hoop high hopes and challenges - spe workshop2 | omv (norge) as, march 11, 2015 annual spe workshop...

Hoop High – Hopes and Challenges

Bernhard Krainer | OMV (Norge) AS

2 | OMV (Norge) AS, March 11, 2015

Annual SPE Workshop in Arctic Norway

The Workshop focuses on technical and operational challenges in a cost effective perspective for the arctic region within reservoir drainage strategy, reservoir management, drilling & well, subsea and hardware.


Content

Introduction - OMV in Norway

Wisting Discovery General

Challenges

Reservoir Challenges

Facilities Requirements

Drilling in Shallow Reservoir

Summary

Location and weather

Stakeholders


Build up of significant asset portfolio since 2007

Exploration Appraisal Selection / FEED Production Execution

Zidane Gullfaks Edvard Grieg,

Production ~50 kboe/d by end 2014 up to 80kboe/d in 2017

OMV

position

36 Licences

9 Operated Zidane

Edvard Grieg

Aasta Hansteen

Polarled

Ivar Aasen

Gullfaks

Gudrun

Wisting

Luno II

Shetland/Lista


Skijumping: Main Sponsor of Norwegian National Team


Hanssen

Wisting

OMV: Barents Sea Portfolio & PL 537

11 Licences in Barents

2 operated

PL 537 awarded Q2/2009

3D shot in 2009

Prospect defined 2010

2 wells in Q3/Q4 2013

1 well in Q2 2014

License extension to

May 15, 2016

Appraisal Programme

2015: Drill Bjaaland

2016: Plans for up to

two additional wells

HOOP HIGH


Wisting consist of 5 segments:

Wisting Central

• Drilled 2013

Wisting Central West

Wisting Central South

Hanssen

• Drilled and tested 2014

Hassel

Bjaaland

• Planned for Q2/2014

Total Wisting Resources

in PL 537

PL 537 Wisting : Structure & Resources

Stø + Fruholmen P90 P50 P10

MMSTB MMSTB MMSTB

Recoverable Res. 200 300 500


Well Objectives:

Test Jurassic prospectivity (Stø

Formation)

Well Results:

Very shallow reservoir – only 250

below seabed

Upper part homogeneous with good

properties,

Lower part heterogeneous; but still

sand rich

Well with 50-60m oil column;

Central segment 60-160 mmbo

recoverable oil

Extensive data acquisition and

sampling , no DST

Secondary Target:

Snadd Formation, tight, shows only

7324/8-1 Wisting Central Well Summary- Discovery Well – Sept 2013

Wisting Central

AI


Content



Challenges




Summary


Stakeholders


Wisting has some unique conditions

Shallow reservoir

250m below seabed

Reservoir conditions

Low Pressure 70 bars

Low Temperature 16°C

No comparable case studies

Other Realgrunnen prospects/leads

on Hoop High will – if successful - face

equivalent challenges



Drive Mechanisms

How strong is aquifer ?

Current reference studies includes:

Water injection as drive mechanism

Horizontal production wells

Subsea multi-phase pumps

Recovery Factor

A big uncertainty

Ranges from low 20’s to 50+ %

? Contribution from heterogeneous part

Major influence on economics

Reservoir – how much can we get out?

45 55

80

20


Well Design and Planning

Well design limited by kill simulation

results

Cap rock integrity & barrier placement

BHA design (high dog legs, limited

weight on bit, high surface RPM)

Uncertainties in building behavior

Hole cleaning in low pressure /high

permeable sandstone reservoir

Challenging completion design

Horizontal Wells: None drilled offshore at this depth

Horizontals would be essential for development concept - less

wells and higher recovery

Prove feasibility of horizontal wells for Concept Selection


Subsea

Wells distributed over a large area

Not much pressure to “play with”

Pressure boosting required to keep flow rates high and back

pressure on wells low.

