reliance cbm exploration in india
TRANSCRIPT
1
Methane to Markets (M2M) Conference
Advancing Project Development in India through Public Private Partnership
New Delhi
Reliance CBM Exploration in IndiaBy
M.S.Sundaram, Supdtg.Geologist
Reliance Industries Limited
22nd February 2007
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RIL’s CBM blocks
CBM exploration experience
CBM prospect evaluation approach
Highlights & major achievements
Corehole program
Saturation conditions in coal beds
Permeability of coal reservoirs
CBM well drilling & completion
Emerging technologies
CBM gas usage options
OUTLINE
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Coimbatore
MAHARASHTRA
Udhagamandalam
Anantapur
Bellary
Zahirabad
Raichur
CHANDIGARH
Hoshangabad
DELHIGurgaon
JAMMU AND KASHMIR
KERALA
Ernakulam
AlappuzhaKAYANKULAM
Kollam
KK08
SURATHKAL
GOA
Karwar
Hassan
MadikeriMangaloreKasargod
KARNATAKA
KOLHAPUR
Pune
Nashik
RatnagiriDABHOL
Kudal
TROMBAY
URANAlibag
Thane
SILVASSA
Osmanbad
Sangli
GokakBijapur
Bid
Inte
rnat
ional
Bord
er
GUJARAT
Jaisalmer
Rajkot
KndlaMundra
JAMNAGAR
BhujGK ON90/2
HAZIRA (HBJ INTERCONNECT)
Vadodara
AHMEDABAD
Dungarpur
Kheda
Bhavnagar
Godhra
GANDHINAGAR
CB ON1Udaipur
Palanpur
UjjainDevas
DharJhabua
INDORE
Ratlam
Amla
Mandsaur
RAJASTHANJodhpur
Nagaur
Bikaner
JAIPUR
PUNJAB
HARYANA
SRINAGAR
WARDHA Kendrapara
Nagapattinam
Ramanathapuram
TUTICORINTiruneveli
KAKINADARajahmundry
Thanjavur
Nellore
Kanchipuram
Cuddalore
ENNOREKolar
TiruchirappalliTAMILNADU
BANGALORE
PONDICHERRYVillupuram
Vellore
ANDHRA PRADESH
Chittoor
Ongole
GarhchiroliChandrapur
Guntur
Khammam
KondapalleVIJAYAWADA
Kurnool
Mahbubnagar
HYDERABAD
DundigalBidar
Nizamabad
Yavatmal
Adilabad
Eluru Yanam
Uppada
BHUBANESHWAR
Vizianagaram
VISHAKHAPATNAM
BhawanipatnaKhurda
CUTTACK PARADEEP
Puri
SHIMLA
CHHATISGARH
Banda
JabalpurMADHYA PRADESH
Damoh
Betul
Nagpur
(HBJ INTERCONNECT)GUNA (VIJAIPUR)
BHOPAL
Bina
RAIPUR
Bilaspur
Rewa
Kanpur
Naini Tal
LUCKNOW
Pithoragarh
UTTAR PRADESH
UTTARANCHAL
Shanjahenpur
Faridabad
DEHRADUN
Uttarkashi
HaridwarAlmora
International Border
Jagdishpur
Bokaro
WEST BENGAL
JHARKHANDAmbikapur
SambalpurORISSA
GayaBIHAR
RANCHI
PATNA
Jamshedpur
Medinipur
Baleshwar
Baripada
KOLKOTA
Dhanbad
Madhubani
Maharajganj Darjiling
GANGTOK
ARUNACHAL PRADESH
MANIPUR
AGARTALA
TRIP
URA
MIZ
OR
AM
IMPHAL
AIZWAL
ITANAGAR
SHILLONG
DISPUR
MEGHALAYANAG
ALAN
D
KOHIMA
ASSAM
2ND CBM ROUND BLOCKS
1ST CBM ROUND BLOCKS
Block Name (Area Sq. Km)
Rajasthan West 1045
Rajasthan East 1020
Total 2065
Block Name (Area Sq. Km)
Sohagpur West 500
Sohagpur East 495
Sonhat 825
Total 1820
AHMEDABAD
JAIPUR
BHOPAL
RAIPUR
MUMBAI
DELHI
RIL’s CBM BLOCKS
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Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Core / Perm Well
Five Spot
Five Spot
Five Spot
• Fixing CBM Gas-in-place and identification of CBM fairway by corehole drilling
• Fixing well producibility numbers from 5-spot cluster wells further refined by commercial pilots
Exploration
Objectives
CBM PROSPECT EVALUATION APPROACH
CBM EXPLORATION EXPERIENCE
Sohagpur West CBM
Block
Sohagpur East CBM
Block
Core / Perm Well
Core / Perm Well
Pre-drilling AssessmentGeological evaluation, based on available informationRemote sensing studiesLineaments, natural fracturing studies
Core ProgramCore & LogGas Content, Adsorption IsothermInjection/ Falloff Permeability Test
Production Test (5-Spot Pilot)Production TestCompletion EffectivenessRelative Permeability
