Group Project: Basic Drilling Engineering

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Group Project

BASIC DRILLING ENGINEERING

Gabriel Ros Egea


Students Apirat Natukorn
Ratikorn Sornumpol

Master Degree In Georesources And Petroleum Engineering


CHULALONGKORN UNIVERSITY | BANGKOK, 2023
Group Project

Contents
1. STATEMENT..................................................................................................................................... 1
1.1. Appendix 1 .............................................................................................................................. 1
1.2. Appendix 2 .............................................................................................................................. 2
1.3. Appendix 3 .............................................................................................................................. 2
2. INTRODUCTION ................................................................................................................................... 3
3. ENVIROMENT AND LITHOLOGY ...................................................................................................... 4
3.1. Environmental considerations ................................................................................................ 4
3.2. Lithology structure .................................................................................................................. 4
4. COMPLETION .................................................................................................................................. 7
4.1. Completion type...................................................................................................................... 7
4.2. Sand control ............................................................................................................................ 7
4.3. Completion string.................................................................................................................... 8
4.4. Perforation .............................................................................................................................. 8
4.5. Casing material........................................................................................................................ 9
4.6. Operation .............................................................................................................................. 10
5. SURFACE FACILIES ......................................................................................................................... 11
6. STEAM SIMULATION ..................................................................................................................... 12

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1. STATEMENT
PECU company is drilling a vertical well PECU-1. The well has encountered two different
reservoirs. The top reservoir is semi-consolidated sandstone interbedded with shale from the
depth of 6,500 - 6,800 ft. The lower reservoir is limestone with some fractures from the depth of
7,500 ft to 7,800 ft. Appendix 1 exhibits lithology and petrophysical property summary. An open
hole Drill Stem Test (DST) was performed at the limestone reservoir using 5” drill pipe and result
is shown in Appendix 2.
Your task as petroleum engineer team working for PECU is to prepare a production plan for the
PECU-1 well including detailed well completion design and schematic with completion fluid,
perforating, etc., when the drilling rig is on location. In addition, you must also identify necessary
surface production facilities with corresponding process flow diagram. You could also prepare
additional operation programs, e.g. well monitoring, well stimulation, workover, etc., in order to
maximize and prolong production from the PECU-1 well. You must succinctly describe the
rationale for your designs and operational practices. Any assumptions that you need to make
must have valid reasons to support and do not conflict with the given information. Remember
that the well will be put on production as soon as possible as the company is now in financial
difficulties. Because PECU company would prepare to pay fine and environmental damage
compensation to the National Resources Department after being accused for the spill of mud into
the local creek.
Current Well Status:
The well was drilled with 8.75” bit to the total depth of 7,850 ft with KCl-Polymer mud. Last casing
in the hole is 9.625” with shoe depth at 6,000 ft and top of cement at 3,000 ft. At the moment the
well is waiting for next operational instruction after the drill stem test is finished.
General Information
The PECU-1 well is located onshore next to the national park. It is also close to a small town of
2,000 population that is well known for being conservative and environmental activists. Most
people work for a lumber company nearby. There is also an old small oilfield nearby, named
Timber, where only a few wells are being produced with sucker rod pump. However, those wells
are reportedly completed with gravel pack completion and frequently having steam stimulations
to clean up wax deposit in the wellbore.

1.1. Appendix 1
Lithology and Petrophysical Properties Summary of PECU-1
5,800 – 6,500 Brown Shale
6,500 – 6,800 Semi-consolidated Sandstone interbedded with Shale. (20 feet net oil
sands) Reservoir pressure in the oil bearing formation is around 1,800
psi.
6,800 – 7,200 Reddish Brown Shale
7,200 – 7,500 Dark Grey Shale
7,500 – 7,800 Limestone with 15% average porosity, water saturation increases
linearly from 15% at the top of formation to 95% at 7,750 ft
7,800 – 7,850 Basement rock

