Reliance CBM Exploration in India - Global Methane Initiative · PDF fileAdvancing Project...

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Methane to Markets (M2M) Conference

Advancing Project Development in India through Public Private Partnership

New Delhi

Reliance CBM Exploration in IndiaBy

M.S.Sundaram, Supdtg.Geologist

Reliance Industries Limited

22nd February 2007

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RIL’s CBM blocks

CBM exploration experience

CBM prospect evaluation approach

Highlights & major achievements

Corehole program

Saturation conditions in coal beds

Permeability of coal reservoirs

CBM well drilling & completion

Emerging technologies

CBM gas usage options

OUTLINE

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Coimbatore

MAHARASHTRA

Udhagamandalam

Anantapur

Bellary

Zahirabad

Raichur

CHANDIGARH

Hoshangabad

DELHIGurgaon

JAMMU AND KASHMIR

KERALA

Ernakulam

AlappuzhaKAYANKULAM

Kollam

KK08

SURATHKAL

GOA

Karwar

Hassan

MadikeriMangaloreKasargod

KARNATAKA

KOLHAPUR

Pune

Nashik

RatnagiriDABHOL

Kudal

TROMBAY

URANAlibag

Thane

SILVASSA

Osmanbad

Sangli

GokakBijapur

Bid

Inte

rnat

ional

Bord

er

GUJARAT

Jaisalmer

Rajkot

KndlaMundra

JAMNAGAR

BhujGK ON90/2

HAZIRA (HBJ INTERCONNECT)

Vadodara

AHMEDABAD

Dungarpur

Kheda

Bhavnagar

Godhra

GANDHINAGAR

CB ON1Udaipur

Palanpur

UjjainDevas

DharJhabua

INDORE

Ratlam

Amla

Mandsaur

RAJASTHANJodhpur

Nagaur

Bikaner

JAIPUR

PUNJAB

HARYANA

SRINAGAR

WARDHA Kendrapara

Nagapattinam

Ramanathapuram

TUTICORINTiruneveli

KAKINADARajahmundry

Thanjavur

Nellore

Kanchipuram

Cuddalore

ENNOREKolar

TiruchirappalliTAMILNADU

BANGALORE

PONDICHERRYVillupuram

Vellore

ANDHRA PRADESH

Chittoor

Ongole

GarhchiroliChandrapur

Guntur

Khammam

KondapalleVIJAYAWADA

Kurnool

Mahbubnagar

HYDERABAD

DundigalBidar

Nizamabad

Yavatmal

Adilabad

Eluru Yanam

Uppada

BHUBANESHWAR

Vizianagaram

VISHAKHAPATNAM

BhawanipatnaKhurda

CUTTACK PARADEEP

Puri

SHIMLA

CHHATISGARH

Banda

JabalpurMADHYA PRADESH

Damoh

Betul

Nagpur

(HBJ INTERCONNECT)GUNA (VIJAIPUR)

BHOPAL

Bina

RAIPUR

Bilaspur

Rewa

Kanpur

Naini Tal

LUCKNOW

Pithoragarh

UTTAR PRADESH

UTTARANCHAL

Shanjahenpur

Faridabad

DEHRADUN

Uttarkashi

HaridwarAlmora

International Border

Jagdishpur

Bokaro

WEST BENGAL

JHARKHANDAmbikapur

SambalpurORISSA

GayaBIHAR

RANCHI

PATNA

Jamshedpur

Medinipur

Baleshwar

Baripada

KOLKOTA

Dhanbad

Madhubani

Maharajganj Darjiling

GANGTOK

ARUNACHAL PRADESH

MANIPUR

AGARTALA

TRIP

URA

MIZ

OR

AM

IMPHAL

AIZWAL

ITANAGAR

SHILLONG

DISPUR

MEGHALAYANAG

ALAN

D

KOHIMA

ASSAM

2ND CBM ROUND BLOCKS

1ST CBM ROUND BLOCKS

Block Name (Area Sq. Km)

Rajasthan West 1045

Rajasthan East 1020

Total 2065

Block Name (Area Sq. Km)

Sohagpur West 500

Sohagpur East 495

Sonhat 825

Total 1820

AHMEDABAD

JAIPUR

BHOPAL

RAIPUR

MUMBAI

DELHI

RIL’s CBM BLOCKS

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Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Core / Perm Well

Five Spot

Five Spot

Five Spot

• Fixing CBM Gas-in-place and identification of CBM fairway by corehole drilling

• Fixing well producibility numbers from 5-spot cluster wells further refined by commercial pilots

Exploration

Objectives

CBM PROSPECT EVALUATION APPROACH

CBM EXPLORATION EXPERIENCE

Sohagpur West CBM

Block

Sohagpur East CBM

Block

Core / Perm Well

Core / Perm Well

Pre-drilling AssessmentGeological evaluation, based on available informationRemote sensing studiesLineaments, natural fracturing studies

Core ProgramCore & LogGas Content, Adsorption IsothermInjection/ Falloff Permeability Test

Production Test (5-Spot Pilot)Production TestCompletion EffectivenessRelative Permeability

