Lacq Field Final
Lacq Field Final
Lacq Field Final
KUMASI, GHANA.
COLLEGE OF ENGINEERING
DEPARTMENT OF PETROLEUM ENGINEERING
Topic: Design the well completion phase for the Lacq Field taking into account,
Sand Production from the Field
APRIL, 2024.
GROUP MEMBERS
Lacq, near the southern edge of the Aquitaine basin, is France's most important gas field.
Hydrocarbons are trapped beneath two unconformities—shallow Lacq (pre-Tertiary) produces
oil at 2,100-2,300 ft (640- 700 m), and deep Lacq (pre-Aptian) produces gas at 11,650-13,300 ft
(3,530-4,060 m). The field is 10 mi (16 km) long, 6 mi (10 km) wide, and covers 25,000 acres
(10,000 ha.); gas production of 700 million ft3/day comes from 36 wells.
Trapping is primarily anticlinal, although porosity and permeability have considerable
influence; the highest values are on the crest of the anticline. The anticline was formed
progressively in the course of deposition of the Cretaceous and Tertiary, as were many other
structures in the Aquitaine. The present structure at Lacq shows 4,500 ft (1,400 m) of closure at
the top of the Neocomian; the south flank is considerably steeper than the north.
The gas reservoir is divided into an upper calcareous part (650-1,000 ft or 200-300 m thick)
comprising Neocomian and Valanginian (Early Cretaceous), and a lower dolomitic part (latest
Jurassic; 500-650 ft or 150-200 m thick). The porosity range for the upper part is 0.1 to 6
percent, with permeability less than 0.1 md; porosity in the lower part is 5-6 percent and
permeability is 0.1 to a few millidarcys. Fracturing is very important to both parts of the
reservoir. The initial reservoir pressure was 9,670 psi at 13,120 ft (4,000 m) and the
temperature was 260°F (130°C). Abnormally high pressure indicates a closed reservoir of
constant volume, without a water drive.
Lacq gas is sour; the percentage of H 2S is 15.3% of sulfur. It constitutes important sulfur
reserves and production, and France now ranks third among western sulfur producers.
GRANTING OF PERMIT FOR LACQ FIELD
LEGAL REQUIREMENTS TO OBTAINING A PERMIT
In France, the legal requirements to obtain an exploration permit for hydrocarbons include the
submission of an application for an exclusive research permit (permis exclusif de recherches or
"PER") to the Minister in charge of mines. The application must include documentation proving
the identity and financial and technical capacities of the applicant, technical plans for the
proposed permit area, the schedule of planned work, financial commitments, maps, and
environmental impact studies. The applicant must demonstrate that it has the financial
capacities to carry out the works. The PER application is published, and following the
publication, the permit application for the area mentioned in the application is opened for
bidding. The PER is granted for a period of a maximum of five years and can be renewed twice
without going through the bidding process. The PER holder must maintain their financial and
technical capabilities in light of which the permit was granted. Additionally, the permit holder
must notify the Minister in charge of mines in certain cases. The environmental, economic, and
social analysis is taken into account to deciding to grant or extend an exclusive exploration
permit. The public inquiry procedure for the concession application is conducted to collect the
important points that the public wishes to make known and to see developed during the next
work authorization applications.
The instruction of the mining title makes it possible to verify that the easements and constraints
present on the surface of the title are well recorded or taken into account in the study of impact.
PROCESSING OF DOCUMENTS-DURATION
An exclusive exploration licence is granted for a maximum of five years and can be renewed
twice, for five years each time (Article L. 122-3 and Article L. 142-1, Mining Code).
Mining concessions(Production permits) have a maximum initial length of 50 years and can be
extended several times, for a maximum of 25 years each time.
Decree No. 2018-511 dated 26 June 2018 applying Article L. 132-12-1 of the Mining Code to
hydrocarbon mining concessions provides a framework for the conditions under which the
operator of a hydrocarbon mine may submit a project to convert part, or all, of the site it
operates within five years before the end of the concession, in particular for the purposes of
operating geothermal energy or renewable energy production facilities. In all permit processing
takes a period of 30 to 40 days.
The bidding process for an exploration permit in France involves the submission of an
application for an exclusive research permit (permis exclusif de recherches or "PER") to the
Minister in charge of mines.
The application must include documentation proving the identity and financial and technical
capacities of the applicant, technical plans for the proposed permit area, the schedule of planned
work, financial commitments, maps, and environmental impact studies. After the initial
application, a permit application for the area mentioned in the application is opened for bidding
for a limited period of time. Contending applications may be presented and are assessed by the
Minister in the same way as the initial application. The Minister may propose dividing the area
in question into several blocks and grant several PERs. He may also propose that the applicants
have the permit jointly granted. The granting of the permit takes the form of a ministerial order
("arrêté ministeriel"). The PER is granted for a period of a maximum of five years and can be
renewed twice without going through the bidding process. The PER holder must maintain their
financial and technical capabilities in light of which the permit was granted. The permit holder
must notify the Minister in charge of mines in certain cases. The public inquiry procedure for
the concession application is conducted to collect the important points that the public wishes to
make known and to see developed during the next work authorization applications. The
instruction of the mining title makes it possible to verify that the easements and constraints
present on the surface of the title are well recorded.
3. Engage with Authorities: Contact the Directorate General for Energy and Climate
(DGEC) within the Ministry of the Economy, Finance, and Recovery to discuss the set
exploration plans and seek guidance on the application process.
5. Technical and Environmental Review: Authorities will then review the technical and
environmental aspects of the application, consulting with experts as needed. This may
involve consultations with environmental agencies, geological experts, and other
relevant stakeholders.
6. Public Consultation (if required): Engage with local communities and stakeholders to
gather input and address concerns.
7. Approval and Permit Issuance: If the application meets criteria and standards,
regulatory authorities will grant the exploration permit, outlining specific terms and
conditions that must be followed without fault. Sanctions are also stated to make the
party aware of the penalties they will be facing if they do not adhere to the terms and
conditions stated unto them.
8. Financial Obligations: all financial obligations associated with the permit, such as
application fees or security deposits must be settled in full before permits are released.
