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Content Ⅰ. Brief Introduction of Kerui Group Ⅱ. Nitrogen Stimulation and Injection-production Technology Ⅲ. Application Cases Page 2
Ⅰ. Brief Introduction of Kerui Group Kerui Group is a very rapid development of comprehensive International enterprise group integrating high-end petroleum equipment research, integrated oilfield engineering technological service, and oilfield EPC turnkey contracting. 57 Global Branch Organization 16 R&D centers 7 Technical Support Centers 6 Research Laboratories Page 3
More让石油和天然气的获取更加高效 I. Brief Introduction of Kerui Group High-end Petroleum Eequipment Research Drilling Equipment Industrial Park Oilfield Special Operations Equipment Industrial Park Natural Gas Compressor Industrial Park Wellhead Equipment Industrial Park High-end industrial park covers oil and gas exploration and development, oil and gas gathering processing, marine equipment, petroleum equipment full industry chain, in an area of 2.4 million square meters. Meeting customers demand for one-stop sourcing (Drilling and workover machines, production equipment, operating equipment, wellhead equipment, compressors, process equipment of oil and gas, LNG equipment, special equipment, oil pipeline, etc). Page 4
I. Brief Introduction of Kerui Group Integrated Oilfield Engineering Technological Service Oil & Gas Field Block Evaluation Single Well Program Design Single Production Increasing Program Design Economic Evaluation Drilling Engineering Service Drilling Fluid and Completion Fluid Technology Service Cementing Technology Service Directional Well Technology Service Mud Logging and Well Logging Technology Service Well Completion Engineering Technology Service Conventional Workover Technology Services Complicated Oil & Gas Well Fishing Service Horizontal Well Sidetracking Technology Service Membrane Nitrogen Injection Engineering Technology Service Acidification and Fracturing Engineering Technology Service Coiled Tubing Engineering Technology Service Wet Steam Generator Technology Service Individualized Geological Research and Evaluation Factory Mode Design and Construction Large-scale Project Implementation and Organizational Management Digitization Development Whole Process Management Platform Page 5
I. Brief Introduction of Kerui Group Oilfield EPC Turnkey Contracting DESIGN CAPACITY PROCUREMENT CAPACITY CONSTRUCTION CAPACITY Kerui Group has long-term strategic cooperation with Xinjiang branch, CPE Beijing branch and Xinan branch 600 professional technicians 173 senior engineers Professional EPC procurement teams with more than 100 engineers Procurement localization Completed international procurement network platform and the excellent global transportation arrival capability More than 1,200 engineering and construction personnel With more than 10 years construction experience to realize the localization of construction resources Construction and testing equipments are nearly 480 sets Comprehensive manufacture equipments are more than 200 sets, including pressure vessel, large-scale lifting, forming, welding and machining facilities Oil and gas gathering and processing, gas processing and comprehensive utilization, LNG, water treatment, oil refining project, etc. Page 6
I. Brief Introduction of Kerui Group Integration Cost Speed Efficiency Powerful combination of multinational enterprises with the best supplier integration capacity All-in-one petroleum equipment manufacturer,reducing external procurement cost Excellent capacity of global arrivals with the low transportation cost and high efficiency Professional technical team, comprehensive integration of technical services, to ensure the project run efficiently Fast and Efficient Ensure Global Customers Achieve Higher Revenue Page 7