Reservoir SimulationSpacing & PatternField / Area Production PotentialField / Area Development Program

Commercial PilotStep out wellsLarger Spacing Completion optimization

5Minor fault in Raniganj coal and shale interbands, north of Kanchanpur

Steeply dipping micaceous sandstone abutting against massive sandstone along E-W fault, Kaser nala

TECTONIC AND STRUCTURAL SETTINGFAULT DEVELOPMENT


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E-W major joint cut across by N-S joint,Kaser nala section

TECTONIC AND STRUCTURAL SETTING - JOINTS/FRACTURES


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CBM Discovery : 3.65 TCF, validated by the

Directorate General of Hydrocarbons (DGH)

Technology used for drilling : Air Drilling

(First ever used in India for CBM Drilling)

Gas Production Potential : 3 - 5 MMCMD in a Frontier Area

Water Production Potential : 50,000 – 70,000 BPD of good quality water

Investment Potential

CBM Production : Over Rs.3000 crores

Employment Generation

Direct employment : In thousands

Indirect employment : In thousands

Infrastructure Development : Roads, Ancillary Industries, Support Industries

CSR Scope : Health, Education, Environmental

conservation. Agricultural Support

USTDA Funding - Considering positive viability, funding of 0.5 million USD approved for project Techno-economic feasibility study. Contract signed with TDA in May this year


HIGHLIGHTS

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The CBM key reservoir parameters acquired:

Compleatable Coal thickness and coal seam continuity

Gas content and gas saturation

Permeability and its variability

Corehole drilling:

Faster completion of corehole in 15 days average as against about 60 days by

others.

Faster drilling of dolerite rocks (80-170 m) in 2-3 days as against 1 month by

others

100% core recovery

Many open hole Injection / fall off tests have been carried out first time in the

country for determination of permeability of the coal seams


MAJOR ACHIEVEMENTS

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COREHOLE PROGRAM

Critical parameters essential to determine gas in place resource and fairway

areas of high gas production

Coal thickness

Gas content

Permeability: a key CBM production parameter, may vary drastically over

short distances

There is a paucity of data on gas content and permeability for Indian coal basins

Exploration Campaign in any frontier basin should aim at getting fix on

these 3 parameters


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SATURATION CONDITIONS IN COAL BEDS

Pressure (psi)

0

100

200

300

400

500

600

0 1600140012001000800600400200

Saturated

Measured

Oversaturated

Undersaturated

Critical desorption pressure

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Permeability, the key parameter of coal for commercial

CBM production can be low and vary drastically over

short distances. Therefore, almost all CBM wells are

routinely stimulated

Coals at deeper depths with high stress conditions,

usually have insufficient permeability to allow flow of

CBM gas into the well.

Generally speaking, such adverse conditions are less

evident in US, Australian and Indian coals. That is why

USA & Australia have many CBM producing fields,

whereas drilling in Europe has drawn a blank so far.

0.01

0.1

1

10

100

0 500 1000 1500 2000 2500 3000

Depth (ft)

Per

mea

bil

ity

(md

)Permeability Versus Depth Curve for

Different Stress Regimes in the Bowen Basin, Australia (Modified after Peter Decker et.al,

1991)

RELAXED STRESS

NORMAL STRESS

HIGH STRESS

PERMEABILITY OF COAL RESERVOIRS


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Gas productivity from low stress naturally fractured coal seams is high

PERMEABILITY vs. PRODUCTION


Time, Years

Gas

Pro

du

ctio

n, M

Mcf

d

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1 2 3 4 5 6 7 8 9 10

Good Perm(10 md)

Low Perm(0.5 md)

Moderate Perm(2 md)

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Underbalanced or Air Drilling helps reduce Formation Damage in CBM Wells and results in faster rates of drilling

Air Drilled WellDamage

Zone Around Wellbore

Open Cleats Around

Wellbore

DRILLING

• In general, coals are susceptible to damage from drilling, cementation and

frac fluids

Air / Air mist drilling

Light weight cement slurries and compatible fluids

Careful selection of frac fluids

CBM WELL DRILLING

Mud Drilled Well

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Photo – 04.05.05

CBM Flow Computers – Sohagpur west 5 spot


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West 5 – Spot CBM Gas / Water Separation


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Photo – 04.05.05

CBM Gas Flare – Sohagpur west 5 spot


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TDS Content Tolerance [mg/ l]

<500 Drinking Water

<2,500 Cattle

<3,000 Crop irrigation

<5,000 Sheep

Initial water analysis for Sohagpur water shows that TDS is less than 1000 mg/l

TDS Limits For Water Usage

P.S. : Rajasthan Barmer district drinking water bore wells : 5000 + mg /l


Water Quality

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CBM WELL COMPLETION

High-Perm Completions in other CBM Basins

SISMore cavity

Some HF

Single horizontalsCavity for high k; HF for low k;

Recent horizontals

Completion

1-30010-100010-305-100Perm range (md)

Moranbah

(Australia)

Fairview

(Australia)

Arkoma

(USA)

San Juan

(USA)

Field

SISMore cavity

Some HF

Single horizontalsCavity for high k; HF for low k;

