ENHANCED OIL RECOVERY

SPE 93329
EOR IN MALAYSIA : MAKING IT REALITY
Prepared by:
Suhailah Adilah Saarim
Muhd Naqiuddin Zahid

Mohd Azlan Masri

Nur Khasilah Abdorahman
Muhd Fakhrurrazi Azhar

ABSTRACT
A considerable amount of HC resource is estimated to remain in the ground
even after primary and secondary discoveries in the fields.
In 2003, from 47 producing fields in Malaysia:
- Estimated STOIIP = 20.1 bbl/STB
Cumulative production = 4.9 bbl/STB
Reserves = 2.5 bbl/STB

Prime target
for EOR
projects in
Malaysia

Remaining = 12.7 bbl/STB 63.2%

In 2000, 72 reservoirs in Malaysia undergoes SCREENING STUDY:

- Almost a billion barrels of additional reserves that can be achieved through
EOR.
- Several key EOR technologies that are most applicable in Malaysia; gas
injection, chemical injection, and microbial.

ABSTRACT
Factors that plays an important role in planning EOR
projects in Malaysia:
FACILITIES
CONDITION

SOURCES OF
INJECTION GAS

TECHNOLOGY
APPLICABILITY

RESERVOIR
CHARACTERIZATION

COMMERCIAL
ASPECTS

OVERVIEW OF MALAYSIAN OIL AND GAS INDUSTRY

July
1882
Today

1910

1974

1950

1973

1954

1971

1962
1968

OPPORTUNITY
SET

As of 1st January 2003, the Malaysian oil reserves

figure stands at 3.5 BSTB and the cumulative oil
production is 4.9 BSTB, and oil-in-place of 24.9 BSTB
which translate to an average oil recovery factor of
34%.
This means that there is still a substantial amount of
remaining petroleum resources in the ground that
could be recovered through IOR or EOR.
Since 1994, the Malaysian crude oil reserves have
been on the decline.
Existing fields that are in production are already
showing signs of maturing stage and lead the
operators to find another ways to extending the field
life, beyond the primary and secondary techniques.

PETRONAS, as the Resource Manager, has taken the

lead to promote EOR in Malaysia through work
commitment terms when extending the duration of the
existing production sharing contract.
These commitments include financial obligation from
the PSC operators to conduct extensive research and
conducting EOR pilot tests in some of the field
candidates.
In meeting the nations oil production target,
PETRONAS also has set a target of increasing the
recovery factor from the existing 34% up to 45%.

EOR INITIATIVES IN MALAYSIA

1985- The earliest feasibility study for EOR in Malaysia was

recorded with objective to investigate the technical potential of
miscible enriched gas and surfactant flooding in Peninsular
Malaysia
1986- A screening study was conducted by Shell.The study
suggested the use of thermal EOR in Miri- but did not work
2000- PETRONAS endorsed a comprehensive EOR/IOR
screening study- 33 reservoirs from 16 fields in Peninsular
Malaysia and 39 reservoirs from 19 fields in East
Malaysia.The outcome of the screening study identified 52
reservoirs that are technically feasible for EOR/IOR
processes
Considering practical limitations- Reduced to 37 reservoirs
Classified into four quadrant- Based on remaining oil in place
and expected incremental recovery from EOR processes

To validate the findings- numerical simulation models were

developed for the group which has highest remaining oil
and highest recovery for selected EOR identified in firstlevel screening.
The main processes studied in screening exercise is

chemical,gas flooding and microbial enhanced oil recovery

The miscible hydrocarbon and carbon dioxide WAG
flooding- most favorable processes.

CHALLENGES AHEAD
-the approach towards EOR in Malaysia has taken a
conservative route
-producing fields in Malaysia are located offshore
-Offshore environment poses a number

of challenges both technical and commercial

-One of the primary concerns is the well spacing for

effective EOR processes
-Average well spacing for the Malaysian fields ranges
from around 1000 ft 3000 ft
-thermal or chemical require much closer well spacing
The required range of the well spacing for an effective
chemical process is around 330 ft 470 ft
thermal will be much less than that
The most likely viable EOR process is the gas
flooding mechanism.

larger spaced wells add another problem to the

process, and that is the uncertainty of the reservoir
characteristics between the wells that can greatly
impact the effectiveness of the proposed gas
flooding
Prediction of the recovery will be difficult without a
detailed understanding of the reservoir
uncertainties.

Another complexity of operating EOR in offshore

environment is the nature of the wells, which are mostly
deviated or highly deviated, and without a proper flooding
pattern.
For conversion of the wells to a pattern injector, some
wells may have to be workover or sidetracked in order to
optimize the injection capability.
It will directly increase the cost for EOR implementation
and thus reduce the economic feasibility of EOR project
in Malaysia.