9. Compliance and Reporting: Adhere to permit terms and provide regular reports on
exploration activities and environmental monitoring to authorities.
10. Renewal and Extension: Exploration permits are typically granted for a limited
period, with the possibility of renewal or extension if further exploration is required.
Obtaining a production permit for petroleum activities in France involves meeting some
requirements and going through a structured application process. The specific details and
requirements can vary based on the nature of the project, environmental considerations, and
government regulations.
4. Financial Capability
Demonstrate financial capability to fund and execute the production activities. This may involve
providing financial statements, guarantees, or other evidence of financial stability.
5. Technical Competence
Showcase technical expertise and competence in petroleum production. This may include
providing details about the qualifications and experience of the team involved in the project.
Develop comprehensive safety and emergency response plans to address potential risks
associated with production activities. This includes measures to prevent accidents and respond
effectively in case of emergencies.
7. Regulatory Compliance
Ensure compliance with all relevant regulations and standards governing petroleum
production. This includes adherence to safety, environmental, and operational guidelines set by
the regulatory authorities.
Engage with local communities and stakeholders to address concerns and incorporate their
feedback into the production plan. Community support and cooperation are essential for a
successful production permit application.
9. Application Submission
Prepare a detailed application for the production permit, including all required documentation.
Submit the application to the relevant regulatory authorities, such as the Directorate General for
Energy and Climate (DGEC).
Fulfill any financial obligations associated with the production permit application. This may
include application fees, security deposits, or other financial commitments.
If the application meets the necessary criteria and environmental standards, the regulatory
authorities will grant the production permit. The permit will outline specific terms and
conditions for conducting production activities.
2. The PER application is published in the French Official Journal (for PERs related to
deposits other than hydrocarbons) and in the French and European Union Official
Journals for PERs related to hydrocarbons. Contending applications may be presented
during a limited period of time and are assessed by the Minister.
3. The issuance of a mining title (such as a PER or a concession) by the Minister of Mines
does not authorize the holder to start drilling without the prior approval of the
Department Prefect. The public inquiry procedure for the concession application is to
collect important points from the public and to be taken into account during the next
work authorization applications.
4. The instruction of the mining title includes consultation of services and the military
authority to verify easements and constraints present on the surface of the title. The
future operator is responsible for taking into consideration the remarks made for the
development work of the oil field.
5. Environmental, economic, and social analysis are taken into account when deciding to
grant or extend an exclusive exploration permit or the decision to grant, extend, or
renew a concession.
6. The SEVESO directive, which was adopted on June 24, 1982, and its subsequent
revisions, serve to identify risks associated with certain dangerous industrial activities,
the means of prevention, and the measures necessary to cope with the occurrence of an
accident.
The SEVESO ranking of facilities depends on the total amount of hazardous materials
stored on the site, and it provides a legal and documentary framework for Major
Accident Prevention Policy, Safety Management System, and revision of Hazard
Assessment Studies.
These points are derived from the Mining Code and various laws and regulations applicable in
France. A sample decree of a permit is provided in the appendix below.
Petroleum exploration involves the search for underground oil and gas deposits to
assess their commercial viability for extraction. The exploration process relies on
geological principles and methods to locate areas with the potential for economic
deposits.
Exploration activities aim to identify reservoirs of oil and gas by analyzing the
geological structures, rock formations, and other subsurface characteristics. The
exploration process involves using various tools and techniques to survey the earth and
locate areas where oil may be present.
GEOLOGICAL HISTORY
The geological history of the LACQ gas field involves multiple factors that have
influenced its evolution. The field is located in a compound oil-gas reservoir with a
complex fluid manipulation history. The depletion of the gas reservoir and the injection
of wastewater have been identified as key factors controlling the seismicity in the area.
The geodynamic evolution of the Pyrenees and the south Aquitaine basin, including
rifting, extreme crustal thinning, and mantle exhumation, has also played a significant
role in the diagenesis and petrophysical properties of the reservoirs. The field exhibits a
pattern of high-density fracturing, mainly oriented WNW-ESE, and the seismicity is
correlated with the orientation of pre-existing faults. The overall geodynamic setting,
including the Aptian hyperextension and the Eocene convergence, has influenced the
types, sources, and circulation pathways of diagenetic fluids in the reservoirs.
The LACQ gas field is located in southwest France and is characterized by a complex
geological structure.
The field is an anticlinal reservoir with a high density of fracturing, mainly oriented
WNW-ESE (Bardainne et al., 2008) . The seismicity in the LACQ field is closely related to
the gas recovery process, with seismic events occurring above the gas reservoir and
correlating with the orientation of pre-existing faults (Herquel & Wittlinger, 2621) . The
seismic activity is concentrated where fault orientation is consistent with the
poroelastic stress perturbation due to gas recovery, while quiescent areas are observed
where the reservoir roof is perpendicular to the faults. The seismicity in the field
exhibits a spatial migration from the center to the boundaries of the reservoir,
indicating a temporal evolution of the distribution of seismicity (Le Hello et al., 1998) .
The geochemical characterization of gases in the Lacq field shows similarities between
the natural gas and the fuel gas used in the field, with methane as the main
compound (Gal et al., 2019) .
The LACQ gas field in France was discovered in 1951 through geophysical methods. The
exploration phase involved several companies. Compagnie Generate de Geophysique
conducted a reconnaissance survey in 1948 using reflection shooting, which revealed
the Lacq structure. The Societe Nationale des Petroles d’Aquitaine (SNPA) was
responsible for the production and exploitation of the gas field. The field is located just
north of the major overthrust separating the Aquitaine basin from the Nord Pyrenees
foredeep. The gas is trapped in a roughly elliptical anticlinal structure, and production is
possible due to intense fracturing on the upper part of the structure. The field covers
25,000 acres and has 31 wells for gas production. The gas reservoir consists of upper
Jurassic dolomitic strata, Purbeckian-Wealdian sandstone, and Neocomian limestone
and dolomite. The gas has a 15.3 percent H2S content and occurs under strong pressure.
Gas Reservoir: The LACQ gas field is situated within the Aquitaine Basin's
structural highs, particularly in anticlinal structures where porous and
permeable sandstone reservoirs are present. Natural gas accumulates in these
reservoir rocks, which act as traps, sealed by impermeable layers of shale or
mudstone above.