Content Ⅰ. Brief Introduction of Kerui Group Ⅱ. Nitrogen Stimulation and Injection-production Technology Ⅲ. Application Cases Page 8
Ⅱ. Nitrogen Stimulation and Injection-production Technology 1. Why Choosing Nitrogen bad thermal conductivit low surface tension chemical property steady Nitrogen property low critical temperature density 1.25 kg/m 3 high compacting factor available water sensitive reservoir non corrosive enrich air source Nitrogen advantage better boost pressure low cost high security A kind of clean, efficient and safe renewable resources Page 9
Ⅱ. Nitrogen Stimulation and Injection-production Technology 1. Why Choosing Nitrogen Comprehensive cost performance comparison table of different injection media Comparative item N 2 CH 4 CO 2 Price Cheap Expensive Expensive Material obtain Easy Easy Not easy Security Well Bad Well Miscibility Hard Little hard Easy Cost performance High General General Ground construction investment Small High High Displacement efficiency Middle High Highest Maintenance workload Light Heavy Lighter Impact on environment Nothing Great Nothing Flooding Cheap Easy Well Hard Higher High Low Heaviest Great Nitrogen is the ideal medium injection Page 10
Ⅱ. Nitrogen Stimulation and Injection-production Technology 1. Why Choosing Nitrogen Nitrogen foam Foam system: N 2 +foam agent+water; Foam compound system: foam + polymer solution Selective water plugging + SAA Adjustable density;good stability; Small affected by temperature and pressure; High viscosity, strong carrying capacity; Reduce the loss of adsorption; Strengthen plugging ability and selectivity. fractional 分流量 flow (ml/min) 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Foam diversion experiment results in high and low permeability cores 0 30 60 90 120 150 180 210 Time 时间 (min) 高渗岩心 high perm 2100mD cores 2100 低渗岩心 md low perm 706 cores md 706 md pressure difference (MPa) 压差 (MPa) 1.4 1.2 1 0.8 0.6 0.4 0.2 0 water of saturation cores irreducible 残余油岩心 oil cores 饱和水岩心 0 2 4 6 8 10 注入体积 (PV) inject volume (PV) Foam diversion experiment results in water and oil cores 分流量 (ml) 3.5 3 2.5 fractional flow (ml) 2 1.5 1 0.5 inject 注泡沫 foam water 后续水驱 flooding water of saturation cores 0 0 2 4 6 8 10 12 驱替体积 (PV) displace volume (PV) irreducible 饱和水岩心 oil cores 残余油岩心 Page 11
Ⅱ. Nitrogen Stimulation and Injection-production Technology 2. Nitrogen Service of Kerui Group (1) One-stop All-around Service Integrated Services and Solutions for End-to-end Oil Field Nitrogen Generation and Injection Euipments R & D and Manufacture; Analysis for Well Selection; Project Optimization Text in here Text in here Oilfield Construction and Adjustment Effect Tracking and Evaluation Follow-up Service Raise Input-output Ratio, Maximize Customers Benifits Page 12
Ⅱ. Nitrogen Stimulation and Injection-production Technology 2. Nitrogen Service of Kerui Group (2) Membrane Nitrogen Generation Technology Oxic airflow Hollow Fiber easily through PRISM Composite Membrane; Dry-wet Spinning and waterproof; Design index of oil resistence is 20 ppm; air enter water CO 2 O 2 air N 2 exit Radius of membrane wire is 0.5 mm and air N 2 dust permeability through the membrane is hard through high; Working pressure: 1.8~2.4MPa; Working temperature: 5~65 ; Separation Efficiency: 48~53%; Attenuation ratio per year: 1.2%; The unit can work stably for ten years. Applicable to high temperature, frigid, windy and dusty oilfield worksite. Page 13
