The Haggis Field____________________________________________________________Prosper Version

The Haggis Field

The Haggis field was discovered in June 1994 in the UK sector of the North Sea in a water depth of
300 ft. The field was developed using 5 wells and reached peak production in 1996. Since then, oil
production has decreased rapidly due to increased water production.

Reservoir Properties:
The Haggis sand was deposited in a turbidite environment. It is quite homogeneous with an average
porosity and permeability of 22% and 200 mD, respectively. The reservoir sand, however, is
anisotropic vertically with a Kv/Kh ratio of 0.1. Horizontal anisotropy is 1. The top of the sand was
encountered at 6400 ft TVDSS, and the oil-water contact is at 6500 ft TVDSS.

The reservoir is normally pressured with an initial reservoir pressure of 3300 psia and little or no
aquifer support. Reservoir pressure has declined with production to 2800 psia at present. Pressure
maintenance was not considered when the field was being developed.

Table 1 lists the PVT data for the Haggis fluids at current reservoir conditions.

Reservoir Temp. 150° F

Oil API Gravity 40 deg. API
Gas Sp. Gravity 0.80
GOR 550 SCF/STB
Pb 2115 psia
Bo 1.27
Oil Visc. 0.66 cp
Bg 0.0047
Gas Visc. 0.022 cp
Bw 1.023
Water Visc. 0.67 cp
Water Salinity 200000 ppm
Z-Factor 0.73
Table 1: Haggis PVT Data

Haggis wells:
The Haggis field wells have an economical limit of 1500 STB Oil/d/well; i.e. producing at lower rates
is not economically feasible.

Haggis-3 was drilled in May 1995. It is taken to be the case study for this field as it has average
parameters for Haggis wells. Figure 1 is the completion diagram for Haggis-3. Above the wellhead,
the well was completed with the same 5 1/2" OD production tubing encased in a mud line (no
insulation). The mud line connects the wellhead (on the sea-bed) to the Xmas tree on the platform.

Results of a recent pressure survey from Haggis-3 are listed in Table 2.

Depth 650 1605 2590 3600 4590 5587 6490 ft TVD

Pressure 525 735 990 1292 1629 1920 2266 psia
Table 2: Haggis-3 Pressure Survey

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14/10/21 Class Exercise1
The Haggis Field____________________________________________________________Prosper Version

Haggis-3's well parameters, and results from both well testing and production logging are summarised
in Table 3. Table 3 also contains data on Haggis-1. Haggis-3 and Haggis-1 are essentially twin wells,
except that completion damage has resulted in Haggis-1 being considered the worst well in the field.

Haggis-3 Haggis-1
Oil Prod. Rate 4770 4120 STB/d
Water Cut 30 28 %
WH Flowing Temp. 65 65 °F
Press. at X-tree 445 psia
Skin (Well Test)
2.93 6.9
Relative. Damaged
Zone Perm. 50% 40%
Damage Zone
Thickness 12 Inches
Crushed Zone Perm 64 mD
Area of Block
NB: Well Located in 1153 acres
the Centre of a Block
Table 3: Well Data

Table 4 contains the Relative Permeability Data

Water Oil
Residual Saturation .25 0.3
End Point Relative
0.5 1
Permeability
Corey Exponent 1 1

The Scenario:
The rate of oil production decline in the Haggis field is alarming, and if no action is taken, Haggis will
become uneconomical by the end of this year. The Operators of the field, Big Kahuna Oil Inc., did not
accept this situation and have fired the field's former team leader for improper management of the field.
Big Kahuna has hired you to improve production from the Haggis field.

Your Mission:
Big Kahuna Oil Inc. has asked you to study the field’s potential and submit your report to Heriot-Watt
University. The report shall outline A) the model you have used for your study, B) the potential of the
base case scenario, C) your assessment of production enhancement proposals from the Haggis
engineers, and D) your recommendation for a project which will enhance production from Haggis.
Include all relevant calculations and graphs in clearly labelled appendices.
Save all your well models.

The paragraphs below are an elaboration on the sections of the report you will submit to management.

A) Develop a Well Model for Haggis-3:

Using Haggis-3 as your case study, complete the missing data in figure 2. Next, using the company-
approved software (Petroleum Experts Software Prosper), develop a model for the Haggis field wells so

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14/10/21 Class Exercise2
 The Haggis Field____________________________________________________________Prosper Version

that you can use it to fulfil tasks B and C. Determine how detailed the model should be. Unnecessary
detail means longer computing time and higher costs making you inefficient in managing resources.

