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From Exploration to Production in 12 Months

Often, when exploration is mentioned, it conjures up wells drilled in far-flung and remote parts of Russia, such as Southern Tyumen (Uvat) or regions in the far north (Bolshekhetsky). These Greenfield areas are critical to the Company's mid to long term growth, with limited potential for short term production; meanwhile, around half of TNK-BP's exploration activity occurs in Brownfield areas. These areas are typically within mature oil basins or close to existing fields (within 50 km)

The enabling technologies of cheap, modern, high-quality 3D seismic, its integrated and rapid interpretation and improved sedimentary understanding have allowed smaller oil traps to be identified, at the same time lowering their risk. Once discovered, these fields can be economically developed because they are close to existing fields, reducing tie-in costs and allowing use of existing infrastructure (i.e., roads and power) and facilities (i.e., oil processing and water injection), while the spare export capacity allows easy transport to market for the hydrocarbons.


This means that developments will cost much less than in new Greenfield areas, and their development and subsequent production can be achieved far more rapidly. The combination of advanced technology and available infrastructure allows smaller discoveries to come promptly on line where five years ago this would not have been possible.

In Orenburg, discoveries made over the last four years have been brought into production within 18 months and now contribute around 3 percent of Orenburg's production. This is set to grow significantly in the future.

TNK-BP's key Brownfield exploration areas are Orenburg / Samara and West Siberia (around Kamennoye (West KhMAO) and Samotlor (East KhMAO) respectively) (Fig. 1).




Application of Appropriate New Technology in Brownfield Areas

The use of new technologies and techniques to unlock the remaining potential of the Brownfield regions is key to their success, as overspending or slow turnaround easily erodes the value of these small projects.

Affordable, high-quality 3D seismic is only now being used within Brownfield areas of Russia for exploration. The quality allows smaller structures to be defined structurally, with significantly improved certainty and correspondingly lower risk. The seismic can be acquired quickly and processing in TNK-BP's Dedicated Processing Center (DPC) ensures clearest focus, quickest turn-around time and highest quality. In addition, it allows a direct link between the client (interpretation team) and the processors. In priority projects, fast-track processing can produce good-quality seismic cubes within three months of data delivery.

3D seismic is not just used to create an exploration well location but can produce 3D geological models even prior to drilling; this helps speed up appraisal and development planning post discovery. Modern interpretation packages (for example, Petrel*) are capable of running on a laptop computer and can be used to rapidly interpret the new seismic. Framework horizons can be produced in an afternoon when five years ago it would have taken a week to produce the same results. This allows the interpreters to easily refine maps and also frees them up to focus on the details around prospects. In addition, the software allows the entire exploration team to work on the data from maps based on seismic and geological studies to build reservoir models. This level of integration allows numerous data sources to be integrated into a single project, shared across the team, and results are modified rapidly.

Multi-disciplinary teams, sharing the same goals and sitting together, allow each team member to interact on the problem, giving their perspective and allowing the free flow of ideas. All this speeds up interpretation work and improves prospect generation and risk. The use of Visual Modeling Center (VMC) style forums to share information and results with regionally based teams in real time has improved communication and built trust.

The need for geological understanding of the entire petroleum system from regional to prospect through Gross Depositional Environment mapping (GDE) has led to refocusing of exploration analysis to include reservoir distribution along with previously overemphasized structural controls. The understanding of why oil is or is not present in certain areas allows better predictions of the sweet spots for exploration and appraisal (E&A) activity and license acquisitions.

Exploration Success in Orenburg

Orenburg region can be taken as an excellent example of Brownfield E&A where exploration discoveries have been fast-tracked into responsible production within about 12 months. Orenburg is an oil-rich region and part of the enormous Volga-Urals basin which has been in production since the 1930s and, prior to the discovery of West Siberia in the early 1960s, was the main oil and gas production area of Russia.

