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Development Optimization of a Marginal Oil Field in Bohai Bay, China

Integrated Solutions to Overcome Challenges in Offshore Horizontal Well
Construction
Chaomin Nie, Yongsheng Zhao, Lv Tan, Yong Jia, and Gang Zhai, CNOOC Tianjin (CCLT); and Parlindungan
Monris Halomoan, Xu Chong Hui, Wang Yong, Wang Fei, and Dong Jianyi, Schlumberger

Copyright 2013, International Petroleum Technology Conference

This paper was prepared for presentation at the International Petroleum Technology Conference held in Beijing, China, 2628 March 2013.
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Abstract
A total of nine horizontal wells including one injector well were drilled to cover the small, 9 km2, oil-bearing area of a
marginal oil field that is isolated by secondary faults and stratigraphic depositional borders in Bohai Bay, China.
A pilot study showed that the reservoirs are distributary channel sands of a shallow water deltaic depositional system.
Seismic inversion indicated that the sand properties and connectivity vary dramatically across the field. A multiple-aquifer
system was apparent, and the gas/oil contact (GOC) and oil/water contact (OWC) levels were unknown. Furthermore, the only
well control was from three vertical exploration wells and two directional offset wells.
An advance distance-to-boundary well placement technique using azimuthal deep directional electromagnetic loggingwhile-drilling (LWD) technology was applied to overcome these challenges and to enhance reservoir understanding. A
multifunction LWD formation evaluation tool was deployed to evaluate fluid properties where the top gas might occur. In
addition, a rotary steerable drilling system (RSS) was assembled to achieve drilling efficiency and smooth trajectory control.
One injector well and eight producer horizontal wells were precisely placed in optimum position for injection and drainage
with a 100% success rate; one producer horizontal well was retracted while another producer well was added based on finding
definite GOC and OWC levels. Increasing the drilling penetration rate and avoiding adjustments following reservoir exits led
to a 60% improvement in drilling efficiency, which is equivalent to a cost savings of USD 32 million. Production from these
horizontal wells surpasses the set production target by 30%, with extremely low water cut. The integrated LWD, well
placement, and RSS solution optimized the marginal oil field into a much more economic development oil field.

Introduction
The BZ oilfield is located at the southern part of Bohai Bay, approximately 160 km southeast of Tanggu, Tianjin (Fig. 1). It is
a small oil-bearing area9 km2that is isolated by secondary faults and stratigraphic depositional borders. A total of 10
horizontal wells, including one injector well, were planned to develop this marginal oil field.
Two other producing oil fields are located in the northern and western parts of the BZ area. Although the original oil in
place (OOIP) of oil field is estimated at only 1261.89104 m3, this marginal oil field is expected to be economic to develop and
put into production by sharing the facilities of the other two oil fields.

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Fig. 1BZ26-3 oil field is located at the southern part of Bohai Bay, approximately 160 km southeast of Tanggu, Tianjin.

Background
The BZ structure is part of the complex fault system in the northwest side of the Huanghekou depression, at the west side of
the Bonan uplift.
The main reservoir targets are the lower Neogene Minghuazhen formation (referred to as Nm) and the upper Guantao
(referred to as Ng). The lower Nm is divided into seven groups (from top to bottom): Nm0, Nm, Nm, Nm, Nm, Nm
, and Nm. The upper Ng is divided into two groups (from top to bottom): Ng and Ng. These groups were defined
based on high-resolution sequence stratigraphy.
The oil field is isolated not only by primary faults, but also by various secondary faults generated at different geological
periods (Fig. 2). Because of this isolation, a multiple-aquifer system exists, and the oil-bearing area of this trap system is not
more than 9 km2.

Fig. 2Isolation of the reservoir by primary and secondary faults.

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A pilot study based on core and sequence stratigraphy analysis of multiple wells shows that the reservoirs are distributary
channel sands of a shallow lake delta plain. Seismic inversion indicates that the sand properties and connectivity vary
dramatically across the field (Fig. 3).

Fig. 3 Seismic inversion indicates variable sand properties and connectivity across the field.

The channel sands have medium to high porosity and permeability. The seismic data analysis suggests that the properties
may vary laterally.
Meanwhile, uncertainty in the top gas and bottom water levels adds to the complexity of this field. The data from three
vertical wells and two directional wells drilled during the exploration phase indicated that a multiple-aquifer system exists,
while the GOC and OWC levels were unknown prior to this horizontal drilling program (Fig. 4).