LITHOLOGY OF RESERVOIR ROCKS
Lithology is the study of the general physical characteristics of a rock. Reservoir rocks
can be divided into two lithological types, namely, sandstone and carbonates.
Sandstones are formed from grains that have undergone sedimentation, compaction
and cementation. Carbonates are principally formed on carbonate platforms by a
combination of biogenic and abiogenic processes.
Sandstone Carbonates
Usually composed of silica grains Two major types are limestone
(mainly quartz and some (CaCO3) and dolomite (CaMg(C
feldspar). O3 ¿ .
Consolidated (the rock is Pore space consist of inter –or
combined as one unit) or loosely intra-granular porosity as well as
consolidated. areas of dissolution (vugs) and
May contain swelling clays ( clays fractures
have negative on reservoir
quality).
The lithology of the Lacq Field is characterized by a sequence of rock formations that
are crucial for petroleum exploration in that area. The Lacq Field is known for its
geological composition, which includes various types of rocks such as sandstones,
shales, and carbonates. These rock formations play a significant role in the
accumulation and extraction of petroleum resources within the Lacq Field.
Figure 1. Lithology of the Lacq filed
In this stage, we employ techniques from the traditional walk over survey, studying
outcrops and landforms to the use of geophysical techniques and remote sensing
methods, such as aerial photography and satellite imagery. A geological or geophysical
map typically superimposes the surveyed extent and boundaries of geological units on a
topographic map, together with information at points such as (measurements of the
orientation of bedding planes) and lines (such as the intersection of faults with the land
surface). The geological maps and reports created through the survey generally aim for
geographic discontinuity and completeness in establishing the spatial patterns of near–
surface rock units.
Figure 2. Geological cross section of the Lacq field
After collecting our data, we then compare the data with existing models, theories and
hypotheses and test our predictions and interpretations to see if they define a
petroleum reservoir system. A petroleum system consists of different geological
components needed to generate and store hydrocarbons. These components are;
Source rock: is the rock containing organic matter in sufficient quantity and is
under suitable conditions for the formation of hydrocarbons
Reservoir rock: the rock that can store hydrocarbons in its pores.
Migration pathway: path is the pathway that the hydrocarbons take to move
away from the source to the point where they can find a suitable trap
Trap: A trap is a configuration of rocks, ensuring the hydrocarbons are stored in
it. Traps can be structural, stratigraphic, or a combination of both.
Figure 3. Geological components needed to generate and store hydrocarbons
Geophones are crucial tools in seismic surveys, used to detect and record ground
vibrations caused by seismic waves. The principle behind geophones lies in their ability
to convert ground motion into electrical signals. When seismic waves pass through the
Earth's subsurface, they cause the mass within the geophone to move. This movement
induces a relative motion between a coil of wire and a magnet within the geophone,
generating a voltage signal in the coil. This voltage signal is then recorded and used to
create seismic profiles that help geologists analyze subsurface structures and identify
potential oil and gas reservoirs.
Figure 4. Image of a seismic survey using a geophone
The LACQ gas field is a 20-km long anticlinal reservoir constituted by lower cretaceous
and upper Jurassic limestones, sealed under ductile cretaceous marls. The anticline is
oriented WNW-ESE and dome culminates at a depth of 3200m.
The seismic survey of the LACQ gas field has provided key findings regarding potential
reservoir zones. The survey revealed a pattern of high-density fracturing mainly
oriented WNW-ESE, with seismicity occurring above the gas reservoir. The seismic
activity correlates with pre-existing faults' orientation, indicating poroelastic stress
perturbation due to gas recovery. The seismicity is quiescent in areas where the
reservoir roof is perpendicular to the faults. The seismicity distribution also exhibits a
spatial migration from the centre to the reservoir's boundaries. The entire field is
strained, but deformation is seismically expressed only where faults are parallel to the
isobaths of the reservoir roof. This deformation pattern provides insights into the
behaviour of the gas field and suggests potential large structural or structural and
lithological traps.
Three commonly employed methods for estimating the gas in place (GIP) are the
volumetric method, the material balance method, and the Monte Carlo probabilistic
method. In this study, we present our GIIP estimates for the Lacq Field using these
approaches.
VOLUMETRIC METHOD
GIIP = (43560×A×h×Φ×Sg)/Bg
Where;
Φ is the porosity
We obtained a preliminary GIIP estimate of 260.17 Gm3 for the Lacq field.
PROBABILISTIC METHOD
Table x indicates the assumed distributions for each input parameter for the monte
Carlo picture compared to a single fixed value simulation. By incorporating this
probabilistic approach, we obtained a range of potential outcomes for the gas in place,
allowing us to assess the uncertainty associated with our estimates.
Parameter: Distribution:
Area Normal
Net Pay Thickness Normal
Porosity Triangular
Water Saturation Uniform
Formation Volume Factor (Bo or Bg) Normal
Table 1. Assumptions of Parameter Distributions for Monte Carlo Simulation
The Monte Carlo simulation results indicated a probabilistic range for the gas in place in
the Lacq field. The P10, P50 (median), and P90 values represented the 10th, 50th, and
90th percentiles of the simulated outcomes, respectively.
The P50 estimate, or median, indicates the most likely or expected value and
corresponds to 447 Gm3.
The P90 estimate, representing a more conservative scenario, suggests a
potential gas in place of 174 Gm3.
Refer to Appendix A for the full Monte Carlo simulation report using the crystal ball
software.
After considering the amount of gas in place, we decided to complete our wells and start with
production. Well completion is a critical phase in the lifecycle of an oil or gas well which
involves the process of preparing a well for production after drilling has been completed.
This critical drawdown corresponds to a maximum gas flow rate of 6.313 MMscf in
order to prevent sand production. This is not feasible due to the following reasons:
1. The minimum economically viable flow rate is 8.0627 MMscf. Any lesser flow rates
will result in losses.
2. It presents the challenge of setting a bottomhole flowing pressure of about 4950 psi,
which requires a wellhead pressure of 4350 psi. This is impractical.
