SPE 68675 Reservoir Management for Ultra-Thin Oil Columns Under Gas-Cap and Water Support: Attaka Field

Examples
D.T. Vo, Renas S. Witjaksana, Sukerim Waryan, Agung Dharmawan, Iwan Harmawan, Unocal Indonesia Company, and Masato Okuno, Inpex

Copyright 2001, Society of Petroleum Engineers Inc. This paper was prepared for presentation at the SPE Asia Pacific Oil and Gas Conference and Exhibition held in Jakarta, Indonesia, 1719 April 2001. This paper was selected for presentation by an SPE Program Committee following review of information contained in an abstract submitted by the author(s). Contents of the paper, as presented, have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material, as presented, does not necessarily reflect any position of the Society of Petroleum Engineers, its officers, or members. Papers presented at SPE meetings are subject to publication review by Editorial Committees of the Society of Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this paper for commercial purposes without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O. Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.

selecting this type of completion, as other alternative methods also deserve to be considered. Introduction Mature oil reservoirs with gas-cap and water support have become the prime targets for horizontal drilling by many operators in the last fifteen years. Operating in East Kalimantan, Unocal Indonesia Co. (UIC) has extensively used horizontal applications in developing their mature fields by completing more than 100 wells since 1996. Although horizontal wells have proven their performance to develop thin oil bands by providing better oil recovery efficiency, the remaining, ultra-thin oil pays (e.g. less than 20 ft) in these reservoirs that need to be further developed, pose higher risk with horizontal drilling. As expected, recovery naturally becomes less with thinner oil columns, horizontal drilling becomes more costly as it requires more accurate geological interpretation and sophisticated equipment that would have negative effect on the project NPV's. To alleviate risk and improve economics, feasible options to be considered are (i) short- to medium-radius horizontal completion for single zones, or (ii) conventional completion penetrating several stacked pays. The paper presents a case study to demonstrate lessons learned from exploiting ultra-thin oil bands under 20 ft in the Attaka field and its plan to continue developing these remaining oil columns using horizontal technology. The paper first describes the Attaka field and discusses its recent horizontal drilling program and results based on performance data from 13 horizontal wells drilled in various ultra-thin sands. Reservoir management issues involved in drilling and operating these wells are briefly reviewed. To support future plan of development, a reservoir model based on field data is used as a basis to examine various completion strategies. Effects of reservoir and well conditions on recovery are noted from results of many sensitivity runs that examine variations in well length, well placement standoff to fluid contacts, tubing size, initial rate, and effect of gas lift. Reserves and economic evaluations (NPV) are then used as guidelines for the future development plan of the remaining ultra-thin oil columns in the field.

Abstract Exploitation of ultra-thin oil columns under gas cap and water support is challenging since both gas and water coning can seriously curtail oil recovery. Horizontal wells have shown to alleviate some of this problem as they allow for less drawdown and hence reduce coning for better recovery efficiency. Although the industry has shown horizontal drilling cost continues to be lowered, economics is still a major issue in exploiting ultra-thin oil bands using horizontal completion. This paper presents a case study showing lessons learned from managing reservoirs with ultra-thin oil bands with less than 20 ft and sandwiched between gas cap and bottom/edge aquifer. Actual data from a field characterized by stacked pays of fluvial and deltaic channel sands in the Mahakam Delta complex are demonstrated. Subject to long-term production, the originally thick oil columns in these reservoirs have now become thinner, yet carry significant reserves to be prudently further developed. Issues involved in reservoir management such as well surveillance, well planning and prognosis, operating while drilling and producing, and longterm development plans are discussed. Reservoir modeling is shown to be the guide not only for well planning but also for well operations as it is used to select well type and completion strategy, optimize well production and prepare for continuous annual operating plan. The vast well performance database provided from the paper shows horizontal drilling continues to be the main vehicle to develop these ultra-thin oil bands. Care however needs to be taken to scrutinize the economics inherent in

