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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) Pete Naylor (ECL Technology)
Overview • Background • PILOT vision • Size of the prize • DTI study • Literature review • Meetings • Workshop • Ongoing activities
PILOT - vision & challenges • Maintaining UK production • 3 million boe/d in 2010
PILOT - vision & challenges • Maintaining UK production • 3 million boe/d in 2010 • Production increments needed from • Brown fields • Undeveloped discoveries • Exploration and appraisal success
Undeveloped Discoveries • Significant UKCS potential resource
high • 300+ undeveloped discoveries • > 6 BBOE reserves P3 P2 high low P3 low P2 UKCS - produced & remaining
Undeveloped Discoveries • Significant UKCS potential resource • Technical challenges • Heavy oil • HPHT • Sour reservoirs • Low deliverability
Undeveloped Discoveries • Significant UKCS potential resource • New technical challenges • Heavy oil • HPHT • Sour reservoirs • Low deliverability • Undeveloped Discoveries Workgroup survey
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
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
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
Technical Barriers Non-technical Relative importance of barriers
Technological Solutions Commercial Relative importance of solutions
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
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
Current strategies (1) • DTI / PILOT • Fallow blocks /discoveries initiative
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
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
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
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
Further information • www.og.dti.gov.uk • www.pilottaskforce.co.uk • www.indigopool.com/publicchannel/uklift • colin.cranfield@dti.gsi.gov.uk