Monitoring Plan for a Cyclic Steam Stimulation (CSS) Pilot Test in Orinoco Oil Belt, Venezuela

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Monitoring Plan for a Cyclic Steam Stimulation (CSS) Pilot Test in Orinoco Oil Belt, Venezuela Repsol Technology Center (CTR), Madrid PEA 2016 Aberdeen, Scotland, UK

1. What is Pilot Test? Why monitoring it? 2. Monitoring Indicators (Parameters) 3. Monitoring Tools / Technologies 4. Simulation Studies 5. Monitoring Plan

What is Pilot Test? Why Monitoring it?

Definition, Key questions and Objectives Definition Pilot Test is a scaled down version of the commercial full field implementation of an EOR process Key questions What are uncertainties (required results) When are results needed Objectives To evaluate and reduce key uncertainties Provide fruitful data to facilitate full field investment and operating decisions Process and Reservoir well understood New Process and/or Green field (unknown reservoir) Pilot Test R & D Commercial Full-Field Application Commercial Full-Field Application No Field application

Why Monitoring Pilot Test? Pilot test performance must be understood and interpreted perfectly (uncertainty reduction) Monitoring: o Series of measurements which are done to evaluate the desired uncertainties (the only option to measure them) o Combination of traditional and state-of-the-art technologies/tools or methods Monitoring indicators (parameters) are covering all of uncertainties

Field Characteristics Orinoco Oil Belt, Venezuela Unconsolidated sandstone 1 st class reservoir! f S o k Average reservoir properties (3 main geological units) Average porosity: 31-33% Aver. permeability: 2-4 D Initial S w : 27-32% Net pay: 3-8 m Depth: 800-1000 m Viscosity : 8.4 API

Challenges of Our CSS Pilot Test? Pressure, bar (psi) 100 (1476) Pressure-Enthalpy Diagram Temperature o C ( o F) 58 (137) Oil viscosity @ RC (cp) 1376 1. Deep reservoir: about 1 km depth 2. High pressure reservoir: about 1300 psi (90 bar) 3. Challenging steam saturation condition: HP and HT (limit of thermal applications) 4. Operational limit: thermal packers, casing stress, etc. 5. Highest specific steam injection rate (STBD/ft): from 2.2 up to 3

CSS PILOT TEST DESIGN The CSS Pilot Test will be implemented only in Lower Unit For the CSS Pilot Test, there are available two wellpads Each wellpad has 10 horizontal wells, 5 wells in each side. Wellpads have different well length on their sides Well spacing is 300 m in both wellpads Two objectives: injectivity and type of insulation

Monitoring Indicators (Parameters)

Monitoring Indicators (Parameters) of CSS Pilot Test Class 1 Class 2 Class 3 Directly evaluated in the field Critical for CSS economic assessment Other required parameters 1. Steam injectivity 2. Steam quality 3. Steam distribution 4. Corrosion 5. Water retention per cycle 1. Steam-oil-ratio (SOR) 2. Oil recovery factor 3. Stimulation factor 4. Diluent amount Cold production stage: foamy behavior of the oil 1. Temperature 2. Pressure 3. Produced gas composition 4. Periodic sampling of produced liquids 5. Rate of produced fluids 6. Water salinity and sediments 7. Mineralogy 8. Steam ph

Monitoring Technologies/Tools or Methods

Monitoring Technologies Well Logging Core Sampling Observation Well Cross-well Seismic Monitoring Technology 4D Time-Lapse Seismic Steam quality Tools Fiber Optic Sensors Corrosion evaluation methods

Well Logging Combination of: Compensated Neutron Log (CNL) Compensated Formation Density (FDC) Log and Gamma Ray (GR) Log 1. Define oil, gas (steam), water zones and shale contents 2. Successfully used before in JOBO field 3. Run before start of CSS process (initial state) 4. Run during the injection stage of each cycle Cement Bond Log (CBL) and/or Cement Evaluation Tools (CET): Needs to be run before start of the process (it is proposed to have budget in order to repeat it after each injection cycle for confined well) to evaluate zonal/hydraulic isolation and prevent Surface Casing Vent Flow (SCVF) and/or Gas Migration (MG) Cased-hole Log: Wellbore integrity Production/Injection Logging Tools (PLT/ILT): as complementary to fiber-optic sensors, provides temperature and pressure data Note: Application of the mentioned logging tools should be confirmed in HW during injection phase and in cased-hole vertical observation wells

Fiber-Optic Sensors (FOS) o Pressure-Temperature combined Gauges (P/T Gauges) o Array Temperature Sensors (ATS) o High-Density Array Temperature Sensors (LxATS) o P/T plus ATS o Flowmeters plus P/T Gauges o Distributed Acoustic Sensing (DAS) System o Distributed Temperature Sensing (DTS) System

