OTC 15283 Offshore Heavy Oil in Campos Basin: The Petrobras Experience

A.C. Capeleiro Pinto, C.C. M. Branco; J.S. de Matos; P.M. Vieira, S. da Silva Guedes ; C. Pedroso Jr.; A.C. Decnop Coelho; M.M. Ceciliano, Petrobras S. A.
Copyright 2003, Offshore Technology Conference This paper was prepared for presentation at the 2003 Offshore Technology Conference held in Houston, Texas, U.S.A., 58 May 2003. This paper was selected for presentation by an OTC Program Committee following review of information contained in an abstract submitted by the author(s). Contents of the paper, as presented, have not been reviewed by the Offshore Technology Conference and are subject to correction by the author(s). The material, as presented, does not necessarily reflect any position of the Offshore Technology Conference or its officers. Electronic reproduction, distribution, or storage of any part of this paper for commercial purposes without the written consent of the Offshore Technology Conference 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 where and by whom the paper was presented.

This paper presents the main research and development topics of the Petrobras Heavy Oil Program, as well as the key production technologies for the target fields. Additionally, the results of some well tests and Extended Well Tests (EWT) in heavy oil reservoirs in the Campos Basin are presented and discussed. Introduction In the Campos and Santos Basins, heavy oil is being generically defined as any oil that is heavier or more viscous than the Marlim Field oil. The Marlim Field (ref. 1), located in the Campos Basin under water depths from 650 m to 1,100 m, in operation since 1991, currently produces around 98,000 m3/d (620,000 bpd) of a 19o to 22o API crude. The Marlim live oil viscosity is between 4 and 8 cP and the dead oil viscosity is between 400 and 500 cP at 20o C. The industry reference for offshore heavy oil production is the Captain Field, located in shallow water in the North Sea, operated by ChevronTexaco (refs. 2-5). The Captain oil viscosity at reservoir conditions is about 90 cP (refs. 2-5), much higher than the Marlim oil viscosity. However, at surface conditions, the viscosities of both oils are quite similar. As some of the offshore heavy oils recently found offshore Brazil are more viscous than the Marlim and Captain crudes, at surface conditions, the production process will be much more challenging. In 1991, when Petrobras started production in the Marlim Field, through two wells at 700 m of water depth connected to a semi-submersible platform, the development of this giant deepwater field was a challenge. The intensive development of new production technologies, led by the Petrobras PROCAP (Deepwater Technologies Program), made it possible to overcome the technical difficulties. In some aspects, Petrobras is now facing a similar challenge: to produce offshore heavy oil field, most of them in deepwater. Difficulties for heavy oil production in the Campos and Santos Basins Most of the heavy oil reservoirs discovered in the Campos and Santos Basins are located in water depths above 1,500 m. The reservoirs are shallow, in many cases, which results in low reservoir temperatures, between 40 and 60o C. The rock is usually unconsolidated sandstone, with high permeability, which may compensate the high oil viscosity, in terms of well productivities.

Abstract Significant volumes of heavy and high viscosity oil have been discovered in the Campos and Santos Basins, offshore Brazil, and its economical production is a challenge for the oil industry. New production technologies are required for the economic development of offshore heavy oil reservoirs. Long horizontal or multilateral wells, produced with high power ESPs, hydraulic pumps or submarine multiphase pumps, could partially compensate the decrease in productivity caused by the high oil viscosity. The flow assurance could be improved with insulated or heated flowlines or, alternatively, with the use of water as the continuous phase. The heavy oil processing in a Floating Production Unit is not straightforward, and new separation technologies, as well as the feasibility of the heavy oil transportation with emulsified water, should be investigated. The existence of light oil reserves in neighboring reservoirs, even in small volumes, would be an important issue for the commercial feasibility of the heavy oil area. The Petrobras experience with offshore heavy oil fields in the Campos Basin shows that some can be economically produced. However, the economic feasibility is controlled by factors such as: reservoir characteristics; water depth; possibility of blend with light oil; oil acidity and contaminants; price scenario; fiscal regime; availability of new production technologies; transportation, refining and marketability of the heavy oil. The recently created Petrobras Heavy Oil Technological Program PROPES is in charge of the development, together with universities, service companies and the industry, of new technologies for the offshore heavy oil fields. The main objective of all this work is to set the basis for the economical development of the significant volumes of heavy oil already discovered offshore Brazil.