Ⅱ. Nitrogen Stimulation and Injection-production Technology 2. Nitrogen Service of Kerui Group (2) Membrane Nitrogen Generation Technology Meet the demand of Nitrogen for all kinds of construction conditions Simplify working process, cost savings More convenience and economy Nitrogen generation and nitrogen injection seamless docking Skid-mounted membrane separation Nitrogen generation equipment Vehicle-mounted membrane separation Nitrogen generation equipment Page 14
Ⅱ. Nitrogen Stimulation and Injection-production Technology 2. Nitrogen Service of Kerui Group (3) Manufactured the first offshore platform membrane nitrogen generation N 2 flow capacity: 900Nm 3 /h N 2 purity: 95%-99.99% Normal discharge pressure: 35MPa Diesel engine driven Researched and manufactured the first offshore platform membrane nitrogen generation. Production of "the water filling nitrogen low density foam fluid flushing system" review by CCS The first application of offshore platform of diesel driven membrane separation nitrogen generation device, and applied to the cnooc bohai sea oil field. Page 15
Ⅱ. Nitrogen Stimulation and Injection-production Technology 2. Nitrogen Service of Kerui Group (4) High volume, super pressure nitrogen gas generation Flow capacity: 2000, 3600Nm³/h Normal discharge pressure: 35MPa(5000psi) 50MPa(7000psi) 70MPa(10000psi) 50MPa supercharger Adapt environment temperature: -60 ~65 70MPa supercharger Page 16
Ⅱ. Nitrogen Stimulation and Injection-production Technology 2. Nitrogen Service of Kerui Group (5) High Purity Nitrogen PSA Nitrogen making machine (Carbon molecular sieve pressure swing adsorption nitrogen making machine) Electric power: 1650kW Nitrogen flow rate: 2000Nm³/h Output pressure: 50MPa Purity: 99.99% Medium voltage upercharging equipment in skid High voltage supercharging equipment in skid 50MPa 增压机 Air compressor Nitrogen generating equipment in skid Airhandling equipment in skid Storage tank in skid Page 17
Ⅱ. Nitrogen Stimulation and Injection-production Technology 2. Nitrogen Service of Kerui Group (6) Motivation in a Variety of Forms Device Type Air Compressor/ Booster Pressure Rating (MPa) Characteristic Remark Diesel driven Diesel driven 35/70 Electrical drive Electrical drive 50 Equipment performance is stable, suitable for remote scattered Wells Low cost, easy to maintain and environmental protection High cost Use the wellsite power grid Combination drive Electrical drive 35/50 Power load small Costs less Driven by gas engine Driven by gas engine 50 Nearby using natural gas, high performance-price ratio Use gas source Combination drive and Electrical drive can be exchanged,improve the complex environment adaptability and economy. Page 18
Ⅱ. Nitrogen Stimulation and Injection-production Technology 3. 9 Nitrogen Stimulation ServiceTechnologies Enchance Oil Recovery Nitrogen Huff and Puff Technology Nitrogen Flooding/WAG Flooding Technology Nitrogen Foam Combination Flooding Technology Nitrogen Foam Profile Control (Water Coning Control) Technology Steam Fingering 蒸汽超覆 Steam Overlaping Nitrogen Energization and viscosity reduction (heavy oil reservoir) Nitrogen foam profile control technology Production Auxiliary Nitrogen Unbalanced Drilling Technology Nitrogen Foam Sand-washing Technology Nitrogen(Foam)Flowing Back & Induced Flow Technology Nitrogen Dispalcement/ Sweep Technology Nitrogen foam sand-washing Technology Page 19
