Fensfjord Formation

GE announced today that it is spinning off Baker Hughes (BHGE) in its strategic plan for growth and shareholder value creation. It plans to focus on aviation, power, and renewable energy. GE CEO John Flannery said these areas share technologies, digital and additive strategies, and business models. The separation from Baker Hughes will take place over the next 2 to 3 years as part of GE's effort to "make its corporate structure leaner and substantially reduce debt," the company said in a statement. GE Oil and Gas merged with Baker Hughes in July 2017, with GE holding a 62.5% stake.

Operators are drilling more exploration wells than in recent years and developing a high number of projects on the Norwegian Continental Shelf (NCS), but even more activity will be needed into the next decade to prevent a drop-off in production. The Norwegian Petroleum Directorate (NPD) projects 40–50 exploration wells will be drilled this year, an increase from 36 in each of the last 2 years, fueled by higher, more stable oil prices and better knowledge and data relating to the offshore acreage. Thirty wells are expected to be spudded in the North Sea, with 8–10 in each of the Norwegian and Barents Seas. During this year's first half, 13 exploration wells yielded six discoveries, of which half came in the North Sea, two in the Norwegian Sea, and one in the Barents Sea. Twenty projects are currently in the development phase, NPD says, representing new installations, minor discoveries that will utilize existing infrastructure, and projects to boost recovery from aging fields.

Despite the improved productivity and uplift in reserve recovery associated with horizontal wells, reservoir heterogeneity can cause uneven production, and early water and gas breakthrough from portions of the wellbore. Inflow control devices (ICD) create additional pressure drop to balance the production flux, but cannot restrict unwanted effluents once they break through.

The Autonomous Inflow Control Device (AICD) actively delivers a variable flow restriction in response to the properties (viscosity) of the fluid flowing through it. Water or gas flowing through the device is restricted more than oil. When used in a horizontal well, segmented into multiple compartments, this design prevents excessive production of unwanted effluents after breakthrough occurs in one or more compartments.

In the 2016 infill development campaign, production was improved by AICDs to ensure contribution from all reservoir sections, and limit gas and water production by postponing breakthrough and restricting unwanted effluent production after breakthrough.

A nine well program was selected to demonstrate the effectiveness of AICD completions in the East Belumut and West Belumut assets, a field development offshore Malaysia. The wells are drilled with horizontal lengths typically 1.5km within the original 6-8m thin oil column for West Belumut and 10-14m thin oil column for East Belumut. The program comprised of AICD flow loop testing, performance modelling, candidate selection, completion design and comparing production results with neighbouring ICD wells in the fields.

The implementation of an AICD completion was a success and full fields implementation took place in 2017. First installed in March 2016, the AICD completion was adopted as part of the standard lower completion solution at East Belumut. To date additional wells have been completed with AICD completions in East and West Belumut fields, demonstrating significant increase in cumulative oil production, reduction in GOR of the AICD wells by 50%, and achieving 50% more oil production compared to offset ICD wells.

This paper describes a full field implementation for the application of AICDs in a super thin layer, oil reservoir offshore Malaysia. Nine new horizontal wells in two different fields were completed with AICDs to reduce the amount of water and gas production from these wells and to enhance the reserve recovery from the asset. The paper describes the workflow for establishing the suitability of candidates for the technology, the completion design process, and the enhanced production results of the program after 2 years production.

To reduce cost, drilling operations are getting longer, both in time and distance. Simultaneously, drilling parameters are optimized to reach higher performance for a maximum rate of penetration (ROP). The drawbacks of these practices are increased static and dynamic loads such as bending stresses, torque, and vibration on the drilling system. These parameters can greatly fatigue even the most robust drilling tools. Downhole drilling dynamics services must be used to ensure reliable operation with optimum performance.

This paper discusses the general challenge to balance reliability and performance. For this process, tools are needed to measure the respective downhole data. A database is required to help connect downhole dynamics data and surface data like drilling parameters such as weight on bit and rotary speed, with context data such as geological formation and system reliability. To analyze dependencies and optimization approaches, it is necessary to review the data in various ways and from different perspectives through the data sets. This review can be achieved by using crossplots in various dimensions.

