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Wednesday, 27 May 2009

Russian and Caspian Oil and Gas News in ROGTEC

NEWS

Lukoil technique recognized as one of Russia's best inventions
LUKOIL specialists were awarded a diploma by the Federal Service for Intellectual Property, Patents and Trademarks (Rospatent) in the nomination "Russia's 100 Best Inventions". The diploma was awarded for RF patent No. 2335628 on invention of the technique for "local directional hydraulic reservoir fracturing at oil or gas fields".

The team of inventors includes: Dzhevan Cheloyants, OAO LUKOIL Vice President, Head of the Main Technical Division, Mikhail Vyatchinin, Deputy Head of the Main Division of Oil and Gas Production, Vladimir Titievsky, Head of the Division of Oil Production, Yuri Ikonnikov, Head of the Oil Production Section, and Robert Ramazanov, Head of the Oil Production Servicing Section.

The technique is aimed at production enhancement of oil, gas and gas-condensate fields and, particularly, of mature fields characterized by high water production and occurrence of lost-circulation and blind zones which are insusceptible to application of common production techniques.

Kamennoye Progress Pleases TNK-BP
TNK-BP says its Kamennoye field one of the oldest in west Siberia and only a decade ago widely viewed as impossible to develop - should soon provide a big boost to output growth. Development of the 2bn bl field in the Khanty-Mansiyisk district is one of three projects on which TNK-BP is focusing this year, the others being the Uvat and Verkhnechonsk greenfields. The firm says making crude extraction from Kamennoye economically viable was particularly challenging as the geology is more complicated than at any of its more recent developments.

Since 2004, TNK-BP has invested $600mn in Kamennoye and plans to invest $700mn more in 2009- 13, including $250mn this year.

Gazprom grabs 20% of Sakhalin-1 gas
The Sakhalin-1 consortium reportedly has agreed to sell 20% of the natural gas extracted from the project to Russian monopoly Gazprom. US supermajor ExxonMobil operates Sakhalin-1, on the Russian Pacific coast island of the same name, in cooperation with Russian state oil firm Rosneft, Japan's Itochu, Japanese outfit Marubeni and India's ONGC.

Gazprom has long said it needs the gas produced at Sakahlin-1 to cover domestic needs, while ExxonMobil has long-stated it is looking for the best price, though has eyed major importer China for some time. The project has been producing oil for several years and reached peak production of 11.2 million tonnes in 2007.

Roxi duo pass the test
Kazakhstan-based oil explorer Roxi Petroleum has successfully tested two wells in central Kazakhstan. The company said it estimated reserves of 13 million barrels of C1 and 5 million barrels of C2. Roxi said the average daily test production from the NW Konus field is 1000 barrels of oil per day.

Russia and Serbia prime gas pact
At the time of going to press, Serbia's gas monopoly Srbijagas and Russia's Gazprom were expected to sign a agreement, to develop an arm of the South Stream gas pipeline. The deal, will allow Serbia to diversify its gas supplies and avoid shortages.

"The Serbian arm of the pipeline will have annual capacity of 20 billion cubic metres of gas and will be about 450 kilometres long," Bajatovic told the news agency. Last December, Serbia and Russia finalised a bilateral energy pact, with Belgrade agreeing to sell a 51% stake in its oil monopoly NIS to Gazprom Neft for $400 million ($544.6 million) in exchange for an arm of the South Stream gas pipeline and the completion of the Banatski Dvor gas storage.

The South Stream has been designed to bypass Ukraine and transport Russian gas under the Black Sea to Bulgaria and onwards to Serbia and Europe.

Nabucco engineers get to work
Nabucco pipeline engineers have begun detailed planning along the gas route between the Caspian region and Europe, taking the project into its next phase, the Vienna-based consortium announced. The consortium's engineers in Austria, Hungary, Romania, Bulgaria and Turkey will help prepare for negotiations with gas suppliers and enable local approvals for the project, which plans to pump gas through 3300 kilometers of pipeline from 2014.

The project has gained impetus following the gas price row between Russia and transit country Ukraine in January, which left over a dozen European countries without gas for two weeks. But funding, the sourcing of natural gas and some disagreement between consortium members have also weighed on the project, which has had to push back some of its target dates, a Reuters report said.

The European Union's agreement in Prague last week to smooth the way for more gas imports from the Caspian region was an "important political milestone" for the project, consortium head Reinhard Mitschek said in a statement.

TNK-BP Appoints Executive Vice President, Technology
TNK-BP announces that Francis Sommer has been appointed Executive Vice President, Technology of the TNK-BP group of companies.

