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Eni’s major E&P projects, technology

The CEO of Eni, Vittorio Mincato, describes his company’s many exploration, drilling and production activities and the technology being applied to make them successful.

In February 2000, Eni was nominated sole operator for one of the most promising oil discoveries in the last 30 years, the Kashagan oil structure offshore Kazakhstan, in which Eni holds a 14.28% share. The contract area is made up of 11 blocks in the Kazakh North Caspian Sea, covering more than 5,500 km² (2,124 mi²), in water depths ranging from 2 to 10 m (6 to 33 ft). In the summer of 2000, the first commitment well discovered a hydrocarbon reservoir.

Eni has been named operator for Kashagan oil field by fellow companies in the nine-member OKIOC consortium. This photo shows Parker Drilling Rig 257 drilling last year’s Kashagan East 1 discovery, offshore northeastern Kazakhstan in the Caspian Sea. (Photo courtesy of Parker Drilling Co. and PR Newswire.)

A second well is being drilled in the same structure about 40 km (25 mi) away to evaluate the field. Due to the existing structure’s potential, and the scientific and technological challenges that it implies (the shallow waters freeze for about six months a year), this project represents an extremely important feat for the oil industry.

The sole operatorship of such a complex project rewards technological, engineering and project-management expertise. Eni is also co-operator of the Karachaganak oil and condensate field in northwestern Kazakhstan.

In Azerbaijan, Eni holds a 25% stake and is operator of the Kur Dashi offshore block. The tract covers about 550 km² (212 mi²) in water depths ranging from 10 m to more than 700 m (33 ft to 2,300 ft).

In January 2000, Eni acquired a 60% share in Ecuador’s Villano oil field, where it already had a 40% stake. The output is expected to reach 31,000 bpdoe in 2002.

In July 2000, Eni signed an agreement with National Iranian Oil Co. (NIOC) to develop the fourth and fifth phases of South Pars field in the Persian Gulf. The project includes construction of two offshore platforms in waters about 70 m (230 ft) deep; drilling of 24 production wells; and construction of two independent pipelines, each 105 km (65 mi) long, linking the two platforms to a gas center to be built in Assaluyeh. Eni will act as operator in the development phase and also provide technologies, know-how and resources. Production is expected to start in 2004.

In February 2001, Eni signed another agreement with the NIOC for development of Balal offshore oil field in waters 70 m (230 ft) deep. Eni holds a 38.25% share in this initiative. Development has already started, and production start-up is scheduled for late 2002, with production of 40,000 bopd, of which 9,000 bopd will net to Eni.

Eni’s recent acquisitions of British Borneo and Lasmo – driven by a strong strategic rationale – boosted its position in core areas. In the UK North Sea, Eni moved from 12th-largest to 6th-largest operator.

In North Africa (Algeria and Libya), Eni is obtaining significant synergies by rapidly integrating new assets. In Libya, it is the leading international operator with producing interests located in two areas: onshore in Bu-Attifel field (operator, 50%) and onshore in Bouri field (operator, 30%). In Algeria, Eni’s principal oil-producing fields are in the Bir Rebaa area.

In Egypt, where Eni is the first international operator and producer, it is developing numerous gas fields in the offshore Nile Delta, in waters 20 m to 80 m (65 ft to 262 ft) deep. Six gas fields – East Delta, Karous, Wakar, Darfeel, Baltim South and Port Fouad – already have gone onstream, with combined output of 11 MMcmd (388 MMcfd), of which 45.5% is Eni’s share. Other natural gas fields (Baltim, Ha’py, Akhen and Temsah) are being developed to reach a production rate of 33 MMcmd (1.17 Bcfd), of which 36.4% is Eni’s share. The project involves constructing 22 platforms, drilling 88 wells and building a 208-km (129-mi) pipeline network costing $2 billion (75% coming from Eni).

