What's new in production

	Vol. 229 No. 5
VICTOR SCHMIDT, DRILLING ENGINEERING EDITOR, schmidtv@worldoil.com

Magnetized flow

Scale and other tubing-wall coatings are a common problem in the oilpatch, and many chemical inhibitors and scraper jobs are sold to address the flow restriction caused by buildups. Crude oil’s chemical mix is at equilibrium in the reservoir, but is disturbed by production. Drops in pressure and temperature destabilize it, producing crystallization and corrosive reactions with the tubing. Reaction products nucleate to the tubing wall, forming scales.

However, there is always some new chemical, device or unusual technology from another industry being tested to overcome scale. Water treatment, boilers and desalination plants have similar scaling problems. Identifying a process called Kronenberg platelet formation, proponents of magnets say that strong magnetic flux can prevent scale.

Now, understand that magnets have been tried for scale reduction for many years with mixed results, and no one has scientific proof of how magnetism might affect flowing crude. Most of the evidence is anecdotal; it seems to work for some wells and not for others. In addition, I have no experience whatever with magnetic technology and I cannot vouch for its effectiveness. Still, there are people willing to experiment and try novel ideas, even without a scientific explanation.

There’s a new magnetic incarnation with a recently patented approach, one I haven’t come across before. Tubing Protection Ltd. is building a cylindrical magnetic sub, which is being introduced into the oilpatch by F&R Tubing. The tool is placed in the tubing string at intervals of 500 ft or less, so it can apply magnetic flux to flowing crude. According to the maker, as produced fluids move through the magnet, differentially-charged molecules align themselves with the magnetic field and scale precursors clump, forming clusters that are swept upward at normal flowrates. Turbulent flow in the tubing breaks the clusters as they move away from the lowest magnet, requiring another application of magnetic flux farther up the string.

The subs can be included at tubing installation, or placed in existing tubing with a removable F-collar stop tool. The devices are being tested in a few Texas wells.

Dropping production

Argentina’s oil production hit a six-year low last year, according to the National Institute of Statistics and Census (INDEC). Output was 257 million bbl of oil in 2007, down 2.6% from 2006. Production began dropping in 2002 from its highest output year in 1998. Argentinian oil industry experts blame a lack of investment, related to the high tax on exports of crude oil and oil products. Recent oil finds in southern Chubut province could slow or reverse the decline.

The production from Daqing Field in China dropped to 329.4 million bbl (41.7 million metric tons) of oil in 2007 due to rising watercut, down from an average 395 million bbl (50 million mt) that the field produced from 1976 to 2002. However, a recent find in the Songliao Basin has officials expecting to extend the field and stabilize production at 316 million bbl (40 million mt) within the next 10 yr.

Pemex said Cantarell Field offshore Mexico continues to decline. Overall, the company averaged production of 2.94 million bopd during January and February from all its fields, down 6.4% from the same period last year. Cantarell production dropped to 1.22 million bopd in March, down from 1.57 million bopd in January.

New investment

Bankers Petroleum Ltd. will invest C$370 million to increase production from its oil fields in Albania. This will raise its production to 20,000 bopd by the end of 2010 from 4,724 bopd in 2007.

India plans to invest $400 million over the next five years to develop oil and natural gas in the Orinoco Belt of Venezuela. A joint company, Petrolera IndoVenezolana S.A., will be organized to be held 60% by PDVSA and 40% by ONGC Videsh Ltd. The goal is to increase output to 60,000 bopd from the current 30,000 bopd and develop some of the 232 million bbl in place over the next 25 yr.

International companies have been invited by Iraq’s Oil Ministry to bid to develop Akkaz Field, a natural gas field with over 2 Tcf estimated reserves. The field is in Anbar province near the Syrian border. Iraqi oil officials said the field could produce up to 50 MMcfd in a first stage and up to 500 MMcfd later.

Projects

Husky Energy Inc. received approval from the federal and provincial governments and regulators in Canada to proceed with North Amethyst Field development in the Jeanne d’Arc Basin later this year. The field is 350 kilometers southeast of St. John’s, Newfoundland, near White Rose Field in the Atlantic Ocean. The company will develop this and other nearby fields using subsea tiebacks to the SeaRose FPSO. The field is estimated to contain 28.2 million bbl proved and 41.8 million barrels probable reserves.

PetroChina plans to double the output of Qinghai Field in northwest China. The company said that the field produced 120 Bcf (3.4 Bcm) of gas in 2007, but could produce up to 300 Bcf (8.5 Bcm) by 2010. Qinghai could produce 230 Bcf (6.5 Bcm) annually for 30 yr.

New output

TPAO began producing 10 MMcfd of gas from the Ayazli Field in the Black Sea offshore Turkey. Last year Akkaya and East Ayazli gas fields began producing and TPAO will further perforate East Ayazli-2 well to increase production from that field.

Dragon Oil completed a development well in the Caspian Sea offshore Turkmenistan, flowing 4,082 boepd. The well was drilled in Dzheitune (Lam) Field from the A platform. The well was drilled to 13,386 ft and opens a new reservoir, CH2/125B. Additional wells are planned.

Petrobras began producing 12.6° API heavy oil from Siri Field offshore Brazil, 163 mi (101 km) northeast of Macae. First oil flowed to the Petrojarl Cidade De Rio Das Ostras FPSO in late March. The vessel can handle 15,000 bopd of stabilized crude oil to its storage capacity of 214,000 bbl. Successful heavy oil production from Siri Field will allow Petrobras to book new producible reserves and move toward higher oil reserve targets.

SOCAR began producing a high-rate well in Gunashli field, offshore Azerbaijan. Well 244 on Platform 13 is flowing 1,106 bopd and 812 Mcfgd. The well was drilled as a joint venture with Azeri Drilling Company Ltd. and is the second well drilled on the platform.