Francis has been with TNK-BP since 2005, as Vice President, Technology. He has played an important role in technology transfer to TNK-BP, and has been instrumental in establishing a consistent approach to the evaluation and quantification of reserves across TNK-BP's asset base. He joined TNK-BP following a successful and varied petro-technical career of almost twenty years in BP, in the UK, USA and Colombia.

Japan and Russia to co-develop oilfields
Japan and Russia plan to sign an agreement, as early as today, to jointly develop oilfields in Eastern Siberia. It has been reported that the agreement will involve two oilfields in central part of the Russian region of Irkutsk.

The project will be led by a joint venture between Japan Oil, Gas and Metals National Corporation, or JOGMEC, and Irkutsk Oil. The Japanese government-owned company is expected to take a 49% stake and the Russian partner the remainder. With the goal of starting full-scale production as early as 2013, the joint venture will kick off survey and drilling in 2010 or later.

Sibir Appoints Chief Executive Officer
Sibir Energy announce that Mr Stuard Detmer has been confirmed as the Chief Executive Officer of Sibir. His experience in a senior management role within the Company since 2003 will ensure effective management continuity for the Company.

Total readies Shtokman tenders
French giant Total said recently that the Shtokman development partners were poised to launch the first round of tenders for the massive Barents Sea gas development, adding that it was "too early" to give an estimate for final project costs.

Total's Shtokman planning manager Philippe Rondy said: "Once the first tender bids are in place we will be in a position to talk about capital expenditure estimates. I expect this will be by the end of this year."

He said the Shtokman partners see the credit crunch as an opportunity to make cost savings, pointing out that the cost of steel has dropped since front-end engineering and design (FEED) work got under way in December 2007.

Plans for first pipeline gas deliveries in 2013, with the first liquefied gas cargo scheduled for 2014 remain in place he said with "The main technical solutions decided".

"We are opting for an ice-resistant floating production unit, and are planning to produce from 20 wells via three subsea templates."

Aker Solutions bags Sakhalin-1 gig
Norway's Aker Solutions is primed to build the Arkutun-Dagi gravity base structure (GBS) for the Sakhalin-1 project in Russia after receiving a contract award from operator Exxon Neftegas. Aker Solutions estimates the value for services could total $600 million over the next three years.

Once completed, the GBS will lie off Sakhalin Island on the east coast of Russia and will be a part of the drilling and production facilities for the Arkutun-Dagi development, a future phase of Sakhalin-1.

Transneft sees steady Russian output
Russian oil pipeline monopoly Transneft expects the country's crude production to remain stable this year, despite the economic slowdown, and will receive the first tranche of a $10 billion Chinese loan by the end of May, company president Nikolai Tokarev recently anounced.

"Volumes will stay at practically the same level," Tokarev told Reuters. Transneft is well-placed to calculate Russian oil production due to the orders it receives from producers to fill its pipelines. Tokarev said output would increase by 2012, although perhaps at a slightly slower rate than envisaged last year.

Russia's Surgut almost triples profit
Russia's fourth-largest oil company Surgut said its net profit almost tripled in the first quarter from the fourth quarter of 2008. The company said today that its net profit to Russian Accounting Standards stood at 68.79 billion roubles ($2.07 billion), up from 23.79 billion in the previous three months.

The company did not give a reason for the profit increase. Many Russian oil companies say their profits have recovered following a loss-making fourth quarter after oil prices stabilized and the Russian government cut oil export duties.

D&F Group takes a new name and becomes Beerenberg
The D&F Group has recently changed its profile, and will from now on conduct its business under the brand name Beerenberg as a consequence of the new ownership structure in 2006 and acquisition of Bjørge Norcoat in 2007, with the ambition for big growth internationally in 2009.

The name has been chosen that best fits the associations of the our company and services. Mount Beerenberg on the arctic island of Jan Mayen is Norway's only active volcano, and it is also the most northern, active volcano in the world. It is truly an extreme environment, much like the surroundings that the company have to face, and counter the effects of, on a daily basis.

PetroChina to boost storage for Russian oil
PetroChina's largest Daqing oilfield will add eight large crude oil storage tanks by 2010 after having installed two such tanks for offloading Russian oil. The 10 tanks alone, with planned capacity of 150,000 cubic metres each, will boost Daqing's crude oil storage capacity by nearly 10 million barrels, as China is set to ship in more Russian oil following the recent oil-for-loan deals between the two countries.

China agreed this month to lend $10 billion to Russian oil pipeline monopoly Transneft and another $15 billion to state-run oil major Rosneft in exchange for supplies via pipeline shipment of 300 million tonnes of Russian oil over 20 years.

The planned pipeline that will be used to transport Russian oil ends at the Daqing oilfield. China currently gets most of its Russian oil supplies via rail.