In Nigeria, Eni is among the main international players both onshore (also with an LNG project: Bonny Island) and offshore, with an equity output close to 100,000 bpdoe. The company’s principal producing interests are in four blocks (OMLs 60, 61, 62 and 63) in the Niger Delta, where it acts as operator (20%), and in OPL 472 offshore, where it participates through a service contract. Eni is also operator of two deepwater blocks (OPLs 211 and 316), where it has a 50.2% interest. The company also participates in two deepwater blocks (OPLs 212 and 219), with a 12.5% interest.

Eni is well-positioned in the new, most-promising oil areas, which is why it is among the world’s leaders in deep and ultra-deepwater operations, with total gross acreage of about 100,000 km² (38,610 mi²). It is the operator for almost 75% of that acreage. The maximum water depth, more than 3,000 m (9,843 ft), is in the Brazilian acreage. However, Eni has major holdings in the Gulf of Mexico (totaling 42 permits, 13 as operator) and in West African deep and ultra-deep waters (Angola, Congo, Nigeria and Gabon), where it is the operator in seven permits and a partner in five others.

Technology Applications. Significant new technologies applied by Eni to enhance discovery rates, improve gas recovery from reservoirs and reduce exploration, development and production costs are:

• Advanced technologies for basin modeling and evaluation of petroleum systems to reduce the exploration risk in deep and ultra-deepwater basins. One such system developed in-house, SEBE 3, is an integrated 3-D basin modeling software, based on finite elements theory, and designed to assess potential and risk of undrilled prospects.
• Volumetric interpretation and advanced technologies for multi-attribute analysis and visualization of 3-D seismic. These accurately define the geological-depositional model and detect prospective geological bodies.
• Advanced DHI (direct hydrocarbon indicators) AVO techniques to better assess risk of identified prospects and characterize fluid content and petrophysical properties of the reservoirs. In this area Eni’s Agip Division has developed the "Fluid Inversion," a seismic methodology for direct reservoir fluid detection and characterization based on AVO stochastic modeling.
• Stratigraphic inversion techniques (seismic lithology) and depth imaging to better integrate geophysical and geological data in the reservoir model, and make structural and sedimentological models more robust. Among these techniques is joint inversion interpretation, a proprietary technology based on integrating pre-stack-depth migration with two innovative geophysical prospecting tools: 3-D full tenor gravity (3D FTG) and the marine magnetotelluric (MMT). It permits an accurate reconstruction of the subsurface geology in areas with a complex structural setting (sub-salt and sub-basalt exploration).
• Advanced technologies for characterization of oil samples where Eni has developed GICOS – geochemical integrated characterization of oil samples. This technique allows one to obtain information on origin of the oil, its distribution within the reservoir and dynamics of the accumulation’s formation.

Drilling / completion advances include:

• SDD (straight-hole drilling device), used to assure stringent vertical control for onshore and offshore cluster drilling.
• Lean Profile, used to drill effectively in complex operative scenarios, reducing the environmental impact.
• Autotrak, advanced drilling directional system, makes it possible to steer a wellpath while continuing to rotate the drillstring.

In the production area, innovative developments include:

• "Intelligent" Completions, surface-controlled tools for reservoir management, a system that can perform monitoring, remote control and self-diagnosis functions.
• Fiber-optic-based offshore structural monitoring, a new system for long-term structural monitoring of metallic risers based on fiber-optic sensors.
• VASPS, vertical annular separation and pumping system, a two-phase (gas-liquid) subsea separation and pumping system.

Further, to cope with the challenges encountered in deep- and ultra-deepwater operations, Eni’s subsidiary, Saipem, has developed two of the most advanced drillships now in operation: Scarabeo 7, a semisubmersible drilling rig capable of operating in waters up to1,200 m (4,000 ft) and drilling to a depth of 7,600 m (25,000 ft); and Saipem 10,000, a drillship capable of operating in ultra-deep waters of up to 3,000 m (10,000 ft) in dynamic positioning mode, and having a crude oil storage capacity of 140,000 bbl.