TECHNO-ECONOMIC ANALYSIS OF HYDRAULIC FRACTURING AS A SOLUTION FOR DEVELOPING LOW-RESISTIVITY AND LOW-QUALITY ZONE ON OFFSHORE RI FIELD
Hydrocarbon production in Indonesia is on a decreasing trend every year, inversely proportional to the increasing level of consumption. Low-quality and low-resistivity reservoir zones are deemed to a lot of hydrocarbon potential but had low priority to developed due to low production levels. "R...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/46957 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Hydrocarbon production in Indonesia is on a decreasing trend every year, inversely proportional to the increasing level of consumption. Low-quality and low-resistivity reservoir zones are deemed to a lot of hydrocarbon potential but had low priority to developed due to low production levels. "RI" field is a mature offshore field with a reservoir that has a low-quality and low-resistivity zone that produced more than thirty years and has a declining rate of oil production. This study reviews the techno-economic side if well stimulation in the form of hydraulic fracturing performed to know development methods for the field under these conditions.
The hydraulic fracturing process is modeled using Fracpro software as input parameters for reservoir production simulations. The reservoir behavior is simulated using CMG software to see the amount of hydrocarbon production for various development scenarios. There are three cases performed in the "RI" field, which simulated within ten years of operation (2020 to 2030). The first case is the condition with the natural flow, the second is the implementation of hydraulic fracturing, which starts at the beginning of the production period (2020), and the third is the implementation of hydraulic fracturing, which starts during the middle of the production period (2025). Then, the three cases are evaluated with a Gross Split scheme, by applicable law, to calculate the economics of the project implemented both from the government and contractor sides.
Based on the simulation studies, oil production in cases 1, 2, and 3, respectively, is 106.81, 330.61, and 232.76 thousand barrels. Not only in oil production, but hydraulic fracturing also causes an increase in gas and water production. The increase in oil production led to increase in the NPV value on both the government’s and contractor’s sides. The government's NPV values in cases 1, 2, and 3 are 1.67, 5.26, and 3.13 million USD, respectively. From the contractor's point of view, the NPV values in cases 1, 2, and 3, respectively, are 1.16, 3.63, and 2.14 million USD. Based on case 1, the percentage increase in government NPV in cases 2 and 3 is 215% and 87%, and the increase in contractor NPV in cases 2 and 3 is 212% and 84%. The implementation of hydraulic fracturing resulted in a significant percentage increase, both in terms of production and NPV values. The best field development scenario is case 2, where hydraulic fracturing begins at the beginning of the production period.
The novelty of this study is the comparison of scenarios for the implementation of hydraulic fracturing methods in fields with low-resistivity and low-quality zone whose economic value is evaluated by the Gross Split scheme. |
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