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1.2. Appendix 2
Drill Stem Test (DST) Report of PECU-1
The open hole DST was abandoned when produced formation fluid reached the surface after the
well was allowed to flow for 15 minutes. Memory down hole pressure sensor was malfunctioned
resulted in no record of bottom hole pressure. However, subsequent well control operations
indicated an approximate reservoir pressure of 3,900 psi. The recovered oil is a light/medium
crude having a density of 35 deg. API and viscosity of 2 cp. There was also a report of carbon
dioxide measured at a noticeable level while oil was circulated out.
Recovered fluid properties
Type Oil and water
Oil Density 35 deg. API
Oil Viscosity 2 cp
Pour point 15 deg. C
BS&W 30 %
Hydrogen sulfide None
Carbon dioxide Measurable

It is estimated that the PECU-1 is at the crest of an anticline structure covered an approximate
area of 2.5 square kilometers. However, oil recovered from the DST operation in PECU-1 is totally
different from that produced in the Timber Field. The oil from Timber Field has 20 deg. API with
30 cp viscosity and quite low solution gas. PECU company geologist strongly believed that
hydrocarbon found in semi-consolidated sandstone of well PECU-1 must be similar to the
hydrocarbon produced from Timber Field as there is evidence of pressure communication.

1.3. Appendix 3
Drill Stem Test (DST) report of oil zones from the exploration well in the Timber Field
The well was flowed for 30 minutes then the test was aborted and the down hole shut off valve
was later closed. Mud filtrate and oil were recovered in the test string. Oil sample has a density of
20 deg. API and viscosity of 30 cp. A reservoir engineer estimated production rate of 100 bpd with
400 psi flowing bottom hole pressure from the test. She also reported a positive skin factor of +8
from the drill stem test. Approximately one pound of sand found in the DST string above down
hole shut off valve. Sieve analysis of this sand samples was found that the formation sand has
normal grain size distribution with the average grain of 0.007 inch and standard deviation of
0.002 inch. The exploration well was later secured with 9.5 ppg mud before abandoned.
Type Mud filtrate (75%) & Oil (25%)
Oil Density 20 deg. API
Oil Viscosity 30 cp
Pour point 25 deg. C

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2. INTRODUCTION
To prepare a production plan for the PECU-1 well:
- Understand the reservoir properties: Review the lithology and petrophysical property
summary in Appendix 1 to gain an understanding of the reservoir properties, including
porosity, permeability, and fluid saturation. This information will help you determine the
optimal completion design and production strategy for the well.
- Determine completion design: Based on the reservoir properties, select an appropriate
completion design that will maximize well productivity while minimizing formation
damage. For the limestone reservoir, a completion with a tubing string and packer should
be considered, along with appropriate perforating intervals.
- Select completion fluid: Choose a completion fluid that is compatible with the reservoir
properties and will minimize formation damage. A brine solution with additives such as
corrosion inhibitors and scale inhibitors could be used.
- Design surface production facilities: Select surface production facilities, including a
separator, storage tanks, pumps, and pipelines. Prepare a process flow diagram to show
the flow of fluids from the wellhead to the storage tanks. Consider appropriate measures
to minimize the risk of spills or leaks.
- Install well monitoring systems: Install well monitoring systems to provide real-time data
on the reservoir performance, including a wellhead pressure gauge and a downhole
pressure and temperature monitoring system.
- Consider additional operation programs: If required, consider additional operation
programs such as hydraulic fracturing or acidizing to improve well productivity.
- Ensure environmental compliance: Ensure all operational practices are environmentally
conscious, considering the proximity of the national park and the conservative and
environmental activist community nearby. All necessary permits and regulatory
requirements must be obtained.
- Prepare a production plan report: Summarize the completion design, completion fluid,
surface production facilities, well monitoring systems, and additional operation programs
in a production plan report. Provide a rationale for each design and operational practice,
and ensure all assumptions are supported by valid reasons.
By following these steps, you can prepare a production plan for the PECU-1 well that maximizes
well productivity while ensuring environmental compliance.

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3. ENVIROMENT AND LITHOLOGY


In this first section, we will focus on evaluating both the environment of the well's surface and
the characteristics of the subsurface.