Trade-off between CAPEX (pre-installed equipment and piping) and

production rates

Facility Challenges – Sub-Sea

Work in progress:

All boosting mechanisms (sub-sea and down-hole)

Experience transfer (partners, leading vendors ) for “sub-sea

factory” equipment


Hydrates:

Early field life - Low temperatures, low pressures. Outside hydrate

zone.

Late field life - higher water cut, higher density - pressurizes fluid into

the hydrate zone.

Wax:

Studies ongoing to determine impact

Round trip pigging - adds to sub-sea CAPEX

Solutions under review:

Hot oil circulation, direct electrical heating, chemicals

Facility Challenges – Flow Assurance


HOOP High is far off existing Infrastructure - not like in North Sea –

Stand alone solution needed

Potential oil development at Wisting, but limited associated gas

GOR 37-50 Sm3/Sm3

Need to maintain oil rate for sufficient gas to power generation

No opportunities to buy/import from a near-by gas export line

Too far for Power from Shore

Solutions under review:

Re-inject excess gas in early life, produce back in late life (needs

sub-surface studies) or dual fuel solutions

Facilities Challenge - Power supply


Floater concept – 400 water depth,

What type of floater

Ship, Spar, Buoy-shaped?

How big – capacity, storage needs

Wisting only

Hub concept for area

Overall design concept

Winterization

low maintenace

new standards?

Export – shuttle tanker (Veidnes) or pipeline

Facility Challenge: Installation Design


Remote location

Northernmost discovery ever in Norway

(310 km from Hammerfest)

Low density of resources in the area

Medevac to Tromsø, up to 4 hours or more

Telemedicine solution plus two nurses on board

Long periods of dense fog expected

Evacuation solution independent of Helicopters

Stand by vessel with capability to operate in harsh

weather is the primary resourse

Location Challenge - HSSE


Long-term observations & detailed data for Hoop Area are sparse

PL537: Metocean buoy installed at Wisting

Collaborating with other Barents Sea operators and relevant

Authorities to expand knowledge of Barents Sea operating

conditions

Polar lows, fog in summer, prevailing wind directions etc.

Barents Sea in general more “friendly” met-ocean conditions than

Norskehavet

Collaboration to better understand the marginal ice zone eco-system

Location Challenge – Weather & Environment


Location Challenge – Oil Spill

Extensive simulations of diverse spill scenarios based on actual oil and reservoir properties

Strict oil spill recovery requirements

Spill detection within one hour

SECurus detection system (radar plus IR)

NOFO vessel at location

Full barrier I and II in place within 24 hrs

DST was seen by satellite...

Formal collaboration agreement with main Barents sea operators on a wide range of arctic HSSE issues in place now.

Barents Sea Exploration Collaboration (“BaSEC”) established on March 9, 2015


Location Challenge – Where is the Ice?

Average sea ice concentration map for December Average sea ice concentration map for January

HOOP HIGH

HOOP HIGH


Local Communities & Stakeholders

Fishing & Tourism

NGO’s & Climate Change Discussion

Non-Technical Challenges

Image taken from Transocean Barents, May 31, 2014


Resources:

Wisting – has proven up material subsurface potential – a shallow

and unique reservoir in Jurassic Realgrunnen

Other plays – Snadd & Kobbe (Triassic) – attempted but not

successfull to date

Development challenges

Primarily driven by resource volumes & shallow reservoir

Secondarily by limited infrastructure and logistics for location

Commercial challenges (oil price ..) need to be resolved

Way Forward

Confirmation of additional potential in the future (23rd Round fwd.)

will provide for development of hubs & regional infrastructure

OMV committed to mature Wisting and establish a PDO in 2019

Hoop High Challenges – Conclusions


Content



Challenges




Summary


Stakeholders


Thank you!

Bernhard Krainer | OMV Norge AS

[email protected]

hoop high hopes and challenges - spe workshop2 | omv (norge) as, march 11, 2015 annual spe workshop...

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