American Oil and Gas Reporter - April 2015 - 113
SpecialReport: Offshore Tech Trends
Study Analyzes Paleogene Recovery
By Jamie Hartley,
Eric Smedstad,
Ervina Widjaja
HOUSTON-The Gulf of Mexico Paleogene (Wilcox trend) contains large recoverable oil reserves, with the estimated
recoverable reserves of many announced
discoveries in excess of 250 million barrels. However, with drilling depths to
35,000 feet, high reservoir pressures, ultradeep water depths and estimated total
costs on the order of $180 million to
$200 million per well, the Paleogene also
presents operators with unique field development and production challenges.
Given high field development costs,
coupled with low recovery factors, many
operators are looking at various means
of improving the economics of developing
these discoveries. Artificial lift technologies in the form of downhole electric
submersible pumps or subsea mud-line
boosting pumps are being deployed to
improve the recoverable reserves and
overall economics of Paleogene field developments.
According to the Deepwater GOM
study by the Research Partnership to
Secure Energy for America, permeability
values in Paleogene reservoirs can be
more than an order-of-magnitude lower
than in other deepwater Gulf plays. On
top of poor permeability and porosity,
the reservoirs are not expected to have
an appreciable drive mechanism, so recovery factors for natural flow are anticipated to be about 10 percent of the
original oil in place. Even small improvements in the recovery factor can
have a significant impact on the economics, given the large size of the reservoirs. In fact, Wood Mackenzie estimates
that a 2 percent recovery factor improvement translates to an increase of
$1 billion in a Paleogene field's net
present value.
RPSEA's study reveals that both downhole ESPs and mud-line boosting pumps
are anticipated to have the potential to
increase recoverables by 6.4 percent or
more. However, many variables come
into play that can impact the overall economic performance of a field development
using pumps to increase recoverable reserves. Downhole ESPs, when used in
combination with mud-line boosting
pumps, have the potential to deliver the
best recovery factors, but poor reliability
and high intervention costs associated
with ESPs in subsea wells can negate the
value of those recovery gains. Mud-line
boosting pumps, by comparison, have
lower intervention costs and generally
better reliability than downhole ESPs.
The challenge, however, is selecting
the right solution to maximize recovery
in the most cost-effective way. To determine the potential improvement in recovery, a production performance analysis
was performed for a number of ESP and
mud-line pump configurations for Paleogene field developments. The analysis
included an economic performance evaluation to compare the value of the increased recoverable reserves against the
added expenses for the hardware, equipment installation, annual operational costs,
and intervention and maintenance costs
over a 30-year field life.
Field Modeling, Economics
Paleogene reservoir characteristics
were used to develop a model in a dynamic
simulation multiphase software package
to compare the recovery performance of
the base-line natural flow of subsea wells
against the performance of the wells with
one of five secondary recovery
configurations:
* A single six-megawatt subsea multiphase pump (MPP);
* A single three-mw subsea multiphase pump;
* Two three-mw subsea MPPs operating in parallel;
* A single tubing-deployed 1,200horsepower ESP per well; and
* A single tubing-deployed 1,200horsepower ESP per well, supplying a
single three-mw subsea single-phase pump
(SPP).
The reservoir characteristics were coupled with two field development scenarios
and a base-line natural production flow
for the life of the field was established
for each scenario. The ESPs were set at
10,500 feet below the mud line in both
scenarios.
The first secondary recovery field development scenario was based on two
subsea wells, each drilled to 25,000 feet
true vertical depth below mean sea level
(MSL). The flow from the two wells was
comingled and fed into a single 7¾-inch
inside diameter flowline tied back 15
miles to a topsides facility in 10,000 feet
of water.
The hydrocarbon fluid properties used
for the analysis were 25 degrees API
gravity with a gas-to-oil ratio of 350
cubic feet/barrel. The initial reservoir
pressure and temperature were 21,000
psia and 220 degrees Fahrenheit, respectively. The sensitivity of the secondary
recovery configurations to productivity
index (PI) were evaluated, where a lowPI case (1.5 barrels a day/psi) was compared with a high-PI case (3.0 barrels a
day/psi). Maximum drawdown was assumed to be 10,000 psi and the minimum
flowing bottom-hole pressure (FBHP)
was assumed to be 6,000 psi.