LxATS Sensors - (FOS) Calibrated temperature: 77 to 572 / 25 to 300 Thermal Accuracy: ±0.9 / ±0.5 Thermal Resolution: ±0.018 / ±0.01 Extended Temp. range to 630 / 330 possible Calibrated P range: Atm to 2000 psi / Atm to 138 Bar Max. Non-Operating P: > 6000 psi / > 413 Bar Pressure Accuracy: ±3 psi / ±0.2 Bar Pressure Resolution: 0.1 psi / 0.007 Bar Retreivable up to 15 times Electromagnetic Inspection (EMI), hydrogen insensitive and safe in high T environments Life time greater than 15 years

Compare LxATS, DTS & Thermocouples LxATS (Frequency) vs. DTS (Amplitude) LxATS long-term reliability @ High T above 220 LxATS react faster vs. DTS (per/sec vs. Average sampling) LxATS uses smaller amount of data LxATS includes optical PT LxATS (Frequency) vs. Thermocouples LxATS greater spatial resolution LxATS increased accuracy & resolution LxATS includes optical PT Redundancy: For each series of LxATS cable use of 4 Thermocouples are proposed

Observation Well (OBS) o Widely used in pilot test and EOR evaluations o At least two OBS is proposed (Middle and Toe) Should not be in the same side of the HW o Simulation studies to define optimum location o Fiber-optic sensors and cross-well seismic (recommended side-wall core sampling and well logging) o Reservoir Saturation Tool (RST) logging

Cross-well Seismic Technology o The same principle of Seismic but high detailed images o Two or more vertical wellbores (not applicable for HWs) o Vertical resolution: from 0.5 m to 100 m o Depth of investigation: from few meters to 1 km o Well separation: up to 2000 m (resolution??) o Able to distinguish steam zone and fluid saturations for desired area (wide area coverage) o It has to be done after each injection phase Receiver Source

4D TIME-LAPSE SEISMIC o Wide range of reservoir coverage o Distinguish phases (Steam and liquid) o It is proposed to perform baseline seismic survey o For better understanding in future evaluations o It is recommended to have budget for at least three surveys (including the base line) along the pilot test

4D TIME-LAPSE SEISMIC Advantages and Limitations Key Strengths 1. Do not require permanent installation 2. Repeat survey can be done when necessary 3. Well adapted for evaluating the drainage areas and bypassed areas, after some time of oil production 4. Larger area coverage than well logging and observation wells Key Limitations 1. Not continuous in time thus can miss the right moment to raise an alarm to make some operational decisions 2. Cost per Km 2 increases rapidly for small survey areas 3. Operationally not adequate for a monitoring frequency lower than a repeat once a year 4. Accuracy of time-lapse observations can be limited by variations in the near surface conditions due to seasonal changes

Steam quality Measurement at Well head Neutron Densitometer o Thermal neutron (Gamma) transmission principle o Large mass attenuation of thermal neutrons in liquid water o Mounted on the outside of the pipe o Weakly attenuated by pipe wall material o Measure steam quality @ wellhead o Portable, non-intrusive and safe for field use o Combine with Flow nozzle provide mass flow rate too o The availability in market should be checked

Redundant Steam quality Methods After generator Total Dissolved Solids (TDS) 1. Compare concentration of soluble solids in feedwater and liquid portion of generator output 2. Adding dilute acid to find concentration (Chemical titration-phenolphthalein indicator) 3. Ratio of added acid for output water and feedwater (5 times more acid for output means 80% quality) 4. Very accurate and most widely used 5. Sampling is critical and important process (avoid sampling at bends, tees, elbows or pipe fittings Orifice meter Technique 1. Measures gas and liquid flowrates 2. No need to phase separator or sampling 3. Appropriate for very high quality 4. Comparable with other methods like TDS 5. Continuous and online measurements 6. It is an approximate and measurements should be done at least 10 min after the steady-state flow

Corrosion Evaluation Methods Production Stage 1. Gas Chromatograph: H 2 S and CO 2 concentrations 2. H2S Dragger: as complementary to Gas Chromatograph 3. Metallic Coupons weight loss, stress corrosion cracking, X-Ray diffraction of corrosion products and electronic microscopic analysis 4. Remote Monitoring System (state-of-the-art) Injection Stage 1. Fresh feed water (low impurities and scales) 2. Steam ph of 9-11: minimize the acidic and corrosive effect of steam and reduce quartz dissolution

Core Sampling o Side-wall cores during drilling operations of HWs and OBS (simulation study) o To investigate grain-size and the presence of swelling shale contents o Post-mortem cores to supply overall stimulation factor and S or information

Simulation Studies (T-P profile and Observation well location)

CSS PILOT TEST CONCEPTUAL DESIGN

Simulation Studies Objectives o A Sector of well-pad area selected o Horizontal well lengths of 2200 ft and 4500 ft with Observation wells at middle point and toe o Recommended Pilot Plan production and injection constraints o Objectives: o Optimum placement of vertical observation wells o Performance of CSS pilot test and expected results Porosity Permeability, md Oil Saturation

