Thursday 22nd of March 2012

Photo courtesy of Howard Johnson

Wytch Farm Field Development Project

Marcel&Conrad for Team BMohammed Alshawaf , Lanray Hammed Bakare, Francisco J. Barroso Viseras, Aristeidis Karamessinis,Ha Nguyen and Shi Su

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Marcel&Conrad Field overview

• Southern coast of the UK

• Onshore and offshore

• High sensitive environmental area: AONB, HC among others

BP for Imperial College, 2012

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Marcel&Conrad Aim and objectives

Prove the economic viability of the project

Characterise and model the reservoir

Propose a development and production plan

Demonstrate the economic facts

Assess the uncertainties and risks P10 P50 P90

Reserves (MMstb) 412 318 219NPV15%(USD millions) 928 735 442

IRR (%) 41.5 39.7 34.0

Marcel&Conrad Reservoir facts

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Geological overview• Reservoir Sherwood Sandstone• Seal Mercia Mudstone• Source Lias Formation• Play type Tilted fault blocks

Underhill & Stoneley, 1988Source

SealReservoirUnderhill & Stonely, 1988

Field appraisal

• 3D seismic survey• Producers 1X-02, 1D-02• Appraisal wells 3

Depth (TVDSS) 1585 m

Pressure 165 bar Oil column thickness 39 m

Areal extent 40 km2 API gravity 38.1° @ 15°C

GOR @ 165 bar, 66°C 320 scf/stb

P90 P50 P10

STOIIP (MMstb) 580 795 1040

Recoverable oil (MMstb) 219 318 412

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Marcel&Conrad Building a simulation model

• Integrate various sources: from outcrop to cores

• Coarsen to allow simulation

• QC to ensure consistency

2.5 million 80,000 cells

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Marcel&Conrad Development plan strategy

Parameter Constraint Solution

Drilling strategy

Number of wells Recovery factor vs economics

11 producers / 5 injectors

Schedule Rates and rigs 3 months/well

Well type & location Environment and oil distribution

Extended reach

Production strategy

Plateau Maximise recovery and surface facilities 3-year plateau

Water injection Pressure maintenance After 14 m

Production time Lease and economics 23 years

• Oil expansion and aquifer drive are the most plausible

• Low primary recovery => water injection

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Marcel&Conrad Development plan results

• 3-year plateau• Injection starts after 14

months• 318 MMstb recoverable• 40% recovery factor

based on P50

STOIIP 795 MMstbRecovered 318 MMstb

P90 P50 P10STOIIP (MMstb) 580 795 1040

Recovered oil (MMstb) 219 318 412

Recovery factor 38% 40% 40%

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Marcel&Conrad HSE Policy

High responsibility policy• Labour accidents• Oil and gas spillage• Noise pollution and

biodiversity

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Marcel&Conrad Surface facilities and export

Transport• Flowlines

Separation• 3-stage Gas Liquid

Treatment• Chemical additives• Water

Storage / Export• Pipelines• Terminals

P90 P50 P10

Produced oil ;ďŽƉĚͿ 52,000 76,000 98,000

Gas ;D D ƐĐĨ ĚͿ 5.5 8 10.4

LPG ;ƚŽŶŶĞƐ ĚͿ 87 126 163

Injected H2O ;ďďů ĚͿ 43,000 63,000 82,000

Quantities Destination ;ůŝĞŶƚ Ϳ

Produced oil ;ďŽƉĚͿ 76,000 Fawley refinery

(Esso)

Gas ;D D ƐĐĨ ĚͿ 8 Iwerne Courtney

(National Grid)

LPG ;ƚŽŶŶĞƐ ĚͿ 126 LPG loading plant

(Flexible)

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Oil• 75 km, 18” OD pipeline

Gas• 34 km, 8” OD pipeline• Pressure regulation tie-in

LPG

• 4 km, 6” OD pipeline• LPG loading plant

16.5 km

Marcel&Conrad Project economics

Parameter Value

Discount Rate 15%

Inflation Rate 2%

Price of Oil ($/stb) 15

Price of Gas ($/Mscf) 1.7

Price of LPG ($/tonne) 210

First Oil (Year) 2017

• Ensure viability of the project

• Estimate annual cashflows

• Assess uncertainties

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Marcel&Conrad Project economics

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Marcel&Conrad

Reprocess Seismic Data

Coring

Fluid Sampling

RFT

Full Suite Logs

SBHP/T

Separator/Wellhead Samples

Well Rate Tests

PLT

PNL

Oil Production

Year

Dat

a A

cqui

stio

n

2016 2023 2024 2025 2026 To 2039202220212020201920182017

Reducing uncertainties

Data acquisition plan Reprocess seismic data Coring of the first few wells

SCAL Logging

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Marcel&Conrad Risk analysis

• Flow assurance, facility checks

• Training, PPE, housekeeping

• Various production plans

• Pollution prevention, noise reduction

• Promise work positions

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Marcel&Conrad

>

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 > Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Company approval

Planning FDP

Governmental approval

Project management

Front end engineering design

Engineering

Procurement

Construction

Commisioning

Drilling

Production

Decommissioning

Abandonment

2039 2040 20412017 2018 20382012 2013 2014 2015 2016

Project lifecycle

First oil

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Marcel&Conrad

P10 P50 P90

Reserves (MMstb) 412 318 219

Recovery factor (%) 38 40 40

Recommendations

Environmental regulations upheld

Shrewd reservoir management

practices planned

High profitability achieved

Efficient mitigation schemes designed

P10 P50 P90

NPV15%

(USD millions)928 735 442

IRR (%) 41.5 39.7 34.0

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Marcel&Conrad

Thank you

Any questions ?