Old fields in Malaysia added a new problem to implement

EOR I these reservoirs.

Ageing platforms/facilities
Large investments may be needed to maintain the
existing platforms
refurbishments may be required for added modules such
as water pumps and/or gas compressors for any EOR
projects to be implemented
window of opportunity for EOR implementation is limited
If the EOR projects are to be carried out, they need to be
planned, studied and implemented in the near future
rather than much later in the field life, where higher cost
of maintenance and development is envisaged.

the main challenge for offshore EOR in Malaysia can be

summarized as the possible high cost of the
implementation and not about the technology itself

For gas flooding (such as CO2 injection), the average

total cost per barrel is around US$12 20, which,
compared to average unit technical cost in Malaysia, is
on the high side.
The actual cost of EOR in Malaysia is yet to be
determined as there is no full-scale implementation of
any EOR projects to date

CHALLENGE IN APPLYING EOR IN MALAYSIA

Operating environment.
- offshore field
- High reservoir temperature
- Large well spacing

Ageing surface facility which may required facilities

upgrading.

Limited detail assessment, planning and study in

the past.
The lack of technical capability in order to realize
the plan for projects effectively.

WAY FORWARD
Focus in monetizing the possible EOR potential
having formal structure
Eg: EOR department with dedicated staff

Proposed a Key Performance Indicators

reviewed from time to time to monitor the process
of projects.

All EOR project in Malaysia should be planned early to

ensured smoothness of progress.
Lesson learnt from one particular project will be
captured- to be shared with other staff in different project
prevent multiple mistake.
Clear and transparent work process must be in place to
ensure that all requirement for project assessment are
met.
Right mindset and behavior should be cultivated toward
a sustainable EOR growth.

CONCLUSION

It is recognized that there is amount of oil reserve

that we can get through EOR process in Malaysia
oil field.

SPE 95931
EOR INMALAYSIA: MAKING IT REALITY (PART
2)

ABSTRACT
PETRONAS had realized the importance to further
increase the recovery factor and so far has been
persuing EOR implementation in its field
aggressively.
Full-field WAG application in Dulang field is already
at its final stage of implementation.

EOR project have also have been planned for

another 10 fields
Tabu
Tapis
Guntung
Kepung
Angsi

EAST MALAYSIA/ BORNEO

-

Baronia
West lutong
St Joseph
Bokor
Baram

Dulang

Tabu

Baronia

West
Lutong

Tapis

INTRODUCTION

 Oil

reserves were declining from 1994 to

2002 (Figure 1).
But increasing with the discoveries of
deepwater field.
In 2004, Malaysias average oil production
was about 620 thousands barrel per day.
Expected reserves life is only about 19
years.
PETRONAS authorize the entire oil and
gas in Malaysia (including upstream
exploration and production to downstream of
oil refinery) .

EOR INITIATIVES

National Oil Company endorsed a comprehensive IOR/EOR screening

study in year 2000.

Main processes that were considered having the most practical aspects in
the Malaysian oil fields:
- Chemical EOR
- Gas flooding
- Microbial EOR
Dulang field (Immiscible Water-Alternating-Gas, WAG)
- Dulang field Pilot Scheme in the S3 Fault Block
- Injection performance
- Production performance of A2L
- Production performance of B5L
- Production performance of B16

SUMMARY FOR DULANG FIELD

PETRONAS believes that sufficient pilot data have been

collected and analyzed to enable fit-for-purpose
assessment of Dulang field wide WAG implementation.

Observed pilot results were scaled up statistical method.

P50 (most likely) case showed and incremental of 18.5

MMstb.

New compressor were installed.

Minimizing LP gas flaring for WAG re-injection.

BARONIA FIELD (IMMISCIBLE

SIMULTANEOUS GAS AND
WATER INJECTION)

Baronia RV2 is the third largest producing reservoir

in the Baram Delta some 40 km offshore Sarawak.
Field production started since 1972.
The reservoir is of good characteristics, with:
- Pi = 3420 psig
- k = 70 md
- = 19 %
- Swc = 31%
- API = 42
- Bo = 1.6 rb/stb
- GOR = 1038 scf/stb
- = 0.3 cP
Oil production started under natural depletion drive,
which saw rapid pressure decline due to weak
aquifer support.
In 1994, peripheral water injection commented with
four horizontal injectors (BN-51, 52, 58 and 60).