Oil production at Daqing, China's top oilfield by output, has been on a decline after decades of extraction.

ATR Group expands operations in Baku
ATR Group is unveiling an expanded offering in the Caspian, with a growing staff base in Baku alongside further cash investment in equipment serving the region. Aberdeen, Scotland-headquartered ATR made a major push into Azerbaijan in 2008, when it acquired Bridon International and is again developing its business with a stand at the Caspian oil show in June.The firm's Baku operation is now being led by highly experienced operations manager Malcolm Fox, who arrives as country manager with nearly 20 years experience in the oil and gas industry.

ATR director Robert Skidmore said: "Our work in the Caspian is developing apace and the addition of Malcolm Fox to our team gives our clients in the region access to a leading expert in his field.

EAGE St Petersburg 2010
The European Association of Geoscientists and Engineers (EAGE), joint with the Eurasian Geophysical Society (EAGO), will hold the 4th International Geosciences Conference and Exhibition "Saint Petersburg 2010, New discoveries through integration of geosciences". The conference will take place April 5-8, 2010 at the International Business Center in Saint Petersburg. More then 500 geosciences specialists are expected to visit the conference. The extensive scientific programme, including simultaneous work of several disciplines, will include workshops and courses from leading scientists. The exhibition will allow the opportunity to become more acquainted with the latest exploration and production technologies. Join us in Russia!

More information about the event: http://www.eage.org/

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posted by The Rogtec Team @ 10:48  0 Comments

Monday, 16 March 2009

Russian and Caspian Oil and Gas News - February 09

Shell discusses further cooperation with Gazprom
Supermajor Shell will discuss further cooperation with Russian state-run Gazprom on energy projects in Russia's Far East, its was announced recently, reflecting industry hopes that lower oil prices will prompt countries with resources to offer better deals.


Anglo-Dutch Shell boss Jeroen van der Veer told Reuters in an interview the company would discuss more projects with the Russian gas giant after launching the $22 billion Sakhalin-2 liquefied natural gas project.


Van der Veer said the Russian Far East was within Shell and Gazprom's "area of mutual interests (AMI)".

"Based on the success (of Sakhalin-2), the partners will discuss with each other how we can give hands and feet to this AMI," the executive said.

SIIRTEC NIGI AWARDED THE GAS TREATING PLANT
Siirtec Nigi S.p.A. has announced that it has been awarded a contract by OAO Gazprom to implement the biggest silica gel plant in the world to be located at
the Portovaya Compression Station near the Russian town of Vyborg. Contract value is in the region of 400 million Euros. The contract is part of the ambitious Nord Stream Project which includes the 1,220 km gas pipeline that will carry natural gas from Russia to the European Union via the Baltic Sea. The award follows highly competitive international tender over several months.


The plant will dehydrate and control the hydrocarbon dew point of 170 million cubic meter per day (6 billion cubic feet per day) of natural gas to reach the stringent specifications required by the submarine pipeline. The plant, operating at 75 bar (1088 psi), will use high performance e silica gel manufactured by BASF.
Siirtec Nigi's scope of work includes the supply of technology, engineering and procurement of equipment and materials to be delivered in two phases (October 2010 and October 2011). In addition, the company will be responsible for erection supervision and start-up activities.


Kremlin unveils 126m barrel oil stash plan
Russia is working toward creating an oil and products reserve and could stockpile up to 16 million tonnes (126.4 million barrels) to take advantage of low oil prices, Deputy Prime Minister Igor Sechin recently told reporters today.


"We are getting ready for an Opec session, which will take place in March, and we are studying reserve options," Reuters quoted Sechin as saying.


He added low oil prices were prompting producers to think about reducing output.
"Such a reduction could reach up to 16 million tonnes, depending on market conditions. It is possible to study the possibility of buying this crude from the market," he said.


"You will agree that, at such prices, it is wise to talk about stockpiling options.

Slavneft ties up $100m loan
Russian gas giant Gazprom's banking arm Gazprombank has handed oil producer Slavneft a two-and-a-half-year $100 million loan to help it fund ongoing activities.
Slavneft is a joint venture between Gazprom Neft, Gazprom's oil arm, and TNK-BP, half-owned by UK supermajor BP.

Russia in Bolivia pipe talks
Russian gas giant Gazprom is in talks to build a system of pipelines in Bolivia, President Dmitry Medvedev said as the Kremlin launches a new push to boost its influence in South America.


Medvedev announced the plan after talks in the Kremlin with Bolivian President Evo Morales, whose visit to Moscow comes soon after similar trips by fellow leftist leaders Raul Castro of Cuba and Hugo Chavez of Venezuela.