1) Identify and list the major components contributing significant pressure drops along Haggis-3’s
completion string. Include only these components in your model.
[5%]
2) Determine the best flow correlation model for Haggis-3 and state the reasons for your choice.
[6 %]
B) Base Case Analysis:
As a good manager, the first thing you have to do is evaluate the potential of what you have in hand at
the moment. To achieve that, you must determine what effect the decline in reservoir pressure and the
increase in water cut will have on Haggis-3's production if nothing is done to improve its production.
In other words, determine the reservoir pressure and the water cut at which Haggis-3 becomes
uneconomical to produce under the current setup. In IPR definition, N.B. Big Kahuna uses Darcy’s
reservoir model with Locke correlation for mechanical/geometrical for skin definition. Deviation and
partial penetration skin is defined with Cinco and Martin Bronz model.

Table B.1 is designed to assist you with that determination.

PRes.
2800 2700 2600 2500 Psia
WC
30% 4770
35%
40%
45%
Table B.1: Haggis-3 Production Forecast
[5%]

You discuss these figures with the field’s engineers. Since artificial lift can not be supported at present
by the production facilities on the Haggis platform, you all agree that you have to start a water injection
scheme to maintain the reservoir pressure at 2800 psia. Determine the production improvements from
the Haggis field with this scheme in place in terms of the maximum water-cut at which Haggis-3 can
produce economically. This will be considered as the base case scenario for this study.

[2.5%]

Save this well model as Haggis-B.out.

You realise that with water injection, you should expect higher water production from the well, and
thus a shorter field life. To overcome this problem, operators often plug the "watered out" perforations.

What are the advantages and disadvantages of such an operation?

[4%]
C) Further Projects:
You phone management and convince them to fund the pressure maintenance scheme. In addition,
they agree to provide a budget for an extra project to improve Haggis’s production. In this section you
must select the best project from your engineers’ suggestions below.
Since production, and thus revenue, from Haggis is greatly affected by water production form the field,
Big Kahuna Oil Inc. defines the best production enhancement project for the Haggis field as the one
that sustains economical production from Haggis-3 at the highest water-cut. Therefore, this should be
one of the criteria you use to select the project you recommend to management.

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14/10/21 Class Exercise3
 The Haggis Field____________________________________________________________Prosper Version

C.1 Production Technology Solutions:

You walk into the team’s senior production technologist office, and give him the good news from
management. He congratulates you, and immediately suggests that the project has to be a production
technology project. He goes on to explain that as the Haggis wells are extremely damaged, acidising
all the wells will make the field very profitable.

a) Determine the benefit from acidising Haggis-3 in terms of the maximum water cut at which the
acidised Haggis-3 will sustain economic production if acidising restores the original rock permeability.
(Use this result to compare the benefits from this project to the other proposed projects, and as a basis
for your recommendations in section D).
[2.5%]

b) Would your answer to a) be different if Haggis-1 was the well in question. What are the implications
of this on the way this project might be carried out if all Haggis wells are to be acidised.
[2.5%]

Save this well model as Haggis-C1.out.

C.2 Suggestions from the Drilling Engineer:

The drilling engineer walks into your office and says that he heard that you were going around the
different departments asking for ideas on how to improve the field's production. He says that he could
have saved you all the trouble because he has the perfect solution. "Side-track the well" he says. He
goes on to explain that he would have gone for a horizontal well. However, since Big Kahuna have
recently had bad luck with drilling horizontal sections longer than 400 ft, a 75° deviated well through
the reservoir is your second best option.
(Note: Big Kahuna applies Kuchuk and Goode Horizontal well model with dP frictional pressure loss
in wellbore). Skin is assumed equal to that of the base case.
a) Given the drilling department’s recent experience with horizontal wells, should you sidetrack Haggis-3
to a 400 ft horizontal well running through the middle of the reservoir, or a 75° deviated well
penetrating the whole of the reservoir.
[5%]

b) Which of these two approaches (horizontal & deviated well) will give a better result and why?
[2.5%]

c) How long (to the nearest 50 ft) would the horizontal section have to be to match the benefits of the
deviated well?
[2.5%]

d) Given the engineering and economic factors and assumptions below, design the optimum horizontal
well (to the nearest 500 ft) to side-track Haggis-3 to.

