DELIQUIFICATION & REVIVAL OF OIL AND GAS WELLS USING SURFACE JET PUMPS Recent applications and experience

8 th European Conference on Gas Well De-liquification Groningen, 2013 DELIQUIFICATION & REVIVAL OF OIL AND GAS WELLS USING SURFACE JET PUMPS Recent applications and experience By: Sacha Sarshar,Caltec

CONTENTS; CAUSES OF LIQUID LOADING CHARACTISTICS OF FLOW THROUGH WELL BORE-FLOW REGIME MAP SOLUTIONS TO DELIQUIFY OIL OR GAS WELLS IMPACT OF REDUCING THE FWHP INTRODUCTION TO SURFACE JET PUMP (SJP) PERFORMANCE OF JET PUMP EFFECT OF LIQUIDS IN LP AND HP GAS, AND HOW TO COPE WITH IT BEST LOCATION FOR SJPS,ONSHORE AND OFFSHORE OPERATION AND CONTROL/INSTRUMENTATION HOW TO ASSESS THE PERFORMANCE OF THE SJP Slide 2

CONTENTS CONTINUED... HOW TO COPE WITH CHANGES IN HP OR LP PRODUCTION AND FLOW RATES HOW TO PREDICT PRODUCTION RATE AND INCREASE IN PRODUCTION DESIGN ISSUES; CODES,MATERIAL OPERATION ISSUES; - NOISE,TEMPERATURE,EROSION,CORROSION FIELD EXAMPLES ECONOMICS QUESTIONS AND ANSWERS Slide 3

EFFECT OF FIELD DEPLETION ON WELL BORE PRESSURE Inflow Parameters will change as the field depletes and the shape of the inflow performance curve will change, potentially due to factors like: Changes in relative permeabilities over time Increase in water production Reservoir compaction Closure of natural fractures Production below saturation pressures Gas is released from oil resulting an increase of GOR Condensate is dropping in the reservoir resulting a decrease of LGR condensate banking. Slide 4

Effect of field depletion on well bore pressure and production Increase of Non Darcy effect due to added turbulence Increase of effective stress (difference between the overburden and fluid pressures) Closure of near well bore micro fractures Closure of induced fractures (fracture conductivity reduction) Near wellbore damage Fines migration build-up, Screen plugging Sand production and build-up in well sump Scale build-up / salt deposition Slide 5

WELL FLOW PERFORMANCE PARAMETERS The well inflow rate is driven by: Reservoir pressure/pressure maintenance Well mechanical constraints (solid production, erosion, completion envelope, screen integrity, water / gas coning Back pressure on well (FWHP &FBHP) Flow regime within the well bore Phase envelope Mechanical skin (near wellbore damage, perforation skin, partial penetration skin, completion skin, sand control Non Darcy skin Well architecture ( tubing size, well depth, profile...) Facilities constraints (e.g. Water production capacity) Slide 6

MAIN CAUSES OF LIQUID BUILD UP IN WELLS Low velocity of gas High FWHP, dictated by downstream process system Multiphase flow through well bore, leads to flow regimes such as Churn flow, slugging etc,which affect both the hydrostatic head and frictional losses Effect of viscosity& density of liquids and gas Inclined & horizontal profile of wells contribute to G-L separation within the well bore and generation of slugs; liquid build up in pipelines could also aggravate the problem,increasing FWHP The flowing bottom hole pressure(fbhp) is the main factor affecting production, but FWHP is also a useful guide Slide 7

Superficial Liquid Velocity (m/s) Superficial Liquid Velocity (m/s) Dispersed Bubble Intermittent Stratified Wavy Annular Mist COMPARISON OF FLOW REGIMES IN HORIZONTAL AND VERTICAL PIPES Superficial Gas Velocity (m/s) Slug Bubble Annular Mist Froth V 5 m/s Slide 8

