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OTC 16699

Subsurface Development Challenges in the Ultra Deepwater Na Kika Development
D.T. Rajasingam - Shell E&P Americas, T. P. Freckelton - Shell E&P Americas.


Copyright 2004, Offshore Technology Conference
                                                                                                 Introduction
This paper was prepared for presentation at the Offshore Technology Conference held in           The ultra-deepwater Na Kika development concept represents
Houston, Texas, U.S.A., 3–6 May 2004.
                                                                                                 a new movement in the exploitation of hydrocarbon reservoirs
This paper was selected for presentation by an OTC Program Committee following review of
information contained in an abstract submitted by the author(s). Contents of the paper, as
                                                                                                 in deepwater environments – one that does not rely on a single
presented, have not been reviewed by the Offshore Technology Conference and are subject to       large accumulation to justify development. Instead, Na Kika
correction by the author(s). The material, as presented, does not necessarily reflect any
position of the Offshore Technology Conference or its officers. Electronic reproduction,         utilizes a cluster development concept, leveraging technology
distribution, or storage of any part of this paper for commercial purposes without the written
consent of the Offshore Technology Conference is prohibited. Permission to reproduce in print
                                                                                                 and innovative thinking to turn a collection of small to
is restricted to an abstract of not more than 300 words; illustrations may not be copied. The    medium sized fields into an economic cluster development
abstract must contain conspicuous acknowledgment of where and by whom the paper was
presented.                                                                                       tied to a floating production and storage vessel with sub-sea
                                                                                                 production systems, illustrated in figures 1 and 2.
Abstract
The Na Kika Development is located in water depths ranging                                                 As the “big cats” in deepwater environments are
from 5,800 to 7,000 feet in the US Gulf of Mexico. The                                           found and developed, the cluster development concept and
project, a joint effort by Shell and BP (approximately 50%                                       application of exploration and production technology will
each), is a sub-sea development of five small to medium sized,                                   have to become the norm to enable companies to develop
oil and gas fields tied back to a centrally located, permanently-                                further into the deepwater.
moored floating development and production host facility
located in Mississippi Canyon Block 474. The sub-sea                                                      The joint venture arrangements associated with the
infrastructure consists of 10 wells connected via three 25-mile                                  development are as unique as its technical nature. The design
flowline loops, 23 flowline sleds, and 50 miles of umbilicals                                    and construction of the surface and subsurface development
to the semi submersible-shaped host with topsides facilities for                                 infrastructure has been executed by Shell as the ‘pre-
fluid processing, and pipelines for oil and gas export to shore.                                 production operator’, with BP assuming the ‘post production
The Na Kika Host facility has a processing capacity of 110                                       operator’ role upon start-up of the first well. This unique
mbopd oil and 425 mmscfd gas. First production was                                               endeavor, rooted in the historical ownership arrangements of
achieved in November 2003.              The host and sub-sea                                     the various fields, has leveraged the best of both companies to
infrastructure is designed for other tiebacks to enable further                                  the benefit of the partnership as a whole.
development in the area. A sixth field will be tied back in
2004.                                                                                            Exploration and Appraisal History
                                                                                                 The first exploration leases for what would become the Na
          The Na Kika fields consist of multiple stacks of
                                                                                                 Kika area were acquired in 1985 over the Kepler, Ariel,
turbidite reservoirs deposited in an unconfined by-passed
                                                                                                 Fourier and Coulomb fields (see figure 3). East Anstey and
slope setting. These reservoirs are characterized by mud-rich
                                                                                                 Hershel leases were acquired in 1988. The paradigm at the
depositional environments punctuated by sand rich
                                                                                                 time of the first lease acquisitions was the hunt for large
channel/levee systems.
                                                                                                 accumulations (“Big Cats”) that could justify the installation
                                                                                                 of a stand-alone production system, requiring recoverable
         The diversity and complexity of Na Kika's subsurface
                                                                                                 volumes in the order of 500 MM boe or more. Prospects were
offered a number of challenges requiring a novel approach to
                                                                                                 identified on the basis of 2-D seismic, and were amplitude-
the development and application of well and sub-sea
                                                                                                 supported mid-Miocec turbidites. In contrast to the confined
technology. The successful deployment of this technology
                                                                                                 basins conventionally developed in the Gulf area containing
together with excellent execution has enabled an economic
                                                                                                 massive sheet sands, these prospects were located in
development concept of what would otherwise be five sub-
                                                                                                 unconfined, bypass slope settings, and most likely contained
economical developments on a stand-alone basis.
                                                                                                 hybrid, thin-bedded laminated sands. As such, the geology
                                                                                                 was complex, and well placement to exploit reservoir ‘sweet
         The key subsurface development risks and challenges
                                                                                                 spots’ and maximum connected volume would be difficult.
included reservoir quality, continuity and connectivity (areally
                                                                                                 The biggest challenge to development, however, was the
and vertically), aquifer size and support, well and reservoir
                                                                                                 deeper water depths (5800-7600 ft). At the time, the deepest
performance and management, reservoir compaction, and fluid
                                                                                                 structure in the Gulf of Mexico was the Bullwinkle platform in
compatibility (ashphaltenes).
                                                                                                 1350 ft of water. Despite this, exploration drilling progressed
2                                                                                                                         OTC 16699


in order to prove up volumes on the assumption that                           The five Na Kika fields are retained by an integrated,
deepwater construction and production technology would               regional Suspension of Production (SOP) approved by the
evolve within the next decade or so.                                 Mineral Management Service (MMS) in 1995.

