KEY ELEMENTS TO REVIVE THE MATURE HANDIL FIELD:

LIGHT WORK OVER, INFILL WELL AND EOR

Team Members
G&G: Hotma Yusuf, Yogi Priyadi, Achmad Riski, Lulus Saputra, Taufik Anwar
RES: Nugraha Adimarta, Emmanuel Cassou, Henricus Herwin, Iswahyuni Hayati, Habib Alfian, I-Made Agus Yasa, Warsito, FIldy Iswara
WPT: Budiman Radjab, Iskandar Saleh, Deddy Prameswono, Cici Roshida
WLS: Hery Setyawan, Riza Agusta, Farid Hadiaman
Drilling & Completion : Moh. Sofyan, Thomas Dooley, Octo Hafirudin

Informal Technical Forum – July 2007

Presentation Outline

Introduction

Geological & Reservoir Studies

Three Elements to Revive the Mature Handil Field

ƒ Light Work Over (LWO)
ƒ Infill Well
ƒ Enhanced Oil Recovery (EOR) : Lean Gas Injection & Surfactant Injection

Conclusion

2 - Informal Technical Forum – July 2007

1
Handil Field
Indonesia, Mahakam Delta

PSC Total/INPEX : 50% / 50%

Licence expiry : 30.03.2017 (Ext 31.12.2017)
Number of wells : 391 (32 WI, 3GI, 1AI)
Surface : 40 km2
Pay Zone : 200 - 3300 m
No. Accumulations : 555

Production start-up : September 1975

Plateau production : 1977 (170000 bbl/d)
Cumulative Prod. : 840 MMstb (RF = 48% )
1.6 Tcf (RF = 57%)

Recovery mech. : Water drive (Shallow)

: Water injection (80 KBWPD)
: EOR gas injection (30 MMSCFD)

HANDIL FIELD

3 - Informal Technical Forum – July 2007

Historical Oil Production

25
200 21,000 bopd
START WATER INJECTION
20
180
Oil Prod (Kbopd)

Mid 03
15
160
START GAS LIFT 10 12,500 bopd

140
5
Oil Prod
Oil Prod. (Kbopd)

120
0
Jan-98 Jan-01 Jan-04 Jan-07
100

80
Nov 1995
START 1st GI
60
Jan 2000
START 2nd GI
40

20
ND WI
EOR Ph1 EOR Ph2
0
Jul-75

Jul-77

Jul-79

Jul-81

Jul-83

Jul-85

Jul-87

Jul-89

Jul-91

Jul-93

Jul-95

Jul-97

Jul-99

Jul-01

Jul-03

Jul-05

Jul-07

32 years of production Today production 21.000 bopd

4 - Informal Technical Forum – July 2007

2
 Zonal Characteristic
VERY SHALLOW (OIL)
• Strong Aquifer
• Poorly Consolidated > Sand Control
VERY SHALLOW
• Less Developed (RF 27%) > HZ Wells
• Viscous Oil (5 – 15 cP) > ESP
R0-09

SHALLOW (OIL)
OIL POOL • Strong Aquifer
SHALLOW - UPPER
R1
• Poorly Consolidated > Sand Control
• Well Developed (RF 55%)
• Quick Water Breakthrough > Multi-target Well
R4-3 > GL > ESP

MAIN ZONE (OIL)

MAIN
• Moderate Aquifer
• Consolidated Sand>No Need of Sand Control
R 16
R 16
• Well Developed (RF 48%)
R 20 • Quick Water Breakthrough > Multi-target Well
GAS POOL • Containing Gas Cap> Not compatible for ESP

R 27 DEEP ZONE (GAS)

• Gas Target (Tight Reservoir)
R 30

5 - Informal Technical Forum – July 2007

Handil Field Review - Methodology

IRAP Master Project Dynamic Synthesis Well Definition

‰ Integration of 3D ‰ Well data acquisition

Geological Model
‰ Fluid Monitoring Map
‰ Markers, wells, reservoirs ‰ Oil Spot Mapping
‰ Detailed Reservoir Studies
maps and petrophysics
and Black Oil Reservoir ‰ Light Work Over (LWO)
‰ Better Workflow Simulation
‰ 3D Well Design (Infill Well)

A PLAN FOR EVERY RESERVOIR / EVERY WELL

6 - Informal Technical Forum – July 2007

3
LWO Operation
Light Work Over
ƒ Well Intervention without pulling out the
completion
ƒ Cementing the water-out reservoirs
ƒ Perforating the remaining potential

LWO Unit and Policy

ƒ 3 Slickline units, 2 snubbing units (one
with pumping unit for cementing), 1
Electric line unit (Shared w/ Tambora,
0.75-0,25)
ƒ Active LWO Campaign, 25 per year

Advantage & Disadvantage

ƒ The cheapest way to recover the
remaining oil
ƒ More and more difficult due to aging well
(Many leaks and fishes).
ƒ Not all potential targets can be developed.