Length of build-up section is: 2000 ft-MD

Pay-back Time: 6 months
Side-track cost: $850 /ft-MD
Price of Oil: $15 / bbl
Cost of Processing and Shipping: $8 / bbl
Assumptions: 1) Economics based on un-dicounted
cash flows
2) Production rate is constant for the first
6 months
[15%]

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14/10/21 Class Exercise4
 The Haggis Field____________________________________________________________Prosper Version

e) Determine the benefit from side-tracking Haggis-3 in terms of the maximum water cut you can
economically produce the well with if it was side-tracked to the optimal horizontal length determined
above.
(Use this result to compare the benefits from this project to the other proposed projects, and as a basis
for your recommendations in section D).
Note: The horizontal well is placed in the middle of the reservoir.

[2.5%]

Save this well model as Haggis-C2.out

C.3 Another Production Technology Suggestion: Artificial Lift

After lunch, Haggis’s senior production technologist steps into your office. He says that while he was
having lunch, he remembered that Big Kahuna has been quite successful using Electric Submersible
Pumps (ESP’s) in the nearby Tatties field. Additionally, he says that gas lift may be an option as the
well has a high PI and the Big Kahuna has sufficient gas supply from another nearby field. He says that
he is aware of the drilling department suggesting a slanted well, but installing artificial lift will be
quicker and cheaper than side tracking the well. He suggests investigating the installation of an
artificial lift scheme with a target liquid rate of 9000 STB/d.

C.3.1: Electrical Submersible Pumps

a) The Big Kahuna has had success with the following Centrilift pumps in the North Sea.

Pump Motor Cable Size

GC 10000 562 Series #1
HC 9000 562 Series #1
HC 12000 562 Series #2
KC 12000 562 Series #2
Z110 562 Series #2

Given the current conditions choose the optimum pump for Haggis-3 given the details and engineering
assumptions below,

Pump Types: Centrilift

Setting Depth: 5000ft
Minimum Equipment OD: 5”
Maximum Equipment OD: 6.8”
Platform Electricity Supply Frequency: 60Hz

Assumptions:

1) No wear on Pump or motor i.e. wear factor is 0.

2) Efficiency of the gas separator is 100% i.e. separator efficiency is 1.
3) Viscosity and gassiness corrections are used.

Explain the reasons for your choice in your report.

[2.5%]

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14/10/21 Class Exercise5
 The Haggis Field____________________________________________________________Prosper Version

b) As water production is the limiting factor, the production technologist suggests halting water
injection and allowing the reservoir pressure to drop. Determine which pump would be suitable in these
conditions. Table C.3 is designed to assist you with that determination.

PRes.
2800 2600 2400 2200 Psia
Pump
GC 10000
HC 9000
HC 12000
KC 12000
Z110
Table C.3: Haggis-3 Production Forecast with ESP installed,
** denotes rate outwith the operating range of the pump.

Explain the reasons for your choice in your report.

[5%
]

c) Using your choice of pump from part b), determine the benefit from installing an ESP in Haggis-3 in
terms of the maximum water-cut at which the optimised pump will sustain economic production prior
to suspending water injection (i.e. no depletion, reservoir pressure 2800psia).
(Use this result to compare the benefits from this project to the other proposed projects, and as a basis
for your recommendations in section D).

[2.5%]
Save this well model as Haggis-C3a.out.

C.3.2: Gas Lift Design

a) Given the current conditions carry out a gas lift design for Haggis-3 with the details and
engineering assumptions below,

Max casing head pressure: 1200 psi

Gas available for injection: 20MM scf/d
Injected gas gravity: 0.6
Maximum setting depth: 3900 ft
Valve differential pressure: 100 psia
Minimum spacing: 450 ft
“Kill” brine density(Static gradient): 0.465 psi / ft
Minimum safety margin (Casing closing pressure margin)
50 psi
Valve type Camco R-20(Normal)

Assumptions:

1) Production tubing is unaltered.

2) Unload the tubing full of static fluid against the wellhead
pressure (i.e. static fluid to 0ft MD).
3) No transfer margin is required.

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14/10/21 Class Exercise6
 The Haggis Field____________________________________________________________Prosper Version

Show the gas lift design plot in your report, determine the required gas injection rate for the design
production rate and explain briefly the different roles of valves in your design. State the depths of your
valves. Should the unloading valves be open or closed when assessing gas lift capabilities?

