(FDP) GELAMA MERAH , OFFSHORE SABAH Arthur Goh Jin Wang 8890 Abd Hafriz Bin Abd ...

207 Pages·2010·4.58 MB·English

PAB4034 FIELD DEVELOPMENT PROJECT (FDP)

GELAMA MERAH , OFFSHORE SABAH
PREPARED BY: GROUP 6

Arthur Goh Jin Wang 8890
Abd Hafriz Bin Abd Wahid 8967
Mahamad Alfouti Ben Ali 7205
Ahmad Aqbal Bin Azman Shah 9495
Siti Sarah Salehuddin 9223
Siti Nur Mahirah Mohd Zain 9212
Mohd Zahidi Amin Bin Hamzah 9480
Hazwan Bin Jasman 9243

Final Report submitted in partial fulfilment of
the requirements for the
Bachelor of Engineering (Hons)
Petroleum Engineering

JULY 2010

Universiti Teknologi PETRONAS
Bandar Seri Iskandar
31750 Tronoh
Perak Darul Ridzuan

i
CERTIFICATION OF APPROVAL

GELAMA MERAH , OFFSHORE SABAH
PREPARED BY: GROUP 6

Arthur Goh Jin Wang 8890
Abd Hafriz Bin Abd Wahid 8967
Mahamad Alfouti Ben Ali 7205
Ahmad Aqbal Bin Azman Shah 9495
Siti Sarah Salehuddin 9223
Siti Nur Mahirah Mohd Zain 9212
Mohd Zahidi Amin Bin Hamzah 9480
Hazwan Bin Jasman 9243

A project dissertation submitted to the
Universiti Teknologi PETRONAS
in partial fulfilment of the requirement for the
Bachelor of Engineering (Hons)
Petroleum Engineering
Approved by,

__ ___________________ _____________________ _____________________
(A P DR ZUHAR ZAHIR) (SALEEM TUNIO) (ELIAS ABLLAH)
FD P Supervisor FDP Supervisor FDP Supervisor

UNIVERSITI TEKNOLOGI PETRONAS

TRONOH, PERAK

JULY 2010
i
CERTIFICATION OF ORIGINALITY

This is to certify that we are responsible for the work submitted in this project, that
the original work is our own except as specified in the references and
acknowledgements, and that the original work contained herein have not been
undertaken or done by unspecified sources or persons.

_______________________________
ARTHUR GOH JIN WANG

_______________________________
ABD HAFRIZ BIN ABD WAHID

_______________________________
MAHAMAD ALFOUTI BEN ALI

________________________________
AHMAD AQBAL BIN AZMAN SHAH

________________________________
SITI SARAH SALEHUDDIN

_________________________________
SITI NUR MAHIRAH MOHD ZAIN

_________________________________
MOHD ZAHIDI AMIN BIN HAMZAH

__________________________________
HAZWAN BIN JASMAN
ii
EXECUTIVE SUMMARY

Gelama Merah field is located in Offshore Sabah Basin at approximately 43km from
Labuan and 130km from Kota Kinabalu, Malaysia owned by PETRONAS. The objective of
the Gelama Merah FDP project is to carry out a technical and economics study of the
proposed development utilizing the latest technology available. This FDP group namely
PETROBEN intended to provide a comprehensive description development plan includes
geological interpretation, petrophysics, geological and reservoir modeling, facilities
engineering design, drilling program, well completion and project economics for the Gelama
Merah field. Gelama Merah field is divided to 9 layers which are U3.2, U4.0, U5.0, U6.0,
U7.0, U8.0, U9.0, U9.1 and U9.2 respectively. The main lithologhy identified are dominant
claystone interbedded with minor sand stone. From the results of MBAL simulation, it is
identified that Gelama Merah has dominant gas cap expansion drive mechanism while the
aquifer support is found to be weak. The total oil in place (STOIIP) from the top U3.2 to
U9.3 is 76.83MMStb, while the gas in place (GIIP) has the amount of 67.76MMMScf. Based
on the static reservoir model, it is found that only 3 zones (U9.0, U9.1 and U9.2) which have
contained the possible amount of oil to be recovered (40.41MMbbl). After various plans of
optimizations, it was decided that 5 production wells and 1 water injection well are needed to
recover the amount of 19.5MMbbl of oil with 47.8% recovery factor recorded with 20 years
of production. Based on the required facilities and environmental condition, a long term and
fixed on site platform which is jacket platform is preferably to be installed at Gelama Merah
field. It is decided to tie in the platform to Samarang-B CPP to process the crude oil as it
reduces the cost for processing on GMJT-A itself and reduces the cost for leasing a FPSO
vessel for the whole 20 years cycle. The total cost of Capital Expenditure (CAPEX) is about
88.492 Mil USD while the cost for Operating Expenditure (OPEX) is estimated about 5.135
Mil USD/year. The calculated Net Present Value (NPV) at 10% is 62.9 MM USD. With IRR
at 36%, the breakeven is estimated in 3.52 years.