Fig. 4Reservoir profile of BZ26-3 oil field where GOC and OWC levels were unknown.

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Horizontal well drilling program

Two platforms were designed to develop this complex oil field (Fig. 5): BZ-A platform to drill 11 wells and BZ-B platform to
drill 5 wells. Among these 16 wells, 10 horizontal wells were designed as producer wells, 5 deviated wells were designed as
injector wells for formation pressure maintenance, and 1 deviated well was designed to supply water for the injector wells.

Fig. 5Platform A and B were designed to developed the BZ26-3 oil field.

The planned cumulative oil production for a 30-year period is 257.3104 m3 (Fig. 6), with an expected recovery factor of
24.3%. The planned cumulative gas production after 20 years is 17.7108 m3, with an expected recovery factor of 60.9%.

Fig. 6The planned cumulative oil production for a 30-years.

Challenges
During the planning stage of the horizontal well drilling program execution, the team identified multiple major subsurface
challenges:
1. The lack of offset well control in the area, increased structural uncertainty
2. The field lies within a highly faulted area, which increased the risk of exit from reservoir and the need to make
adjustments to re-enter the reservoir.
3. A multiple-aquifer system may exist, and the OWC was unknown. This increased the risk of approaching the
OWC and of early water breakthrough if the lateral section of the horizontal well were not placed properly, close
to reservoir top.

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4.
5.
6.

7.

The uncertainty in the top of gas and GOC might affect the oil production and recovery factor if the lateral section
of the horizontal well were not placed properly below the GOC.
Poor sand connectivity of the channel sands might affect the production and recovery factor if the sands are not
well connected by the lateral section of the horizontal well.
The seismic impendence inversion profile analysis showed that the distribution of the lateral sand properties is
variable; the strategy was to evaluate the upper target sand quality while drilling the earlier deeper target wells in
sequence.
Because of the complexity and relatively small volume of the OOIP, the field is considered as marginal; drilling
efficiency and the ability to minimize the drilling risk of exit from reservoir that may result in sidetracking were
required to lower the overall well construction cost.

Solution
To overcome these challenges and to enhance reservoir understanding, the advance distance-to-boundary well placement
technique using azimuthal deep directional electromagnetic logging-while-drilling (LWD) technology was applied (Fig. 7).

Fig. 7Top: Deep directional electromagnetic azimuthal LWD technology has the features of multiple frequencies and transmitterreceiver spacings and integrates two tilted receivers and one transverse transmitter. Bottom: The tool provides the ability to
simultaneously map multiple key boundaries in distance including the fluid contact, the top and bottom of the reservoir
structure, and the resistivity value of the target, upper bed, and lower bed.

A multifunction LWD formation evaluation tool (Fig. 8) was deployed to evaluate reservoir quality and fluid properties
where the top of the gas may occur. A real-time density image was also applied to determine the formation dip while drilling.
In addition, a rotary steerable drilling system (RSS) was assembled to achieve drilling efficiency, smooth trajectory control,
and full control of the well path within the drilling or steering window.

Fig. 8Multifunction LWD service integrates a full suite of formation evaluation, well placement, and drilling optimization
measurements into a single collar.

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Execution
Field operation examples from four challenging wells that demonstrate the subsurface complexities are described below.
The application of fit-for-purpose multifunction LWD formation evaluation tool and azimuthal LWD bed boundary mapping
tool in overcoming these challenges and facilitating decision making within the team are also discussed.
Case 1: Sand Boundary Identification
The plan for well HW#5 was to place the horizontal section for 350 m within the middle part of the reservoir (Fig. 9). The
well was planned near the main fault, and the seismic impedance profile showed that there was a possibility of discontinuity
between the channel sands (Fig. 10). A requirement was to avoid entry into the gas cap or bottom-water.

Fig. 9The well HW#5 was planned near the main fault with placement of the horizontal section for 350 m within the middle part of
the reservoir.

Fig. 10The seismic impedance profile shows the possibility of discontinuity between the channel sands at the well.

During the landing, the well was placed approximately 5 m below the reservoir top after entering the sweet spot zone (Fig.
11).

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Fig. 11Well landing approximately 5 m below the reservoir top in the sweet spot zone.

