Classification: Internal Status: Draft. Peon discovery. Unlocking unconventional resources in the North Sea

Transcription

1 Classification: Internal Status: Draft Peon discovery Unlocking unconventional resources in the North Sea

2 2 Agenda Introduction to Peon Geology Peon reservoir properties Drainage strategy Technical challenges Project plan Summary

3 3 The Peon discovery Large shallow gas deposit approximately 100 km west of Florø Discovered with exploration well 35/2-1 in 2005 Top reservoir is at 574 m MSL and the water depth is 384 m Approximately 35 GSm³ gas in place The project is in the concept selection phase. Production start planned in 2014 Owners: StatoilHydro 72.4% Petoro 13.8% Idemitsu 18.8%

4 4 Overview of Peon: Horizontal Profile East West seismic profile showing Peon Origion of the Peon sand: Formed as subaquatic, ice-contact glaciomarine fan Fed by a single (?) subglacial channel recharged by basal and possibly supraglacial melt water Overridden by subsequent ice advance, partly deformed and streamlined Saved from further erosion by pressurized water layer at the ice/bed interface Sealed by subsequent till accretion

5 Geology Peon depositional model 5 ICE STREAM ICE STREAM ICE STREAM ICE STREAM Drumlins Glacial outwash deposit with marine influence very homogeneous Deposited in Pleistocene ( Mill years ago) Gas source unclear

6 6 Peon reservoir properties Covers a large area: 250 km 2 Unconsolidated, homogenous sandstone in the reservoir, N/G > 0.99 Unconsolidated and young formations in overburden Gas: % methane Reservoir temperature: 13 C Reservoir pressure: 59,7 bar Permeability: ~ 4 Darcy Gas column thickness: 0 25 m

7 7 Production and drainage strategy Subsea development with 3 to 5 wells Tieback to existing infrastructure A number of tie in candidates is being evaluated Low pressure compared to other subsea developments Long pipeline and uphill transportation Production with pressure depletion Well rates at 3 Mill Sm³/d, 8 Mill Sm³/d field plateau rate Own compressor at host Low pressure production or pressure maintenance considered as IGR measures The Gullfaks C tieback : Export flowline 106 km long: Alternative 1: 24" x 0,75", x 65, with buckle arrestors: Internal epoxy coated, 6 mm asfalt coating and 65 mm concrete 2 - inline Tee s have 2 x 8" ROV operated ball valves, and are made overtrawlable. Subsea Pig Launcher to PLEM. 6 pipeline/cable crossings. Connected to a new riser at Gullfaks. Infield flexible jumpers 8" (ID): Wells connected to 2 in-line Tee s and one PLEM with Pig launcher. 3 x 50 m jumpers. Umbilical to Gullfaks 106 km. 6 pipeline/cable crossings. 3 Subsea distribution units at GP x 50 m umbilical jumpers to Gp Total Graveldump volume: m 3 SSIV Gullfaks Bather y li mit Gullfaks Are a Peon GFB / C 106 k m Snorre Fibercable 24" EXPORT FLOWLINE Telecom Cantat 3 Peon StatoilHydro Pipelines, Risers and Umbilicals UMBILICAL GP3 GP2 PLEM Coordinates (TBC): N E GP GP GP Gullfaks A Schematic Sketch - Peon Field Layout Tieback to Gullfaks C SIZE Date Pr epar ed by REV A Per Harald Hansen 0 SCALE NTS SHEET 1 OF 1 GP1 Temporarly Pig launcher

8 8 Technical challenges Drilling and completion Well placement Cementing and barrier issues Relief well design Gravel packing Rock mechanics Well integrity Subsidence Reservoir seal leakage Flow assurance Reservoir performance Hydrates in well and pipe line Pipe line performance (slugging, start stop issues etc) Water production Sta toilhydro

9

10 10 Project plan Installation and drilling -> Production start January Manufacturing 2010 Submit PDO 2009 Concept selection Data acquisition Geotechnical wells Appraisal well with production test P-wave seismic data acquisition

11 11 Summary The Peon case shows how a gas accumulation previously considered a problem will be turned into a viable resource The Peon discovery represent a commercialization of a new source of hydrocarbons in the North Sea Shallow gas deposit like the Peon discovery has never been commercially developed before. However deposits like this exist in the North Sea and other offshore hydrocarbon provinces The shallow reservoir with unconsolidated overburden represent a number of new technical challenges Innovative solutions to have been developed overcome the challenges Many of the solutions will be tested and verified in the appraisal well that will be drilled in 2009

12 Questions? 12