iii
ACKNOWLEDGEMENT

First of all, we would like to convey our greatest praise and gratitude to Allah
the Almighty for His Mercy for giving us the strength and capability to complete this
report of Field Development Project throughout this final semester. Special thanks to
our FDP supervisor firstly, AP Dr Zuhar, Mr Saleem Tuinio and Mr Elias Abllah and
FDP Coordinator Pn Mazlin Idress, from Universiti Teknologi PETRONAS (UTP)
for the constant guidance towards the completion of this report.

We also would like to take this opportunity to thank all parties involved for
the respective professionalism and contribution to the project particularly to En
Adzlan Mohaideen, Drilling Engineer and Mohd Zafuan Che Zulkifli, Facilities
Engineer from PETRONAS Carigali, KLCC for their contribution and also to our
friends and colleagues for their continuous support. Not to forget also to Mr Armi
Faizal, Field Engineer from PCSB Sabah Operation, for his information on the Sabah
Offshore operation. Greatest gratitude also to Haji Aminuddin B Mohd Yussoff,
Former Drilling & Completion Supervisor, PCSB for a thorough guide into drilling
plans during his teaching course in UTP.

Besides that, we would like to express the deepest appreciation to Ms. Nor
Baizurah Bt Ahmad Tajuddin and Mr. Azmir Bakhtiar Bin Bahari, Reservoir
Engineers in PETRONAS CarigaliSd. Bhd. whose encouragement, guidance and
support from the initial to the final stage of Reservoir Engineering phase in this
project has enabled to develop a good understanding in solving problems encountered
in reservoir simulation studies.

Thank you once again from PETROBEN and without their guidance and persistent
help, this project would not have been possible.

iv
TABLE OF CONTENTS

CERTIFICATION OF APPROVAL …………………………………………… i
CERTIFICATION OF ORIGINALITY ……………………………………….. ii
EXECUTIVE SUMMARY …………………………………………………….. iii
ACKNOWLEDGEMENT ……………………………………………………… iv
LIST OF FIGURES …………………………………………………………….. xi
LIST OF TABLES ……………………………………………………………… xiv
LIST OF APPENDICES ………………………………………………………... xvii

PHASE 1 OVERVIEW …………………………………………………….. 1

1.1 Introduction ....................................................................................... 1
1.2 Problem Statement ………………………………………………… 1
1.3 Objectives …………………………………………………………. 2
1.4 Methodology ………………………………………………………. 2
1.4.1 Modeling Softwares
1.4.2 Flow Diagram 1 : Geology and Petrophysics
1.4.3 Flow Diagram 2 : Reservoir Engineering
1.4.4. Flow Diagram 3 : Production Technology
1.4.5 Flow Diagram 4 : Drilling & Completion Plan
1.5 Project Team ……………………………………………………… 7

PHASE 2 GEOLOGY……………………………………………………….. 8

2.1 2-Dimensional Cross Imaging ……………………………………… 8
2.2 Stratigraphy and Reservoir Geology …………………..................... 11
2.3 Regional Setting …………………………………………………… 12
2.4 Exploration Opportunities …………………………………………. 13
2.5 Petroleum System ………………………………………………….. 14
2.6 Depositional Environment …………………………….................... 14
2.7 3-Dimensional Static Model ………………………………………. 15
2.7.1 General Description (PETREL)
2.7.2 Model Parameters
2.7.3 Top Structure Development
2.7.4 Creating New Wells
2.7.5 Stratigraphic Modeling
2.7.6 Structural Modeling
2.7.7 Properties Modeling
2.8 Hydrocarbon Volumetric Assessment (PETREL) ………………… 21
2.9 Risk Analysis and Uncertainties…… ……………………………… 23