"We spoke about Russia helping our friends in Bolivia with hydrocarbons and the construction of a gas transport system," Medvedev told Reuters after the meeting.
"A memorandum was signed with Gazprom, whose co-operation is moving into the practical sphere," he said, adding that work on the "strategic project" would run to 2030.


Medvedev said Russian efforts to boost ties with South America were not aimed at countering the US, traditionally the dominant power in the region.

Russia seals $25bn China cash for oil deal
China has agreed to lend Russian oil companies $25 billion in return for supplies from huge new East Siberian oilfields that will power its economy for the next two decades, a source close to the talks said today.


Russia's state oil champion Rosneft and pipeline monopoly Transneft signed a long-delayed deal to borrow the money from China Development Bank during talks in China, the source told Reuters. Rosneft and Transneft declined immediate comment.


Beijing has abundant cash that Moscow needs to access in the credit crunch as its government is running major deficits and some of its companies are finding it difficult to repay loans and borrow project finance on commercial markets.
The agreement, originally planned for the end of 2008, did not come easily and talks stalled in November last year over disagreements about interest rates and state guarantees China sought from the Russian government.

TNK-BP turns on Uvat taps
TNK-BP turned on the taps at the Urna and Ust-Tegus fields, in the Uvat area of West Siberia's Tyumen oil patch, and pledged to invest $500 million this year to increase output in a region where most other major deposits have been depleted.
TNK-BP plans to produce 1.5 million tonnes (11.8 million barrels) of oil from the Urna and Ust-Tegus fields this year.


Output will be ramped up to a peak of 9 million tonnes per year (71 million barrels) by 2020, officials said.

TNK-BP holds 15 licences in the region, with the Urna and Ust-Tegus fields lying in the eastern sector of the province. Crude from the two licence areas was fed into the 264-kilometre spur that links up with the national pipeline network run by Transneft . TNK-BP, has invested $925 million in the project to date, which it completed ahead of the original start-up date of 1 April.


The company last year launched another major project, the Verkhnechonskoye field in East Siberia.

EU united on Nord Stream and Nabucco
The European Union (EU) is united on the natural gas pipelines its members aim to build in a bid to diversify block's supply and import routes, Energy Commissioner Andris Piebalgs recently said.


Piebalgs spoke of unity after German Chancellor Angela Merkel asked the 27-member block to support a Nord Stream pipeline, which would bring Russian natural gas under the Baltic Sea directly to Germany. Czech Prime Minister Mirek Topolanek, whose country chairs the EU until June 30, said that Nord Stream, as a pipeline deepening the EU's reliance on Russian gas, was "a direct threat to the Nabucco project" that would skip Russia as a supplier.


Poland and the Baltic states have been the chief opponents of the Nord Stream pipeline, which bypasses them. Piebalgs said that while Poland would prefer other routes Warsaw was "not hostile" to the Russian-German line.

Gazprom plans to raise shelf oil and gas reserves by 2020
Russian gas export monopoly Gazprom said its hydrocarbon reserves on Russia's Arctic Shelf will increase by 5.6 bn tons of fuel equivalent between this year and 2020.


Gazprom said Russia currently had around 100 bn tons of fuel equivalent on the enormous shelf, which covers many time zones and is partly frozen. Around 80 % of these are gas.


"In 2005-2008, Gazprom's reserves on the Russian shelf grew by 1.5 bn tons of fuel equivalent as a result of geological exploration work," Gazprom said.
Last year, total hydrocarbon reserves held by Gazprom, the world's largest gas producer and supplier of a quarter of Europe's gas, rose by a record 10 % after the government granted it 10 major gas deposits and its oil reserves were boosted.

Sakhalin 3 Operator Selected After Prospecting
The operator of the Sakhalin-3 project will be determined as soon as geological prospecting is over, Deputy Prime Minister Igor Sechin reported. Asked about the chances of the two major rivals - Gazprom and Rosneft - Sechin noted that the most active bidder would win, adding that if the bulk of the project's reserve is gas, Gazprom would certainly be more willing than Rosneft. However, it is still too early to draw any conclusions, Sechin observed. He pointed out the difficult economic situation, which discouraged interest in large projects

New Energy Source Comes Onstream at Sakhalin II
President Dmitry Medvedev opened Russia's first liquefied natural gas (LNG) plant built by Sakhalin Energy Investment Company Limited (Sakhalin Energy).

The LNG plant is the heart of the Sakhalin II Project, one of the largest integrated oil and gas projects in the world.

The innovative and challenging Sakhalin II construction is near completion, and a new major energy source is now coming onstream. The infrastructure includes three offshore platforms, an onshore processing facility, 300 km of offshore pipelines and 1600 kms of onshore pipelines, an oil export facility and the LNG plant.


