Schlumberger to deploy horizontal drilling in Russia
TNK-BP from Russia and the French-American oil field service company Schlumberger signed a cooperation agreement to develop solutions for hard-to-recover oil and gas reserves.
To implement this agreement, TNK-BP and Schlumberger selected the Severo-Khokhryakovskoe field in Western Siberia.
Located in Western Siberia, the Severo-Khokhryakovskoe field, is one of the largest TNK-BP’s license block with more than 360 million barrels (50 million tonnes) of crude oil recoverable reserves.
The production in this Severo-Khokhryakovskoe field had been suspended by TNK in 2002 as inefficient, too much time and money consuming, and rising doubt about the effective recoverable reserves.
Then under the alliance with BP, TNK-BP resumed the production in 2010 in drilling new wells.
The first collected well data confirmed the potential reserves of the Severo-Khokhryakovskoe field and encouraged TNK-BP to drill further wells.
Following these efforts, the oil flow rate at Severo-Khokhryakovskoe field reached a satisfactory level but still leave place for significant improvement.
The exploration and production challenges of the Severo-Khokhryakovskoe field rely on the high heterogeneity of the reservoir structure and the tight formations in the crude oil pockets.
In this context, TNK-BP and Schlumberger are targeting to increase the production per well and to establish the optimized scenario to develop the whole field.
In respect with TNK-BP and Schlumberger experience in similar tight oil fields, they intend to use the multistage fracturing technology with horizontal wells fitting better with the structure of the Severo-Khokhryakovskoe field reservoir than conventional vertical drilling.
TNK-BP to pay production incentive to Schlumberger
For the first phase of their cooperation agreement, TNK-BP and Schlumberger will write down the most cost efficient program of development of the field and the oil recovery enhancement (EOR).
This program will have different steps.
On a first phase, TNK-BP and Schlumberger are planning to drill first series of eight wells, including six horizontal wells to perform multistage hydraulic fracturing.
This first phase should be completed at the end of 2013.
In addition to the technical cooperation between TNK-BP and Schlumberger, the agreement includes a commercial and financial chapter to reward the production performances.
The Severo-Khokhryakovskoe pilot project has also been selected to form a new type of cooperation between an operator and an oil service company where both can share the benefits of their improvements in an application which directly impact the production and financial results of the field.
For this pilot project TNK-BP and Schlumberger agreed on Key Performance Indicators (KPIs) and will compared actual results with targeted expectations.
According to the term of the contract, the contractor will receive a remuneration reflecting the production efficiency driven by the volume of barrels produced and the corresponding total ownership costs.
TNK-BP was subject last month to one of the largest ever $55 billion transaction between Rosneft and its previous shareholders BP from UK and the consortium of Russian billionaires Alfa Group/Access Industries/Renova (AAR).
During BP‘s era, TNK-BP delivered outstanding financial results precisely because of the efficient cooperation between the most talented BP engineers with the well experienced TNK’s exploration and production teams.
With BP leaving direct interests in TNK, while taking stake in Rosneft, the cooperation agreement signed with Schlumberger is to maintain the scheme of technical and financial alliance which has proven to over perform on the last years.