Hoop High Hopes and Challenges Bernhard Krainer | OMV (Norge) AS - - PowerPoint PPT Presentation

Hoop High – Hopes and Challenges

Bernhard Krainer | OMV (Norge) AS

2 | OMV (Norge) AS, March 11, 2015

Annual SPE Workshop in Arctic Norway

The Workshop focuses on technical and

• perational challenges in a cost effective

perspective for the arctic region within reservoir drainage strategy, reservoir management, drilling & well, subsea and hardware.

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Content

Introduction - OMV in Norway Wisting Discovery General Challenges Reservoir Challenges Facilities Requirements Drilling in Shallow Reservoir Summary Location and weather Stakeholders

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Build up of significant asset portfolio since 2007

Exploration Appraisal Selection / FEED Production Execution

Zidane Gullfaks Edvard Grieg,

Production ~50 kboe/d by end 2014 up to 80kboe/d in 2017 OMV position

36 Licences 9 Operated Zidane Edvard Grieg Aasta Hansteen Polarled Ivar Aasen Gullfaks Gudrun Wisting Luno II Shetland/Lista

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Skijumping: Main Sponsor of Norwegian National Team

6 | OMV (Norge) AS, March 11, 2015 Hanssen Wisting

OMV: Barents Sea Portfolio & PL 537



11 Licences in Barents



2 operated



PL 537 awarded Q2/2009



3D shot in 2009



Prospect defined 2010



2 wells in Q3/Q4 2013



1 well in Q2 2014



License extension to May 15, 2016



Appraisal Programme



2015: Drill Bjaaland



2016: Plans for up to two additional wells

HOOP HIGH

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

Wisting consist of 5 segments:



Wisting Central

• Drilled 2013



Wisting Central West



Wisting Central South



Hanssen

• Drilled and tested 2014



Hassel



Bjaaland

• Planned for Q2/2014



Total Wisting Resources in PL 537

PL 537 Wisting : Structure & Resources

Stø + Fruholmen

P90 P50 P10 MMSTB MMSTB MMSTB

Recoverable Res. 200 300 500

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

Well Objectives:



Test Jurassic prospectivity (Stø Formation)



Well Results:



Very shallow reservoir – only 250 below seabed



Upper part homogeneous with good properties,



Lower part heterogeneous; but still sand rich



Well with 50-60m oil column;



Central segment 60-160 mmbo recoverable oil



Extensive data acquisition and sampling , no DST



Secondary Target:



Snadd Formation, tight, shows only

7324/8-1 Wisting Central Well Summary- Discovery Well – Sept 2013

Wisting Central

AI

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Content

Introduction - OMV in Norway Wisting Discovery General Challenges Reservoir Challenges Facilities Requirements Drilling in Shallow Reservoir Summary Location and weather Stakeholders

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Wisting has some unique conditions

 Shallow reservoir  250m below seabed  Reservoir conditions  Low Pressure 70 bars  Low Temperature 16°C  No comparable case studies  Other Realgrunnen prospects/leads

• n Hoop High will – if successful - face

equivalent challenges

Reservoir Challenges

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Drive Mechanisms

 How strong is aquifer ?  Current reference studies includes:  Water injection as drive mechanism  Horizontal production wells  Subsea multi-phase pumps

Recovery Factor

 A big uncertainty

 Ranges from low 20’s to 50+ %  ? Contribution from heterogeneous part

 Major influence on economics

Reservoir – how much can we get out?

45 55 80 20

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Well Design and Planning

 Well design limited by kill simulation

results

 Cap rock integrity & barrier placement  BHA design (high dog legs, limited

weight on bit, high surface RPM)

 Uncertainties in building behavior  Hole cleaning in low pressure /high

permeable sandstone reservoir

 Challenging completion design

Horizontal Wells: None drilled offshore at this depth

Horizontals would be essential for development concept - less wells and higher recovery Prove feasibility of horizontal wells for Concept Selection

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Subsea

 Wells distributed over a large area  Not much pressure to “play with”  Pressure boosting required to keep flow rates high and back

pressure on wells low.

