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Lacq Field Final

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KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

KUMASI, GHANA.
COLLEGE OF ENGINEERING
DEPARTMENT OF PETROLEUM ENGINEERING

INTEGRATED FIELD DESIGN

Topic: Design the well completion phase for the Lacq Field taking into account,
Sand Production from the Field

APRIL, 2024.
GROUP MEMBERS

NAME INDEX NUMBER


KINGS VICTORY 2941420
ALBERT MAMZIE 2952220
ANKAMAH EDMOND 2932220
APPIAH, AARON KWABENA 2933020
ADU ADJEI, EDWIN KWASI 2927720
ISHAQUE, BAMBA JUNIOR 2940820
MENSAH, PAMELA 2943820
KOMBAT, GIDEON YENNUMAN 2941820
OSEI AGYEMANG, KEITH 2946420
OPUNI, RACHAEL SAKYIWAA 2946120
DANQUAH, ALEX BINNEY 2938220
ACKNOWLEDGEMENT
Our appreciation goes to the Almighty God for giving us the strength and wisdom to do this
project.
ABSTRACT
Situated near the southern edge of the Aquitaine basin in France, the Lacq field
represents a significant reservoir of natural gas. This document explores the geological
attributes, exploration methodologies, and regulatory procedures involved in acquiring
permits for hydrocarbon exploration and production within the Lacq field.
Geologically, Lacq houses a complex oil-gas reservoir beneath two unconformities,
featuring shallow oil and deep gas layers. The gas reservoir, predominantly anticlinal,
comprises calcareous and dolomitic segments exhibiting varying porosity and
permeability, heavily influenced by fracturing. Initial high-pressure and temperature
conditions have endowed Lacq with substantial gas reserves.
Obtaining exploration and production permits in France involves meticulous legal
processes, encompassing detailed application submissions, environmental impact
assessments, and adherence to regulatory standards. This permitting journey entails
engagement with authorities, public consultations, and meeting financial obligations.
Additionally, successful exploration endeavors and compliance with mining regulations
are pivotal for acquiring production permits.
Exploration activities in Lacq necessitate thorough geological surveys, including seismic
assessments, to pinpoint potential reservoir locations. These surveys yield invaluable
insights into the field's structural complexities and seismic behavior, thereby guiding
exploration strategies effectively.
Comprehending the geological nuances and legal frameworks surrounding the Lacq gas
field is imperative for conducting efficient hydrocarbon exploration and production
endeavors. This ensures regulatory adherence, environmental preservation, and
maximization of resource extraction.
Table of Contents
ACKNOWLEDGEMENT........................................................................................................................3
ABSTRACT............................................................................................................................................4
CHAPTER 1: INTRODUCTION.............................................................................................................7
GRANTING OF PERMIT FOR LACQ FIELD................................................................................................8
LEGAL REQUIREMENTS TO OBTAINING A PERMIT.........................................................................8
PROCESSING OF DOCUMENTS-DURATION....................................................................................8
THE BIDDING PROCESS FOR AN EXPLORATION PERMIT................................................................8
OBTAINING AN EXPLORATION PERMIT IN FRANCE FOR HYDROCARBON EXPLORATION..............9
OBTAINING A PRODUCTION PERMIT IN FRANCE.........................................................................10
MINING CODES LAWS AND REGULATIONS TO FOLLOW WHEN OBTAINING A PRODUCTION
PERMIT........................................................................................................................................13
CHAPTER 2: EXPLORATION OF THE LACQ GAS FIELD...................................................................14
GEOLOGICAL HISTORY.....................................................................................................................14
LOCATION AND GEOLOGY...............................................................................................................14
LITHOLOGY OF RESERVOIR ROCKS...................................................................................................16
GEOLOGICAL SURVEY (DATA COLLECTION).....................................................................................17
SEISMIC SURVEY OF THE LACQ FIELD...............................................................................................19
KEY FINDINGS FROM GEOLOGICAL SURVEY....................................................................................20
CHAPTER 4: RESERVE ESTIMATION FOR LACQ FIELD..................................................................22
VOLUMETRIC METHOD....................................................................................................................22
PROBABILISTIC METHOD.................................................................................................................22
CHAPTER 5: WELL COMPLETION.....................................................................................................26
5.1 Reservoir characteristics............................................................................................................26
5.2 Sand Production Mechanisms and Prediction...........................................................................26
5.3 Sand Control Techniques...........................................................................................................28
 5.3.1 Slotted Liner Completion............................................................................................29
 5.3.2 Standalone Screen completion...................................................................................31
 5.3.3 Expandable Screens....................................................................................................33
 5.3.4 Gravel Packing.............................................................................................................35
 5.3.5 Frac Pack.....................................................................................................................36
 5.3.6 Chemical Consolidation...............................................................................................37
5.4 Sand Control Selection Criteria..................................................................................................37
5.5 Well completion Design.............................................................................................................38
 5.5.1 Lower Completion.......................................................................................................38
 5.5.2 Criteria and Selection of completion type...................................................................43
 5.5.3 Perforation..................................................................................................................44
 5.5.4 Stimulation (Hydraulic fracturing)...............................................................................47
 5.5.5 Gravel Packing Design.................................................................................................48
 5.5.6 Completion fluids........................................................................................................48
 5.5.7 Intelligent well completion.........................................................................................49
 5.5.8 Upper Completion.......................................................................................................49
SAND PRODUCTION.........................................................................................................................53
SAND PREDICTION...........................................................................................................................54
 SAND ARCH STABILITY.........................................................................................................54
 OPEN HOLE WELLBORE STABILITY.......................................................................................55
 ELASTIC SOLUTION ON PERFORATION TUNNEL STABILITY..................................................55
 CRITICAL FLOW RATE EFFECT...............................................................................................56
ROCK STRENGTH ANALYSIS..............................................................................................................56
 CORE-DERIVED STRENGTH MEASUREMENTS......................................................................56
 LOG-DERIVED STRENGTH MEASUREMENTS........................................................................58
SAND PREDICTION MODELS............................................................................................................59
 SANDING FAILURE CRITERIA................................................................................................59
ECONOMIC ANALYSIS........................................................................................................................60
PRODUCTION FORECAST.................................................................................................................62
Conclusion..........................................................................................................................................70
REFERENCES......................................................................................................................................71
APPENDIX...........................................................................................................................................72