PILOT STRATEGY FOR

THE BARONIA RV2
Aim is to test the feasibility of employing immisicble gas
injection process in Baronia RV2 reservoir.
The pilot feasibility was carried out using the 2001
reservoir simulation model which then converted to
Eclipse 300 compositional format.
The model predicted that immiscible gas injection with
continued simultaneous water injection at 3200 psig with
5 MMscf/d injection rate could yield 2.7 MMstb
incremental recovery within 20 years.

 The source gas shall be from the discharge of

Baronia gas re-injection compressor that has a
maximum discharge pressure of 3000 psig.
As the required injection pressure is higher than
what the existing re-injection compressor can
deliver, it is likely, that a booster compressor is
required.
Baronia pilot is expected to be a showcase for a
large-scale immiscible gas injection in the BDO
fields.
SHELL estimated that the immiscible process could
give up to 74 MMstb from four fields in this region.

WEST LUTONG FIELD

Located at Baram Delta Province 12 km north-west offshore
Lutong ,Sarawak

It was discovered in June 1966 with WL-1 and started oil

production in July 1968- 35 wells has been drilled including
16 sidetracks and 33 abandoned
KL and MN sands are the major producing reservoirs in West
Lutong
The reservoir MN units have contributed some 40% of the
production although these two zones have been defined and
characterized as two seperated zones- M and N reservoirs
are modeled as single unit in the pilot study.
The pilot was designed to test the feasibility of miscible gas
injection in Baram Delta Fields- due to large EOR potential

The objective of the pilot is to reduce the uncertainties of key

reservoir unknown that were identified as follows:

Remaining oil saturation- high recovery in sandstone reservoirs
Vertical sweep efficiency- multiple stacked pay
Areal sweep efficiency- few wells,no pattern,large spacing
Minimum miscibility pressure- aquifer supported or not

Injectivity and need for WAG injection- aquifer,high permeability

streaks,trapping

The current plan is to implement an observation pilot program with one

injector and one or two observation well(s) to be drilled 100 feet away
High purity carbon dioxide gas will be used to supply the injectant gas
at miscibility condition- It is expected to run for 3 months at 1500 psi
injection pressure.
Continuous gas injection is considered due to extremely strong aquifer

Gas chromatography equipment will be required to monitor gas

breakthrough and composition as a function of throughput
Resistivity log must be run monthly to monitor flood front and

desaturation

TAPIS FIELD
MISCIBLE OR NEAR MISCIBLE GAS FLOODING

LOCATION
Near southeastern end of Malay basin in the South
China Sea.
200 km off the east coast of Peninsular Malaysia in
about 64 km of water.
Tapis field discovered in 1969 by the Tapis.

1 exploration well and 3 appraisal wells before

development drilling commenced in 1977.
4 platforms were installed and 90 development wells
were drilled in 1988.
The 5th platform (Tapis E) was installed in 1998 to
develop the west and southwest fault block of the field.
Tapis field is the one of main target field for EOR as
identified by EOR screening in 2000.

THE FOCUS IN STUDY IS CONCENTRATED ON EAST

FAULT BLOCK OF TAPIS FIELD SELECTED BASED
ON:

Potential recovery of bypassed and

residual oil from mature waterflood paterns
in the block.
Large remaining oil in place from the
reservoir.
Moderately high degree of practicality.
Relatively high degree of knowledge.

One of the key findings in the element models is the

incremental recovery from immiscible vs miscible
floods.
Immiscible floods yielded incremental recovery
between 4% - 7%.
Miscible floods gave higher recovery between 10%
- 13%.

It must be noted that the recoveries from these element

models may not represent the behavior of the same
process in the full field model different boundary
conditions, well spacing, pressure communication that
are present in the field.
Hence, currently a full-field modeling of the EOR process
is being undertaken to further understand and estimate
the EOR potential from Tapis.

TABU FIELD (DOUBLE

DISPLACEMENT)
It

is one of the twelve fields drilled and developed by EPMI to date

located

in the southeastern part of the Malay Basin, approximately 200

kilometers east of Kerteh
an

oval-shaped east-west trending anticline of approximately 26 square

kilometers.
Two

major north-south trending normal faults separate the field into

East, Central and West fault blocks.
Water

depth at the field is approximately 64 meters.

discovered in October 1978 and field development was

initiated in February 1986 with the commencement of a
drilling program from the Tabu-A platform
Tabu-A development drilling was confined to the East
Fault Block of the Tabu field
Later, the Tabu-B development drilling program
commenced in November 1995 to develop the West and
Central Fault Blocks as well as the underdeveloped
areas of the East Fault Block