7 - Informal Technical Forum – July 2007

Handil LWO Result 2005 & 2006

Light Work Over Results

LWO Oil Gain 2000-2006
7000
2005 RESULTS
6000
• 19 Successful (75% success ratio)
5000
Oil Pro d u ctio n , Bo p d

History Forecast • 7 Failures

4000
• Incr. reserves ~ 3.4 MMbbl (Up to 2017)
3000
• Total Cost ~ 2 MMUS$
2000
2006 RESULTS
1000
• 14 Successful (60% success ratio)
0
00 01 02 03 04 05 06 07 08 09 • 8 Failures
n- a n - a n - a n - an - a n - an - a n- a n - a n -
Ja J J J J J J J J J
• Incr. reserves ~ 1 MMbbl (Up to 2017)
2000 2001 2002 2003 2004 2005 2006
• Total COST ~ 2.5 MMUS$

8 - Informal Technical Forum – July 2007

4
 Handil Oil Redevelopment Well Types
TYPE A TYPE B TYPE C
Shallow Horizontal Deviated Well Deviated Monobore
~15 Days ~25 Days ~18 Days
Sand Screen Gravel Pack No Sand Control
Gas Lift then ESP Gas Lift then ESP Gas Lift
Multi Target Multi Target

Shallow Zone
200m -1500mss

Main Zone
Down to R16
1500mss-2500 mss

Gas Pool
Below R16

9 - Informal Technical Forum – July 2007

H-LA-267 (TYPE A, Drilled in 2005)

H-LA-267 Production - Forecast vs Reality
POP: NOV 05
1500 400

300
Cum Oil Prod (Kbbls)

1000
Fluid Prod (Bbl/d)

Today Prod 200

= 300 bopd
500
100

0 0
Nov-05 May-06 Nov-06 May-07

Oil Prod Water Prod Cum Oil Forecast Cum Oil Real

H-LA-267.G2
Drain of 237 m with netpay of 146 m Verticalized

Res 4-9 H-LA-267.G2

RO-02
TOP LAYER-1

BOT LAYER-1
TOP LAYER-2

2 m thick
OWC at 455 mSS 5 m above OWC

Comments:
Net Sand Expected 250 m Found 268 m
Net Pay Oil Expected 200 m Found 170 m 1. Water breakthrough one month after POP, sooner
than expected.
Cum Prod = 303.5 Kbbls 2. SRPL: Water coming from layer 2. However the layer
Well Cost + Connection = 5.25 MMUS$ is also producing significant amount of oil and water
shut-off is technically difficult.
BEP @ 50 USD = 5 Months
3. Real Cum Oil is slightly below forecast, ESP to be
10 - Informal Technical Forum – July 2007 installed in 2008

5
 H-YA-263 (TYPE B, Drilled in 2005)
POP: FEB 06
2500 100

2000 80

Oil rate bbl/d

1500 60

BSW (%)
Today Prod
1000 40
= 800 bopd
Res 8-5 SO 500 20

Jan 07
Res 8-91 aS 0 0
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10
oil history BSW history BSW expected oil expected

Res 9-8a SO 2500 1500

Res 10-0 cSO 2000

1000

Cum Oil (Kbbls)

Oil rate bbl/d
1500

Res 10-8a SO
1000
Res 11-0 bS 500

500

0 0
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

oil history oil expected cum oil history cum oil expected

Net Sand Expected 167 m Found 88 m
Net Pay Oil Expected 33 m Found 31 m
Cum Prod = 652 KBbls
Well Cost + Connection = 5.75 MM US$
BEP @ 50 USD = 2 months
11 - Informal Technical Forum – July 2007
Comments:
1. Two zones with GP and three zones with Swelling
Packer & Sand Screen. Z4 is fail during completion, Z5 is
fail after 4 months. Next HSO will only be completed with
GP.
2. ESP installed in Mid April 2007, GLR 175 scf/bbl (High),
no significant production impact is observed.
3. BSW evolution is slower than expected. Real Cum Oil is
slightly above forecast.