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Many difficulties are envisioned for producing these heavy oil accumulations, and some of them are discussed below. In the appraisal phase, one of the most important objectives is to obtain a reliable oil sample, which enables the complete oil characterization, including the viscosity determination and the water-in-oil emulsion characterization. A complete well test, in a cased well completed with sand control, is usually required to guarantee that the sample is reliable, particularly in non-consolidated sandstone reservoirs. Long horizontal length wells are necessary to achieve high productivities and improve the waterflood sweep efficiency. Drilling and completing this kind of well in shallow reservoirs in deepwater are not easy tasks. The low fracture gradients in the deepwater reservoirs in the Campos Basins usually around 0.60 psi/ft complicate the gravel pack operations due to the risk of fracturing the well at the casing shoe. The artificial lift of the heavy oil is critical, since the high viscosity crude, containing emulsified water, causes high friction losses in pipes. The heat management is another important issue, regarding the paraffin, asphaltene and hydrate deposition risks. Regarding the recovery mechanism, it is known that the cold heavy oil production process is not efficient for offshore fields. Natural depletion, even with natural pressure support mechanisms, such as high rock compressibility and strong aquifer, will result in low recovery factors. The water injection method, applied in almost all the giant fields in the Campos Basin, is also not efficient, due to the unfavorable mobility ratio between the water and oil phases. Despite of the recovery method, large amounts of water will be produced with the heavy oil. The application of existing technologies for oil-water separation in the Production Unit would require very high temperatures and large retention times, which may be unfeasible. Regarding the gas-oil separation, special attention should be given to the foaming tendency of the heavy oil, which affects the processing plant design. Oil storage, offloading and transportation will also require concern regarding to the heat management, particularly for high pour point oils. Heavy crudes in some cases present high naphtenic acidity, which may reduce its market value. Besides, the potential for the deposition of naphtenates (a kind of organic-metallic scale) should not be neglected. Finally, it is worth mentioning that, for offshore heavy oil fields, the Value of Information of an Extended Well Tests (EWT) is, in general, very high. The EWT allows anticipating most of the production problems formation damage mechanisms, artificial lift performance, processing plant performance, oil storage, offloading and transportation. However, the logistics to perform an EWT, in deepwater, may be very complex. Testing Offshore Heavy Oil Wells Planning. When planning an offshore heavy oil well test it is important, at first, to keep clear the objectives of the test. Sensitivity studies, using a reservoir simulation model, and considering the uncertainty range for each parameter, help

identifying the parameters which most affect the production forecast and the economic results, for instance: Live oil viscosity. Horizontal and vertical permeabilities. Well productivity. Tarmat barrier close to the OWC. Oil-water relative permeabilities. Rock compressibility. Aquifer support. However, some of the parameters above can not be obtained through a conventional well test. As mentioned, special attention should be given to the oil sampling and determination of the live oil viscosity, since it controls not only the displacement efficiency in the porous media but also the flow up to the platform. The openhole sampling may be non-reliable, even if all the gas is collected, due to the contamination with mud filtrate and sand, difficult to be completely eliminated in the laboratory. The correct fluid characterization usually requires a cased hole well test and a single-phase bottomhole sampling. Recombination samples may also be non-reliable, due to the difficulties to measure the low GOR during the test, not to mention the risk of loosing intermediate fractions of the oil. As most of the turbiditic sandstones in the Campos and Santos Basins are non-consolidated, the well test, to be conclusive, requires the installation of a sand control mechanism. As the heavy oil wells usually do not naturally flow to the surface, efficient downhole artificial lift devices, such as a progressive cavity pump (PCP) or an electrical submersible pump (ESP) should be provided. In some cases it is necessary to evaluate the necessity of drilling a horizontal well in the appraisal phase, to guarantee that a minimum productivity will be reached, allowing the objectives of the well test to be achieved. The decision tree presented in Figure 1 helps defining the appraisal strategy of an offshore heavy oil discovery, including the necessity of a horizontal well, a conventional well test and an Extended Well Test (refs. 6, 7). The decision must be taken considering the Value of Information approach (refs. 8, 9). Having in mind the objectives of the well test, a careful sequence of events is defined, considering possible failures and contingency procedures. It is important that this job is made by a multi-disciplinary team, with a full-time coordinator. The well-test on paper is exercised in periodic meetings, involving not only the internal team but also the service companies. Hurdles. The key points to be considered in an offshore heavy oil well test are related to: Formation damage due to fluid loss and the difficulties for the well clean-out. The efficient oil-water separation at the rig. Downhole installation of the ESP, including the cable penetration through the BOP and tie to the test string, appropriate slips to handle the test string and surface equipment to protect the electrical cable and subsea test tree hydraulic hose at rotary table. Casing drawing and well design to attempt the maximum dog leg specified for the ESP and the test

