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Unlocking the potential from UKCS low deliverability reservoirs Colin Cranfield (DTI)

Unlocking the potential from UKCS low deliverability reservoirs Colin Cranfield (DTI) Pete Naylor (ECL Technology). Overview. Background PILOT vision Size of the prize DTI study Literature review Meetings Workshop Ongoing activities. PILOT - vision & challenges.

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Unlocking the potential from UKCS low deliverability reservoirs Colin Cranfield (DTI)

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  1. Unlocking the potential from UKCS low deliverability reservoirs Colin Cranfield (DTI) Pete Naylor (ECL Technology)

  2. Overview • Background • PILOT vision • Size of the prize • DTI study • Literature review • Meetings • Workshop • Ongoing activities

  3. PILOT - vision & challenges • Maintaining UK production • 3 million boe/d in 2010

  4. Total UKCS production (million boe/d)

  5. PILOT - vision & challenges • Maintaining UK production • 3 million boe/d in 2010 • Production increments needed from • Brown fields • Undeveloped discoveries • Exploration and appraisal success

  6. Undeveloped Discoveries • Significant UKCS potential resource

  7. high • 300+ undeveloped discoveries • > 6 BBOE reserves P3 P2 high low P3 low P2 UKCS - produced & remaining

  8. Undeveloped Discoveries • Significant UKCS potential resource • Technical challenges • Heavy oil • HPHT • Sour reservoirs • Low deliverability

  9. Undeveloped Discoveries • Significant UKCS potential resource • New technical challenges • Heavy oil • HPHT • Sour reservoirs • Low deliverability • Undeveloped Discoveries Workgroup survey

  10. UDW survey – development barriers

  11. UDW survey – development barriers

  12. Review literature Structured discussions Interactive workshop Disseminate results Collate data DTI action on low deliverability • Low deliverability is a barrier in at least 46 undeveloped discoveries • 35 undeveloped discoveries examined in detail

  13. Literature review – 4Q 2000 • Many reasons for low deliverability • Industry does not focus on overall problem • Established remedial techniques • Hydraulic fracturing • Long deviated wells • Relatively few novel techniques • Seismic • Visco-elastic fracturing fluids

  14. Study - Indicative HCIIP distribution By geographical area By fluid type • Aggregate undeveloped discoveries studied: • HCIIP > 2.5 billion boe • Technical reserves > 0.5 billion boe

  15. Mind maps to identify barriers

  16. Mind maps to identify barriers

  17. Mind maps to identify barriers

  18. Mind maps to identify barriers

  19. Objectives networks for solutions

  20. Objectives networks for solutions

  21. Objectives networks for solutions

  22. Technical Barriers Non-technical Relative importance of barriers

  23. Technological Solutions Commercial Relative importance of solutions

  24. Conclusions • Primary technical barriers: • Uncertainties in reservoir characterisation • Compartmentalisation • Low permeability • Solutions exist in many cases • Relatively few technology gaps • Significant contractual / commercial barriers • Future opportunities - what is required: • Change in culture • Strategies to manage risk

  25. Recommendations • Evaluate progress in key technological areas • Quantify potential benefits • Report successes / failures • Disseminate best practices • Reduce risk • Collaboration • Field trials • Review procurement practices • Focus on value • Raise awareness • Technology champions

  26. Current strategies (1) • DTI / PILOT • Fallow blocks /discoveries initiative

  27. Four years of no drilling, or no Development Programme four years after discovery CLASS A CLASS B Misalignment, Not economic, Commercial barriers Doing all that can be expected Renewed activity? YES Retain NO Market testing (12 – 18 months) Relinquish Divest/Reassign Fallow process

  28. Current strategies (2) • DTI / PILOT • Fallow blocks / discoveries initiative • Shortened licence terms for new licences • Access to infrastructure • Consultation on “promote” licences • Availability of regional data • UK-Norway North Sea co-operation

  29. Current strategies (3) • DTI / PILOT • Commercial “Code of Practice” • Study on technology uptake • Brown field work group • ITF solutions to low permeability • Show-case events

  30. Code of practice DTI fallow initiative Fallow assets onto LIFT ITF Low perm. solutions 2002 2004 2003 2005 2002 PILOT 2005 target Increasing impact of specialist companies Continuing efficiency and technology improvements Potential timeline

  31. Further information • www.og.dti.gov.uk • www.pilottaskforce.co.uk • www.indigopool.com/publicchannel/uklift • colin.cranfield@dti.gsi.gov.uk

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