Trends in global and regional utilization of

EOR technologies

György Palásthy

SVP, Production and Development

Szolnok, Hungary

23 April, 2013

Worldwide EOR Outlook

► EOR could help to unlock 300 billion more barrels of oil, equal

to 10 years’ production at today’s levels.

► Each reservoir requires a tailor-made approach to EOR.

► 2/3 of word oil production comes from mature oil fields (with

over 30 year production).

►How to improve the performance of brownfields?

Weyburn EOR project

Operated by EnCana – Canada,

Saskatchewan

Examples for IOR/EOR effects on field life cycles

Effect of CO2 gas injection into Budafa-Lovászi fields from late 60’s

Classification of Oil Recovery Processes

Primary Recovery

Water flooding Gas flooding

Production control

Infill drilling

Horizontal well etc.

Original well-inflow

Natural flow Artificial lift

Corrected well-inflow

Simulation Profile

modification

Secondary Recovery

Acidation

Fracturing

etc.

Polymers

Gels

etc.

Displacement by

Injected water and

gas

Production by

reservoir energy

Tertiary Recovery

Gas Thermal Chemical Other

Hydrocarbon

CO2

N2

Flue gas

Air

WAG

etc.

Steam soak

Steam drive

Hot water

Combustion

Electromagnetic

etc.

Polymer

Micellar-

polymer

Caustic

Foam

etc.

Microbial

etc.

Application of

sophisticated energy

Pressure

maintenance

EN

HA

NC

ED

OIL

RE

CO

VE

RY

(EO

R)

IMP

RO

VE

D O

IL R

EC

OV

ER

Y (

IOR

)

– E

XT

ER

NA

L E

NE

RG

Y

NA

TU

RA

L E

NE

RG

Y

CO

NV

EN

TIO

NA

L O

IL R

EC

OV

ER

Y

IMP

RO

VE

D O

IL R

EC

OV

ER

Y (

IOR

)

EF

FO

RT

S F

OR

RE

CO

VE

RY

IN

CR

EA

SE

CO2 injection (miscible)

Schematics of different EOR methods

Chemical EOR (polymer, surfactants, etc.)

CO2 injection (immiscible)

Thermal EOR:

Hot water

Steam flood

Huff ‘n’ puff

SAGD

Combustion, etc.

EOR projects in the world

3.5% of world

production

EOR PROJECTS IN DIFFERENT COUNTRIES

Brasil Steam, CO2, MEOR

Indonesia Steam

Saudi Arabia Steam, CO2

Egypt Cyclic steam

Germany Steam

Netherlands Steam

Trinidad Steam, CO2

Turkey Steam

Venezuela Steam, SAGD,

HC, Surfactant, Combustion

Colombia Steam

Kuwait Steam

China Steam, Polymer

Mexico N2

Albania Steam

Ecuador Steam

Oman Steam,

Sour gas, Polymer

Abu Dhabi CO2

EOR projects in the world

Thermal Gas Chemical

Chevron, ExxonMobil,

Occidental, Encone, Area

Energy, Dereck Oil and Gas,

Seneca, Stockdale, etc.

ConocoPhillips, Anadarco,

Apache, Devon, ExxonMobil,

Hess, Kinder Morgan,

Occidental, BP Alaska, Great

Western Drilling, Core

Energy, etc.

Cano, Occidental,

Chaparell Energy

Key players in USA active EOR projects

37 operator company

Thermal Gas Chemical

Cenovus, CNRL, Husky Oil,

Imperial Oil, Shell Canada

Apache Canada, Devon

Canada, Conoco,

ExxonMobil, Husky Oil,

Imperial Oil, Cenovus,

Pengrowth, Penn West

Energy

Cenovus, CNRL

Key players in Canadian active EOR projects

12 operator company

Middle East: Huge potential - possible

business development target

Key players in active EOR projects out of USA

and Canada

Brazil: Petrobras (CO2, MEOR, Steam)

Germany: Wintershall (steam)

Austria: OMV (polymer)

Indonesia: Caltex (steam)

Turkey: TPAO (CO2)

Venezuela: PDVSA E&P (gas, surfactant, steam)

India: ONGC (combustion)

Albania: Bankers (steam)

Russia: LUKoil (WAG, thermal, chemical)

Middle East, China (CO2, chemical)

and other countries.

