INTERNSHIP REPORT

By

Muhammad Arif Samo

Final Year Student
Petroleum & Natural Gas Engineering
Mehran UET Jamshoro.
----------------------------------------------------
Internship Duration
14th June 2016 to 9th July 2016
(4 weeks)
 Table of Contents

1. Preface
2. Acknowledgment
3. Introduction to Pakistan Oilfields Ltd.
4. Learnings in Reservoir deptt.
4.1 Decline Curve Analysis
4.2 Volumetric Assessment of Reserves
4.3 Introduction to Software Modules
4.4 Petroleum Resource Management System (PRMS)

5. Learnings in Drilling deptt.

5.1 Worker Operation of Minwal X-1
5.2 Closed Power Fluid System

6. Feedback and Technical Suggestions

 Preface

The report includes activities and processes that I learnt during my internship at Pakistan Oilfields
Limited in a duration of 4 weeks, I was attached with Reservoir department (Headoffice) &
Drilling Department (Rigsite) for two weeks each w.e.f 14th June 2016 to 9th July 2016.

This report highlights the events that occurred during my stay at well Minwal X-1; Workerover &
Recompletion Operation. It also briefly discusses the processes that are employed on the well for
production system.

This report is provided with the illustrations and the flow charts where ever needed so that reader
can be able to fully understand the basics of any process.

The Study is divided into two sections that are; Reservoir Engineering & Drilling Engineering, the
learning experience was gained from the two departments mentioned above.
 Acknowledgment

I am highly thankful to all the management staff and Technical Staff (SMS & JMS) of Pakistan

Oilfields Limited, Rawalpindi, Pakistan, especially our General Manager Mr. Bilal A. Khan, for

providing me Summer Internship 2016 Opportunity, I further extend my gratitude to my senior

Mentors; Senior Reservoir Consultant Mr. Shoukat Elahi Qazi, D.M (Reservoir) Mr. Shahzad

Ali, Senior Manager Production Mr. Riaz-ud-din, Company man at Rigsite Mr. Zaheer

Chaudhary for their extended support throughout my Internship tenure.

I am also thankful to representatives from Human Resource department, Senior HR Executive Mr.

Farhan Akhtar and HR Executive Mr. Hasnain Sajid for dealing with our day to day schedule

of Internship and Coordinating for Boarding and Lodging at Rigsite.

 Introduction to Pakistan Oilfields Ltd.
The Pakistan Oilfields Limited (KSE: POL; formerly known as Pakistan-Soviet Oil FIelds), is
a global competitive oil exploration consortium and megacorporation, located
in Rawalpindi, Punjab Province of Pakistan. The Pakistan Oilfields is a subsidiary of the Attock
Group of Companies, was incorporated on 25 November 25, 1950, with the financial capital and
technical cooperation of the Soviet Union.
In 1978, Pakistan Oilfields took over the exploration and production business of Alishba Oil
Company. Since then, Pakistan Oilfields has been investing independently. Pakistan Oilfields is a
leading oil and gas exploration and production company listed on all the three stock exchanges of
Pakistan.

 Corporate Overview
The Pakistan Oilfields was incorporated by the Ministry of Petroleum and Natural
Resources (MoPMR) on 25 November 1950, by the government of Prime Minister Liaquat Ali
Khan. In 1959, Minister of Energy Zulfikar Ali Bhutto officially proceeded with Nikita
Khrushchev on a bilateral cooperation agreement; the Soviet Union officially joined the project as
a joint-venture in 1960. The joint-venture was established as "Pakistan-Soviet Oilfields",
with Pakistan Petroleum also joined hands in this megaproject. In 1961, with technical advisers
and financial capital provided by the Soviet Union, the oilfields and Pakistan Petroleum began oil
exploration and began drilling the extracted field with Soviet help in 1961 and activity began in
Toot during 1964. It became part of the Attock Group of Companies (AOC) which had most of its
shares and control over the management.
In 1978, the POL was horizontally integration and took over the exploration and production
business of AOC. Since then, POL has been investing independently and in joint venture with
various exploration and production companies for the search of oil and gas in the country. In
addition to exploration and production of oil and gas, POL also manufactures LPG, Solvent Oil
and Sulphur. POL markets LPG under its own brand named POLGAS as well as through its
subsidiary CAPGAS (Private) Limited. POL also operates a network of pipelines for transportation
of its own as well as other companies' crude oil to Attock Refinery Limited. In 2005, the Company
acquired a 25% share in National Refinery Limited, which is the only refining complex in the
country producing fuel products as well as lube base oils.
 Learnings In Reservoir Department

 Decline Curve Analysis

Decline curve analysis (DCA) is a graphical procedure used for analyzing declining production
rates and forecasting future performance of oil and gas wells. Oil and gas production rates decline
as a function of time; loss of reservoir pressure, or changing relative volumes of the produced
fluids, are usually the cause. Fitting a line through the performance history and assuming this same
trend will continue in future forms the basis of DCA concept. It is important to note here that in
absence of stabilized production trends the technique cannot be expected to give reliable results.