Economic limit = 228310 m3 = 8.0627 MMscf
Therefore, the critical flow rate would be exceeded, indicating that there will be sand
production. As such, sand control measures need to be put in place.
A liner is a casing string that does not go to the surface. This particular completion does
not offer any sand control capability but is included here to introduce the concept of a
liner. As we can see from the figures below, the liner does not go to the surface but is
hung from a liner hanger.
The cemented liner completion has many of the advantages of a Cased and Perforated
Completion but at a reduced cost. Because the liner in this completion is cemented in-
place,
They are effective against production sand along with hydrocarbons during
recovery. During production, the fluids flow through the perforation in the liner
but sand grains are too big to pass through and are retained in the formation as a
result. Thereby preventing inflow of sand into the wellbore which may cause
damage to equipment downhole.
Slotted liners do not require complex installation techniques. It has simple
installation and requires minimal extra equipment.
Compared to other sand production control equipment, slotted liners are
relatively cost effective.
Limitations
1. Reservoir zones are open to flow at the same time and as a result slotted liners
are not very effective for zonal isolation.
2. The tubing of the liner is metallic and as such subject to corrosion over long
periods. When the holes corrode, they may become loose and sand production
may occur after all.
Slotted liners are suitable for wells with a simple producing zone or where zonal
isolation is not vital, but sand production might be a headache.
Stand-alone screens (SASs) in open hole can provide highly reliable sand control
completions at a lower cost and with less operational complexity than other open hole
sand control completions and they can provide long-term productivity performance
comparable to other open hole completions when applied in the right environment with
the right procedures.
Prepacked sand screen contains perforated base pipe, inner and outer screen jackets
and graded sand between the jackets. It is a modification of wire wrapped screen which
is used in well sorted sand or stand-alone completion. Graded sand, with or without
resin coating, is considered as a filter for reservoir particles.
Figure 16 Prepacked Screen
Having been first introduced in 1999, expandable screens are a relative newcomer to
sand control (Phillips et al., 2005)
Advantages of expandable screens:
A tight seal and effective sand control is provided, even in deviated or irregular
shaped wellbores.
The screen forms a barrier against sand production while allowing fluid flow
from the reservoir into the wellbore.
The expanded screen provides mechanical support to the surrounding
formation.
Disadvantages expandable screens:
Expandable screens are more complex and expensive as compared to traditional
sand control methods such as slotted liners or gravel packing.
May not be suitable for all wellbore conditions or formations.
It involves pumping a sand suspension into the annular space between the borehole
wall and a cylindrical screen to create a proppant filter. Factors such as carrier fluid
viscosity, density, and leakage rate can influence the packing length and efficiency.
It helps prevent reservoir sand production, which can lead to equipment damage
and well integrity issues.
It maintains high oil production for a long time, ensures wellbore stability, and
prevents sand production.
Gravel packing also improves the efficiency of sand control in horizontal wells,
leading to higher migration velocity and volume fraction of gravel.
Additionally, gravel packing with oil-swelling rubber particles can prevent the
formation of void spaces in the gravel pack, maintaining pack integrity and
efficiency.
Disadvantages of Gravel Packing
One of the challenges is the potential for completion failure due to erosion of
screens caused by localized high-flow situations.
Another disadvantage is the difficulty in achieving a complete annular gravel
pack in highly deviated wellbores, which can result in additional skin and poor
proppant packing.
Additionally, conventional gravel packing in horizontal wells can face issues
such as high sand bed height and poor gravel migration.
After fracturing a gravel pack is placed in the wellbore to control sand production from
the formed fractures. The gravel pack acts as a filter keeping formation sand out of the
well while allowing hydrocarbons to flow smoothly.
Advantages;
Frac Pack offers both stimulation through creation and effective sand control
with gravel packing in one go, which boosts performance.
This method works well in high productivity wells and loose formations where
sand production can be challenging.
Drawbacks;
Frac Pack is seen as one of the costly sand control techniques due to its dual
functionality and need for specialized equipment.
Excessive fluid usage during hydraulic fracturing could potentially harm
formations if not managed carefully.
Frac Pack proves to be a choice for;
Wells with productivity and notable sand production possibilities.
Formations that are prone to sand influx due to lack of consolidation.
Reservoirs that necessitate both stimulation and sand control strategies, for
enhancing production outcomes.
5.3.6 Chemical Consolidation
Chemical consolidation is a sand control technique that involves injecting resins into the
formation to strengthen the rock matrix and mitigate sand production from the
wellbore.
Specialized resins are injected into the formation through the wellbore. These resins
penetrate the pore spaces within the rock. They then polymerize and solidify to
strengthen the formation and reduce its tendency to produce sand.
Advantages:
Chemical consolidation offers a durable sand control solution by addressing the
root cause of sand production—the weak formation itself.
This technique is particularly beneficial in unconsolidated formations where
traditional mechanical methods may be ineffective or impractical.
Chemical consolidation typically has minimal impact on the wellbore diameter
compared to mechanical sand control techniques like gravel packing.
Drawbacks:
Incorrect resin choice or inadequate placement can compromise treatment
effectiveness.
Chemical consolidation lacks real-time monitoring capabilities to assess
treatment effectiveness during and after the injection process.
Achieving optimal results with chemical consolidation requires expertise in resin
selection, injection techniques, and reservoir engineering.
All modern wells use strings of multiple casing. These include conductor casing, surface
casing, intermediate casing and production casing. However, in the cased and
perforated completion, we are referring to the production casing being run into the
reservoir.
As seen from figure 2 below, only the production casing is run into the reservoir in a
cased and perforated completion.
Figure 20 Casing Run in Modern Oil and Gas Wells (Source: Greg King © Penn State)
5.5.3 Perforation
Perforation is a technique used to create channels through the production casing of a
well, through the cement behind the casing and then through to the surrounding rock
formation. Perforations are made essentially to:
create some sort of communication between the pay zone and the wellbore.
to provide a path for reservoir fluids to enter the wellbore.
Perforations are done using special guns to shoot shaped charges into the formation.
This releases high velocity stream of energy which penetrates the well casing and the
formation surrounding it.
The shaped charge is a conical explosive device that encapsules the explosive material.
It consists of a detonating cord, a liner and a series of primary and secondary explosives.
