IOR TECHNIQUESImproved Oil Recovery covers Supplemental Recovery, Improved Reservoir Management and Enhanced Recovery (Slide 1). Slide 1 also illustrates the four typical stages of an (offshore) oil field’s life cycle: (I) primary recovery, (II) plateau production, (III) tail end production and finally (IV) late field rejuvenation. The classical definition of Primary, Secondary and Tertiary recovery (Slide 2) do not cover/describe the actual value activities encountered. Primary Recovery and Improved Oil Recovery is presented as a neo-classical representation of the recovery techniques. This neo-classical approach represents the global technical challenges.

Primary recovery is achieved utilising the natural energy stored in the reservoir fluids and underlying aquifer. The primary recovery efficiency is due to one or more of the following mechanisms taking place in the reservoir: solution gas drive; gas cap drive; natural aquifer drive; fluid and rock expansion; and gravity drainage.

Supplemental recovery is achieved by using external energy added to the reservoir fluid system to supplement the primary recovery mechanism. No fundamental changes occur to the physicochemical properties of the displacing or displaced fluids. Typically this external energy is provided by water or immiscible gas.

Enhanced recovery techniques use external energy added to the reservoir fluid system. However, fundamental changes occur to the physicochemical properties of the displacing or displaced fluids. These physicochemical changes affect the chemical, biochemical, density, miscibility, surface or interfacial tension, and viscosity or thermal nature of the reservoir fluid system.

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IMPROVED HYDROCARBON RECOVERY + RESERVES ADDITION1. GAS AND ADDITIONAL OIL RECOVERY BY LATE FIELD

DEPRESSURISATION [dissolved GOR >600 scf/stb]2. VISCOUS OIL RECOVERY PROCESSES {ie cp>10, M>3)}

[Polymer, Hot Water, Steam, Insitu-Combustion] NB: Heavy Oil {cp>1000}3. GAS INJECTION

* GRAVITY STABILISED GAS INJECTION {GSGI}* HORIZONTAL GAS INJECTION {HGI}* OPTIMAL GAS CONDENSATE RESERVOIR MANAGEMENT

4. MODIFIED WATERFLOOD[Improved Waterflood Techniques; MEOR-BOS, Surfactant, Foam, Polymer]

5. FLOW DIVERSION TECHNIQUES[Microbial, Polymer-Gels, Polymer RPM, Foams]

6. HORIZONTAL AND EXTENDED REACH WELL TECHNOLOGY7. IMPROVED RESERVOIR MANAGEMENTINFRASTRUCTURE8. IMPROVED FACILITY SCIENCE, ENGINEERING & TECHNOLOGYENVIRONMENT9. ENVIRONMENTAL MANAGEMENT

[The Problem ?, Measuring, Monitoring, Reducing, Avoiding, Remediation]BUSINESS & SOCIETY10. BUSINESS VALUE

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IMPROVED OIL RECOVERY & TIGHT GAS

UTTLP

GE

M

Ultra-TightTightLow PermeabilityPoor Permeability

Good PermeabilityExcellent Permeability

Medium Permeability

>0.001>0.01>0.1>1

>100>1000

>10

(mD) IOR Techniques

WaterFlood

Tight Gas

>0.0001

GAS RESERVOIRS

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>0.00001ETUET

Extreme-TightUltra Extreme-Tight

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… challenge to extract more from substantial Resources [>2006]

PRODUCTION TECHNOLOGIES

SPE_EOR Last Drop 05_2007.url

0

1

2

3

4

5

1971

1981

1991

2001

2011

2021

Daily production mmboe

Oil

Dry Gas + HPHT

2031 20

41

Discoveries

IOR projects

New projects

Where are we today? [2006]

Big Structures

Subtle, Smaller, Complex Trap Structures

62 Billion BOE_MORE

EOR: Heavy/Viscous Thermal Polymer Surfactant Carbon Dioxide Flue Gas

Appraisal

Drilling Technologies& Facilities

Production Technologies EOR Technologies

E&A,D,P = £370 billion @12/2006 [UKOOA] 3 Billion BOE_EOR

RESOURCE EXPLOITATION

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PRODUCTION TECHNOLOGIES… about being more PRODUCTIVE

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• DRILLING more PRODUCTIVE WELLS• FACILITIES PRODUCING more RESERVES• ABILITY to EXPLOIT TIGHT GAS ROCKS• ABILITY to EXPLOIT VISCOUS - HEAVY OIL• ABILITY to EXTRACT P50 RESERVES [MARGINAL FIELDS]

INTEGRATED MULTI-TASKINGMARKET ORIENTED RESOURCE EXPLOITATION

Business Environment

Insight, Originality, Reality

TechnicalEvaluation

Implementation

Data

Characterisation

PEOPLE & TECHNOLOGY

AcquisitionDecisions

Knowledge

PRODUCTION

The PLAN

"The REAL ASSET"

The STRATEGY

Command & Control

DESIGN

INTEGRATION

[Operational Enactment]

PRODUCTION TECHNOLOGIES… challenge to extract more from substantial Resources [>2006]

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• TIGHT GAS eg Cygnus SNS [>2 TCF GIIP]

• DEEP WATER OIL eg Santos Basin [100+ billion BO STOIIP]

• HPHT & XHPHT eg UKCS [>10 billion BOE HIIP]

• SHALE GASie Fraccing

• OIL SANDS [extra heavy oil] [>2 trillion BO STOIIP]

ie SAGD; Surface Processing [upgrader gasification process];

Catalytic Upgrading [downhole]

• DEEP WATER GAS eg West of Shetlands [>3 TCF GIIP]