Geothermal Resources Council Transactions,Vol.

26,September 22-25,2002

Olkaria 111 Field Development

Hagen Hole and Uri Kaplan2
Geothermal Consultants New Zealand Ltd.
20RMAT International, Inc.

1985. Olkaria I is operated by the Kenya Electricity Generating

Company Ltd. (KenGen) {previously Kenya Power Company
(KPC)}, who are also currently developing the 2 x 32 MWe
Olkaria I1 project (Northeast Olkaria), which lies immediately north of Olkaria I and extends to within 2 km of the northeast boundary of the Olkaria 111concession.
In July 1996, in an effort to develop the current power generation potential of Kenya, the Government of Kenya (GOK)
conducted an international tender for a build, own and operate
contract (BOO) geothermal power facility within the Olkaria
111area as described above.
In November 1998, the Olkaria 111tender was awarded to
ORMAT International, Inc. and ORMAT, through OrPower 4
as a special purpose company for the project, entered into a 20
year Power Purchase Agreement (PPA) with Kenya Power
and Lighting Company (KPLC), Kenyas sole electricity distributor. The Olkaria 111project consists of two phases.
Phase I, which has been already completed, involved the
construction of a 13.5 MW plant, which was constructed on a
fast track to provide early generation and long term well flow
data for on-going resource assessment. Phase I1 is the expansion to the full technically feasibleplant capacity of the resource.
Under the PPA, KPLC is required to make capacity and energy payments to ORMAT, based on prices that were fixed in
ORMATS economic bidding proposal under the RFP.
An integral component of Phase I1 was a resource assessment study which included a 3-dimensional numerical model
of the Olkaria III field. This study was a combined effort involving the leading geothermal groups PB-Power of New
Zealand, Orkustofnun of Iceland and GeothermEx of the USA.
In addition, KenGen (the Kenya Electricity Generating Company Ltd.) supplied a significant amount of information regarding the Olkaria 111 field and have contributed to the project in
conducting well testing, data review and interpretation, as well
as providing other professional services. The resource assessment study was conducted in parallel with the drilling of new
wells with new information gathered during drilling and testing
of these wells being incorporated into the resource models as
well as being used as a tool for re-calibration of the model. The

Keywords
Kenya, Olkaria Ill, %dimensional numerical model, early
generation plant, ORMAT Energy Converter

ABSTRACT
The Olkaria 111geothermal project is the first private geothermal project in Kenya. The field development of the project
was managed by ORMAT geothermal group and included flow
testing of wells drilled in the past by a subsidiary of the Kenya
National ElectricityAuthority - Kenya Power Company (KPC);
field analysis including a three-dimensionalnumerical simulation model of the reservoir and the successful drilling of nine
new wells. The field development is a combined effort of
ORMAT and some of the leading geothermalengineering groups
worldwide.
In parallel with the field development,ORMAT constructed
an early generation power plant based on binary type
ORMAT@Energy Converters (OECs) which, in addition to the
generation and sale of electricity at an early stage of the project,
has enabled testing of old and new wells for an extended period
of time. This has allowed for on-going and continuous updating
of the field parameters during the conceptual design and detailed engineering phases of the project.

Introduction
OrPower 4, a special purpose project company, has secured
the right to develop and operate the Olkaria 111geothermal development concession within the Rift Valley in Kenya. This
concession has an area of approximately 12.4 km2 and encompasses the West Olkaria geothermal resource which was first
confiied to exist with the drilling of exploration well OW301 in 1983.
The Olkaria 111(West Olkaria) area lies 3 km to the west
of the 45 MWe Olkaria I (Olkaria East) geothermal development area where the first 15 MWe unit came on line in June
1981 and the third and final unit started operation in March
561