         Shell drilled the first discovery well in the Na Kika       Wells, Sub-sea System & Host Facility. The sub-sea system
area in Mississippi Canyon (MC) 383 in June 1987, finding            consists of 10 wells connected via three 25-mile flowline
the high net-to-gross oil-bearing K1 sand at Kepler (5800 ft         loops (two oil and one gas), 23 flowline sleds, and 50 miles of
water depth). Additional exploration in the area led to the          umbilicals to the semi-submersible shaped host with topsides
discovery of the Coulomb gas field in MC 657 (7600 ft water          facilities for fluid processing and pipelines for oil and gas
depth) in November 1987, and the Fourier oil and gas field in        export to shore.
MC 522 (7000 ft water depth) in 1989.
                                                                               The ten wells include two at Kepler (oil), three wells
          The Kepler, Fourier and Coulomb fields were not of         in each of Ariel (oil) and Fourier (gas/oil), and one well in
sufficient size to merit stand-alone developments, nor did           each of Herschel (oil) and East Anstey (gas). The wells and
current technology of the day enable development in these            completions campaign was undertaken in a batch mode to
water depths. As such, interest in the area faded, and Shell         facilitate the execution efficiencies associated with both
refrained from further exploration in water depths greater than      operations. The Kepler field is the largest oil-bearing
5000 ft as the Tension Leg Platform (TLP) era began to               reservoir, and has been developed by horizontal gravel-packed
evolve.                                                              wells. With the exception of the two horizontal gravel packs
          In 1993 an Area of Mutual Interest (AMI) was agreed        at Kepler, all remaining wells at Na Kika are vertical or
between Shell and Amoco that would allow both partners to            deviated frac and packs. All three of Ariel’s oil wells are
share risk and reward in the further exploration and appraisal       multi-zone commingled completions, with two of the three
of the area. The AMI encompassed 96 lease blocks around the          wells employing intelligent well technology. The Ariel and
Na Kika area, from Kepler in the northwest down to Coulomb           Kepler fields are tied into a sub-sea loop, and are commonly
in the southeast. The AMI required Amoco to shoot 3-D                referred to as the northern fields, illustrated in figure 2.
seismic over the whole area, and earn further interest by
drilling exploration wells. As additional prospects emerged                    The three fields in the South are the Fourier,
from the 3-D seismic, further interest was driven by evolving        Herschel, and East Anstey fields. Fourier comprises both oil
sub-sea production technology, and it became evident that            and gas reservoirs, with one well developing three stacked oil
sub-sea tiebacks could potentially be economically developed         pays with an intelligent well completion. The three remaining
within a 15 mile radius to a central production facility.            reservoirs at Fourier are gas-bearing and are developed by a
                                                                     further two wells, of which one is a dual-zone intelligent well
         In 1995, three stacked oil-bearing pays were                completion. The remaining gas well at Fourier is a single-
discovered in the Ariel field and a further oil-bearing              zone completion. The Hershel field is a single oil-bearing
discovery was made at Herschel in 1996. With the Ariel and           reservoir developed by a single-zone completion, and is tied
Herschel discoveries, momentum built towards a potential             along with the Fourier oil well into a southern sub-sea oil loop
cluster development and concept selection for the                    (see figure 2). The East Anstey gas field is developed by a
development began. Exploration drilling activity continued           single zone completion. The East Anstey and two Fourier gas
with a gas-bearing discovery at East Anstey in 1997 and              wells are tied into a southern sub-sea gas loop, illustrated in
appraisal drilling of Ariel and Fourier into 1999. With              figure 2.
concept selection finalized, project sanction was achieved in
September 2000 with first production targeted for 2003.                       The sub-sea flowline systems are comprised of a
                                                                     10”x16” pipe-in-pipe (PIP) loop connecting Kepler and Ariel
Development Overview                                                 to the Host facility in the north, an 8”x12” PIP south oil
The core Na Kika development is comprised of five small to           flowline loop connecting Herschel and Fourier to the Host,
medium sized fields (20 – 100 MM boe recoverable), in water          and an 8” uninsulated gas flowline loop connecting East
depths of 5,800 to 7,000 feet. The five fields: Kepler (MC-          Anstey and Fourier to the Host. The PIP configuration was
383), Ariel (MC-429 Unit), Fourier and Herschel (MC-522              selected for its thermal benefits to assist in the control of
Unit), and East Anstey (MC-607 unit), have been tied back to         hydrate formation and paraffin deposition. Twenty-three sleds
a centrally located (3-12 miles distance), permanently moored        have been installed for well jumpers, tie-in umbilicals, and to
floating production facility in a water depth of 6340 ft at MC-      provide hubs for future tie-ins. Gas lift risers are connected to
474 (see figures 1 and 2). In total, 10 development wells have       the base of the North oil loop risers to assist in production of
been drilled to develop some 300 MM boe. Shell and BP                the Kepler and Ariel fields, and the system is designed for
share a 50% interest in all fields except East Anstey where          future installation of gas lift risers for the South oil loop, if
Shell has a 37.5% interest, with BP holding the remainder.           required. All flowlines are connected to the host via steel
First production was achieved on 26 November 2003 with the           catenary risers (SCRs).
opening-up of the East Anstey well. A sixth field, Coulomb, a
gas field owned by Shell, is in a water depth of approximately               The Host facility has a processing capacity of 110
7,600 ft and will be tied back to the host facility later in 2004.   mbopd of oil and 425 mmscfd of gas. The oil and gas will be
                                                                     produced back to shore via two 75 mile export lines; an 18”
OTC 16699                                                                                                                         3


oil export pipeline to Main Pass 69 pump station, and a                      The Ariel reservoirs are delineated by a combination
20”/24” interconnect/export gas pipeline to Main Pass Bock          of structural and stratigraphic trapping elements.          The
260. Twenty-six riser baskets have been installed onto the          reservoirs south of the Main Fault, with the exception of the
host with eleven baskets currently used for the core Na Kika        K1 and A2 Upper Sands, have an associated aquifer and are
development and the remaining for future developments in the        expected to exhibit a partial water drive. All the reservoirs to
area.                                                               the north of the Main Fault have no associated aquifer and are
                                                                    pressure depletion. All reservoirs are oil-bearing, with the
Field & Subsurface Overview                                         exception of A1 Reservoir B-west, which has a gas
The Na Kika area was an unconfined slope setting during the         accumulation on top of the oil leg. This localized gas
middle to upper Miocene period, characterized by mud - rich         accumulation does not appear to extend north across the Main
deposition punctuated by sand-rich channel/levee systems.           Fault. The placement of the three development wells was
Individual channel/levee systems typically had very low             designed to optimize the exploitation of the reservoirs. All of
sinuosity, suggesting relatively steep depositional gradients       the completed zones are Upper Miocene (M2.8) amalgamated
were present. Many of the systems are characterized by a            channel sands.
central seismic dim with bright flanking amplitudes,
interpreted to be a mud-filled channel with adjacent sandy                   The major subsurface uncertainty in Ariel is both the
levee/overbank deposits.                                            lateral and vertical continuity, and connectivity of the
                                                                    reservoirs. The reservoirs are significantly channelized with a
          The Na Kika area consists of scattered salt               fining upward sequence. There is a high risk that flow barriers
piercements with intervening salt evacuation sub-basins.            may exist within the reservoirs as evident in the dim lineations
Trapping geometries are typically found along highs adjacent        from the seismic amplitudes. Other key uncertainties are
to the salt piercements (e.g. Herschel, Kepler Fields) and as       aquifer support and reservoir compaction.
drapes over deep inversion (turtle) structures (e.g. Fourier and
Ariel Fields). While all the Na Nika fields are localized along     East Anstey. East Anstey field is a dry gas accumulation
major structural elements, every pay horizon has a                  comprised of a single reservoir EA6 located on lease blocks
stratigraphic trapping element overprint. Vertical migration        MC-607 and MC-608 in 6650' of water. EA6 is a well-
and charge of the middle to upper Miocene Na Kika reservoirs        defined, downthrown fault block trap with a minor
occurs via deep-seated faults and/or along salt/sediment            stratigraphic overprint. Two fault splays bound the reservoir
interfaces. Lateral hydrocarbon migration may be possible           to the north and northeast. All three EA6 well penetrations
along the depositional axes of sand - rich Miocene                  (MC 607 #1 discovery well and sidetrack and MC 608 #-1)
channel/levee systems that cross the area.                          encountered a high net/gross, massive sand package, which is
                                                                    interpreted to represent amalgamated sheet sands. The
         In total, there are some eighteen oil and gas              geological setting is conducive to a large aerial extent and
reservoirs developed, ranging in depth from 12,000 to 16,000        hence potentially strong aquifer support, and good lateral and
feet true vertical relative to Mean Sea Level (water depths         vertical connectivity.
5,800-7,000 ft) with average reservoir pressures in the range
of 7000 to 9500 psi. The channel/levee type reservoirs                       One single-zone development well has been drilled
possess a variety of internal seismic geometries reflecting the     high on structure. The lateral extent and connectivity of the
variety of sub-facies that occur: channel cut-and-fill, dissected   EA6 reservoir across the field is a key uncertainty due to the
sheets-splays, and subtle to large-scale gullwings-                 presence of faulting and/or discontinuous sand occurrences.
channel/levee. Hybrid sands of massive sand overlain by a           Additional uncertainties are primarily fluid and reservoir
fining and thinning upward laminated sequence are the most          related.
commonly encountered reservoir type. Complexes of stacked,
channel/levee systems tend to be highly aggradational with          Fourier. The Fourier field is an oil and gas accumulation
possible localized post-depositional erosion alteration of the      located over a broad, low relief, four-way closure in block
underlying deposits. The key subsurface development risks           MC-522 in a water depth of about 7000 feet. The four-way
include reservoir quality, continuity and connectivity (areal       closure is located immediately southeast of the Fourier Salt
and vertically), aquifer size and support, well and reservoir       diapir and is related to a deep Jurassic turtle structure. The
performance, reservoir compaction, and fluid compatibility          individual reservoirs at Fourier consist of bypass facies
(ashphaltenes).                                                     associated with mud-rich turbidite deposition in an unconfined
                                                                    setting. Cross-sections exhibit a range of channel and levee
Field Descriptions                                                  related geometries including classic “gull-wing” profiles. All
Ariel. The Ariel field is an oil accumulation comprised of          of the tested objectives have hybrid reservoir architectures.
overlapping, stacked reservoirs located on lease blocks MC-         The more massive sands at the base of the reservoirs are
385, MC-429 and MC-430 in a water depth of 6200 feet. The           thought to be a combination of turbidite fan lobes, overbank
field is categorized as bypass-turbidites with a large, broad, 4-   splays, and amalgamated channels. Typically, these massive
way closure. A prominent, E-W striking Main Fault on block          basal units are overlain by a fining-upward, thin-bedded
MC429 bisects the amplitude anomalies and is interpreted to         sequence.     All of the traps have both structural and
be sealing.                                                         stratigraphic components. Post-depositional scouring in some
                                                                    cases may have resulted in discontinuous reservoir
4                                                                                                                       OTC 16699


