SPE/IADC Managed Pressure Drilling

and Underbalanced Operations

Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Natural Gas Recycle and

Recovery System
Dramatically Reduces
Drilling Cost and
Environmental Impact
Alek Ozegovic
Weatherford
1

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Outline
Recycle & Recovery Process
Equipment Involved

Advantages
Unique Requirements

Case Studies
Economical and Environmental Impact

Conclusions
2

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Traditional UBD Layout (Gas Well)

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Summary of Traditional UBD

On-site nitrogen membrane
40 m3/min N2 consumes 10,000 lpd of diesel

All drilling liquids recycled

All returned lift gas is flared
All produced gas is flared
* Cost of UBD becoming prohibitive in some cases *

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Something Has to Change

Why do we require generated N2 on location?
We dont

Why do we need inert gas to drill a well?

We dont

Is an alternative lift gas available?

Methane!

Can we utilize a neighboring pipeline to buy CH4

as our lift gas and sell it back to the pipeline?
Yes, but there needs to be an existing pipeline
5

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

BOOSTERS

BUYING GAS
FROM
PIPELINE TO
START UBD

Pipeline

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

H2S SCRUBBER

Valve

SHAKER
COMPRESSORS

STANDPIPE

RIG
PUMPS

ANNULAR

RIG MUD TANKS

UBD
CHOKE

PRODUCING
NATURAL
GAS WHILE
DRILLING
Natural Gas From Formation
Gas
Drilling Mud

SHUT OFF
SUPPLY GAS
AND OPEN
SALES LINE
NOT
NECESSARY
TO FLARE
WHILE
SEPARATOR
DRILLING BY
R&R

Flare Stack

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Scrubber

Compressors

Flare Stack

Booster & Mist

Pump

UBD ChokeMAC
& Skid
Separator
7

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Why Recycle and Recover Gas?

Cost Savings
Using natural gas as a nitrogen replacement, thereby not requiring the
nitrogen generating equipment
Reduced cost of diesel to run the equipment with bi-fuel modifications
Direct distribution of produced gas for selling to the pipeline rather than
flaring (generate revenue while drilling)

Reduce Environmental Impact

Reduced flaring of gas on location while drilling
Possible carbon tax credit by reducing emissions
8

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

1st CASE STUDY UBD

GAS WELL (CANADA)

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Depleted limestone reservoir

4 6 kPa/m [0.18 0.26 psi/ft]
Drilled with foam fluid system
water, methane, surfactant
Methane supplied from pipeline until well
produced and then methane was recycled
for drilling with excess sent to pipeline
10

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Data reporting compiled on a daily basis

and captured in End of Well Report
Some wells were multi-leg horizontals
1000

1400

911 e3m3 (36 mmscf) of gas produced

throughout the job.

1500

Cumulative Produced Gas

900

Cumultive Sales Gas

Cumulative Flare Stack Gas

1600

Cumulative Buy Gas

Hole Depth

800

1700

1800

1900

600

2000

500
2100

400

Hole Depth (m)

3 3

Produced Gas Volume (10 m )

700

2200

2300

300

2400

200
2500

100

2600

0
00:00
02/02

2700

12:00
02/02

00:00
03/02

12:00
03/02

00:00
04/02

12:00
04/02

00:00
05/02

12:00
05/02

00:00
06/02

12:00
06/02

00:00
07/02

12:00
07/02

00:00
08/02

12:00
08/02

Produced = Sales + Flare - Buy

00:00
09/02

12:00
09/02

00:00
10/02

11

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Gas Production for R&R UBD Wells

3000

YEAR 1

Gas Production (e3m3)

2500

YEAR 2

YEAR 3

YEAR 4

2000

1500

1000

500

Wellhead Number

Recovered Gas (e3m3)

12

Flared Gas (e3m3)

Produced Gas (e3m3)

110

106

102

98

94

90

86

82

78

74

70

66

62

58

54

50

46

42

38

34

30

26

22

18

14

10

Recovered Gas=Sold Gas-Buy Gas

Flared Gas=Produced Gas+Buy Gas-Sold Gas

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Flush
Production

Matrix
Production

13

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

AVERAGE FLARED GAS WAS

~25% OF PRODUCED GAS

14

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

Gas Production for R&R UBD Wells

Total Recovered Gas = 61,600 e3m3

3000

YEAR 1

2500

Gas Production (e3m3)

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

YEAR 2

YEAR 3

YEAR 4

2000

1500

1000

500

Wellhead Number
15

Recovered Gas (e3m3)

Flared Gas (e3m3)

Produced Gas (e3m3)

