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Gazpromneft-Yamal: Completes Russia’s First Quadruple Multilateral Well

Gazprom Neft subsidiary Gazpromneft-Yamal has completed construction of Russia’s first ever multilateral well with four horizontal cased-hole side tracks, at its Novoportovskoye field. A total 6,756 metres was drilled, including 4,411 metres drilled in the target strata. The well was constructed in 39 days at a rate of 5.78 days per 1,000 metres.

Drilling horizontally branched wells facilitates a manifold increase in production from disjointed low-permeability strata, significantly increasing the oil recovery factor at productive strata and bringing marginal reserves into development without the need to drill additional wells. Russian-produced equipment was used in well construction, retooled in line with the specific geological conditions of the Novoportovskoye field.

Rosneft: Delivers First Commercial Crude from the Erginsky Cluster

Rosneft started delivery of the first commercial crude oil from new Erginsky cluster to Transneft pipeline system. The Erginsky startup complex commissioning ceremony was attended by the the Prime Minister of the Russian Government Dmitry Medvedev and Rosneft Chief Executive Officer Igor Sechin.

Erginsky cluster comprises Erginskoe, Zapadno Erginskoe, Kondinskoe, Chaprovskoe and Novo—Endyrskoe fields located in Khanty-Mansi Autonomous District-Yugra. Their total reserves (AВС1+С2) amount to 259 mmt of oil. This is light, low sulfur oil conforming to Siberian Light export blend.

The cluster is created based on the integration of the infrastructure of Erginsky License Area with 103 mln t purchased at the auction in July 2017 and Kondinskoe group of fields. The total area of the licenses is over 5,000 sq. km. Exploration is continued in all license areas for development of the resource base.

Advanced methods of hard-to-recover reserves extraction will be applied for development of Erginsky project including real-time controlled horizontal drilling, multistage fracturing with ultrastrong polymer proppant, “smart waterflooding” and other enhanced oil recovery technologies. Hard-to-recover reserves production technologies which are already used by Rosneft at Priobskoe field will maximize the efficiency of development of the fields of Erginsky cluster.

The first startup complex comprises the main oil and gas production and oil transport facilities. Central processing facility (CPF) with the annual capacity of 2.3 mmt of oil and over 120 mmcm of gas at the first stage, 27 pads, 42 MW gas turbine power plant and HV power lines, camp and 68 km pipeline for delivery of oil to the Transneft oil pipeline system. All field equipment is made in Russia. 133 wells with total length of up to 4,500 meters have been already commissioned.

2,420 production wells will be drilled with 93% of horizontal production wells (23 drilling rigs will be used to drill them), over 100 pads will be built with required support infrastructure. The maximum annual production of Erginsky cluster will amount to 8.8 mmt. Around 5,000 new jobs will be created.

Erginsky cluster will be developed taking into account modern environmental requirements: by 2020 the efficient utilization of the associated oil gas will no less than 95%.
The startup of Erginsky cluster will maximize the efficiency of development of the resources of the main oil and gas production region of Rosneft presence with a developed infrastructure. The integral approach to development of Erginsky area purchased by the Company at the auction and Kondinskoe group of fields with integration of transport, power supply, and reservoir management systems will generate high synergy accelerating the development of the resource potential of the cluster. Well developed infrastructures of the Company’s largest production asset RN-Yuganskneftegaz will be also used for development of greenfields in Khanty-Mansi Autonomous District.

Khanty-Mansi Autonomous District -Yugra is a key region for Rosneft where the following major assets of the Company are located: RN-Yuganskneftegaz, Samotlorneftegaz, Varyoganneftegaz, Nyaganneftegaz. The annual hydrocarbon production in the region totals to 137 mmt. Creation of a new oil and gas production hub in Western Siberia is one of top priority projects for Rosneft.

Gazprom Group’s Comprehensive Target Program for Integrated Information Environment approved
The Gazprom Management Committee approved the 2018–2022 Comprehensive Target Program for the Development of the Integrated Information Environment of the Gazprom Group. The Company’s relevant subdivisions are tasked with implementing the Program.

