Qatar North Field

GTL Project

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QSMDS Overview
 QGTL Subsurface Team

PS – Thomas Krayenbuhl

PG – Marietta Vroon

PP – Mark Schiet

RE – Wisse van de Guchte

PT – Dolf Reddingius

TL – Wisse van de Guchte

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QSMDS Overview
 QGTL Timeline
 U/S+D/S Scoping Study July 2002
 Draft appraisal well proposal October 2002
 U/S Development Options Report May 2003
 Block allocation June 2003
 VAR2 July 2003
 3D seismic acquisition Aug/Sep 2003
 Heads of Agreement October 2003
 Data well spudding Feb 2004
 VAR3 May 2004
 Update Gas Composition Jul 2004
 Update ADP Jan 2005
 First gas October 2008

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QSMDS Overview
 Outline
 Project Overview

 NPV Map

 Development Options

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QSMDS Overview
 Project Overview

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QSMDS Overview
 North Field (Qatar) and South Pars (Iran)
 Discovered by Shell in 1971
Iran
Shallow oil (NWD-1)
Iran  Iranian part was discovered in
1991 (SP-1)
Qatar  Simple structure: NE-SW Dome-
Groningen field shaped anticline approx.
The Netherlands
GIIP:  100 Tcf 160 x 80 km
 Reservoir: Khuff carbonate
(2800 mss)

0 100
 Gas Column: ~ 1350 ft (K1-K4)
km
 Tilted GWC (Hydrodynamic
effect)
North Field (Qatar) & South Pars (Iran)  No. wells : > 60+ wells (Qatar)
GIIP:  1400 + 440 = 1840 Tcf  Water depth: 30 – 70 m
CIIP:  55 billion barrels

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QSMDS Overview
 North Field/South Pars Developments

Phase 4&5 Phase 9&10

Phase 14

ND 1 Phase1 Phase 6,7&8

Phase 2&3
ND 2 RasGas
Phase 13
Alpha EGU
Phase 11&12
Qatargas Petronet
ND 4
ND 3
ND 5

Dolphin

Qatar SMDS

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QSMDS Overview
 Reservoir Offtake

South Pars / North Field Development Projects

35000
Qatar Not Defined 5
Qatar Not Defined 4
Qatar Not Defined 2
30000
Qatar SMDS Phase 2
SP Phase 12
SP Phase 11
25000
Qatar Not Defined 1
Production rate (MMscf/d)

Persian LNG Phase 13

SP Phase 10
20000 SP Phase 9
SP Phase 6, 7 and 8
Qatar SMDS Phase 1
15000 Qatar Not Defined 3
Iran SMDS Phase 14
Dolphin
10000 EGU
SP Phase 4 and 5
RasGas2 (Petronet)
5000 Qatargas (K2/3)
SP Phase 2 and 3
SP Phase 1
0 RasGas
Qatargas (K4)
1992

1994

2002

2020

2022

2028

2030
1990

1996

1998

2000

2004

2006

2008

2010

2012

2014

2016

2018

2024

2026
North Field Alpha
Date

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QSMDS Overview
 Value Chain of 1 Phase

O2

onshore slugcatcher C4- C1, N2 middle

offshore and condensate midstream SMDS distillates
800 MMscf/d stabilization 70,000 b/d

sulphur, CO2,
25,000 b/d
Hg removal

C5+
LPG
(C3, C4)

Deep C2
extraction

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QSMDS Overview
 Importance of Gas Composition
 C5+ determines condensate output

 Total inerts inversely correlate to C2+

}
N2
total
CO2  Increasing total inerts increase capex & opex of the
inerts
H2S midstream and SMDS facilities
C1  Each 1 mole% N2 causes 6 MM$/y product loss
C2
 6+ mole% N2 requires changes to the SMDS process
C3
C4
} LPG  10+ mole% N2 results in very poor plant performance

C5+ condensate  Each 1 mole% H2S incurs 30 MM$ capex + 1 MM$/y opex

 Mercaptans and COS incur additional capex and opex

 Below 5 mole% CO2 no problem, above 10 mole% significant

removal costs

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 Gas Mixing
Well stream composition

Reservoir

K1 kh1, composition 1

K2/3 kh2/3, composition 2/3

K4 kh4, composition 4

Total k.h affects well deliverability

k.h ratios affect well stream composition

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QSMDS Overview
 Compositional Differences between SDA & Flank