During the horizontal section drilling (Fig. 12), the top target was mapped by the azimuthal deep directional
electromagnetic tool, and subsequently the well trajectory was placed toward the middle of the reservoir. After drilling more
than 150 m, the bottom of the sand reservoir was clearly detected and delineated 4.6 m above the boundary. The trajectory was
then adjusted accordingly to level-off about 4 m away from the bottom. Toward the end of the well, the trajectory was
intentionally steered toward the upper zone to detect the top target. The target top was eventually detected and mapped toward
the total depth (TD) of the well.

Fig. 12Well trajectory placed optimally along the middle of the reservoir.

Without the ability to detect and map the boundaries, the horizontal section could have not been placed along the middle of
the reservoir and the trajectory could have exited from the bottom of the reservoir.
Finally, the 346-m horizontal section was drilled with 100% net-to-gross in about 7.5 hours, much faster than the 54 hours
of the plan.

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Case 2: Placing Trajectory Accurately Below the Gas Cap

The unknown GOC level was one of the major challenges in placing the horizontal section for well HW#10. The well was
planned near the fault in the crest area of the reservoir controlled by the channel depositional system (Fig. 13). The gas cap
exists in the crest area, but the GOC level was unknown. The objective of the well was to place the horizontal section within
the oil zone approximately 2 m below the GOC. Entry to the gas cap during the horizontal section was prohibited.

Fig. 13Well HW#10 planned near the fault in the crest area of the reservoir controlled by the channel depositional system. The gas
cap exists in the crest area, but the GOC level was unknown.

The option to drill a pilot well to confirm the GOC level was initially part of the original plan. However, the team was
aware that the real-time gas identification while drilling provided by the LWD tool could be a better alternative than the pilot
well and could potentially result in considerable savings in the AFE (Authorization for Expenditure) costs.
It was decided to rely on LWD data and eliminate the pilot well. The team recognized that the precise GOC level
identification during the landing section would be very critical to placement of the horizontal section below the gas cap to
avoid entering this prohibited zone.
To overcome this challenge, the multifunction LWD formation evaluation tool was deployed during the landing section.
Eventually, the GOC was identified at the level of 1536 m true vertical depth subsea (TVDSS) or 5 m deeper than the original
prognosis (Fig. 14), and the well then landed 2 m below the contact. Then the horizontal section was continued by keeping the
trajectory in the same level all the way to TD of the well.

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Fig. 14Well trajectory placed optimally along the middle of the reservoir.

The ability of the advance multifunction LWD tool to perform real-time formation evaluation while drilling allowed the
team to identify the GOC accurately, place the well below the gas cap properly, and save the cost of drilling a pilot well.
Case 3: Placement along the Braided Channel Sand Body
Well HW#2 demonstrated the complexity of the channel sand depositional system in the Bohai Bay area. As can be seen in
Fig. 15, the trend of the channel sand body is in the southeast/northwest direction, and then it turns to the opposite,
southwest/northeast, direction. The objective of HW#2 was to land the well near the edge right wing of the channel sand and
place the 800-m lateral section along the northeast/southwest direction. From the seismic inversion model, the trajectory may
approach the edge of the channel left wing toward the end.
During the landing section, the well was landed smoothly below the reservoir target top despite the reservoir found
shallower by 3 m compared to the original plan (Fig. 16).

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Fig. 15A horizontal well was planned to be drilled along the channel sand body.

Fig. 16The well landed smoothly despite the reservoir found 3 m shallower than the plan.

In the lateral section, the azimuthal LWD bed boundary mapper tool clearly delineated the channel sand body boundaries
along the horizontal section (Fig. 17). It was observed that the reservoir body consists of series of braided channel sands
surrounded by shaly sand. The trajectory was finally completed to TD and was optimally placed within the clean channel
sands while also setting a new record for lateral section length in the field. The team recognized that without the detailed

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information of the boundaries and the reservoir profiles, the trajectory would have not been placed within the clean channel
sands and might even have been placed out of the target reservoir body.

Fig. 17The azimuthal LWD bed boundary mapper tool clearly delineated the channel sand body boundaries along the horizontal
section.

Case 4: Well Type Adjustment While Drilling Based on Real-Time Information

Well Inj#2 was designed as an injector well for reservoir pressure maintenance (Fig. 18). The plan was to drill a directional
well from the top to the bottom of the reservoir (Fig. 19).

Fig. 18Well Inj#2 was designed as an injector well for reservoir pressure maintenance.

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Fig. 19The Inj#2 plan was to drill a directional well from the top to the bottom of the reservoir.