0 5 10 15 20 25 30

Additional cost $/bbl

EO

R T

ec

hn

olo

gy

Water injection HC injection

Polimer injection

Thermal method

CO2 injectionCO2 injection

SurfactantSurfactant

Technology R&D

Improved PI(HW,Frac)

0 10 20 30 40 50 60

RF %

Tech

no

log

y

Waterflood

Polimer injection

Thermal method

Gas injection

Surfactant

Influencing factors

Managerial factors Resources

► Financial (CAPEX, OPEX)

► HR capacity

(Well trained staff, brain aggregation)

► Services

► Access to technology

► Long term commitment

► Profit margin

► Reserve replacement, reporting

► High tech environment

► Knowledge & experience

► Strategic focus

► SD

► Operational experience

Project economics - costs and benefits

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

4000

3000

1000

2000

0

-1000

-2000

-3000

-4000

Green field project

EOR project

+ 3 years

Hig

her

risk

Demjén - Demjén Nyugat 36,0 748,4 3,4 486,7 1,7 11,8

Öttömös – Kelet, Ött-K-I, Ött-K-II telepek 89,7 3314,6 14,8 1125,4 1,4 21,1

Ortaháza mező - Ederics rétegcsoport,

Ortaháza-1165,6 5650,8 25,3 3113,7 1,6 19,4

Sávoly DK triász olajtelepek 101,4 2073,3 9,3 1187,3 1,6 11,6

Ásotthalom 90,4 2703,9 12,1 1094,9 1,6 17,0

Budafa / Zala-Kerettye 181,0 515,6 2,3 4134,9 9,4 1,6

Bajánsenye-Őriszentpéter Dél

/Őriszentpéter Dél gázcsapadék33,6 783,5 3,5 242,5 1,3 13,3

Üllés miocén alaphegység 2 517,5 2103,9 9,4 7740,3 5,6 2,3

Szank - miocén alaphegység 79,3 268,5 1,2 1552,9 6,8 1,9

Nagylengyel Barabásszeg (IX blokk) 265,2 7017,1 31,4 99,1 1,0 15,1

Kiskundorozsma 229,2 7468,2 33,5 3087,8 2,0 18,6

Budafa / Budafa-3 K Kelet 29,0 3232,8 14,5 -2064,2 0,3 63,5

CAPEX/Resource

USD/bblPlanned Domestic EOR Projects

Resources

koet

CAPEX

MFt

CAPEX

MUSD

NPV

MFt

PI

Ft/FtOil price effect on number of

EOR projects

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

Mto

e

19

37

19

41

19

45

19

49

19

53

19

57

19

61

19

65

19

69

19

73

19

77

19

81

19

85

19

89

19

93

19

97

20

01

20

05

20

09

Gas production

Oil production

Production tendency in Pannonian basin

Production decline in Hungary Production decline in Croatia

► Two sided / simultaneous water

injection (GOC and WOC)

► Multifunctional application of

horizontal well technology

► In-fill drillings

► Conformance control in oil and

gas wells

► Fracturing in low perm

reservoirs

► CO2 flooding in carbonate and

sandstone reservoirs (Nagylengyel,

Szank oil fields)

► CO2 flooding combined with water

injection in sandstone reservoirs

(Budafa, Lovászi oil fields)

► CO2 pilot injection and implementation

in Ivanić-Zutica oil field

► Methane injection into an extra light

oil reservoir (Algyő field, Tisza-1

reservoir)

► Ethane rich gas injection into a light

oil reservoir (Algyő field, Tisza-2

reservoir)

► Nitrogen injection into a fractured

metamorphic type oil reservoir

(experimental, Kiskundorozsma field)

► Thermal methods (In-situ combustion,

steam injection) in Demjén oil field

► Microbiological EOR in Demjén-W

field

IOR Application EOR Application

IOR / EOR application in MOL’s and INA’s practice

Primary Recovery

Water flooding Gas flooding

Production control

Infill drilling

Horizontal well etc.

Original well-inflow

Natural flow Artificial lift

Corrected well-inflow

Stimulation Profile

modification

Secondary Recovery

Acidation

Fracturing

etc.

Polymers

Gels

etc.

Displacement by

Injected water and gas

Production by

reservoir energy

Tertiary Recovery

Gas Thermal Chemical Other

Hydrocarbon

CO2

N2

Flue gas

Air

WAG

etc.

Steam soak

Steam drive

Hot water

Combustion

Electromagnetic

etc.

Polymer

Micellar-polymer

Caustic

Foam

etc.