D.T. VO, RENAS S. WITJAKSANA, SUKERIM WARYAN, AGUNG DHARMAWAN, IWAN HARMAWAN, AND MASATO OKUNO

SPE 68675

Attaka field and its recent horizontal drilling program As one of the major oil fields in the region, the Attaka field comprises massive stacked channel sandstones deposited in the ancient Mahakam Delta of the Kutei Basin, a known major petroleum province. The field is located about 25 kilometers northeast of the Mahakam Delta, offshore East Kalimantan (Fig. 1). The area closure of the field structure covers nearly 8000 acres (Fig. 2) with traps identified by a large roll-over anticline in combination with stratigraphic and fault features1. Spread over several thousand feet vertical, hydrocarbons are found in multi-layered sandstones deposited in deltaic to shallow marine environments during the Middle to Late Miocene ages (Fig. 3). UIC drilled and tested the discovery well Attaka #1A in 1970 at 11,330 Bopd. The first production started in 1972 at approximately 22,000 Bopd from ten wells. Oil production peaked at 120,000 Bopd in 1977 from 50 wells, gradually declined and currently production is maintained at about 25,000 Bopd by continuous infill drilling/redrilling and workovers (Fig. 4). Cumulative production as of October 2000 is 597.1 MMBo of oil and 1.29 Tcf of gas. The horizontal drilling in the field began in 1996 with primary targets of thin oil columns in the Shallow, Main Deltaic and Low Deltaic sands. These wells are designed to drain by-passed or isolated oil pockets of prolific quality with high permeability and porosity and under large gas cap and water leg. With thickness varying between 10 to 40 ft, the benefits of using horizontal wells in these sands are (i) to reduce coning, (ii) drain larger areas, (iii) and impose less drawdown to alleviate potential sand problems, particularly for the Shallow sequence. Performance lookback2 on data from the Attaka horizontal wells clearly show they provide larger drainage areas and volumes compared to that associated with contemporary conventional wells targeting the same pay zones. Results2 obtained from 24 Attaka wells show an average well of near 900-ft long recovers 670 MBo (28% recovery) by draining a 66-acre area of 25-ft oil column. Overall, with an average development cost at 1.7 $/bbl, the horizontal drilling program in the field is successful as it relies on an integrated team approach that plans and implements wells with the following reservoir management practices2: optimizing recovery and revenue by planning wells using reservoir modeling reducing risk by continuous reservoir surveillance to assess current fluid contacts due to dynamic fluid movement from production by using formation testing and saturation logging tools, recent well data, and reservoir models, etc. reconciling surveillance data with geological model by continuing calibration of reservoir models after new wells using simple plans for drilling and operating wells such as selection of landing point with minimum standoff below GOC, plan for TD point, implementing a simple well course by connecting landing and TD points, and operating under GOR control, etc.

Although successful as shown by the overall low development cost, detailed examination of results for development of oil columns under 20 ft shows an average near 900-ft well would recover about 380 MBo (27%) from draining a 54-acre area. These results are captured in Fig.5 where related actual well parameters are correlated against log normal distribution. With a development cost at 3.1 $/bbl, the exploitation of oil columns under 20 ft clearly presents a challenge and an important issue for the continuing future development of the remaining thinner oil columns in the field as they carry significant reserves. To further improve development cost by reducing risk and improving economics, options currently under consideration are to selectively implement short- to medium-radius horizontal completions for single zones, in combination with conventional completions for multi-zone stacked pays. In the following, the focus of the discussion is on the feasibility of short to medium-radius horizontal wells for future development plan. Reservoir modeling for planning completion strategy Oil and gas recovery from an ultra-thin oil column under gas cap and water support strongly depends on the oil column thickness, formation permeability, gas-cap size, aquifer strength, reservoir geometry, bed-dip magnitude, and oil viscosity2-4. Use of reservoir modeling to select a completion strategy (well placement, length, distance to fluid contacts, rate) and predict performance is essential. A sensitivity analysis to investigate the effect of well placement on oil recovery in an ultra-thin oil column (under 20 ft) with gas-cap and bottom-water support was performed. Using a reservoir model (Fig. 6) representing the field data (Appendix A), effects of completion placement in the oil column, well length, tubing size, use of gas lift and rate control on oil recovery are examined. The model includes a 45-acre drainage area of 20-ft oil column thickness at the well or near 18-ft average oil column over the area. In the following, results of more than 180 sensitivity runs are summarized and discussed. For simplicity, results presented are based on average responses condensed from many runs to represent a "likely" case associated with a particular scenario of well conditions. Effect of well placement in oil column. In general, results in Fig. 7 show that placing the well towards the middle of the oil band tends to give better recovery as early gas cap production (completion close to GOC) or water production (completion close to OWC) can be delayed. Consistent with results presented in Refs. 2-4 wherein the oil column is thicker (30-40 ft), results in Fig. 7 suggest the free gas volume in this case is large enough (m=1 Bcf/MMBo) to require a minimum well placement standoff against the gas cap for improving oil recovery. In practice, the GOC can be determined with certainty while approaching the sand, but the OWC is however not always known with certainty unless a pilot hole or recent logs from nearby wells are available. In this case, it is prudent to determine a minimal standoff for the landing point below the GOC (determined while approaching) and select the TD at certain standoff distance above the OWC (estimated ahead of