Types of declines
The technique is not necessarily grounded in fundamental theory but is based on empirical
observation of production decline.

Three types of declines are observed:

1. Exponential
2. Hyperbolic
3. Harmonic

There are theoretical equivalent to these decline processes. It can be demonstrated that under
conditions such as constant well back pressure, equation of fluid flow through porous media under
boundary dominated flow are equivalent to exponential decline. However for our purpose it is the
empirical nature of this term which has a greater significance since it allows the technique to be
applied to multiple fluid streams even ratios.

Golden rule of decline curve analysis (DCA)

The basic assumption in this procedure is that whatever causes controlled the trend of a curve in
the past will continue to govern its trend in the future in a uniform manner

Decline curves for reserve estimates

A major use of decline curve analysis is made in estimation of reserves. Even for the assets where
history matched simulation models are available, a cross check with DCA is normally made to
give increased confidence in numbers.

The fact that DCA does not have a theoretical basis is an asset here since financial institutions are
more acceptable to DCA estimates than other more technical methodologies. A major difference
when applying DCA for estimation of reserves arises understandably due the very nature of
definitions of reserves and financial implications associated with the process. The ultimate
recovery numbers become more important than the profiles. Application of constraints in the
production system, operating costs, capital costs and well behavior itself all need to be put into
right perspective to come up with reliable estimations.

Decline Curve Analysis Performed

The name of the field and well are kept confidential in respect of Company rules & policies.

For Oil

EXPONENTIAL FOR OIL

250.0

200.0
Barrels Per Day

150.0

Predicted Rate
100.0 Actual

50.0

0.0
0 20 40 60 80 100 120 140 160
No. of Months
 For Gas

Exponential For Gas

1.400

1.200

1.000

0.800
MMSCF/D

Actual
0.600
Predicted rate

0.400

0.200

0.000
0 20 40 60 80 100 120 140 160
Number of Months
 Volumetric Assessment of Reserves
Volumetric estimates of OOIP and OGIP are based on a geological model that geometrically
describes the volume of hydrocarbons in the reservoir. However, due mainly to gas evolving from
the oil as pressure and temperature are decreased, oil at the surface occupies less space than it does
in the subsurface. Conversely, gas at the surface occupies more space than it does in the subsurface
because of expansion. This necessitates correcting subsurface volumes to standard units of volume
measured at surface conditions.
One basic volumetric equation is

where

 N = OOIP (STB)
 7758 = conversion factor from acre-ft to bbl
 A = area of reservoir (acres) from map data
 h = height or thickness of pay zone (ft) from log and/or core data
 ø = porosity (decimal) from log and/or core data
 Sw = connate water saturation (decimal) from log and/or core data
 Boi = formation volume factor for oil at initial conditions (reservoir bbl/STB) from lab data;
a quick estimate is , where N is the number of hundreds of
ft3 of gas produced per bbl of oil [for example, in a well with a GOR of 1000, Boi = 1.05 +
(10 × 0.05)]
Another basic volumetric equation is

where

 G = OGIP(SCF)
 43560 = conversion factor from acre-ft to ft3
 Bgi = formation volume factor for gas at initial conditions (RES ft3/SCF)
Recoverable reserves are a fraction of the OOIP or OGIP and are dependent on the
efficiency of the reservoir drive mechanism. The basic equation used to calculate
recoverable oil reserves is

where RF = recovery factor, which equals RFP + RFS

The primary recovery factor, RFP, is estimated from the type of drive mechanism
(Table 2). The secondary recovery factor, RFS, equals
 Table 2 Estimation of primary recovery factor

Drive Mechanism Primary Recovery Factor Drive Mechanism (%)

Depletion

Solution gas 18–25

Expansion 2–5

Gas cap drive 20–40

Water drive

Bottom 20–40

Edge 35–60

Gravity 50–70

where

 ED = displacement efficiency
 EA = areal sweep efficiency
 EV = vertical sweep efficiency
These efficiency terms are influenced by such factors as residual oil saturation,
relative permeability, reservoir heterogeneity, and operational limitations that govern reservoir
production and management. Thus, it is difficult to calculate the recovery factor directly using
these terms, and other methods, such as decline curves, are often applied.
The basic equation to calculate recoverable gas reserves is

In this case, the recovery factor (RF) is typically higher than for oil reservoirs; it is often near unity
for dry gas reservoirs.
 Volumetric Assessment Performed
The name of the field and well are kept confidential in respect of Company policies.

