PRESENT THE

PAST
A CASE STUDY

Satyam, Mo: +91-9927239557

 Case Study Problem Statement
1. Introduction
The Crust Oil Co. is a large integrated oil and gas company aspiring to expand its
business in OPEC-Nagar which has an offshore Technindite field.
The offshore field is a new associated gas-oil exploratory field for which the exploratory
data of well named named Sheikh-1 has been made available to the company from the
Govt. of OPEC Nagar.The data consists of seismic data depicting different geological
structures and stratigraphy. On reaching requisite depth coring was done. The core
sample was transferred at core laboratory to conduct core studies. DST and
temperature logs were conducted to obtain reservoir properties.
Another well Sheikh-2(first exploratory well drilled by the company) was drilled after
calculating radius of investigation from DST data.Rig sensor and step test data are
available for that particular well.Due to the presence of over pressured zones an influx
occurred. Well control data for that incident is to be calculated.
Reservoir PVT Data is available to determine reservoir water encroachment,
hydrocarbon reserves available.
After producing oil from the field it has to be transported at one of the coastal state of
the country via subsea pipelines. According to contract requirements between the
company and country “20% of the refined product has to be made available at
nearby island and 80% has to be sold at OPEC Nagar, Company has to bear the
cost of setting up refinery/refineries.”
2. Local Environment of OPEC Nagar

OPEC Nagar has world class flora and fauna, both onshore and offshore. The area near
the coast of OPEC Nagar is of particular importance as it is inhabited by a species of
endangered fishes (shown as dark blue color in the map). Any changes in the natural
environment may lead to strong repercussions for the government and the responsible
company, both locally and internationally.
Moreover AAPG Island is strategically very important for OPEC Nagar. Therefore the
contractual requirements have to be met at any cost.
 Technindite Field Data
Seismic Map

Sheikh-1 Well

2000m
 Coring Data
The grain volume was measured in two cell Boyle’s law porosimeter
Sample dimensions
Length = 4cm
Diameter = 2.5cm
Porosimeter Data
V1 = 25.00cc P1 = 100 psig.
V2 = 50.00cc P2 = 50.00 psig.
 DST Data of Sheikh-1
A DST test was conducted on a well. Following information was reported by the DST
Company.
Pressure buildup data as well as well/reservoir data are given in the aforementioned
tables:-
Test type = Open hole
Hole size = 7.88 inch
Pipe length = 240 ft
Diameter of collar = 45 in
Reservoir pressure @ gauge depth = 2560 psi
Pressure at the end of 1st flow = 371 psi
Final shut-in pressure = 1005 psi
Pressure at the end of 2nd flow period = 643 psi
Final shut-in pressure = 1969 psi
API0 = 36.87 API
Initial shut-in pressure = 2660 psi
Bo = 1.215 RB/STB
Vu = 0.0197 bbl/ft and ᴘ = 52.78 lb/ft3
Total well depth = 6550 ft
Mud density = 7.5 lb/gal
Collar length = 240 ft
Gauge depth = 6549 ft
First flow period = 6 min
First shut-in period = 30 min
Second flow period = 60 min
Second shut-in period = 120 min
μo = 1.2 cp
h = 17 ft
rw = 0.33 ft
tp1 = 60 min, tp2 = 120 min
 Pressure Buildup Test Data

Dimensionless
Time, Δt (min) Time, Δt (hour) Pressure, pws (psig)
time, [(tp + Δt)/ Δt]

First flow period

0 0.000 - 371

3 0.050 3.00 665

6 0.100 2.00 672

9 0.150 1.67 692

12 0.200 1.50 737

15 0.250 1.40 786

18 0.300 1.33 832

21 0.350 1.29 874

24 0.400 1.25 919

27 0.450 1.22 962

30 0.500 1.20 1005

Second flow period

3 0.050 41.00 665

6 0.100 21.00 672

9 0.150 14.33 692

12 0.200 11.00 737

15 0.250 9.00 786

18 0.300 7.67 832

21 0.350 6.71 874

24 0.400 6.00 919

27 0.450 5.44 962

30 0.500 5.00 1005

33 0.550 4.64 1046

36 0.600 4.33 1085

39 0.650 4.08 1128

42 0.700 3.86 1170

45 0.750 3.67 1208

48 0.800 3.50 1248

51 0.850 3.35 1289

54 0.900 3.22 1318

57 0.950 3.11 1361

60 1.000 3.00 1395

63 1.050 2.90 1430

66 1.100 2.82 1467

69 1.150 2.74 1499

72 1.200 2.67 1536

75 1.250 2.60 1570

78 1.300 2.54 1602

81 1.350 2.48 1628

84 1.400 2.43 1655

87 1.450 2.38 1683

90 1.500 2.33 1713

93 1.550 2.29 1737

96 1.600 2.25 1767

99 1.650 2.21 1794

 102 1.700 2.18 1819

105 1.750 2.14 1845

108 1.800 2.11 1869

111 1.850 2.08 1894

114 1.900 2.05 1917

117 1.950 2.03 1948

120 2.000 2.00 1969

Temperature Log Data (of Sheikh-1)

Time Operation Temperature T t T/(t+T)