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RESERVOIR MANAGEMENT FOR ULTRA-THIN OIL COLUMNS UNDER GAS-CAP AND WATER SUPPORT: ATTAKA FIELD EXAMPLES

time by surveys or reservoir models) and plan for the well path accordingly. Effect of well length. Results in Fig. 7 also suggest that optimal lateral length for an oil column under 20 ft to drain a 50-acre area requires about 600-ft lateral. In practice, although the longer the well the better it performs, an excessively long well may pose higher geological and drilling risk as it may cross unexpected faults, stratigraphy or encounter potential mechanical problem with running long screens. It is also noticed that with high permeability and strong gas cap and water support, pressure drop in the reservoir and along the well is relatively small, a significant long well may not contribute a lot more than it should. In addition, since most pressure drop occurs at the heel of the well, it is prudent to avoid undulated well path as any "low" points along the well course may induce hydraulic flow stagnancy. Effect of tubing size and gas lift. Results in Fig. 8 show the smaller tubing gives better recovery due to better lifting efficiency especially when water production becomes dominant. This observation is consistent with whether gas lift was used or not. On average, results show incremental recovery of 3% for each tubing downsizing without using gas lift. The recovery difference becomes smaller (about 1% for each incremental tubing downsizing) when gas lift is used. Effect of initial rate. Although all cases show high rates (>1000 bopd) can be delivered at the beginning including the smaller tubing size cases, the key issue encountered with producing thin oil band is that early high offtake rate tends to cone gas earlier that could finally hurt recovery. It is prudent to operate wells with some GOR control measure especially at the beginning; for example, by less than 3 times the solution GOR as recommended by Ref. 2. Fig. 9, showing oil recovery decline with high GOR as observed from all simulation runs and actual performance data, reconfirms this practice. In addition, results from all cases show although initial production (IP) is high, average annual rate for the first year of production from ultra-thin oil column is typically lower than the early IP's. This further suggests the benefit of early control of excessive gas production to improve long-term recovery. Fig. 10 presents average annual rate and recovery over the life of a 600-ft well for various tubing sizes. Results show the effect of large tubing size has a small impact on accelerating production since wells with smaller tubing will catch up production within two years of production. In addition, ultimate recovery for wells with smaller tubing sizes tends to be higher after year four as its lifting effect is more efficient after water production becomes significant at the end. For all cases considered, average production life is about 4 years for 2-3/8" tubing, 3.5 years for 2-7/8" tubing and 3 years for 3-1/2" tubing. Economic implication. Results in Figs. 11-12 show the smaller tubings of 2-3/8" and 2-7/8'' generally give better recovery and NPV (@12%) than that of the 3-1/2'' tubing case in most horizontal laterals considered, using short- to mediumradius completion. The key assumption used in the economic evaluation shown in Fig. 12 is that the drilling and completion