connectivity.                                                               Major subsurface uncertainties include reservoir size
                                                                   (lack of seismic imaging under salt), areal connectivity,
        Three wells with six completions have been drilled to      aquifer support, and reservoir compaction.
develop six semi-stacked objectives (F5RA, F7RA, F7.5RA,
F8RA upper, F8RA lower and F8RB upper).                            Subsurface Risks & Challenges
                                                                   The wide range of reservoir type and size, and the variability
         The key subsurface uncertainties are similar to Ariel     in reservoir qualities encountered in each field in conjunction
and also include fluid compatibility and the formation of          with the area water depths, made it difficult to justify or
asphaltenes during commingled production of the F8                 execute stand-alone economic developments of the individual
reservoirs.                                                        fields. It has taken the application of maturing sub-surface
                                                                   imaging technologies to better understand the size of the prize,
Kepler. The Kepler field consists of the single K1 oil             along with the evolution of deepwater construction and
reservoir located on block MC-383 in some 5700 feet of             production technology to enable an economic development
water. The late Miocene K1 reservoir is interpreted to be a        concept.
massive, high net-to-gross amalgamated sheet sand. The
updip west flank of the K1 is abruptly truncated by a channel                The limited size of the average Na Kika field is a
cut that forms part or all of the updip trap of the reservoir.     direct function of the geologic setting and nature of the
Seismic is unable to image the sub-salt northern flank of the      channel/levee systems encountered. A wide variety of sub-
K1 reservoir, thus the exact sub-salt extent and trap are          facies is found in these systems, with an associated wide range
unknown. The accumulation has a column height of 700 feet          in reservoir quality and type. Reservoir targets in the Na Kika
and is interpreted to have a partial water drive.                  area are not limited to "classic" levee thin beds and channel
                                                                   fill, but also include high net/gross, massive sheet sands as
          Seismic indicates the K1 sand thickening from under      well.
50 gross feet updip to about 100 gross feet downdip of the
discovery well. In addition to the two horizontal development                The major reservoir uncertainties identified during
wells, the K1 reservoir has been penetrated from top to base       the field descriptions pose a number of risks and challenges to
by the MC383 #1 and by pilot holes for theK-1 and K-2              the subsurface development and production, summarized as
development wells. Although no oil-water contact has been          follows:
penetrated, the seismic amplitude shuts off with structure at
the interpreted oil-water contact.                                  •   Inter/intra-reservoir connectivity. Likely drainage area
                                                                        per well/completion as influenced by the lateral and
         The Kepler field is developed by two updip                     vertical continuity of the reservoir zones. Key risk is to
horizontal open-hole gravel packed oil wells (K-1 and K-2).             reserves and production. Believed to be present in all
Major subsurface uncertainties include reservoir size due to            fields and in particular may have a major impact to the
lack of seismic imaging under salt, areal connectivity of               long-term sustainability of the oil reservoirs (Herschel,
reservoir sands, aquifer support and reservoir compaction.              Kepler, Ariel and Fourier).
                                                                    •   Well planning and targeting of multiple reservoir zones
Herschel.      The Herschel field is an oil accumulation                compounded by imaging uncertainty in sub-salt targets
comprised of the H9 oil reservoir located in block MC-520 in            (Ariel & Fourier).
about 6800 feet of water. The Herschel H9 reservoir consists
of high net/gross sheet sands overlain by channel-levee thin        •   Degree of aquifer support in the oil fields and the
bed deposits in an unconfined bypass slope setting. Trapping            sustainability of long-term production and well
occurs by a combination of structural and stratigraphic                 performance. A risk in all fields, particularly Kepler.
elements with a major down to the NW (radial) fault and base        •   Requirement for commingled production from multiple
salt providing the updip trap on the north side of the prospect.        reservoirs to maximize hydrocarbon recovery per well
Seismically supported channelized/scour features provide the            and minimize total well-count (Ariel & Fourier)
stratigraphic trapping elements to the northeast. The reservoir
is limited on the west side by sand pinch-out. The updip            •   Reservoir and well production management of with
trapping and reservoir extent cannot be mapped due to lack of           commingled zones in extreme water depths. Key fields
seismic imaging under the Fourier Salt body. The down-dip               are Ariel and Fourier.
oil water contact is defined by the seismic amplitude shut-off.
                                                                    •   Fluid compatibility issues due to the potential formation
                                                                        of aspartames from commingled reservoir zones
         The H9 oil reservoir is developed with a single well
                                                                        (Fourier).
with a frac & pack completion. The well is optimally placed
in a location far enough updip to prevent an early water            •   Compaction and sand production due to highly
breakthrough while being far enough from the secondary gas              compressible formations. A risk in all fields, in
cap to avoid high gas production early on.                              particular, Ariel, Fourier and Kepler.
OTC 16699                                                                                                                           5


Management of Subsurface Risks and Challenges                                 The benefit of developing several reservoirs with one
                                                                   well bore was supplemented by the incremental benefit
Inter/intra-reservoir connectivity. Reservoir connectivity in      afforded by commingling.             It was estimated through
these bypass turbidite reservoirs is perhaps the largest           simulation that additional reserves could be developed by
uncertainty present at Na Kika. Despite the good coverage of       commingling due to the enhanced vertical lift characteristics
3D seismic, it is difficult to see the sub-seismic features that   of the well, translating to lower liquid load-up in the well and
can often influence lateral continuity. Although this is a key     enabling higher water cut zones to produce longer. Figure 4
uncertainty in all fields, the most exposed are the Ariel,         illustrates this for the Fourier field as an example. In this case,
Fourier, and Herschel fields.                                      it is estimated that some 10 – 12% more reserves are produced
                                                                   through commingling from the start of production, compared
         Reservoir static and dynamic simulation models were       to a case where successive well re-entries are performed to
rebuilt based on development drilling results in order to          complete bottoms-up.
provide tools to history-match and simulate observed
production to supplement material balance approaches.                        However, commingling of reservoirs is risky due,
Reservoir models were built into an integrated production          amongst other things, to the possibility of early or excessive
system model, incorporating sub-sea pipeline and host              water breakthrough from one zone killing the well before the
processing equipment. These tools will provide engineers           other zones have produced their reserves, the presence of large
with a good basis upon which to scenario plan and history          initial pressure gradient differences between zones, and the
match unexpected production behaviour.                             inability to test individual completions in order to estimate
                                                                   completion efficiency for well integrity management or
          A shared (Shell and BP) well and reservoir               allocate production for material balance. In order to address
surveillance plan was developed focused on managing                these risks, it was decided to install a form of intelligent well,
identified reservoir management uncertainties. A process was       allowing commingling or selective production from completed
used to prioritize uncertainties, and map against available data   intervals through hydraulically actuated Interval Control
types, with Value of Information (VOI) justification provided      Valves (ICV), akin to sliding sleeves. Figure 5 illustrates a
where necessary. This process helped to identify fluid             typical intelligent well completion at Na Kika. These sleeves
sampling and well testing types and frequencies in order to        are operated by hydraulic pressure provided through sub-sea
address key uncertainties, and specifically reservoir              umbilical from the host facility, allowing the operator to
connectivity. The presence of downhole pressure gauges in all      choose which interval to produce from using a series of mouse
wells greatly enhances the ability to perform surveillance in      clicks from the Master Control Station (MCS). This type of
this respect.                                                      well completion has been key to enabling economic
                                                                   development at Na Kika.
         Production and development contingencies were
worked in parallel with start-up preparation activities in order   Aquifer support. The two key efforts to mitigate against
to assess and plan for scenarios that could put early production   poor aquifer support (low drive energy) are waterflood and
at risk. This involved assessment of completion, sub-sea, and      riser gas lift. In the case of waterflood only the Kepler field
topsides reliability in the context of traits unique to Na Kika,   had sufficient reserve exposure to warrant the installation of
as well as potential follow-up development activities to cover     water-handling facilities and future water injection capability.
production shortfalls if wells or reservoirs did not behave as     Early performance data from Kepler will confirm whether or
expected.                                                          not this will be necessary in the near term. The possibility for
                                                                   water injection capability was included into the original design
Well planning and targeting. In order to intersect multiple        of the host facility.
stacked reservoirs at optimal drainage points, targeting the
best possible reservoir quality indicated by seismic, careful      Reservoir and well production management. Allocation
well planning was required. Early and close interaction            and measurement of volumes back to a source reservoir is
between drilling engineers, geoscientists, and directional         critical in order to manage reserves and subsurface risk and
drilling partners was required in order to plan optimal well       uncertainty through a field’s lifetime. Although downhole
paths to reach targets fulfilling the well objectives. Well        pressure gauges are installed in all Na Kika wells, allocation
planning also involved the use of 3D interactive imaging tools     of production volumes to wellheads and to reservoirs
allowing engineers, geoscientists, and directional planners to     commingled downhole will be a challenge.
immerse themselves in the subsurface and find the optimal
well path.                                                                   Despite the ability of intelligent wells to allow
                                                                   isolation and testing between selective intervals, the Na Kika
Commingled production from multiple reservoirs. In order           designs installed in 9 5/8” production casing only allow for the
to reduce well count and minimize the unit technical cost to       ability to provide two selective intervals. In the case of three
meet screening threshold, it was recognized early on that          of the four intelligent wells installed at Na Kika, which are
developing multiple stacked pays with one wellbore would be        triple-zone frac and packs, two distinct completions are
required, utilizing existing exploration or appraisal wells        commingled through one ICV. This makes allocation of
where possible.                                                    production back to the individual reservoirs difficult in these
                                                                   cases. In addition to subsurface allocation challenges, the
6                                                                                                                      OTC 16699