Figure 1. Lithology of the Lacq filed.........................................................................................................................17


Figure 2. Geological components needed to generate and store hydrocarbons...................................19
Figure 3. Image of a seismic survey using a geophone....................................................................................20
Figure 4. Cross sectional view of the Lacq field..................................................................................................21
Figure 5 Probability Distribution function of GIIP.............................................................................................24
Figure 6 Cumulative distribution function for GIIP...........................................................................................25
Figure 7 Reverse cumulative Distribution function for GIIP.........................................................................25
Figure 8 Sensitivity Analysis of the Parameters.................................................................................................26
Figure 9 Example Cased and Perforated Completion in a Single Zone Reservoir (Source: Greg
King © Penn State).......................................................................................................................................................... 36
Figure 10 Casing Run in Modern Oil and Gas Wells (Source: Greg King © Penn State)...................37
CHAPTER 1: INTRODUCTION

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

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.

OBTAINING AN EXPLORATION PERMIT IN FRANCE FOR HYDROCARBON


EXPLORATION

To obtain an exploration permit in France for hydrocarbon exploration, the following


procedures are observed;

1. Preparation and Feasibility Studies: Conduct geological and geophysical studies to


identify potential gas reserves and assess economic viability.

2. Environmental Impact Assessment (EIA): Prepare a comprehensive EIA to evaluate


the potential environmental effects of exploration activities. Environmental impact
Assessment is a very important aspect to which most attention is channelled. The core
aim of petroleum engineers is to optimize the production of oil and gas at minimum cost
with minimum environmental impact.
For a proper EIA to be conducted, a detailed description of the workflow must be
assessed to see the areas that are likely to pose dangers to the environment and
documented in the application file to obtain a permit. To comprehend the potential
impacts of the exploration, an assessment of the baseline environmental conditions is
imperative; this involves an in-depth analysis of the current air, water, and soil quality,
along with an evaluation of biodiversity and ecosystems in the Lacq Field.
Understanding the baseline conditions establishes a foundation for comparing and
mitigating potential negative effects.
Mitigation measures are the proactive steps taken to minimize and address the
identified environmental impacts. This involves the development of comprehensive
plans for environmental monitoring, the incorporation of advanced drilling technologies
to reduce the environmental footprint, and strategies to prevent and control pollution.
Additionally, community engagement and awareness programs are proposed to ensure
local stakeholders are informed and involved throughout the process.
Emergency response plan strategies must be made to address potential emergencies or
accidents during exploration. This underscores the importance of preparedness and
quick response to mitigate any adverse effects promptly.

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.

4. Application Submission: a comprehensive application for an exploration permit is


prepared, including details about the company, the proposed exploration area,
geological data, and the environmental impact assessment. The application is then
submitted to the relevant authorities.

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 IN FRANCE

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.

Some of the key requirements are:


1. Exploration Success: before applying for a production permit, a company needs to have
successfully completed exploration activities in the designated area. This involves confirming
the presence of economically viable petroleum reserves.
The "exploration success" requirement refers to the need for a company or entity to
demonstrate successful exploration activities in a designated area before applying for a
production permit for petroleum activities. Exploration success involves confirming the
presence of economically viable petroleum reserves through activities such as geological
surveys, seismic studies, and exploratory drilling.
 Geological and Geophysical Studies: Before exploration activities begin, companies
conduct comprehensive geological and geophysical studies to understand the
subsurface geology and identify potential areas with hydrocarbon deposits.
 Seismic Surveys: Seismic surveys involve sending sound waves into the ground and
measuring their reflections to create detailed images of the subsurface. This helps in
identifying structures and formations that may contain oil or gas.
 Exploratory Drilling: Once promising areas are identified, exploratory drilling is
conducted to extract core samples and assess the composition of the rock layers. This
process helps confirm the presence of hydrocarbons and estimates their potential
quantity.
 Reservoir Evaluation: Detailed reservoir evaluation involves analyzing the properties of
the discovered hydrocarbon reservoirs. This includes determining the size, pressure,
temperature, and permeability of the reservoir to assess its economic viability.
 Hydrocarbon Discovery: A successful exploration program culminates in the discovery
of economically significant hydrocarbon reserves. This means confirming the presence
of oil or gas in quantities that make extraction economically viable.
 Resource Assessment: Based on the data collected during exploration, companies
conduct resource assessments to estimate the quantity and quality of the discovered
hydrocarbons. This information is crucial for determining the potential profitability of
production.
 Technical and Economic Feasibility: Exploration success not only involves confirming
the presence of hydrocarbons but also assessing the technical and economic feasibility
of extracting and producing oil or gas from the discovered reservoirs.
 Documentation and Reporting: Companies are required to document and report their
exploration findings, including geological data, drilling results, and resource
assessments. These reports are submitted to regulatory authorities as part of the
application for a production permit.
The exploration success requirement is essential because it ensures that companies
have conducted thorough assessments of the subsurface geology, successfully located
hydrocarbon reserves, and determined the economic feasibility of extracting those
resources. This information is critical for regulatory authorities to evaluate the
potential impact and viability of petroleum production in a specific area before granting
a production permit.

2. Comprehensive Production Plan


Develop a detailed production plan outlining the technical aspects of petroleum extraction,
processing, and transportation. The plan should include reservoir development strategies,
production techniques, and safety measures.

3. Environmental Impact Assessment (EIA)

Conduct an Environmental Impact Assessment (EIA) to evaluate and mitigate potential


environmental effects associated with production activities. The EIA is crucial for obtaining
regulatory approvals.