Safely

Reliably

Cost-Effectively

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Marcel&Conrad

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Marcel&Conrad

• Drive mechanism• Sweep efficiency• Upscaling:

• Tubing performance• Pipelines design:

• Drilling mud• Completions design: - Casing

- Perforations

- Parameters- Quality check

Appendices

- Oil- Gas

Marcel&Conrad Drive mechanism determination

• Limitations of material balance

• Oil expansion and aquifer drive are the most plausible• No assumption can be validated

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Marcel&Conrad Sweep efficiency analysis

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• Injection after 14 months• 92% sweep efficiency achievable over 23 years

Marcel&Conrad Upscaled model consistency

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Static properties

Geology

Volumetrics

Upscaled properties

kh, kv

Φ

Facies

Dynamic properties

Cumulative production

Bottom-hole pressure

Oil saturations

Sweep efficiency

Water cut

Coning water

Numerical diffusion

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Marcel&Conrad Geology and upscaled properties: facies

Fine grid Coarse grid

Marcel&Conrad Upscaled properties: kh

Fine grid

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Coarse grid

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Marcel&Conrad Upscaled properties: Φ

Porosity distribution: Fine vs Coarse grid

%

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Marcel&Conrad Cumulative production

- Fine grid

- Coarse grid

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Marcel&Conrad Bottom-hole pressure

- Fine grid- Coarse grid

Injectors Producers

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Marcel&Conrad Oil saturations

Fine grid Coarse grid

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Marcel&Conrad

0 0.1 0.2 0.3 0.4 0.5 0.6 0.70

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Coarse Fine One to One line

tD (pore volume injected)

NpD

(por

e vo

lum

e pr

oduc

ed)

Sweep efficiency

Marcel&Conrad Water cut

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- Fine grid

- Coarse grid

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Marcel&Conrad Coning water

Fine grid Coarse grid

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Marcel&Conrad Numerical diffusion

Fine grid Coarse grid

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Marcel&Conrad Drilling schedule

DrillingOil productionWater injection J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D1P-011P-021P-031P-041P-051P-061I-011I-022P-012P-022P-032P-042P-052I-012I-022I-03

Year2016 2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

• 1 permanent rig for each site, 1 moveable rig

• Priority based on oil production rate

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Marcel&Conrad Well type and location

• Extended reach wells

• 2 well sites

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Marcel&Conrad

0 2 4 6 8 10 12 14 16 18 20 220

20

40

60

80

100

120

140

160

180

Reservoir pressure profile throughout the field life

With injection

Without injection

Time Elapsed (year)

Reservoir pressure (bar)

Water injection strategy

• Water injection after 14 months in order to ensure pressure maintenance

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Marcel&Conrad Tubing performance, ESP design

0 10,000 20,000 30,0000

20

40

60

80

100

120

140

160

180

Tubing performance without ESP

IPR, Pr=160 bar

IPR, Pr=124 bar

IPR, Pr=103 bar

TPC, No ESP

Bottomhole flowrate (stb/d)

Bottomhole pressure (bara)

0 5,000 10,000 15,000 20,0000

20

40

60

80

100

120

140

160

Tubing performance with ESP

IPR, Pr=124 bar

IPR, Pr=103 bar

TPC, ESP 10 stages

TPC, ESP 90 stages

TPC, ESP 170 stages

Bottomhole flowrate (stb/d)

Bottomhole pressure (bara)

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Marcel&Conrad Gas pipeline design

• An optimum of 8” OD has been chosen

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2165

67

69

71

73

75

77

79

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Gas pipeline design

Pipeline OD (inches)

Delivery outlet pressure (bar)

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Marcel&Conrad Oil pipeline design

• An optimum of 18”OD has been chosen

13 14 15 16 17 18 19 20 21 22 23 24 250.9

0.92

0.94

0.96

0.98

1

1.02

1.04

1.06

Oil pipeline design

Pipeline OD (inches)

Delivery outlet pressure (bar)

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Marcel&Conrad Mud weight

• A mud weight of 1.15 sg has been chosen

0 50 100 150 200 2500

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Pore Pressure

Fracture pressure

Mud pressure

RFT 1K-01

RFT 1F-11

RFT 98/6-08

Pressure (bar)Depth (mTVD)

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Marcel&Conrad Casing

36”150m

20”550m

7”1630m

13 5/8”150m

4”150m

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Marcel&Conrad Perforation density

• An optimum of 8 spf has been chosen

0 5 10 15 20 25 3013800

14000

14200

14400

14600

14800

15000

15200

Perforation density sensitivity

Perforation density (shot/ft)

Liquid production rate (stb/d)

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Marcel&Conrad Upscaling parameters

Parameter / Property Static model value Constraint Dynamic model

Grid dimensions 100x100Capture geological and petrophysical hetereogeneities

390x270

Zonation and layering 7 zones, 140 layers Capture vertical hetereogeneities 7 zones, 50 layers

Facies N/G Respect the depositional model Most of

Horizontal permeabilities kx, kyHonour the channel distribution Arithmetic

Vertical permeability kzCapture the heterogeneities Geometric

Porosity Φ Honour the channel distribution Arithmetic