wells produce into sub-sea flow-loops, where production from                Compaction tolerant screens were utilized in Ariel
multiple wells is commingled prior to reaching the host. In        and Fourier wells in conjunction with telescoping joints in
the case of the Herschel and Fourier oil wells in the South Oil    order to absorb vertical strain expected with depletion.
Loop, and East Anstey gas well in the South Gas Loop, this is
not an issue since they all produce to their own separators.       Conclusions
However, the Ariel and Kepler oil wells in the North Oil           Na Kika is the first deepwater application of the concept of a
Loop, and Fourier gas wells in the South Gas Loop are              dispersed subsea development tied-back to a centrally located
commingled at the wellhead.           Therefore, allocation of     host that does not depend upon a single large accumulation of
production from separators back to the wellheads without           oil and gas.
deferring production to test wells is difficult.
                                                                   A mix of oil and gas fields in combination with reservoir risks
         To address allocation of completion intervals             related to inter/intra-reservoir connectivity and continuity,
downhole, geochemical fingerprinting has been identified as        multiple stacked reservoirs, limited aquifer support and
the primary means of surveillance where sufficient differences     reservoir compaction have made it necessary to design a
between hydrocarbon fingerprints exist. Figure 6 illustrates       development plan with maximum flexibility. The economic
where this is the case in well A-3. Regular sampling and           development and production of these dispersed, mostly sub-
analysis of commingled flow streams will be carried out in         economic fields on a stand-alone basis, has been strongly
order to determine the proportion of contributing fluids,          enabled by the application of new technology and novel
accounting for the uncertainty that can be expected using these    approaches to well completion and sub-sea design.
methods.
                                                                   Acknowledgments
          In the north oil loop, fluid streams commingled into     The authors would like to acknowledge the Na Kika
the sub-sea flowline at Kepler and Arial will be measured          subsurface and petroleum engineering teams (past & present)
using sub-sea multi-phase flow meters (MPFM). Two of the           at Shell Exploration & Production Company for their input
three Ariel wells are equipped with MPFMs, with the third          and contribution to this article, and for their efforts and
well’s production being measured by subtraction. Similarly,        perseverance through the 18-year history of Na Kika. Thanks
one of the Kepler wells utilizes a sub-sea MPFM, with the          and recognition also goes out to BP America Production Co.
other being measured by subtraction. The use of sub-sea            for their active participation and support throughout the
MPFM technology reduces the requirement to test wells              subsurface development planning.
directly, drastically reducing production deferment.

Fluid Compatibility. Fluid samples acquired downhole were
subject to compatibility testing in order to determine any flow
assurance concerns with respect to asphaltene or wax
formation.

          The mixture of F7.5 and F8RA reservoir fluids
developed by the Fourier-3 well proved to be susceptible to
the formation of asphaletenes under conditions where the
mixture was above bubble point. This led to the requirement
to install downhole chemical injection in the well. In order to
further manage risk, the intelligent well utility of F-3 will be
used to deplete the F8RA reservoir to the same pressure
gradient as the F7.5 reservoir prior to commingling in order to
reduce the risk of cross-flow between reservoirs while both are
above bubble point, and below the reach of downhole
chemical injection.

Compaction and sand production. Many of the reservoirs at
Na Kika are prone to compaction and sand failure. Sand
control completions were required in all wells, and mitigation
against compaction-induced strain failure was a key driver of
well design at Kepler, Ariel, and Fourier.

          For the Kepler field, horizontal openhole gravel-
packs were chosen to maximize inflow potential, but primarily
to manage the highly compressible K1 formation.              A
horizontal well trajectory was found to be the most tolerant to
vertical compaction strain from a geomechanical perspective.
OTC 16699                                                                                                                                                                   7




                                      Field           Kepler                     Ariel                    Fourier                East Anstey              Herschel
                Property
                         Reservoir Fluid           Oil                        Oil                        Oil & Gas                    Gas                     Oil
                         Water Depth (ft)         5,700                      6100                           6940                     16,040                  6738
            Number of Development Wells      Two (K-1, K-2)          Three (A-3, A-1, A-4)        Three (F-2, F-4, F-3)            One (EA-2)        One (H-1 sidetrack)
                 Well Completion Types Horizontal openhole gravel 1 dual-zone frac & pack 1 single-zone frac & pack           1 single-zone frac &   1 single-zone frac &
                                                 packs              (A-3 well), 2 intelligent (F-2 well, gas), 1 dual zone            pack           pack (H-1 sidetrack)
                                                                  triple-zone frack & packs intelligent frac & pack (F-4
                                                                       (A-1 & A-4 wells)         well, gas), 1 triple-zone
                                                                                               intelligent frac & pack (F-3
                                                                                                         well, oil)


               Bottom Hole Pressure (psi)              7230                     7380                       9253                      9500                   9530
            Completion Interval (ft TVDss)       ~12,020-12,070             ~12,00-12,900             ~13,820-16,330            ~16,100-16,200        ~16,470-16,5700
                                                   (Horizontal)
                            Reservoir Type Amalgamated Sheet Sand Bypassed Channel sands            Bypased Channels,         Amalgamated Sheet      Hyprid Chanel/Levee
                                                                                                   Amalgamated Levees               Sand
                               Trap Type      Base Salt-Stratigraphic        Stratigraphic        Structural+Stratigraphic         Structural             Base Salt
              Net Reservoir Thickness (ft)              47                      64-11                     16-103                       69                    54



                                                 Table 1 – Na Kika field characteristics




            Kepler



                                                               Ariel


                                                                    HOST



                                                                            Herschel                                         Fourier


                                                                                                                                                 Coulomb
                                                                            E.Anstey