The run life used for the ESPs and
mud-line boosting pumps was three and
five years, respectively. For simplicity,
the only deferred production considered
was that which occurred during the actual
intervention operations. The intervention
vessel was assumed to be available on
location immediately following any equipment failure with a spare ESP, MPP or
SPP ready for deployment as needed.
Estimated capital expenditures included
the topsides equipment, subsea power
distribution equipment, incremental initial
installation costs for all secondary recovery
equipment, and spares. Operating expenditures included power generation costs,
topsides maintenance for power distribution equipment, spares storage and
maintenance, equipment refurbishment,
and intervention costs.
The ESP intervention duration was
assumed to be 30 days and require a
mobile offshore drilling unit. MPP or
SPP intervention was assumed to take
14 days and require a Category A or
multiservice vessel. For the economic
evaluation, a discount factor of 12 percent
was used, with a flat inflation rate of 4
percent annually and an $80 a barrel oil
price.
Two-Well Scenario Results
The six-mw pump exhibited the highest
NPV for the low-PI case. Although it
can support more than two wells, it was
not able to take advantage of its full
power capacity because of reservoir constraints and the low number of wells.
Two three-mw pumps operating in parallel
resulted in a lower NPV then a single
six-mw pump, given the slightly higher
APRIL 2015 113
American Oil and Gas Reporter - April 2015
Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2015
Contents
American Oil and Gas Reporter - April 2015 - Cover1
American Oil and Gas Reporter - April 2015 - Cover2
American Oil and Gas Reporter - April 2015 - Contents
American Oil and Gas Reporter - April 2015 - 4
American Oil and Gas Reporter - April 2015 - 5
American Oil and Gas Reporter - April 2015 - 6
American Oil and Gas Reporter - April 2015 - 7
American Oil and Gas Reporter - April 2015 - 8
American Oil and Gas Reporter - April 2015 - 9
American Oil and Gas Reporter - April 2015 - 10
American Oil and Gas Reporter - April 2015 - 11
American Oil and Gas Reporter - April 2015 - 12
American Oil and Gas Reporter - April 2015 - 13
American Oil and Gas Reporter - April 2015 - 14
American Oil and Gas Reporter - April 2015 - 15
American Oil and Gas Reporter - April 2015 - 16
American Oil and Gas Reporter - April 2015 - 17
American Oil and Gas Reporter - April 2015 - 18
American Oil and Gas Reporter - April 2015 - 19
American Oil and Gas Reporter - April 2015 - 20
American Oil and Gas Reporter - April 2015 - 21
American Oil and Gas Reporter - April 2015 - 22
American Oil and Gas Reporter - April 2015 - 23
American Oil and Gas Reporter - April 2015 - 24
American Oil and Gas Reporter - April 2015 - 25
American Oil and Gas Reporter - April 2015 - 26
American Oil and Gas Reporter - April 2015 - 27
American Oil and Gas Reporter - April 2015 - 28
American Oil and Gas Reporter - April 2015 - 29
American Oil and Gas Reporter - April 2015 - 30
American Oil and Gas Reporter - April 2015 - 31
American Oil and Gas Reporter - April 2015 - 32
American Oil and Gas Reporter - April 2015 - 33
American Oil and Gas Reporter - April 2015 - 34
American Oil and Gas Reporter - April 2015 - 35
American Oil and Gas Reporter - April 2015 - 36
American Oil and Gas Reporter - April 2015 - 37
American Oil and Gas Reporter - April 2015 - 38
American Oil and Gas Reporter - April 2015 - 39
American Oil and Gas Reporter - April 2015 - 40
American Oil and Gas Reporter - April 2015 - 41
American Oil and Gas Reporter - April 2015 - 42
American Oil and Gas Reporter - April 2015 - 43
American Oil and Gas Reporter - April 2015 - 44
American Oil and Gas Reporter - April 2015 - 45
American Oil and Gas Reporter - April 2015 - 46
American Oil and Gas Reporter - April 2015 - 47
American Oil and Gas Reporter - April 2015 - 48
American Oil and Gas Reporter - April 2015 - 49
American Oil and Gas Reporter - April 2015 - 50
American Oil and Gas Reporter - April 2015 - 51
American Oil and Gas Reporter - April 2015 - 52
American Oil and Gas Reporter - April 2015 - 53
American Oil and Gas Reporter - April 2015 - 54
American Oil and Gas Reporter - April 2015 - 55
American Oil and Gas Reporter - April 2015 - 56
American Oil and Gas Reporter - April 2015 - 57
American Oil and Gas Reporter - April 2015 - 58
American Oil and Gas Reporter - April 2015 - 59
American Oil and Gas Reporter - April 2015 - 60
American Oil and Gas Reporter - April 2015 - 61
American Oil and Gas Reporter - April 2015 - 62
American Oil and Gas Reporter - April 2015 - 63
American Oil and Gas Reporter - April 2015 - 64
American Oil and Gas Reporter - April 2015 - 65
American Oil and Gas Reporter - April 2015 - 66
American Oil and Gas Reporter - April 2015 - 67
American Oil and Gas Reporter - April 2015 - 68
American Oil and Gas Reporter - April 2015 - 69
American Oil and Gas Reporter - April 2015 - 70
American Oil and Gas Reporter - April 2015 - 71
