Combining Offshore EOR and CCS in Denmarkiea-eor.ptrc.ca/2010/assets/F11_Slides.pdf · •Some 700...

19 October 2010CEP#1

Combining Offshore EOR and CCS in Denmark

IEA Offshore EOR Symposium

20th October 2010

Nigel Jenvey, Director, EOR Project Manager

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Slide no. 2 19 October 2010

Maersk is a global conglomerate that has existed for more than a hundred years

…with more than 117,000 employees worldwide

Maersk is an international company recognised for its activities

within shipping, energy, offshore, retail and industry

19 October 2010#3

The Importance of EOR to Maersk Oil

• Significant incremental production potential in Denmark

• Breaking new ground in our pursuit for reserves

• Pivotal role in supporting late life assets to increase

commercial recovery

• Technical and commercial challenges to overcome

There are many technically applicable EOR

technologies, but very few are

commercially applied…

19 October 2010#4

Maersk Oil EOR Related Experience – DUC Gas Injection

• Tyra gas injection (since 1987)

• Gorm crestal gas injection into the gas cap (1982-1994)

• Tyra gas injection into the oil rim (1999)

Gas Breakthrough in Two Months

( Injector to Producer 1000 feet )

Tyra Gas Injection Test

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60

Jan-99 Jan-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00

Gas R

ate

mm

scfd

twc-21a-gas production

twc-10 gas injection

19 October 2010#5

Maersk Oil EOR Related Experience – Qatar WAG Pilot

Source: IPTC-13327

Well 6

Well 5

• 6 month lean gas injection test (2008)

• Evaluate gas breakthrough and post-injection

water injectivity

19 October 2010#6

Maersk Oil EOR Related Experience – Algeria WAG Pilot

• October 2003-December 2006

• WAG injection well, with dedicated

updip monitor well 160m away

• Immiscible and miscible gas injection

cycles

• Evaluate target oil and injectivity

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Slide no. 7 19 October 2010

The Time for EOR is Now for Denmark

Source: DEA

19 October 2010#8

DUC Infrastructure

• 50 platforms

• 1 subsea completion

• 65 pipelines – approx. 800km

• 182 oil production wells

• 68 gas production wells

• 17 gas injection wells

• 94 water injection wells

• Some 700 onshore employees

• Some 500 offshore employees and 1000 contractors

19 October 2010#9

Remaining, 71%

DUC Field Recovery

• Residual oil• Thin oil columns• Bypassed oil• etc

Potential IOR and EOR, ?%

Scope Production, 4%

Produced, 19%

Remaining Production, 6%

Remaining, ?%

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Slide no. 10 19 October 2010

Dan Field Location

19 October 2010#11

Dan Field Production

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

55.000

60.000

65.000

70.000

75.000

80.000

85.000

90.000

95.000

100.000

105.000

110.000

115.000

120.000

125.000

130.000

135.000

140.000

Jan-7

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Jan-7

3

Jan-7

6

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9

Jan-8

2

Jan-8

5

Jan-8

8

Jan-9

1

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4

Jan-9

7

Jan-0

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Jan-0

3

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6

Jan-0

9

Jan-1

2

Jan-1

5

Date

Prod

ucti

on

, B

OP

D

Depletion Waterflood

Actual Forecast

19 October 2010#12

Dan Field Development

2 KM

19 October 2010#13

2 KM

Halfdan

Seismic data indicates good areal sweep

19 October 2010#14

CO2 Sourcing Options

• Natural

• Industrial Processes (CO2 Capture)

• Gas Processing

• Refineries

• Manufacturing (cement, steel, fertilisers)

• Power

• Carbon Capture and Storage requires other funding mechanisms for implementation

$10/tonne

$30/tonne

$60/tonne

$90/tonne

19 October 2010#15

CCS Economics

Source: McKinsey

19 October 2010#16

Projected Growth of the new CCS industry

Source: IEA CCS Roadmap

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Slide no. 17 19 October 2010

• More than 750 million tonnes of CO2 are emitted annually from large

stationary sources relatively close to the North Sea

• Much of the North Sea geology is potentially suitable for CO2 storage, but

saline aquifers need exploration, appraisal and development

• Certain UK, Norwegian and Danish oil/gas fields are suitable for storage and

enhanced recovery techniques

Source: GESTCO

CO2 Storage Capacity

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Slide no. 18 19 October 2010

Not many sizeable CCS projects exist without EOR

Source: IPCC Special Report on CCS

How much CO2 storage capacity is

required for CCS when it is a „transitional‟

technology?