3.1. Environmental considerations


Given the proximity of the well to the national park and the small town, it's important to consider
the potential environmental impact of the production plan and completion design, although some
of them have already been taken by the company (the company has prepared themselves to pay
a fine and compensation).
We can propose some recommendations that can be taken in order to reduce the impact of the
operation in the environment:

• Minimize surface footprint: To minimize the impact on the environment, it's important to
minimize the surface footprint of the wellsite. This can be achieved by using compact
equipment, minimizing the number of tanks and separators, and using a centralized
gathering system.
• Use environmentally friendly drilling and completion fluids: To prevent any
environmental accidents, it's important to use environmentally friendly drilling and
completion fluids. This can include using water-based or synthetic-based muds instead of
oil-based muds.
• Implement an effective waste management plan: It's important to have a comprehensive
waste management plan in place to prevent any spills or contamination of nearby water
sources. This can include having proper storage tanks, liners, and spill containment
measures.
• Monitor for potential spills or leaks: Regular monitoring of the wellsite and surrounding
area can help prevent potential spills or leaks from going unnoticed. Implementing
automatic shut-off valves and sensors can also help detect any spills or leaks in real-time.
• Engage with the local community: It's important to engage with the local community and
address any concerns they may have. This can include providing regular updates on the
well's operations and addressing any questions or concerns they may have about the
potential impact on the environment.

3.2. Lithology structure


Lithology structure
Now we will proceed to evaluate the lithological structure that we find in the subsurface. The
layers of different rock formations are listed in Appendix A of the statement.
5,800 – 6,500 Brown Shale
6,500 – 6,800 Semi-consolidated Sandstone interbedded with Shale. (20 feet net oil sands)
Reservoir pressure in the oil bearing formation is around 1,800 psi.
6,800 – 7,200 Reddish Brown Shale
7,200 – 7,500 Dark Grey Shale
7,500 – 7,800 Limestone with 15% average porosity, water saturation increases linearly
from 15% at the top of formation to 95% at 7,750 ft
7,800 – 7,850 Basement rock

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It is also mentioned that the well has already been drilled, so there will be no need to make
references to the type of drilling to be carried out. In the following diagram, we will represent the
lithology structure.

Figure 1. Lithology structure

In the appendix it is indicated that we have two reserves, one on the semi-consolidated sandstone
between 6500 and 6800 ft and the other in the limestone zone between 7500 and 7800 ft.
Table 1. Two zones data

Property Shallow reservoir (5,800 – 6,500 ft) Deep reservoir (7,800 – 7,850 ft)
Reservoir fluid Oil & water Mud filtrate (75%),Oil(25%)
Reservoir Pressure 400 3,900
Oil density (API) 20 35
Oil viscosity 2 30
Pour point 15 Degree C
BS&W 30 %
H2S None
CO2 Measurable
Type of reservoir Brown Shale Basement rock

As we don't have information of the rock formation from ground level to 5800 ft, we supposed it
will also be brown shale.
Table 2. Well status

Bit size 8.75”


Total depth 7850 ft
Drilling mud KCl + Polymer
Last casing 9.625”
Casing shoe 6,000 ft
Top of cement 3,000 ft

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Figure 2. Initial status of the well

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4. COMPLETION
Now we will proceed with the completion phase, in which we will prepare the well for commercial
oil production. In this phase, we will choose the type of well completion, select the type of drilling,
and indicate the necessary equipment and materials for the hydrocarbons to flow efficiently and
safely through the well. Finally, we will present a well completion diagram.

