OTC-24737-MS

Simulation Study for Smart Horizontal Wells Application in Maximizing Oil

Reserves for Malaysian Field EOR Thin Oil Reservoir

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M. M. Metwally, M. Faizal, R.B A Rashid, M. Rizal, PETRONAS E&P Technology Division

Copyright 2014, Offshore Technology Conference

This paper was prepared for presentation at the Offshore Technology Conference Asia held in Kuala Lumpur, Malaysia, 25–28 March 2014.

This paper was selected for presentation by an OTC program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been
reviewed by the Offshore Technology Conference and are subject to correction by the author(s). The material does not necessarily reflect any position of the Offshore Technology Conference, its
officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Offshore Technology Conference is prohibited. Permission to
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Abstract
Horizontal wells become an important factor in improving well productivity, especially in brown-field development. Smart
well completions are becoming the best in development technology with horizontal wells. Inflow control devices (ICD) are
used to enhance the performance of the horizontal wells by delaying gas and water breakthrough. However, as smart
completions make the horizontal well more expensive, so their use requires justification. Reservoir simulation studies are very
helpful tools to optimize and evaluate the number, size and locations of the ICD along the horizontal section. This paper
presents a simulation and optimization study which was carried out on the planned three horizontal infill wells in one of
Malaysian field. The infill wells will be subjected to enhanced oil recovery (EOR) scheme after almost five years from their
initial production. The EOR scheme will include drilling more gas and new water injectors in order to support the reservoir
pressure. Application of the EOR scheme emphasizes need of using ICD to balance the expected gas and water production.
The main target of the study is to properly model the horizontal wells with ICD completion using the multi segmented well
approach. Several simulation runs were evaluated to cover the expected scenarios for the required ICD design. All results were
compared to the case assuming production without using ICD. This is to observe the benefits of using ICD and to come up
with the optimized ICD design suitable for each well. The study is crucial firstly, in evaluation of the initial simulation results
of ICD application before drilling of the planned wells and secondly to have a proper ICD design model for each horizontal
well which can be quickly modified in future based on the actual data during drilling operations where there is no more time
available for the rig.

Introduction
This field was located about 40 km. offshore Sarawak Malaysia, in water depth of about 250 ft. The field was discovered in
1967 with the drilling of exploration well No.1. First production began in 1972 from two isolated appraisal/development wells
equipped with subsea completions. In 2011, the field study team completed history matching work on the simulation models of
the three main major oil reservoirs in this field as part of the FDP study. These reservoirs constitute more than 80% of field
initial oil in place. Following the completion of the history matching exercise it was recognized that there was a significant
potential for further redevelopment in the studied field. Part of the redevelopment would be through implementation of
Enhanced Oil Recovery (EOR) by the year 2018. However, in the shorter term, the field study team was requested to pursue
opportunities for supporting national oil production via drilling of infill wells. The infill project was accelerated ahead of EOR
studies in order to achieve early first oil. A study covering the three major oil reservoirs concluded that the highest potential
for infill was in top thin oil reservoir where production could be economically accelerated with new drainage points without
sacrificing long term reserves recovery. Among the three major oil reservoirs, the top thin oil reservoir possessed the best
reservoir quality in terms of permeability and had undergone the least pressure decline. The reservoir pressure has declined by
only 170 psi since production commencement. Three infill horizontal wells have been proposed in this project. These wells are
M-03, M-09 and M-57. The objective is to produce remaining oil in this reservoir. The subsurface locations of these wells are
shown in Figure 1. The main risks for these wells are depth uncertainty and fluid contacts which vary from area to area in this
field mainly due to different strength of aquifer support. In addition, the production of oil from horizontal wells in thin oil rims
sandwiched between gas and water is notorious for coning problems. There is an expected tendency for early gas and water
breakthrough to be seen in the planned infill wells. The possible solution of minimizing the effect is through the application of
smart completion using ICD. Upon properly designed and effectively applied in a horizontal well and depending on the
reservoir characteristic, ICD would enable to:
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• Delay water/gas breakthrough

• Decrease water cut after eventual breakthrough
• Provide better initial well cleanup by redistributing well productivity index
• Act accordingly to zonal draining strategies for efficient reservoir management
• Provide better net present value through accelerated cumulative oil production

Simulation cases for each infill horizontal well were run to test the optimum ICD configuration. The main criteria for selection
were its ability to selectively delay early gas and water breakthrough. Each case with ICD was evaluated by quantifying the

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incremental reserves it would achieve over the case without ICD.