H-LB-277 (Phase 1, Drilled in 2006)

POP: JUN 06 H-LB-277 Production - Forecast vs Reality

1500 500

Today Prod =
300 bopd 400
C u m O il P ro d (B b ls )

1000
F lu id P ro d (b b l/d )

300

200
500

100

0 0
May-06 Nov-06 May-07

Oil Prod Water Prod Cum Oil Real Cum Oil Forecast 1P Cum Oil Forecast 2P

Comments:
1. The best HMO Wells.
2. Selective bottom up perforation. 6 targets
Net Sand Expected 120 m Found 146 m remaining.
Net Pay Oil Expected 69 m Found 50 m
3. Real Cum Oil is far below forecast since all targets
were assumed to be perforated at the same time in
Cum Prod = 187 KBbls the forecast calculation
Well Cost + Connection = 4.5 MM US$
BEP @ 50 USD = 3.5 Months

12 - Informal Technical Forum – July 2007

6
 Handil: EOR Ingredients

Water Flooding Lean Gas Injection Microbial EOR (MEOR)

250,000
Water injection rate (BWPD)

After Gas Injection

200,000 Gas Injector ‰ Pilot Project, in corporation with
150,000
OGRINDO, ITB
100,000 ‰ Micro / Well Level
50,000 Sorwg

0
1974

1979

1984

1989

1994

1999
Gravity drainage
D ate
Sorwg = 5 – 20 % Surfactan Injection

‰ 81 Reservoirs ‰ 11 Reservoirs ‰ Pilot Project

‰ Pressure Maintenance ‰ Remobilized capillary trapped oil ‰ The future of Handil
‰ Oil Sweep ‰ Gravity Drainage
‰ Start 1978 ‰ Start 1995

3 EOR TECHNIQUES TO MAXIMIZE OIL RECOVERY

13 - Informal Technical Forum – July 2007

Handil EOR Lean Gas Injection Overview

Handil EOR Gas Compressor Design
Capacity = 90 MMscfd
HSA326GI
(1st Phase)

HH2
(1st Phase)
EOR Compressor

HM356
(2nd Phase)

EOR Gas Compressor

14 - Informal Technical Forum – July 2007

7
 Lean Gas Injection Mechanism
After Water-flooded Water Injector
Initial

Oil-rim
GOC
Sorw

WOC

Natural Depletion Sorw 26.5 %

Gas Injector
After Gas Injection
Remaining oil
• Oil rim trapped in the initial gas cap
• Residual oil trapped in the water-flooded zone

Gas Injection Impact

• Pressure Support
Sorwg • Sweeping the oil rim back to the oil producers
• Re-mobilizing the residual oil (Sorw to Sorwg)
Gravity drainage • Gravity drainage mechanism

Sorwg = 5 – 19.8 %

15 - Informal Technical Forum – July 2007

Handil Lean Gas Injection History

EOR GAS INJECTION PHASES start in

1995 (Phase I) and in 2000 (Phase II) in
Gas Caps of big reservoirs of Main
Zone MAIN ZONE

PHASE I: Immiscible Gas Injection in 5 reservoirs of Main Zone:

18-6N, 19-0N, 19-7aN, 20-3aN, 21-3N

PHASE II: With the good results of the Phase I, decision to extend the
Gas Injection to 6 other reservoirs of Main Zone:

15-8S, 18-7S, 19-45S, 20-3aS/35S, 21-3aS, 22-0aN

16 - Informal Technical Forum – July 2007

8
Handil Injection Status
6000 240
Oil Production
Normal Gas Injection
5000 200 Observed Oil
decline without Base Case production

O il P ro d u c tio n (b o p d )
gas injection with Gas

G a s In je c tio n (M M s c fd )
4000 160 Injection
High Gas
Export
3000 Demand 120

2000 80

1000 40
Gas Injection
Rate
0 0
Nov-95 May-97 Nov-98 May-00 Nov-01 May-03 Nov-04 May-06

Date

Tertiary Lean Gas NET Injection: 30 MMSCFD UNTIL 2008 (11 Res)

Oil production increased ~5000 BOPD

Coarse estimate: + 5.5 MMbbl thanks to EOR

17 - Informal Technical Forum – July 2007

19-0 N Integrated Study Work Flow

Well correlations Re-mapping

Reservoir Simulation
3D modelling/
Volumetric IRAP-RMS

Tracer Injection
Dynamic Synthesis MB computation Chemical Tracer (perfluoromethylcyclohexane -PMCH)
Project Duration : 6 months
OBJECTIVE

Evaluate 19-0N’s remaining reserves and define optimum reservoir management strategy on EOR
reservoirs

18 - Informal Technical Forum – July 2007

9
 Reservoir Management Strategy
GI pushed oil to the first row wells.
Yet, the wells must be Shut-In in
the right time to ease the gas
HSA326 invasion to the next rows.
HSA 326 GI GI
HD319LS
(Row 1)
Production Row 3

Production Row 2 HD414LS

(Row 2)
Production Row 1

HV412LS
(Row 3)

Recommended Cycling = 30%

North-South Cross
Section Optimum GOR (the best compromise between fast and
high oil recovery) = 20 Mscf/stb

19 - Informal Technical Forum – July 2007

Handil EOR Projects: MEOR

Since 2004, TOTAL has a partnership with OGRINDO for developing Microbial
EOR

Principle:

