Recent Advances in Oil and Gas Production Engineering The first semester of 2016-2017 Professor Xianlin Ma School of Petroleum Engineering Xi’an Shiyou University

Course Contents: Chapter 1 Introduction Chapter 2 Gas Well Unloading Technologies Chapter 3 Advanced Hydraulic Fracturing Technologies Chapter 4 Horizontal Well Fracturing Chapter 5 Coiled Tubing Operations and Intelligent Well Chapter 6 Unconventional Oil and Gas Production Chapter 7 Shale Gas Development

Outline Coiled Tubing Operations and Intelligent Well 5.1 Coiled tubing system 5.2 Applications of coiled tubing 5.3 Concept of Intelligent well 5.4 Intelligent well completions 5.5 Intelligent production System

What is coiled tubing? Coiled Tubing (CT) coiled tubing refers to a very long metal pipe which is supplied and spooled on a large reel. Tubing diameter normally ranges from 0.75 inch to 4 inches. Single reel tubing lengths in excess of 30,000 ft. have been commercially manufactured. Common CT steels have yield strengths ranging from 55,000 PSI to 120,000 PSI.

Key components of a coiled tubing unit

Key components of a coiled tubing unit Injector Head Reel I Control Cabin Power pack

Key components of a coiled tubing unit Reel - for storage and transport of the CT Injector Head - to provide the surface drive force to run and retrieve the CT Control Cabin - from which the equipment operator monitors and controls the CT Power Pack - to generate hydraulic and pneumatic power required to operate the CT unit

Why use coiled tubing? Can push and pull (high angle wells) Can operate without a workover rig Pump fluids and gases Pumping is fairly self-contained Live well Mechanical manipulations Can not easily rotate

Well Cleaning - vertical

Well Cleaning – high angle Run in hole to top of fill Pump fluid at high rates Wash into fill Displace fill out of well Pump rate is critical

Pumping/displacing Create under-balance Create over-balance (kill) Circulate Flush

Acid stimulation Wellbore flush Perforation flush Perforation squeeze Accurate fluid placement Avoid bullheading well fluid Minimize completion corrosion Minimize iron contamination

Cementing Balanced plug Abandonment Zonal isolation Perforation squeeze Cement whipstock

Fracturing Selective & accurate treatment No frac string required No tree saver required Multiple fracs in one run Reservoir characterization Low rate possible

Fishing Push Pull Hammer up or down Mill Circulate fluids Video, photograph

Perforation Underbalance Deployment system Firing system Extreme lengths and weight

Gas lift Create under-balance Initiate natural flow Differential stuck pipe Evacuate fluid

Intelligent (Smart) Well

Intelligent well An intelligent (smart) well enables an operator to Remotely monitor and control flow downhole at reservoir without physical intervention Optimize well production and reservoir management processes

Data flow

Elements of an intelligent well completion Interval control valves (ICV) Feed-through production & isolation packers Digital infrastructure Permanent downhole gauges & sensors

Elements of an intelligent well completion

Interval Control Valve (ICV)

Interval Control Valve (ICV)

Downhole flow control device Down-hole flow control device (Interval Control valves)

Down-hole sensors Down-hole sensors Electronic Fiber optic Function Binary (on/off) Discrete multi-position High resolution/infinitely variable Actuation Hydraulic balanced Electro-hydraulic Down-hole sensors Electronic Fiber optic

Intelligent completions Optimize well, production and reservoir management processed by enabling the operato to remotely monitor and control well inflow or injection downhole at the reservoir without physical intervention

Elements of an intelligent well completion

Why intelligent well completion Increased Hydrocarbon volume Accelerated volume Reduce cost Capex Opex

Capital Expenditure to develop a field using vertical wells 3 platforms: US$300 millions each US$900 millions 21 wells: US$12 millions each US$252 millions Total = US$1.152 billion!

Capital Expenditure to develop a field using vertical wells 1 platform: US$100 millions each US$100 millions 6 snake wells: US$30 millions each US$180 millions Total = US$480 millions! Save 672 millions

Intelligent well completion: business value

Uncontrolled Commingling

Drill a well for each zone

Controlled Commingling

Commingled intelligent well vs. sequential development

Dumpflooding

Intelligent well application Complex reservoirs Compartmentalized, layers, heterogeneous, multiple pay zones Complex well architecture Horizontals, multilaterals, extended reach, “snake” wells Complex recovery mechanisms Secondary, tertiary, EOR Challenging environments Offshore, Deep water, remote

Full field subsea WAG development Increase production and stable produced water cut rate (14%) Significant improvement in reservoir sweep efficiency

Snorre B WAG Project

Full field subsea WAG development Increase production and stable produced water cut rate (14%) Significant improvement in reservoir sweep efficiency

Compartmentalized reservoir Additional 1.57 million bbls of oil over yeas

Compartmentalized reservoir

Compartmentalized reservoir Additional 1.57 million bbls of oil over yeas

Intelligent well in subsea applications

Auto gas lift – reduce CAPEX

Auto gas lift system controls reservoir inflow

Smart Fields Challenge Complex reservoir Solution Reservoir heterogeneities Fault/fracture systems Water breakthough Solution Synergy of technology Multilaterals, MRC wells Smart completions Geo-steering Permanent monitoring Result Cost savings –threefold Reduced CapEx Reduced OpEx Increased ultimate recovery

Real-time reservoir management

Future Intelligent well completions: a solution

Where do people see the application? Geoscientist – manage subsurface uncertainties (reservoir connectivity, and early water breakthrough) Production engineer – reduced well count Reservoir engineer – life cycle production Optimization, commingling production and draining marginal reserves Completion and well services – ease of well intervention and improving operational safety Asset manager – increase ultimate recovery, reduced Capex

Good practices in progressing a smart well portfolio

Intelligent completions: why doesn’t every well have one? Not every well justifies being intelligent however every well and field deserves to be evaluated for smartness with input from all stakeholders That evaluation needs to include participation and integration of relevant disciplines in a timely fashion