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.

6. Safety and Emergency Response Plans

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.

8. Community and Stakeholder Engagement

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).

10. Public Consultation (if required)


Depending on the scale and impact of the project, engage in public consultation to gather input
from local communities and stakeholders. Address any concerns raised during this process.

11. Financial Obligations

Fulfill any financial obligations associated with the production permit application. This may
include application fees, security deposits, or other financial commitments.

12. Approval and Permit Issuance

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.

MINING CODES LAWS AND REGULATIONS TO FOLLOW WHEN OBTAINING A


PRODUCTION PERMIT

1. Application for an exploration permit (permis exclusif de recherches or "PER") is made


to the Minister in charge of mines, with documentation proving the identity, financial
and technical capacities of the applicant. This includes technical plans, work schedule,
financial commitments, maps, and environmental impact studies. No legal entity may
obtain a PER if it does not have the necessary technical capacities and financial
resources.

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.

CHAPTER 2: EXPLORATION OF THE LACQ GAS FIELD

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.

LOCATION AND GEOLOGY

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.

 Sedimentary Basin: The Aquitaine Basin is a sedimentary basin formed over


millions of years by the deposition of sediments eroded from surrounding
landmasses. During the Mesozoic era, it was covered by shallow seas, which
facilitated the accumulation of organic-rich sediments.

 Stratigraphy: The basin's geology consists of a series of sedimentary rock layers,


including sandstones, shales, and limestone, which were deposited over millions
of years. These layers vary in thickness, composition, and porosity, influencing
the distribution of hydrocarbon reservoirs within the basin.

 Structural features: The Aquitaine Basin is characterized by various structural


features, including anticlines, synclines, and faults, which result from tectonic
forces acting on the Earth's crust over geological time scales. These structural
features play a crucial role in trapping hydrocarbons, such as natural gas, within
reservoir rocks.

 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

GEOLOGICAL SURVEY (DATA COLLECTION)


The Geological Survey involves the systematic study of the Earth's structure, composition, and
processes to understand geological phenomena and resources. It plays a crucial role in mapping
and analysing the Earth's surface and subsurface to identify hydrocarbons.

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

SEISMIC SURVEY OF THE LACQ FIELD

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

KEY FINDINGS FROM GEOLOGICAL SURVEY

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.

Figure 5. Cross sectional view of the Lacq field


CHAPTER 4: RESERVE ESTIMATION FOR LACQ FIELD

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

The volumetric method is a classical technique that relies on the determination of


reservoir volume, porosity, and gas saturation. In our calculations, we utilized the
average values of the parameters given.

Using the formula:

GIIP = (43560×A×h×Φ×Sg)/Bg
Where;

A is the reservoir area


ℎ is the reservoir thickness

Φ is the porosity

Sg is the gas saturation


Bg is the gas formation volume factor.
Given the composition of the gas, the compressibility of the gas was determined and
zT
subsequently, the Bg from the relation 0.02827 . Since the gas was sour the Sutton and
P
Wichert-Aziz correlations were used to provide correction for the non-hydrocarbon
content. The compressibility factor and initial gas formation factor were found to be
1.29 and 0.002570 rcf/scf respectively.

We obtained a preliminary GIIP estimate of 260.17 Gm3 for the Lacq field.

PROBABILISTIC METHOD

Monte Carlo Simulation;

In addition to the deterministic methods, we employed the Monte Carlo probabilistic


method to account for uncertainties in key reservoir parameters.
The Monte Carlo simulation involved running numerous iterations, each time randomly
sampling from probability distributions associated with parameters such as porosity,
permeability, and gas saturation. The Crystal Ball software by Oracle was used for the
monte Carlo simulation. It is a Microsoft Excel software addon.

Instead of relying on a single deterministic solution, a Monte Carlo simulation was


conducted with 100,000 trials to capture the inherent uncertainty within the variables.
This approach allows for the exploration of a wider range of possibilities, providing a
more comprehensive

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

Figure 6 Probability Distribution function of GIIP


Figure 7 Cumulative distribution function for GIIP

Figure 8 Reverse cumulative Distribution function for GIIP

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 P10 estimate, representing an optimistic scenario, suggests a potential gas in


place of 934 Gm3.

 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.

Table 2 Probabilistic GIIP

Probability P10 P50 P90

GIIP (Gm3) 934 447 174

Refer to Appendix A for the full Monte Carlo simulation report using the crystal ball
software.

Figure 9 Sensitivity Analysis of the Parameters

The integration of deterministic methods including volumetric along with the


probabilistic Monte Carlo simulation, has provided a robust assessment of the gas in
place for the Lacq field. The combined results offer a comprehensive understanding of
the range of potential outcomes, aiding decision-making processes in field development,
reservoir management, and risk mitigation strategies.
This holistic approach to gas-in-place estimation ensures that uncertainties are
adequately addressed, providing the field development team with valuable insights for
optimizing recovery strategies and making informed decisions throughout the life cycle
of the reservoir.

CHAPTER 5: WELL COMPLETION

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.

5.1 Reservoir characteristics


The Lacq gas field has some key reservoir characteristics that are important to consider
for the well completion design:
 Deep reservoir: Located at a depth of 10,500-13,780 ft (3,200-4,200 m) and is
the primary target for gas production.
 Anticlinal Trap: The reservoir is trapped in an anticline structure, with the
highest gas concentrations found at the crest.
 High Initial Pressure: The initial reservoir pressure was very high, at 9,717 psi
(around 670 bar) at a depth of 13,780 ft (4,200 m), indicating a closed system
with limited water drive.
 Sour Gas: The Lacq gas contains a significant amount of hydrogen sulfide (H2S),
making it "sour gas". This requires special handling and processing
considerations.