                                                     Figure 1 – Na Kika field locations
8                                                   OTC 16699




    Figure 2 – Na Kika host & sub-sea loop layout




      Figure 3 – The 18 year history of Na Kika
OTC 16699                                                                                                                                        9




              Comparison of Commingled vs. Sequential Production at Fourier
            Cum. production (% of
                    BOE)
            120%




            100%
                       F-3 well: F8RA L, F8RAU &
                                  F7.5 on after 3.5 months                                                               F-3 well: F8RA U
                                 (Asphaltene)                                                                            F-4 well: F5
            80%        F-4 well: F7&F5                                                                                   F-2 well: F8RB
                       F-2 well: F8RB

                                                                          F-3 well: F7.5
                                                                          F-4 well: F5
            60%                                                           F-2 well: F8RB
                                                              F-3 well: F8RA U
                                                              F-4 well: F5
                                                              F-2 well: F8RB
            40%                                                                       F-3 well: F8RA L
                                                                                      F-4 well: F5
                                                                                      F-2 well: F8RB

            20%                                   F-3 well: F8RA L
                                                  F-4 well: F7
                                                  F-2 well: F8RB


             0%
                   0                20               40              60             80             100        120        140            160
                                                                                                                                 Time (Months)

                                   Commingled production                                                 Sequential production

                         Figure 4 – At Fourier, commingling helps to produce 10-12% more reserves




                                                   Figure 5 – Typical intelligent well at Na Kika
10                                                                                             OTC 16699




     Figure 6 – Geochemical fingerprinting is the only way to allocate between reservoirs in
                                          some cases