Rosneft Reviews 2008 Results and Approves 2009 Business Plan
According to the preliminary results, in 2008, Rosneft's oil and gas condensate production amounted to 110.1 mln tonnes, 9% more compared to the prior year. Organic production growth exceeded 4%, which is the best indicator among the Company's peers. This growth is primarily explained by further development of Rosneft’s extensive reserve base that was underpinned by increased production drilling at the Company’s core upstream enterprises. In 2008, Rosneft drilled 2,547 th. meters of production wells (up 6.3% compared to 2007) and commissioned 658 new wells. Marketable gas output totaled 11.2 bcm, an increase of 1% compared to 2007. Furthermore, Rosneft completed 58.7 th. meters of exploration wells, which enabled the Company to add 141 mln tonnes of oil and 36 bcm of gas of the Russian ABC1 category, thus fully replacing volumes produced in 2008.

Rosneft Approves 2009 Business Plan
At Rosneft's recent meeting, the Board of Directors also approved Rosneft's business plan for 2009 that envisages further growth in all operating indicators amid unfavorable macroeconomic environment.

In particular, in 2009, Rosneft plans to increase its oil and gas condensate output by 2% to 112.3 mln tonnes, primarily through accelerated production drilling (704 new wells) and the launch of the Vankor oil and gas field. Commissioning of a booster station at the Priobskoye field is expected to bring marketable gas production to 11.9 bcm, 5.8% more as compared to 2007.

To ensure continued reserve base expansion, in 2009, the amount of exploration work will be maintained at the 2008 level. Rosneft plans to complete 56.3 th. meters of exploration drilling, and to shoot 9.1 th. linear kilometers and 2.4 th. square kilometers of 2D and 3D seismic, respectively.

StatoilHydro Investing in Arctic Russia's Future
Russian and Norwegian dignitaries, students and journalists turned out last week for education grant awards and cooperation signing ceremonies between StatoilHydro and schools in Murmansk and Arkhangelsk.

"This is a very important occasion for north-west Russia and StatoilHydro. We're signing agreements to train local students for opportunities in the region's emerging oil and gas industry," said signatory Bengt-Lie Hansen, StatoilHydro president Russia.

Mutual benefit
"These programs are not only important for north-west Russia and the schools, but for StatoilHydro's efforts to be an Arctic champion!" said Mr Lie Hansen.

"A cooperation between people means that you believe in an idea. We believe in you and I hope you believe in us. Together, we can make a difference."

Aladdin Oil & Gas Reports Possible Oil Discovery in Orenburg
Aladdin Oil & Gas Company ASA has during the drilling of an exploration well (*101) revealed a petroleum system in a reef structure. A 6m column has been encountered with clear indications of hydrocarbons.

Aladdin Oil & Gas Company ASA acquired 3D seismic on the Bogdanovskaya license early last year, and during the interpretation a possible reef structure was identified. The company decided that it wanted to drill this structure, and a well was spudded on it 24th December 2008. The well is planned to be drilled to 950m, and the top of the reef was expected around 650m depth.


The well will be drilled to the planned TD of 950m, and is currently at 698m depth. The company hopes to find further hydrocarbons as the drilling proceeds.
Analysis of the electric logs will decide what intervals can be tested, before any commerciality of the discovery can be considered.


CALEDUS BUCKS ECONOMIC DOWNTURN WITH FORECAST FOR MAJOR GROWTH
Caledus, the Aberdeen headquartered well construction technology oil and gas service sector business, has unveiled plans for significant global expansion with forecasts of 250 employees worldwide and turnover of £50 million by 2012.

A three-year vision, agreed by the company's senior management team at a meeting in Aberdeen recently, will see Caledus reach its anticipated expansion through organic growth, strategic acquisitions and alliances, incorporating new product lines where appropriate to enhance the business.

This year Caledus predicts revenue will grow from £8million to £14million with an increase in jobs globally from 43 to 65. Staff will increase at the company's key strategic bases in Aberdeen (6), Perth Australia (3), Dubai (3) and Houston (3) while a new office will be opened in Kuala Lumpur in March and additional staff will be employed in Norway and Angola.

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posted by The Rogtec Team @ 12:38  0 Comments

Tuesday, 10 March 2009

Uvat Oil: Reality and Prospects

Fifty years after the first key well was drilled, Uvat oil remains the object of constant discussion. In the 1970s the industry's focus was on discovering major fields in the Khanty-Mansiysk region, while the promising fields of southern West Siberia were abandoned. It was only 10 years ago that independent subsoil users appeared in Tyumen Region and Uvat was revived. Among the Company's major projects, this is the one that may achieve a substantial production increment in the near future.