The assumption is that this is a very mature basin with little exploration potential. Nonetheless, since the formation of TNK-BP in 2003, exploration in Orenburg / Samara has added 22 mln t of new recoverable oil reserves (classified as C1+C2). In addition, we currently have 9 exploration license areas, five of which have been purchased since 2004, and we have acquired 4,000 sq. km of 3D seismic. The regional GDE and composite common risk segment (CCRS) descriptions, typical modern exploration tools, were completed in 2006.

TNK-BP's 2007 plan is to drill 11 exploration and appraisal (E&A) wells and acquire 1,200 sq. km seismic. Many more license acquisitions and wells are planned. A simple statistical technique can be used to estimate the number of undiscovered fields. It suggests there could be more than 500 individual traps of between 6 mln t and 60 mln t OOIP (original oil in place) left to find within the Volga-Urals basin, giving a total OOIP of close to 6 bln t (risked).

Within Orenburg, there are a number of exploration discoveries that have either already been fast-tracked to production or are in the early stages of this process. These include the three successful discoveries around the Sorochinsko-Nikolsky license area which are all on their way to production, and the Buzuluk license area which is still in the exploration stage.

Sorochinsko-Nikolskaya Group of Fields

The license block of Sorochinsko-Nikolsky is located in central Orenburg. The fields have been in production for 40 years or more and are a series of domes, discovered without the aid of seismic tools. A modern seismic survey was acquired and, based on its interpretation, three major new prospects (domes) were identified (Fig.2).

Map of the existing and new domes within the group of fields

The first Borodinovsky dome was drilled in 2004-2005 by well 900, which was put on test production during the first half of 2006, producing 20,000 t of oil. Follow-up appraisal is planned and, once completed, the wells will then be turned to production. Subsequently, Verkhne-Nikolsky dome was drilled by well 901 in 2006, and Novo-Lvovsky by well 910 in 2007, and both plan to be in production this year. Follow-up appraisal is budgeted for 2007-2008 with approved pilot development plans. These discoveries have a total potential of about 10 mln t to 20 mln t of reserves between them.

Buzuluk License Area

This license project is still in the exploration stage; but a 1,100-square-kilometer, 3D seismic survey was completed in 2006 and is still undergoing processing. Numerous new prospects have been identified and wells are planned for late 2007, continuing on for five years, combining both new-play exploration and little "e" exploration and appraisal.

The planned development tie-up time is three to six months following discovery, with full appraisal within two years.

Specialists believe that this rapid turnaround time, coupled with existing capacity within the oil facilities, will allow significant value to be obtained from relatively small reserves. Thus, exploration activity does not deliver just long-term renewal projects, but within specific areas it can deliver near-term production as part of a framework of responsible field developments. Activity in Brownfield areas can deliver high-commercial-value projects that compete very favorably with their larger cousins in the Greenfield areas and help TNK-BP grow short-term production while retaining excellent capital returns.

TNK-BP: Bringing Cutting-Edge Seismic Technology to Russia

Forecasts show that in 2007 almost one-third of all 3D seismic surveys in Russia will be performed on the Company's order. In a five-year outlook, we plan to do at least 5,000 sq. km of 3D surveys per year. This work is expected to cost about $120 mln per year. Such major investments result from the fact that upstream development groups have come to realize the value of 3D seismic data and have committed to cover all major fields of TNK-BP with 3D surveys.

Marketing research annually performed by Seismic Technology Dept. of TNK-BP shows that over the last three years, the Company has been one of the largest customers of 3D seismic survey services in Russia. Modern seismic surveys are the most effective exploration method in the oil and gas industry; they also provide a key tool for optimizing development of current main upstream assets. The priority task for seismic is to reduce risks associated with drilling and add to the Company's reserves.

Among the main tasks currently faced is delivery of an integrated seismic program, which consists of exploration and development surveys. Another priority is collection of high-quality, world-class seismic data at minimal cost. In addition, TNK-BP pays a lot of attention to HSE compliance and introducing latest seismic technology.