5.2 Sand Production Mechanisms and Prediction


The Lacq field presents unique challenges for well completion due to its reservoir
characteristics and potential for sand production.
Sand Production Mechanisms
 Pressure Depletion: Initially, high reservoir pressure in Lacq helped to bind sand
grains together. However, as production depletes pressure, reduced confining
stress on the sand grains can lead to loosening and potential migration into the
wellbore.
 Water Influx: While Lacq lacks strong water drive support, any ingress of water
during production or intervention can weaken sand-to-sand contact points,
facilitating sand production.
 Incompatibility with Completion Fluids: Improper selection of completion fluids
may harm the formation, destabilizing the sand matrix and promoting sand
production.
 Thermal Stresses: Temperature disparities between the reservoir and cooler
completion fluids can induce uneven expansion or contraction in the formation,
creating stresses that loosen sand grains.
Sand Production Prediction for Lacq Field:
Sand failure analysis using PROSPER software indicates a maximum critical drawdown
of 4764 psi before sand production can occur. This simulation was done assuming
formation compressive strength of 21 MPa (lower than average strength of dolomitic
limestone) for worst case scenario.

Figure 10. Sand failure Calculations in PROSPER


Figure 11 Critical Drawdown flow rates and node pressures

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.

5.3 Sand Control Techniques


This is to give an overview of Sand Control Methods before selection based on criteria
that will be discussed in the following section.
5.3.1 Slotted Liner Completion
A liner is a special casing string that does not extend all the way to the surface. Instead,
it is suspended from the bottom of the immediate casing. When a liner is perforated
with laser technology or perforating guns to create longitudinal holes along the tubing, a
Slotted Liner is formed. Slotted liner completion is a technique employed to control
sand production during hydrocarbon recovery from subsurface formation. This type of
liner is made of metal pipe (steel) with holes strategically perforated across the walls of
the pipe. These holes allow for fluid ingress to surface facilities from the reservoir
whiles impeding the flow or production of sand. In its installation, the Slotted Liner is
lowered into the casing of the well and then set at the preferred depth. It is then
cemented to the casing to enhance structural integrity.

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.

Figure 12 Slotted liner completion


Figure 13 Slotted liners

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,

(1) it does not represent an open-hole completion and

(2) it requires perforations for the well to access the reservoir.

Slotted Liners have the following advantages.

 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

As hydrocarbon production progresses, there may be a point where the perforated


holes may be fully or partly filled with sand. This will generally impede fluid recovery
due to a drop in rates of production and the slotted liner may fail at that point.
Disadvantages

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.

Situations where Slotted liners are favourable

 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.

5.3.2 Standalone Screen Completion


It is an open-hole completion that offers some sand control capability. The screen is not
cemented set across the reservoir, so these are open-hole completions and have all the
major advantages and disadvantages for open-hole completions. The screen completion
is similar to an open-hole completion. The only difference is that a screen is hung in the
open hole interval to minimize the sloughing of the formation into the well bore. The
screen and liner completion is used primarily in unconsolidated formations to prevent
the movement of formation materials into the wellbore, restricting the flow of reservoir
fluids.
A screen is a liner with pre-milled holes, they provide partial sand control with the
physical dimensions of the openings acting as filters against the sand production. These
liners do not require perforations to achieve access to the reservoir. The liner must be
centralized inside an open hole. A liner packer is required to prevent the flow of fluids
in the screen-wellbore annulus. The use of the largest diameter screen possible is good
practice.

Figure 14 Liner Screen


This sand control, however, is limited because the openings may eventually plug,
causing a reduction in the flow rate. Screens set inside casing usually reduce
productivity since fine sand moving through the perforations fills the annulus between
the screen and casing. Screens do not support the formation.

Figure 15 Liner Screen Completion.

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

Wire-wrapped prepacked sand control screen is used in wells where conventional


gravel packing is not feasible or economical. The thickness of the gravel layer can be
varied to meet special requirements.
Prepacked wire-wrapped sand control screen can be customized to catch up with
special requirements. Gravel sizes, sand coating and pack thickness are changeable
according to specification. Material grades for the screen and pipe are manufactured
according to API tubing or casing from stainless steel.
Standalone screen failures
Numerous high-profile failures have contributed to the poor reputation of standalone
screens in sand control. Case studies indicate that the primary cause of standalone
screen failure is erosion of the screen, often aggravated by screen plugging. A well-
known instance of this occurred in the Alba field located in the North Sea, as
documented by (Murray et al., 2003).

5.3.3 Expandable Screens


Expandable screens are a type of sand control completion equipment designed to
provide effective sand control while accommodating irregular wellbore geometries.
They are made up of a mesh structure that can be used in a collapsed state but can also
be expanded to fit against the wellbore wall. Materials such as stainless steel or nickel
alloys are used to make the screens due to their durability and resistance to corrosion.
Figures below show the expandable screen in the expanded form and a typical woven
mesh for the screen
Figure 17 Expendable Screen (expanded)

Figure 18 Woven Mesh for expandable 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.

 5.3.4 Gravel Packing


Gravel packing is one of the most used sand control methods in well completion. It helps
prevent sand production and maintain wellbore stability. Different techniques and
technologies have been developed to optimize the efficiency of gravel packing. Some of
these include the use of targeted friction models to calculate the required packing
pressure, the utilization of high-grade xanthan biopolymer gravel pack carrier fluid, the
implementation of pulsed gravel packing technology for horizontal wells, and the
introduction of a modified design using oil-swelling rubber particles to prevent voids
from forming in the gravel pack. These methods aim to improve the packing length,
migration ability of gravel, and overall pack tightness.

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.

Advantages of Gravel Packing

 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.

5.3.5 Frac Pack


Frac Pack is a method that combines fracturing with gravel packing to improve
productivity and reduce sand production. During a Frac Pack operation hydraulic
fracturing is first carried out by injecting a fluid under pressure, into the reservoir. This
fluid, which usually contains materials like sand or ceramic beads creates fractures in
the formation increasing permeability and improving the flow of hydrocarbons.

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.