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Otc16699

  • 1. OTC 16699 Subsurface Development Challenges in the Ultra Deepwater Na Kika Development D.T. Rajasingam - Shell E&P Americas, T. P. Freckelton - Shell E&P Americas. Copyright 2004, Offshore Technology Conference Introduction This paper was prepared for presentation at the Offshore Technology Conference held in The ultra-deepwater Na Kika development concept represents Houston, Texas, U.S.A., 3–6 May 2004. a new movement in the exploitation of hydrocarbon reservoirs This paper was selected for presentation by an OTC Program Committee following review of information contained in an abstract submitted by the author(s). Contents of the paper, as in deepwater environments – one that does not rely on a single presented, have not been reviewed by the Offshore Technology Conference and are subject to large accumulation to justify development. Instead, Na Kika correction by the author(s). The material, as presented, does not necessarily reflect any position of the Offshore Technology Conference or its officers. Electronic reproduction, utilizes a cluster development concept, leveraging technology distribution, or storage of any part of this paper for commercial purposes without the written consent of the Offshore Technology Conference is prohibited. Permission to reproduce in print and innovative thinking to turn a collection of small to is restricted to an abstract of not more than 300 words; illustrations may not be copied. The medium sized fields into an economic cluster development abstract must contain conspicuous acknowledgment of where and by whom the paper was presented. tied to a floating production and storage vessel with sub-sea production systems, illustrated in figures 1 and 2. Abstract The Na Kika Development is located in water depths ranging As the “big cats” in deepwater environments are from 5,800 to 7,000 feet in the US Gulf of Mexico. The found and developed, the cluster development concept and project, a joint effort by Shell and BP (approximately 50% application of exploration and production technology will each), is a sub-sea development of five small to medium sized, have to become the norm to enable companies to develop oil and gas fields tied back to a centrally located, permanently- further into the deepwater. moored floating development and production host facility located in Mississippi Canyon Block 474. The sub-sea The joint venture arrangements associated with the infrastructure consists of 10 wells connected via three 25-mile development are as unique as its technical nature. The design flowline loops, 23 flowline sleds, and 50 miles of umbilicals and construction of the surface and subsurface development to the semi submersible-shaped host with topsides facilities for infrastructure has been executed by Shell as the ‘pre- fluid processing, and pipelines for oil and gas export to shore. production operator’, with BP assuming the ‘post production The Na Kika Host facility has a processing capacity of 110 operator’ role upon start-up of the first well. This unique mbopd oil and 425 mmscfd gas. First production was endeavor, rooted in the historical ownership arrangements of achieved in November 2003. The host and sub-sea the various fields, has leveraged the best of both companies to infrastructure is designed for other tiebacks to enable further the benefit of the partnership as a whole. development in the area. A sixth field will be tied back in 2004. Exploration and Appraisal History The first exploration leases for what would become the Na The Na Kika fields consist of multiple stacks of Kika area were acquired in 1985 over the Kepler, Ariel, turbidite reservoirs deposited in an unconfined by-passed Fourier and Coulomb fields (see figure 3). East Anstey and slope setting. These reservoirs are characterized by mud-rich Hershel leases were acquired in 1988. The paradigm at the depositional environments punctuated by sand rich time of the first lease acquisitions was the hunt for large channel/levee systems. accumulations (“Big Cats”) that could justify the installation of a stand-alone production system, requiring recoverable The diversity and complexity of Na Kika's subsurface volumes in the order of 500 MM boe or more. Prospects were offered a number of challenges requiring a novel approach to identified on the basis of 2-D seismic, and were amplitude- the development and application of well and sub-sea supported mid-Miocec turbidites. In contrast to the confined technology. The successful deployment of this technology basins conventionally developed in the Gulf area containing together with excellent execution has enabled an economic massive sheet sands, these prospects were located in development concept of what would otherwise be five sub- unconfined, bypass slope settings, and most likely contained economical developments on a stand-alone basis. hybrid, thin-bedded laminated sands. As such, the geology was complex, and well placement to exploit reservoir ‘sweet The key subsurface development risks and challenges spots’ and maximum connected volume would be difficult. included reservoir quality, continuity and connectivity (areally The biggest challenge to development, however, was the and vertically), aquifer size and support, well and reservoir deeper water depths (5800-7600 ft). At the time, the deepest performance and management, reservoir compaction, and fluid structure in the Gulf of Mexico was the Bullwinkle platform in compatibility (ashphaltenes). 1350 ft of water. Despite this, exploration drilling progressed
  • 2. 2 OTC 16699 in order to prove up volumes on the assumption that The five Na Kika fields are retained by an integrated, deepwater construction and production technology would regional Suspension of Production (SOP) approved by the evolve within the next decade or so. Mineral Management Service (MMS) in 1995. Shell drilled the first discovery well in the Na Kika Wells, Sub-sea System & Host Facility. The sub-sea system area in Mississippi Canyon (MC) 383 in June 1987, finding consists of 10 wells connected via three 25-mile flowline the high net-to-gross oil-bearing K1 sand at Kepler (5800 ft loops (two oil and one gas), 23 flowline sleds, and 50 miles of water depth). Additional exploration in the area led to the umbilicals to the semi-submersible shaped host with topsides discovery of the Coulomb gas field in MC 657 (7600 ft water facilities for fluid processing and pipelines for oil and gas depth) in November 1987, and the Fourier oil and gas field in export to shore. MC 522 (7000 ft water depth) in 1989. The ten wells include two at Kepler (oil), three wells The Kepler, Fourier and Coulomb fields were not of in each of Ariel (oil) and Fourier (gas/oil), and one well in sufficient size to merit stand-alone developments, nor did each of Herschel (oil) and East Anstey (gas). The wells and current technology of the day enable development in these completions campaign was undertaken in a batch mode to water depths. As such, interest in the area faded, and Shell facilitate the execution efficiencies associated with both refrained from further exploration in water depths greater than operations. The Kepler field is the largest oil-bearing 5000 ft as the Tension Leg Platform (TLP) era began to reservoir, and has been developed by horizontal gravel-packed evolve. wells. With the exception of the two horizontal gravel packs In 1993 an Area of Mutual Interest (AMI) was agreed at Kepler, all remaining wells at Na Kika are vertical or between Shell and Amoco that would allow both partners to deviated frac and packs. All three of Ariel’s oil wells are share risk and reward in the further exploration and appraisal multi-zone commingled completions, with two of the three of the area. The AMI encompassed 96 lease blocks around the wells employing intelligent well technology. The Ariel and Na Kika area, from Kepler in the northwest down to Coulomb Kepler fields are tied into a sub-sea loop, and are commonly in the southeast. The AMI required Amoco to shoot 3-D referred to as the northern fields, illustrated in figure 2. seismic over the whole area, and earn further interest by drilling exploration wells. As additional prospects emerged The three fields in the South are the Fourier, from the 3-D seismic, further interest was driven by evolving Herschel, and East Anstey fields. Fourier comprises both oil sub-sea production technology, and it became evident that and gas reservoirs, with one well developing three stacked oil sub-sea tiebacks could potentially be economically developed pays with an intelligent well completion. The three remaining within a 15 mile radius to a central production facility. reservoirs at Fourier are gas-bearing and are developed by a further two wells, of which one is a dual-zone intelligent well In 1995, three stacked oil-bearing pays were completion. The remaining gas well at Fourier is a single- discovered in the Ariel field and a further oil-bearing zone completion. The Hershel field is a single oil-bearing discovery was made at Herschel in 1996. With the Ariel and reservoir developed by a single-zone completion, and is tied Herschel discoveries, momentum built towards a potential along with the Fourier oil well into a southern sub-sea oil loop cluster development and concept selection for the (see figure 2). The East Anstey gas field is developed by a development began. Exploration drilling activity continued single zone completion. The East Anstey and two Fourier gas with a gas-bearing discovery at East Anstey in 1997 and wells are tied into a southern sub-sea gas loop, illustrated in appraisal drilling of Ariel and Fourier into 1999. With figure 2. concept selection finalized, project sanction was achieved in September 2000 with first production targeted for 2003. The sub-sea flowline systems are comprised of a 10”x16” pipe-in-pipe (PIP) loop connecting Kepler and Ariel Development Overview to the Host facility in the north, an 8”x12” PIP south oil The core Na Kika development is comprised of five small to flowline loop connecting Herschel and Fourier to the Host, medium sized fields (20 – 100 MM boe recoverable), in water and an 8” uninsulated gas flowline loop connecting East depths of 5,800 to 7,000 feet. The five fields: Kepler (MC- Anstey and Fourier to the Host. The PIP configuration was 383), Ariel (MC-429 Unit), Fourier and Herschel (MC-522 selected for its thermal benefits to assist in the control of Unit), and East Anstey (MC-607 unit), have been tied back to hydrate formation and paraffin deposition. Twenty-three sleds a centrally located (3-12 miles distance), permanently moored have been installed for well jumpers, tie-in umbilicals, and to floating production facility in a water depth of 6340 ft at MC- provide hubs for future tie-ins. Gas lift risers are connected to 474 (see figures 1 and 2). In total, 10 development wells have the base of the North oil loop risers to assist in production of been drilled to develop some 300 MM boe. Shell and BP the Kepler and Ariel fields, and the system is designed for share a 50% interest in all fields except East Anstey where future installation of gas lift risers for the South oil loop, if Shell has a 37.5% interest, with BP holding the remainder. required. All flowlines are connected to the host via steel First production was achieved on 26 November 2003 with the catenary risers (SCRs). opening-up of the East Anstey well. A sixth field, Coulomb, a gas field owned by Shell, is in a water depth of approximately The Host facility has a processing capacity of 110 7,600 ft and will be tied back to the host facility later in 2004. mbopd of oil and 425 mmscfd of gas. The oil and gas will be produced back to shore via two 75 mile export lines; an 18”