(Centigrade) (hours) (hours)
00:00 Circulation _ _ 6
started
06:00 Circulation _ 0 6
stopped
13:00 Run IEL Log 100 7 6 0.538
17:30 Run Sonic 105 11.5 6 0.671
Log
01:30 Run FDC- 108 19.5 6 0.765
CNL Log

 T represents the time after circulation that the borehole has had to partially
reheat.
 The parameter t represents the length of time that the borehole was subjected to
the cooling effects of the fluid.
 PVT Data
QO = 2500 STB/Day for 2 years GOR (producing) = 700 SCF/Day
WP = 2000 bbl/day m=0.3 Reservoir Extent = 100acres

At initial reservoir conditions

BO = 1.54 bbl/stb
RS = 1100 SCF/STB
Z = 0.82
BW = 1.05 bbl/stb
At current reservoir conditions (Current reservoir pressure 2200 psi)
BO = 1.42 bbl/stb
RS = 900 scf/stb
Z= 0.88
BW = 1.035 bbl/stb μo = 1.2 cp
Compressibility Data
CW =2.5 * 10-6 psi-1
ᵑ = 1941.1249 md psi/cp
Sheikh 2 Data
Sensor Data
Sheikh 2 Data
Step Test
 Sheikh 2 Data
Well Control Data
Well parameters:-
Well depth, H = 7,000 ft
Hole size, Dh= 7 ⅞ in
Drillpipe size, = 4 ½ in
8 5/8-in surface casing = 2000 ft
Casing internal diameter, Dd = 8.017 in
Mud weight, ᴘ = 8.8 ppg

A kick is taken with the drill string on bottom and,

Shut-in drill pipe pressure, Pdp = 200 psi

Shut-in annulus pressure, Pa = 300 psi
Pit level increase = 10 barrels
Capacity of the:
Drill pipe casing annulus, Cdpca = 0.0428 bbl/ft
Drill pipe hole annulus, Cdpha = 0.0406 bbl/ft
Depth to top of influx = 6,754 ft

The drill pipe contains a float which does not permit the shut-in drillpipe pressure to be
recorded. Further, the rig has lost all power and is unable to displace the influx. After
one hour, the shut-in annulus pressure has increased to 400 psi.
Describe the procedure for permitting the influx to migrate to the surface.
 Transportation Economics

Contractual terms
The contract between The Crust Oil Co. and OPEC Nagar would be a production
sharing contract for 12 years for Technindite field. There is a potential for a 6-year
extension, subject to government approval, pending field performance and operator
performance.

Mode of transportation
 Subsea pipelines for transporting crude from offshore field to OPEC-Nagar
and/or transporting from OPEC Nagar to AAPG Island.
 Tankers for transporting refined products from OPEC Nagar to AAPG Island.

Additional Data
Based on assumptions and given data and including a suitable margin as well, peak
production from the field is expected to be 5000 bbl/day. The aforementioned tables
cover the expected cost of typical scenarios:-
 Processing
capacity Capex (billion $) Opex (US $/bbl)
(thousand bbl/d)
5 5 26.78
4 4.2 24.79
1 1.5 24.20

Capex and Opex for Oil refinery

Pipeline Capacity Subsea pipeline (on Subsea pipeline

(thousand bbl/d) seabed) (billion $) (buried) (billion $)
5 0.88 1.1
4 0.79 0.99
1 0.44 0.55

Pipeline costs ($/km)

Transport of oil via tankers
Currently, five ships of different capacities and different cost/km are available. A
maximum of two can be used at a time. It takes the 4 days for a round trip from AAPG
Island to OPEC nagar (200- km).

Ship capacity
US $/km
(1000 bbl)

5 20
11 40
22 50
26 60
18 45

Oil Carrier ship costs

3. Deliverables
 Analyze Sheikh 1 DST AND Temperature log data to determine reservoir
properties.
 Analyze Sheikh 2 Rig sensor and step test data and give an outlook about
subsurface formation characteristics along with the irregular bit motions occurring
downhole and measures to be implemented to overcome them.
 Determine the measure to overcome the well control problem which occurred in
Sheikh-2.
 Determine in place reserves available along with water encroachment.
 Develop field development plan for subsequent development of the field which
must include the plan for further drilling of wells and their profiling.
 Key risks (Technical/Non-technical) for the field development; and the mitigation
steps.
 Deliver the most cost effective method of transporting products as per the
contractual terms.

4. RULES
 Screening - Preliminary strategy mentioned in deliverables (along with
parameters to be determined) to be submitted in a 3 page MS Word document
with Arial Font and Font Size -10, Justified.
 Team size: Minimum -2, Maximum-3 members. Send in your entries to
crust.presentthepast2017@gmail.com
 Subject Line – “Crust Challenge submission - <Team Name>”
 Last Date for Submission 5th April, 18:00 hrs.
 Selected Teams will be notified latest by 5th April 2017, midnight to make a final
presentation before the judging panel.
 Each selected team will be allowed 10 minutes for presentation +5 minutes for
Q&A. Please limit the main presentation to maximum eight slides.

“Justifiable Assumptions can be made.”

For queries Contact

Satyam Uppal
(+91-9927239557)