110

106

102

98

94

90

86

82

78

74

70

66

62

58

54

50

46

42

38

34

30

26

22

18

14

10

Recovered Gas=Sold Gas-Buy Gas

Flared Gas=Produced Gas+Buy Gas-Sold Gas

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

$10,000,000

65000

Recovered Gas in Dollars

60000

CDN $ 9,855,058

Recovered Gas

55000

$8,000,000

50000

61,600 e3m3
$6,000,000

45000
40000
35000
30000

$4,000,000

25000
20000
15000

$2,000,000

10000
5000

$0

PROJECT TIMELINE
The gross heat of combustion of 1 m3 of commercial quality natural gas is around 0.039 GJ
Gas price is based on monthly average gas price in Alberta from http://www.ngx.com/natgas.html

16

Cumulatve Recovered Gas (e3m3)

Cumulatve Recovered Gas Market Value ($)

Market Value for Recovered Gas

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

$6,000,000

Flared Gas Value

$5,000,000

Flared Gas Volume

36000

CDN $ 5,261,960
30000

$4,000,000
24000

$3,000,000

29,983 e3m3
$2,000,000

18000

12000

$1,000,000

6000

$0

PROJECT TIMELINE
17

Cumulatve Recovered Gas (e3m3)

Cumulatve Recovered Gas Market Value ($)

Market Value for Flared Gas

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

2nd CASE STUDY

SOUR GAS WELL

18

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Sour Gas Well Recovery Application

Used to drill a deep horizontal (~3725mTVD, 700m lateral).

Potential for sour gas, estimated to be 13.7% H2S (12% on real test)
The regulatory board issued a flare permit for a maximum of 240 e3m3
cumulative gas flared throughout the entire operation (National Park).

How can we do this?

19

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Mitigating H2S Hazards

Provided equipment compatible with sour gas, and
resistant to deterioration of all of the flexible elements in
the fluid handling system, i.e. ensured rubber compatibility.
Provided connections to pipeline and directly transported
produced sour gas into pipeline system.

Sour gas level measurements taken with a Gas Tec

monitor while drilling, ensuring safety to all personnel on
location.
Supplied real-time engineering control and data acquisition
system. All drilling parameters monitored throughout the
operation.
20

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Process Flow Diagram Closed Loop

Bleed Off
Separator

Standpipe
Manifold
WFT
Control
Manifold

RBOP

Flare
Stack

Standpipe Bleed Off

to Separator
Sample Catchers

Bleed Off
To Shakers

Oil Dump to
Tank Farm

Processing
Unit

Rigs Choke
Manifold

Annular

H2S
Scrubber

Compressor

Pipe line

Produced gas
to pipeline

WFT
4 Phase
Separator

Solids Control Tank

Produced
Water

Gas
Oil
Water
Solids
Multiphase Flow

Low Volume
Pump

Compressor

Supply gas

Supply gas
from pipeline

Foam

Tank Farm
Settling Time

Defoamer

OPEN FLUID
H2S
Scrubber

CLOSED FLUID
OPEN SOLIDS
CLOSED SOLIDS
SCRUBBERS ON TANK VENTS

21

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Sour Gas Well Recovery Application - Results

Recovered over 98% of the total natural gas with
12% H2S over a drilling period of 21 days

Total gas flared was 8.5 e3m3 (0.3 MMscf), well

below permit
Reduced environmental impact & increased safety
Sweet gas pipeline for supply; produced sour gas
and returned to a sour gas processing facility

Drilling fluid contamination was mitigated using H2S

scavenger and dump & dilute methodologies
22

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Planning for R&R application?

23

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

QHSE Integrated for R&R Process

Pre-job planning including development of a UB drilling
program with specific SOPs
HAZOP & HAZID
Site visits to optimize equipment layout and spacing
Auto alarms & shutdowns; intrinsically safe and certified
equipment along with LEL & H2S monitoring
Relief and vent lines tied into a closed loop and not open to
atmosphere

Data monitoring and post well review

24

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Unique Requirements for R&R

Pipeline Gas Supply

Need to be in a developing field for this to be feasible

Constant pipeline feed pressure & minimal fluid content

Buy & Sell gas specifications

Additional metering equipment with advanced

metering calculations for accurate real-time
measurement data
Equipment modifications to compress natural gas
Adequate lease for equipment and associated piping
25

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Reduce/Eliminate Flaring
Safety
Environmental
Economic

Closed-Loop Circulation System

Mitigate H2S & CO2 exposure

Drilling Fluid Compatibility

Oil Wells Flow Drilling applications

26

SPE/IADC Managed Pressure Drilling

and Underbalanced Operations
Conference & Exhibition

8-9 April 2014

NH Eurobuilding
Hotel, Madrid

Thank you!

27