Daleel Petroleum targets ultra-thin reservoirs to bolster Block 5 reserves

GROUNDBREAKING: Oman-based upstream energy firm pioneers lower-cost technique to harness potential of super-thin carbonate reservoirs

Dec 27: Muscat-based oil and gas exploration and production firm Daleel Petroleum is leading the way in harnessing the hydrocarbon potential of ultra-thin carbonate reservoirs to help boost the reserves potential of its Block 5 concession in the northwest of the Sultanate.

The groundbreaking technique fashioned by Daleel to profitably produce oil from reservoirs barely 13 metres thick was showcased at the 2016 Best Practice Awards event hosted recently by Oman Society for Petroleum Services (OPAL), the organisation representing oil and gas industry.

Speaking at the event, a key executive outlined the ‘geo-steering’ technique pioneered by Daleel Petroleum to drill wells tapping so-called ‘ultra-thin’ reservoirs located at depths of 1,500 metres.

“Ultra-thin reservoirs, varying between one and three metres in thickness, are found scattered in some satellite fields around the Block, and not in all of the fields,” said Talal al Abdali (pictured), Production Geologist.

“While conventional wells target umbrella the nation’s thick reservoirs, we have succeeded in targeting these thin reservoirs through the use of lower cost logging tools. Initial production from some of the wells averaged 1,000 bpd, stabilising at 300 bpd. This is commendable overall given the low cost environment in which we are currently operating,” Talal added in comments to the Observer.

Significantly, the geo-steering of ultra-thin reservoirs has enabled Daleel Petroleum to boost the ‘Stock Tank Oil Initially In Place’ (STOIIP) potential of Block 5 by an impressive 15 per cent. This was made possible by the uncovering of new fields with very thin reservoirs.

As well as reviewing old abandoned vertical exploration wells in satellite fields where reservoirs had a similar thickness.

“Daleel Petroleum is proud to be one of very few oil companies to target ultra-thin reservoirs in the Sultanate,” said Talal. “We managed to drill a well for more than one kilometre laterally within a two-metre (target range), producing 1,000 bpd initially. This success gave us to confidence to launch a programme for the development of ultra-thin reservoirs. We also designed a special development programme for our young Omani geologists to improve their skills in geo-steering.”

Underscoring the cost-effective appeal of this process, the young production geologist noted: “We managed to reduce the cost of drilling such wells by $200,000 per well. Several wells have now been designed and planned to be drilled in these thin reservoirs, which ultimately will add more reserves to Oman’s hydrocarbon potential.”

“We are also willing to share this expertise with other Omani operators as we are all working for the nation’s advancement,” he added.

Daleel Petroleum is a 50/50 joint venture between Mezoon Petrogas SAOC (subsidiary of MB Holding) and Mezoon Petrogas BVI (subsidiary of state-owned China National Petroleum Corporation).

The company is engaged in the exploration, appraisal and production of hydrocarbon reserves in Block 5 in Al Dhahirah Governorate. Output averaged 46,700 barrels per day (bpd) in 2015.