Reservoir SimulationSpacing & PatternField / Area Production PotentialField / Area Development Program
Commercial PilotStep out wellsLarger Spacing Completion optimization
5Minor fault in Raniganj coal and shale interbands, north of Kanchanpur
Steeply dipping micaceous sandstone abutting against massive sandstone along E-W fault, Kaser nala
TECTONIC AND STRUCTURAL SETTINGFAULT DEVELOPMENT
CBM EXPLORATION EXPERIENCE
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E-W major joint cut across by N-S joint,Kaser nala section
TECTONIC AND STRUCTURAL SETTING - JOINTS/FRACTURES
CBM EXPLORATION EXPERIENCE
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CBM Discovery : 3.65 TCF, validated by the
Directorate General of Hydrocarbons (DGH)
Technology used for drilling : Air Drilling
(First ever used in India for CBM Drilling)
Gas Production Potential : 3 - 5 MMCMD in a Frontier Area
Water Production Potential : 50,000 – 70,000 BPD of good quality water
Investment Potential
CBM Production : Over Rs.3000 crores
Employment Generation
Direct employment : In thousands
Indirect employment : In thousands
Infrastructure Development : Roads, Ancillary Industries, Support Industries
CSR Scope : Health, Education, Environmental
conservation. Agricultural Support
USTDA Funding - Considering positive viability, funding of 0.5 million USD approved for project Techno-economic feasibility study. Contract signed with TDA in May this year
CBM EXPLORATION EXPERIENCE
HIGHLIGHTS
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The CBM key reservoir parameters acquired:
Compleatable Coal thickness and coal seam continuity
Gas content and gas saturation
Permeability and its variability
Corehole drilling:
Faster completion of corehole in 15 days average as against about 60 days by
others.
Faster drilling of dolerite rocks (80-170 m) in 2-3 days as against 1 month by
others
100% core recovery
Many open hole Injection / fall off tests have been carried out first time in the
country for determination of permeability of the coal seams
CBM EXPLORATION EXPERIENCE
MAJOR ACHIEVEMENTS
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COREHOLE PROGRAM
Critical parameters essential to determine gas in place resource and fairway
areas of high gas production
Coal thickness
Gas content
Permeability: a key CBM production parameter, may vary drastically over
short distances
There is a paucity of data on gas content and permeability for Indian coal basins
Exploration Campaign in any frontier basin should aim at getting fix on
these 3 parameters
CBM EXPLORATION EXPERIENCE
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CBM EXPLORATION EXPERIENCE
SATURATION CONDITIONS IN COAL BEDS
Pressure (psi)
0
100
200
300
400
500
600
0 1600140012001000800600400200
Saturated
Measured
Oversaturated
Undersaturated
Critical desorption pressure
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Permeability, the key parameter of coal for commercial
CBM production can be low and vary drastically over
short distances. Therefore, almost all CBM wells are
routinely stimulated
Coals at deeper depths with high stress conditions,
usually have insufficient permeability to allow flow of
CBM gas into the well.
Generally speaking, such adverse conditions are less
evident in US, Australian and Indian coals. That is why
USA & Australia have many CBM producing fields,
whereas drilling in Europe has drawn a blank so far.
