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Enhanced Oil Recovery - Kuwait
Prepared by: Alahdal A. Hussein
March 29, 2015
Proposal number: 2


By Alahdal A. Hussein!1...
PROPOSAL CONTENT

1- Overview about Kuwait Petroleum Industry	 	 	 	 	 	 	 	 3
2- Kuwait Oil Production Target 	 	 	 	 	 	...
1. Overview about Kuwait Petroleum Industry

According to the Organization of Petroleum Exporting Countries (OPEC) Annual ...
country's effort on the deployment of enhanced oil recovery methods to help boost
production and achieve the country's pro...
Tertiary recovery, also known as enhanced
oil recovery (EOR) is commonly used in
mature fields where secondary techniques
s...
4. Thermal Enhanced Oil Recovery

Thermal recovery techniques are the most understood and technologically advanced
methods...
5. EOR Projects in Kuwait

In a plan to boost production, international oil companies (IOCs) were allowed involvement
thro...
6. Solar - Enhanced Oil Recovery

Thermal EOR requires very large amounts of thermal energy. Large amounts of fuel are
nee...
7. Advantages of Solar EOR

Solar EOR is likely to play an important role in the mix of EOR technologies. Instead of
burni...
8. Cost Comparison of Producing Steam by Natural Gas and Solar EOR

Despite experiencing fuel supply shortages, many count...
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Solar Enhanced Oil Recovery

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An overview of Kuwait oil & gas industry and the application of solar enhanced oil recovery to help the country achieve its 2020 crude oil production target.