cost for short- to medium-radius wells is expected to be lower than that of the conventional horizontal drilling (Appendix B). Fig. 12 also compares the data against the average NPV value (single solid point) obtained from the lookback on the 13 existing horizontal wells for oil columns less than 20 ft that were drilled by conventional horizontal technique and completed with 3-1/2'' tubing. Besides improving recovery and reducing drilling cost, the competitive economic figure for short- to medium-radius completion for thinner oil bands in part lies in the cost saving of using smaller 2-3/8" or 2-7/8'' tubings. Effect of oil column thickness on recovery and economics. It is expected that when oil column thickness gets too thin, it would be difficult to continue applying horizontal drilling for single zone in principle, concerning data control and cost efficiency as recovery can be low. Fig. 13 compares oil recovery for oil columns under 15 ft against that of thicker columns obtained from simulation results. Economic comparison in NPV's for three base cases is also presented (details shown in Appendix B). Relevant to stacked-pay reservoir setting in Attaka, multi-zone completion by conventional well is selectively considered as it deems more appropriate when oil column thickness becomes very thin (e.g. less than 10 ft or so) as results of Fig. 13 suggest. Plan for future development of ultra-thin oil columns Results from the lookback of existing horizontal wells targeting ultra-thin oil columns under 20 ft using conventional drilling suggest development cost could be further improved. Additional simulation results demonstrate that it is feasible to improve recovery and economics for ultra-thin oil columns under 20-ft using cost-effective short- to medium-radius drilling while maintaining recovery efficiency. In particular, built on operating experiences of many horizontal wells drilled, future plan for developing these types of thin oil bands would selectively consider drilling short- to medium-radius wells with the principal guidelines as follows: use reservoir model and surveillance for well planning depending on the situation encountered, first plan wells for around 600 ft, then modify to accommodate reservoir, mechanical and cost conditions depending on the gas-cap size, typically place wells in the top half of the oil column with a sufficient standoff below the GOC for the landing point plan for simple well course by simply connecting the landing point to TD and avoiding undulated well path complete wells open-hole with screens consider using smaller tubing sizes (2-3/8'' or 2-7/8'') use artificial lift (e.g. gas lift) for improving recovery take advantage of batch drilling for cost saving When oil columns encountered are less than 10 ft or so, other completion options may be considered for cost effectiveness; for examples, multi-zone stack-pay with conventional wells or even a possibility of short to medium-radius multi-laterals.

D.T. VO, RENAS S. WITJAKSANA, SUKERIM WARYAN, AGUNG DHARMAWAN, IWAN HARMAWAN, AND MASATO OKUNO

SPE 68675

Conclusions The objective of the paper is to offer ways to cost-effective develop ultra-thin oil columns under influence of gas cap and water production. Based on analysis of performance data from 13 existing wells in ultra-thin oil bands, reservoir modeling results, and operating experience, the study has examined options to further optimize development of the remaining ultra-thin oil columns in the Attaka field by considering shortto medium-radius completion for cost and recovery efficiency. In summary, the paper has captured the followings: It is possible to improve cost and maintain recovery efficiency by planning wells around 600 ft for oil column under 20 ft and drainage area around 50 acres. The use of small tubing and gas lift is essential to improving recovery efficiency and economics. Practical considerations during pre-well plan, while drilling and post-well operations are provided based on the drilling and operating experience of many horizontal wells completed in the field and the area. Acknowledgements We would like to thank Unocal Indonesia Company and Inpex for their support and permission to present this study. Special thanks are due to Jerry Bowen of UIC drilling department for providing well parameters and costs used in the economic evaluation for short- to medium-radius drilling & completion. Fruitful discussion with Mark Boehm, lead geologist of the UIC Attaka team, on the idea of planning short- to mediumradius wells is acknowledged. References 1. Zagalai, B.M., Houtzager, J.F., Mahadi, S., Partono, Y., and Goodwin, B.: "Reservoir Simulation Facilitates Synergism in Management of the Attaka Field," SPE 22352, presented at SPE International Meeting on Petroleum Engineering, Beijing, China (March 1992). 2. Vo, D.T., Sukerim, Dharmawan, A., Susilo, R., Wicaksana, R.: "Lookback on Performance of 50 Horizontal Wells Targeting Thin Oil Columns, Mahakam Delta, East Kalimantan," SPE 64385 presented at the SPE Asia-Pacific Conference and Exhibition, Brisbane, Australia, Oct.16-18, 2000. 3. Vo, D.T., Sukerim, Widjaja, D.R., Partono, Y.J., and Clark, R.T.: "Development of Thin Oil Columns Under Water Drive: Serang Field Examples," SPE54312 presented at the SPE Asia-Pacific Oil &Gas Conference & Exhibition, Jakarta, Indonesia, April 20-22, 1999. 4. Vo, D.T., Sukerim, Ivanowicz, M., Syahrani, Bouclin, D., Clark, R., Stites, J. and Partono, Y.: "Reservoir Modeling Assists Operations to Optimize Field Development: Serang Field, East Kalimantan," SPE59441 presented at the SPE Asia-Pacific Conference on Integrated Modelling for Asset Management, Yokohama, Japan, April 25-26, 2000.