0.01
0.1
1
10
100
0 500 1000 1500 2000 2500 3000
Depth (ft)
Per
mea
bil
ity
(md
)Permeability Versus Depth Curve for
Different Stress Regimes in the Bowen Basin, Australia (Modified after Peter Decker et.al,
1991)
RELAXED STRESS
NORMAL STRESS
HIGH STRESS
PERMEABILITY OF COAL RESERVOIRS
CBM EXPLORATION EXPERIENCE
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Gas productivity from low stress naturally fractured coal seams is high
PERMEABILITY vs. PRODUCTION
CBM EXPLORATION EXPERIENCE
Time, Years
Gas
Pro
du
ctio
n, M
Mcf
d
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1 2 3 4 5 6 7 8 9 10
Good Perm(10 md)
Low Perm(0.5 md)
Moderate Perm(2 md)
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CBM EXPLORATION EXPERIENCE
Underbalanced or Air Drilling helps reduce Formation Damage in CBM Wells and results in faster rates of drilling
Air Drilled WellDamage
Zone Around Wellbore
Open Cleats Around
Wellbore
DRILLING
• In general, coals are susceptible to damage from drilling, cementation and
frac fluids
Air / Air mist drilling
Light weight cement slurries and compatible fluids
Careful selection of frac fluids
CBM WELL DRILLING
Mud Drilled Well
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TDS Content Tolerance [mg/ l]
<500 Drinking Water
<2,500 Cattle
<3,000 Crop irrigation
<5,000 Sheep
Initial water analysis for Sohagpur water shows that TDS is less than 1000 mg/l
TDS Limits For Water Usage
P.S. : Rajasthan Barmer district drinking water bore wells : 5000 + mg /l
CBM EXPLORATION EXPERIENCE
Water Quality
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CBM EXPLORATION EXPERIENCE
CBM WELL COMPLETION
High-Perm Completions in other CBM Basins
SISMore cavity
Some HF
Single horizontalsCavity for high k; HF for low k;
Recent horizontals
Completion
1-30010-100010-305-100Perm range (md)
Moranbah
(Australia)
Fairview
(Australia)
Arkoma
(USA)
San Juan
(USA)
Field
SISMore cavity
Some HF
Single horizontalsCavity for high k; HF for low k;
Recent horizontals
Completion
1-30010-100010-305-100Perm range (md)
Moranbah
(Australia)
Fairview
(Australia)
Arkoma
(USA)
San Juan
(USA)
Field
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AVERAGE WELL PERFORMANCE-CAVITY VS CASED HOLE IN SAN JUAN BASIN
CBM EXPLORATION EXPERIENCE
Number of Wells:
Open -Hole 598 477 366 263 185 117 75 38 19 17
Cased-Hole 230 207 169 140 114 74 57 24 12 8
Year
0
500
1,000
1,500
2,000
2,500
3,000
0 1 2 3 4
Av
era
ge
Da
ily G
as
Pro
du
cti
on
Pe
r W
ell,
Mc
f/d
Cavity Completion
Cased-Hole-Frac
Number of Wells:
Open -Hole 598 477 366 263 185 117 75 38 19 17
Cased-Hole 230 207 169 140 114 74 57 24 12 8
Year
0
500
1,000
1,500
2,000
2,500
3,000
0 1 2 3 4
Av
era
ge
Da
ily G
as
Pro
du
cti
on
Pe
r W
ell,
Mc
f/d
Cavity Completion
Cased-Hole-Frac
Cavity Completion
Cased-Hole-Frac
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Butt CleatsShear Failure Zone
Shear FracturesHorizontalStress
Tensile Fractures
Not to Scale
Tensile Failure Zone
Joints
Cavity
Tensile Fractures Not Connected to the Cavity
Face Cleats
OriginalWellbore
Max
Min
Butt CleatsShear Failure Zone
Shear FracturesHorizontalStress
Tensile Fractures
Not to Scale
Tensile Failure Zone
Joints
Cavity
Tensile Fractures Not Connected to the Cavity
Face Cleats
OriginalWellbore
Max
Min
Butt CleatsShear Failure Zone
Shear FracturesHorizontalStress
Tensile Fractures
Not to Scale
Tensile Failure Zone
Joints
Cavity
Tensile Fractures Not Connected to the Cavity
Face Cleats
OriginalWellbore
Max
Min
Butt CleatsShear Failure Zone
Shear FracturesHorizontalStress