Microbial

etc.

Application of

sophisticated energy

Pressure maintenance

Water injection 36%

(Horizontal Wells 4%)

CO2 injection 4%

(Chemical treatment 0.5%)

HC injection 0.8%

Natural depletion

59.2%

Contribution of different oil recovery processes (Hungary)

Split of Total Oil Production (from EOR and from non-EOR)

(thousand tons)

0

500

1 000

1 500

2 000

2 500

19

37

19

40

19

43

19

46

19

49

19

52

19

55

19

58

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

Ye

arl

y p

rod

uc

tio

n

Total EOR productionBase production of fields / reservoirs having EOR applicationTotal oil production

Production profile of all oil field and the fields/reservoirs

affected by EOR applications (thousand tons)

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

19

37

19

40

19

43

19

46

19

49

19

52

19

55

19

58

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

Ye

arl

y p

rod

uc

tio

n0

10 000

20 000

30 000

40 000

50 000

60 000

Cu

mu

lati

ve

pro

du

cti

on

Base production EOR production

Cum. base prod. Cum. base + EOR prod.

Share of Production from EOR in Total Hungarian Production

► EOR production in 2011:

81 131 t – equal 12.95% of total

domestic oil production (zero

royalty!)

► EOR applications by MOL resulted in

near to 5 million tons of oil from the

beginning (from 1969)

► This ≈ 38-million-bbl exercise means

an average of 10% increase in

Recovery Factor (IOR/EOR fields)

► RFo is currently 32% (including

EOR), Ultimate Recovery is also

below 40%

► There is a further room for future

improvement.

► Long term strategy is to increase the

URF above

► Entering into the international EOR

arena:

Past:

OKGT/SzKFI contract with ONGC

for in-situ combustion project in

Mehsana field, India (1990)

Investigation of participation

opportunities for international

EOR projects (Albania, Iran, etc.)

1953 – Laboratory-scale CO2 flooding tests

1960’s – Pilot tests of CO2 injection in Lovászi and Budafa

fields

(with the CO2 gas gained from flue gas of central boiler

battery, then with liquefied CO2 transported from

Répcelak in Lovászi field, and with the CO2 gas

produced from Budafa-Deep formation in Budafa field )

1972 – Field-scale CO2 injection started in Budafa Field

(in Budafa-West formation, with the CO2 produced from

Budafa-Deep formation)

1975 – Field-scale CO2 injection started in Lovászi Field

(in Lovászi-East formation, with the CO2 produced from

Budafa-Deep formation)

1980 – Pilot tests of CO2injection in Nagylengyel field

(in Blocks V-VI South-Triassic , with the CO2 produced

from Budafa-Deep formation)

1988 – Field-scale CO2 injection started in Nagylengyel

Field

(in Blocks I-IV Rudistid, with the CO2 produced from

Budafa-Deep formation)

1989 – Pusztaföldvár WAG

1992 – Field-scale CO2 injection started in Szank Field

(in Szank-NE and Szank-SE formation, with the CO2

separated in Szank Sweetening Unit - more source

fields)

2003 – CO2 Pilot Injection Ivanić

2007 – Screening of new fields New target field for CO2

injection

2011 – Nagylengyel-III phase Implementation, Ivanic Zutica

implementation

Öttömös – East

(planned)

Szank–SE & NE

oil fields Pusztaföldvár

Sávoly SE oil field

(planned)

Budafa oil field

Nagylengyel oil field

Lovászi oil field

Szank sweetening unit

CO2 from gas processing

Budafa oil field

Natural CO2 source

Track record of CO2 utilization - EOR applications

0 500 1000 1500 2000

-1656 -1652 -1648 -1644 -1640 -1636 -1632 -1628

MOL-INA EOR projects in 2012

15

Methane gas injection to Tisza-1 reservoir

(Algyő) was finished in May 2012.