Recent horizontals

Completion

1-30010-100010-305-100Perm range (md)

Moranbah

(Australia)

Fairview

(Australia)

Arkoma

(USA)

San Juan

(USA)

Field

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AVERAGE WELL PERFORMANCE-CAVITY VS CASED HOLE IN SAN JUAN BASIN


Number of Wells:

Open -Hole 598 477 366 263 185 117 75 38 19 17

Cased-Hole 230 207 169 140 114 74 57 24 12 8

Year

0

500

1,000

1,500

2,000

2,500

3,000

0 1 2 3 4

Av

era

ge

Da

ily G

as

Pro

du

cti

on

Pe

r W

ell,

Mc

f/d

Cavity Completion

Cased-Hole-Frac

Number of Wells:

Open -Hole 598 477 366 263 185 117 75 38 19 17

Cased-Hole 230 207 169 140 114 74 57 24 12 8

Year

0

500

1,000

1,500

2,000

2,500

3,000

0 1 2 3 4

Av

era

ge

Da

ily G

as

Pro

du

cti

on

Pe

r W

ell,

Mc

f/d

Cavity Completion

Cased-Hole-Frac

Cavity Completion

Cased-Hole-Frac

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Butt CleatsShear Failure Zone

Shear FracturesHorizontalStress

Tensile Fractures

Not to Scale

Tensile Failure Zone

Joints

Cavity

Tensile Fractures Not Connected to the Cavity

Face Cleats

OriginalWellbore

Max

Min



Tensile Fractures

Not to Scale


Joints

Cavity


Face Cleats

OriginalWellbore

Max

Min



Tensile Fractures

Not to Scale


Joints

Cavity


Face Cleats

OriginalWellbore

Max

Min



Tensile Fractures

Not to Scale


Joints

Cavity


Face Cleats

OriginalWellbore

Max

Min



Tensile Fractures

Not to Scale


Joints

Cavity


Face Cleats

OriginalWellbore

Max

Min



Tensile Fractures

Not to Scale


Joints

Cavity


Face Cleats

OriginalWellbore

Max

Min

Ideal Targets

• High rank, Low to medium volatile bituminous

Coals

• Fragile coals

• Moderate to good permeability, 10+ mD

• Over pressured coal reservoirs

• Costs about 1.5 times more than normal

vertical wells but produce 4 to 6 times more

• Many Parts of Sohagpur CBM blocks having the above characteristics are good for Cavity Completion

EMERGING TECHNOLOGIES – CAVITY COMPLETION


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Vertical Well

In-Seam Well

In-Seam Well

1200m

45o

EMERGING TECHNOLOGIES IN CBM - IN SEAM DRILLING


Plan for Sohagpur West Block, Seam-III

Drilling in seam – directional well from a distance of 1200 m.

Sohagpur West – Seam III

Estimated production potential – 1.5 to 2.0 MMSCFD per well

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EMERGING TECHNOLOGIES IN CBM - IN SEAM DRILLING

CH4, Australia drilled over 100 sets of chevron wells producing 1-2 million cubic feet per day of CBM Gas

Surface to in-seam horizontal directional drilling in chevron pattern


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Technology Potential

Horizontal and in-seam drilling Increase ultimate recovery by up to 50%

Multilateral drilling Increase ultimate recovery by up to 50%

Air drilling Cut drilling time and cost by up to 50%

Optimizing stimulation Increase ultimate recovery by 20-50%

Better well spacing Could double NPV

Continuously variable pump controller Save workovers, boost ultimate recovery By 5-10%

Foam cement Increase ultimate recovery by 5-10%

Coiled Tubing Frac Increase ultimate recovery by 15-30%

Down hole gas compression Increase ultimate recovery by 20-40%

Smaller rigs Save $ 15,000 per location

Closed loop air drilling Save $ 20,000-30,000/well

Casing drilling Save $ 10,000/well

Jet slotting Save $ 10,000/well, increase ultimate recovery by 20-50%

Implemented in Phase-I

Being implemented in Phase-II

Advanced technology implementation – Potential Impact


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Possible CBM Based Industries

Fertilizers, chemicals & petrochemicals

Town Gas & Industrial fuel supply

Power generation

Cement

Paper and paper products

Sponge iron & steel

Ceramics

Glass

Textiles

Steel, Glass, Ceramics and Paper manufacturing companies are showing keen interest to put up their plants in the region

CBM GAS USAGE OPTIONS

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Gas demand in the region

Location IndustryDistance from CBM blocks in

Km

Gas Demand Potential in MMSCMD

Shahdol Chemicals, Paper, Power, Fuel, City gas 25 0.35

Katni Cement, Fuel, City gas 135 2.92

TOTAL 9.99

Maihar Cement, Fuel, City gas 153 0.40

Rewa Cement, Fuel, City gas 200 1.12

Satna Cement, Fuel, City gas 200 0.65

Allahabad Fertilizer complex 350 4.50

With availability of CBM gas, accelerated industrial development is a good prospect in and around Shahdol apart from above demand

CBM GAS USAGE OPTIONS

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Thank You

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