I was assigned the task of carrying out volumetric assessment of reserves using mapping approach.
Following were the results obtained:

DATA

P-90 P-50 P-10

AREA acre 787.6 926.5 1038.4
THICKNESS ft 350 375 400
NTG % 0.6 0.7 0.8
POROSITY % 0.07 0.08 0.09
SATURATION % 0.6 0.7 0.8
Bg Rcf/Scf 0.005 0.0047 0.00454

Calculations

G scf 60519057984 1.26E+11 2.3E+11

Bscf 60 126.2 230

G = 43560 x area x thickness x NTG x porosity x saturation / Bg

 Introduction to Software Modules
OFM Schlumberger

Data consolidation to workflow standardization

The OFM software allows organization-wide implementation of engineering workflow standards,
supporting corporate and personal workflow solutions for any size of asset. By leveraging this
standardization, basic or complex analyses can be performed for individual or multiple
completions, groups of wells, an entire field, or several fields. OFM software supports rapid,
scalable deployments from single assets to enterprise-wide rollouts for multiple assets and
locations.

Connecting multiple disciplines through openness

The OFM software improves productivity by driving collaboration between technical disciplines.
Improved integration streamlines two-way data transfer between the software and

 simulation models to share results from your shared earth model (via the OFM software plug-in
for the Petrel E&P software platform)
 production volumes, operations data, and field event history (via the Avocet production
operations software platform)
 project-economic evaluations and forecasts (via the OFM software plug-in for Merak Peep)
 any user-customized plug-in.

PIPESIM Schlumberger
Typical flow assurance applications:

Pipeline and facility sizing

 Size pipelines to minimize backpressure while maintaining stable flow within the maximum
allowable operating pressure (MAOP)
 Size pumps, compressors, and multiphase boosters to meet target rates
 Examine system-design layout options and operating parameters for a range of inputs
 Size separation equipment and slug catchers to manage liquids associated with pigging, ramp-up
surges, and hydrodynamic slugging volumes
 Design and optimize pipelines and equipment such as pumps, compressors, and multiphase
boosters to maximize production and capital investment
 Well performance

 Perform nodal analysis and diagnose liquid loading or lift requirements

 Design artificial lift systems (e.g., rod pumps, progressing cavity pumps, ESPs, and gas lift) and
compare their relative benefits
 Optimize production through intelligent completions by modeling downhole flow control valves
or other downhole equipment, such as chokes, subsurface safety valves, separators, and
chemical injectors
 Optimize the completion design by considering skin effects on horizontal well length and tubing
or casing size
 Model multilaterals or wells with multiple layers and crossflow

Liquids managements

 Identify the risk for severe riser slugging

 Account for emulsion formation
 Assess the operational risk from the deposition of wax along flowlines over time

Integrity

 Identify locations prone to corrosion and predict CO2 corrosion rates

 Model erosion using the API 14E and Salama methods
 Manage pipeline integrity with erosion and corrosion prediction
 Accurately characterize fluid behavior with a wide variety of black-oil and compositional fluid
models

Solids management

 Identify the risks of potential solids formation including wax, hydrates, asphaltenes, and scales
 Assess the risk from deposition of wax along flowlines over time
 Determine the amount of methanol to inject to avoid hydrate formation
 Calculate optimal burial depth and insulation requirements for pipelines

MBAL (IPM)
MBAL
Efficient reservoir development requires a good understanding of reservoir and production
systems. MBAL helps the engineer better define reservoir drive mechanisms and hydrocarbon
volumes. This is a prerequisite for reliable simulation studies. MBAL is commonly used for
modelling the dynamic reservoir effects prior to building a numerical simulator model.
MBAL contains the classical reservoir engineering tool and has redefined the use of Material
Balance in modern reservoir engineering.
For existing reservoirs, MBAL provides extensive matching facilities. Realistic production
profiles can be run for reservoirs with or without history matching.
 MBAL is an intuitive program with a logical structure that enables the reservoir engineer to
develop reliable reservoir models quickly.
Reservoir Engineering Tool

 Material Balance
 Monte Carlo Simulator
 Decline Curve Analysis
 1D model
 Multi-Layer
 Tight Gas

Material Balance
This incorporates the classical use of Material Balance calculations for history matching through
graphical methods (like Havlena-Odeh, Campbell, Cole etc.). Detailed PVT models can be
constructed (both black oil and compositional) for oils, gases and condensates.
Furthermore, predictions can be made with or without well models and using relative
permeabilities to predict the amount of associated phase productions.