Appendix A Data used in the simple model for completion strategy: Model area = 51 acres (= 1600 x 1400 ft2); Dip Angle=3o GOC @ 4340 ft and OWC @ 4360 ft ss Oil column of 20 ft underlain gas cap and overlain water leg Effective oil covered area = 45 acres Average oil column thickness over the area = 17.7 ft Oil column thickness at and around well = 20 ft Original fluid in place: OOIP = 1.16 MMSTBO; OGIP = 1.71 Bcf (including free gas = 1.18 Bcf; m = 1 Bcf/MMBo ) Initial pressure = 1750 psi @ 4345 ft; Temperature = 170o F Oil gravity = 40 oAPI; Gas gravity = 0.65 Oil FVF = 1.28 rb/stb; Solution GOR = 460 scf/stb; Oil viscosity = 0.46 cp Residual oil saturation = 0.3; Porosity = 0.3 Connate water saturation = 0.2; Critical gas saturation = 0.05 Sensitivity analysis Standoff completion from GOC: from 2.5 - 17.5-ft from GOC Initial oil rate: 1000, 2000, and 3000 STB/D Horizontal length from 200 to 1000 Tubing size: from 2-3/8 to 3-1/2 Gas lift application @ 500 Mscf/day Partial depletion effect: initial pressure varying from 1750 psi to 1275 psi Appendix B 1. Economic evaluation presented in Fig. 12 Base case for short- to medium-radius drilling & completion: Well length = 600 ft; Well depth = 6000 ft MD; 3-1/2 tubing Drilling and completion cost = 650 K$ Variation: 10K$ for each incremental 100 ft lateral 2$/ft for each incremental tubing down/up sizing Capital cost = 28% of total cost; Fixed annual operating costs 2. Economic evaluation for the average case from 13 existing wells (conventional horizontal drilling): Average length = 900 ft; Average recovery by well 380 MBo Average cost = 1.19 M$; Capital cost = 28% of total cost; Fixed annual operating costs All wells were completed with 3-1/2'' tubing and most were gas lifted. All evaluations are based on Indonesia's East Kalimantan PSC terms 3. Data used in Fig. 13 Model area = 51 acres; Dip angle = 3o Effective oil covered area = 45 acres Variation: OOIP = 812, 1160 and 1600 MBo Oil column thickness = 15, 20 and 30 ft Effective ave. oil column thickness = 12.4, 17.7 and 24.4 ft For the NPV(@12%) calculations: drilling and completion cost is fixed at 650K$ for the three cases presented

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RESERVOIR MANAGEMENT FOR ULTRA-THIN OIL COLUMNS UNDER GAS-CAP AND WATER SUPPORT: ATTAKA FIELD EXAMPLES

