. Once

this technology is introduced successfully, it can be applied to more challenging areas like

highly depleted reservoirs of Nahorkatiya and Jorajan fields.

Proposed Actions:

Study of the reservoir characteristics

Identify the wells to be drilled

Feasibility study

Building up in house expertise / hiring services.

Installing necessary infrastructure.

Expected Results:

Minimum Formation Damage.

Reduction in down-hole problems.

Easy activation.


Who has to Initiate: Head(Ops)-G&R

Dev G Note: 1052

18

Milestones :

Pilot Project in Baghjan field for Near Balanced drilling

Pilot Project in depleted reservoirs of Jorajan, Nahorkatiya fields.

Issue No. 9 : Minimizing down hole complications while drilling

Several complications can occur during drilling operation like hole collapse, stuck pipe, blow

out situations etc., leading to loss of rig time, increased cost and even hole abandonment. Some

of these complications can be handled through proper planning, monitoring and use of

advanced technologies.

Participants unanimously felt that all drilling rigs should be upgraded to industry standards.

Periodic failure analysis of vital rotary parts should be carried out which can be done through

hand held thermal imaging equipments and also by using Condition Based Monitoring gadgets.

Geomechanical studies can be carried out to predict the most optimum drilling parameters to be

used for stable, safe and efficient drilling. Casing While Drilling can be used to drill through the

problematic zones. Using drillable bits with retrievable BHA the hole can be further deepened

or the bit may be left behind once TD is reached. Extended / Ultra Extended / Multilateral

technologies will greatly help us in reaching out to inaccessible reservoirs and can also

eliminate the problem of land acquisition. Shallower wells can be drilled faster with coil tubing

drilling. Additionally, real time monitoring of drilling operations can address some of the

drilling risks directly—and immediately.

Proposed Actions:

Geo mechanical studies.

Periodic failure prediction analysis of vital rotary drilling equipment like

Thermal Imaging, Wear particle analysis etc.

Incorporation of software for designing casing and drill string.

Mandatory use of industry standard solid control equipment.

Field specific drilling mud policy.

Real time monitoring system for all rigs

Incorporation of Drillings Rigs with Top Drive system.

Induction of new drilling technologies like CWD in geologically challenging

formations.

Induction of extended/ultra extended/multilateral drilling technologies to

enhance reservoir accessibility with fewer wells.

Induction of CTD for wells up to 3000 m.

Build-up in-house expertise / hire services

Expected Results:

Increase in Commercial Speed.

Less exposure of the open hole sections.

Lower cost per meter drilled.

Reduction of Caving, Mud Loss, Stuck Pipe and Fishing


Who has to Initiate: GM(G&R), GM(GS), GM (OD&RS)

Milestones :

Use of drill string design in the first well.

Dev G Note: 1052

19

Results of Geomechanical studies.

Mud parameters within desired limits.

Feasibility study by ODRS & Electrical Engg Dept.

Issue No. 10 : Cementing Failure (Primary & Secondary)

Cementing is a critically important operation in the construction of any well by providing a

continuous impermeable hydraulic seal in the annulus, preventing any uncontrolled flow of

reservoir fluids behind the casing. Many serious problems can arise from uncontrolled flows. It

was felt by the participants that problems of isolation failure, losses in well productivity, flow

behind the casing along the annulus could be drastically reduced by further improving our

cementing techniques and technology

Proposed Actions:

Making the existing mixing unit operational.

Procurement of new cementing units with latest technology.

Hiring of service providers for cementing jobs in complicated wells.

Low density cement for gas wells

Self healing cement

Expected Results:

Reduced water cut

Enhancement of production

Less work over jobs


Who has to Initiate: GM(OD&RS)

Milestones :

Rectification of fault in the existing non functional unit.

Locating suitable suppliers for quality cementing unit.

Procurement of such equipments.

Utilizing the service of the service providers.

Issue No. 11 : Wells With Presence of Corrosive Gas (CO2)

In the recently discovered Mechaki field, a relatively high CO2 content (around 5%) has been

observed in the gas stream. Presence of CO2 in high pressure/high temperature wells as in well

Mechaki-2 along with water production can be detrimental to the wellbore and well tubulars

and fittings. It was therefore suggested that a proper study should be carried out to identify

suitable corrosion inhibitors as material specifications for sub-surface assembly. Since a

number of locations have been released for drilling in this field, all future wells should be

equipped to tolerate the presence of CO2.

Another problem envisaged was that since Portland cements are typically used to cement

casings, cement behind casing is susceptible to acid attack by dissolved carbon dioxide which

forms carbonic acid. Particularly at elevated temperatures, continual influx of carbonic acid

convert Portland cement to a soft amorphous gel through a variety of reactions. It was therefore

suggested that use of CO2 resistant cement may be tried in such wells.