The recording of downhole data with sampling rates exceeding 1000Hz and subsequent analysis of high-frequency drilling data provide insight into the excitation mechanism for vibrations. Additional statistical analysis of the data reveals the true load profile on the drilling system and its origin, enabling optimization in two ways. The tool or system design is optimized for reliability considering the identified loads, and the loads are minimized by optimizing the drilling parameters. Novel modeling techniques enable estimation of the dynamics load distribution over the bottomhole assembly (BHA), even from a single measurement position. Analysis shows that the main dynamic loads stressing the system are lateral vibrations and high-frequency torsional oscillations. Temperature effects also play a significant role for electronics. Statistical models support the decisions to retire tools or components and any re-run decision.

The use of drilling dynamics services and the real-time downhole data ensure informed decisions during the drilling process, optimized performance by minimizing loads on the system, and maximized ROP with optimal drilling parameters. The collected downhole data, in combination with context data and reliability data applied in the design process, lead to fit-for-purpose designs of the latest drilling tools.

A method of data-driven risk analysis has been developed and applied to improve the efficiency and effectiveness of inspecting surface corrosion of SS316 piping on the Gjøa platform on the Norwegian Continental Shelf. Using a probabilistic statistics method, in conjunction with a new digitized tool for inspection, reporting, and evaluation, inspection data on external pitting and crevice corrosion on each line were analyzed and used as the basis for estimating corrosion development rates to be expected for the coming years. The method uses advanced software and interative computation to calculate the risk of leakage of each line, which, in combination with the criticality of the pipe, provides a target schedule for the next inspection of each line. In effect, the data-driven model is an intelligent agent that generates a statistically based inspection program used to manage the risks of line failure while inspecting lines only when they need to be inspected. In the case study presented here, the asset owner was able to implement a schedule to reduce SS316 piping inspection by 70% over 4 years compared with a conventional risk-based inspection calling for more frequent inspection of the SS316 lines.

E&P Notes

ExxonMobil’s Eighth Discovery Off Guyana Adds Another Development Possibility

Matt Zborowski, Technology Writer

ExxonMobil said it has “encountered 78 m of high-quality, oil-bearing sandstone reservoir” near the Turbot discovery southeast of the Liza field offshore Guyana.

The supermajor’s eighth discovery in the burgeoning oil province could bring about a new development opportunity in the southeast portion of the 26,800-sq-km Stabroek Block. The first phase of development drilling on Liza field began in May.

The Longtail-1 discovery well was drilled to 5,504 m in 1,940 m of water by the Stena Carron drillship, which spudded the well on 25 May. It is the second discovery in that area after the Turbot discovery of late 2017. The two discoveries’ estimated recoverable resources total more than 500 million BOE, said ExxonMobil. 

GE To Spin Off Baker Hughes

Pam Boschee, Senior Editor

GE is spinning off Baker Hughes (BHGE) in its strategic plan for growth and shareholder value creation. It plans to focus on aviation, power, and renewable energy.

GE CEO John Flannery said these areas share technologies, digital and additive strategies, and business models.

The separation from Baker Hughes will take place over the next 2 to 3 years as part of GE’s effort to “make its corporate structure leaner and substantially reduce debt,” the company said in a statement. GE Oil and Gas merged with Baker Hughes in July 2017, with GE holding a 62.5% stake. BHGE’s revenue on an annualized basis is $22 billion.

GE Healthcare will also be separated into a standalone company, which will begin immediately and progress over the next 12 to 18 months. The spinoffs of BHGE and GE Healthcare are part of GE’s efforts announced last fall to sell $20 billion worth of assets.

The Big Unknowns for World’s Balancing Act of Supply and Demand

Trent Jacobs, Digital Editor

Last year was a dynamic one for both oil producers and consumers. For much of 2017, oil prices headed north but consumption still outgrew daily production—even as those totals were rising too.

The net effect was seen as a positive for what has been a chaotic oil market in recent years. However, an annual report from BP’s economic group that studies market forces for the company has raised questions about what could disrupt this tenuous balance going forward.

Driven by rising but still relatively low prices, 2017 saw world oil demand increase by an impressive 1.7 million B/D. This 1.8% increase stands above the 10-year average of 1.2% and marks the third year in a row that these figures have seen an uptick.