TYPICAL INSTANTANIOUS FLOW REGIME ASSOCIATED WITH MULTIPHASE FLOW 3 Slide 9

SEVERITY AND EXTENT OF LIQUID BUILD-UP HOW SICK IS THE PATIENT?! CASES WHEN LOWERING THE FWHP OR REGULAR SHUT- DOWN IS SUFFICIENT TO REVIVE THE WELL- EFFECTIVENESS AT WHAT FWHP/ FBHP? CASES WHEN AN INITIAL DELIQUIFICATION IS NEEDED,FOLLOWED BY OPERATION UNDER A LOWER FWHP,USING SURFACE JET PUMPS - SEVERAL OPTIONS EXIST FOR THE INITIAL DELIQUIFICATION SUCH AS USE OF FOAMING AGENTS OR USE OF DOWNHOLE SYSTEMS. CASES WHERE A DOWNHOLE SYSTEM /SOLUTION IS NEEDED,BUT REDUCING FWHP WILL ENHACE PRODUCTION Slide 10

SELECTION OF SUITABLE SOLUTION DEPENDS ON; SEVERITY OF LIQUID LOADING RESERVOIR PRESSURE WELL INFLOW CHARACTERISTICS AVAILABILITY OF HP FLUIDS IF SJP IS USED PLATFORM OR SITE CONSTRAINTS ECNOMICS Use of surface jet pumps is the simplest technique, provided there is sufficient source of motive flow Slide 11

SELECTION PROCESS FOR WELL DELIQUIFICATION Case1(Mild) Case 2(Medium) Case 3 (Sever) Lowering the FWHP by SJP is sufficient Well loaded, initial offloading is needed Downhole system needed SJP could enhance downhole system Lower FWHP by SJP After initial offloading Use SJP plus intermittent offloading Slide 12

COMMON REMEDIAL SOLUTIONS TO WELL DE-IQUIFICATION Regular gas blow down to atmosphere Lower flowing wellhead pressure ( use of jet pump technology or other methods) Well shut-in Intermittently Use of foaming agents/intermittent or continuous Tubing size modification/velocity string Artificial lift systems (Downhole) including downhole jet pumps Best solution is dictated by well status,resevoir characteristics, available source of energy, platform constraints and economic consideration Slide 13

INTRODUCTION TO SURFACE JET PUMPS Slide 14

Surface Jet Pump Technology Patented Universal Design Ejector / Jet Pump Some possible HP sources-; - HP WELLS (oil or gas wells) - COMPRESSOR RECYCLED GAS - HP GAS FROM PROCESS SYSTEM - A SINGLE PHASE (LIQUID) PUMP - HP LIQUID(OIL,WATER) Removable Nozzle Removable Mixing tube /Diffuser Slide 15

Pressure Velocity Jet Pump Flow Dynamics HP Nozzle Mixing tube Diffuser Discharge LP 1 2 3 4 5 6 7 8 HP Flow LP Flow Combined Flow 16

MAIN FACTORS AFFECTING THE PERFORMANCE ~ HP/LP PRESSURE RATIO ~ HP/LP FLOW RATIO ~ GAS/LIQUID RATIO(LP FLOW) (oil or gas production cases) Secondary factors; - Mol. weight - Temperature - Liquid in gas phase Slide 17

EFFECT OF LIQUIDS PRESENT IN LP GAS Gas as the motive flow 18

MULTIPHASE CHOKING IN JET PUMP : A CRITICAL FACTOR NOT COMMONLY KNOWN Slide 19

TYPES AND RANGES OF SJP APPLICATIONS Revival of dead wells (oil&gas wells)/ de-liquification Boost production from oil or gas wells Boost pressure of LP gas in a process system De-bottleneck compressors Eliminate intermediate compressors Prevent HP wells impose back pressure on LP wells Prevent flaring LP gas Others to meet process requirements Slide 20

SOME FIELD EXAMPLES Slide 21

WELL REVIVAL SPILAMBERTO FIELD,ITALY Source of HP flow; HP gas well Benefits; Gain in gas production by 23,000 sm3/d (0.812MMscfd)For almost two years Slide 22