5.4 Sand Control Selection Criteria


For the lacq field, the selected sand control technique is frac pack. The reasons are as
follows:
 There is the need for stimulation (hydraulic fracturing) since the it is a tight gas
reservoir.
 Cased hole gravel packed completions offer highly dependable sand control
completions, especially in challenging environments such as formations with
lower permeability and high pressures where other sand exclusion methods face
difficulties (King et al. 2003).
Therefore, a combination of fracturing and cased hole gravel packing is best suited for
the lacq field. That is essentially a frac pack completion. Detailed designs of the
hydraulic fracturing and gravel packing will be discussed as part of the lower
completion design.

5.5 Well-Completion Design


 5.5.1 Lower Completion
Cased hole vs open hole
The two major types of reservoir completion are the open hole completion and cased
and perforated completion. We will discuss each of them and then select one based on
requirements of the lacq field.
1. Open Hole Completion
In open-hole completions, the production casing is set on top of the reservoir/ just
above the reservoir's pay zone, the one that contains economically producible oil
and/or gas. The bottom of the pay zone is left uncased.
The formation is exposed to the well fluids and the production is controlled by screens,
packers, or inflow control devices. This allows the hydrocarbons to flow directly into
the wellbore.
In a typical open hole completion, the casing is set before drilling into the producing
interval. A non-damaging fluid can then be used to drill into the pay section.
The production casing is set above the target zone and cemented into place. Further
drilling extends the well bore into the target seam(s), and the extended hole is left open.
To prevent collapse, drilling fluids may be used to temporarily support the wellbore.
Advantages of open hole
 Fewer operations need to be performed before a well begins production. Hence,
the likelihood of production being impeded due to damage in geological
formations is reduced.
 The interior diameter of the bore is larger which results in more consistent
production pressures.
 There are no issues with open-hole logging (time-lapse open-hole logs can be
run for improved reservoir characterization and surveillance)
 The completion can be modified later with an inner casing string or liner if
desired.
 Perforating is not required, hence no perforating expenses.
 Well can be easily deepened.
 Risk of formation damage from cementing is avoided.
 Restriction of flow path due to cementing and perforating is reduced.
 Reduction in exposure/ handling of hazardous materials and emission
generation.
 Reduction in overall costs
Disadvantages of open hole
 The sand face is unsupported and may collapse.
 Inability to isolate hydrocarbons.
 Inability to manage production for different zones in a reservoir.
 The inability to control excessive gas or water production.
 They may require more frequent cleaning or replacement due to sand
production, scaling, or corrosion.
 The larger diameter allows more consistent pressures, but the velocity of the
product is lower.
 Sand production cannot be permanently controlled without a Major Rig
Workover, MRWO (an expensive well intervention requiring a drilling rig and
hoist). Temporary sand control can be performed with multiple bailer/clean-
outs well interventions (less expensive Slickline Workover).
 Selective well stimulation (acidizing or hydraulic fracturing of specific depth(s)
in the reservoir) more difficult than with Cased and Perforated Completions

Situations under which open hole completion is effective.


 Where the reservoir and interlayer rock are hard and not easily broken, such as
limestone, dolomite, and granite hole-type reservoirs or agglutinate and solid
sandstone.
 In horizontal wells where casing the entire length of the horizontal section may
be too expensive or not feasible.
 Useful in wells with only one productive zone and low-pressure formations.

Situations under which open hole completion might fail


 The fracturing stimulation is mostly required by medium and low permeability
sandstone oil and gas reservoirs. Open-hole completion cannot meet these
requirements.
 In vertical wells, open-hole completions are usually not feasible when there is
low formation integrity.
 Without casing/liner installed, remedial work and selective treatments within
the reservoir are more difficult.
 Open hole completions may fail in formations prone to instability such as shale.
 For wells with high gas/water productions, because proper isolation is crucial in
such situations (open hole completions are mostly unable to isolate different
fluids)

2. Cased and Perforated Completion


Cased and perforated completions are the most widely used method for bringing oil and
gas wells into production. For a cased and perforated completion, a production casing
or liner is cemented through the reservoir zone(s), after which the well is perforated to
establish communication between the formation and the wellbore. This technique offers
a robust and versatile approach, particularly for wells with multiple producing zones.
Figure 1 shows an example of a Cased and Perforated Completion across a single-layer
reservoir.
Figure 19 Example Cased and Perforated Completion in a Single Zone Reservoir (Source: Greg King ©
Penn State)

The Process of cased and perforated completion:


 Drilling: The wellbore is drilled through the target reservoir and potentially a bit
deeper.
 Casing and Cementing: Production casing, a high-quality steel pipe, is run into
the well and cemented in place. This casing protects the wellbore, isolates
producing zones, and provides a strong foundation for future operations.
 Tubing and Packers: Tubing, a smaller diameter pipe that carries fluids to the
surface, is run inside the casing. Packers are strategically placed to further isolate
specific zones within the reservoir.
 Perforation: Perforation guns are deployed either on wireline or tubing. These
guns fire shaped charges to create precise openings in the casing and cement,
allowing communication between the reservoir and the wellbore. The
perforation pattern and depth are carefully designed to optimize well
productivity and avoid unwanted zones like water or gas layers.

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)

Advantages of cased and perforated completion


 Zonal Isolation: Cased and perforated completions excel at isolating different
producing zones within a well. This allows for selective production or injection,
maximizing wellbore control and optimizing reservoir management.
 Durability and Safety: The steel casing provides structural integrity and protects
against wellbore collapse. Additionally, zonal isolation helps prevent unwanted
fluid flow, enhancing safety during production.
 Versatility: This method is adaptable to various wellbore configurations and can
be used to complete single or multiple producing zones.
 Workover Capability: Cased and perforated completions allow for future well
interventions (workovers) to address production issues or perform additional
perforations in new zones.
 Reduced Sand Production: Compared to open hole completions, the casing
minimizes formation sand from entering the wellbore, reducing maintenance
needs and equipment wear.
Disadvantages of cased and perforated completion
 Cost: Casing, cementing, perforation, and completion equipment add significant
upfront costs compared to simpler well completion methods.
 Limited Reservoir Exposure: The casing restricts access to the entire reservoir
compared to open hole completions.
 Cased Hole Logging: Perforations limit the effectiveness of some well logging
techniques, potentially hindering future reservoir evaluation.
Cased and perforated completions offer a dependable and versatile solution for oil and
gas well development. While initial costs are higher, the benefits of wellbore stability,
zonal isolation, and long-term well control make this method the preferred choice for
many well designs.