Simulation Model Integration

Inflow control devices (ICD) can be used in horizontal wells to balance inflow along the horizontal section. By way of
controlling the pressure drop, ICD can help to decrease the high flux at the heel of the horizontal well or from the highly
permeable zone. This can help to delay gas and water break-through and hence maximize the oil reserves. The effect of ICD
on inflow along the horizontal length and over the complete well life can be modeled using the field dynamic reservoir
simulators. Simulation model integration is the process of collecting all of the reservoir dynamic data to build a proper ICD
design model for each horizontal well. The field dynamic model was implemented using Petrel in which each horizontal well
was loaded by the planned trajectory and corrected location for the heel and toe. Nozzle ICD was selected to be used for the
required design, and then a library with variable nozzle ICDs was created. The library was loaded basically with different
types of ICD nozzle diameter sizes. However, due to availability, it was decided to use only one type of ICD with six nozzle
different diameter sizes. Three nozzles with large diameter size (0.125’’), two nozzles with medium diameter size (0.1”) and
one nozzle with small diameter size (0.075”). Furthermore, the model was loaded by the planned casing and tubing
specifications for each horizontal well. A cross section plot along the horizontal section was created for each of the three
horizontal wells. The permeability profile along horizontal section was the basis for selecting the compartment length or the
distance between packers for ICD intervals. Gas and water movements along horizontal section were observed for better
optimization to ICD compartment placement. Shale depths were considered in each horizontal well for proper packer’s
placement. One and up to seven ICDs per compartment were used for ICD modeling; this is for better evaluation of the effect
of ICD on the horizontal well performance. To properly model the ICD, a multi-segmented well model was created for each
infill horizontal well model. The multi-segment approach forces the well to be classified into a series of segments along the
horizontal length in which the fluid properties, pressure and flow rate can be calculated in each segment. This will lead to
corrected calculations of the flow contribution of each segment. The multi-segment well model was used considering all
pressure drop components such as phase slip, friction and acceleration.

Model Analysis Procedure

Based on the model integration process clarified above, the model was constructed for each infill horizontal well to test
different ICD designs. However, before considering the effect of the ICD on each horizontal well production performance,
many simulation runs were submitted to evaluate the effect of the planned EOR scheme on the field and infill horizontal wells.
Currently, only one gas injector injects gas in the gas cap of the reservoir. The EOR scheme will be applied on the planned
horizontal infill wells after almost five years from initial production. The EOR scheme will include adding another gas injector
in addition to four new water injectors to support the reservoir pressure. The simulation runs, in this stage, are assuming that
all of the planned infill horizontal wells will produced through open hole completions and without using ICD. The results will
be the base case to evaluate later the effect of using ICD in each well. Several simulation runs were submitted in order to
evaluate the expected scenarios of ICD application in each horizontal well. Firstly, the compartment or distance between
packers was evaluated based on permeability variation to each horizontal well. Compartments were ranged between four to
five compartments in each well. Then ICD numbers were optimized in each compartment. The ability of gas influx was
observed to be increased through and closed to heel section in the three horizontal wells. Hence, ICD numbers were decreased
in heel compartment to choke gas flow. As the oil flow was observed to be increased in the middle part of horizontal section,
so ICD numbers were increased in the middle horizontal compartment to allow more oil to be produced. Closed to toe section,
water influx will be increased, and then ICD numbers were optimized through this compartment to produce oil and decrease
water production. Different sensitivities were submitted with one and up to seven ICDs per each compartment to optimize and
monitor the effect of ICD design to each horizontal well. The effect of the developed ICD design was studied for each infill
horizontal well in relation to decline in gas production, as a first priority then water production and of course on maximizing
the well oil recovery. The ICD design model integration is illustrated in Figure 2.