v
PHASE 3 PETROPHYSICS EVALUATION …………………………….. 24

3.1 Formation’s Lithologic Evaluation ………………………………… 24
3.1.1 Well Gelama Merah-1
3.1.2 Well Gelama Merah-ST1
3.1.3 Lithology Cross Plot Identifications
3.2 Fluid Types Identification…………………………………………. 29
3.3 Properties Calculation …………………………………………….. 30
3.3.1 Objectives
3.3.2 Petrophysical Evaluation Methodology
3.3.3 Porosity Calculation
3.3.4 Water Saturation Calculation
3.3.5 Water Saturation of Flushed Zone
3.3.6 Hydrocarbon Moveability Index
3.3.7 Calculation of Bulk Volume Water
3.3.8 Averaging Method
3.3.9 Average Porosity
3.3.10 Average Water Saturation
3.3.11 Concept of Cutoffs
3.4 Volumetric Calculations ………………………………………….. 38
3.4.1 Volumetric Estimation Approach
3.4.2 Deterministic STOIIP & GIIP by Properties
3.4.3 Deterministic STOIIP & GIIP by IP Software
3.4.4 Comparison of Volumetric Calculations
3.5 Discussions & Recommendations……….…………….................... 43
3.5.1 Discussions
3.5.2 Recommendations

PHASE 4 RESERVOIR ENGINEERING …….…………………………... 47

4.1 Introduction……………………….................................................... 47
4.2 Reservoir Characteristics…………………………………………… 48
4.3 Reservoir Data……………………………………………………….. 49
4.3.1 Porosity Permeability Relationship
4.3.2 Vertical and Horizontal Permeability Transform
4.3.3 Relative Permeability
4.3.4 Oil Water System
4.3.5 Gas Oil System
4.3.6 Denormalization of Oil Water System
4.3.7 Denormalization of Gas Oil System
4.3.8 Leverett J function and the Capillary Pressure
4.4 Well Test Data……………………………………………………… 59
4.4.1 Production tests
4.4.2 Pressure Transient Analysis
4.5 Reservoir Fluid Study (PVT Analysis)..……………………………. 61
4.5.1 Preliminary Quality Check (QC) Test
4.5.2 Compositional Analysis
vi
4.5.3 Constant Compositional Expansion
4.5.4 Differential Vaporization (DV) Test
4.5.5 Viscosity Test
4.5.6 Separator Test
4.6 Reserves Estimation……….………………………………………… 75
4.7 Material Balance ……………………………………………………. 75
4.7.1 Energy Plot
4.7.2 Recovery Factor
4.7.3 Production Profile Forecast
4.8 Reservoir Simulation Study ………………………………………… 78
4.8.1 Objective of Simulation Study
4.8.2 Reservoir Model Set Up
4.6.3 Well Placement
4.6.4 Base Case Model
4.6.5 Reservoir Development Strategies Option
4.9 Sensitivity Analysis ………………………………………………… 91
4.10 Production Profile ………………………………………………... 95
4.11 EOR Consideration ………………………………………………… 97

PHASE 5 PRODUCTION TECHNOLOGIST ……………………………101

5.1 Introduction ……………………………………..………………….. 101
5.2 Sand Control Strategies …………………………………………….. 101
5.2.1 Sand Condition Analysis
5.2.2 Bottomhole Completion Options
5.2.3 Sand Control Methods
5.2.4 Types of Slotted Liner Patterns
5.2.5 Sand Control Design Selections
5.3 Production Optimization …………………………………………… 108
5.3.1 Inflow Performance Prediction
5.3.2 Optimum tubing size selection
5.3.3 Gas Lift Justifications
5.3.4 Gas Lift Design
5.3.5 Tubing Performance with Increasing WC
5.3.6 Tubing Performance with Increasing GOR
5.3.7 Recommendations
5.3.8 Material Selection
5.4 Well Profile ……………………………………….……………….. 117
5.4.1 Orientation of Producing Wells
5.4.2 Horizontal Well Radius Profile
5.4.3 Wellbore Diagrams
5.5 Potential Production Chemistry Problem………..…………………. 119
5.5.1 Scale Formation
5.5.2 Wax Deposition
5.5.3 CO2 Content and Sweet Corrosion
5.5.4 H2S Content and Sour Corrosion
vii
5.5.5 Emulsion Formation