 The Integrated Information Environment (IIE) was established and is successfully maintained as part of Gazprom’s Informatization Strategy. Specifically, 35 information management systems were introduced at Gazprom and a number of its subsidiaries, helping automate the most important business processes. In addition, a Corporate Data Bank was created on the basis of key performance indicators to support the adoption of managerial decisions by the Company’s top executives. A high-performance Data Processing Center was built in compliance with the stringent requirements for information security.

The key development goals of the Gazprom Group with regard to information technologies (IT) are to introduce automated solutions at every level of corporate governance across the Group and to bring the IIE to the next level in line with the digital economy-oriented trends.

 The approved Program is underpinned by three basic principles: integration, innovativeness, and import substitution. It employs cutting-edge IT solutions to maximize connectivity among information management systems and to synergize Gazprom’s businesses. Preference is given to domestic solutions that have the required functional capabilities.

The Program contains a list of top-priority measures aimed at, among other things, improving the efficiency of operations, investments, marketing, and financial management processes.

 Emphasis is placed on IT support for business management purposes. The Company intends to provide for the integrated automation of operational accounting and planning, as well as to create a single virtual data storage for real-time data from facilities. The automated process management systems that are currently in operation at the subsidiaries will also be integrated into the Gazprom Group’s IIE along with the tools for monitoring, modeling and forecasting the technical condition of operational assets.

 There is also significant potential in developing the production complex through the use of an advanced business management model (Industry 4.0 concept). It is planned, inter alia, to apply the abundant computational capacities and the big data processing platform to generate digital models of operating facilities (“digital twins”). This method will result in a more integrated approach toward assessing the potential of such facilities, finding new opportunities to achieve greater efficiency, and optimizing capital and operating expenses. All this will make it possible to advance business management techniques to a fundamentally new level.