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Slide no. 19 19 October 2010

Worldwide EOR and CCS Potential

Source: Advanced Resources International

19 October 2010#20

CO2 Transport

• Today no ships transport industrial CO2 emissions

• CO2 Shipping can be cost competitive and is more flexible than

pipelines

• Maersk Tankers has designed a semi-pressurised/semi-fridgerated

20,000 m3 ship

• Interface with offshore discharge requirements key

Source: Yara

CO2 CAPTURE

CO2CO2

CO2 TRANSPORT

POWER

PLANT

CO2 OIL

CO2 INJECTION FOR STORAGE / EOR

19 October 2010#21

CO2 Transport

Semi-pressurized/

semi-refrigerated:

-55 degC and 6.5 bar

Underground Storage

100 - 300 bar

Fully-pressurized:

20 degC and 70-80 bar

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Slide no. 22 19 October 2010

Maersk Tankers’ 20,000 CBM CO2 Carrier

Source: HHI

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Slide no. 23 19 October 201023

1. Submerged Turret Off-Loading (STL) system

• Offloading under the ship

• Least exposure to weather/swell

• High installation costs*

Offshore CO2 Off-loading

• Offloading over the bow

• Highest exposure to weather/swell

• Lower installation costs*

2. Single Anchor Off-Loading (SAL) System

* The subsea system at the offshore field needs to be taken into consideration

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Slide no. 24 19 October 2010

A combination of an FSIU and CO2 carriers can be developed in the same way Maersk has developed its Floating Production Storage and Offloading (FPSO) logistics

• The ships are connected via a bow loading system and a stern discharge system

19 October 2010#25

Combining CCS and CO2 EOR

1. How to achieve a constant CO2 import rate?

• In-field phased development (aka “roll-the-flood” or “pattern-

by-pattern”)

• Alternative EOR/Storage field development

2. How to deal with different source timing/volumes?

• Phased development (aka “partial field expansion”)

• Pre-investment for full-field application

• Alternative EOR/Storage field development

• 2 key field development questions:

19 October 2010#26

Full-field CO2 EOR – an illustration

0%

10%

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100%

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Waterflood CO2 Import (Falling)

Non-economic WF CO2 EOR

CO

2 Im

po

rt R

ate

, %

Oil P

rod

ucti

on

Rate

, %

Years

19 October 2010#27

0%

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100%

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rt R

ate

, %

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ucti

on

Rate

, %

Phased CO2 EOR – an illustration

Years

Waterflood CO2 Import (Phsd/Cons)

Non-economic WF CO2 EOR Phasing

28

• Given miscibility, CO2 EOR recovery can vary due to 3 main reasons:

1. Conformance2. Target Oil3. Injectivity

• These can vary over any single field due to natural or man-made variations

• Reducing the uncertainty and calibrating forecasts is key to improve the quality of decision making, via:

– Field waterflood performance– Analogue field performance– Laboratory tests– Field tests

CO2 EOR – Recovery Uncertainty

0,0E+00

1,0E-07

2,0E-07

3,0E-07

4,0E-07

5,0E-07

6,0E-07

7,0E-07

0 2 4 6 8 10 12 14Time after injection in FA-11 (d)

Co

ncen

trati

on

(g

/l)

FA-11 2-FBA

FF-07 4-FBA

FA-01B 3,4-DFBA

FB-23 2,6-DFBA

FE-07 2,4,5-TFBA

Source: DUC

29

Opportunity exists for new CO2 EOR

projects to be more efficient with recovery

given availability of lower cost CO2

CO2 EOR – Development Opportunities

30

Topsides33%

Brownfield29%

Wells38%

– Manifolds (production, test, injection, gas lift, original)

