Spe 200920 Ms
Spe 200920 Ms
Spe 200920 Ms
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ESPCP - An Economic Artificial Lift Method for an Offshore Field in
Southwest Trinidad
Nigel Ramkhalawan, Heritage Petroleum Company Limited; Hamid Hassanali, University of the West Indies
This paper was prepared for presentation at the SPE Trinidad and Tobago Section Energy Resources Conference held virtually 28 - 30 June 2021. The official
proceedings were published online on 28 June 2021.
This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents
of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect
any position of the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written
consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may
not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.
Abstract
Frequent rod failures still occur in Progressive Cavity Pumped (PCP) wells with high dog-leg severities
although they are fitted with adequate rod centralization. This results in well downtime and production
deferrals. Offshore workovers are expensive and significantly affect operating cost (OPEX) of the operator.
This study sought to evaluate the potential benefits of Electrica l Submersible Progressive Cavity Pumps
(ESPCP) as an economic alternative for highly deviated wells in the offshore field in Trinidad.
In this theoretical study, a screening criterion was established and four (4) candidates, all produced by
surface driven PCPs, were selected. Models of ESPCP systems were developed using industry standard
Progressive Cavity Pump software, parameters from the original PCP models as well as actual field well tests
and production data. An economic evaluation, which integrated oil price and production rate sensitivities,
was conducted using field data, including field reservoir characteristics and past well performance.
The ESPCP model results suggest a cumulative increase of 567 BOPD is expected for all four wells. Using
an oil price of US $45 per barrel, the analysis was conducted on all wells targeted for ESPCP conversion.
Assuming a P50 oil rate, sensitivities were run to establish the minimum oil price for the project to be
economically feasible. The operator's project economic success criteria were :(1) pay-out period of <2 years
and (2) NPV of > US $0.15 Million considering a ten (10) year project. An integrated sensitivity analysis
was performed for the entire project with varying expected production increases and fluctuating global oil
prices. The simulations identified that the project will be uneconomic at a global oil price of US $20/bbl.
Assuming a project life of 10 years and based on the expected production increase, the project is massively
profitable, yielding an expected NPV of US $9.3 Million at US $45 per barrel with expected pay-out times
between 0.63-1.8 years with investment of US $4 Million. Additional benefits anticipated include, increased
well uptime and the corresponding reduction in workover costs. Another opportunity that results from the
conversion to ESPCP, is the possibility of lowering the pump in the wellbore, thereby increasing the well
producing life and increasing the recoverable reserves.
Installation of ESPCPs, in theory, can be an economic success in an area where surface driven PCP
experiences repetitive rod failures, leading to production deferrals and workover. Additionally, lowering the
pump in the wellbore may be possible, thereby increasing the well producing life and increasing recoverable
reserves which would not have been possible using traditional artificial lift methods.
2 SPE-200920-MS
Introduction
The Soldado oilfield is located in the Gulf of Paria, approximately fourteen (14) miles from the Borough of
Point Fortin, on the southwest coast of Trinidad. The field is divided into the Main, North, East, West and
Southwest Soldado Areas. The field was discovered in 1955 and currently consists of over 270 producing
wells. The identified offshore field has well depths of nine thousand (9000) to four thousand (4000) feet
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in unconsolidated sandstone reservoirs which contains crude oil of gravities 10°-30° API (Joseph, 2003).
Most wells are either naturally flowing or produced by artificial lift such as gas lifting (GL) and progressive
cavity pumping (PCP) as depicted in figure 1.
There have been issues in the past with PCP wells. Inadequate drive head maintenance and sucker rod
and centralizer failures, due to high dog leg severity resulted in frequent PCP downtimes. These failures
all lead to an increase in operating costs (OPEX) and production deferrals. PCPs are limited by depth of
placement, rod stress and high contact loads on sucker rods and tubing. The four (4) chosen candidate wells
are currently being produced by surface driven PCPs. The problems experienced by these wells range from
parted sucker rods, failed thread pins from overtorqing to failed driveheads and parted tubing as shown in
the photos below. These issues lead to reduced reliability, production deferrals and an increase in operational
cost due to workovers which require costly offshore rigs for PCP revamps, pump replacements, sucker rods
change out and tubing replacement.