Dev G Note: 1052

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Proposed Actions:

Identification and application of suitable CI

Drawing of specification of sub surface assembly

CO2 resistant cement

Expected Results:

Maintain integrity of well tubular and fittings

Extending the producing life of the well by eliminating failures due to corrosion


Who has to Initiate: GGM (Production)

Milestones :

Corrosion studies for screening of suitable CI in R & D Lab.

Procurement and injection of suitable CI based on lab results.

Drawing of specification of sub surface equipments based on fluid characteristic

by Production Department with the help of corrosion experts.

Procurement and completion of future wells with specified sub surface

equipment

Issue No. 12 : High GOR in Producing Wells

The conventional way to produce an oil reservoir with a gas cap is to produce only from the oil

column while keeping the gas cap in place so that it can expand to provide pressure support.

Depending on geometry, reservoir dip angle and oil production rates, gas can either cone down

to the oil producers or fingering intothe oil column, leading to substantial increases in gas-oil

ratios of the oil producers. In general high producing GORs lead to lower recoveries and all

practical steps should be taken to keep the producing GOR as low as possible.

In fields like Tengakhat, a number of wells are producing with high GOR indicating that part of

gas cap is being resulting in loss of reservoir energy. This would lead to lower ultimate

recovery if no corrective measures are taken. Participants therefore felt the need to identify such

high GOR wells and take necessary corrective actions.

Proposed Actions:

Controlled production

Expected Results:

Conservation of reservoir energy


Who has to Initiate: GM(P Oil)

Milestones :

Identification of high GOR wells.

Controlled production.

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Issue No. 13 : High Water Cut in Producing Wells

As fields mature, water cuts in most oil and gas wells increase and the source is either

formation water or injected water used for reservoir pressure maintenance. Usually, the lower

the API gravity of the oil the greater the chance of water production because low-gravity oils

typically are much more viscous and hence have lower mobility. Also, heterogeneities

encountered in reservoir rocks can cause water channeling through higher permeability streaks,

hairline fractures, near-well bore water and/or gas coning, or a combination of these

phenomenon.

Proposed Actions:

Selection of suitable WOR control chemicals

Hiring of experts.

Expected Results:

Reduction in formation water production

Increase in oil production


Who has to Initiate: GM(Production Oil)

Milestones :

Identification of suitable chemicals.

Application of the chemicals in-house or through the help of consultants.

Issue No. 14 : Sand Ingression in Producing Wells

Sand entering production wells is one of the oldest problems faced by oil companies, and one of

the toughest to solve. Production rate may be reduced to ensure that drawdown is below the

point at which the formation grains become detached. More subtly, selective perforation may

avoid zones where sanding is most likely. However, both options reduce production, which may

adversely affect field economics. The other option is to physically restrain sand movement with

slotted liners, sand screens, gravel pack etc.

Gravel pack jobs done recently in some of the wells in Makum –Hapjan areas have given

encouraging results. More sand prone areas need to be studied for application of this

technology. In addition, future horizontal wells in Hapjan field may be completed with Inflow

Control Device (ICD) and sand screen which can help to mitigate sand problem/water coning

and enhance production.

Proposed Actions:

Immediate action can be initiated by the Production group with the help of G&R

group and service providers in the remaining fields.

Representative core studies to analyze critical draw down pressure required for

preventing sanding problems.

Completion of future horizontal wells in Hapjan with ICDs and sand screen.

Expected Results:

Reduction in surface as well as sub surface problems

Dev G Note: 1052

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Who has to Initiate: GM(Production Oil)

Milestones :

Identification of candidates.

Implementation of gravel pack.

Issue No. 15 : Intelligent Field

New technologies are transforming how oilfields operate. Intelligent oilfield is one such

technology which can help oil companies get the most out of their existing fields and establish

successful new fields in remote and harsh areas. By continuously collecting real-time data from

each well and deploying the right skills, tools and work processes in a collaborative way,

companies can instantly create an intelligent enterprise to monitor and control assets and

optimize recovery on demand, from wherever the people or oilfields are.

The participants envisaged such a system for OIL where all data from seismic to production

would be transmitted using wireless technology to a centralized data center. Individual wells

would be equipped with downhole controls and sensors which would help in real time

transmission of pressure production and other reservoir data. The data center would have

facility for real time visualization of all data which would help in quick decision making

process and hence improve operational efficiency.

