ASSESMENT OF INTELLIGENT WELL COMPLETION AS A METHOD OF IMPROVING OIL PRODUCTION

ABSTRACT

There is usually huge amounts of oil and gas that is left unrecovered. However, new technologies and innovations are used in improving the recovery of hydrocarbon, such as integrated reservoir management. Intelligent well completions are one of the technologies that improve integrated reservoir management and, as a result, hydrocarbon recovery. This work would present a comprehensive review of intelligent well completions, guidelines to help in evaluating whether intelligent well completions should be implemented or not and evaluate various case studies of intelligent well completions.

The case studies are from three different hydrocarbon reservoirs where intelligent well completions had been used. To compare intelligent and non-intelligent completions, the efficiency of data acquisition for reservoir management, incremental oil production, and profitability criteria were employed. The net present value, discounted payout period, internal rate of return, profitability index, and growth rate of return are all yardsticks used in economic analysis.

When compared to non-intelligent well completions, using intelligent well completions in reservoir management can result in a 10% to 25% increase in oil recovery. The IRR of conventional completions is around 37%, while that of intelligent well completions is around 40%. Hence, the intelligent well completion is economically better. However, it should be noted that if an intelligent system fails, intelligent well completion initiatives may become economically undesirable.

The findings of this study can be used to evaluate the feasibility of conducting an intelligent completion project, especially in fields where intelligent completion has yet to be deployed as a reservoir management approach.

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF STUDY

In the oil and gas production (E&P) industry, reserves are by far the most valuable asset. Because every E&P firm aims to maximize long-term profit, the industry focuses on increasing a field’s future recovery while keeping expenses low. However, a significant portion of the hydrocarbons on site are not recovered; only around 35% of the hydrocarbons in the reservoir are produced, leaving the remaining 65% unproduced. Sound reservoir management procedures are developed to increase recovery from the enormous amount of hydrocarbon resources that exist around the planet. Integrated reservoir management is a continual process that is required for a reservoir’s long-term viability. A combination of multi-disciplines and technology resources is required to increase revenues. Depletion and understanding of the developmental, data collection and data analysis, geological and numerical model investigations, production and reserve projections, comprehension of facility requirements, and financial optimizations are all part of a comprehensive reservoir management strategy. These can help with reservoir management, that will help with hydrocarbon recovery (Satter, 1994). Intelligent well completion is part of the overall reservoir management optimization approach.

An intelligent well completion (IWC) is a well completion system that can measure, transfer, and evaluate well-bore production, reservoir, and completion integrity information, as well as perform remote actions such as changing valve chokes and optimizing these parameters to improve reservoir, well, and production processes (Eni, 2006 ). The phrase

“intelligent completion” refers to a manual interface that transmits orders to the well. It has nothing to do with autonomous self-control (Robinson, 2007). Permanent pressure and temperature sensors are utilized to continually monitor reservoir characteristics for each zone, and valve chokes are re-configured to allow production from numerous zones to be piped through a single string or well. Remote completion monitoring is the capacity of a technology to send data obtained in or near the well-bore while treatment is available and entry for traditional well intervention. As a consequence, IWC technology will allow conventional or multi-lateral wells to function with more flexibility, because each branching of the well may be controlled independently (Yeten, 2004).

The capturing and sending system, flow control valves (FCV), and actuation system are the three primary components of IWC. The acquisition and transmission system consists of a set of devices that send and collect reservoir data, while the FCVs control the flow rate from a zone or level. The fabrication techniques, on the other hand, is a collection of devices that power the valves (Eni, 2006).

IWC provides a variety of benefits over traditional completions. IWC’s primary objectives are to optimize, optimize, and anticipate oil recovery, manage gas and water breakthroughs, reduce costs, and improve safety. Intelligent completions optimize zero intervention wells, particularly subsea or remote location wells, as well as resource optimization for various strands reservoirs (concurrent output), horizontal wells, complicated reservoir development, auto gas lift, and other factors (Eni, 2006).

Reservoir characterisation, production efficiency, fluid interactions, gas and water coning, as well as other variables all influence IWC’s full potential. Damage to the control lines, wires, and sensors that make up an IWC’s neurologic and cardiovascular systems might result in partial or total loss of operation. System failure is a possibility with sand control, for example, owing to erosion of choke components, seal surfaces, control lines, as well as device vibration. Intelligent completions having high dependability are necessary to avoid work-over operations, but down-hole reservoirs information surveillance and evaluation, as well as choke characteristics, are essential to sustain production optimization throughout the reservoir’s lifetime (Robinson, 2007).

1.2 PROBLEM STATEMENT

1.2.1 PROBLEM IDENTIFICATION

Intelligent well completion is considered as a new method to reservoir management. Hence, it requires more research. The aim of this study is to answer the following important questions :

• How much does  IWC   help   with   data   collection     for     reservoir management?
• In respect of production of oil, water and gas production, how much does IWC improve reservoir performance?
• To what extent is IWC an economically viable option.

1.2.2 SIGNIFICANCE OF PROJECT

This model will provide you a clear picture of IWC. The Mbal program, a commercial reservoir simulator, will be utilized to undertake IWC investigations. Furthermore, an economic study will be conducted to determine the IWC’s economic feasibility in comparison to conventional wells.

1.3 OBJECTIVES

The objectives of this study are:

• To estimate the incremental or increased oil output from using IWC as a method for reservoir management .
• To access the economic and financial Justification of IWC when compared to conventional well completions.
• To assist reservoir management teams in deciding whether or not to use intelligent completion.

1.4 SCOPE OF STUDY

The evaluations of four (4) IWC reservoirs was the subject of the case studies given in this research. Production and recoveries, water/gas production management, and cost implications, including OPEX, CAPEX, and profitability indicators like Present Value (NPV), Payout Time (PO), Profitability Index and Growth Rate of Return (GRR) were all investigated.

The reservoir simulation was carried out using Mbal software.

1.5 RELEVANCY OF PROJECT

The amount of accessible petroleum in a reservoir is approximated to be around 35 % hydrocarbons, leaving 65 percent untapped. Effective reservoir management procedures, such as intelligent well completions, are required to increase recovery from the vast quantities of residual hydrocarbons across the world. Intelligent well completions (IWC) produce better recovery and production than standard well completions.

The study carried out on IWC is through simulation (Mbal simulation software) to understand and access economic viability of IWC. This project would help in the utilization and implementation of IWC in the oil and gas industry.

ASSESMENT OF INTELLIGENT WELL COMPLETION AS A METHOD OF IMPROVING OIL PRODUCTION

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