American Oil and Gas Reporter - April 2015 - 72
American Oil and Gas Reporter - April 2015 - 73
American Oil and Gas Reporter - April 2015 - 74
American Oil and Gas Reporter - April 2015 - 75
American Oil and Gas Reporter - April 2015 - 76
American Oil and Gas Reporter - April 2015 - 77
American Oil and Gas Reporter - April 2015 - 78
American Oil and Gas Reporter - April 2015 - 79
American Oil and Gas Reporter - April 2015 - 80
American Oil and Gas Reporter - April 2015 - 81
American Oil and Gas Reporter - April 2015 - 82
American Oil and Gas Reporter - April 2015 - 83
American Oil and Gas Reporter - April 2015 - 84
American Oil and Gas Reporter - April 2015 - 85
American Oil and Gas Reporter - April 2015 - 86
American Oil and Gas Reporter - April 2015 - 87
American Oil and Gas Reporter - April 2015 - 88
American Oil and Gas Reporter - April 2015 - 89
American Oil and Gas Reporter - April 2015 - 90
American Oil and Gas Reporter - April 2015 - 91
American Oil and Gas Reporter - April 2015 - 92
American Oil and Gas Reporter - April 2015 - 93
American Oil and Gas Reporter - April 2015 - 94
American Oil and Gas Reporter - April 2015 - 95
American Oil and Gas Reporter - April 2015 - 96
American Oil and Gas Reporter - April 2015 - 97
American Oil and Gas Reporter - April 2015 - 98
American Oil and Gas Reporter - April 2015 - 99
American Oil and Gas Reporter - April 2015 - 100
American Oil and Gas Reporter - April 2015 - 101
American Oil and Gas Reporter - April 2015 - 102
American Oil and Gas Reporter - April 2015 - 103
American Oil and Gas Reporter - April 2015 - 104
American Oil and Gas Reporter - April 2015 - 105
American Oil and Gas Reporter - April 2015 - 106
American Oil and Gas Reporter - April 2015 - 107
American Oil and Gas Reporter - April 2015 - 108
American Oil and Gas Reporter - April 2015 - 109
American Oil and Gas Reporter - April 2015 - 110
American Oil and Gas Reporter - April 2015 - 111
American Oil and Gas Reporter - April 2015 - 112
American Oil and Gas Reporter - April 2015 - 113
American Oil and Gas Reporter - April 2015 - 114
American Oil and Gas Reporter - April 2015 - 115
American Oil and Gas Reporter - April 2015 - 116
American Oil and Gas Reporter - April 2015 - 117
American Oil and Gas Reporter - April 2015 - 118
American Oil and Gas Reporter - April 2015 - 119
American Oil and Gas Reporter - April 2015 - 120
American Oil and Gas Reporter - April 2015 - 121
American Oil and Gas Reporter - April 2015 - 122
American Oil and Gas Reporter - April 2015 - 123
American Oil and Gas Reporter - April 2015 - 124
American Oil and Gas Reporter - April 2015 - 125
American Oil and Gas Reporter - April 2015 - 126
American Oil and Gas Reporter - April 2015 - 127
American Oil and Gas Reporter - April 2015 - 128
American Oil and Gas Reporter - April 2015 - 129
American Oil and Gas Reporter - April 2015 - 130
American Oil and Gas Reporter - April 2015 - 131
American Oil and Gas Reporter - April 2015 - 132
American Oil and Gas Reporter - April 2015 - 133
American Oil and Gas Reporter - April 2015 - 134
American Oil and Gas Reporter - April 2015 - 135
American Oil and Gas Reporter - April 2015 - 136
American Oil and Gas Reporter - April 2015 - 137
American Oil and Gas Reporter - April 2015 - 138
American Oil and Gas Reporter - April 2015 - 139
American Oil and Gas Reporter - April 2015 - 140
American Oil and Gas Reporter - April 2015 - 141
American Oil and Gas Reporter - April 2015 - 142
American Oil and Gas Reporter - April 2015 - 143
American Oil and Gas Reporter - April 2015 - 144
American Oil and Gas Reporter - April 2015 - 145
American Oil and Gas Reporter - April 2015 - 146
American Oil and Gas Reporter - April 2015 - 147
American Oil and Gas Reporter - April 2015 - 148
American Oil and Gas Reporter - April 2015 - 149
American Oil and Gas Reporter - April 2015 - 150
American Oil and Gas Reporter - April 2015 - 151
American Oil and Gas Reporter - April 2015 - 152
American Oil and Gas Reporter - April 2015 - 153
American Oil and Gas Reporter - April 2015 - 154
American Oil and Gas Reporter - April 2015 - 155
American Oil and Gas Reporter - April 2015 - 156
American Oil and Gas Reporter - April 2015 - 157
American Oil and Gas Reporter - April 2015 - 158
American Oil and Gas Reporter - April 2015 - 159
American Oil and Gas Reporter - April 2015 - 160
American Oil and Gas Reporter - April 2015 - 161
American Oil and Gas Reporter - April 2015 - 162
American Oil and Gas Reporter - April 2015 - 163
American Oil and Gas Reporter - April 2015 - 164
American Oil and Gas Reporter - April 2015 - 165
American Oil and Gas Reporter - April 2015 - 166
American Oil and Gas Reporter - April 2015 - 167
American Oil and Gas Reporter - April 2015 - 168
American Oil and Gas Reporter - April 2015 - 169
American Oil and Gas Reporter - April 2015 - 170
American Oil and Gas Reporter - April 2015 - 171
American Oil and Gas Reporter - April 2015 - 172
American Oil and Gas Reporter - April 2015 - 173
American Oil and Gas Reporter - April 2015 - 174
American Oil and Gas Reporter - April 2015 - 175