Model Results and Discussion

For a better comparison, all of the ICD simulation runs were compared to the base run which assumes that the horizontal well
will produced under open hole completion and without using ICD application. Cutoff date was considered in January 2020
(i.e. well on production for 6.5 years).
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The first infill horizontal well (M-03), as given in Figure 3, has 2094 ft horizontal length section. Decision was taken for well
ICD compartments to be four or five compartments based on well permeability profile along horizontal length, as shown in
Figure 4. However, simulation sensitivities showed that four compartments will reflect better impact on the well recovery, as
illustrated in Figure 5. Using four compartments, simulation sensitivities were submitted by different ICDs number per
compartment. Sensitivities were considered six different ICDs number groups distributed along the four compartments started
from the first compartment at the horizontal well heel and up to the fourth compartment at the horizontal well toe as the
following: (1,5,7,1), (1,7,1,3), (1,7,1,5), (1,7,2,2), (1,7,5,1) and (1,3,1,3). Basically, the last ICDs distribution group was
submitted to evaluate the effect of decrease ICDs number from 14 ICDs to 8 ICDs only. The developed creaming curve, as

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given in Figure 6, shows the effect of each ICDs distribution group on the ultimate well recovery compared to the case
assuming no ICD application. The creaming curve confirmed that, the use of 14 ICDs with the distribution of (1,7,1,5) along
the four compartments, is the optimum ICDs number and distribution group for this well as the incremental oil reserve will be
over than 60,000 STB assuming surrounding wells production interference (almost 23,000 STB net) which represents an
increase by almost 3 % in recovery factor by the cutoff date in January 2020. Furthermore, the simulation results showed that
by using ICD, the average decline ratio in well GOR and water cut will be 8% and 1% respectively compared to the case
assuming no ICD.

The second infill horizontal well (M-09), as illustrated in Figure 7, has 2480 ft horizontal length section. Figure 8 shows the
well horizontal permeability profile. Comparison between four and five ICD compartments, as shown in Figure 9, showed that
both groups will produce almost the same incremental oil reserve, however, four compartments group was selected as an
impact of its better behavior on future well GOR and WCT. To conclude the optimum ICDs number per each compartment,
simulation sensitivities were submitted to evaluate six different ICDs number groups distributed along the four compartments
from well heel compartment to well toe compartment as (1,6,1,4), (1,7,1,1), (1,7,1,3), (1,7,2,2), (1,7,3,1) and (1,3,1,3) while
the last group was loaded to evaluate decreasing in ICDs number. Figure 10 shows the incremental oil reserve will be
maximized by either of the three distribution groups, (1,6,1,4), (1,7,1,3) and (1,7, 2,2). The expected incremental oil will be up
to 72,000 STB assuming surrounding wells production interference (almost 27,500 STB net) which represents an increase by
almost 4 % in recovery factor by January 2020. 12 ICDs distributed as (1,7,1,3) along the four compartment were found the
optimum in relation to the future well performance, basically well GOR and WCT, which expected to be decreased by 11%
and 0.5% respectively compared to the production without ICD.

The third infill horizontal well (M-57), as shown in Figure 11, has 2429 ft horizontal length section. The reservoir model base
case, assuming no ICD, showed the well will be expected to produce using gas lift technique due to well low GOR behavior.
Figure 12 shows the well horizontal permeability profile. On the contrary to the previous two infill wells, five compartments
for this well, showed better impact on the well recovery as shown in Figure 13. By using five compartments, four different
ICDs number groups were evaluated from well heel to toe as, (1,2,2,1,1), (1,3,2,2,2), (1,5,2,1,1) and (1,4,3,1,1). Comparison,
as illustrated in Figure 14, shows that the last three distribution groups will produce almost the same well incremental oil
reserve which will be above 40,000 STB assuming surrounding wells production interference (almost 15,300 STB net) which
represents an increase by almost 2 % in recovery factor by January 2020. However, 10 ICDs distributed as (1,5,2,1,1) were
selected for better improvement for future well GOR and WCT. The average decline in well GOR and WCT will be 12% and
3% respectively compared to the case assuming no ICD.

Figure 15 shows a summary for the expected average decline, assuming production with ICD, in future GOR and WCT to the
three horizontal infill wells.

Notes on Results

§ The required ICDs number for each horizontal infill well is relatively high. This is basically due to use the only
available type of ICD which has relatively small channel cross section area

§ The recommended ICDs number with the selected distribution was further evaluated to maintain the annular velocity
through ICD below the erosional threshold which was considered as 200 ft/sec

§ As the expected production performance to the planned horizontal infill wells showed that wells will be subjected to
gas production problem rather than water production, so for the required ICD design, the priority was given to reduce
the GOR, i.e. limit the gas production which will occur during later stage of well life.
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Conclusions
Based on the ICD modeling study carried out on the planned horizontal infill wells in the studied field, it can be concluded
that:

1. Study results reflected that ICD applications can be adapted for future horizontal wells in this field especially with the
plan for EOR projects

2. Well modeling results showed that using ICD were successful in reducing wells GOR and water production. The
impact on the well incremental oil reserve was affected by the ICD compartments and ICDs number per each

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compartment

3. The study simulation results were creating the base ICD model and then developing the optimum design suitable for
each well. This is based on the current available data for the planned infill wells. However, the design model can be
quickly modified in future, based on updated data gained during drilling operations, especially from the planned pilot
holes.