PHASE 6 DRILLING & COMPLETION IMPLEMENTATION……… 121

6.1 Drilling Development…..…………………………………………… 121
6.1.1 Platform Location
6.1.2 Rig Selection
6.1.3 Well Types
6.1.4 Well Trajectory using SES
6.2 Pressure Management………………………………………………. 125
6.3 Drilling Fluid Design ………………………………………………. 127
6.4 Casing Plans ………………………………………........................ 128
6.5 Cementing Plan …………………………………………………….. 131
6.6 Well Control ……………………………………………………….. 133
6.6.1 BOP Specification
6.6.2 Actuator / SSV
6.6.3 Wellhead/Casing Spool
6.7 Hydraulic Optimization ………………………………………… 134
6.8 Drilling Optimization ……………………………………………….. 136
6.8.1 Rotary Steerable System (RSS)
6.8.2 Cement Assessment Tool (CAT)
6.8.3 Directional Casing While Drilling (DCwD)
6.9 Potential Drilling Problems ………………………….................... 137
6.10 Bit Selection ……………………………………………………….. 138
6.11 Well Completion …………………………………………………… 139
6.11.1 Swell Technology™ Packer
6.11.2 Expandable Sand Screen (ESS) Control
6.11.3 Subsurface Safety (SCSSV) System
6.11.4 Tubing Installation
6.11.5 Sliding Side Door (SSD)
6.11.6 X-mas Tree Selection
6.11.7 Completion and Packer Fluid
6.11.8 Completion Design
6.12 Drilling Cost and Schedule Estimation …………………………….. 143

PHASE 7 FACILITIES ENGINEERING ……………………………….. 145
7.1 Introduction ………………………………………………………….. 145
7.3.1 Summary of completion
7.3.2 Types of development platform
7.2 Design Features & Basis ……………………………………………. 146
7.2.1 Design Concept
7.2.2 Substructure
7.2.3 Top structure
7.3 Operation Facilities Selection ……………………………………….. 148
viii
7.3.1 Production Flowline, Flow Control & Manifold
7.3.2 Wellhead
7.3.3 Gas Metering and Measurement
7.3.4 3-Phase Separator
7.3.5 Water Injection
7.3.6 Gas Handling
7.3.7 Gas Lift System
7.3.8 Electrical Power and Lighting
7.3.9 Drain System
7.3.10 Flare Boom/Vent System
7.3.11 Instrument Air System
7.4 Safety Facilities System …………………………………………… 151
7.4.1 Safety Shutdown System
7.4.2 Automatic Fire Detection and Alarm Systems
7.4.3 Live Saving Appliances
7.5 Production Pipeline ………………………………………………… 153
7.5.1 Pipeline Tie-ins
7.5.2 Optimum Pipeline Size using PIPESIM™
7.5.3 Wax Mitigation
7.5.4 Slug Surpression System (SSS)
7.6 Pipeline Corrosion Management …………………………………… 160
7.6.1 Corrosion Inhibitor Injection
7.6.2 Corrosion Allowance
7.6.3 Pigging
7.6.4 Corrosion Monitoring
7.7 Abandonment ………………………………………………………. 161
7.8 Facilities CAPEX, OPEX & Decommissioning Cost …………….. 162
7.8.1 Capital Expenditure (CAPEX)
7.8.2 Decommissioning Cost
7.8.3 Operational Cost (OPEX)

PHASE 8 ECONOMIC ANALYSIS………………………………….......... 165
8.1 Introduction ………………………………………………………… 165
8.2 Development Expenditures ………………………………………… 166
8.3 PSC Arrangment / Fiscal Terms…………………………………… 167
8.4 Evaluation Basis and Assumptions ………………………………. 168
8.5 Development Scenarios………………………………................. 170
8.5.1 1st Screening : Well Types
8.5.2 2nd Screening : Pressure Maintenance Scheme
8.5.3 3rd Screening : Injection Time
8.5.4 4th Screening : Injection Rate
8.5.5 5th Screening : Production Control Mode
8.5.6 6th Screening : Production Life
8.6 Economic Results ………………………………………………… 172
8.6.1 1st Screening Results
8.6.2 2nd Screening Results
ix