– Utilities (water injection, seawater lift, cooling/heating,

diesel, potable water, emergency power)

– Workovers (tubing change out, tie-back

casing, sidetracks)

– Gas lift modifications (CO2 contamination)

– Separation (2 stage production, test)

– Metering (oil, water, HC gas, CO2 import, CO2

injected, CO2 flared/vented, power)

– Gas processing(compression, pumping,

dehydration, vent, flare)

– Utilities (fuel gas, cooling/heating,

instrument air, N2, chemicals, hydraulics, drains, fire detection and supression)

– Pipelines

CO2 EOR – Implementation Costs

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Slide no. 31 19 October 2010

Dan Facilities

FF

FG

FC

FD

FB

FA

FE

To Tyra EastTo Gorm

To/From Halfdan HDA

From Halfdan HBB

From Kraka

E

C

B

AD

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Slide no. 32 19 October 2010

CO2 Development on Dan

FF

FG

FC

FD

FB

FA

FE

To Tyra EastTo Gorm

To/From Halfdan HDA

From Halfdan HBB

From Kraka

E

C

B

AD

Scope on FE:• CO2 Injection Manifold• CO2 Production Manifold• CO2 Test Manifold

Scope on FA:• CO2 Injection Manifold• CO2 Production Manifold• CO2 Test Manifold

Utilities from F Complex:• Water Injection• Produced Water• Seawater lift• Cooling medium• Diesel• Potable Water• Main Power• Emergency Power

Scope on FB:• CO2 Injection Manifold• CO2 Production Manifold• CO2 Test Manifold

Scope on FF:• CO2 Injection Manifold• CO2 Production Manifold• CO2 Test Manifold

Scope on A & D:• CO2 Injection Manifold• CO2 Production Manifold• CO2 Test Manifold

Scope on New Deck:• 2 stage separation• Test separator• Crude metering, export• LP compression• Injection compression• Import CO2 pumping• TEG Dehydration• Fuel gas• Seawater lift

• Cooling medium• Instrument Air• Nitrogen• Chemical injection• HPU skid• HP, LP, Atmos vent• Closed/HO/NHO drains• Firewater

33

CO2 EOR – CCS Verification

2. Monitoring – of the injection facilities, the storage complex, and where appropriate the surrounding environment

• Potential requirements for projects under the EU CCS Directive:

Source: IPCC

Source: Environmental Geology, Springer

1. Site Characterisation – to ensure no significant risk of leakage, environmental damage or health impact

3. Abandonment – to allow the transfer of responsibility

34

EOR is an enabling commercial step towards constructing an infrastructure that can handle CO2 emissions from Northern Europe

CENS was the 1st industry project in 2001Original concept proposed a main CO2 pipeline

infrastructure in the North Sea capable of transporting more than 30mtCO2/yr

Adapted to be a phased development

Courtesy: CO2 Global

CO2 EOR – North Sea Network

35

What are we doing about it?

• Assessing the potential commercial application of CO2 EOR linked with CCS

– EU co-funded (NER300) CCS project timeline

Now 2011 2012 2013 2014 2015

Expre

ssio

n o

f in

volv

em

ent

EU

Fundin

g

application

EU

Fundin

g

announcem

ent

CO

2In

jection

FEED Construction

Possib

le I

nj

Test

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• CO2 EOR may become a viable technique to increase recovery and extend the field life of certain DUC fields.

• To enable this, given the current risks/costs of implementation, EOR in combination with CO2 Storage is being persued to mature a commercial opportunity

• This will require phasing of the EOR flood:

– To maintain a constant CO2 import rate, given CO2 recycling

– Due to the available CO2 volumes initially from CCS demo projects

• Subject to initial successful standalone CO2 EOR/Storage field implementation, further implementation may be possible in other DUC fields and thereby mitigate the impacts of continued oil production decline

Summary

Thank you