Hole and Kaplan

(KenGen - formerly KPC) and PB Power, GENZL Division,

the tasks of developing a conceptual model and a development
strategy for the Olkaria 111 Concession area.
The resource conceptual models developed by these two
groups, which were both based on the same data collected from
Wells Drilled Prior to ORMAT Involvement
the original KPC exploration program, were similar and identified a shallower (1500 - 800 masl) 2-phase zone with good
The development of Olkaria I11geothermal field was started
horizontal permeability, and centred in the eastern half of the
by KenGen in 1983 and 9 wells were drilled to depths of 1900
111Concession area. The temperatures in this zone were
Olkaria
to 2500 meters within the concession area by 1991. These are
generally
indicated to be in the 220 - 240C range.
vertical wells, drilled with water, aerated water and in some
The
models
also postulated the existence of a deep high temcases mud. The permeability of some of the wells is relatively
perature
reservoir,
from which fluids upflow in the centre of the
low and in the case of well OW-305 skin damage is evident as a
concession area to feed the shallower 2-phase system. The deep
result of using mud as drilling fluid within the production zone.
reservoir fluids, as indicated from samples from Well OW-305,
Only wells OW-30l,OW-303A (now abandoned) and OW-305
are neutral pH, sodium chloride (530 ppm chloride) with a very
were clearly within the main productive reservoir. The other
low gas content and indicated temperature of around 320C.
wells that lie close to the concession borders, are significantly
The system is predominantly bounded on the east by the
cooler than the more central wells and some have temperature
two
parallel north-south trending fracture zones - the Narasha
inversions that indicate they are in outflow or cold water inflow
Fracture
zone, and the 01 Olbutot Fracture zone. It is sugareas. Of these marginal wells OW-302 and OW-401 have some
gested
that
the zone between these two north-south fracture zones
useful discharge (well OW-302 is cyclic) and connecting them
acts
as
a
conduit
at deeper levels for cooler north to south fluid
to the power plant is in question.
as OW-401, OW-202 and OW-203 indicate
flow.
Wells
such
In 1998 OrPower 4 initiated retesting of the producing wells
these cooler fluids at depth and certainly indicate the eastern
OW-301,OW-302,0W-305 and OW-401 in order to study the
limits to the West Olkaria reservoir.
present characteristics of the wells and changes in the producNo such physical boundary exists to the west, however protivity since the time they were drilled and initially tested. The
duction from the western exploration wells show extreme levels
test results formed basis of the design of the early generation
of non-condensable gases (predominantly C02), suggesting that
plant and were used for the field analysis and building of the
production derived from wells drilled within the western half (west
three dimensional numerical model. Table 1 summarizes the
of
Well OW-301) would probably be uneconomic (see Table 2).
test results of the 4 tested wells.
The C02 concentrations measured during the initial production
tests of the western exploration wells within the
Table 1. Flow test results.
Olkaria LII concession area were as follows:
Well No.
WHP
Mass
Water
Steam
Enthalpy
Regional west to east, and north to south hydroPower
(Bara)
(fir)
(fir)
(fir)
(HAP) (MWe)
logical gradients drive the geothermal fluids to the
OW-30 I
6.4
100.3
50.1
43. I
I647
4.8
east, and to a lesser extent to the south. The fluids
43.9
I597
97.7
47. I
OW-30 1
9.2
4-9
in the shallow reservoir are high enthalpy and 2OW-30 I
11.3
96.4
45.4
44.4
1612
49
phase,
which condense to hot liquid in the more dis(7.4)
(105.4)
(46.4)
(49. I )
(1665)
(5.3)
OW-30 1
37.10
11.85
1 I08
1.32
tant outflow zones. The shallow reservoir pressure
6.56
53.40
OW-302
OW-302
7.79
39.05
1 I62
1.07
corresponds to a water table at about 1500 - 1700
26. I6
9.65
OW-305
(3.13)
(29.6)
( 1 1.1)
( I 6.7)
( 1 830)
masl or about 400 - 600 m depth. This significant
OW-305
3.82
26.5
7.3
16.5
2121
OW-305 5.66(4.94)
20.9(2 1.3)
7.4(5.0)
12.3( 15.3) 1886(2149)
.4
level of under-pressure, relative to the surface sugOW-305
9.4(8.73)
26.0(21.7)
7.6(5.8
16.9(14.7)
2013(207 I
I .9( I .6)
gested high pressure losses will be incurred by liqOW-40 1
(4.59)
(76.7)
(53.1)
( I 7.3)
( I 114)
uid dominated, lower enthalpy fluids travelling up
OW-40 1
4.67
62.7
46.4
10.9
1045
the well bore.
Figure I indicates the extent of the shallow reservoir and the top of the deep reservoir as postulated by the conConceptual Model
ceptual models.
The Olkaria 111 Concession area is located centrally within
The conceptual models indicated temperatures at 200 masl
the West Olkaria area which may be broadly defined as that
(typical well depth of around 1800 m) range between 230 to
area west of the 01 Olbutot Fracture Zone within the Greater
320C with the highest temperatures occurring in well OW-305
Olkaria Geothermal Resource area. West Olkaria was the subTable 2. C02 Concentrations of Western Wells.
ject of a series of geoscientific exploration surveys which were
carried out during the late 1970s and early 198Os, and of an
Weight % C02
exploration drilling program which was carried out between
Well
Date
Measured
in steam
Enthalw k l k g
(5 bara)
1983 and 1994. This exploration program was executed by the
then Kenya Power Company (KPC).
2 1.4.99
1572
16
OW-30 1
18.6.92
2212
43.9
OW-304D
During the first half of 1999 ORMAT Industries Ltd. asI800
64
2.12.98
OW-308
signed both the Kenya Electricity Generating Company Ltd.
results of this study allowed for a decision on the power plant
capacity target to form the basis for OrPower 4s obligation in
the Power Purchase Agreement with the Government of Kenya.