 Trade-off between CAPEX (pre-installed equipment and piping) and

production rates

Facility Challenges – Sub-Sea

Work in progress: All boosting mechanisms (sub-sea and down-hole) Experience transfer (partners, leading vendors ) for “sub-sea factory” equipment

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Hydrates:

 Early field life - Low temperatures, low pressures. Outside hydrate

zone.

 Late field life - higher water cut, higher density - pressurizes fluid into

the hydrate zone. Wax:

 Studies ongoing to determine impact  Round trip pigging - adds to sub-sea CAPEX

Solutions under review: Hot oil circulation, direct electrical heating, chemicals

Facility Challenges – Flow Assurance

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HOOP High is far off existing Infrastructure - not like in North Sea – Stand alone solution needed

 Potential oil development at Wisting, but limited associated gas  GOR 37-50 Sm3/Sm3  Need to maintain oil rate for sufficient gas to power generation  No opportunities to buy/import from a near-by gas export line  Too far for Power from Shore

Solutions under review: Re-inject excess gas in early life, produce back in late life (needs sub-surface studies) or dual fuel solutions

Facilities Challenge - Power supply

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 Floater concept – 400 water depth,  What type of floater  Ship, Spar, Buoy-shaped?  How big – capacity, storage needs  Wisting only  Hub concept for area  Overall design concept  Winterization  low maintenace  new standards?  Export – shuttle tanker (Veidnes) or pipeline

Facility Challenge: Installation Design

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 Remote location  Northernmost discovery ever in Norway

(310 km from Hammerfest)

 Low density of resources in the area  Medevac to Tromsø, up to 4 hours or more  Telemedicine solution plus two nurses on board  Long periods of dense fog expected  Evacuation solution independent of Helicopters  Stand by vessel with capability to operate in harsh

weather is the primary resourse

Location Challenge - HSSE

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 Long-term observations & detailed data for Hoop Area are sparse  PL537: Metocean buoy installed at Wisting  Collaborating with other Barents Sea operators and relevant

Authorities to expand knowledge of Barents Sea operating conditions

 Polar lows, fog in summer, prevailing wind directions etc.  Barents Sea in general more “friendly” met-ocean conditions than

Norskehavet

 Collaboration to better understand the marginal ice zone eco-system

Location Challenge – Weather & Environment

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Location Challenge – Oil Spill

 Extensive simulations of diverse spill scenarios based on actual oil

and reservoir properties

 Strict oil spill recovery requirements  Spill detection within one hour  SECurus detection system (radar plus IR)  NOFO vessel at location  Full barrier I and II in place within 24 hrs  DST was seen by satellite...

Formal collaboration agreement with main Barents sea operators

• n a wide range of arctic HSSE issues in place now.

 Barents Sea Exploration Collaboration (“BaSEC”) established on

March 9, 2015

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Location Challenge – Where is the Ice?

Average sea ice concentration map for December Average sea ice concentration map for January HOOP HIGH HOOP HIGH

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 Local Communities & Stakeholders  Fishing & Tourism  NGO’s & Climate Change Discussion

Non-Technical Challenges



Image taken from Transocean Barents, May 31, 2014

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 Resources:  Wisting – has proven up material subsurface potential – a shallow

and unique reservoir in Jurassic Realgrunnen

 Other plays – Snadd & Kobbe (Triassic) – attempted but not

successfull to date

 Development challenges  Primarily driven by resource volumes & shallow reservoir  Secondarily by limited infrastructure and logistics for location  Commercial challenges (oil price ..) need to be resolved  Way Forward  Confirmation of additional potential in the future (23rd Round fwd.)

will provide for development of hubs & regional infrastructure

 OMV committed to mature Wisting and establish a PDO in 2019

Hoop High Challenges – Conclusions

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Content

Introduction - OMV in Norway Wisting Discovery General Challenges Reservoir Challenges Facilities Requirements Drilling in Shallow Reservoir Summary Location and weather Stakeholders

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Thank you!

Bernhard Krainer | OMV Norge AS Bernhard.krainer@omv.com