Scenarios where cased and perforated completion is ideal:


 formations prone to instability or collapse: Cased and perforated completions
contribute to maintaining wellbore stability by providing structural support and
preventing the collapse of the formation around the wellbore.
 Sand Control: In formations where sand production is a concern, cased and
perforated completions offer better control compared to open-hole completions.
The casing helps to contain and control sand production, thereby improving
operational efficiency and reducing equipment wear.
 High-Pressure Reservoirs: Cased and perforated completions are suitable for
wells in high-pressure reservoirs where maintaining well integrity and
controlling pressures are critical. The casing provides containment, while
perforations allow for controlled production or injection.
 Controlled Reservoir Access: When precise control over reservoir access is
required, such as avoiding undesirable zones like water or gas layers, cased and
perforated completions are preferred. They enable operators to selectively
perforate only the desired intervals while avoiding zones that could negatively
impact well performance.
 When fracturing stimulation is required in low permeability reservoirs.

 5.5.2 Criteria and Selection of completion type


The lacq field:
 has a very high reservoir pressure of 9717 psi
 is a tight gas reservoir (with very low permeability of 0.1 mD), requiring
fracturing.
 is predicted to have sand production if the economic flow rate requirements are
to be met.
With the above characteristics, the most suitable reservoir completion for the lacq field
was selected to be cased and perforated. The cased and perforated completion method
offers the following advantages over open hole completion:
1. Upfront selectivity in production and injection: This method allows for precise
control over production and injection activities from the outset.
2. Flexibility for future adjustments: Zones can be added later, and it's possible to
reperforate zones plugged by scales or other deposits.
3. Suitability for fracture stimulation: This completion method is well-suited for
fracture stimulation, especially in cases where fracture containment or multiple
fracturing is required. The lacq reservoir needs stimulation.
4. Reduced sanding potential: Perforations are smaller than the wellbore, reducing
the potential for sand influx. Selective perforating or oriented guns further
mitigate sanding issues.
5. Ease of chemical treatments: The method facilitates the application of chemical
treatments, particularly those requiring diversion such as scale squeezes,
acidization, and other chemical dissolvers.
6. Compatibility with smart completions: Cased and perforated completions work
well with smart completion systems or when isolation packers are utilized, such
as with sliding side doors (SSDs).

 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.

Selection of explosive material


The primary explosive is usually made of Lead Azide or Lead Styphnate. There are a
handful of secondary explosive materials that are used for perforation operations. High
melting explosive (HMX), Pentaerythritol Tetranitrate (PETN), Trinitro toleune (TNT)
and Cyclotrimethylenetrinitramine (RDX). Factors like temperature and material
performance are the criteria that will influence the choice of material to use for
perforations. However, temperature has the greatest influence. The Lacq reservoir
formation has a temperature of 125°C. At this temperature, RDX is most suitable for the
perforation operation as can be referenced from the chart in figure 5 below.
Figure 22. Temperature stability of perforating explosives (Economides et al)

Types of Perforation guns


Through tubing, casing guns and perforating detonation train.
Through tubing guns:
This is an expendable gun in which individual charges which are housed in capsules are
secured and aligned across a strip of metal. This type of gun is run into the wellbore by
wireline or slick line in-through tubing operations. They can only be used once and do
not need retrieval operations which may incur additional cost. They generate minimal
debris which are not retrieved from the wellbore after perforations. This reduces the
potential for clogging.
Gun Conveyance Methods
There are three methods of conveying the gun into the wellbore: Through casing,
Through Tubing and Tubing conveyed perforation method.
Through casing guns are deployed into the formation through the casing to allow for
passage of large diameter guns. However, it is not suitable for already completed wells.
For the through tubing method, the gun is deployed into the wellbore through the
tubing (coiled or production tubing).
Tubing Conveyed Perforation Method: this refers to running the gun through the
production tubing. This is used for penetrating very deep formations. TCP facilitates
running large guns and offers easier control f fluids. This method of conveyance is
suggested for this field development.
Shot Density
Shot per foot is the number of shaped charges to be shot in a gun. It depends on
permeability, formation strength and the required production rate. The chosen shot per
foot should allow for the desired flow rate with reasonable drawdown. For very
consolidated formations with a shot density of 4 to 6 shots per foot is recommended.

 5.5.4 Stimulation (Hydraulic fracturing)


Due to the very low permeability of the reservoir, hydraulic fracturing is required for
the wells to be commercially viable.
Hydraulic fracturing involves injecting fluid into a wellbore at a rate higher than the
formation's capacity to take, causing pressure to build up until it exceeds the
formation's breakdown pressure. This results in the creation of a fracture in the
formation, typically extending vertically from the wellbore and propagating in two
directions. These fractures are usually assumed to be symmetrical and identical in
shape and size.
Initially, a fluid devoid of any propping agent, referred to as "pad," is injected to create a
wide fracture that can accommodate a propping agent. The propping agent is then
introduced to keep the fracture open once the pumping stops and pressure decreases,
preventing it from closing.
In deep reservoirs, human-made ceramic beads are commonly used as the propping
agent, while sand is typically employed in shallower reservoirs. The purpose of the
propping agent is to maintain the fracture's conductivity, allowing for enhanced fluid
flow and increased production from the reservoir.
The fracturing fluid, essential in hydraulic fracturing operations, is a mixture primarily
consisting of water, proppants, and various chemical additives. Its main purpose is to
create and propagate fractures within the reservoir rock, enhancing fluid flow and
maximizing production. The key components of fracturing fluid include:
 water as the base fluid,
 proppants to keep the fractures open,
 surfactants to reduce surface tension,
 gelling agents to increase viscosity,
 crosslinkers to further enhance viscosity,
 biocides to control microbial growth,
 acids for mineral dissolution, and
 breakers to degrade fluid viscosity after the operation.
Proppant selection
Ceramic beads are the selected proppants for the fracturing activity since the lacq field
has a deep reservoir.