Ⅱ. Nitrogen Stimulation and Injection-production Technology 3. 9 Nitrogen Stimulation ServiceTechnologies (1) Nitrogen Huff and Puff To inject a certain amount of nitrogen into oil well in a short time and shut in for some time. When the nitrogen diffuses in the reservoir: Gravitational differentiation displacement Dilatation energy displacement Water coning control Injected Gas 注 Gas 气 Injection 原理 Principle 动画示 Diagram 意图 Attic Oil are employed to displace the crude oil in the reservoir to enhance oil recovery. Water Remained Page 20
Ⅱ. Nitrogen Stimulation and Injection-production Technology 3. 9 Nitrogen Stimulation ServiceTechnologies (2) Nitrogen Flooding/ WAG Flooding I Type Channel Water flooding development WAG flooding development II Type Channel Utilize high injection/ low production well pattern and WAG injection mode to change strong/weak streamline distribution (After gas is injected to higher part of the reservoir, it gathers at Ⅱ type of channel. With the pressure increase weak streamline will open ). Thus residual oil between wells is driven out and oil recovery is enhanced. Page 21
Ⅱ. Nitrogen Stimulation and Injection-production Technology 3. 9 Nitrogen Stimulation ServiceTechnologies (3) Nitrogen Foam Combination Flooding 采收率 % 60 50 40 30 20 Foaming Flooding Water flooding recovery: 42.5%, Residual oil saturation: 51.75% 7.1% Foam flooding Foam flooding recovery:49.6% 采收率 % 60 50 40 30 20 Foam Combination Flooding Water flooding recovery :34.8%, Residual oil saturation: 58.7% 21.5% Foam combination flooding Foam combination flooding recovery: 56.3% 10 10 0 0 1 2 3 0.1+0.3PV 注入倍数 PV Pore Volume Injection 0 0 0.5 1 1.5 2 2.5 0.1+0.3PV 注入倍数 PV Pore Volume Injection Test model: double tube: 60 2.5cm permeability: 2, 0.8μm 2 temperature: 80 back pressure: 6.0MPa oil viscosity: 81mPa s water salinity: 8379mg/L Page 22
Ⅱ. Nitrogen Stimulation and Injection-production Technology 3. 9 Nitrogen Stimulation ServiceTechnologies (4) Nitrogen Foam Water Coning Control Technology Deficiency in traditional schemes Advantages of this technology It is not easy to control the pressure. Plugging rate reduced with the increase of water injection. Artificial interlayer and anti-water-coning application effect is not ideal. Covering deficit of formation energy and slowing down bottom water coning Gravitational differentiation forms secondary gas top oil Bottom water coning water N2 oil Water coning control to increase elastic energy Nitrogen foam blocks bigger pores to shut off water Nitrogen foam has good stability in porous media Page 23
Ⅱ. Nitrogen Stimulation and Injection-production Technology 3. 9 Nitrogen Stimulation ServiceTechnologies (5) Technology of energizing & viscosity reduction with Nitrogen (Heavy oil reservoir) Maintain reservoir pressure, increase the flexibility- energy Oil Displacement Mechanism Under high pressure, nitrogen partly soluble crude oil make volume expansion Immiscible displacement, the formation of emulsions, reduce oil viscosity Expand swept volume,reduce the interfacial tension Page 24
Content Ⅰ. Brief Introduction for Kerui Group Ⅱ. Nitrogen Stimulation and Injection-production Technology Ⅲ. Application Cases Page 25