The detonating cord connects the shaped charge to the detonator, the case houses the
secondary explosive. The liner houses the primary explosive, the primer. Below is a
schematic for the shaped charge.
Figure 21 Schematic of a shaped charge
When the detonator is triggered, the primer, which is very sensitive to firing goes off
first. The energy derived from this sets off the secondary explosive by collapsing the
liner and focusing the stream of high velocity particles into the casing through to the
walls of the formation.
The A-section is screwed or welded onto the surface casing, and this accepts the next
string of casing.
The intermediate casing head (B-section) is bolted onto the A-section and can be used
to suspend the production casing string. Two additional intermediate sections are
required for the surface casing and intermediate casing.
The tubing head (C-section) suspends the production tubing and seals off the tubing-
casing annulus. Like the intermediate casing head, the tubing head includes a secondary
seal and side outlets.
The Christmas tree serves as a crucial system comprising gate valves and a choke,
responsible for controlling fluid flow from the well. It regulates the opening or shutting
of production from the well and allows access for servicing. Typically connected to the
uppermost flange of the wellhead, often the upper tubing head flange, it facilitates the
following functions:
Regulating fluid flow through gate valves and a choke.
Opening or closing production from the well.
Providing access into the well for maintenance and servicing.
In the three-string wellhead, the Christmas tree includes components such as a tubing
head adapter, multiple gate valves, a flow tee, and a choke.
This setup directs well production into the flowline, which then transports fluids from
the choke to surface treating or processing facilities.
Figure below shows the completion string for the alpha well in the lacq field as designed
using PIPESIM software by Shlumberger.
SAND PRODUCTION
Sand Production is the production of small or large amounts of solids together with the
reservoir fluid. Sand production is one of the oldest problems of the oilfield. It is usually
associated with shallow formations of the Tertiary Age, but in some areas sand problems may
be encountered to depths of 12,000 feet or more. Even though approximately 60% of the
world’s oil and gas production comes from carbonates, 90% of hydrocarbon wells are in
sandstone reservoirs. Around 30% of these sandstones may be weak enough to produce sand
(Walton et al., 2001). Some carbonate reservoirs may also produce solids (Wulan et al., 2007).
As a practical matter, it has been suggested that:
All-produced solids smaller than the 90th percentile formation sand are probably
interstitial fines.
Produced solids between the 90 th and 75th percentile 37 range probably represent some
of the smaller load bearing solids.
Produced solids between the 75th and 50th percentile range certainly represent load
bearing solids.
Unexpectedly produced sand can lead to erosion, loss of integrity and potential fatalities.
The production of sand depends on three main components:
The strength of the rock and other intrinsic geo-mechanical properties of the rock
Regional stresses imposed on the perforation or wellbore
Local loads imposed on the perforation or wellbore due to the presence of the hole, flow,
reduced pore pressures and the presence of water
Sand Production may lead to three main types of problems:
i. Wear and erosion of the production equipment both downhole and on the platforms.
ii. Problems with the stability of the wellbore and the production cavities, which in
extreme cases, may lead to sand up and the abandonment of a well. Casing collapse
may also result from excessive sand production.
iii. The necessity to handle significant amounts of sand at the rig, and as a result the
environmental problems of disposing of the dirty sand.
SAND PREDICTION
Sanding prediction is generally based on the following three categories: sand arch stability,
perforation tunnel stability, and open hole wellbore stability.
Laboratory experiments show that a sand arch is formed when sand is produced in a sandstone
reservoir. The arch serves to support a load by resolving vertical stress into horizontal stress.
When the arch fails, sand production will begin. Fig. 12.1 shows a numerical model of a sand
arch failure causing sand production (Peng et al., 2007). An early model for sand arch stability
assumed an idealized production cavity with full spherical symmetry of stress field, and the
following sand arch stability criterion was derived by Bratli et al. (1981):
μq
< 2UCS
2 πk r 1
Figure 1 Sand cavity in an unconsolidated reservoir from a numerical simulation.
For open hole production, sand production may occur if the wellbore fails in poorly-
consolidated and unconsolidated reservoirs. A stable wellbore is the minimum requirement for
keeping safe production and preventing sanding.
The stability of the perforation tunnel is crucial to prevent sand production in oil and gas wells.
Factors affecting stability include in situ stresses, reservoir and wellbore pressures, rock
strength, and perforation geometry. When the wellbore pressure is too low, shear failure may
occur, while high well pressure may lead to tensile failure. Depletion-induced increase in
effective stresses can push the rock towards shear failure, making it more likely.
Earlier studies used elastic solutions to analyze stress concentration around perforations and
predict shear failures induced by this stress concentration. Once the production borehole is
drilled, cased, and cemented, the reservoir can be perforated at regular intervals for production.
Production begins by imposing a bottom hole flowing pressure (P wf) lower than the virgin
reservoir pressure (Pr), causing flow towards the well according to Darcy’s law.
To maximize production, the flowing pressure should be kept as low as possible. However,
excessively low flowing pressure may trigger sand production. Therefore, it's crucial to
determine the minimum flowing pressure required to prevent sand production, known as the
critical flowing pressure (P cwf). The critical total drawdown pressure (P CDP) is defined as the
difference between the reservoir pressure and the critical flowing pressure. It represents the
critical drawdown from the reservoir pressure needed to cause failure (sand production) in the
reservoir formation.
PCDP =Pr−P cwf
Figure 2 Schematic representation of the reservoir pressure and the bottom hole flowing pressure in a reservoir.
CRITICAL FLOW RATE EFFECT
The normal producing situation is that a well may make a rather uniform amount of sand or
fines independent of production rate until some critical production rate is exceeded. Continued
production above the critical rate results in increasing amounts of sand production.
The strength of rock formations is typically determined through core experiments, but
obtaining core samples is costly and challenging to justify to drilling engineers. Therefore, core
samples are both valuable and limited. Various factors such as core handling, mud filtrate,
storage methods, and desiccation can adversely affect rock strength, necessitating careful
sample selection to ensure representativeness.