 5.5.5 Gravel Packing Design


Gravel Sizing
Saucier’s criterion suggest that a gravel size of 6 times the median particle size (D 50)
gives a peak gravel pack to sand permeability of ratio regardless of the uniformity
(Saucier, 1974).
Using that as a reference, and with a median particle size of 55 μm, the average gravel
size is selected to be 330 μm.
Screen Sizing
The screen aperture was designed such that it is the largest size that stops all the
gravels from passing through. As a rule of thumb, the aperture should generally be no
larger than 75% of the smallest gravel diameter.

 5.5.6 Completion fluids


A completion or workover fluid is a fluid placed against the producing formation while
conducting such operations as well killing, cleaning out, drilling in, plugging back,
controlling sand, or perforating. Basic completion and workover fluid functions are to
facilitate movement of treating fluids to a particular point downhole, to remove solids
from the well, and to control formation pressures. Required fluid properties vary
depending on the operation, but the possibility of formation damage should always be
an important concern. These criteria are to be considered in selecting a completion
fluid:
 Fluid Density: Fluid density should be no higher than needed to control
formation pressure. With reasonable precautions a hydrostatic pressure of 100--
200psi over formation pressure should be adequate.
 Solids Content: Ideally, the fluid should contain no solids to avoid formation and
perforation plugging.
 Filtrate Characteristics-- the filtrate should be tailored to minimize formation
damage considering swelling or dispersion of clays , wettability changes, and
emulsion stabilization.
 Viscosity-Related Characteristics--Viscosity-related characteristics, such as yield
point, plastic viscosity, and gel strength, may have to be tailored to provide fluid
lifting capacity required to bring sand or cuttings to the surface at reasonable
circulating rates.
 Corrosion Products-The fluid should be chemically stable so that reaction of free
oxygen with tubular steels is minimized, and that iron in solution is sequestered
and not permitted to precipitate in the formation.

Choice of completion fluid type


The type of completion and workover fluid used depends on a variety of factors,
including geological formation, well depth, reservoir characteristics, and environmental
considerations. Some of the most common types of completion and workover fluids
include water-based fluids, oil-based fluids, brines and nitrogen.
Fresh water is often desirable as a basic fluid due to the difficulty of obtaining clean sea
or formation water. The desired type and amount of salt is then added. Clear brine fluids
are highly compatible with carbonate formations like dolomitic limestone. They are
composed of various salts dissolved in water and are less likely to react adversely with
the formation.
In the case of the lacq field (dolomitic limestone reservoir), brine completion fluid is the
most suitable since it is compatible with carbonate reservoirs.

 5.5.7 Intelligent well completion


Smart completions are also to be employed in the lacq field to remotely monitor and
control the inflow and injection of fluids in a well. This is achieved using control valves
and electronic connection lines to downhole sensors in the well. Intelligent well
completion can help to improve sweep efficiency by controlling the influx of fluids into
the well through flow restriction at certain intervals throughout the completion.
Sand detectors
These devices are used to detect the presence of sand in a well. They are installed in the
production tubing and are connected to the surface through a control line. When sand is
detected, the sand detector triggers an automatic response that closes a valve while
activating a sand control system.
Inflow control devices
Inflow control devices (ICDs) are also employed to control the flow of fluids into a
wellbore. They are typically installed in the completion string and are designed to
restrict the flow of fluids at certain intervals.

 5.5.8 Upper Completion


For all the producer wells, the following completion equipment and their specifications
are to be used:
Tubing Selection
It is designed to withstand burst, collapse, tensile, compressive, and tri-axial loads
during all operations. They should also have the material properties to handle the
corrosivity of fluid in a wellbore or formation. Sensitivities run on the tubing sizes
indicates a peak flow rate at tubing ID of 5.5 inches. It is an API grade P110 tubing made
up of high-quality, corrosion-resistant carbon steel. It is designed to withstand
operating pressures up to 10,000 psi (689 bar) or higher, as per well conditions. Tubing
Material provided as per API Specification 5CT requirements.
Packers
The packer is used to provide annular isolation for the well and to anchor the tubing
string to the production casing. It could either be retrievable or permanent.
A permanent hydraulic set packer was selected in the case of the lacq field due to the
following conditions of the field:
 The deep nature of the wells
 Very high reservoir temperature (9719 psi)
 Presence of corrosive agents (H2S, CO2)
The retrievable packer performs poorly under these conditions, as they are designed for
low stress applications. The packer should also be High Temperature, High Pressure
(HTHP).

Figure 23. A Packer with its components

Subsurface Safety valve (SSSV)


These devices are designed to prevent an uncontrolled release of hydrocarbons from
the well if something catastrophic occurs at surface. They are referred to as “fail-safe”
because they are designed to automatically close and isolate the reservoir fluids from
the surface in the event of a failure or loss of well control.
The design of the SSSV features a cylindrical design with either a ball closing
mechanism. Positioned within the production tubing, the SSSV remains open through a
high-pressure hydraulic line connected from the surface. This hydraulic line, with a
diameter of 6.35 mm (1/4"), links to the SSSV's hydraulic chamber, terminating at the
surface where it interfaces with a hydraulic actuator.
Landing Nipples, Locks and Sliding Sleeves
Landing nipples are threaded on the inside and outside of a short section of the casing
string to provide a means of landing and securing the completion string in the desired
location.
Locks are to be used to secure the completion string in the desired location. They are
installed in the landing nipple and are designed to engage with a corresponding profile
on the completion string.
Sliding sleeves (devices that are used to open and close flow paths in the completion
string) are also used. They are in the casing string and are designed to be moved by
hydraulic pressure.
All the above equipment is made up of corrosion-resistant materials with a maximum
pressure rating of 10,000 psi
Flow Coupling
In locations where turbulent flow is expected due to changes in internal diameter, flow
couplings are used. They provide large wall thicknesses to mitigate turbulence and
erosion. Flow couplings are located just above and below of flow control equipment
where turbulent flow problems are likely to occur (i.e., safety valve).