[6%]

b) Plot the Gas lift performance curves and determine the technical optimum injection rate as the
reservoir pressure declines and summarise the results in Table C.4 (Answer Form).

PRes.
2800 2600 2400 2200 2000 Psia
Technical
optimum
injection rate
MMscf/day

Table C.4: Technical optimum gas injection rate for Haggis-3.

Why are technical optimum injection rates not applicable in practice? What other possible factors have
you considered in completing the table C.4? Explain to management the reason why greater gas
injection rates do not result in greater production as the reservoir declines.
[6
%]
c) Redesign the Gas Lift scheme using the optimum gas injection rate for 2800 psia. Determine the
benefit from installing Gas Lift in Haggis-3 in terms of the maximum water-cut at which the optimised
injection rate will sustain economic production.
(Use this result to compare the benefits from this project to the other proposed projects, and as a basis
for your recommendations in section D).

[2.5%]
Save this well model as Haggis-C3b.out.

C.4 Suggestions from the Facilities Engineer:

Walking to your car after a long first day at the new job, the gentleman behind you reintroduces himself
to you as the Haggis field's facilities engineer. He shares with you a very interesting discovery he made
today. He explains that if you agree to provide a dedicated line from the Haggis wells to the low-
pressure separator, you can lower the average Xmas tree pressure to only 100 psia. He points out that
suggestions from the other department have large uncertainties associated with them since they deal
with the subsurface, while his suggestion is simple and neat, and will solve all of the field's problems.

a) Evaluate the benefits from lowering the Xmas tree pressure, in terms of the maximum water-cut
you can economically produce Haggis-3 with, after lowering the Xmas tree pressure to 100 psia.
(Use this result to compare the benefits from this project to the other proposed projects, and as a basis
for your recommendations in section D).
[2.5%]
Save this well model as Haggis-C4.out.

b) Report the advantages and disadvantages of such a scheme.

[4%]

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14/10/21 Class Exercise7
 The Haggis Field____________________________________________________________Prosper Version

D) Recommendations to Management:

1) Assess the production enhancement projects proposed by the Haggis field engineers in section C above
and compare them to one another and to the base case scenario. Put in mind that Big Kahuna Inc. has
set the ranking criteria for these projects to be the maximum water-cut at which Haggis-3 can sustain
economic production (i.e. > 1500 STB oil/d).

2) Based on this assessment, recommend to management a plan of action: either recommending to

maintain the base case scenario, or to execute one of the proposed projects.
[5%]
3) By setting the maximum water cut as the ranking criteria for the above projects, a number of risks have
been overlooked by this assessment, all of which add to the uncertainty of its results and your
recommendation. As the Haggis field team leader it is your duty to report and account for these risks to
management.

Identify three major risks that have not been included in this assessment. Briefly explain how each one
could add to the uncertainty of this assessment, and prescribe the necessary steps that need to be taken
to account for their effects.
[9%]

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14/10/21 Class Exercise8
 The Haggis Field____________________________________________________________Prosper Version

Appendix
Further Instructions on The Haggis Field Exercise

Please read and follow the following instructions when carrying out the Haggis Field exercise.

• Read the exercise carefully and fill-out the missing data in Figure 2. With the aid of this appendix,
attempt to carry-out this exercise.

• In most sections of this exercise you have more information than you need. This is to help you verify
that the model you are using is correct.

Option Summary
In option summary set well to producer with no artificial system in your base case model.

PVT input Data and IPR.

• Enter the reservoir Fluid Parameters. Decide which, if any, of the correlation model fluid parameters
should be matched to the actual fluid parameters. Check that the reservoir fluid model calculates fluid
parameters' values that conform (more or less) to the actual reservoir fluid parameters.

• In IPR data, select Darcy Model type to define layer parameters. Use input data to define parameters
for skin and skin calculation. Make sure that the calculated skin matches the one obtained from the
well test.

Equipment data input:

• Before you enter any other data, make sure that the data in the Xmas tree node is in accordance with
Figure 2.
• Next, enter well deviation survey and equipment data.
NOTE: Set the last row of data in both well deviation and equipment data to the mid-perforation depth.
NOTE 3: Enter all possible points in the well deviation data table.

Nodal Analysis:

• In Calculation Summary

 Gradient match your pressure data and choose the appropriate out flow correlation.