Proposed Actions:

Identification of suitable field for pilot project

Expected Results:

Real Time Surveillance

Reservoir Management and Production Optimization

Improved Operational Efficiency


Who has to Initiate: GM (P Oil)

Issue No. 16 : Wax Deposition

Wax is a class of hydrocarbons that are natural constituents of any crude oil and most gas

condensates. There is a potential for the wax to crystallize and adhere onto surfaces like the

pipe wall in a tubular and thereby form a deposit layer which will increase with time and

eventually, in the worst case, completely block the line. Such deposition will reduce the

capacity of the line by decreasing the effective diameter and increasing the wall roughness and

thus the pressure drop in turbulent flow. Most often, the wax control strategy simply consists of

scraping the wax away from the pipe wall by regular scrapping. Recent developments have

taken place in the wax control strategy across the Industry. Suitable techniques and wax

inhibitors should be adopted as part of the strategy.

Proposed Actions:

Production department to identify additional wells where the technique can be

applied.

Dev G Note: 1052

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Use of wax crystal modifier along with the Gas lift Gas

Coil tubing (CT) conveyed brush.

Expected Results:

Reduced scrapping activities leading to less chance of fishing.

Increase in production.


Who has to Initiate: GM(R&D)

Milestones :

Selection of suitable candidates.

Application of technology as per requirement.

Issue No. 17 : Corrosion of tubing in water injection wells

Integrity of water injection wells is a critical issue which can undermine the very purpose of

water injection. Most of the injection wells are very old and regular tubing / casing integrity

tests are not carried out. In some cases, severely corroded tubing have been recovered during

workover operations. This leads to the apprehension that the injected water may not be reaching

the target zones. It was therefore recommended by the participants that regular integrity tests

should be carried out in all water injection wells. Tubing of injection wells need to be replaced

with higher grade tubing e.g. L-80. Alternatively, use of GRE line tubing in injection wells may

also be looked into. Injected water should also be treated properly, especially with oxygen

scavengers prior to injection.

Proposed Actions:

Proper specification of the tubing.

Tubing integrity test periodically.

Prevention of corrosion due to oxygen by use of oxygen scavengers

Expected Results:

Improvement in water injection rate.


Who has to Initiate: GM(Prod-Oil)

Milestones :

Checking of tubing integrity at regular periodicity.

Replacement of defective tubing.

V. SOME GENERAL ISSUES / IDEAS

Apart from the above to domains, some general issues were also discussed. These were:

1. Study Center

2. Skill Enhancement

3. Well-Site Camps

4. Group Drilling & Gathering Station (GDGS)

5. Quality Control Cell

Dev G Note: 1052

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1. Study Center

Proposed Actions: Setting up a study centre outside the operational area equipped with state of the

art hardware, software, and laboratory facilities.

Expected Results: Formation of full fledged study centre to can undertake basinal studies, regional

studies, studies of other basins of the world to provide detailed inputs in E&P

opportunities. The Centre would also address specific issues in line with the

system prevailing in other E&P companies like IRS, SHELL study centre.


Who has to Initiate: Management

Milestones :

Building of a relevant database

Focused study related to various subsurface issues

2. Skill Enhancement

Proposed Actions: Identification of domains in which it is required.

Recognize the training agencies.

Regular provision of Seminars/ Symposiums/ Workshops.

Corporate subscription to Onepetro.org.

Opening / conversion of existing facility to a full fledged study centre within

Duliajan (Library fully furnished and air-conditioned with access to internet

within Township / anywhere easily accessible)

Expected Results: Up gradation of knowledge and skills through better exposure


Who has to Initiate: Concerned Heads and Head-T&D

Milestones :

Creation of skilled and up-to-date workforce.

Better working culture in the organization

3. Well-Site Camps (for areas beyond 30 Km from Duliajan)

Proposed Actions: Concept of multidisciplinary team available near the drilling site (Camps) /

Centralized facilities to monitor nearby wells.

Expected Results:

Better Monitoring of well-site operations.

Dev G Note: 1052

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Milestones :

Quick decision and implementation

4. Group Drilling & Gathering Station (GDGS)

Proposed Actions: Appropriate land acquisition for to accommodate plinths of maximum number of

locations to be accessed both by S-Bend and J-Bend drilling.

Accommodating production setups and provisions for IOR/EOR facilities within

this Station.

Facilities for fluid offtake points

Residential facilities in the model of OIL’s Tanot (Rajasthan) complex.

Expected Results:

Centralized Land Acquisition for many wells

Better security and monitoring both for drilling, workover and production setups.

Quick decision and implementation

When to Initiate: Feasibility study may be initiated at the earliest.