K2: Total Inerts (mole%) K2: C7+ (mole%)

11 11

14 14

17 22 17 22

25 25
21 21

15.5 mole% 5.5 mole% 1.3 mole% 2.4 mole%

(20 b/MMscf) (40 b/MMscf)
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 NPV Map

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 Delta NPV Map
Value Drivers:
Gas composition

Pipeline

Well count (GWC, kh)

11
14
17 22
SDA
21 25

East-flank blocks
-ve +ve

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QSMDS Overview
 Development Options

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QSMDS Overview
 Scenario Tree (SDA)

Control
Controlwell
well
UISE1 (33%) QMD1 (33%) NWD4 (33%)

GWC
GWC
Shallow (33%) Mid (33%) Deep (33%)

Kv/kh
Kv/kh

= 0 (80%) > 0 (20%)

skin
skin
-3 (40%) 0 (50%) 7 (10%) (……… 54 cases)
successful reference condensate
acidization case blocking

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QSMDS Overview
 Well Count Probability for the SDA

0.160
0.140
0.120

Probability
0.100
0.080
0.060
0.040
0.020
0.000
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
# wells

1.000
0.900
Cumulative Probability

0.800
0.700
0.600
0.500
0.400
0.300
0.200
0.100
0.000
0 5 10 15 20 25 30 35
# wells

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QSMDS Overview
 Drainage Pattern and Drilling Sequence

2008: 8 wells on platform A

2010: 4 wells on platform B

Next: 4 wells on platform B

Next: 4 infill wells on A

Next: 4 infill wells on B

Automated drilling sequence:

1-2 spare wells at all times

Infill wells

3 km outstep Central platform

Total well potential > 1.15 x DCQ
60 deg deviation
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QSMDS Overview
 Reference Case Forecast (SDA based on QMD-1)

UR(2038): 15 Tscf
GIIP(2 blocks): 40 Tscf
+ 4 wells + 4 wells
potential
8 wells

actual

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 Development Options for the SDA

11 CP (12w) CP (12w) 95% 33 CP (12w) SP (6w) 70%

SP (6w) 5% CP (12w) 30%

22 CP (12w) SP (6w) 70% 44 CP (12w) 7%

SP (6w) 25% CP (12w) 88%

SP (6w) 5% SP (6w) 5%

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Development Options - Risked PV Capex for the SDA

CP CAPEX 24 MM$ common costs excluded

SP CAPEX 20 MM$ common costs excluded Difference between CP & SP:
CP-PL CAPEX 16 MM$
SP-PL CAPEX 13 MM$
WELL CAPEX 18 MM$ Size (# slots)

Risked PV Total Risked PV

Option Description CAPEX Timing PV CAPEX Prob CAPEX CAPEX
1 1 CP 24 0 24.0 0.947 23 Commonalities:
1 1 CP 40 2 34.9 0.947 33
1 +1 SP 33 15.0 70.9 0.053 4
60 Power generation
2 1 CP 24 0 24.0 0.700 17
2 1 SP 36 2 31.4 0.700 22 MEG
2 +1 SP 33 10.0 72.2 0.247 18
2 +1 SP 33 15.0 84.2 0.053 4 Corrosion inhibition
61
3 1 CP 24 0 24.0 0.700 17 Rigless well intervention
3 1 SP 36 2 31.4 0.700 22
3 +1CP 40 10.0 75.8 0.300 23
62
Crane
4
4
1CP + 1 WELL
+1CP
42
40
0
7.0
42.0
66.9
0.062
0.884
3
59
Helideck + boat access
4 +1SP 33 15.0 78.9 0.053 4
66
No shelter

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QSMDS Overview
 Conclusions
 SDA well count (P15, P50, P85) = (13, 16, 20)

 Blocks (21, 22) well count (P15, P50, P85) = (12, 14, 17)

 In terms of risked capex the use of central or satellite platforms is

cost neutral for the SDA and blocks (21, 22)
 The installation of 2 central platforms is therefore preferred,
because:

 it provides the largest flexibility,

 caters for 24 wells

 allows the 2nd platform to be a copy of the first

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QSMDS Overview
 Further Feedback from QP

2 dedicated K4 and 2 dedicated K123 producers per platform

 16 wells required for blocks H4H5.

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QSMDS Overview