Acknowledgement
The authors thank and appreciated the management of PETRONAS EPTD for their support and permission to publish this
paper.

Nomenclature

ICD : Inflow Control Device

EOR : Enhanced Oil Recovery
GOR : Gas oil ratio
WCT : Well Water Cut
WOPT : Well Oil Production Total
SCF/STB : Standard Cubic Feet per Stock Tank Barrel
MMSTB : Million Stock Tank Barrels
STB/day : Stock Tank Barrel Per Day

References

1- M. Jadid and M. Fahmi, PETRONAS Carigali Sdn.Bhd. “A Performance Review of 14 Horizontal Wells in Baronia Field after 12
Years of Production” SPE 107630, April 2007.
2- B.Youngs, K.Neylon and J.Holmes, Schlumberger “Multisegement well modeling optimizes inflow control devices” World Oil,
May 2010 issue, pgs 37-42.
3- J. Al-Thuwaini, S. Shenawi, SPE, and B.Yuen, SPE, Saudi Aramco “Simulation and Optimization of Complex Architecture Wells
With Smart Completions” Offshore Technology Conference, OTC 20131, May 2009.
4- C. Jones, Q. Morgan, S. Beare, A. Awid and K.Parry Weatherford International “Design, testing, qualification and application of
orifice type inflow control devices” International Petroleum Technology Conference IPTC 13292, December 2009.
5- S. B Sudirman, Y. B Samsudin and N. Haji, Petroleum Management Unit, PETRONAS “Planning for Regional EOR Pilot for
Baram Delta, Offshore Sarawak, Malaysia: Case Study, Lesson Learnt and Way Forward” SPE 109220, November 2007.
6- B. Cvetkovic, SPE, G. Halvorsen, J. Sagen, Institute for Energy Technology, Kjeller, Norway “A Multiple Fractured-Horizontal
Well Case Study” SPE/Petroleum Society of CIM 65503, November 2000.
7- LX. Nghiem, R. Sharma, D.A. Colins, Computer Modeling Group and K.N. Jha, CANMET/EAL “Simulation of Horizontal and
Deviated Wells in Naturally Fractured Reservoirs” Petroleum Society of CIM, Paper No. CIM 92-15, June 1992.
8- Petrel 2011.1 Software, Schlumberger.
9- J.W. Lee, SPE, Korea National Corporation and C. Park, J.M. Kang and C.K. Jeong, SPE, Seoul Natl. U. “Horizontal Well Design
Incorporated with Interwell Interference, Drilling Location, and Trajectory for the Recovery Optimization” SPE 125539, October
2009.
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Figure 1- Three Infill Horizontal Wells Subsurface Locations

Figure 2- ICD Design Model Integration

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Figure 3- Infill Well M-03 Target Zone (Hz 2094 ft)

Figure 4- Well M-03 Horizontal Permeability Profile

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Figure 5- Well M-03 Different ICD Compartments
- Figure assuming production interference

Figure 6- Well M-03 Different ICD Distribution

- Figure assuming production interference

 
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Figure 7- Infill Well M-09 Target Zone (Hz 2480 ft)  

   
 
   
   
 
   

 
 
Figure 8- Well M-09 Horizontal Permeability Profile  
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Figure 9- Well M-09 Different ICD Compartments
- Figure assuming production interference

Figure 10- Well M-09 Different ICD Distribution

- Figure assuming production interference
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Figure 11- Infill Well M-57 Target Zone (Hz 2429 ft)

Figure 12- Well M-57 Horizontal Permeability Profile

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Figure 13- Well M-57 Different ICD Compartments
- Figure assuming production interference

Well  M-­‐57   ICDs  Number  Distribution  Creaming  Curve    

Cutoff  Date  @  2 020
45,000
Ultimate  Incremental  Oil  Reserves    ( STB)

40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
ICDs  Distribution 1,2,2,1,1 1,3,2,2,2 1,5,2,1,1 1,4,3,1,1

Figure 14- Well M-57 Different ICD Distribution

- Figure assuming production interference
 
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OTC-24737-MS

 
Figure 15- Average Decline in Well GOR & WCT
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