Sergey Samyshkin
(SUSamyshkin@tnk-bp.com),
Drilling Efficiency and Technical Limits Director,
Tyumen BU

Boris Zalogin
(BPZalogin@tnk-bp.com),
Drilling Technology Director, Tyumen BU

The Uvat project includes seven license areas (eight fields and 29 exploration targets) with more than 200 mln t of recoverable reserves (Fig. 1). Within the project framework it is planned to construct over 500 km of roads and 200 km of power lines.

The project also provides for construction of a strategic regional pipeline infrastructure over 300 km long that runs through an area of proven oil and gas presence that covers 30,000 sq. km in the southern part of West Siberia.

At the same time, developing the Uvat group of fields and constructing necessary infrastructure involves certain difficulties, the first issue being the logistics. The matter is that ground communication with the drilling pads is confined to only three months per year when winter roads are in place. The rest of the time it is possible to reach the fields only by helicopter or via the Demyanka River; however the navigation season is also short, lasting just one or two months when the river is up. That is why the major part of preparatory work, including delivery of drilling materials, must be completed during the short period when the winter roads are functioning.

As of October 1, 2008, 25 development wells have already been drilled at Ust-Tegusskoye field.

Advanced Solution: 48 Wells from a Single Well Pad
Following vigorous exploration and appraisal (E&A) activity in 2004-2007, the Uvat resource potential was estimated as exceeding 200 mln t (1.4 bln bbl) of recoverable reserves. Uvat is now entering a fundamentally new stage: the Company's best talents have been assigned to the project; an optimal development plan has been designed; E&A activity is underway; Urnenskoye, Ust-Tegusskoye, and Tyamkinskoye fields are being drilled out. The engineering aspect here is rather interesting: applying new well construction technology and state-of-the-art equipment makes it possible to drill up to 48 wells from a single well pad. Drilling extended reach wells that reach out to 3,000 m is not a technical limit for Uvat. The number of wells is determined by total oil flow rate restriction of no more than 4,000 tpd per site.
Fig. 2 Net Oil Map for Urnenskoye and Ust-Tegusskoye Fields

However such super well pads make it possible to simplify construction of utility networks for oil production and transfer to the processing facilities and reduce related expenses by 20 percent and more. The number of wells drilled from a single well pad is also restricted by the technical capability of the drilling rig including hook load capacity and nominal drilling depth, the drilling tool (drill pipes) specifications, application of additional equipment such as a top drive for the drilling string, as well as the geological structure of the field and possible hole problems.

In Uvat drilling is performed using five imported drilling rigs. The process involves a Russian drilling company and a drilling equipment maintenance team from an international service company. The team members work 24/7 as part of the drill crew, train their Russian colleagues, and monitor all operations. In order to prevent accidents, the drilling equipment restricted the tackle system speed during the first six months of work. But since drill crews have developed the right skills, tripping speed increased gradually.

Modeling for the Drilling Purposes
According to the resource estimate of the Uvat group of fields, the recoverable reserves of the Eastern Hub amount to approximately 95 mln t. If the current understanding of the reservoir geological structure is confirmed, the development plan will provide for drilling seven well pads at Urnenskoye field and 10 well pads at Ust-Tegusskoye field.

As of October 1, 2008, 35 development wells at Urnenskoye field and 25 wells at Ust-Tegusskoye field have already been drilled. The wells flow naturally at rates of 50 tpd to 200 tpd. Drilling has begun at Tyamkinskoye field in the Central Hub as well, where well *300 is also flowing naturally producing 50 tpd of dry crude oil. Reservoir geological models developed by Tyumen Petroleum Research Center (TNNC) are actively applied while drilling out the Eastern Hub fields (Fig. 2). Using models for the development drilling purposes helps minimize the risk of failing to penetrate the reservoir, as well as updating the pay distribution prediction.

Reservoir simulation models were developed based on the depositional environment analysis and 3D seismic and log interpretation; petrophysical functions were determined using core analysis. The structure and petrophysics of the models are constantly updated based on new geological and hydrodynamic reservoir data obtained during drilling and well testing.

Open-hole logging of new development wells is performed by specialists from Baker Hughes. They apply their own unique technologies including nuclear magnetic logging that make it possible to determine the reservoir properties of the bottomhole formation zone. The innovations are applied in development wells completion as well: the use of deeply penetrating perforation systems for underbalanced reservoir penetration makes it possible to minimize wellbore damage and complete a well with perfect penetration.

In Uvat drilling is performed using five imported drilling rigs and involves both Russian and international specialists.

One of the Uvat challenges is the remoteness of the fields.