Rock strength tests, such as the unconfined compressive strength (UCS) measurement, require
relatively large core plugs and are destructive, limiting the number of tests per well. These tests
serve as calibration points for other methods like log-derived strengths. While UCS
measurements are simpler and cheaper, they lack the confinement present in real-life
conditions, leading to relatively low failure stresses. Confined compressive strength
experiments, where an elastomeric jacket surrounds the core plug, provide a more realistic
representation but pose challenges in determining appropriate confining pressures.
Thick wall cylinder (TWC) experiments are becoming more common as they closely mimic
perforation failure mechanics. However, UCS measurements are still frequently used for
calibration due to their simplicity and cost-effectiveness, despite log-derived strength
relationships often referencing UCS rather than TWC measurements.
Figure 3 TWC testing machine (photograph courtesy of Boris Tarasov, University of Western Australia).
A relatively large core plug is required. BP reports using plugs that have a 1.5 in. outside
diameter (OD), a 0.5 in. internal diameter (ID) and are 3 in. long (Willson et al., 2002b),
whereas Shell use plugs that have a 1 in. OD, 0.33 in. ID and are 2 in. long (Veeken et al., 1991).
The hole is drilled axially in the middle of the plug. The plug is then loaded radially inwards via
a jacket until failure occurs (usually spalling of the inner surface, Figure 3.4). There is often a
reasonable, but non-linear, relationship between the strength determined from a UCS
experiment and a TWC test of the form:
b
TWC=a x UCS
where a and b are constants. Consistent units are required. Palmer et al. (2006) report a field-
specific relationship, for example, where a ¼ 83 and b ¼ 0.5262 for strengths measured in psia.
Because of the scale of the TWC experiment (an OD to ID ratio of around 3), this still does not
represent the large scales in the formation. A correction is required, with Willson et al. (2002b)
suggesting, from experimental data, that the TWC results are generally a factor of between 3
and 3.8 too low, with BP using a factor of 3.1 (for their 0.5 in. ID TWC core plugs). In the Thick
Wall Cylinder (TWC) experiment, the size of the internal hole affects failure pressure,
necessitating consideration of TWC core size for failure predictions. Unlike metals, rocks are
significantly weaker in tension due to micro-cracks or flaws, leading to tensile failure. Tensile
strength is empirically derived from compressive test data, often using non-linear failure
envelopes like Hoek-Brown or Drucker-Prager models. Other methods such as Brinell hardness,
scratch tests, and Schmidt hammer tests provide alternative strength measurements with less
core damage. These techniques, when calibrated to larger-scale tests, can identify weaker
intervals and aid in selecting intervals for further testing. During UCS or TWC tests, strain data
can also be collected to assess properties like Young’s modulus and Poisson’s ratio, crucial for
deformation and fracture-stimulation modeling. Logs can also indirectly provide such
properties, allowing for calibration with core data.
Log data can be used to assess rock strength. Logs are best used when calibrated to core data as
there is no direct relationship between any wireline-derived data and rock strength
(Simangunsong et al., 2006). The advantage of log-derived measurements is that they are cheap
and simple and routinely obtained across the reservoir section for other reasons. Because they
are near-continuous measurements, once tuned, they provide a profile of the strength through
the reservoir.
The two most common wireline logs used for strength determination are porosity (either
neutron or density logs) and the sonic log. These logs are routinely run by measurement while
drilling (MWD) or by a dedicated wireline run. There are a large number of relationships
available between porosity and rock strength (Sarda et al., 1993; Edlmann et al., 1998). Sarda,
for example, recommends for undamaged rocks that the UCS is a simple function of porosity:
where σ UCS is the uniaxial compressive strength (psia) and ϕ the porosity (fraction).
Given the role that cement plays in rock strength, these relationships are not universal, but they
were developed from a large database.
The speed of sound through a rock is greater if it is well cemented, as sound travels much faster
through a solid than a liquid. In addition, the more direct the travel path through the rock, the
faster the speed of sound will be. A general relationship is velocity cubed, or slightly more
accurately as defined by Horsrud (2001) when converted to oilfield units:
where Δt is the slowness (inverse of speed) in ms/ft for the p-wave. Note that this relationship
was derived specifically for shales, although it is sometimes applied to other rock types. Several
other relationships are functions of parameters such as Young’s modulus (E), Poisson’s ratio
(m) and the bulk modulus (Kb). These properties can be derived by core experiment. They can
also be derived from a full-waveform sonic log (dipole log) (Qiu et al., 2005; Simangunsong et
al., 2006) by:
where ρb is the bulk rock density (g/cm3 ); Δtc the slowness for compressional waves in ms/ft,
Δts the slowness for shear waves in ms/ft, shear waves are slower than compressional waves,
and F a conversion factor (13,474 x 106 ) for moduli in psi. All these three properties are
dynamic, that is, they refer to the properties of the rock at sonic velocities and frequencies of
around 10 kHz. The strains are also small compared with laboratory strain and strength
experiments. Therefore, before these dynamic properties can be used, they need to be
converted to static properties through an empirical correlation (Chardac et al., 2005). Lacy
(1997) uses an empirical relationship derived from several hundred low and moderate strength
cores to determine the static Young’s modulus (Es ) from the dynamic (Ed):
where Es and Ed are the static and dynamic Young’s modulus, respectively (Mpsi). Many
companies use their own proprietary relationships based on their own (often regional)
databases containing static and dynamic data. Qiu et al. (2006) amongst others report a direct
relationship between Young’s modulus and UCS. An example of a correlation that uses Young’s
modulus and the shale content of the sandstone is an oft referred to relationship from Coates
and Denoo (1981).
where VSh is a common petrophysical parameter and is simply determined from the gamma ray
(GR) log:
where the GRclean and GRshale are the GR readings in a clean (shale-
free) sandstone and 100% shale, respectively. More accurate Vsh estimates can be obtained
from the density log, if hole size variability is low.
Where η P is a field calibration factor to scale σ S such that field or laboratory data can be
reproduced satisfactorily, and the default value is η P=1 . This fit factor can be used to the field
to calibrate the sanding onset predictions, set a higher or lower threshold for sand tolerance,
etc. The equivalent cavity stress σ C in different criteria is given as follows (Papamichos and
Furui, 2019):
1. Simplified Mohr-Coulomb sanding criterion
I
σ θi
σ C=
2
Combining the equations, the simplified Mohr-Coulomb sanding criterion can be
rewritten as the next equation i.e., when the following equation satisfies, it has sand
production:
i P
σ θi ≥2 η σ S
I
where σ θi is the effective tangential stress at the hole wall; σ S is the hole failure strength
of the formation and can be related to the uniaxial compressive strength of the rock.