Figure 2—Failed threading on sucker rod and damaged pinion gear from lack of maintenance
SPE-200920-MS 3
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Figure 3—Failed drivehead thrust bearing from lack of maintenance of unit
Figure 4—Severely contaminated lube oil from drivehead due to poor maintenance
Figure 5—Photo showing sucker rod fracture face. The rod failed due to material fatigue
4 SPE-200920-MS
For the year 2018, production deferrals on the four candidates had amassed to approximate ly 48,360
bbls of oil due primarily to broken sucker rods and drivehead failures. The estimated revenue deferral at
an oil price of US$45 per barrel was over US $1.7 million. In this paper the ESPCP artificial lift method is
considered as an option to replace the existing PCP systems.
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What is an ESPCP?
An ESPCP is a combination of a conventional progressive cavity pump coupled with an electrical
submersible motor as its driver. The ESPCP system is a rod-less system that requires no drivehead when
compared to traditional PCP system, see figure 6. It is primarily used in high viscosity, sandy oil and placed
in deviated or horizontal wells.
By comparing ESPCP to other methods of artificial lift, the following advantages and disadvantages were
identified by (Lea & V.Nickens, 1999):
Advantages of ESPCPs:
1. The pumping system can be run into deviated and horizontal wells.
2. The pump handles solids and viscous production fluid well.
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3. Several of the components are off the shelf ESP components.
4. The production rates can be varied with use of a variable speed controller (VSC).
Disadvantages of ESPCPs:
1. The unit does not tolerate high heat due to the softening of the stator material.
2. Gas must be separated to increase efficiency. Large gas volumes if not pumped off may cause it to
overheat and damage the stator.
3. If the unit pumps off the well i.e. dry pumping, the stator will likely be permanently damaged.
4. The gearbox is another source of failure if well-bore fluids or solids enter when seals fail.
According to (Bohorquez, Rubiano, Labrador, & Suarez, 2013) ESPCP should be used under the
following conditions:
1. Straight, deviated or horizontally completed wells with a maximum inclination of 75 degrees at pump
setting depth.
2. Wells in which rod & tubing wear is or has been an issue
3. Wells in which conventional sucker rods are no longer viable (i.e. due to high rod loading, high
frictional loss due to high viscosity
4. To eliminate flow losses due to the rods and rod guides
5. Wells where operating costs are a concern
6. Environmentally sensitive areas where stuffing box leaks are to be avoided
Methodology
The candidates selected were based on fitting one or more of the following criteria:
1. The well is currently operated by PCP and historically requires intervention at least once per year for
issues such as sucker rod failures that can occur due to high rod contact loads
2. The well does not produce significant quantities of gas, <1500 scf/bbl. To reduce the likelihood of
stator swelling.
3. There is greater than 200 lbf rod contact load based on PCP simulation. Higher loads and speeds of
the pump have been found to increase the likelihood of parted rods based on field experience.
4. Greater than 3°/100 ft. dog leg severity. Past evidence found that at this severity, rod failures were
likely as the bending stress leads to parted rods.
5. Electrical power is available on location to facilitate the installation of ESPCP motors downhole.
6. Adequate deck space on location for the installation of step-up transformers and variable frequency
drive (VFD) for operation of the ESPCP.
6 SPE-200920-MS
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To evaluate the implementation of ESPCP systems the following steps were followed on the candidates
selected:
1. Obtain field data, well testing data, lab fluid data, BHP surveys and production data on the candidates
for use in Production and Reservoir Analysis Software.
2. Create well models utilizing the obtained data.
3. Create IPR curves using software for artificial lift already implemented.
4. Evaluate the potential daily production increase by optimizing the existing artificial lift models.
5. Analyze rod contact load and expected rod life information from simulated models which will give
indication of imminent rod failures in the current design.
6. Conduct sensitivity analysis to determine optimum progressive cavity pump speed and pump size.
7. Develop optimized ESPCP models to maximize the production of the well based on sensitivity
analysis.
8. Compare the ESPCP models to current production models.
9. Conduct economic evaluation and analysis to determine feasibility of capital investme nt for
implementation.
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Figure 7—Wellbore diagram for S-146
S-146 was identified to have ten (10) instances of parted rods between 2008 and 2018 since it was
converted to PCP. The annotations below in figure 8, indicate the recorded workovers during the well's
production history.
8 SPE-200920-MS
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Figure 8—Allocated production data showing volumes produced and workover information on S-146
The following parameters, see Table 2, were used in the simulation software for analysis of the present
completion. The deviation surveys recorded during drilling, including the deviation survey in Figure 9, were
used to determine the stress conditions of the PCP rods.
SPE-200920-MS 9
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The high dogleg severity for this well leads to the increased likelihood of parted rods, which has in fact
been observed. In 2017, the well had to be worked over four (4) times due to parted rods. This increase in
10 SPE-200920-MS
workover activity leads to an increase in operational costs and reduced profitability. The estimated cost in
workovers over the life of the well on PCP was found to be US $2.95 Million.
