April 25, 2018

EOR Competence along the Value Chain

Ana Todosijevic

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EOR Competence along the Value Chain

A ThoughtThe Two EOR Golden RulesEOR Value ChainCooperation between E&P PartnersAssessment of EOR StrategyUnderstanding your ReservoirChemical Selection, Upscaling and Logistic From Pilot to Full Field, how to make it faster?Conclusion

Agenda

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EOR Competence along the Value Chain

Conventional Oil & Gas production is facing tremendous challenges:

– Volatile Oil Price – CAPEX intensive development of new projects– Competition from unconventional- and renewable energies– Need for optimization of the carbon footprint – Negative public perception which leads to:

• Shifting of capital investments towards renewables • Decreased interest of young professionals to work in our

industry

Are we as a industry active enough to manage this challenge?

How can we improve the performance of our existing and new projects?

A Thought…

400

500

600

700

800

900

1,000

1,100

1,200

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Lambert Energy, Wood Mackenzie, Rystad

Global upstream investments 2009-2020 (bill. US$)

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EOR Competence along the Value Chain The Two EOR Golden Rules

EOR is not a method or a random combination of methods, but a

synergetic and optimized strategy

EOR needs to be considered early in the planning stage of a new project and should be part of the production

plan of a reservoir from day zero

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EOR Competence along the Value ChainEOR Value Chain

Assessment of EOR

suitabilityFormu-lation

UpstreamlaboratoryCore flood

Business model &

CommercialField

ApplicationDesign, Execution &

Monitoring

1 5

6

7

8Logistics

9

10Impact

oil/waterprocessing

SubsurfaceEvaluation

2 Chemical synthesis

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Chemical Upscaling

4

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EOR Competence along the Value Chain Cooperation between E&P Partners

On EOR Projects

– Statoil

– Lundin

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EOR Competence along the Value ChainIntegration is Key to Success of EOR ProjectHeidrun Single Well Test with Schizophyllan OTC-28019-MS

Service Comp.

Well Test Design Logistic Solution Sampling and

analysis design Injection and Back

production Surface Facilities

Engineering Redispersion unit

engineering and offshore operation

Results interpretation

Polymer Manufacturing

Logistic Solution Laboratory biology Samples analytic

Offshore sampling & analysis

Polymer redispersion

Results inter-pretation

Standard well service

Delivery of the needed equipment

Dry run yard test onshore

Rig up and rig down of the equipment

Polymer injection Sampling Ta

sks

ofea

chpa

rty

Heidrun Consortium

Res. Simulation Well Selection, Well Test Design,

Workover Base line Logistic to platform Prod. Technology Installation of the

shallow gas lift Polymer

application Results

interpretation

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EOR Competence along the Value Chain One Team Approach with Lundin

One Team Approach between Wintershall and Lundin in Primary-, Advanced Screening, development of the Facility and Logistic Concept and the planning of the needed laboratory experiments

Edvard Grieg FieldLicense

Lundin (operator), 65%

OMV (20%)

Wintershall (15%)

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EOR Competence along the Value ChainAssessment of EOR Strategy

EOR Screening already in the field development phase Field Development Plan to allow for EOR application Based on the geological- and reservoir properties

– Establishment of the optimal EOR Strategy– Based on standalone- or combined methods

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EOR Competence along the Value ChainUnderstanding your Reservoir

Geological Model– Understanding of geological uncertainties

Reservoir Model– Up to date history matched model– Capturing all available SCAL data and

updated geological interpretation

Utilization of Digitalization

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EOR Competence along the Value ChainChemical Selection, Upscaling and Logistics Close cooperation with the chemical supplier

– Selection of suitable chemistry– Fast upscaling from lab to production

• Tuning of physicochemical properties– Compatibility with

• Used production chemicals• Materials

Efficient & effective logistics chain– Reducing shipping costs– Optimizing delivery schedule– Reducing carbon footprint

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EOR Competence along the Value ChainFrom Pilot to Full Field, how to make it faster?

Assemble the EOR value chain as a „one-team approach”– Plan for EOR in the Development Phase of the project– Each company involved must have access to all required information– Excellent project management, assign clear responsibilities

Apply a simultaneous, integrated workflow– EOR Pilot as part of full field deployment– Perform work in parallel wherever possible– Work in short iteration cycles from concept to execution

Work with an innovation-driven culture– Terminate projects early if they do not meet expectations– Implement an open, failure-tolerating culture

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EOR Competence along the Value ChainConclusions

Collaborate

Integration along the EOR Value Chain

Project Management One goal for all parties Simultaneous, integrated workflow Work with an innovation-driven culture

Industry-wide cooperation between operators

Stop “reinventing the wheel”

Make EOR part of the Development Plan Assess early the EOR Potential Understand your reservoir Allow field development plan to

account for EOR application

Share successes and failures to educate all E&P companies

Share neccesary data with all involved suppliers

One team approach

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Thank You!

14BASF Oil & Gas, September 2013

EOR Competence along the Value Chain