Wellhead and Christmas tree


The wellhead for the wells in the lacq field is a typical three-string well which consists
of:

 The A-section Casing head (sometimes referred to as the Bradenhead)


 The B-section Casing head (or Intermediate Head)
 The C-section (or Tubing Head) and
 The Christmas Tree.

A schematic is shown in the figure below.


Figure 24: A three string wellhead

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.

Figure 25: Casing and Completion string for alpha well

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.

 SAND ARCH 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.

Sand production in the reservoir depends on sand arch stability.

 OPEN HOLE WELLBORE STABILITY

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.

 ELASTIC SOLUTION ON PERFORATION TUNNEL STABILITY

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.

ROCK STRENGTH ANALYSIS

 CORE-DERIVED STRENGTH MEASUREMENTS

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-DERIVED STRENGTH MEASUREMENTS

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:

σ UCS=37418 x exp (−9 ϕ ) in psia


Where φ = 3% for the Lacq Field, therefore UCS = 28564.13392 psia

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.

SAND PREDICTION MODELS

 SANDING FAILURE CRITERIA


Many models were developed to predict sand production (e.g., Nouri et al., 2006; Vaziri et al.,
2006). Most sand production onset models for field applications have been derived from the
hollow cylinder hole failure models based on the assumption that wellbore failure corresponds
to onset of sand production. The stress expressions for the open hole wellbore can be applied to
the perforated completions by considering the perforations as open holes of small diameters. In
such a case, it is assumed that the wellbore does not influence the stress field around the
perforations. The hole failure criteria have been expressed through an equivalent cavity stress
σ C that is compared with the hole failure strength σ S of the formation such that (Papamichos
and Furui, 2019):
P
σ C −η σ S < 0 no failure; no sanding
P
σ C −η σ S = 0 Hole failure; sanding onset
P
σ C −η σ S > 0 Sand production

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

 To conduct an economic analysis of all feasible possibilities for each technical


component of the field development plan.
 To examine the financial consequences of every feasible choice by examining the
capital and operating expenses, as well as the production rates of each well, as
well as the price of gas.
 To determine (using NPV and PIR) the most cost-effective solution for the
development of the LACQ field.
 To determine (using sensitivity analysis) which variables have the biggest effects
on economics and arrange them according to magnitude.
FINANCIAL SYSTEM
In France, the financial system involves a wide range of institutions through which oil
and gas exploration and production are financed, through which investments are aided,
risk is assessed and which adherence to regulatory requirements is ensured.
Investment banks and other financial institutions finance hydrocarbon projects by
providing loans, credit facilities and covering insurance to companies involved in all
aspects of the oil and gas production project. Capital markets like the Paris Stock
Exchange also provide a medium through which companies can raise capital by issuing
stocks and bonds. Through grants and subsidies, government agencies in France can
finance hydrocarbon projects. This system of finance is governed by a set of regulations
that dictate various aspects of the system. The Autorité des Marchés Financiers (AMF)
are responsible for insurance and investment firms and the Banque de France oversees
monetary policies and banking supervisions. Petroleum activities in France are subject
to regulatory frameworks like the protection of the environment (as overseen by the
Ecological Transition and the French Energy Regulatory Commission, CRE), licensing
and reports on finances. For this project, Totale Energy manages all financial operations
encompassing budget allocation, decisions on investments and monetary transactions
within the organization.

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

PARAMETER ESTIMATED COST ($) TOTAL ($)


Acquisition of exploration licenses and $1 million $1,000,000
permits
Geological surveying, seismic data $2.5 million $2,500,000
acquisition and interpretation
Land drilling rig $20 million $20,000,000
Gas production/Injection well (drilling & $250 per ft of depth (vertical, 48,300,000
completion) horizontal, multilateral)

Well tie - in $300,000 per gas injection well 3000000

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

Additional Cost for unforeseen circumstances 100,000,000

Total =
$600,440,000

OPEX

PARAMETER COST ($) TOTAL COST ($)


Onshore drilling rig $40,000 per day 73,200,000
Gas-condensate-water $ 10.00 per STB (total) 1000000
separation
G treatment $ 5.00 per STBO 950,000
Oil shipping $ 0.5 per STBO 2,395,000
Utilities 2000000

Salaries 150,000,000

Produced gas processing $ 0.5 per MSCF 682,645


and treatment
Gas shipping $ 0.02 per MSCF 4,000,000
Produced water treatment $ 2.50 per STBW 1,865,843
& disposal
Total = 235893488
REVENUE AND CASH FLOW

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

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.

VARYING CASH FLOW AGAINST NPV


40

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

Table 3: Varying cash inflow with constant price

NPV 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
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Coates, G. R. and Denoo, S. A., 1981. Mechanical properties program using borehole analysis and
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Nouri, A., Vaziri, H., Kuru, E., Islam, R., 2006. A comparison of two sanding criteria in a physical
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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.
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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.

Saucier, R. J. (1974). Considerations in gravel pack design. Journal of


PetroleumTechnology, 26(02), 205–212.

Bellarby J., (2009), Well Completion Design, Development in Petroleum Science,


Elsevier.

APPENDIX
SAMPLE DECREE OF PERMIT

DECREE OF PERMIT

The Prime Minister,

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.

Done in Paris, January 17, 1990.

MICHEL ROCARD

By the Prime Minister

The Minister of Industry and Regional Planning,

ROGER FAUROUX.

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