Drilling of High Temperature Wells Cost Analysis Kristinn Ingason - - PowerPoint PPT Presentation

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Drilling of High Temperature Wells Cost Analysis Kristinn Ingason - - PowerPoint PPT Presentation

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Drilling of High Temperature Wells Cost Analysis Kristinn Ingason and Matthas Matthasson Geothermal Power Plants in Iceland Reykjanes Hellisheii Nesjavellir Krafla Svartsengi July 2, 2007: Engine Rough Break Down of Geothermal Power

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SLIDE 1

Drilling of High Temperature Wells Cost Analysis

Kristinn Ingason and Matthías Matthíasson

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SLIDE 2

July 2, 2007: Engine

Geothermal Power Plants in Iceland

Reykjanes Nesjavellir Hellisheiði Krafla Svartsengi

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SLIDE 3

July 2, 2007: Engine

Rough Break Down of Geothermal Power Plant Total Cost

DRILLING STEAM SUPPLY EL-MECH BUILDINGS 10 20 30 40

PERCENTAGE OF TOTAL COST

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SLIDE 4

July 2, 2007: Engine

Drilling in Iceland

 Drilling contracts are mainly based on footage

rate

 Contract sizes: 1 – 30 wells  One dominant drilling contactor: Jarðboranir

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SLIDE 5

July 2, 2007: Engine

High Temperature Wells

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SLIDE 6

July 2, 2007: Engine

Brake Down of Total Drilling Cost

 Preparation including drilling pad, water

supply, surface casing

 Drilling including material  Completion after drilling including wellhead,

silencer, drainage system

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SLIDE 7

July 2, 2007: Engine

Brake Down of Total Drilling Cost

9% 73% 18% PREPARATION DRILLING COMPLETION

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SLIDE 8

July 2, 2007: Engine

Estimated Total Drilling Cost

 Production part: ø8 1/2”  Depth of 2000 m  Vertical well  Including design, supervision and contingency

Estimated Cost: ~225 MISK or 2,6 MEUR

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SLIDE 9

July 2, 2007: Engine

Different Type of Wells

 Production part

 ø8 1/2”  ø12 1/4”

 Directional drilling

 Inclination 30 – 40°  700 - 900 m horizontal displacement of 2000 m

well

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SLIDE 10

July 2, 2007: Engine

Total Cost of Drilling different Types of Wells

VERTICAL DIRECTIONAL VERTICAL DIRECTIONAL 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160

ø12 1/4" WELL

DRILLING OTHER WORK MATERIAL PREPARATION COMPLETION

ø8 1/2" WELL

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SLIDE 11

July 2, 2007: Engine

Brake Down of Drilling Cost

 Drilling  Other work such as running a casing, cementing  Material such as casing, cement

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SLIDE 12

July 2, 2007: Engine

Brake Down of Drilling Cost for Different Well Type

VERTICAL DIRECTIONAL VERTICAL DIRECTIONAL 10 20 30 40 50 60 70 80 90 100

ø12 1/4" WELL DRILLING OTHER WORK MATERIAL ø8 1/2" WELL

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SLIDE 13

July 2, 2007: Engine

Drilling Phases

I.

Anchorage casing

II.

Production casing

III.

Production part

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SLIDE 14

July 2, 2007: Engine

Brake Down of Cost for Drilling Phases

I II III TOTAL 10 20 30 40 50 60 70 80 90 100

DRILLING OTHER WORK MATERIAL ø8 1/2" WELL

PHASES

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SLIDE 15

July 2, 2007: Engine

Fixed Cost and Variable Cost in Drilling

 Fixed cost

 assembly of drill string  installation of safety valves

 Variable cost

 Drilling  Running and cementing casings, material included

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SLIDE 16

July 2, 2007: Engine

Drilling Cost as a Function of Well Depth

20 40 60 80 100 120 140 160 180 2200 2000 1800 1600 1400 1200 1000 800 600 400 200

DEPTH [m] PERCENTAGE OF VERTICAL ø8 1/2" WELL

VERTICAL ø8 1/2" WELL

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SLIDE 17

July 2, 2007: Engine

Drilling Cost as a Function of Well Depth

20 40 60 80 100 120 140 160 180 2200 2000 1800 1600 1400 1200 1000 800 600 400 200

DIRECTIONAL ø8 1/2" WELL

DEPTH [m] PERCENTAGE OF VERTICAL ø8 1/2" WELL

VERTICAL ø8 1/2" WELL

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SLIDE 18

July 2, 2007: Engine

Drilling Cost as a Function of Well Depth

20 40 60 80 100 120 140 160 180 2200 2000 1800 1600 1400 1200 1000 800 600 400 200

VERTICAL ø8 1/2" WELL DIRECTIONAL ø8 1/2" WELL VERTICAL ø12 1/4" WELL

DEPTH [m] PERCENTAGE OF VERTICAL ø8 1/2" WELL

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SLIDE 19

July 2, 2007: Engine

Drilling Cost as a Function of Well Depth

20 40 60 80 100 120 140 160 180 2200 2000 1800 1600 1400 1200 1000 800 600 400 200

DIRECTIONAL ø8 1/2" WELL DIRECTIONAL ø12 1/4" WELL VERTICAL ø12 1/4" WELL

DEPTH [m] PERCENTAGE OF VERTICAL ø8 1/2" WELL

VERTICAL ø8 1/2" WELL

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SLIDE 20

July 2, 2007: Engine

Drilling Cost as a Function of Well Depth

10 20 30 40 50 60 70 80 90 100 2000 1500 1000 500

PERCENTAGE OF DRILLING COST DEPTH [m]

VERTICAL ø8 1/2" WELL

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SLIDE 21

July 2, 2007: Engine

Drilling Cost as a Function of Well Depth

10 20 30 40 50 60 70 80 90 100 2000 1500 1000 500

PERCENTAGE OF DRILLING COST

DIRECTIONAL ø8 1/2" WELL

DEPTH [m]

VERTICAL ø8 1/2" WELL

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SLIDE 22

July 2, 2007: Engine

Drilling Cost as a Function of Well Depth

10 20 30 40 50 60 70 80 90 100 2000 1500 1000 500

VERTICAL ø12 1/4" WELL DIRECTIONAL ø8 1/2" WELL

DEPTH [m] PERCENTAGE OF DRILLING COST

VERTICAL ø8 1/2" WELL

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SLIDE 23

July 2, 2007: Engine

Drilling Cost as a Function of Well Depth

10 20 30 40 50 60 70 80 90 100 2000 1500 1000 500

PERCENTAGE OF DRILLING COST

DIRECTIONAL ø12 1/4" WELL VERTICAL ø12 1/4" WELL DIRECTIONAL ø8 1/2" WELL

DEPTH [m]

VERTICAL ø8 1/2" WELL

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SLIDE 24

July 2, 2007: Engine

Development of Drilling Cost

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0,6 0,7 0,8 0,9 1,0 1,1 1,2 1,3 1,4

PRICE INDEX CORRECTION

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SLIDE 25

July 2, 2007: Engine

VGK-Hönnun hf. Grensásvegur 1, 108 Reykjavik, Tel: (+354) 422 3000 Web: www.vgkhonnun.is / E-mail: vgkhonnun@vgkhonnun.is