BP Inde, UKCS Solution ; Used HP recycled gas to power SJP, to draw-in low pressure satellite Shell wells Benefits Used 68 MMscfd of gas from LP Shell wells into the exiting facilities. Production increased by 25% Increased intake capacity of compressor Davy Line Bessemer Separator Compressor Jet Pump Export De- bottlenecked exiting compressor Low Pressure Gas Wells Dp Removed liquids from LP wells and the pipeline Award winning solution Juliet Kilo Subsea Line Slide 23

Solution ; HP gas from the existing compressor on recycle used to power the jet pump Chevron, USA (GOM) Benefits Lowered arrival p at the platform by 200 psi Increased gas velocity and improved flow regime in wells Removed bulk of liquids in the pipeline, causing a further 140psi drop at the wellhead (340 psi total pressure drop). Production increased by 24%. 2.5 Bscf of otherwise lost reserves recovered. Flow delivered at higher pressure to compressor suction increased compressor throughput. (Php/Plp=4.9.Qhp/Qlp= 2.11,Pd/Plp=2 ) process 200 psig 400 psig 7.4 MMSCFD 850 psig 27 miles Ejector 40MMSCFD Recycle gas GEMINI Sub sea manifold Export Sales 1250 psig Slide 24

Groet field surface jet pump Caltec Jet Pump HP Well 15 km Pipeline Compressor Drying unit LP Well At eductor: Pressure ratio HP/LP = 5 Flow ratio HP/LP = 3 Gas liquid ratio (m3 liquid per 1 million m3 gas) HP well 65 LP well 30 Slide 25

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Bergen Drying Facility surface jet pump Caltec Jet Pump Drying unit HP Well 15 km Pipeline Compressor LP Well Case 1 At eductor: Pressure ratio HP/LP = 4 Flow ratio HP/LP = 2.3 Case 2 At eductor: Pressure ratio HP/LP = 10 Flow ratio HP/LP = 7 Slide 27

Production optimisation by surface jet pump K5ENC T = well 1 142.39 26/05/2008 09:49:03.893 50.86 250 100 50 50 50 50 100 25.81 8.26 After ten moths 1.44 2.75 94.99 200 150 maximum stable flow reached using SJP K5ENC_QV101T.PV 197.11 knm3/d K5ENC_TT_101_T 58.78 C K5ENC_PT_101_T 24.18 Bar K5ENC_PT_103_T 10.11 BAR K5ENC_PT_105_T 4.54 BAR K5ENC_PT_107_T 11.87 BAR K5ENC_ROCV_101_T_SP 0.00 % 100 50 Re-start of the well after a closed-in period of two years, with reduced FTHP from 40 to 26 bar using 0 0 0 0 0 0 0-336 -308-280 -252-224 -196 days -168 14/01/2008-140 16:47:42.74546-112 -84-56 -28 Flow well T Analog value Analog value Analog value Analog value Analog value Return set point SJP 28

Alaska, USA Solution ; Used HP gas from long-string to offload the well via surface jet pump Benefits; Used available wasted energy to off-load the well. Total production from well raised to 7 MMscfd from 2.5 MMscfd. Production increased by 180%. Liquid loading cycle was reduced, hence more sustainable production gain. HP Gas Gas Jet Pump LP Wet gas Dual Completion Well

ANGSI FIELD MALAYSIA REVIVAL OF 16 GAS WELLS Slide 30

OIL PRODUCTION - WELLCOM BOOST SYSTEM Php/Plp=7.9 Qhp/Qlp=3.23 HIGH PRESSURE GAS JET PUMP GAS Pd/Plp=1.46 I-SEP GAS Commingler TO PIPELINE LOW PRESSURE OIL WELLS LIQUID LIQUID LIQUID COMMINGLER BOOSTER PUMP Slide 33

WELLCOM SYSTEM ; OFFSHORE MALYSIA Lift gas as the motive flow+ A booster pump to boost the liquid phase HI-SEP Jet pump I-SEP Booster Pump Slide 34