The Measured depth vs, dogleg severity chart indicated high deviations indicating that this well will have
challenges using conventional PCP systems. The chart for S-146 is shown in Figure 10.
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Figure 10—Graph showing measured depth vs. Dogleg Severity based on deviation survey
data for well S-146, the highlighted area indicates very high angle bends in the well trajectory.
A straight line IPR was used based on the negligible gas evolution in the reservoir fluid. Field and test
data were used to formulate the IPR line which indicated that the well has a maximum production potential
of 820 bbl/d. This represents an oil production of 740 bopd based on a 10% water cut as shown in Figure 11.
Analysis of the current PCP system found the production rate as 157 bbl/d with a flo wing corresponding
bottomhole pressure of 784 psi and fluid submergence of 2182 ft as seen in Table 3.
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The flowrate obtained matched the last well test taken. With a calculated rod contact load of 277 lbf,
fatigue failure resulting in parted rods is expected. A Measured depth vs. Life expectancy graph indicated
a theoretical life expectancy of a little more than 100 days near the highest dogleg severity of 4.0°/100ft
at 1100ft MD. The maximum tubing wear was found to be 184% / year at a measured depth of 1092 ft as
shown in Figure 12.
Due to the limitation of the current artificial lift system the option of implementing an ESPCP was
evaluated using the data from Table 2 and utilizing a higher volume rated pump at a lower seating depth
and larger motor driver, as shown in Table 4.
12 SPE-200920-MS
Table 4—Table showing information entered into C-FER® PC Pump softw are for ESPCP modelling for S-146
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The ideal operating speed at maximum flow rate was obtained through sensitivity analysis. The
sensitivities were conducted with rpm ranges from 100-200 rpm as seen in Figure 13.
Figure 13—Graph of Fluid flow rate vs. rpm for the selected pumps for both ESPCP and the previous PCP design for S-146
SPE-200920-MS 13
A production rate of 372 bbls/d was observed with the implementation of ESPCP, which was a 216 bopd
increase compared to the existing PCP system as shown in Table 5.
Table 5—Table showing comparison betw een the PCP well production and the ESPCP
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Table 6 and Figure 14 show the comparison with production rate between the existing PCP and ESPCP
artificial lift systems for each of the 4 wells when simulated.
Table 6—Table showing comparison betw een the PCP well production and the ESPCP
14 SPE-200920-MS
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Figure 14—Graph of estimated increase in daily production from simulation data
The simulation shows that ESPCP systems increases the overall daily production rate compared to PCP
systems. An assumption can be made that implementing an ESPCP reduces possible well interventions and
revenue deferrals when compared to PCP systems where rod failures frequently occur. Two main criteria
for the success of this project is ; pay-out period of less than two (2) years and an NPV of >US $0.15 Million
were used to indicate profitability of the wells considered for this project. The analysis indicated that the
project remains profitable at global oil prices > US $20/bbl.
For an oil price of US $45/bbl the pay-out period for each well were between 0.63-1.8 years with an
NPV of US $0.69 Million – US $3.67 Million for a project lifecycle of 10 years. The estimated capital
investment of conversion to ESPCP was estimated to be US $1 Million per well. It is estimated that an
optimistic production increase of 567 bbls (540 bopd) yields an NPV of US $9.3 MM over a 10-year period
at an oil price of US $45/bbl.
A combined economic analysis of the project is shown below in Table 7.
SPE-200920-MS 15
Table 7—Table showing economic analysis for the entire project over its lifecycle
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Conclusion
ESPCPs are proven to be reliable and can operate for years once installed properly. The initial design and
installation of the system is critical as it is imperative that best engineering practices be carried out in the
selection and the equipment is continuously monitored, operated and maintained during the lifecycle of the
equipment.
ESPCP is forecasted to be profitable when installed in the wells listed and will offer profitable returns
and the increase uptime with a reduction in production deferrals. An entire project NPV was estimated to
be US $9.3 Million with a payback period of less than six months using an investment of US $4 million.
By removing the PCP rod string, it is expected that well life expectancy will be increased leading to great
uptime, profitability and reliability. The longevity of the well is also increased where lowering the pump
can increase the drawdown time over the life of the well.
Acknowledgements
The authors express gratitude to the management of Heritage Petroleum Company Limited for the
permission to publish this paper. A special thank you to the Reservoir and Petroleum Engineering
Department for providing the technical support for this paper.
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