ƒ Inject bacteria and food into the formation via wells with high BSW
ƒ Let the wells shut-in for a certain period of time
ƒ Reopen the wells. Thanks to bacteria activity, productivity is expected to be
slightly improved as well as reservoir characteristics

Lab studies are on-going for defining the most appropriate bacteria system

A pilot phase could be seen in 2-3 years time

20 - Informal Technical Forum – July 2007

10
 Handil EOR Projects: Surfactant/Polymer injection

Handil Field is a very mature field with many oil reservoirs water-rised
(water production only)

Interesting amount of Oil is still present in these water-rised reservoirs

First EOR project has been to inject dry gas to remobilize this Oil.
Result of the project is excellent.

TOTAL would like to implement an advance

technique for Handil, based on surfactant/polymer
injection

21 - Informal Technical Forum – July 2007

Surfactant effect at the pore level

Present situation Possible Evolution

trapped oil at
trapped oil Mobile
lower Sorw
at Sorw producible Oil
Injection of
Surfactant
+
mobile water Injection of
Polymer

• Only water phase is mobile
• Still some Oil present inside the pore
• Remaining Oil saturation to be
evaluated but could be up to 30%
• in ‘Do Nothing’ case this Oil is lost
mobile water
• Thanks to surfactant part of the trapped Oil
becomes mobile and so producible
• According to TOTAL knowledge the new
remaining Oil saturation may go down to 5%
• Up to 80% of the initial trapped Oil may be
remobilized (ideal case)

Oil volumes at stake are significant, project very attractive, pilot phase is needed

22 - Informal Technical Forum – July 2007

11
 Surfactant pilot candidate
2.0
421
Reservoir 16-4aN HAB-334 HAB-436 HF
A HS
8.5
424 427
4.7
Handil Reservoir 16-4aN HH-440 HT
428
14.2
7000 10.8 HA
HR 2
HR 17.2 HF-
9.7 12.8
Oil Rate 16-4aN 20.4 12.5 227
6000 HAB-341 HAB-441 HR
B
17.412.1 HR
331HH 11.0A13.8 HR 1
HR 340

B HR 229 HR 430 A
5000 232 B 7.3
HR 5.5BHH 330
3334.0
HH HA
HHB B 5.0 3362 12.0
HH 12.1 B9.5 HA
Oil Rate bbl/d

15.8 337 338

4000 HO 235 HH 435 11.0
24.1 HH 334 B
239 12.1 339 HA 12.5 HH
A HH HA436
440
HM 3 B
10 340
3000
HHB
342 A 341 B 11.8
12.7 343 441
146 A
12.1 H1
7
HA
HHB 6.98HM HM HQ A
5.18H
2000 146 11.4 244 HC 444 HE
HM
5 HM 1
A 1B1
10.9 443
HC 245
6.95 A 7.84 339HE B
1.49

+
247 HM 346 6.99 446
1000 B
251 HS348
HE
4.5 O5 HEB
349 9
HE 449
0 HE 1 10.5
6.5 450
Jan-77 Jan-80 Jan-83 Jan-86 Jan-89 Jan-92 Jan-95 Jan-98 Jan-01 Jan-04 Jan-07 HC HK
10.47 9.28
353 HXA 451
354 H HX
9.9
1211.4 4553.99
HC HM 351 HE
H 351
4.04 356 456
A A
Production of this reservoir stopped 257
HY
6

due to too high water production 7.8 HX 1

A HX
360 362

Cumulative Oil: ~8 MMbbl HL

2.78
361

OOIP (base case): 16 MMbbl HL

23.9
269
22.2
HL
HL
5.6
267
283

Possible tertiary oil recovery for 16-4aN: HLB

0 to 3 MMbbl
10.0
178A

23 - Informal Technical Forum – July 2007

Conclusion

ON GIANT FIELDS WITH HIGH RECOVERY, QUANTITY OF REMAINING OIL IN

PLACE REPRESENTS A LARGE POTENTIAL TO BE VALUED

‰ Light Work Over and Infill Well with Intelligent Completion are solutions to recover by-passed oil
and un-drained areas

‰ Non-Miscible Gas Injection is a valuable technique for a mature field like Handil, however in Total
E&P Indonesie’s context, Gas Export is an important issue and can be a constraint for Gas Injection
Project

‰ Surfactant Injection is the future to once again revive the mature Handil Field. Meanwhile, other
EOR methods, such as MEOR, are open for trial/implementation

‰ Key factors for successful implementation are:

9 Comprehensive integrated studies and modeling to be able to anticipate the future
9 Reactive reservoirs monitoring
9 Efficient management of available resources and constraints (Good team work is very
important)

24 - Informal Technical Forum – July 2007

12