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Vol. 58 No. 10
October 2006
Penang, Malaysia, was the site of the SPE Applied Technology Workshop (ATW) on “Development of Marginal Offshore Fields” held 24–27 July. The ATW was attended by 76 participants, representing 42 different organizations from 13 countries. Following an opening address by Dato’ Koay Kar Huah, Executive Councillor, State Government of Penang, the stage was set for seven technical sessions by Ramlan Malek, General Manager–Petroleum Resource Development for PETRONAS, with his keynote speech “Opportunities and Challenges of Marginal Field Development in Malaysia.”
Dato' Koay Kar Huah
The following points were captured during the technical sessions.
Commercial Formulas for Economic Understanding, Risk Protection, and Value Gain. In the past, Malaysia adopted a volume-based commercial arrangement for production-sharing contracts (PSCs). With smaller discoveries, fluctuating oil prices, and uncertainties in costs, PETRONAS introduced a profitability-based commercial arrangement through revenue-over-cost PSCs. A case study was presented to demonstrate that such a change in commercial arrangement can improve the economics of small-field development significantly.
Managing Commodities Price Risk for Marginal Petroleum Projects. There are a number of ways to manage commodity prices for marginal petroleum projects, including insurance and hedging. Oil-price projection is normally lower than the actual oil prices.
Rapid Oil Development (ROD). ROD is one of the tools available to quickly monetize stranded small oil fields that are isolated from existing infrastructure. Facility deployment can be achieved as quickly as 6 to 9 months. ROD needs as little as 2 to 3 million bbl of oil to make it attractive. Such a concept can prove the reservoir characteristics and volume earlier.
Innovative Facilities Solutions To Reduce Capital and Operating Costs. Presentations and discussion took place on these topics: “Implementation of Innovative Multiphase Boosting and Production Technologies for Marginal Offshore Fields,” “Relocateable Topsides,” and “Seamless Fast Tracking of Engineering, Procurement, Installation, and Commissioning Projects for Marginal Offshore Fields.”
East Belumut Development-Well Completion Design and Issues. A case study on the background to the above field development and details on the reservoir and fluid characteristics was presented. The need for extended-reach wells, the low rock strength, thin oil column, high viscosity crude, gas cap, and underlying water all combine to make the development complex and marginal.
The currently proposed sandface-completion design incorporates standalone sand screens with inflow/pressure-control devices, swell packers, and centralizers for management of potential sand-production problems and to increase production control along the length of the screens. The upper completion is composed of 3½-in. tubing with gas lift mandrels and a subsurface safety valve. The operation is relatively simple, with the tubing stabbed into the liner/sand-screen polished-bore receptacle and no production packer.
Following the presentation, general discussion took place on the various completion philosophies. Questions on the design process and the rationale behind the selection of swell packers, standalone sand screens, and flow-restriction devices were answered.
Ramlan Malek
Novel Wells for Increased Production Rates, Improved Recovery, and Reduced Cost. There was a general presentation on the progress of well designs and capabilities over the last 40 years, covering the types of wells that have been drilled and the technologies that have been implemented. In closing, the question, “Could any of the well concepts applied today be classified as novel?” was posed.
General discussion centered on this question, with the consensus being that the wells and technologies failed to meet the definition of novel (i.e., new and not resembling something formerly known or used). Discussion also covered factors blocking the development of truly novel or innovative technologies. The consensus was that conservatism and fear of failure appear to be the major restrictions.
Swell Packers—Game-Changer Technology. A technical summary of the packer technology and an outline of several case studies were presented. The packers provide isolation by means of swelling that occurs when the packer element comes into contact with hydrocarbons. The hydrocarbon molecules are absorbed into the rubber but do not degrade the molecular bonds between the rubber molecules. The rubber can be considered to be a cross-linked oil, and its properties are carefully selected to be similar thermodynamically to the hydrocarbon with which they will come in contact. The attraction between the molecules causes the molecular structure of the packer element to stretch, allowing the oil to enter the structure. Swelling can be as great as 400% by volume, depending on fluid and elastomer properties.
The swelling is homogeneous along the length of the packer and results in the reduction of the rubber’s mechanical properties, allowing it to conform to irregular hole shapes and allowing for flexibility in placement. While gas-based applications are less common, the technology is no less applicable for this environment than for oil.
The seven-member Pro-gram Com-mittee was co--chaired by Mazuin Ismail, Senior Manager–Small Field Development Dept., PETRONAS, and Mohamed Hashem, Senior Staff Petrophysical Engineer, Shell Intl. E&P. Committee members included Alex Alexandrou, Core Laboratories; Barry Goodin, Newfield Peninsular Malaysia Inc.; Larry Holloway, Atwood Oceanics; Abdul Khalid Jaafar, PETRONAS Carigali Sdn. Bhd.; and Nick Muecke, The Peak Group (Asia Pacific).