Ⅲ. Application Cases 1. Nitrogen Huff and Puff (Carbonate Reservoir) 4.5 4.0 3.5 3.0 Gas oil replacement ratio in the 1 st cycle 4.1 Well No. Gas injection rate (10 4 m 3 ) Water injection rate (m 3 ) Before gas injection After gas injection Compare Daily fluid production (t) Daily oil production (t) Water cut (%) Daily fluid production (t) Daily Oil production (t) Water cut (%) Daily oil production (t) Water cut (%) oil increment in the 2 nd Cycle (t) 1# 826m 3 200 35 0 100 53.0 12.6 69.0 12.6-31.0 1453 2.5 2.0 1.5 1.0 0.8 1.2 1.4 1.6 1.7 2.3 1.9 2# 50 979 10 0.4 93 24.2 22.6 6.7 22.2-86.3 131.4 3# 50 1093 16 0.5 99 19.3 7.2 62.7 6.7-36.3 895 4# 60 1348 23 2 87 19.6 5.6 71.7 3.6-15.3 554 0.5 0.0 1# 2# 3# 4# 5# 5# 50 1850 41 1.5 96 45.1 6.3 85.7 4.8-10.3 6.3 6# 50 793 54 2 93 28.3 9.5 61.0 7.5-32.0 742 6# 7# Average 平均 7# 55 1379 17 0.1 92 57.0 11.3 54.3 11.2-37.7 799 Average / / 28 0.93 94.3 35.0 10.7 58.7 9.8-35.6 654 Page 26
Ⅲ. Application Cases 1. Nitrogen Stimulation (Tight Sand Reservoir) tight sandstone reservoir in Peru Porosity 5%-25% Challenge Low permeability, between0.01~2md Low recovery with flexible develop Solution Nitrogen energizing, lifting formation pollution, dredging oil flow passage Nitrogen form a "gas cap", increase the driving pressure, increase crude oil production Customer value Operation results in 40 wells show that the single well production increment is 2,300 barrels Page 27
Ⅲ. Application Cases 1. Nitrogen Stimulation (Tight Sand Reservoir) 65 60 55 50 45 40 35 30 25 20 15 10 5 0 2013 年 9 月 18 日 2013 年 9 月 20 日 2013 年 9 月 22 日 作业后日产油量 / 桶作业前平均日产油量 / 桶作业后累计增油量 / 桶 Daily oil production after the job/bbl Daily oil production before the job/bbl Cumulative increase of oil after jobs/bbl 2013 年 9 月 24 日 2013 年 9 月 26 日 2013 年 9 月 28 日 2013 年 9 月 30 日 2013 年 10 月 2 日 2013 年 10 月 4 日 2013 年 10 月 6 日 Olympic PN-69 Production 井氮气吞吐后增产情况 situation after steam huff and puff Page 28 2013 年 10 月 8 日 2013 年 10 月 10 日 2013 年 10 月 12 日 2013 年 10 月 14 日 2013 年 10 月 16 日 2013 年 10 月 18 日 2013 年 10 月 20 日 2013 年 10 月 22 日 2013 年 10 月 24 日 2013 年 10 月 26 日 2013 年 10 月 28 日 1800 1600 1400 1200 1000 800 600 400 200 0 Gas injection rate 48321 cube (1,546300 c. f.), gas injection time 49h, increase production>3000bbl by the end of that year.
Ⅲ. Application Cases 1. Nitrogen Stimulation (Tight Sand Reservoir) daily fluid production(t) daily oil production(t) 4# antiwater-coning & open the well 80t 32t 5# & 6# are effected one after another 72t 70t Production curve for well groups (12 wells) Ggas injection effect of 7#, 8# and 9# gets better 25t 95t daily gas injection(t) 日注气量 ( 吨 ) Water cut(%) 80% WAG in the well group since March 10, 2014 61% Time (yyyy-mm-dd) Page 29
Ⅲ. Application Cases 3. Nitrogen Foam Combination Flooding Reservoir Characteristics: D=1125m,φ=37%,K=2304mD ρ=0.9743g/cm3,μ o =1619mPa.s P i =11.27MPa,T=60 Implementation Situation: Utilize clear water to prepare mother solution and inject after dilution with waste water. Pre-slug: 0.03PV (1800mg/L Polymer+1.0% Foaming agent), it is used for leading edge preotection and sacrifice. Main slug: 0.3PV, Nitrogen and [1600mg/L Polymer+0.5% Foaming agent], alternate injection, alternate period is 4 days [Gas injection two days and liquid injection two days]. Page 30
Ⅲ. Application Cases 3. Nitrogen Foam Combination Flooding Injection Curve for Central Well Nitrogen (m 3 /d) µª Æø ^3/d ÅÝ Ä- ¼Á Foaming agent (t/d) t/d ¾Û ºÏ Îï ÈÜ Polymer solution (m 3 /d) Òº m^3/d 15000 10000 5000 3.0 0 2.0 1.0 0.0 150 100 50 0 Front Inject mixture polymer & of nitrogen, foam polymer, foam WAG, GLR:1.0 WAG, GLR:0.6 WAF, GLR:0.6 Polymer & Surfactant solution WAG, GLR:0.3 4-225-1 6-1 7-1 8-1 9-1 10-1 11-1 12-1 1-1 2-1 Cumulative injection: nitrogen 103.6 10 4 m 3, polymer 53.4 t, surfactant 259.6 t. Page 31