• Cum. Oil with primary recovery: 0.66 MMm3

• Cum. Oil on 31 December 2012: 1.40 MMm3

• 13% RF increment in C3-C6 components

CO2 injection to Szank oil field

• CO2 from the Szank gas sweetening plant

(max. 40000 m3/h)

• 5.6% RF increment

Ivanic-Zutica CO2 injection project

• Successful pilot in 2003-2005

• Forecasted incremental oil for the whole project

(feasibility study):

3,94 MMm3

5,9 % OOIP

Microbiological EOR experiment in

Demjén-W field

• Bacterial treatment on De-32,-35,-55 wells

• Good results on De-35,-55,-56 wells

• 275 t incremental production in 1 year

Gas injection

Yearly oil production of Szank-SE field

0

20

40

60

80

100

120

140

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Oil

pro

du

cti

on

(th

o m

3/m

on

th)

0

200

400

600

800

1000

1200

1400

1600

1800

Cu

m o

il p

rod

ucti

on

(th

o m

3)

Start of CO2

injection

IVANIĆ

0

20.000

40.000

60.000

80.000

100.000

120.000

2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037

Godina

Pro

izv

od

nja

na

fte

(m

3/g

od

)

nastavak zavodnjavanja

WAG 400 000 m3/dan

EOR R&D sub-projects

► Polymer-tenside flooding pilot in Algyő

(2001-2014):

► Develop a polymer-tenside composition for

polymer-tenside flooding in high temperature

and high pressure conditions

► First injectivity test at pilot well was successful

►EOR mobility control with CO2 (2006-2015):

► Decrease the CO2 mobility with newly

developed polymer or tenside composition to

reach better oil recovery in the CO2 injection

tests

► Development of compositions are ongoing

► Profile control and EOR applying bio-

technology methods( 2002-2014):

► Develop a bio-polymer and bio-tenside

composition for oil-viscosity decreasing

and production efficiency improvement as

Microbiological EOR

► Demjén-West huff and puff test results

are positive with increased oil production

with lower oil viscosity

► Analysis of EOR opportunities on gas condensate

wells (2006-2013):

► Develop a process to stop the production

decline of Baján-Őri hydrocarbon condensate

field

► First pilot well test was finished with

increased production

Laboratory Approach to Chemical Flooding

1. Synthesis of new type chemicals for HTHP reservoirs (Tr=98 0C, Pr=170-190 bar)

• Surfactants (anionic) & cosurfactants (nonionic)

2. Selection of surfactant & cosurfactant

• CMC and IFT measurement • Sulubilization ratio

• Surfactant/cosurfactant ratio

• Adsorption capacity of chemicals

• Wetting angles and properties

4. Coreflood oil recovery tests by PSC:

• 1.0 PV injected aqueous solutions of polymer-surfactant composite (PSC)

• Tertiary Oil Recovery, Erin=15-37%

3 Polymer-surfactant coposition formulation

• Polymer/Surfactants/cosurfactants ratio

• Filter and mobility ratio, viscosity, long time thermal stability test

anionic nonionic

Microbial Enhanced Oil Recovery (MEOR)

1. Selection and growth of microbes

• Production of biosurfactant-biopolimer composites. (BSBPC)

2. Laboratory study of BSBPC:

• Flow characteristics (viscosity)

• Emulsification, demulsification capacity

• Heavy hydrocarbon (paraffin, asphaltene, wax) decomposition capacity.

Többletolaj kihozatal a XXVIII., XXIX. és XXX. kísérletek során

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0 1 2 3 4 5 6 7 8 9 10 11PV

Er

XXVIII. többletolaj

XXIX. többletolaj

XXX. többletolaj

3. Coreflood oil recovery tests by BSBPC:

• 1.0 Pore Volume Injected BSBPC

• Tertiary Oil Recovery, Erin=15-21%.

4. Huff and Puff treatment of production wells:

• BSBPC injection

• 7 days progression (well shutdown)

• Producing (production increased twice)

0 5 10 15 20 25 30

Additional cost $/bbl

EO

R T

ec

hn

olo

gy

Water injection HC injection

Polimer injection

Thermal method

CO2 injectionCO2 injection

SurfactantSurfactant

Technology R&D

Improved PI(HW,Frac)

Cyclic Screening Process Technologies

Fie

lds

Fie

ld 1

F

ield

2

Fie

ld 3

F

ield

4

Fie

ld 5

F

ield

6

Surfactant

Gas

injection

Polymer injection

Thermal

method

Water

flood

Low

Med

High

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Green field project

EOR project

Hig

her

risk

+ 3 years

-4000

-3000

-2000

-1000

0

1000

2000

3000

4000

Time

NP

V

●

Portfolio analysis by sub-

regions – fine screening

Target:

1 500 – 1 800 koet additional

oil production

Systematic screening of

fields and technologies –

coars screening

Repeating the cycle in 5-

6 years

► Screening of Hungarian

fields for future

enhancement projects in

2007.