Tabu west fault block (WFB) in the Upper I reservoirs is

being tested for the double displacement process (DDP).
The DDP process is predicted based on the simulation
model generated for the fault block
The response is expected to be positive as a result of the
sandwiching of the oil by the two north flank water
injectors and the other two producers located in the north
At the same time, the up-dip injector forces the gas cap
towards southwest, thereby countering the aquifer influx
and increasing future oil from nearby wells

Prediction runs showed that DDP for the Tabu WFB

Upper I reservoirs alone will give an estimated
incremental of 1.8MMstb
The cost of flowlines, well restoration and surveillance is
considered to be relatively minimal hence DDP for the
Tabu WFB Upper I had been designated as an early field
trial for the said process
A heightened surveillance program is currently being
undertaken to better understand the DDP performance
before it is implemented in the full field mode

CHALLENGES AHEAD
Malaysia has seen a more focus and persistent
effort towards EOR
concerted collaboration within the EOR fraternity
set up by PETRONAS
The fraternity is lead by EOR unit in Petroleum
Management Unit (PMU) and receives operational
support from the EOR unit in PETRONAS Carigali
whilst PETRONAS Research and Scientific
Services (PRSS) served as one of the key technical
resource centre.

The group has so far managed to ensure all EOR

projects identified to be evaluated.
The challenge that the fraternity is facing now is how to
bridge the people that are operating the fields to buy in
the idea of implementing EOR that requires them to
change their operation philosophy.
They also faced some difficulties to getting the right
staffing in the current tight manpower situation.
Even with the right people and skills, fields in Malaysia
are located in an offshore environment is already a
challenge.

EOR is still a new subject in Malaysia

Thus, most of Malaysia producing fields were developed
without taking EOR into consideration
more than two-third of existing platform age are more
than 20 years
For EOR to come into the picture and becomes reality,
added investment may be needed in form of existing
platforms maintenance
refurbishment to add water pumps and/or gas
compressor modules,
a new platform that substantially erodes the EOR
profitability

most promising EOR option in an offshore environment is

gas injection
Source gas in some cases, may not be easy to come by
especially if it involves large quantity.
In Peninsular Malaysia, gas supply is critical to the
running of gas pipelines that supply most of the
powerbproducers demand.
In the East Malaysia side, the MLNG plants also have
high requirement for gas, thanks to the booming of world
LNG demand

In this situation, EOR projects that usually shrouded with

uncertainties and lengthy payback is forced to compete
for the source gas in comparison to the sales gas
demand that is usually immediate.
Malaysia might be very fortunate because CO2 is
naturally in abundance,
work to synchronize these areas with EOR is currently
underway.
technology advancement, lab studies and pilot learnings
can eliminate some of the technical hurdles,
But the economics usually hold back the implementation
of EOR

Production sharing contractors (PSC) have limited

production period granted by the host government
but the incremental from EOR projects can only be
realized well beyond the PSC expiry
In cases, where the contract is nearing its expiry, it is very
difficult to get the PSC to even conduct an EOR feasibility
study.

The shortage of manpower and short retention rate of

staff in our industry is also a great challenge with respect
to EOR
EOR projects not only need people with deep technical
understanding in the field of petroleum engineering
but also have to compete with other initiatives in the
Company for suitable manpower supply and funding

WAY FORWARD
The value creation of EOR in Malaysia- a forward thinking and strategic
frameworks need to be considered
Malaysia is well positioned to implement succesful EOR projects-PETRONAS
Unfortunately,offshore EOR has its technical challenges- need to take some
calculated risk
Pilot initiatives are one way to reduce the risk
To ensure that EOR is being considered even before first production- PETRONAS
revising its FDP
For brown fields,EOR projects will be linked to full-field review (FFR) initiatives for
cost optimization

PETRONAS strives to excel in oil and gas industry

One promising solution that is currently under evaluation is by using carbon dioxide as
source gas in EOR- would not only secure a long term supply of injectant gas but
also bring aditional gas reserves on stream
EOR projects in Malaysia have become reality partly- PSC
Although PETRONAS will continue to leverage on new signings to fund EOR
feasibility studies- still become reality in Malaysia
PETRONAS also working closely with its education division and Universiti Teknologi
PETRONAS (UTP) supply fresh manpower
Collaboration with another universities- long-term strategy to develop local
expertise
PETRONAS also recruits fresh graduates and leverage on Knowledge Management
(KM) tranfer knowledge to younger staff

CONCLUSIONS
EOR in Malaysia has becoming a reality to a certain
extent.
The first case was in Dulang field where it was geared
towards a full-field WAG implementation.
Tabu field although on smaller scale also shows that EOR
in certain cases can be implemented immediately at
minimal cost.
Malaysia also have seen at least two EOR pilot projects
in Baronia and West Lutong respectively in 2006.

THANK YOU