To date, 3D surveys have covered about 35 percent of the total area of the Company's major fields. Since 2004, the company have systematically performed 3D seismic surveys on all major producing assets of TNK-BP, Samotlor, Vostochno-Urengoyskoye, Talinskoye, and Kamennoye fields. Last year, we started to actively implement 3D seismic in exploration for the first time. Prior to this, in most cases we used 2D survey methods that failed to properly delineate reservoirs and provide a good understanding of the relationship between the adjacent field and prospective structures.

Work to Obtain Quality Data

To ensure that the TNK-BP seismic program is successful, the Seismic Technology department has implemented an effective project management process. We have introduced a reporting system that uses the latest Internet based communications. Contractors use the system to report on work progress on a daily basis. Every day, the information on all projects is recorded in a single database for Seismic Technology. This allows us to trace any change and make appropriate balanced and effective decisions.

In addition to managing seismic operations, the Company controls the quality of seismic data to ensure that it complies with our high standards. Over the last three years, we have implemented a number of projects that substantially improved the quality of data:

Only the best contractors have been pre-qualified for seismic projects (Bashneftegeofizika, TNG-Group, Tyumenneftegeofizika, Petroalliance). These contractors have sufficient experience as well as equipment, financial resources and HSE performance.

Since 2003, the density of seismic data collected has tripled and is currently 115,200 traces per sq. km. This parameter quantifies the quality of data. Fig. 3 shows a sample of high-density 3D data.

New 3D seismic map from the top Tournaisian within the Buzuluk license area

Thanks to broad-band Internet connection between the contractor's office and TNK-BP, we were able to set up a continuous quality control of field operations and seismic data processing.
We have established a dedicated Data Processing Center (DPC) managed by global leader WesternGeco. This allowed us to consolidate and implement the best Western and Russian practices in seismic data processing. Good results from the DPC work have led to extension of the contract with WesternGeco for another three years in 2007.

In 2006, the Company implemented a practice of signing long-term contracts for seismic projects. TNK-BP has long realized the advantages provided by long-term contracting but started using this approach only last year. By using this approach, we can attract the best contractors in a very tight seismic services market, keep control over cost inflation, foster development of the seismic services market and manage and mitigate HSE operational risks. Other advantages of long-term contracting include detailed planning of the entire seismic survey cycle a year prior to the beginning of data collection (project feasibility study, scouting, seismic modeling). All this in the end helps to reduce the time between a first seismic shot and the start of drilling and hence reducing seismic cycle time.

Other Initiatives in 3D Seismic

Regardless of achievements, Seismic Technology continues to develop in terms of both project management and introduction of new technology. For more detailed planning of seismic projects, we use modern topographic data such as aerial photography images and LiDAR data (Light-Imaging Detection and Ranging). LiDAR is a technology that can produce extremely accurate 3D elevation models overlapped with aerial photography images in actual coordinated system).

We continuously work with our contractors on improving HSE performance. In 2006, for the first time in Russia, we have tested summer-season collection of 3D seismic data. This technology is no different from the winter method, but there are higher requirements to data acquisition systems and special vehicles are used that minimize the impact on environment. If application of this method proves to be successful, the Company will be able to increase the annual volume collected seismic data and therefore speed up the exploration and development progress.

Nicholas Whiteley, Team Leader, Brownfield E&A, Exploration, Technology
Dmitry Zolotarev, Chief Specialist, Brownfield E&A, Exploration Technology
Maria Konstantinova, Specialist, Brownfield E&A, Exploration Technology
Alexander Fokin, Chief Specialist, Brownfield E&A, Exploration Technology
Artem Zhukov, Chief Specialist, Seismic Technology, Exploration, Technology

Labels: 3D seismic, gas, oil, Orenburg, Russia, TNK BP

posted by The Rogtec Team @ 17:25 

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