COMPACT SEPARATOR TO SEPARATE GAS FROM LIQUIDS I-SEP Slide 35

SIZE MATTERS! I-SEP HI-SEP I-SEP Slide 36

On-Shore, Italy HP oil well as the source of motive flow Benefits Backpressure reduction on the wells of up to 11 bar was achieved. Simple to operate with no rotating parts Net extra oil gain of 350 bbl/d with additional 1.5 MMscfd of gas was achieved. I-SEP Multi Awards winning solution Slide 37

WELLCOM APPLICATION: Cendor, Malaysia WELLCOM BOOSTING SYSTEM Wellcom oil system ; multiphase HP wells were used to bring in closed low pressure oil wells. I-SEP Benefits Used available energy from HP well 20% pressure boost for LP wells. Increased production by over 35% ( 150 b/d ) Improved flow regime in well bore, stabilising production. FTHP 360 psia FROM HP WELL 3612 b/d I-SEP FROM LP WELL GAS LIQUID FTHP 69.6 PSIA JET PUMP COMMINGLER 450 b/d+0.138 MMSCFD TO PROCESS SYSTEM 87 psia Dp FWHP; 17.4 psi Slide 38

06:00:00 06:57:00 07:54:00 08:51:00 09:48:00 10:45:00 11:42:00 12:39:00 13:36:00 14:33:00 15:30:00 16:27:00 17:24:01 18:21:02 19:18:02 20:15:02 21:12:02 22:09:02 23:06:02 00:21:00 01:18:01 02:15:01 03:12:01 04:09:01 05:06:01 06:03:01 07:01:54 07:59:32 Record of flowing bottomhole pressure before and after installing the jet pump system Flowing bottomhole pressure (FBHP) Dp at wellhead=17.4 psi 1200 1150 1100 1050 1000 950 900 850 800 750 700 FBHP Dp =140 psi Slide 39

USES OF THE TEST SEPARATOR Well testing Well testing/metering at reduced FTHP Well revival

COMMERCIAL - IN - CONFIDENCE WELL REVIVAL USING THE TEST SEPARATOR APPLIES TO BOTH GAS AND OIL WELLS HP Gas Well Revival Gas Jet Pump Well Revival To vent or flare (option3) HP Liquid Liquid Jet PUMP (Option 2) Test Header Gas LP Wells Production Header M Test Separator M Liquid Closed drain (option 1) Caltec Limited 2010. This information contains Caltec s proprietary intellectual property and is not to be disclosed to a third party without the pri or written consent of Caltec Limited. Caltec Limited, Medway Court, Cranfield, Bedfordshire MK43 0FQ United Kingdom : Tel: +44 (0)1234 750144 Email: info@caltec. com www.caltec.com Presentation title 41 18 October, 2013

Silencers Skid Silencers Skid Gas Jet Pump Discharge Silencer To Pressure Relief Line HP Well PT PT PT TT Jet Pump Skid LP Silencer PT Production Cooler 14 Sub Sea Line to CPP Well Revival Jet Pump PT TT PT Discharge Silencer PT Alternative use of booster pump Test Header Jet Pump Skid LP Silencer Commingler LP Wells Test Cooler M Test Separator Production Header ) M M Slide 42

Produced Oil Flow rate EFFECT OF SJP COMBINED WITH GAS LIFT INCREASED PRODUCTION SJP Gaslift injection system Wellhead HP Well production Surface To downstream process Additional production Wellcom system & Production via Tubing Gaslift injection Well Gaslift injection Lift gas Gaslift Injection Flowrate Pay zone Pay zone Wellbore Slide 43