A TTA K AFIELD Reserve Sequence Status Todate Current U ltim ate U ltim ate A rea (M B O ) (% ) (M B O ) (% ) (A cres) A-6R D3ST1HZ Jun-98 55-5/ 4 L-D eltaics Active 124 11 261 23 39 A-5R D2ST3HZ Jun-98 51-1/ 4 L-D eltaics Active 243 21 330 29 45 B-7R DHZ Aug-98 44-5B/ 4 U-Deltaic Active 467 23 541 26 73 D-19HZ Apr-99 44-5A/ 4 U-Deltaic Active 323 19 450 27 67 L-21H Z Feb-97 44-1/ 4 U-Deltaic Active 479 24 570 29 55 F-5RD3H Z Jan-98 43-5B/4 U-Deltaic Active 218 21 250 25 52 FS-7RD2ST2HZ Apr-98 43-5B/ 3 U-Deltaic Active 118 21 131 24 19 B-14RD HZ Jul-98 42-0AB/ 4 U-Deltaic Active 679 43 690 44 70 L-29H Z O ct-97 42-0A/ 4 U-Deltaic SI 215 20 215 20 28 E-16HZ Feb-97 37-4B/ 4 Shallow SI 316 19 316 19 92 UA-8HZ Dec-98 40-0/ 4 Shallow Active 479 27 649 36 63 E-14HZ Jan-97 36-5/ 4 Shallow SI 120 14 120 14 39 UA-4HZ Dec-98 32-7A/ 4 Shallow Active 457 28 470 29 55 Averagehorizontal w ell 326 22 384 27 54 W ell Start Sand H (ft) 22 16 20 15 20 21 20 11 20 20 15 20 20 18 L I.P . (ft) (B O P D ) 700 326 700 285 920 2182 850 575 800 1299 750 949 600 980 1300 1809 500 659 1160 3158 900 2070 1140 1725 1000 1674 871 1361

Table 1. Summary of Attaka ultra-thin (< 20 ft) horizontal well performance analysis results

BRUNE MALAYSI

KALIMANTA

Fertilizer Plant LNG Plant Terminal

Attaka

Mahakam River
Refinery Balikpapan Terminal

Figure 1. Attaka Field Location, Offshore East Kalimantan, Indonesia

D.T. VO, RENAS S. WITJAKSANA, SUKERIM WARYAN, AGUNG DHARMAWAN, IWAN HARMAWAN, AND MASATO OKUNO

SPE 68675

Figure 2. Attaka Structure Map View

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RESERVOIR MANAGEMENT FOR ULTRA-THIN OIL COLUMNS UNDER GAS-CAP AND WATER SUPPORT: ATTAKA FIELD EXAMPLES

Figure 3. Stratigraphic column in Attaka field

Attaka Field: Impact of Horizontal Wells on Oil Production
60,000

50,000

40,000

BOPD

30,000

20,000

10,000

W orkover W ells Horizontal W ells Conventional W ells

Figure 4. Contribution of horizontal wells to the total Attaka oil production

D.T. VO, RENAS S. WITJAKSANA, SUKERIM WARYAN, AGUNG DHARMAWAN, IWAN HARMAWAN, AND MASATO OKUNO

SPE 68675

Attaka U ltra-thin H -w ell O il R ecovery D istribution

99.9 99.8 99.5 99 98 95

Attaka Ultra-Thin H-W ell Drainage Area Distribution

99.9 99.8 99.5 99 98 95

90 80 70 60 50 40 30 20 10 5 2 1 0.5 0.2 0.1 10000

Percent equal to or less than ...

90 80 70 60 50 40 30 20 10 5 2 1 0.5 0.2 10 100 D rainage area by w ell, acres 0.1 1000

10

100

1000

O il recov ery b y w ell, M B o

P1 73

P 10 145 S w anson's M ean S tatistical M ean A rithm etic Average

P 50 335 410 415 384

P 90 775

P 99 1536 P sm = 62.11 % P 23 = 207 P 77 = 543

P1 16

P10 27 Swanson's M ean Statistical M ean Arithm etic Average

P50 50 56 56 54

P90 93

P99 154 Psm = 59.25 % P23 = 35 P77 = 71

Attaka U ltra-Thin H -W ell Length D istribution

99.9 99.8

Attaka Ultra-Thin H-Well Oil Recovery Distribution

99.9 99.8 99.5
99.5 99 98 95 90 80 70 60 50 40 30 20 10 5 2 1 0.5 0.2 0.1 10000

99 98 95

Percent equal to or less than ...