The multifunction LWD formation evaluation tool was used to evaluate the reservoir while drilling. Eventually, during the
drilling operation, the team decided to change the directional well into a horizontal well based on real-time formation
evaluation data (Fig. 19). The team found out that the quality of some intervals in the reservoir zone is not as good as was
expected, which may affect the efficiency of the injector well.

Fig. 19The directional well was shifted to a horizontal well based on real-time formation evaluation data during the drilling
operation.

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Therefore, the decision was made to extend the reservoir exposure by drilling a horizontal well rather than a directional
well. After 500 m of lateral section were achieved, the trajectory was intentionally drilled down the structure to tag the bottom,
thereby covering the entire reservoir section.
The success of shifting the directional injector well into a horizontal injector well has ensured the effectiveness of the
injector well within the area. The team also evaluated the adequacy of this injector horizontal well to support pressure
maintenance within this particular oil trap compartment. Cost savings were achieved by eliminating the need to drill another
injector well in the future.

Results
Nine horizontal wellsone injector well and eight producer wellswere precisely placed in the optimum position for
injection and drainage. A total of 4303 m of horizontal section was drilled and placed within the target reservoir with 100%
net-to-gross.
The injector well was begun as a directional well and then shifted to a horizontal well. One of the producer horizontal wells
was retracted upon discovery that the target sand was not developed within the targeted area, and another producer horizontal
well was canceled because of engineering considerations.
Despite the reduction in the number of producer wells from the original plan of 10 wells to 8 wells, the total production
from the 8 producer wells is even higher than the set goals of the total production of the 10 wells. The total production rate of
the 8 producer wells exceeded the expected total production rate of the 10 wells by 3.3%. This represents 30% additional
production per well compared to the original set goals (Table 1).
TABLE 1HORIZONTAL WELL PRODUCTION
PERFORMANCE
Well

Actual Production

Water Cut

(%)

(m /d)
HW Producer#1

85

1.2

HW Producer#2

86

23.9

HW Producer#3

116

0.3

HW Producer#4

69

HW Producer#5

125

19.3

HW Producer#6

200

0.4

HW Producer#7

212

2.1

HW Producer#8

171

15.4

Furthermore, the capability to increase the drilling penetration rate and avoid adjustments or sidetracks because of reservoir
exits led to a 60% improvement in drilling efficiency (Table 2), equivalent to a savings of USD 32 million.
TABLE 2DRILLING EFFICIENCY
Well

Horizontal length

Drilling time

Time saved
(hours)

(m)

(hours)

HW Producer#1

800

47

HW Producer#2

304

17.5

36.5

HW Producer#3

305

14.5

39.5

HW Producer#4

385

28.7

25.3

HW Injector

560

20

34

HW Producer#5

490

13.3

40.7

HW Producer#6

667

26

28

HW Producer#7

346

7.5

46.5

HW Producer#8
447
22
32
a
Drilling efficiency achieved by optimizing penetration rate and avoiding adjustments and
sidetracks because of reservoir exits.

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Conclusion
The development optimization of the BZ marginal oil field in Bohai Bay, China was successful, and the following factors
contributed to the success:
1. There was strong team work within multifunctional disciplines of the assets, drilling teams, and service providers.
2. The comprehensive field development plan to develop the complex and marginal oil field included horizontal /
deviated wells designed as producer / injector wells.
3. A contingency plan was formulated for each of the planned horizontal producer / injector wells based on the actual
findings of GOC and OWC level and the reservoir quality.
4. The horizontal well drilling approach utilized the drilling, LWD, and well placement fit-for-purpose technology.
5. The applications of fit-for-purpose technologies including advance multifunction formation evaluation and advance
deep directional electromagnetic azimuthal LWD with distance-to-boundary technique for well placement has
improved our understanding of the reservoir characteristics by accurately mapping multiple key boundaries in
distance, including the top and bottom of the reservoir structure, and by identifying the GOC and OWC levels. These
advantages enabled the team to make effective real-time decisions for placing the trajectory in the best place to drain
the remaining hydrocarbon. Furthermore, this information enabled the team to change the original plan of the well
into the contingency plan on the fly while drilling.
These key factors can be applied in similar marginal fields to overcome the challenges and transform the marginal oil field
into an economic oil field.

Acknowledgments
The authors would like to thank CCLS (CNOOC Tianjin) and Schlumberger for the permission to publish this information.

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