4.1. Completion type


There are several methods of completing the well at the producing zones in order to admit
reservoir fluids into the borehole at the depth of the reservoir. We could choose, for example,
between openhole, uncemented liner or cased and cemented completions.
All of this bottomhole completion techniques have their advantages and disadvantages that will
guide us into electing the correct one. For example, an open hole completion has advantages like
being less expensive as it does not need perforating, production casing or cementing. However, it
is impossible to select between production and may be liable to sand out.
In the case of the slotted liner, it also does not need perforating or cementing expense for the
production casing, however, it assists in preventing sand production. Although, it also do not have
the ability to select between production or stimulation.
Lastly, the cased and cemented completion introduces flexibility, allowing isolation of zones and
selection of zones for production. In contrast, as it need more equipment (a critical log
interpretation to specify actual perforation zone), the cost will increase considerably.
From these completion methods, the one we think is the more adequate would be the cased and
cemented one because, although is more expensive, it can select between several production
zones. Apart from that, it will have less problems related with sand.
Resuming, the completion plan will be the following: The production process will involve the use
of cased-hole completion, which will be divided into two separate zones utilizing a single string
and two packers. This method has been chosen due to the presence of two potential reservoirs
that can be produced through a single well, and because the semi-consolidated sand from the
deeper reservoir can be eliminated through effective sand control measures. This approach will
enable the efficient and effective extraction of oil and gas from the two distinct reservoirs, while
also minimizing the risks associated with sand production. From those reasons (2 reservoirs in
one well and sand control), the cased hole completion is assigned for this project rather than open
hole completion.

4.2. Sand control


Because of the semi-consolidate reservoir type, the sand control will be assigned at the deeper
reservoir. The selected sand control technique for this well is gravel pack completion. To require
sand control for the shallower reservoir which is semi-consolidated Sandstone interbedded with
Shale. (20 feet net oil sands).
Gravel packing is a sand-control method used to prevent the production of formation sand. The
main goal of gravel packing is to stabilize the formation and maintain well productivity. During
this operation, a steel screen is placed in the well – the well is then packed with gravel of a specific
size to prevent the passage of formation sand. The operation requires slurry of properly sized
gravel, water, and various chemicals, to be pumped between a slotted liner of the casing and the
wellbore. The wire liner and gravel work together to prevent sand from entering the well stream.

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This shallow reservoir would be expected to be a large reservoir due to its connected to the
Timber field, so it might be economic for using gravel packing for this shallow reservoir. Since the
geologist strongly believe that hydrocarbon found in semi-consolidated sandstone of well TKO-1
must be similar to the hydrocarbon produced from Timber field, the sand formation grain and
size in the Timber field would be assumed to well TKO-1.
The gravel size of this shallow reservoir is 5 time greater than the sand size of the formation.
(0.035”)

Average grain size 0.007” (+/- 0.002”)


Gravel size 0.035” (+/- 0.01”)
Mesh size 18

Figure 3. Table 5.1

4.3. Completion string


A completion string with a 7” casing will be used for this well section due to open hole is 8.5” and
9.625” previous casing. This lead us to use a 3.5” production tubing.

4.4. Perforation
Perforation is an important part of the completion that needs to fit the characteristic of the
formation in order to realize optimum production. Perforation also must provide a clean flow
channel for the hydrocarbures.
To achieve that, some of the geometrical factors we have to select are:

• Perforation length
• Shot density
• Angular phasing
• Perforation diameter

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Wi will select a casing gun as the perforating element. In the following table, we will show the
most relevant factors geometrical of every production zone:
Table 3. Perforating factors

Reservoir Upper (Sandstone) Lower (Limestone)

Perforation Diameter (“) 4 4

Shot Density (shots/ft) 6 6

Angular phasing (°) 60 60

Depth [from-to] (ft) 6500-6800 7500-7550

Casing gun will be set to perforation with overbalance condition because the gun can be able to
run with wireline to get an accurate depth due to the short of interval zone. The 4 inch casing gun
with 6 shots per foot, 60 degree phasing, deep penetrating charge will be used for both reservoir.
The perforating location of shallow reservoir will be set at 6500–6600 ft and for the deeper
reservoir will be set at 7500–7550 ft.
The density of KCL for completion fluid is 9.5 ppg.
Table 4. Reservoir pressures

Reservoir Shallow reservoir Deeper reservoir


Reservoir Pressure (Psi) 1,800 3,900
Wellbore pressure (Psi) 0.052*9.5*6550 = 3,236 0.052*9.5*7525 = 3,717

Pump will be assigned to use for shallow reservoir due to reservoir pressure less than well bore
pressure and also from Timber field, they used sucker rod pump so that means, not enough
pressure for natural drive. Progressing Cavity Pump (PCP) is planned to use for this well.