562

Hole and Kaplan

tion of drilling activities to supply the

power
plant steam and brine requireLegend
ment. The PPA contract with (GOK)
wells
calls for field capacity capable of sup/ Roads
plying 120% of plant requirements to
/ Faults
allow for degradation of well producFracture
tion and well shut-down for maintef
Eruptive
nance.
Warm
The drilling approach has been to
drill from a small number of well pads
0 Probable
in order to minimize the surface disE:kion
Are
turbance. Olkaria I11 is located within
a national park and is home to many
/ Kongoni
animals. One well on each pad is a vertical well, while the others are direc0
500
1000
tional with a lateral target distance of
at least 300 m to minimize interference.
ORPOWER
The new well drilling program
Olkaria
called
for drilling with foam or aerated
Geothermal
water only as drilling fluid once drilling fluid circulation had been lost, and
in particular within the production section of each well.
It is evident that as a result of this directional and low density drilling fluid
program, along with comprehensivenumerical modeling and analysis, that on average, better well productivity has been achieved
compared to wells drilled previously within the greater Olkaria
system.
During the period of February 2000 to March 2001 five exploration/production wells were drilled, completed, and tested,
satisfying the primary Phase I objectives. In addition to these
primary objectives, secondary objectives were to prove the extent of the identified shallow 2-phase production zone; and to
drill beyond this shallow zone to identify the postulated deep
reservoir.

I nratinn F Im\

Figure 1. Shallow and Deep Reservoirs.

in the centre of the eastern half of the concession area. The exploration wells in the Concession area (other than well OW401) generally indicate increasing temperature with depth, with
near isothermal conditions through the shallow reservoir zone
(1500 - 800 masl) indicating good vertical permeability. However, the temperature gradients below this depth range are typically conductive suggesting that the deeper zone permeabilities
are not high.
Geothermal fluids from the deep, high temperature reservoir
zone rise in the centre of the eastern half of the Concession area,
through limited permeability, into the shallower reservoir which
has good vertical and horizontal permeWest
ability. The models suggested good 225001
phase high enthalpy production would
be obtained from wells drilled into the
2000
zone centred on this postulated upflow.
Figure 2 presents a summary crosssection through the conceptual model.
1500

Drilling
New Wells
Phase I in the well drilling program
was commenced in February 2000, utilizing Nabors Drilling International
Limited of USA as drilling contractor,
with the drilling of five new wells as
part of the field appraisal program as
defined by the tender issued by the
Government of Kenya (GOK), followed by Phase I1 drilling, the comple-

East

1000

500

-500
I

192000

192500

193000

193500

194000

194500

195000 195500
Location E (m)

196000

196500

Figure 2. Schematic Cross-section Through West Olkaria.

5 63

197w)O

197500

191

Hole and Kaplan

occurred. A range of discharge

WHPs were then tested, each
for a period of around 5 to 7
days, allowing a well discharge
characteristic to be plotted. A
summary of the production
discharge data produced from
these tests is presented in Figure 4.

Conclusion
The Olkaria III field development program met all its
planned goals as far as budget
and timetable were concerned.
The average productivity
achieved from each of the
wells exceeded initial expectations and as a result a reduced
number of wells were required
to be drilled to support the
power plant as planned.
It is considered that the primary reasons for the better
than expected results were
~ombiningof pe~odicallyupdated the field modeling with
good well planning and good well drilling programming and
management,This successful field developmenthas been a combined effort by ORMAT and some of the leading engineering
groups in the geothermal world: PB power of New Zealand,
Orkostufnon of Iceland and GeothermEx of the USA, as well
as the geothermal experts in various disciplines of KenGen of
Kenya.

LoceUon E (m)

Figure 3. Olkaria 111 Well Locations.

During the period March 2001 to March 2002, four additional wells were drilled, completed and tested, and two wells
were commenced but not completed. See Figure 3 for well locations.
The production success rate of the wells was far in excess
of expectations,thus allowing termination of the drilling operations in March 2002.
Each well was i n i t i ~ l ydischarged
vertically for a few hours to clear cuttings
Proven Indiaative Capacity to Date -with 1st order NCO Correation
to 4 April 2002
Tested Available Steam I Water
from the well-bore prior to diverting the
I
flow through a horizontal discharge pipeAvailable Available
Total
line; a Russell James lip pressure pipe;
Stestm
Water TotaIF30
WCG
Themat Thennal Available
Power
Thermal
P,,E t & , M u w , How Mass Flow Enthalp; gvt %) Power
Weit
and into an atmospheric cyclone separaSteam
Water
Power
CapciQ
(Barn)
(barn)
W S )
W S )
0
Mwe
torhilencer fitted with a weir box to al(Wt)
OIMWt) (Mwt)
low monitoring of the separated water I

~~~~~~

564