  • 3. OTC 16699 3 oil export pipeline to Main Pass 69 pump station, and a The Ariel reservoirs are delineated by a combination 20”/24” interconnect/export gas pipeline to Main Pass Bock of structural and stratigraphic trapping elements. The 260. Twenty-six riser baskets have been installed onto the reservoirs south of the Main Fault, with the exception of the host with eleven baskets currently used for the core Na Kika K1 and A2 Upper Sands, have an associated aquifer and are development and the remaining for future developments in the expected to exhibit a partial water drive. All the reservoirs to area. the north of the Main Fault have no associated aquifer and are pressure depletion. All reservoirs are oil-bearing, with the Field & Subsurface Overview exception of A1 Reservoir B-west, which has a gas The Na Kika area was an unconfined slope setting during the accumulation on top of the oil leg. This localized gas middle to upper Miocene period, characterized by mud - rich accumulation does not appear to extend north across the Main deposition punctuated by sand-rich channel/levee systems. Fault. The placement of the three development wells was Individual channel/levee systems typically had very low designed to optimize the exploitation of the reservoirs. All of sinuosity, suggesting relatively steep depositional gradients the completed zones are Upper Miocene (M2.8) amalgamated were present. Many of the systems are characterized by a channel sands. central seismic dim with bright flanking amplitudes, interpreted to be a mud-filled channel with adjacent sandy The major subsurface uncertainty in Ariel is both the levee/overbank deposits. lateral and vertical continuity, and connectivity of the reservoirs. The reservoirs are significantly channelized with a The Na Kika area consists of scattered salt fining upward sequence. There is a high risk that flow barriers piercements with intervening salt evacuation sub-basins. may exist within the reservoirs as evident in the dim lineations Trapping geometries are typically found along highs adjacent from the seismic amplitudes. Other key uncertainties are to the salt piercements (e.g. Herschel, Kepler Fields) and as aquifer support and reservoir compaction. drapes over deep inversion (turtle) structures (e.g. Fourier and Ariel Fields). While all the Na Nika fields are localized along East Anstey. East Anstey field is a dry gas accumulation major structural elements, every pay horizon has a comprised of a single reservoir EA6 located on lease blocks stratigraphic trapping element overprint. Vertical migration MC-607 and MC-608 in 6650' of water. EA6 is a well- and charge of the middle to upper Miocene Na Kika reservoirs defined, downthrown fault block trap with a minor occurs via deep-seated faults and/or along salt/sediment stratigraphic overprint. Two fault splays bound the reservoir interfaces. Lateral hydrocarbon migration may be possible to the north and northeast. All three EA6 well penetrations along the depositional axes of sand - rich Miocene (MC 607 #1 discovery well and sidetrack and MC 608 #-1) channel/levee systems that cross the area. encountered a high net/gross, massive sand package, which is interpreted to represent amalgamated sheet sands. The In total, there are some eighteen oil and gas geological setting is conducive to a large aerial extent and reservoirs developed, ranging in depth from 12,000 to 16,000 hence potentially strong aquifer support, and good lateral and feet true vertical relative to Mean Sea Level (water depths vertical connectivity. 5,800-7,000 ft) with average reservoir pressures in the range of 7000 to 9500 psi. The channel/levee type reservoirs One single-zone development well has been drilled possess a variety of internal seismic geometries reflecting the high on structure. The lateral extent and connectivity of the variety of sub-facies that occur: channel cut-and-fill, dissected EA6 reservoir across the field is a key uncertainty due to the sheets-splays, and subtle to large-scale gullwings- presence of faulting and/or discontinuous sand occurrences. channel/levee. Hybrid sands of massive sand overlain by a Additional uncertainties are primarily fluid and reservoir fining and thinning upward laminated sequence are the most related. commonly encountered reservoir type. Complexes of stacked, channel/levee systems tend to be highly aggradational with Fourier. The Fourier field is an oil and gas accumulation possible localized post-depositional erosion alteration of the located over a broad, low relief, four-way closure in block underlying deposits. The key subsurface development risks MC-522 in a water depth of about 7000 feet. The four-way include reservoir quality, continuity and connectivity (areal closure is located immediately southeast of the Fourier Salt and vertically), aquifer size and support, well and reservoir diapir and is related to a deep Jurassic turtle structure. The performance, reservoir compaction, and fluid compatibility individual reservoirs at Fourier consist of bypass facies (ashphaltenes). associated with mud-rich turbidite deposition in an unconfined setting. Cross-sections exhibit a range of channel and levee Field Descriptions related geometries including classic “gull-wing” profiles. All Ariel. The Ariel field is an oil accumulation comprised of of the tested objectives have hybrid reservoir architectures. overlapping, stacked reservoirs located on lease blocks MC- The more massive sands at the base of the reservoirs are 385, MC-429 and MC-430 in a water depth of 6200 feet. The thought to be a combination of turbidite fan lobes, overbank field is categorized as bypass-turbidites with a large, broad, 4- splays, and amalgamated channels. Typically, these massive way closure. A prominent, E-W striking Main Fault on block basal units are overlain by a fining-upward, thin-bedded MC429 bisects the amplitude anomalies and is interpreted to sequence. All of the traps have both structural and be sealing. stratigraphic components. Post-depositional scouring in some cases may have resulted in discontinuous reservoir
  • 4. 4 OTC 16699 connectivity. Major subsurface uncertainties include reservoir size (lack of seismic imaging under salt), areal connectivity, Three wells with six completions have been drilled to aquifer support, and reservoir compaction. develop six semi-stacked objectives (F5RA, F7RA, F7.5RA, F8RA upper, F8RA lower and F8RB upper). Subsurface Risks & Challenges The wide range of reservoir type and size, and the variability The key subsurface uncertainties are similar to Ariel in reservoir qualities encountered in each field in conjunction and also include fluid compatibility and the formation of with the area water depths, made it difficult to justify or asphaltenes during commingled production of the F8 execute stand-alone economic developments of the individual reservoirs. fields. It has taken the application of maturing sub-surface imaging technologies to better understand the size of the prize, Kepler. The Kepler field consists of the single K1 oil along with the evolution of deepwater construction and reservoir located on block MC-383 in some 5700 feet of production technology to enable an economic development water. The late Miocene K1 reservoir is interpreted to be a concept. massive, high net-to-gross amalgamated sheet sand. The updip west flank of the K1 is abruptly truncated by a channel The limited size of the average Na Kika field is a cut that forms part or all of the updip trap of the reservoir. direct function of the geologic setting and nature of the Seismic is unable to image the sub-salt northern flank of the channel/levee systems encountered. A wide variety of sub- K1 reservoir, thus the exact sub-salt extent and trap are facies is found in these systems, with an associated wide range unknown. The accumulation has a column height of 700 feet in reservoir quality and type. Reservoir targets in the Na Kika and is interpreted to have a partial water drive. area are not limited to "classic" levee thin beds and channel fill, but also include high net/gross, massive sheet sands as Seismic indicates the K1 sand thickening from under well. 50 gross feet updip to about 100 gross feet downdip of the discovery well. In addition to the two horizontal development The major reservoir uncertainties identified during wells, the K1 reservoir has been penetrated from top to base the field descriptions pose a number of risks and challenges to by the MC383 #1 and by pilot holes for theK-1 and K-2 the subsurface development and production, summarized as development wells. Although no oil-water contact has been follows: penetrated, the seismic amplitude shuts off with structure at the interpreted oil-water contact. • Inter/intra-reservoir connectivity. Likely drainage area per well/completion as influenced by the lateral and The Kepler field is developed by two updip vertical continuity of the reservoir zones. Key risk is to horizontal open-hole gravel packed oil wells (K-1 and K-2). reserves and production. Believed to be present in all Major subsurface uncertainties include reservoir size due to fields and in particular may have a major impact to the lack of seismic imaging under salt, areal connectivity of long-term sustainability of the oil reservoirs (Herschel, reservoir sands, aquifer support and reservoir compaction. Kepler, Ariel and Fourier). • Well planning and targeting of multiple reservoir zones Herschel. The Herschel field is an oil accumulation compounded by imaging uncertainty in sub-salt targets comprised of the H9 oil reservoir located in block MC-520 in (Ariel & Fourier). about 6800 feet of water. The Herschel H9 reservoir consists of high net/gross sheet sands overlain by channel-levee thin • Degree of aquifer support in the oil fields and the bed deposits in an unconfined bypass slope setting. Trapping sustainability of long-term production and well occurs by a combination of structural and stratigraphic performance. A risk in all fields, particularly Kepler. elements with a major down to the NW (radial) fault and base • Requirement for commingled production from multiple salt providing the updip trap on the north side of the prospect. reservoirs to maximize hydrocarbon recovery per well Seismically supported channelized/scour features provide the and minimize total well-count (Ariel & Fourier) stratigraphic trapping elements to the northeast. The reservoir is limited on the west side by sand pinch-out. The updip • Reservoir and well production management of with trapping and reservoir extent cannot be mapped due to lack of commingled zones in extreme water depths. Key fields seismic imaging under the Fourier Salt body. The down-dip are Ariel and Fourier. oil water contact is defined by the seismic amplitude shut-off. • Fluid compatibility issues due to the potential formation of aspartames from commingled reservoir zones The H9 oil reservoir is developed with a single well (Fourier). with a frac & pack completion. The well is optimally placed in a location far enough updip to prevent an early water • Compaction and sand production due to highly breakthrough while being far enough from the secondary gas compressible formations. A risk in all fields, in cap to avoid high gas production early on. particular, Ariel, Fourier and Kepler.