4.5. Casing material


The concentration of CO2 has been measured only for the shallow zone, and there is no available
information regarding the deeper zone. However, it is important to note that the mixing of CO2
with water can cause corrosion within the tubing. As a result, the material of the casing used must
be taken into consideration.
To mitigate the risk of corrosion, corrosion-resistant casing materials such as L-80, C-90, T-95,
and C-110 grades will be utilized. These materials are specifically designed to resist corrosion
caused by CO2 and other harsh substances present in the well. This approach will help ensure the
longevity and integrity of the casing and tubing, minimizing the risk of leaks and other issues that
could potentially impact the safety and productivity of the well.

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4.6. Operation
The procedure for well completion will be the following:
1. Run 7” casing with shoe at 7830 ft.
2. Displace inside 7” casing with completion fluid (KCL mud with MW = 9 ppg) to get
overbalance.
3. Run GR/CCL for perforation correlation.
4. Run 4” casing gun 6 shots per foot, 60 degree phasing, deep penetration charge and
perforate at 6550 feet (Shallow reservoir) and at 7525 ft (Deep reservoir)
5. Pull perforation gun out of the well.
6. Run and set permanent packer at 7300 ft and retrievable packer at 6400 ft.
7. Run and set completion string in permanent packer and gravel pack.
8. Install X-mas tree at surface
9. Set plug @ landing nipple and open SSD
10. Close SSD and pull plug
11. Open well for production
12. Start pump.

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5. SURFACE FACILIES
A surface production facility is an oil and gas processing plant that is located at the surface of an
oil or gas field. The purpose of this facility is to receive, process, and store the crude oil and natural
gas that are produced from the wells located at the site.

Figure 4. Surface facilities

In the process you described, the crude oil is pumped from the wellhead platform and sent to a
heater. The heater increases the temperature of the crude oil to reduce its viscosity, making it
easier to handle and transport. The heated crude oil is then sent to a 3-phase separator.
The 3-phase separator separates the crude oil, gas, and water. The separated gas is used for fuel
for the heater, flare, and electricity at the site. The separated crude oil and water are then sent to
another 3-phase separator for re-separation.
The re-separation process further separates the gas, crude oil, and water. The separated water is
stored in a water tank and sent to a water treatment unit before it is disposed of. The separated
crude oil is stored in a crude oil tank and sold as a product.
Overall, the surface production facility plays an important role in processing and storing crude
oil and natural gas, while also ensuring that any waste products are treated and disposed of in an
environmentally responsible manner.

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6. STEAM SIMULATION
Steam stimulation, also known as steam flooding, is a type of enhanced oil recovery (EOR) method
used to extract heavy crude oil and bitumen from reservoirs. This process involves injecting
steam into an oil reservoir to heat the oil, which reduces its viscosity and allows it to flow more
easily.
The steam stimulation process begins with the drilling of wells into the oil reservoir. These wells
are typically horizontal or highly deviated, which means they are drilled at an angle to the vertical
to maximize the contact area between the steam and the oil. Once the wells are drilled, steam is
injected into the reservoir through injection wells.
As the steam is injected, it heats the oil in the reservoir, which causes it to expand and flow more
easily. The steam also reduces the viscosity of the oil, making it easier to extract. The heated oil is
then pumped to the surface through production wells.
Steam stimulation is most commonly used in heavy oil reservoirs and oil sands, where the oil is
too thick to flow naturally. It can also be used to extract oil from reservoirs that have already been
partially depleted by conventional production methods. The success of steam stimulation
depends on a variety of factors, including the quality of the reservoir, the characteristics of the
oil, and the efficiency of the steam injection process.

MASTER DEGREE IN GEORESOURCES AND PETROLEUM ENGINEERING 12

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