Equinor Releases Subsurface and Production Data From NCS Field

Stephen Whitfield, Senior Staff Writer

For the first time, the general public will have complete access to the subsurface and production data from a field on the Norwegian continental shelf (NCS). Equinor announced that it will disclose the data from Volve, a shallow-water oil field located in the southern part of the Norwegian North Sea approximately 125 miles west of Stavanger.

Following its startup in February 2008, Volve’s production lasted for approximately 8 years. It was originally scheduled for 3 to 5 years of operation. At its peak, the field produced 56,000 BOPD, and a total of 63 million bbl of oil were produced before the field’s shutdown in September 2016. Equinor said that one of the goals of the data release is to allow students from relevant fields of study to train on real data sets.

Equinor, ExxonMobil Rack Up More Brazilian Pre-Salt Acreage

Matt Zborowski, Technology Writer

Equinor secured interests in two of three blocks awarded 7 June during Brazil’s 4th pre-salt bid round, further expanding its footprint in the growing offshore province alongside ExxonMobil, Shell, BP, and Chevron.

Three of four blocks were awarded overall, each of which will be operated by Petrobras. The state-owned firm has a right of first refusal to petition the government to operate all pre-salt blocks offered. The round received some $800 million in signing bonuses and $190 million in planned exploration investments.

The Norwegian firm took a stake in the highly coveted Uirapuru block in the Santos Basin with partners ExxonMobil and Petrogal Brasil. Petrobras exercised its right to enter the consortium and will be the operator with a 30% interest. Equinor and Exxon-Mobil will each have a 28% stake, with Petrogal Brasil holding the remaining 14%.

Equinor this year contracted Seadrill’s West Hercules semisubmersible rig for exploration drilling in the Barents Sea. Operators are drilling more exploration wells than in recent years and developing a high number of projects on the Norwegian Continental Shelf (NCS), but even more activity will be needed into the next decade to prevent a drop-off in production. The Norwegian Petroleum Directorate (NPD) projects 40–50 exploration wells will be drilled this year, an increase from 36 in each of the last 2 years, fueled by higher, more stable oil prices and better knowledge and data relating to the offshore acreage. Thirty wells are expected to be spudded in the North Sea, with 8–10 in each of the Norwegian and Barents Seas. During this year’s first half, 13 exploration wells yielded six discoveries, of which half came in the North Sea, two in the Norwegian Sea, and one in the Barents Sea.

Equinor this year contracted Seadrill’s West Hercules semisubmersible rig for exploration drilling in the Barents Sea. Operators are drilling more exploration wells than in recent years and developing a high number of projects on the Norwegian Continental Shelf (NCS), but even more activity will be needed into the next decade to prevent a drop-off in production. The Norwegian Petroleum Directorate (NPD) projects 40–50 exploration wells will be drilled this year, an increase from 36 in each of the last 2 years, fueled by higher, more stable oil prices and better knowledge and data relating to the offshore acreage. Thirty wells are expected to be spudded in the North Sea, with 8–10 in each of the Norwegian and Barents Seas. During this year’s first half, 13 exploration wells yielded six discoveries, of which half came in the North Sea, two in the Norwegian Sea, and one in the Barents Sea.

GE announced today that it is spinning off Baker Hughes (BHGE) in its strategic plan for growth and shareholder value creation. It plans to focus on aviation, power, and renewable energy. GE CEO John Flannery said these areas share technologies, digital and additive strategies, and business models. The separation from Baker Hughes will take place over the next 2 to 3 years as part of GE’s effort to “make its corporate structure leaner and substantially reduce debt,” the company said in a statement. GE Oil and Gas merged with Baker Hughes in July 2017, with GE holding a 62.5% stake.

GE announced today that it is spinning off Baker Hughes (BHGE) in its strategic plan for growth and shareholder value creation. It plans to focus on aviation, power, and renewable energy. GE CEO John Flannery said these areas share technologies, digital and additive strategies, and business models. The separation from Baker Hughes will take place over the next 2 to 3 years as part of GE’s effort to “make its corporate structure leaner and substantially reduce debt,” the company said in a statement. GE Oil and Gas merged with Baker Hughes in July 2017, with GE holding a 62.5% stake.