 Use the system analysis to define your operating points.

 Ensure your correlation with tuned parameters is used in your future work.

You now have a tuned model that you can use as a base case throughout the exercise.

Note and justify any assumptions made in your models.

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14/10/21 Class Exercise9
The Haggis Field____________________________________________________________Prosper Version

Haggis Field, Well 3 Figure 1

Completion Schematic
Dev Min Max MD-RKB TVD-RKB
degs ID" OD" ft ft
Tubing hanger 350

10 3/4" Casing 5.5", 17 ppf tubing 4.767 5.953

1/4" Encapsulated control line

Flow coupling 4.767 5.953
SSV: T-5EMS TRDHSV w/ 3.5" AF Profile 3.500 9.200 850

Flow coupling 4.767 6.072

5.5" Pup Joint 4.767 5.953
5.5", 17 ppf tubing 4.767 5.953

10 3/4" x 9 5/8" X-over

5", 18 ppf Tubing 4.151 5.364 1000 1000

5.5" Tubing 4.767 5.953 1500 1500

2700 2695

5-1/2" Flow Coupling 4.767 6.072

5-1/2"Pup Joint 4.767 5.953
5-1/2"Pup Joint 4.767 5.953
Polished Bore Receptacle 4.872 8.125 3944
5-1/2" Pup Joint 4.767 5.364 3950
KC1-22 Anchor 4.884 6.468 3957
9 5/8" SAB-3 Packer 4.750 8.150 3972
7" MOE (Mill-Out Extention) 6.185 7.027 3988
X-over, 7" New Vam B x 5" Fox RS P 4.151 7.693 4000 3989
5" Pup Joint 4.151 5.364
5" Pup Joint 4.151 5.364
5" Flow Coupling 4.151 6.072
4.135" AOF Wireline Nipple 4.135 6.050 4102
5" Flow Coupling 4.151 6.078
5" Pup Joint 4.151 5.364
5" Tubing Joint 4.151 5.364
5" Pup Joint 4.151 5.364
5" Flow Coupling 4.151 6.077
4.125" AOF Wireline Nipple 4.125 5.950 4765
5" Flow Coupling 4.151 5.364
5" Pup Joint 4.151 5.364
5" Tubing Joint 4.151 5.364
5" Pup Joint - perforated 4.151 5.364
5" Flow Coupling 4.151 6.124
4.000" AOF Wireline Nipple 4.000 5.950 5500
5" Flow Coupling 4.151 6.077
5" Pup Joint 4.151 5.364
5" Tubing Joint with centraliser 4.151 5.364
5" Pup Joint 4.151 5.364
5" Tubing Joint 4.151 5.364
Wireline Reentry Guide 4.151 5.451 5600 5577
7" Liner 6.059 7.512 5600 5577
6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512
Top of the Reservoir 6.059 7.512 6480 6450
6.059 7.512
6.059 7.512
7" Liner (Cemented) 6.059 7.512
6.059 7.512 6530.5 6500
The Haggis Reservoir 8-1/2" Hole 6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512
6.059 7.512 6581 6550

Casing Liner Tubing Perforations:

Size, in 10.75 9.625 7 5 1/2 5 6480 to 6581 (MD) 0.38" holes @ 4SPF, 90° Phasing
Weight, ppf 55.5 53.5 29 17 18 9" shot penetration
Grade N80 L80 L80 L 80 L 80
Steel
Thread NVam NVam EU EU RKB to ... Water Completion
MD, ft Top: 350 1000 5600 350 4000 ML MSL Depth Date
Bottom: 1000 5900 6550 4000 5600 350 ft 50 ft 300 ft Long time ago
ID, in 9.604 9 6.059 4.767 4.151 Supervisor: The Boss Rig
Tubing Roughness 0.0230 Engineer: Joe Someone Shark Co.
Cap (bbls/ft) Drg No.: Rev: 0 Date: Today

Figure 1: Haggis-3 Completion Diagram

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14/10/21 Class Exercise10
The Haggis Field____________________________________________________________Prosper Version

Depth
ft TVD-RKB
0 RKB / Xmas Tree

MSL

Riser/Mud Line
ft

Seabed / Wellhead

ft

SSV

ft

Top of Reservoir

ft

OWC

Figure 2: Haggis-3 Well Schematic

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14/10/21 Class Exercise11