Positive Outlook
The annual oil production in Uvat is expected to be approximately 2 mln t.
It is planned to reach peak production of 10.8 mln t in 2016 (Fig. 3). At present infrastructure is being constructed at Unrenskoye, UstTegusskoye, and Tyamkinskoye fields and facilities are being prepared for commissioning planned for the second quarter of 2009. In the near future the focus here will be on development drilling. At the same time, other Uvat fields will be prepared for commercial development. This includes E&A, design and permit documentation development, etc.

TNK-BP is the investor for the Uvat project with the Tyumen Region administration contributing to the financing of its first stage. Analysts forecast that these expenses will be paid off both in monetary terms and through a number of social benefits: Uvat development will fundamentally change the region's infrastructure, which will drive diverse industry growth and create over 8,000 new jobs. Thus, the Uvat project will largely contribute to the development of industry in the south of Tyumen Region.


Fig. 3 Uvat Oil Production Profile

Interesting Information:
About half of Uvat's recoverable resources (95 mln t / 300 mln bbl) belong to the Eastern Hub. It includes two major fields: Urnenskoye (discovered in the 1970s) and Ust-Tegusskoye (discovered in the 1990s). Malyk field with approximately 3 mln t of recoverable reserves was discovered in 2006 to the east of Ust-Tegusskoye field by exploration well *5. In 2008 the E&A program resulted in discovery of Zapadno-Epasskoye field with approximately 2.5 mln t of recoverable reserves.

The Central Hub also includes two major fields: Tyamkinskoye (discovered in 2004) and Tamarginskoye (discovered in 2006).

The E&A activity performed in 2006 and 2007 confirmed that this area has significant resource potential exceeding 100 mln t (750 mln bbl).

As of the end of 2007 the proven and probable reserves amounted to 25 mln t (187 mln bbl).
The Central Hub extensions include smaller fields in the Northern Hub as well as the Southern Hub that has yet to be explored. Here E&A drilling and 2D and 3D seismic surveys are being performed in order to confirm the area’s resource potential, which is expected to amount
to 60 mln t (450 mln bbl).

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posted by The Rogtec Team @ 16:52  0 Comments

Wednesday, 3 December 2008

Efficient Drilling Creates Foundation for TNK-BP Business

David Nims (David.Nims@bp.com) Mikhail Kholodov (MVKholodov@tnk-bp.com),

Upstream Technology
It is commonly acknowledged throughout the TNK-BP drilling community that the last five years were about building the capability, embedding some basic technology in the Company, increasing the volume of work - from 250 wells in 2004 to 850 wells this year. As Darryl Willis, Vice President Upstream Technology, puts it, the past has been about the growth.

The future is about not drilling more, but drilling smarter – drilling right wells in the right places, shifting from single-well bores to multilateral-well bores, etc. To drill smarter, numerous changes are currently underway in TNK-BP use of drilling technology, most of which are part of two major trends:

- Enhanced rig capability

- Cutting-edge drilling technology

Enhanced Rig Capability
Three years ago the Uvat project developed a hybrid Russian / international design that encompassed the best of both worlds. It combined a proven Russian BU-3000 rig structure that facilitates easier inspection, certification and familiarization with state of the art international internal components. These internal components had best in class electronics, bearings, modularization and reliability. The hybrid design increased the drilling distance of the rig from 1.5 km to almost 5 km.

This capability in conjunction with high angle Frac capability "J type wells" helped save $480 mln NPV by cutting the pads / wells ratio per field from 24 / 175 to 6 / 130. Most of this saving was the reduced infrastructure costs resulting from the ability to drill all the wells from six pads versus the original 24 pad design. Building on this learning, our OFS internal drilling contractor, NvBN, developed a rig enhancement design for 22 rigs in our internal fleet. This $280 mln investment was one of the key levers in improving our drilling capability to drill the much more complex wells. These well designs have evolved from simple S-Shape wells to high angle 850m horizontal wells with step-outs in excess of 3,500 m. This has kept TNK-BP's drilling investment ratios at circa $35 per ton for the last three years despite double digit inflation.

Again, building upon this learning the VCNG project has introduced three new high technology rigs into the VCNG program and consequently the well construction cycle have fallen from an average of 125 days per well pre-project (2006) to an average of 35 days with one well with a best in class delivery of 26 days. These new rig designs are safer and capable of drilling much faster and further than conventional rig designs. This knowledge and the new hybrid coiled tubing drilling (HCTD) learnings will be applied on future Greenfield projects as well as selective applications on our existing fields.

Our exploration program is one of the most successful in Russia with a reserves replacement track record that is the envy of the Western world. This capability and performance will be further enhanced by the development of high technology heli-rig capability. Currently our exploration rigs in the more remote regions manage to drill around two wells per year before the departing winter leaves them isolated from our supply lines. Heli-rigs open up the possibility of pre-supplying up to six wells per rig and flying the rig into location on a year-round basis. This is much more equipment-efficient and is common practice in the more remote parts of North America. Firm proposals are being developed for a pilot application in TNK-BP; again this will be another proven technology 'first' for TNK-BP in the Russian market.