Tensile Fractures
Not to Scale
Tensile Failure Zone
Joints
Cavity
Tensile Fractures Not Connected to the Cavity
Face Cleats
OriginalWellbore
Max
Min
Butt CleatsShear Failure Zone
Shear FracturesHorizontalStress
Tensile Fractures
Not to Scale
Tensile Failure Zone
Joints
Cavity
Tensile Fractures Not Connected to the Cavity
Face Cleats
OriginalWellbore
Max
Min
Butt CleatsShear Failure Zone
Shear FracturesHorizontalStress
Tensile Fractures
Not to Scale
Tensile Failure Zone
Joints
Cavity
Tensile Fractures Not Connected to the Cavity
Face Cleats
OriginalWellbore
Max
Min
Ideal Targets
• High rank, Low to medium volatile bituminous
Coals
• Fragile coals
• Moderate to good permeability, 10+ mD
• Over pressured coal reservoirs
• Costs about 1.5 times more than normal
vertical wells but produce 4 to 6 times more
• Many Parts of Sohagpur CBM blocks having the above characteristics are good for Cavity Completion
EMERGING TECHNOLOGIES – CAVITY COMPLETION
CBM EXPLORATION EXPERIENCE
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Vertical Well
In-Seam Well
In-Seam Well
1200m
45o
EMERGING TECHNOLOGIES IN CBM - IN SEAM DRILLING
CBM EXPLORATION EXPERIENCE
Plan for Sohagpur West Block, Seam-III
Drilling in seam – directional well from a distance of 1200 m.
Sohagpur West – Seam III
Estimated production potential – 1.5 to 2.0 MMSCFD per well
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EMERGING TECHNOLOGIES IN CBM - IN SEAM DRILLING
CH4, Australia drilled over 100 sets of chevron wells producing 1-2 million cubic feet per day of CBM Gas
Surface to in-seam horizontal directional drilling in chevron pattern
CBM EXPLORATION EXPERIENCE
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Technology Potential
Horizontal and in-seam drilling Increase ultimate recovery by up to 50%
Multilateral drilling Increase ultimate recovery by up to 50%
Air drilling Cut drilling time and cost by up to 50%
Optimizing stimulation Increase ultimate recovery by 20-50%
Better well spacing Could double NPV
Continuously variable pump controller Save workovers, boost ultimate recovery By 5-10%
Foam cement Increase ultimate recovery by 5-10%
Coiled Tubing Frac Increase ultimate recovery by 15-30%
Down hole gas compression Increase ultimate recovery by 20-40%
Smaller rigs Save $ 15,000 per location
Closed loop air drilling Save $ 20,000-30,000/well
Casing drilling Save $ 10,000/well
Jet slotting Save $ 10,000/well, increase ultimate recovery by 20-50%
Implemented in Phase-I
Being implemented in Phase-II
Advanced technology implementation – Potential Impact
CBM EXPLORATION EXPERIENCE
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Possible CBM Based Industries
Fertilizers, chemicals & petrochemicals
Town Gas & Industrial fuel supply
Power generation
Cement
Paper and paper products
Sponge iron & steel
Ceramics
Glass
Textiles
Steel, Glass, Ceramics and Paper manufacturing companies are showing keen interest to put up their plants in the region
CBM GAS USAGE OPTIONS
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Gas demand in the region
Location IndustryDistance from CBM blocks in
Km
Gas Demand Potential in MMSCMD
Shahdol Chemicals, Paper, Power, Fuel, City gas 25 0.35
Katni Cement, Fuel, City gas 135 2.92
TOTAL 9.99
Maihar Cement, Fuel, City gas 153 0.40
Rewa Cement, Fuel, City gas 200 1.12
Satna Cement, Fuel, City gas 200 0.65
Allahabad Fertilizer complex 350 4.50
With availability of CBM gas, accelerated industrial development is a good prospect in and around Shahdol apart from above demand
CBM GAS USAGE OPTIONS