Published in: Engineering

Solar Enhanced Oil Recovery

  1. 1. Enhanced Oil Recovery - Kuwait Prepared by: Alahdal A. Hussein March 29, 2015 Proposal number: 2 
 By Alahdal A. Hussein!1Solar Enhanced Oil Recovery
  2. 2. PROPOSAL CONTENT 1- Overview about Kuwait Petroleum Industry 3 2- Kuwait Oil Production Target 3 3- Enhanced Oil Recovery 4 4- Thermal Enhanced Oil Recovery 6 5- EOR Projects in Kuwait 7 6- Solar - Enhanced Oil Recovery 8 7- Advantages of Solar EOR 9 8- Cost Comparison of Producing Steam by Natural Gas and Solar EOR 10 9- Solar EOR companies in Kuwait 10 By Alahdal A. Hussein!2Solar Enhanced Oil Recovery
  3. 3. 1. Overview about Kuwait Petroleum Industry According to the Organization of Petroleum Exporting Countries (OPEC) Annual Statistic Bulletin 2014, Kuwait had an estimated 101.5 billion barrels of proved oil reserves. The country also holds additional reserves in the Partitioned Neutral Zone (PNZ) between Kuwait and Saudi Arabia, where Kuwait shares a 50-50 basis with Saudi Arabia. The PNZ holds about 5 billions of proved oil reserves and this brings Kuwait's oil reserves to 104.5 billion barrels. Kuwait has the sixth highest proved oil reserves among all countries with 6% of the world total proved oil reserves. Its oil reserves include approximately 13 billion barrels of heavy oil, located primarily in northern Kuwait, with other reserves concentrated in the PNZ. Kuwait is also a member of OPEC and exports the fifth largest volume of crude oil and condensates following Saudi Arabia, the United Arab Emirates, Iraq, and Nigeria. The country's current oil production output ranged from 2.9 to 3 million barrels a day. Regardless of the high oil production the country had, it has plans to increase its oil production outputs by 2020 and 2030. 2. Kuwait Oil Production Target Kuwait's short-term strategic plan is to produce 3.150 million barrels of oil daily through the years 2015 and 2016 according to Kuwait Petroleum Company's CEO Hashim S. Hashim. In addition the country's long term strategic plan is to remain one of the world's top oil producers as the country targets crude oil and condensate production of 4 million barrels per day (bbl/d) by 2020 and it is projected that the production capacity would be maintained through 2030. Therefore Kuwait intends to upgrade its production and export infrastructure, expand exploration, and build downstream facilities, both domestically and abroad. This effort is expected to help Kuwait achieves its oil production output's target for 2020. On the other hand, much of Kuwait's reserves and production are concentrated in a few mature oil fields discovered in the 1930s and 1950s. The Greater Burgan oil field, which comprises the Burgan, Magwa, and Ahmadi reservoirs, makes up the main portion of both reserves and production. Those fields are mature fields, which raises the need to focus the By Alahdal A. Hussein!3Solar Enhanced Oil Recovery
  4. 4. country's effort on the deployment of enhanced oil recovery methods to help boost production and achieve the country's production output's target. 3. Enhanced Oil Recovery Enhanced oil recovery (EOR) is a set of techniques used by oil producers throughout the world to increase the rate and total amount of oil production. By injecting steam, chemicals or gas into a reservoir, EOR can increase production rates and total production many-fold compared to traditional primary and secondary recovery methods. Primary recovery occurs earlier in a field's life where oil is driven to production simply through pressure changes with the formation, fluid and production well causing the expansion of gas in oil solution, forcing the oil to the producing well. Secondary recovery processes are required when a reservoir becomes low in energy, where considerable oil (usually lighter in gravity) has been produced without fluid replacement in the reservoir leaving a low pressure that cannot naturally drive oil towards production. In these cases water flooding or gas injection (immiscible with oil) are techniques implemented through injection wells to increase pressure and displace hydrocarbons to production. By Alahdal A. Hussein!4Solar Enhanced Oil Recovery
  5. 5. Tertiary recovery, also known as enhanced oil recovery (EOR) is commonly used in mature fields where secondary techniques such as water flooding no longer produce economically viable quantities of oil and start to exploit large quantities of the injected water. EOR methods inject specific fluids into the subsurface which can be highly viscous to improve hydrocarbon sweep efficiency, or can alter the properties of the oil and even the rock in some cases (wettability in carbonate reservoirs) to improve the flow of oil and increase production. The type of fluid injected largely depends on the characteristics of the oil (API gravity) and rock itself. The most renowned EOR methods used to improve oil recovery factors in fields worldwide are: Thermal injection (steam/fire flooding), miscible gas injection (CO2) and polymer injection. EOR methods have responsibility for the largest oil recovery out of the 3 stages. After primary and secondary recovery the average reservoir still contains around 70% of its original oil in place3, meaning EOR methods can sometimes extract just over half the total original reserves in place. EOR methods are extremely costly and the decision to push forward with tertiary recovery largely depends on the economic climate (oil price), which has been the main factor in the past why many large oil companies have decided to freeze production on fields rather than go forwards with EOR. By Alahdal A. Hussein!5Solar Enhanced Oil Recovery
  6. 6. 4. Thermal Enhanced Oil Recovery Thermal recovery techniques are the most understood and technologically advanced methods of EOR in the industry today, controlling approximately half of the total enhanced oil recovery worldwide. Thermal methods are commonly used when dealing with heavy viscous oils with API gravity less than 20 degrees and viscosities between 100-10000 centipoise, resulting in a very low mobility fluid that is difficult to produce. Thermal injection supply's heat down well into the reservoir, which increases the oil temperature causing partial vaporization or expansion of the fluid (oil) leading to a reduction in its viscosity, therefore improving its ability to flow towards production. Thermal Enhanced Oil Recovery System By Alahdal A. Hussein!6Solar Enhanced Oil Recovery