90 80 70 60 50 40 30 20 10 5 2 1 0.5 0.2 0.1 100

100

1000 W ell leng th , ft

10 Oil Recovery by Well. %

P1 403

P 10 561 S w anson's M ean S tatistical M ean A rithm etic Average

P 50 842 884 885 871

P 90 1263

P 99 1759

P1 12

P10 17 Swanson's Mean Statistical Mean Arithmetic Average

P50 26 27 27 27

P90 39

P99 55 Psm = 56.31 % P23 = 20 P77 = 33

P sm = 56.14 % P 23 = 666 P 77 = 1064

Figure 5. Ultra-Thin (< 20ft) Attaka Horizontal Well Performance Against Log Normal Distribution

Percent equal to or less than ...

Percent equal to or less than ...

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RESERVOIR MANAGEMENT FOR ULTRA-THIN OIL COLUMNS UNDER GAS-CAP AND WATER SUPPORT: ATTAKA FIELD EXAMPLES

Gas cap Oil band

H-well

Water leg

Figure 6. Reservoir model useful for planning completion strategy in thin oil columns

30 25

Oil Recovery, %

20

15
2.5' from GOC

10

7.5' from GOC 12.5' from GOC

5 0 0 200 400 600

Well Length, ft

17.5' from GOC Vertical

800

1000

1200

Figure 7. Effect of completion placement standoff to GOC and well length on oil recovery of a 20-ft oil column

10

D.T. VO, RENAS S. WITJAKSANA, SUKERIM WARYAN, AGUNG DHARMAWAN, IWAN HARMAWAN, AND MASATO OKUNO SPE 68675

30 25 20

Oil Recovery, %

15 10 5 0 0 200 400 600

Well Length, ft 2 3/8 tubing 2 7/8 tubing 3 1/2 tubing Vertical

800

1000

1200

Figure 8. Effect of tubing size and well length on oil recovery of a 20-ft oil column (average for all cases of well placement standoff against GOC)

Sensitivity Simulation Data

Actual Data f rom 13 Wells

600 500 Cum. oil, MBo 400 300 200 100 0

0 1000 2000 3000 4000 5000

Cum. GOR, scf/stb

Figure 9. Effect of rate control for improved recovery by avoiding early gas cap production

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RESERVOIR MANAGEMENT FOR ULTRA-THIN OIL COLUMNS UNDER GAS-CAP AND WATER SUPPORT: ATTAKA FIELD EXAMPLES

11

Tub.2-3/8 Tub.2-3/8 500 Annual Oil Rate, Bopd 400 300 200

Tub.2-7/8 Tub.2-7/8

Tub.3-1/2 Tub.3-1/2 300

Rate Cum. oil

250 200 150 100 Cum. Oil, MBo

100 0 0 1 2 Year 3 4 5

50 0

Figure 10. Effect of tubing size and well length on well performance for a 20-ft oil column (L=600 ft completed in the top half, near middle of oil band; Tubing = 2-7/8 with gas lift)

Tub.2-3/8

Tub.2-7/8

Tub.3-1/2

400 Oil recovery, MBo 300 200 100 0 0 200 400 600 Well Length, ft 800 1000 1200

Figure 11. Effect of tubing size and well length on oil recovery for a 20-ft oil column

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D.T. VO, RENAS S. WITJAKSANA, SUKERIM WARYAN, AGUNG DHARMAWAN, IWAN HARMAWAN, AND MASATO OKUNO SPE 68675

Tub.2-3/8 0.4 NPV (@12%), MM$

Tub.2-7/8

Tub.3-1/2

Ave. NPV from existing wells

0.3

0.2

0.1

0 0 200 400 600 800 1000 1200

Well Length, ft

Figure 12. Effect of tubing size and well length on NPV (@12%) for ultra-thin oil column (under 20-ft) using short- to medium-radius horizontal completion

RF (15-ft col.) NPV (15-ft col.) 40

RF (20-ft col.) NPV (20-ft col.)

RF (30-ft col.) NPV (30-ft col.) 0.8

30

0.6 NPV (@12%), MM$

RF, %

20

0.4

10

0.2

0 0 200 400 600 800 1000 1200

0 1400

Well Length, ft

Figure 13. Effect of oil column thickness on recovery factor and NPV(@12%)