 Multi Tank Variable PVT with Depth

 Determine Components of Reservoir Energy
 Visualize the Parameters that Impact Performance

Forecast Well and Reservoir Performance

 Forecast Using Rate Schedule or Well and manifold pressure schedule

 Set well and global constraints:
 At well and field level
 Determine when wells will water out
 Forecast pressure decline, producing GOR
 The long term effects of completion decisions on compression, gas/water injection, gas recycling

PVT

 Black oil
 Fully Compositional
 Compositional Tracking
 Petroleum Resource Management
System (PRMS)
Basic Principles and Definitions
The estimation of petroleum resource quantities involves the interpretation of volumes and values
that have an inherent degree of uncertainty. These quantities are associated with development
projects at various stages of design and implementation. Use of a consistent classification system
enhances comparisons between projects, groups of projects, and total company portfolios
according to forecast production profiles and recoveries. Such a system must consider both
technical and commercial factors that impact the project’s economic feasibility, its productive life,
and its related cash flows.

Petroleum Resources Classification Framework

Petroleum is defined as a naturally occurring mixture consisting of hydrocarbons in the gaseous,
liquid, or solid phase. Petroleum may also contain non-hydrocarbons, common examples of which
are carbon dioxide, nitrogen, hydrogen sulfide and sulfur. In rare cases, non-hydrocarbon content
could be greater than 50%. The term “resources” as used herein is intended to encompass all
quantities of petroleum naturally occurring on or within the Earth’s crust, discovered and
undiscovered (recoverable and unrecoverable), plus those quantities already produced. Further, it
includes all types of petroleum whether currently considered “conventional” or “unconventional.”
Figure 1-1 is a graphical representation of the SPE/WPC/AAPG/SPEE resources classification
system. The system defines the major recoverable resources classes: Production, Reserves,
Contingent Resources, and Prospective Resources, as well as Unrecoverable petroleum.
The “Range of Uncertainty” reflects a range of estimated quantities potentially recoverable from
an accumulation by a project, while the vertical axis represents the “Chance of Commerciality,
that is, the chance that the project that will be developed and reach commercial producing status.
The following definitions apply to the major subdivisions within the resources classification:

TOTAL PETROLEUM INITIALLY-IN-PLACE is that quantity of petroleum that is estimated

to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that
is estimated, as of a given date, to be contained in known accumulations prior to production plus
those estimated quantities in accumulations yet to be discovered (equivalent to “total resources”).

DISCOVERED PETROLEUM INITIALLY-IN-PLACE is that quantity of petroleum that is

estimated, as of a given date, to be contained in known accumulations prior to production.

PRODUCTION is the cumulative quantity of petroleum that has been recovered at a given date.
While all recoverable resources are estimated and production is measured in terms of the sales
product specifications, raw production (sales plus non-sales) quantities are also measured and
required to support engineering analyses based on reservoir voidage. Multiple development
projects may be applied to each known accumulation, and each project will recover an estimated
portion of the initially-in-place quantities. The projects shall be subdivided into Commercial and
Sub-Commercial, with the estimated recoverable quantities being classified as Reserves and
Contingent Resources respectively, as defined below.

RESERVES are those quantities of petroleum anticipated to be commercially recoverable by

application of development projects to known accumulations from a given date forward under
defined conditions. Reserves must further satisfy four criteria: they must be discovered,
recoverable, commercial, and remaining (as of the evaluation date) based on the development
project(s) applied. Reserves are further categorized in accordance with the level of certainty
associated with the estimates and may be sub-classified based on project maturity and/or
characterized by development and production status.

CONTINGENT RESOURCES are those quantities of petroleum estimated, as of a given date,

to be potentially recoverable from known accumulations, but the applied project(s) are not yet
considered mature enough for commercial development due to one or more contingencies.
Contingent Resources may include, for example, projects for which there are currently no viable
markets, or where commercial recovery is dependent on technology under development, or where
evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent
Resources are further categorized in accordance with the level of certainty associated with the
estimates and may be sub classified based on project maturity and/or characterized by their
economic status.

UNDISCOVERED PETROLEUM INITIALLY-IN-PLACE is that quantity of petroleum

estimated, as of a given date, to be contained within accumulations yet to be discovered.

