Heavy Oil Presentations at DEVEX 2006
There was an interesting and varied set of presentations on “heavy oil” at DEVEX 2006, held at Aberdeen Exhibition and Conference Centre on 17 and 18 May 2006. As well as a specific ‘Heavy Oil’ session, there were related presentations during other sessions, illustrating the breadth of interest in this developing resource. All of the heavy oil presentations can be viewed and downloaded from DTI’s “UK Heavy Oil Matters” website. Colin Cranfield (Colin.Cranfield@dti.gsi.gov.uk) from the DTI office in Aberdeen Reports.
Heavy Oil Presentations
The ‘Heavy Oil’ session was introduced by Colin Cranfield of DTI. He pointed out that UKCS heavy oil production currently amounts to 10% of total UK oil production but could play an increasingly important role. DTI has raised interest through “Promote” heavy oil licences. The DTI “Fallow Assets” process is also pressuring companies with heavy oil discoveries held under traditional licences to move forward.
The first presentation by Peter Chadburn of Oilflow Solutions was on “Heavy oil viscosity reduction with hydrogels”. Peter covered traditional methods of reducing heavy oil viscosity, then showed an alternative of adding Proflux hydrogel. This forms a dispersion which can reduce oil viscosities of 600-200,000 cp. to less than 100 cp. Peter presented results of a successful Albanian field trial which comprised injection both in a surface pipeline and downhole to a PCP, together with future R&D plans.
Gareth Freeston-Smith of Shell then reviewed “Gannet E: Management of a mature heavy oil field”. Gannet E was uneconomic until a world-record ESP tie-back enabled production start-up in 1998. The reservoir comprises high quality Upper Forties sandstones. Crude gravity is 20° API with reservoir viscosity 10-20 cp. There are three sub-sea producers. Despite the absence of 4D signal and paucity of surveillance data, studies could lead to infill wells and another pipeline, significantly raising RF.
Howard Simons of Sonhoe Development Co. described “An integrated solution for heavy oil developments”. Sonhoe has worked with Mare Corp. on a deep-draft drilling semi-submersible allied to an onshore upgrader, aimed at heavy oil development. The semi-sub would produce, drill and perform well maintenance, with de-watering mainly onshore. There has been significant progress towards building an upgrader at Teesside. Crudes with gravities as low as 12° API could be produced.
Colin Birch of Purvin & Gertz spoke on the “Value and marketability of heavy oils”. He reviewed the fundamentals of the heavy oil crude market and cost of refining. He showed that increased oil price had resulted in widened light/heavy price differentials. Some of this could be recovered by investing in heavy oil refining/upgrading and this becomes more profitable as light/heavy spreads widen. UKCS heavy oils are generally low sulphur so might give additional value versus other crudes.
“Heavy Oil” Panel Session Speakers (from left) Colin Birch, Howard Simons, Gareth Freeston-Smith, Peter Chadburn and Colin Cranfield
Malcolm Greaves of University of Bath concluded the ‘Heavy Oil’ session with a presentation on the “Application of THAI process in the North Sea for maximising heavy oil recovery”. He reviewed traditional EOR methods and explained their inherent problems. In contrast, toe-to-heel air injection was stable and could give very high RFs of 70-80% and partially upgrade the oil in situ. Simulation and experimental results backed this up. A first pilot test was planned for 2006, in the Athabasca region.
Stephen Kew of Xcite Energy challenged traditional perceptions while presenting on “Heavy oil – What makes it all worth while now?”, during a ‘Greenfield’ session. Many heavy oil discoveries were made in the 1970s, before the enabling technologies and development solutions of today were available. Studies on the 9/3b heavy oil accumulation had improved the reservoir description and helped understand reasons for the lack of flow during appraisal. Remaining uncertainties would be resolved via an appraisal well, using modern techniques.
A further presentation entitled “Heavy Oil – a growth business for small companies” was given by Steve Jenkins of Nautical Petroleum, during a session on ‘Future Directions’. UKCS heavy oil offered many opportunities for a small company to grow. Nautical had built-up a balanced portfolio including interests in the Mariner field, Kraken discovery and Selkie/Kelpie and Mermaid prospects. A phased development starting with core area would increase reserve certainty, provide early revenue and help build on earlier success.
Hence, Devex 2006 was once again a very useful opportunity to network and share information. The papers presented were all first class. From the evidence, it would appear that a number of currently undeveloped UKCS heavy oil discoveries will proceed to development within the next few years.