Milestones :

Identification of areas

Acquisition of land

Setting up of the GDGS

5. Quality Control Cell

Proposed Actions:

Material specification cell to be set up for drawing suitable specifications based on factors like

application, metallurgy, industry standards etc. to facilitate procurement of equipment,

consumables & spare parts vital in nature.

Expected Results:

Quality Assurance and reduction of premature failure of equipment, mechanical

components and consumables in Drilling and Production operations. This will

also lead to uniform code and standard across the company. In addition it will act

as deterrence against purchase of sub standard spare parts and equipment.


Who has to Initiate: Head-Materials, Head (Chemical), GM( R & D)

Milestones : Reduced subsurface equipment failures.

Dev G Note: 1052

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Increase Cost effectiveness.

VI. CONCLUSION

5.1 Based on the ideas generated during the brainstorming session, a number of ideas have

been prioritized in the following Table. Furthermore, the number of actions on the ideas

generated during the session have also been prioritized as follows.

Priority Ideas

Setting up a study centre outside the operational area equipped with state of the art

hardware, software, and laboratory facilities.

Setting up of a Group Drilling & Gathering Station (GDGS)

Drill in Paper

QC Cell

Priority Actions

Requisite studies for formulation of Mud Policy as per Field Requirement

Building up of In-House Technology and expertise for High Angle (J-Bend),

Horizontal & Slim-hole Drilling

Actions related to subsurface problems and issues

VII. ACKNOWLEDGEMENT

6.1 The participants of the session are extremely grateful to Mr. N.M. Borah, Chairman and

Managing Director, for initiating the idea of the brainstorming session and providing a truly

learning experience for the participants. We would also like to place on record our sincere

gratitude to the OIL Management for providing us the opportunity to participate in this

wonderful session.

6.2 We are grateful to Sri B. N. Talukdar, Director (E&D) for his encouraging words and

setting the tenor at the beginning of the session. We shall remain grateful for his valuable

suggestions during our presentation on the outcome of the brainstorming session.

6.3 We are also thankful to Sri K.K. Nath, GM (GS) for his guidance.

6.4 The group is also overwhelmed by the meticulous planning and execution of the session

by the BP coaches, T&D department and Pipeline departments.

6.5 General Manager (G&R) has gone through the Note critically and his invaluable

suggestions/ comments are gratefully acknowledged.

Dev G Note: 1052

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U. A. Dutta

PE (Oil)

P. K. Singh

Geophysicist

M. K. Banerjee

Geophysicist

N. Gogoi Senior Geologist

N. Deka

Senior Geologist

J. B. Borah

Senior Engineer (Prod Oil)

S. Intaz

Dy. SE (Prod Gas)

D. K. Borah

Suptdg. Chemist

Dr. J. Hazarika

Suptdg. Chemist

C. M. Pakhale

SE(Prod Gas)

D.M. Baruah

SE(Well Logging)

S. Deb

SE (Drilling)-TS

P. Dutta

SE (Reservoir)

K. Buragohain

Suptdg. Geologist

U.K. Doley

Dy. CE(Drilling)

J. Kumar

Dy. Chief Research Scientist

M. Ravishankar

Dy. Chief Research Scientist

I. Barua

Chief Geologist

Duliajan: November 2009

Copy: Director (Ops)

RCE

GM (GS) / GM (T&D) / GM (G&R) / Head TU / Chief Coordinator (BP)

File

Dev G Note: 1052

28

Annexure: I

Participants of the Brainstorming Session

Mr.U. A. Dutta, Production Engineer (Oil)

Mr.P. K. Singh, Geophysicist

Mr.M. K. Banerjee, Geophysicist

Mr.J. B. Borah, Senior Engineer (Prod Oil)

Mr.N. Deka, Senior Geologist

Mr.N. Gogoi, Senior Geologist

Mr.S. Intaz, Dy. Suptdg. Engineer (Prod Gas)

Mr. D. K. Borah, Suptdg. Chemist

Dr. J. Hazarika, Suptdg. Chemist

Mr.S. Deb, Suptdg. Engineer (Drilling)-TS

Mr.C. M. Pakhale, Suptdg. Engineer (Prod Gas)

Mr. D.M. Baruah, Suptdg. Engineer (Well Logging)

Mr.P. Dutta, Suptdg. Reservoir Engineer

Mr.K. Buragohain, Suptdg. Geologist

Mr.U.K. Doley, Dy. Chief Engineer (Drilling)

Mr.M. Ravishankar, Dy. Chief Research Scientist

Mr.J. Kumar, Dy. Chief Research Scientist

Mr. I. Barua, Chief Geologist

REPORT ON Brainstorming Session for …Brainstorming Session for Development, Management and...

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