PROSPECTIVE RESOURCES are those quantities of petroleum estimated, as of a given date,

to be potentially recoverable from undiscovered accumulations by application of future
development projects. Prospective Resources have both an associated chance of discovery and a
chance of development. Prospective Resources are further subdivided in accordance with the level
of certainty associated with recoverable estimates assuming their discovery and development and
may be sub-classified based on project maturity.
UNRECOVERABLE is that portion of Discovered or Undiscovered Petroleum Initially-in Place
quantities which is estimated, as of a given date, not to be recoverable by future development
projects. A portion of these quantities may become recoverable in the future as commercial
circumstances change or technological developments occur; the remaining portion may never be
recovered due to physical/chemical constraints represented by subsurface interaction of fluids and
reservoir rocks.
 Learnings In Drilling Department

Workover & Recompletion

Minwal X-1
The term workover is used to refer to any kind of oil well intervention involving invasive
techniques, such as wireline, coiled tubing or snubbing. More specifically though, it will refer to
the expensive process of pulling and replacing a completion.
Workovers rank among the most complex, difficult and expensive types of well work. They are
only performed if the completion of a well is terminally unsuitable for the job at hand.
The production tubing may have become damaged due to operational factors like corrosion to the
point where well integrity is threatened. Downhole components such as tubing,
retrievable downhole safety valves, or electrical submersible pumps may have malfunctioned,
needing replacement.

Workover Rig doing a Snub Job

In other circumstances, the reason for a workover may not be that the completion itself is in a bad
condition, but that changing reservoir conditions make the former completion unsuitable. For
example, a high productivity well may have been completed with 5½" tubing to allow high flow
rates (a narrower tubing would have unnecessarily choked the flow). Some years on, declining
productivity means the reservoir can no longer support stable flow through this wide bore. This
may lead to a workover to replace the 5½" tubing with 4½" tubing. The narrower bore makes for
a more stable flow.
Before any workover, the well must first be killed. Since workovers are long planned in advance,
there would be much time to plan the well kill and so the reverse circulation would be common.
The intense nature of this operation often requires no less than the capabilities of adrilling rig.
The workover begins by removing the wellhead and possibly the flow line, then lifting the tubing
hanger from the casing head, thus beginning to pull the completion out of the well. The string will
almost always be fixed in place by at least one production packer. If the packer is retrievable it can
be released easily enough and pulled out with the completion string. If it is permanent, then it is
common to cut the tubing just above it and pull out the upper portion of the string. If necessary,
the packer and the tubing left in hole can be milled out, though more commonly, the new
completion will make use of it by setting a new packer just above it and running new tubing down
to the top of the old.

Closed Power Fluid System

At well Minwal X-1 there was dual completion, 2 7/8” and 1.9” Tubing were employed. 2 7/8”
was used to pump the power oil and 1.9” was employed for the return of power oil, Production
was being taken from Annulus. In a closed power-fluid arrangement, the power fluid is returned
to the surface separately from produced fluids, requiring a separate tubing string. The use of a
closed power fluid system is limited as a result of the added initial costs and clearance problems
in small casing. Because the jet pump must commingle the power fluid and production, it cannot
operate as a closed power-fluid pump.

The most outstanding feature of hydraulic pumps is the “free pump” system. Fig. 1 shows a
schematic of a free hydraulic pump. Fig. 1a shows a standing valve at the bottom of the tubing,
and the tubing is filled with fluid. In Fig. 1b, a pump has been inserted in the tubing and power
fluid is being circulated to the bottom. In Fig. 1c, the pump is on bottom and pumping. When the
pump is in need of repair, fluid is circulated to the surface as shown in Fig. 1d. The positive-
displacement pump, the jet pump, and the closed power-fluid system previously shown are all free
pumps.
Fig: 1; Closed Power Fluid System
Surface facilities require a power-fluid storage and cleaning system and a pump. The most
common cleaning systems are settling tanks located at the tank battery. Cyclone desanders
sometimes are used in addition to settling tanks. In the last 40 years, wellsite power plants, which
are separators located at the well with cyclone desanders to remove solids from the power fluid,
have become popular.
 Feedback and Technical Suggestions

Several days after the Workover Operation was completed and well was put on production there
was still 90% water Cut and 10% which was clearly not favorable. According to my technical
knowledge and observance, the setting depth of the packer should be altered to increase pressure
differential packoff below the packer to increase the Oil production and decrease the water cut
significantly, keeping in mind the cost of this extra packer operation can save us huge expenditure
cost from another workover on this well for a long period of time which would definitely be a plus
for future corporate projects of POL. In the End I wish all the very Best to Pakistan Oilfields
Limited for further discoveries and intend to serve POL in future.