  • 5. OTC 16699 5 Management of Subsurface Risks and Challenges The benefit of developing several reservoirs with one well bore was supplemented by the incremental benefit Inter/intra-reservoir connectivity. Reservoir connectivity in afforded by commingling. It was estimated through these bypass turbidite reservoirs is perhaps the largest simulation that additional reserves could be developed by uncertainty present at Na Kika. Despite the good coverage of commingling due to the enhanced vertical lift characteristics 3D seismic, it is difficult to see the sub-seismic features that of the well, translating to lower liquid load-up in the well and can often influence lateral continuity. Although this is a key enabling higher water cut zones to produce longer. Figure 4 uncertainty in all fields, the most exposed are the Ariel, illustrates this for the Fourier field as an example. In this case, Fourier, and Herschel fields. it is estimated that some 10 – 12% more reserves are produced through commingling from the start of production, compared Reservoir static and dynamic simulation models were to a case where successive well re-entries are performed to rebuilt based on development drilling results in order to complete bottoms-up. provide tools to history-match and simulate observed production to supplement material balance approaches. However, commingling of reservoirs is risky due, Reservoir models were built into an integrated production amongst other things, to the possibility of early or excessive system model, incorporating sub-sea pipeline and host water breakthrough from one zone killing the well before the processing equipment. These tools will provide engineers other zones have produced their reserves, the presence of large with a good basis upon which to scenario plan and history initial pressure gradient differences between zones, and the match unexpected production behaviour. inability to test individual completions in order to estimate completion efficiency for well integrity management or A shared (Shell and BP) well and reservoir allocate production for material balance. In order to address surveillance plan was developed focused on managing these risks, it was decided to install a form of intelligent well, identified reservoir management uncertainties. A process was allowing commingling or selective production from completed used to prioritize uncertainties, and map against available data intervals through hydraulically actuated Interval Control types, with Value of Information (VOI) justification provided Valves (ICV), akin to sliding sleeves. Figure 5 illustrates a where necessary. This process helped to identify fluid typical intelligent well completion at Na Kika. These sleeves sampling and well testing types and frequencies in order to are operated by hydraulic pressure provided through sub-sea address key uncertainties, and specifically reservoir umbilical from the host facility, allowing the operator to connectivity. The presence of downhole pressure gauges in all choose which interval to produce from using a series of mouse wells greatly enhances the ability to perform surveillance in clicks from the Master Control Station (MCS). This type of this respect. well completion has been key to enabling economic development at Na Kika. Production and development contingencies were worked in parallel with start-up preparation activities in order Aquifer support. The two key efforts to mitigate against to assess and plan for scenarios that could put early production poor aquifer support (low drive energy) are waterflood and at risk. This involved assessment of completion, sub-sea, and riser gas lift. In the case of waterflood only the Kepler field topsides reliability in the context of traits unique to Na Kika, had sufficient reserve exposure to warrant the installation of as well as potential follow-up development activities to cover water-handling facilities and future water injection capability. production shortfalls if wells or reservoirs did not behave as Early performance data from Kepler will confirm whether or expected. not this will be necessary in the near term. The possibility for water injection capability was included into the original design Well planning and targeting. In order to intersect multiple of the host facility. stacked reservoirs at optimal drainage points, targeting the best possible reservoir quality indicated by seismic, careful Reservoir and well production management. Allocation well planning was required. Early and close interaction and measurement of volumes back to a source reservoir is between drilling engineers, geoscientists, and directional critical in order to manage reserves and subsurface risk and drilling partners was required in order to plan optimal well uncertainty through a field’s lifetime. Although downhole paths to reach targets fulfilling the well objectives. Well pressure gauges are installed in all Na Kika wells, allocation planning also involved the use of 3D interactive imaging tools of production volumes to wellheads and to reservoirs allowing engineers, geoscientists, and directional planners to commingled downhole will be a challenge. immerse themselves in the subsurface and find the optimal well path. Despite the ability of intelligent wells to allow isolation and testing between selective intervals, the Na Kika Commingled production from multiple reservoirs. In order designs installed in 9 5/8” production casing only allow for the to reduce well count and minimize the unit technical cost to ability to provide two selective intervals. In the case of three meet screening threshold, it was recognized early on that of the four intelligent wells installed at Na Kika, which are developing multiple stacked pays with one wellbore would be triple-zone frac and packs, two distinct completions are required, utilizing existing exploration or appraisal wells commingled through one ICV. This makes allocation of where possible. production back to the individual reservoirs difficult in these cases. In addition to subsurface allocation challenges, the
  • 6. 6 OTC 16699 wells produce into sub-sea flow-loops, where production from Compaction tolerant screens were utilized in Ariel multiple wells is commingled prior to reaching the host. In and Fourier wells in conjunction with telescoping joints in the case of the Herschel and Fourier oil wells in the South Oil order to absorb vertical strain expected with depletion. Loop, and East Anstey gas well in the South Gas Loop, this is not an issue since they all produce to their own separators. Conclusions However, the Ariel and Kepler oil wells in the North Oil Na Kika is the first deepwater application of the concept of a Loop, and Fourier gas wells in the South Gas Loop are dispersed subsea development tied-back to a centrally located commingled at the wellhead. Therefore, allocation of host that does not depend upon a single large accumulation of production from separators back to the wellheads without oil and gas. deferring production to test wells is difficult. A mix of oil and gas fields in combination with reservoir risks To address allocation of completion intervals related to inter/intra-reservoir connectivity and continuity, downhole, geochemical fingerprinting has been identified as multiple stacked reservoirs, limited aquifer support and the primary means of surveillance where sufficient differences reservoir compaction have made it necessary to design a between hydrocarbon fingerprints exist. Figure 6 illustrates development plan with maximum flexibility. The economic where this is the case in well A-3. Regular sampling and development and production of these dispersed, mostly sub- analysis of commingled flow streams will be carried out in economic fields on a stand-alone basis, has been strongly order to determine the proportion of contributing fluids, enabled by the application of new technology and novel accounting for the uncertainty that can be expected using these approaches to well completion and sub-sea design. methods. Acknowledgments In the north oil loop, fluid streams commingled into The authors would like to acknowledge the Na Kika the sub-sea flowline at Kepler and Arial will be measured subsurface and petroleum engineering teams (past & present) using sub-sea multi-phase flow meters (MPFM). Two of the at Shell Exploration & Production Company for their input three Ariel wells are equipped with MPFMs, with the third and contribution to this article, and for their efforts and well’s production being measured by subtraction. Similarly, perseverance through the 18-year history of Na Kika. Thanks one of the Kepler wells utilizes a sub-sea MPFM, with the and recognition also goes out to BP America Production Co. other being measured by subtraction. The use of sub-sea for their active participation and support throughout the MPFM technology reduces the requirement to test wells subsurface development planning. directly, drastically reducing production deferment. Fluid Compatibility. Fluid samples acquired downhole were subject to compatibility testing in order to determine any flow assurance concerns with respect to asphaltene or wax formation. The mixture of F7.5 and F8RA reservoir fluids developed by the Fourier-3 well proved to be susceptible to the formation of asphaletenes under conditions where the mixture was above bubble point. This led to the requirement to install downhole chemical injection in the well. In order to further manage risk, the intelligent well utility of F-3 will be used to deplete the F8RA reservoir to the same pressure gradient as the F7.5 reservoir prior to commingling in order to reduce the risk of cross-flow between reservoirs while both are above bubble point, and below the reach of downhole chemical injection. Compaction and sand production. Many of the reservoirs at Na Kika are prone to compaction and sand failure. Sand control completions were required in all wells, and mitigation against compaction-induced strain failure was a key driver of well design at Kepler, Ariel, and Fourier. For the Kepler field, horizontal openhole gravel- packs were chosen to maximize inflow potential, but primarily to manage the highly compressible K1 formation. A horizontal well trajectory was found to be the most tolerant to vertical compaction strain from a geomechanical perspective.
  • 7. OTC 16699 7 Field Kepler Ariel Fourier East Anstey Herschel Property Reservoir Fluid Oil Oil Oil & Gas Gas Oil Water Depth (ft) 5,700 6100 6940 16,040 6738 Number of Development Wells Two (K-1, K-2) Three (A-3, A-1, A-4) Three (F-2, F-4, F-3) One (EA-2) One (H-1 sidetrack) Well Completion Types Horizontal openhole gravel 1 dual-zone frac & pack 1 single-zone frac & pack 1 single-zone frac & 1 single-zone frac & packs (A-3 well), 2 intelligent (F-2 well, gas), 1 dual zone pack pack (H-1 sidetrack) triple-zone frack & packs intelligent frac & pack (F-4 (A-1 & A-4 wells) well, gas), 1 triple-zone intelligent frac & pack (F-3 well, oil) Bottom Hole Pressure (psi) 7230 7380 9253 9500 9530 Completion Interval (ft TVDss) ~12,020-12,070 ~12,00-12,900 ~13,820-16,330 ~16,100-16,200 ~16,470-16,5700 (Horizontal) Reservoir Type Amalgamated Sheet Sand Bypassed Channel sands Bypased Channels, Amalgamated Sheet Hyprid Chanel/Levee Amalgamated Levees Sand Trap Type Base Salt-Stratigraphic Stratigraphic Structural+Stratigraphic Structural Base Salt Net Reservoir Thickness (ft) 47 64-11 16-103 69 54 Table 1 – Na Kika field characteristics Kepler Ariel HOST Herschel Fourier Coulomb E.Anstey Figure 1 – Na Kika field locations
  • 8. 8 OTC 16699 Figure 2 – Na Kika host & sub-sea loop layout Figure 3 – The 18 year history of Na Kika
  • 9. OTC 16699 9 Comparison of Commingled vs. Sequential Production at Fourier Cum. production (% of BOE) 120% 100% F-3 well: F8RA L, F8RAU & F7.5 on after 3.5 months F-3 well: F8RA U (Asphaltene) F-4 well: F5 80% F-4 well: F7&F5 F-2 well: F8RB F-2 well: F8RB F-3 well: F7.5 F-4 well: F5 60% F-2 well: F8RB F-3 well: F8RA U F-4 well: F5 F-2 well: F8RB 40% F-3 well: F8RA L F-4 well: F5 F-2 well: F8RB 20% F-3 well: F8RA L F-4 well: F7 F-2 well: F8RB 0% 0 20 40 60 80 100 120 140 160 Time (Months) Commingled production Sequential production Figure 4 – At Fourier, commingling helps to produce 10-12% more reserves Figure 5 – Typical intelligent well at Na Kika
  • 10. 10 OTC 16699 Figure 6 – Geochemical fingerprinting is the only way to allocate between reservoirs in some cases