Ⅲ. Application Cases 3. Nitrogen Foam Combination Flooding Daily oil production of this well group significantly increased while water cut remianing decline. ÈÕ 1600 ²ú Òº 1200 t/d daily fluid production t/d ÈÕ ²ú ÓÍ t/d daily oil production t/d Û ºÏ º Ë % Water cut% 800 150 100 96 50 92 88 +62t/d 75 93.8% -5.1% 03.4 5 6 7 8 9 10 11 12 04.1 2 2 月 137 88.7% Page 32
Ⅲ. Application Cases 4. Nitrogen Foam Water Coning Control daily fluid production 21t 22t 22t 1.97 4.9MPa daily oil production 2t Gas injection Water cut 91% 0% Low water cut, stable oil production, good coning control effect, with the oil increment in this stage 1413t. Production curve for XX well during operation period Page 33
Introduction for Kerui Nitrogen Stimulation Technology 4. Nitrogen Foam Water Coning Control Challenge HS heavy oil reservoir: buried depth 504 m, low permeability, medium porosity, medium to strong acid sensitivity and medium to weak water sensitivity and salt sensitivity. Steam huff and puff: now in the high water cut development stage. With the continuous increasing of recoverying, the edgebottom water intrusion is serious due to reservoir pressure drop and heterogeneity. Solution To enhance oil recovery by the ways of injecting nitrogen foam, blocking high permeability zone, suppressing bottom water coning, and increasing the steam sweep efficiency. Production curve of H4 well before and after operation Monthly output m 3 Operation Date Monthly Oil Production Monthly Liquid Production Watercut Water cut % Customer Value By the end of 2014, the success rate is over 80% in the overall project; water cut decreased by 22.0% after operation, monthly output in the peak increased by 86.0m 3 than before. Page 34
Ⅲ. Application Cases 5. Energization and Viscosity Reduction for Heavy Oil Challenge Heavy oil exploitation in alternating thin layers of Columbia is hard to enhance oil recovery influenced by interlayer heterogeneity and physical properties of crude oil. Crude oil: API 12.5-15, high viscosity, poor fluidity. VSH: 10-15%, salinity: 8000-20000 ppm. Solution Heavy oil stimulation project in Columbia Profile control technolog of thermal recovery system in alternating thin layers, supported with the casing insulation in injection process, Nitrogen and steam slug injection technologies, form the complete set of heavy oil development system in Colombia. Customer Value Operation results in 556 wells show that the average single well production increment is 2600 barrels. Page 35
Ⅲ. Application Cases 5. Energization and Viscosity Reduction for Heavy Oil Oli Increment Statistics of XX Well in G Oilfiled BOPD 4500 4000 4019.34 3500 3000 +2666 bbl 2500 2000 1500 1000 1670.5 1353.11 500 Last cycle DR 19% The cycle Steam: 5500MMBTU, Nitrogen: 65500m 3, Foaming agent: 5t; Oil increment in one cycle: 2666 bbl Page 36
Global Customers We provide oilfield equipment, technical solutions and services for over 220 oil companies and over 350 engineering and service companies worldwide. Page 37
Customer Referral Best and high efficiency serves - got customer high approval from the customers Customer referrals from overseas (Columbia, Peru etc.) and domestic (Sinopec, CNPC, CNOOC) petroleum companies. Page 38
A Doer for Social Responsibilities Kerui Charitable Foundation Establishment Donating for Hope in Elementary School Participating in Bogota Marathon Donating for Yushu Earthquake Disaster Area Participating in Dongying International Marathon Donating for Kerui Charitable Foundation Page 39
让石油和天然气的获取更加高效 MORE EFFICIENT IN OIL&GAS EXTRACTION The hotline 24 hours a day: 0086-400-8129003 0086-400-8129005 After-sales service email: service@keruigroup.com Page 40