EFFECT OF COMBINED GAS LIFT AND SJP Depth (ft) Lift Gas 0 MMscfd 0 MMscfd 2 MMscfd 2 MMscfd 4 MMscfd 4 MMscfd 0 Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble 700 Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble 1425 Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble 2125 Slug Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble 2850 Slug Slug Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble 3550 Slug Slug Dispersed Bubble Dispersed Bubble Dispersed Bubble Dispersed Bubble 4275 Slug Slug Slug Dispersed Bubble Dispersed Bubble Dispersed Bubble 4975 Slug Slug Slug Slug Dispersed Bubble Dispersed Bubble 5700 Bubble Flow Slug Slug Slug Dispersed Bubble Dispersed Bubble 6400 S.P. Turbulent S.P. Turbulent Slug Slug Slug Dispersed Bubble 7125 S.P. Turbulent S.P. Turbulent Slug Slug Slug Slug 7825 S.P. Turbulent S.P. Turbulent Slug Slug Slug Slug 8546 S.P. Turbulent S.P. Turbulent Slug Slug Slug Slug 9246 S.P. Turbulent S.P. Turbulent Bubble Flow Bubble Flow Slug Slug 9971 S.P. Turbulent S.P. Turbulent S.P.Turbulent S.P.Turbulent Slug Slug 10696 S.P. Turbulent S.P. Turbulent S.P.Turbulent S.P.Turbulent Slug Slug FWHP (psig) 300 150 300 150 300 150 BHP (psig) 3940 3825 3785 3738 3744 3714 Oil flow rate (bbl/d) 2869 3440 3642 3875 3845 3998 dq (bbl/d) - 571 773 1006 ** 976 ** 1129 Water flow rate (bbl/d) 3804 4560 4827 5137 5097 5300 Gas flow rate (MMscfd) 2.3 2.752 2.91 3.1 3.076 3.1984 Slide 44

dq (bopd) 1400 1200 1129 1151 1114 1000 1006 976 1041 1026 800 773 Gas Lift Only 600 571 400 Gas Lift + SJP 200 0 0 Comparison of Gas Lift and use of SJPs and Effect on Production Increase 0 1 2 3 4 5 6 7 8 9 Lift Gas (MMscfd)

USE OF SJP TO RAISE THE PRESSURE OF LIFT GAS FOR INCREASING GAS INJECTION DEPTH SJP Recycle Gas lift injection system Wellhead Well production To production process Surface Injection Gas Gas lift Compressor Gas lift injection valves Liquid level Pay zone Pay zone Wellbore

SOME ISSUES RELATED TO DOWNHOLE JET PUMPS Slide 47

Effectiveness of downhole jet pumps for well revival Traditionally liquid has been the motive flow. Effective mainly for maintaining production from shallow oil wells with low GOR Effective in lifting heavy oil using a diluent fluid to reduce viscosity(vega field- Agip) Limited experience in using gas as the motive flow. HP gas is not effective in boosting the bottomhole pressure Gas can be injected at bottomhole as lift gas via a number of specially designed nozzles to generate a good mixture. Slide 48

DOWNHOLE JET PUMP-GAS AS MOTIVE FLOW Slide 49

FACTORS TO CONSIDER FOR USE OF DOWNHOLE JET PUMPS PRODUCTION (OIL OR GAS) GOR AND GVF WELL DEPTH AND PROFILE WELL FLUIDS STAUS AT BOTTOMHOLE(GVF) FOR OIL WELLS USE OF JET PUMP AND HP GAS AS THE MOTIVE FLOW WILL BE BENEFICIAL-IN THIS CASE ALSO CONSIDER USE OF MULTI- NOZZLE GAS INJECTION Slide 50

NOISE JT EFFECT DESIGN &OPERATION ISSUES INSTRUMENTATION CONTROL CHANGE OF INTERNALS PERFORMANCE MONITORING/ACCEPTANCE MATERIALS/CODES Slide 51

In-line Acoustic silencers for LP and Discharge Side Streams Presentation title 52 18 October, 2013

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RECOMMENDED INSTRUMENTATION FOR SURFACE JET PUMP SYSTEM COMMERCIAL-IN-CONFIDENCE HP P T JET PUMP P T P T Recommended Instrumentation for Jet Pump System MEASURING THE LP GAS FLOW RATE IS RECOMMENDED Caltec Limited 2011. This information contains Caltec s proprietary intellectual property and is not to be disclosed to a third party without the prior written consent of Caltec Limited. Caltec Limited, Medway Court, Cranfield, Bedfordshire MK43 0FQ United Kingdom : Tel: +44 (0)1234 750144 Email: info@caltec.com www.caltec.com