American Oil and Gas Reporter - April 2015 - 176
American Oil and Gas Reporter - April 2015 - 177
American Oil and Gas Reporter - April 2015 - 178
American Oil and Gas Reporter - April 2015 - 179
American Oil and Gas Reporter - April 2015 - 180
American Oil and Gas Reporter - April 2015 - 181
American Oil and Gas Reporter - April 2015 - 182
American Oil and Gas Reporter - April 2015 - 183
American Oil and Gas Reporter - April 2015 - 184
American Oil and Gas Reporter - April 2015 - 185
American Oil and Gas Reporter - April 2015 - 186
American Oil and Gas Reporter - April 2015 - 187
American Oil and Gas Reporter - April 2015 - 188
American Oil and Gas Reporter - April 2015 - 189
American Oil and Gas Reporter - April 2015 - 190
American Oil and Gas Reporter - April 2015 - 191
American Oil and Gas Reporter - April 2015 - 192
American Oil and Gas Reporter - April 2015 - 193
American Oil and Gas Reporter - April 2015 - 194
American Oil and Gas Reporter - April 2015 - Cover3
American Oil and Gas Reporter - April 2015 - Cover4
http://staging.nxtbook.com/nxtbooks/aogr/201702/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201701/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201612/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201611/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201610/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2016_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201609/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201608/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201607/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201606/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201605/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201604/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201603/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201602/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201601/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201512/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201511/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201510/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201509/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201508/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201507/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201506/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201505/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201504/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201503/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201502/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201501/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201412/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201411/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201410/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201409/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2014_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201408/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201407/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201406/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201405/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201404/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201403/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201402/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201401/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201312/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201311/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201310/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201309/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201308/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201307/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201306/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201305/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201304/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201303/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201302/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201301/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201212/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201211/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201210/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201209/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/2012_pbios/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201208/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201207/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201206/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201205/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201204/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201203/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201202/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201201/stage.php
http://staging.nxtbook.com/nxtbooks/demo/aogr_clone/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201112/stage.php
https://www.nxtbookmedia.com