In Eq. (12.16) it is assumed that if the effective tangential stress is equal to or greater
than two times the hole failure strength (sS), then sand production occurs. This implies
that the strength for sanding in is two times the conventional strength (e.g., the strength
used for wellbore stability evaluation).
ECONOMIC ANALYSIS
The oil and gas sector is driven by economics. Economic evaluations provide the basis of
almost all decisions. Generally speaking, the company's objective is to make choices that
maximize its current profit margin. The income received during a specified period
minus the expenses incurred during that period is the profit for the period. Keep in
mind that profit is defined for a period that can be as long as desired. The duration in
the oil and gas industry is often one month or one year. While time discrepancies in
revenue recognition are possible, they are often rather small. Expenses and investments
are two categories of costs that can be separated based on which timeframe they benefit
i.e. expenses benefit the current period only and investments benefit more than one
period.
The cash flow of each development option will be used to evaluate the LACQ Gas Field
development in this section. Based on the economic criteria of Payback Period (PP), Net
Present Value (NPV), and Internal Rate of Return (IRR), the best alternative will be
chosen. Sensitivity analysis will be performed on the most effective option selected to
examine the effects of adjusting the input parameters in the direction of the NPV. This
sensitivity analysis takes into account the following input parameters: price, CAPEX, and
OPEX.
OBJECTIVES OF ECONOMICS
PRODUCTION FORECAST
Production is the basis of revenue generation and production is derived from
hydrocarbon reserves. It is therefore essential that economists predict how the reserves
will be depleted over the years. Production forecasting influences how to strategically
plan all operational activities and decisions that will be made regarding investment
options. Forecasting production will help resource allocation optimization and enable
the prediction of revenue streams to some extent. The production forecast spans on
three main phases: the build-up phase, plateau phase and the decline phase. The chart
below predicts how the Lacq reservoir will deplete over the years.
PR ODUCTION FOR ECA ST
8
7
Annual Production (billion m3)
6
5
4
3
2
1
0
35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
Year
ECONOMIC ASSUMPTIONS
Several assumptions were made in order to facilitate the formulation of the project cash
flow and economic evaluation. Below is a list of them:
1. Time origin
2024 is used as the base year for economic analysis.
2. Condensate price
Based on the East Texas Condensate, an estimated USD 60 per barrel is the price
of condensate with constant 15% inflation rate for each year.
3. Gas price
The Henry Hub, a standard for natural gas pricing on the international front, is
the basis for an estimated gas price of USD 3.18 per MBTU ($0.114per cubic
meter).
4. Price rises
OPEX is increasing at 20% each year and CAPEX is decreasing at 2035% each
year. Inflation of 3% is also estimated.
5. Discount Rate
A 10% discount rate is employed and applied in this economic research.
CAPEX
Separation & treatment facility $60 million for a 10,000 STB/d 60,000,000
capacity plant
Condensate transportation pipeline $30 million for 10,000 STB/d capacity 30,000,000
(separation plant to shipping terminal)
Water treatment plant $ 20 million for a 10,000 bbl/d 20,000,000
capacity unit
Hydraulic Fracturing Processes 25,000,000
Produced water treatment & disposal plant $140 million for a 50,000 bbl/d 140,000,000
capacity plant
Gas compression and injection unit $500,000 per 200 MMSCF/D capacity 500,000
unit
Environmental impact assessment and $50,000 50,000
mitigation measures
Total =
$600,440,000
OPEX
Salaries 150,000,000
Cash flow refers to how money moves in and out of a project in a particular range of
time. A more specific fiscal metric, net cash flow (NCF) is used to predict how stable the
finances of a company is. Simply finding the difference between the cash flowing into
the project and the cash flowing out of the project gives the net cash flow.
Net present value is another financial indicator that accounts for how the value of
money changes with time. It is the sum of all cash flows that has been discounted for a
specific period of time. A net present value could be positive or negative. A positive NPV
indicates that an investment is expected to generate value or profits whereas a negative
NPV suggests the exact opposite.
( )
n
Rt −C t
NPV =∑ t
−I 0
t=0 (1+r )
Total 917046820
Discounted
NPV 80713332.04
PAYBACK PERIOD
Payback period is the time it takes a project to completely exhaust the amount of money
that was initially invested into the project. It is the point at which the cumulative net
cash flow goes to zero or becomes positive. From the analysis, the payback period is
approximately 10 years.
RATE OF RETURN
This is another fiscal metric that justifies the profitability of an investment. Internal rate
of return simply gives an idea of how well in investment will grow over a specific period
of time. It takes into account only the internal factors while ignoring external factors
like inflation. It is the discount rate that makes the net present value of an investment
zero. In that, the present value of profits and the present value of costs cancels out. It is
often used in organizations to compare the validity of projects. If a project has a higher
internal rate of return compared to another project with the same investment amount,
then the one with the higher returns is a better use of the investment money. Internal
rate of return is calculated using the net present value formula. But the NPV goes to zero
and r is the return rate at which the NPV goes to nil. To do this the return rate would
have to be iterated and Python codes were used to iterate the value of r which makes
the NPV zero. The Internal Rate of Return was calculated to be approximately 11.8%
which is equivalent to 12%
( )
n
Ct
NPV =∑ t
−I 0
t=0 (1+r )
SENSITIVITY ANALYSIS
In real world petroleum related situations, certain factors that contribute to project
income are subject to change. Sensitivity analysis allows varying certain variables to see
how it affect the finances of the project. In this analysis, cash inflow (OPEX/CAPEX) and
price of hydrocarbons are varied to notice how they affect net present value and net
cash flow of the project respectively. The cash inflow is increased by 20, 40 and 60% to
see how it reflects on the NPV and the price of gas is also decreased by 20, 40 and 60%
to notice how it reflects on the NCF using excel. Straight line plots are included to show
the relationship created by varying the mentioned variables.