Grid Refinements (Discretization) o Highly discretized cells along the HW, OBS wells and their Surrounding area o Grid refinement o o o along wellbore horizontal section around wellbore horizontal section In the middle and toe section of the wellbore vertically to the top (OBS well locations)

Observation Well Location Cross-well Seismic View Observation wells

Steam Height, m Temperature - Pressure Profile Vertical growth of steam zone at Observation well location 7 m away from HW Temperature, F T res 16.5 m (54 ft) t end 3 rd Inj 8 m (24 ft) t end 2 nd Inj 4 m (18 ft) t end 1 st Inj Pressure, psi

Height of Steam, (m) Recommended Steam height evaluation 18 16 14 12 10 8 6 4 2 0 End of 1st Inj. End of 2nd Inj. End of 3rd Inj. 5 7 10 12 Observation well location Lateral distance away from HW, (meter)

Observation Well Schematic of the HW and Obs. Well Top of the reservoir 16,5 m (54 ft) Observation Well 10 m (32 ft) Horizontal Well HW 7 meter away laterally Zero (Same level)

Pressure, psi T-time and P-time Profile (lateral distances of 7 m away from HW) Vertical distance above HW: Zero (same level) 10 m (32 ft) 16.5 m (54 ft) top of reservoir Vertical distance above HW: Zero (same level) 10 m (32 ft) 16.5 m (54 ft) top of reservoir

Monitoring Plan

Wellhead Injection Period 1 Feed Water 2 Steam Generator 0 Surface Obs. Well - Toe Obs. Well - Mid 4 5 Heel Toe 3 6

Wellhead annulus Production Period 8 Test Separator 9 10 Production 12 Separator Surface 11 Obs. Well - Mid Obs. Well - Toe 4 5 7 Pump level Heel Toe 3 6

Class 1: Indicators Parameter Steam Quality (X s ) Steam Injectivity Steam Distribution Water retention per cycle Measurement tool / Technique Frequency Relevance @ Wellhead: Neutron densitometer After generator: TDS and/or Orifice method @ Bottom-hole: using wellbore model simulator to history match T & P at sand face Steam injection rate and pressure at wellhead T-P profile from fiber-optic sensors along the HW and OBS wells and cross-well seismic data Material balance Daily Periodically or daily Daily Daily Daily in case of FO sensors, At the end of each injection phase for crosswell seismic End of each cycle Heat loss management and economic evaluation Reservoir injectivity, swelling effect of shale contents Steam zone extension, vertical and horizontal sweep efficiency Change in wettability, relative permeability hysteresis, @ Inj. Phase: keep steam ph 9-11 by adding caustic materials @ Prod. Phase: Metallic Corrosion evaluation coupons: weight loss, stress corrosion cracking, X-Ray diffraction of corrosion products and electronic microscopic analysis Possibly: Remote corrosion monitoring system Daily Per Cycle Real time Safety of personnel, facilities and process

Class 2: Indicators Parameter Measurement tool / Technique Frequency Relevance Inc. SOR Calculation: q s /q oinc Daily Economy of the process, Energy management Oil recovery factor (R F ) Calculation: Net N p /N STOIIP End of each cycle and end of the process Economy of the process Stimulation factor Calculation: q ohot /q ocold End of each cycle and end of process Economy evaluation Diluent amount Material Balance Daily Economy evaluation

Class 3: Indicators Parameter Measurement type Frequency Relevance Temperature and Pressure Produced gases composition Oil, Gas, Water and Steam production rate Produced Oil composition and characteristics Water salinity and Sediments Fiber-optic sensors / thermocouples Gas chromatography and H 2 S Dragger Appropriate flow meters at surface Sampling of produced liquids Surface facility and Laboratory analysis Daily Daily Monthly Periodic From six months before start of first steam injection period: monthly measurements From one month before start of first steam injection period: weekly measurements and The last week measurement should be done on the last day before steam injection. However, during the hot production phase the plan is different and sampling is done in the following way: for first week of hot production daily measurement, from second week to the fourth week, weekly measurement and then monthly sampling. It is repeated for the other cycles too. Heat management and energy balance Corrosion, safety and Steam distillation effects Material balance calculations Density, viscosity and composition, Presence of mobile water, thief or high permeable zone and sand production rate Steam ph ph meter at well head or after generator Daily during injection phase Corrosion evaluation Side-wall coring, mud cuttings, Mineralogy well logging During and after well drilling operations (HW and Observation wells) Shale contents

Final Remarks A pilot test can be successful or unsuccessful depending on the applied technology or reservoir conditions. However, a pilot test will be conclusive or non-conclusive depending on the appropriate execution of an all-inclusive monitoring plan Cost reduction, related to the partial execution of monitoring plan, would be a big risk leading to a non-conclusive pilot test (waste of time and money)

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