Oil & Gas - Maximising Recovery Programme (formerly SHARP) IOR Views

Themes

Technical sessions were held on Condensate and HPHT Reservoirs, Reservoir Characterisation and Simulation Techniques, Advanced Seismic Techniques, and Maximising Recovery from "Brown Fields" followed by panel discussions. There was also a session on DTI-sponsored JIPs which could not be fitted into the four main themes. Paul Blakeley, Vice President, Talisman Energy (UK) Limited gave an after dinner talk at the end of the first day.

Discussions

The delegates and presenters were a cross-section of people from operating oil companies, DTI and the service, consultancy and academic sectors.

There was lively discussion during the two panel sessions on the first day, but because of overrun by the presenters there was no time for the scheduled panels on the second day. A note on the discussion is available to download at http://www.dti-sharp.co.uk/dissemination/openreports/DTIIOR04/Seminar_Report.pdf.

During the Condensate and HPHT Reservoirs session, in reply to questions Richard Milton-Worssell, DTI addressed the problems in working new prospects in the HPHT overprint areas he had described, for example fracture histories and compartmentalisation were an issue. The number of prospects is large and, at the moment, ill-defined. Richard is aiming for a better definition of the "size of the prize". There are many discoveries still undeveloped but costs are high and there is a need to learn from other parts of the world on how to explore and develop these discoveries at lower costs. How can smaller companies be attracted to these plays? At the prospect fair last year (2003) Richard was approached by a US company that was very interested in HPHT and deep-water prospects. There are many companies interested. The question is can we prove reserves? We need to firm up these numbers to attract them.

A common thread running through the Reservoir Characterisation and Simulation Techniques session related to the question "How can we understand the effects of uncertainty and heterogeneity on the fine scale and incorporate them into practical models that can be solved and used for field development?" Examples were presented across the whole range - covering uncertainty, upscaling, the use of multiple realisations to give a best fit solution and an estimate of the uncertainty, streamline methods as an alternative to conventional finite difference methods.

The discussion centred around three main areas: the practical application of the methods based on percolation theory to estimate uncertainty in real fields; the most appropriate choice of simulation method under different circumstances; what changes would be required in practice to make carbon dioxide injection (the simulation of which had been a topic of one of the papers) happen in the field.

Downloads Available

A summary of the seminar is available to download. A full list of the papers presented is given below. All authors either provided a written paper or abstract. Many have also made the PowerPoint presentation they used at the seminar available. These can all be downloaded from here, on the main OG-MRP (formerly SHARP) website.

• Well Testing in Condensate Reservoirs and Well Deliverabilty Improvement by Wettability Alteration, Manijeh Bozorgzadeh (substituting for Prof. Alain Gringarten), Imperial College
• Gas Condensate Recovery Studies, Prof. Ali Danesh, Heriot-Watt
• The DTI High Pressure High Temperature Yet to Find Initiative, Richard Milton-Worssell, DTI
• Uncertainty and Upscaling Project in Reservoir Modelling, Dr. Vasily Demyanov, Heriot-Watt
• Fast Estimation of Risk Using Percolation Theory, Prof. Peter King, Imperial College
• Streamline-Based Simulation of Carbon Dioxide Sequestration Into a North Sea Aquifer, Prof. Martin Blunt, Imperial College
• Streamline Simulation Experience from Field Studies, Roger Skinner, BP
• Outcrop Characterisation of Transgressive Sandstone Reservoirs, Dr. Gary Hampson, Imperial College
• Phase Behaviour and Properties of Reservoir Fluids, Dr Fatosh Gozalpour, Heriot-Watt
• Gas Hydrate and Flow Assurance Studies, Dr. Bahman Tohidi, Heriot-Watt
• Pore Level Flow Visualisation and Network Modelling of Water-Alternating-Gas (WAG) Injection, Prof. Dabir Tehrani and Dr Rink van Dijke, Heriot-Watt
• Report Back from DTI UKCS Heavy Oil Recovery Seminar Held on 29 April 2004, Colin Cranfield, DTI
• Collaborative Initiatives to Improve Access to Subsurface Data, Malcolm Fleming, CDA
• Joint Inversion of P-P and P-SV Marine Seismic Data for P-Wave and S-Wave Velocities, Prof. Anton Ziolkowski, University of Edinburgh
• Where is the Value in Long Offset Seismic Data and What is its Role in a Mature North Sea Basin ?, Richard Morgan,Veritas DGC Ltd
• Potential And Demonstrable Benefits of Recording North Sea Data to 8 km Offset, Dr John Sunderland, TGS-NOPEC
• The Myth of AVO West of Shetlands - Has it Been the Achilles Heel for Exploration Success Particularly for the Palaeocene, Nick Loizou, DTI
• Seismic in the Central North Sea Area - Shell's Experience and Challenges, Stephan Hannke, Shell
• PILOT Brownfield Initiative, Andrew Carr, DTI
• The Value of Information in Late Field Life, Stephen Pickering, WesternGeco
• Life Extension of Mature Fields Resulting From a Change in Approach by a New Operator, David Heslop, Talisman
• Generating Options for Andrew Using 4D Seismic Surveillance, Ronnie Parr, BP
• Incremental Investments and Future Production From the UKCS, Prof. Alex Kemp, University of Aberdeen