The implementation of the Program will improve controls over the Gazprom Group’s business process architecture and ensure continuous performance oversight for the Group in general and individual organizational units in particular.
Rosneft: Managed Pressure Drilling in Low Pressure Formations
The main objectives and results of the first MPD trial job in the Yurubcheno-Tokhomskoye field are presented in this article. Based on the result of this job the conclusion for this technologies utilization in highly fractured carbonate formation can be assessed. The utilization of this technology is focused on increasing drilling efficiency, as well as the efficiency of exploration and production.
The Yurubcheno-Tokhomskoye field is one of the biggest fields in Eastern Siberia. It is located in Evenkiysky district of the Krasnoyarsk Territory (see Figure 1).
The main exploration object in the Yurubcheno-Tokhomskoye field is the Yurubchenskaya deposit [1].
The deposit represents a highly fractured carbonate formation and is characterized by the presence of a gas cap (80% of the area) and separate near-vertical macro-fissures providing main oil inflow [2]. For the purposes of penetration into most of these fissures, the deposit has been directionally drilled providing wells with a horizontal section. The design HW length is 1000m.
Abnormally low formation pressure (ALFP) and highly fractured areas present in the formation do not allow for overbalanced HW drilling without circulating fluid (CF) loss.
According to calculations made using a specialized software, due to the mud rheology and specific well design (small diameter of the annular space between casing of 178 mm and drilling tool of 102 mm) the ECD varies in the range of 1.03 – 1.12 g/cm3, while the equivalent pressure of the productive formation does not exceed 0.94. As such, the required back-pressure is applied to the formation during circulation. However, the formation pressure is not more compensated in such static conditions resulting in an active fluid inflow (gas or oil). At the same time, loss of circulation causes mud level and hydrostatic pressure drop in the well also resulting in an active fluid inflow (kick).
Until now HW were drilled using LCM under the conditions of Oil Based Mud (OBM) loss. This method may worsen the poroperm properties of a productive formation depending on volume of lost mud and LCM. The use of LCM of different fractions and compositions has not allowed recovery of CF circulation for the further deepening the well and achieving the design HW length.
The MPD system trial job was implemented in August – September 2016 in order to solve the problem of creation of the required balance between CF (mud) density and hydrodynamic pressure along the HH length, and to prevent loss of circulation and gas, oil or water inflows.
Description of MPD Technology
Mud density for conventional drilling is chosen so that the static gradient would be higher than the pressure of the penetrated formation. The system is open, and the mud returns to the formation with atmospheric pressure. During circulation, pressure applied to the formation will drop due to frictional loss.
Compared to conventional drilling technologies, which use the mud density for pressure management, MPD technology combines wellhead pressure, friction and mud density in order to balance the pressure of the penetrated formation. In this particular case, the mud density was adjusted by obtaining a multi-phase CF using inert gas (nitrogen). Multi-phase circulating fluid may be used to reach a BHP required to keep a near balance condition, when the hydrostatic pressure of mud drops to the level slightly exceeding the formation pressure.
The key feature of the MPD system [3] is its absolute tightness within Rig pump to Gas separator area. This allows control of all processes in the bottom hole while drilling and mitigation of the risk of gas, oil or water inflow.
Main components of the MPD system and their purpose are shown in Figure 2 and in Table 1 [3].
2. Results of Trial MPD System Implementation
This BHP range [3] was developed considering that the equivalent pore pressure is 0.93 (see Fig. 3). Accordingly, the chosen horsepower of rig pumps was 13-14 hp and the chosen capacity of nitrogen units was up to 30 m3/min, which would allow creating the required formation back pressure and avoiding any problems related to loss of circulation / inflow.
Fig. 4 shows the actual operating pressure range and ECD [1] for the target well bottom of 3786 m. In order to reduce the mud loss intensity, its density was reduced up to 0.86 g/cm3, and the horsepower of rig pumps was limited to 11-12 hp. The formation gas inflow intensity was 10 m3/min.
One of the priority tasks of the MPD system is to reduce the mud (OBM) loss volume while drilling in fractured formations. Fig. 5 compares the specified values of mud loss volumes in the field (average) and in the first MPD well, where significant reduction can be observed.
Conclusions and Recommendations
• Horizontal section [4] of 897 m in length has been successfully drilled in the Riphean productive formation, and the main tasks have been resolved: mitigation of pollution of the productive formation by lost mud and LCM, increase in drilling rate;
• Initially, drilling had to be performed using MPD technology. It was estimated that equivalent pressure in this area is 0.93. Given this, the mud density of 0.93 g/cm3 (OBM) and capacity of nitrogen units of 15-20 m3/min have been chosen, which allow achieving the ECD of 0.94-0.95 g/cm3. However, intensive losses has been obtained under these conditions, whereupon the mud density was reduced up to 0.86 g/cm3, and the further drilling was performed with formation gas inflow of 3 -10 m3/min. This allowed reducing the intensity of losses up to 2-3 m3/hr. These conditions in the well were achieved with ECD within the range of 0.78 – 0.82 g/cm3, and capacities of rig pumps and nitrogen units were 11 hp and 20 m3/min accordingly. Back pressure during circulation was 2 kgf/cm2, and during buildup was 24 kgf/cm2;
• A hydraulic communication channel was used for transmission of SlimPulse telemetry signal [4];
• Gas flow meter played a critical role for determination and adjustment of ECD while drilling. It was used for real-time determination of formation gas inflow, and the obtained data were used for hydrodynamic modeling of well conditions and determination of the required ECD.
• In order to apply the required back pressure during round trips into the well hole, a high viscosity pill (HVP) [3] was used, and the drilling mud was replaced by heavy drilling mud with density of 1.06 g/cm3.
Schlumberger Announces Agreement to Acquire Majority Share in Eurasia Drilling Company

Agreement extends successful long-term relationship in the conventional land drilling market

Schlumberger announced today an agreement to acquire a majority (51%) equity interest in Eurasia Drilling Company Limited.

Closing of the transaction is subject to approval by the Federal Antimonopoly Service of Russia (FAS).

The agreement extends the successful long-term relationship established by the two companies in 2011.

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