PERFORMANCE OF THE SJP AND EFFECT OF HP AND LP PRESSURE AND FLOW RATE Nozzle performance SJP response to LP flow rate Well performance VS SJP performance Slide 55

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Inlet LP pressure (barg) Caltec ref: 2215 15/05/12 Rev C 55 COMMERCIAL-IN-CONFIDENCE Base Case Surface Jet Pump (SJP) Performance LP pressures vs. LP intake flow rates and the effect of liquid on SJP performance 50 SJP Discharge Pressure = 50 barg 45 Double LP liquid flow rate: LP = 24.65 MMscfd @ 46.8 barg + 4432 bbl/d liquid 40 35 SJP design point: HP = 60 MMscfd @ 100 barg LP = 24.65 MMscfd @ 41.8 barg + 2216 bbl/d liquid Discharge = 50 barg 30 Operating curve 1 No LP liquid flow rate: LP = 24.65 MMscfd @ 36.8 barg + 0 bbl/d liquid 25 20 Maximum flow through SJP before choking 0 5 10 15 20 25 30 35 Inlet LP flowrate (MMscfd) HP=60 MMscfd @ 100 barg Double LP liquid flow No LP liquid flow Caltec Limited 2012. This information contains Caltec s proprietary intellectual property and is not to be disclosed to a third party without the prior written consent of Caltec Limited. Caltec Limited, Medway Court, Cranfield, Bedfordshire MK43 0FQ United Kingdom : Tel: +44 (0)1234 750144 Email: info@caltec.com 18 www.caltec.com October, 2013

Production pressure Drawdown (Psi) Original tangent line for PI at DD1 DD1 Well performance curve In different years Jet pump performance Pressure Operating point DD2 Production increase IPR New tangent line for PI Production rate CHANGES TO PI AT DIFFERENT FWHPs HOW THE PERFORMANCE OF THE WELL AND THE SJP MATCH KEY; DD1 & DD2; DRAWDOWN 1&2

MATERIALS/CODES/ORIENTATION/LOCATION MATERIALS BASED ON FLUIDS COMPOSITION AND COMPATIBILITY WITH PIPE WORK (CS,STAINLESS STEEL,DUPLEX..) CODES; PIPELINE CODE(B31.3),PED,LOCAL/CLIENT REGULATIONS. ORIENTATION; HORIZONTAL,VERTICAL,INCLINED LOCATION; DICTATED BY SITE CONDITIONS Slide 59

Gas Jet Pump System Skid availability 4 to 6 weeks from order ~ 1.5 m Jet Pump Skid ~ 4 m ~ 2.4 m Silencers Skid ~ 3.5 m ~ 2.4 m ~ 1.5 m Motive fluid HP Gas HP Inlet pressure 50-140 bar (*) LP Pressure boost 5-20 bar (*) Vent Jet Pump Vent Discharge Silencer Pressure rating ANSI 1500# CTP HP Gas Drain Tie-in Point (CTP) Material LTCS NACE CTP sizes (Jp-6) HP 3, LP 4, Discharge 6 Drain LP Gas LP Silencer CTP sizes (Jp-10) CTP sizes (Jp-16) HP 6, LP 8, Discharge 10 HP 8, LP 12, Discharge 16 Drip Pan

ECONOMICS; USE OF SURFACE JET PUMPS Low capital cost Capital recovery within a few weeks to a few months Short delivery period ; 8 to 14 weeks Practically no operation cost /passive operation Practically no maintenance cost Alternative solutions more complex and costlier Rental option available to minimise capital cost Short life period is economically acceptable Could enhance what is achieved by other deliquification systems Slide 61

CLOSING REMARKS Simplicity & cost effectiveness makes jet pump solutions very attractive & economical A good tool for initial well deliquification before the situation worsens In addition to economic benefits, eliminating intermediate compressors, deferring compressor upgrading or reducing liquid hold up in pipelines are additional benefits The system can work well with other deliquification solutions Installing tie-in points during shut downs simplifies installation Rental option justifies very short operation life Slide 62

THANK YOU QUESTIONS WELLCOME Slide 63