► 36 fields/reservoirs have

been chosen for

IOR/EOR/EGR

applications.

► 4 groups were identified

as different project

categories on the basis of

NPV and technical risks.

► Categories:

1. Ready to start projects.

2. Necessary to

supplement projects.

3. Weak pay-back

projects.

4. Do not start projects.

► Modified project list in

2010 (no yellow category,

only 26 fields).

► Other new mid-/longterm

project ideas.

Future EOR/IOR Plans in Hungary

Mezősas - Pt/Pz-2 IOR Completed

Ásotthalom-É IOR1 old well was perforated and completed as

producer

Ruzsa IORRu-19 well was fractured and completed as

producer - no commercial production

Pusztaföldvár - Békés szint IORTechnical preparation of the project is partly

completed

Sávoly-Dél IOR Completed

Endrőd - I., III. IOR Completed

Algyő mező olajtelepei IOR Project is in progress

Görgeteg-Babócsa (GBK-2) IOR Under preparation

Kiskunhalas - ÉK Északi metamorf IOR Project is under re-evaluation

Öttömös – Kelet, Ött-K-I, Ött-K-II telepek EOR Project has not been started

Ortaháza mező - Ederics rétegcsoport, Ortaháza-1 EOR Project starting is still not planned

Sávoly-DK triász olajtelepek EOR Field development plan is already prepared

Ásotthalom EORImplementation of the project is

questionable

Budafa / Zala-Kerettye EOR Field development plan is already prepared

Barcs-Nyugat gázkondenzátum telep IOR Under preparation

Bajánsenye-Őriszentpéter Dél /Őriszentpéter-Dél

gázcsapadékEGR Under preparation

Üllés miocén alaphegység 2 EGR Project is delayed

Szank - miocén alaphegység EGR Cancelled

Demjén-Demjén Nyugat EOR Project is under preparation and planning

Endrőd-Észak IOR Cancelled

Kiskundorozsma EOR Cancelled due to lack of CO2 source

Nagylengyel-Barabásszeg (IX blokk) EOR Project is delayed

Inke - IB - Vése és Liszó FD Under preparation

Végegyháza - Nyugat FD Not economical

Forráskút IOR Not economical

Budafa / Budafa-3 K Kelet EOR Not economical

Planned operation

Implementation of gas lift system

Drilling of 1 new well

Fracturing of 2 wells

Modified portfolio Status

CO2 injection

CO2 injection

Decreasing gathering pressure by

compressor

Increasing fluid production of producers

Water injection

Drilling of 2 new wells; CO2 injection

CO2 injection

CO2 injection

Copletion of one well and fracturing

Gasoline and CO2 injection

Drilling of 1 new well

CO2 injection

CO2 injectionDrilling of 3+1 wells

Drilling of 1 new well

Hot water injection

CO2 injectionDrilling of 1 new well

Gas injection

CO2 injection

Perforation modifications; sidetrackings;

increasing numbers of producers by

perforating other wells penetrating the

target reservoirs

Sidetracking of 1 old well

Drilling of 2 new wells; perforation

modifications; periodical production of old

satellite wells

Future EOR/IOR Plans in Croatia

21

CO2 injection site at Ivanic field

Full-field numerical simulation of

Ivanić field.

Kalinovac field

Injection well Iva-28

Field Project

Ivanic-Zutica CO2 injection - EOR

Sumecani Steam Huff 'n' Puff - EOR/IOR

Okoli CO2 or water injection - EGR

Struzec CO2 injection - EOR

Benicanci CO2 injection - EOR

Kozarica Infill drilling - IOR

Kalinovac CO2 injection - EOR

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

Sg

krg

,kro

krg_old

kro_old

krg_new

kro_new

► EOR related oil production has relatively low rate compared to

total world oil production, however it will have growing

importance in the future world oil production.

► High demand for oil maintains the crude price - promising

economics of EOR applications.

► In EOR applications USA is a dominant player significantly

with CO2 and thermal technologies.

► All the relevant factors have to be considered as one

integrated unit in EOR projects.

► In the Pannonian basin CO2 gas injection play important role in

EOR utilization (HTHP environment). Miscibility is a hard task.

► Application of different chemical systems on selected wells

generated significant extra oil production (above 2 Million bbl)

► 40 year production operation practice in CO2 flooded assets.

Strict cost management is the part of company’s „culture”

► Cyclic, systematic screening of existing fields always

generates new oil

Conclusions

Thank you for your attention!