35
30
25
20
%
15
10
0
0 00 00 00 00 00 00 00 00
000 000 000 000 000 000 000 000
0 0 0 0 00 00 00 00
20 40 60 80 10 12 14 16
Cash flow
1.49E+08 0
72755279 20
34672329 30
15630854 35
change in price against NPV
60
50
40
% CHANGE
30
20
10
0
0 100000000200000000300000000400000000500000000600000000700000000
NPV
NPV change in
price
41668696.9 0
263035034.3 20
484401371.6 40
595084540.3 50
From the sensitivity analysis, it can be conferred that, altering price of gas has more
effect on the NPV compared to varying the CAPEX and APEX.
Conclusion
Based on the economic analysis conducted on the Lacq field, it can be inferred that the
project has potential for economic viability and profitability.
The net present value which is indicative of the ability of a project to generate value
over time is positive and thus, reflects favourable returns on investment. This goes to
prove that the revenue outweighs the initial investment and operational expenses that
were put into the project. A 9-year payback period also signifies that the project is
expected to reimburse its initial investment within a reasonable time frame.
REFERENCES
Walton, I. C., Atwood, D. C., Halleck, P. M., et al., 2001. Perforating Unconsolidated Sands: An
Experimental and Theoretical Investigation. SPE 71458.
Wulan, R. S., Susilo, R. Y., Hendra, Y. S., et al., 2007. Development Strategy of Soft Friable
Carbonate Gas Reservoir through Horizontal Open Hole Gravel Packed Completion: APN Field
Offshore West Java. SPE 104532.
Peng, S., Fu, J., Zhang, J., 2007. Borehole casing failure analysis in unconsolidated formations: a
case study. J. Pet. Sci. Eng. 59, 226e238.
Bratli, R.K., Risnes, R., 1981. Stability and Failure of Sand Arches 21 (02), 236e248. SPE-8427
Willson, S. M., Moschovidis, Z. A., Cameron, J. R., et al., 2002b. New Model for Predicting the Rate
of Sand Production. SPE/ISRM 78168.
Veeken, C. A. M., Davies, D. R., Kenter, C. J., et al., 1991. Sand Production Prediction Review:
Developing an Integrated Approach. SPE 22792.
Palmer, I. D., Higgs, N., Ispas, I., et al., 2006. Prediction of Sanding Using Oriented Perforations in
a Deviated Well, and Validation in the Field. SPE 98252.
Qiu, K., Marsden, J. R., Solovyov, Y., et al., 2005. Downscaling Geomechanics Data for Thin Beds
Using Petrophysical Techniques. SPE 93605
Simangunsong, R. A., Villatoro, J. J. and Davis, A. K., 2006. Wellbore Stability Assessment for
Highly Inclined Wells Using Limited Rock-Mechanics Data. SPE 99644.
Chardac, O., Murray, D., Carnegie, A., et al., 2005. A Proposed Data Acquisition Program for
Successful Geomechanics Projects. SPE 93182
Coates, G. R. and Denoo, S. A., 1981. Mechanical properties program using borehole analysis and
Mohr’s Circle. SPWLA Logging Symposium.
Nouri, A., Vaziri, H., Kuru, E., Islam, R., 2006. A comparison of two sanding criteria in a physical
and numerical modeling of sand production. J. Pet. Sci. Eng. 50 (1), 55e70.
Vaziri, H., Allam, R., Kidd, G., Bennett, C., Grose, T., Robinson, P., Malyn, J., 2006. Sanding: a
rigorous examination of the interplay between drawdown, depletion, startup frequency and
water cut. SPEPO 21 (4), 430e440. SPE-89
Papamichos, E., Furui, K., 2019. Analytical models for sand onset under field conditions. J. Pet.
Sci. Eng. 172, 171e189
Murray, G., Brookley, J., Ali, S., et al., 2003. Development of the Alba Field – Evolution of
Completion Practices, Part 1: Openhole Screen-Only Completions to Gravel Pack. SPE
87325.
Economides, M. J., Watters, L. T. and Dunn-Norman, S., 1998a. Petroleum Well
Construction. John Wiley & Sons, Chichester, England, p. 348.
APPENDIX
SAMPLE DECREE OF PERMIT
DECREE OF PERMIT
Considering the mining code and relevant international conventions and laws
governing the exploration and exploitation of natural resources.
Acknowledging the request submitted by France Hunt Oil Company, Industrial Scotland Energy,
and Enterprise Oil Exploration Limited, collectively referred to as the petitioners, for an
exclusive permit to explore for liquid or gaseous hydrocarbons in the sea off the Landes and
Gironde departments;
Taking into account the various documents, reports, and opinions submitted in support of the
petition, as well as the outcomes of public inquiries and consultations with relevant authorities.
Having considered the terms and conditions outlined in the mining code and related decrees;
Decree;
Article 1: France Hunt Oil Company, Industrial Scotland Energy, and Enterprise Oil Exploration
Limited are hereby granted an exclusive permit to explore for liquid or gaseous hydrocarbons in
an area of approximately 552 square kilometers, covering the subsoil of the sea off the Gironde
and Landes departments.
Article 2: The perimeter of this permit is delineated as per the hydrographic map at 1/368000
scale annexed to this decree, with specific geographical coordinates provided.
Article 3: The permit is valid for a period of four years, commencing from the date of publication
of this decree in the Official Journal of the French Republic.
Article 4: The permit holder must meet a minimum financial commitment of 425,000 F, adjusted
for inflation based on specified indices. Any extension of the permit shall require a
corresponding increase in the financial commitment based on the prevailing index values.
Article 5: The prefect of Gironde is designated to oversee the implementation of this permit and
exercise the powers conferred by relevant mining legislation and regulations.
Article 6: An excerpt of this decree shall be posted in the prefectures of Landes and Gironde,
included in the administrative records of these prefectures, and published in a regional
newspaper or local broadcast, at the expense of the permit holders.
Article 7: The Minister of Industry and Regional Planning is tasked with ensuring the execution
of this decree, which shall be published in the Official Journal of the French Republic.
MICHEL ROCARD
ROGER FAUROUX.