Following the Long Term Tendering exercise Company went through in the second half of 2007, 35 new high technology rigs are due to be operational in the field by January 2009. These rigs vary in size from 125-ton to 325-ton units and represent the state of the art for their respective sizes. Taking this innovative approach will result in TNK-BP having one of most modern rig fleet in Russia

Cutting-Edge Drilling Technology
Samotlor BU has successfully developed extended reach drilling (ERD) capability using rotary-steerable systems that enable the bit to independently track a predetermined optimum path through the production sand. This provides very accurate well placement in the production sweet spot for horizontal lengths in excess of 800 m. Using this technology Samotlor BU has delivered initial production rates four time larger than normal and exceeding 1,000 tpd. Moreover, ERD has allowed us to reduce the number of pads and wells per field.

This ERD technology has now been adopted by Orenburg BU while Samotlor BU is moving the technology even further ahead by developing ERD capability for their future sidetrack program.

Orenburg BU has developed a 15-well pilot program for the introduction of underbalanced coiled tubing drilling (UB CTD) with Schlumberger. This combination of underbalanced and coiled tubing drilling allows reservoir penetration with minimal formation damage and is key to unlocking tight reservoirs - applications in other places in Russia have resulted in a four fold increase in production rates. Successful introduction in Orenburg opens the opportunity for application in more difficult areas such as Talinskoye with its massive reserves potential.

Hybrid Coiled Tubing drilling is a relatively new technique which combines fast moving trailer rigs of up to 200 t capacity with coiled tubing technology. They have been used extensively in Canada with 5,000 wells drilled every year for the last four years. These are fast, highly safe, automated, reliable, environmentally friendly, PLC (Programmable Logic Controller) electronic rigs that permit operations with five-man crews. The 35 km pad to pad move times from tree on to spud of less than eight hours with 1,500 m wells completed in less than a day is transformational.

Samotlor BU is taking the lead in developing the HCTD technology in Russia, the first new rigs are expected in field by the end of this year and by 3Q 2009 we expect to be operating six of these world class units. On the environmental side, in addition to the low footprint of the HCTD rigs we will also be developing a pilot for drill cutting re-injection back into the ground. This will allow us to dispose of our drilling waste in a more environmentally friendly, hygienic manner than the current systems and permit the use of more exotic, higher performing mud systems.

The new and upgraded rigs allow us to develop more productive reservoir access technologies such as multilaterals where up to four or more long reservoir penetrations can be drilled from a single mother bore. This eliminates the access costs of drilling the over burden on three of the four bores and significantly reduces overall drilling costs.

Currently four to six multilateral wells will be drilled by the end of 2008. Less spectacular but equally important developments in bit design, especially PDC bits, have decimated the well times in hard rock areas such as VCNG where average well times of 55 days per well have been cut to a "best in class" well delivery of 26 days. These are early days and there is still much work and delivery to come for applying this technology across the rest of our well portfolio. Other upcoming technologies include the adoption of oil based mud to speed up the rate of drilling, reduce torque, provide better borehole stability and increase our well step-out capability.

Managing the Technologies
These technologies are further complimented by new exciting methods of benchmarking our performance using enhanced performance management systems such as the new STEPS contractor management system which is already yielding and applying significant value in Samotlor BU.

All of this technology should be managed in a measured manner and consequently Tyumen BU will implement a new remote operations performance center (ROPC) in 2009. This center will take real time drilling data from multiple rigs and transfer it to a centrally resourced technical expert center. This center will have directional drilling, geological, mud and other experts monitor, map and benchmark the performance of each well against a predetermined best in class model.

This will help the specialists make real time immediate changes of well trajectories to optimize reservoir sweet spots to enhance production and allow identification of potential performance shortfalls before the failure occurs. All this technology is tried and tested and is essential to unlocking the tighter, more difficult reserves of our upcoming programs.

However, perhaps more importantly, these technologies are the fundamental basis for success in the offshore ventures of the future and commercial performance delivery will grant us the permission to develop and apply even more radical access technologies.

We are breaking the mold and creating new access opportunities to increase our production potential. We are creating world class drilling capability in Russia and accelerating the development of our younger highly capable staff. We will have the best equipment for them to test and develop the new boundaries of the future. The sheer volume of TNK-BP business opens huge opportunities to try new ideas provided we can change the mindset to an acceptable tolerance of failure, "if you never fail, you haven't tested the boundary."

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