  7. 7. 5. EOR Projects in Kuwait In a plan to boost production, international oil companies (IOCs) were allowed involvement through Enhanced Technical Service Agreements (ETSA) to assist Kuwait in enhanced oil recovery (EOR) of its mature fields. Below are some of the EOR projects in Kuwait: 1- The Greater Burgan oil field: this field comprises of the Burgan, Magwa, and Ahmadi reservoirs, and this field makes up the main portion of both reserves and production. Greater Burgan's capacity largely from the Wara reservoir through enhanced oil recovery methods such as seawater and carbon dioxide injection. 2- Umm Gudair, Minagish, and Abduliyah fields: According to MEES, Kuwait plans to continue employing EOR techniques in the fields to maintain output of 500,000 bbl/d. 3- Raudhatain and neighboring Sabriyah fields: In August 2010, British company Petrofac signed a deal with KOC to boost production capacity in those fields. 4- Wafra oil field: A full-field steam injection EOR project led by Chevron is under development to offset field declines and boost production of the heavy oil play by more than 80,000 bbl/d during the first phase. Oil and Gas Fields Map in Kuwait By Alahdal A. Hussein!7Solar Enhanced Oil Recovery
  8. 8. 6. Solar - Enhanced Oil Recovery Thermal EOR requires very large amounts of thermal energy. Large amounts of fuel are needed to generate steam for EOR projects. Solar EOR replaces fuel use with solar energy. In Solar EOR method, mirrors are used to reflect and concentrate sunlight onto receivers that collect solar energy and then convert it to heat. The heat is then used to produce steam from water. Solar EOR can generate the same quality and temperature of steam as natural gas. Therefore, the use of solar EOR could reduce demand for natural gas required for EOR, which can be redirected to other economic activities, such as power generation, water desalination and as feedstock and energy for industrial processes. Solar Enhanced Oil Recovery By Alahdal A. Hussein!8Solar Enhanced Oil Recovery
  9. 9. 7. Advantages of Solar EOR Solar EOR is likely to play an important role in the mix of EOR technologies. Instead of burning natural gas to produce steam, solar EOR involves the use of concentrating solar power (CSP) technology to produce steam. There are many advantages of using Solar EOR such as: 1- Solar EOR reduces EOR fuel costs and helps operators hedge against fuel price volatility. Lower, stable costs for steam improve the economics of oil production. 2- Maximization of natural gas value, in many oil-producing countries, a shortage of natural gas puts EOR operations in direct competition with industrial development and other economic needs. 3- Local economic development, solar EOR can reduce the gas usage of EOR projects by up to 80%. This gas can be applied to other industries, such as electricity generation, desalination or even export as LNG, boosting total economic activity. 4- Creation of job opportunities, deployment of Sola EOR in Kuwait will provide a powerful economic stimulus that is poised to create thousands of jobs across kuwait. By replacing natural gas with solar energy for steam generation, Kuwait can redirect scarce natural gas resources to the private sector for use in industrial development and job creation. Redirecting more than 80 per cent of current gas resources used for EOR to private industry could fuel up to 280,000 new jobs throughout the country. 5- Solar EOR helps to recover more oil, solar steam generators are simple and reliable, eliminating 60% of the operating cost of a thermal EOR operation. Once installed, solar steam generators deliver steam for 30 years at very low operating costs. This low-cost long-term steam supply extends the life of existing wells, allowing economic production further down the decline curve. With an optimized solar steaming strategy, more oil can be economically recovered throughout the field’s lifetime. 5- Solar EOR solution produces emissions-free steam, eliminating all nitrogen oxides (NOx), particulate emissions, and CO2 associated with fuel combustion. Emission-free steam lowers operators’ risk to carbon legislation and can sidestep permitting constraints, enabling producers to expand production amidst increasingly strict regulatory hurdles. By Alahdal A. Hussein!9Solar Enhanced Oil Recovery
  10. 10. 8. Cost Comparison of Producing Steam by Natural Gas and Solar EOR Despite experiencing fuel supply shortages, many countries in the Gulf have multi-tiered and subsidized fuel costs, which do not reflect the true economic value. To expand heavy oil production, these countries will need to import LNG at $13 per MMBtu, not only to fuel EOR projects, but also for power generation and industrialization. Kuwait is currently natural gas net importer, that means using natural gas for its EOR is costly and according to U.S. Department of Energy, the price cost of producing steam is $8/MMBtu, however due to the cost of transportation, it is expected that the price of producing steam in EOR using natural gas is $13 per MMBtu. In the other, according to GlassPoint- one of the leading companies in Solar-EOR in middle east - the price of producing steam using Solar system is about $3/MMBtu. This represent a huge difference in price between using natural gas and Solar-EOR. Consequently, deployment of Solar systems in thermal EOR in Kuwait will benefit the country economically and environmentally. 9. Solar EOR companies in Kuwait The Solar-EOR industry in Kuwait is still at its beginning. The first specialized Solar-EOR company in Kuwait is GlassPoint Solar, the leader in solar enhanced oil recovery (EOR). GlassPoint Solar established its new office in Kuwait city on March 2014 and has appointed Mr. Abdul Hussain Shehab as Country Chairman. The second company os eSolar - California-based CSP developer - which is planning to enter the Solar-EOR in Kuwait. More information is needed in this field especially about the local companies and the recent international companies joined the Solar-EOR in Kuwait. By Alahdal A. Hussein!10Solar Enhanced Oil Recovery

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