Breathing new life into a mature oil field is a challenge that has been facing national and private oil companies for almost as long as the oil industry has been in existence. Oil production from mature fields accounts for approximately 70% of the worldwide oil production. Unfortunately, more often than not, mature oil fields equate to high cost and low productivity, making mature fields unattractive when competing for resources with other options in a company's portfolio of investments.
The re-development project presented in this and its companion paper1 (SPE 104034) looked at the technical and business opportunities for two main re-development components. The first component aims to beat the natural production decline curve via the implementation of a massive infill drilling program; the second component aims to maintain production through the integration of Improved Oil Recovery (IOR) methodologies.
A multi-disciplinary team studied and recommended the implementation of a program to drill a massive number of infill wells in a portion of Block 10, operated by Petrobras Energia Peru S.A. in the Talara area of Peru, to improve recoveries in a column of over 2,500 ft of shaly sands, with absolute permeabilities not higher than 1 md and with average well spacing already in the order of 20 Acre. A second objective for the study team consisted of evaluating the technical feasibility for a massive waterflood project, including a preliminary design of the surface facilities necessary to collect, process and inject seawater. The third objective consisted of investigating the technical feasibility for miscible gas flooding into an equally tight reservoir, together with the facilities to collect and inject the gas. Both injection projects required consideration of the processing needs for the incremental oil, water and gas production. Traditional optimization technologies were also revisited, including the hydraulic fracturing of the infill wells to attain initial productivity gains of 25% with respect to that of current wells, but without impacting the completion cost.
Based on analytical and numerical analyses, it was found that a massive waterflood would extend the production plateau reached by infill drilling and produce additional reserves. The study also found that to be able to displace oil in the Mogollon formation it would be necessary to inject gas at pressures in excess of 3,000 psi. The approach and methodologies developed for this project can be used to give new life to mature oil provinces around the world.
Introduction
The Block 10 (Lote X) of Petrobras Energia Peru S.A. (PESA) is located in the Talara basin, in the northwestern coastal region of Peru (Fig.1), and has an area of 470 sq. Km, all onshore. Oil and gas has been exploited in Block 10 since the early 1910's, mainly from formations of Tertiary age lying at depths ranging from 500 ft to 7,000 ft. As of today, there are in excess of 5,600 wells drilled in Block 10 and the current production is about 12,500 bopd. Perez Companc S.A., a company that was later acquired by PESA, started operations in the block in December 1996. Paper SPE 104034 provides additional background information on the structural complexity of the block, general stratigraphy and the reservoir management structure put in place by PESA. For the sake of completeness, a generalized stratigraphic column of Block 10 is included as Figure 2, while Figure 3 shows an arbitrarily selected cross section of Block 10 included here to illustrate the severe degree of faulting, which is a problem particularly important when investigating the feasibility of re-development opportunities such as waterflooding or miscible gas flooding.