After Dinner Talk - Paul Blakeley, Vice President, Talisman Energy (UK) Limited

For the first time ever there was an evening dinner associated with the seminar. We are indebted to Paul Blakeley, Vice President, Talisman Energy (UK) Limited for his interesting and inspiring talk at the dinner.

Paul said that maximising hydrocarbon recovery was a subject close to his heart and features strongly in Talisman's strategy for the North Sea.

It is 10 years since Talisman acquired Bow Valley and with it an interest in the North Sea. Since then they have tried to change the way assets are operated by consolidating their interest in their primary operated fields through asset exchange - disposing of interests in their non-core fields. Too many stakeholders in an asset make investment decisions hard to make.

Looking at the "size of the prize", Paul said that 30-32 billion BOE had been produced so far from the UKCS, with an estimated future reserve of 25-31 billion BOE. This number, however, is not preordained - it won't be achieved without something being done, and the outcome depends on the actions taken. This represents a challenging opportunity both now and for the future.

The Pilot prediction is that production will decline to 3 million BOE per day by 2010. UKOOA data suggest that 12.5 billion BOE will be produced from now to 2020 from current field developments, reaching 14 billion BOE by 2040. This is way short of the estimated remaining reserve. The difference between the 14 billion BOE estimate and the 25-31 billion BOE potential represents a value of $(US) 300-500 billion which is a potential loss to UK plc.

Technology has a vital role to play. 3D surveys are an order of magnitude better than 10 years ago. Today's computing power is taken for granted - AVO, AI, 4D are all routine, there's no looking back. There have been significant advances in drilling and well technology - coiled tube drilling, extended reach, through tubing rotary drilling, mud systems. What will wells be like 10 years from now? Have we gone as far as we can go? It is important to retain infrastructure and we must work hard on its management particularly prevention of corrosion.

UKCS focus in now on HPHT, Heavy Oil, and Brown Fields. IOR has a role to play and can do incredible things! Paul's view is that the best IOR is to double the number of wells and half the cost!

Developments in technology are required. These should be tested onshore, where the cost of any failures is cheap, prior to offshore application. Clarification of the meaning of R&D for tax purposes in the UK would be welcome - the treasury could change fiscal rules to get good ideas for new technology tested and implemented.

DTI initiatives - Fallow Block, Promote Licences, CDA - encouraging UKCS activity are welcome.

With technology advances, investment in the right hands, a degree of asset "churning", appropriate fiscal measures and collaborative ways of working the prize should be achievable.

Tissa Jayasekera, DTI Congratulates Paul Blakeley, Vice President, Talisman Energy (UK) Limited on His After Dinner Talk