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string, taking into account the necessary drift for the ESP cable and protectors or inox bands. Rig selection: it must have excellent stability, reliable DP system, wide deck, power generation capability for the ESP, BOP ram compatible to the necessary BOP CAN and diverter model that do not damage the ESP cable. Special concern should be given to the security procedures, considering the possibility of a quick disconnection during the well test. The separation process of the heavy oil, containing emulsified filtrate requires a long planning, considering contingence procedures. Petrobras experience. For more than 10 years Petrobras has been performing well tests in offshore heavy oil wells, and the procedures have been gradually improved. In the past the tests were performed with the help of nitrogen circulation and, when using pumps, they were positioned above the BOP. Currently, almost all the offshore heavy oil well tests in Petrobras are performed with the pumping equipment installed downhole. In some cases diesel is pumped through coiled tubing, to help the well clean out. An impressive offshore heavy oil well test was recently performed by Petrobras, with a dynamically-positioned drilling ship in a well located under a water depth of 2,000 m, in a non-consolidated reservoir containing an extra viscous oil with very low gas content. Since it was suspected that the oil viscosity could be high, to guarantee that a sufficient productivity would be obtained, a horizontal well with 1,000 m of horizontal length in the reservoir, was drilled and completed with an openhole gravel pack. A tubing mounted ESP was installed downhole and the well could flow the extra viscous oil with rates up to 700 bpd. The test was a complete success, allowing a reliable monophasic bottomhole sampling, and the determination of the reservoirs parameters and the well productivity. Figure 2 shows an overview of the surface equipment used in the well test. Figure 3 shows details of the Riser Sealing Mandrel used to protect the electrical cable and hydraulic hose at rotary table. Figure 4 shows the BOP CAN, which allows closing the BOP RAM withouth damaging the ESP cable. The surge tanks (with electric heating) used in the second stage of separation, with flow rate measurement as a back up, are shown in Figure 5. Extended Well Tests in Offshore Heavy Oil Reservoirs in Petrobras Extended well tests (EWTs) in offshore fields are the best way to reduce the uncertainties and mitigate the risks before approving the huge investments associated to the definitive production system. Petrobras has a long tradition in operating Early Production Systems (EPS) or perform EWTs in its deepwater fields Marlim, Marlim Sul, Marlim Leste, Roncador, Barracuda, Caratinga, among others. From the reservoir engineering standpoint, the early production allows not only to prove reserves through material balance, but mainly to gain knowledge about the reservoir internal characterization, which is critical for the success of waterflooding projects. For offshore heavy oil fields, however, the main objective of an EWT is to figure out the whole production process. The

use of the Value of Information (VOI) methodology (refs. 8, 9) is fundamental to allow the approval of an EWT or an EPS in offshore heavy oil fields, since they may not pay out considering just the EWT cash flow. The VOI can justify the EWT, considering the optimization it would provide for the definitive system (see Figure 1). A good example of an EWT in offshore heavy oil was the one performed in the Captain Field in 1993 (ref. 10), which set the basis for the economic development of the field, discovered sixteen years before. Many issues related to the production process were investigated, such as: vertical permeability, oil-water relative permeabilities, water coning behavior, performance of the long horizontal length well, artificial lift system and processing plant. In the next topics we describe two Extended Well Tests performed by Petrobras in offshore heavy oil areas. EWT in the Marlim Sul Field. The Marlim Sul Field is located directly south of Marlim Field, comprising an area of more than 600 km2, under water depths ranging from 1,000 to 2,600 m. The field was discovered in 1987 by an exploratory well drilled in 1,250 of water depth which found 40 m of the Oligocene / Miocene age reservoir saturated with 25o API oil. The oil quality reaches 28o API at the northern part of the field and decreases as water depth increases. As for the neighboring Marlim Field, the reservoir rock properties are excellent. However, the stratigraphy is more complex, which makes the prediction and identification of the reservoir compartments important but difficult tasks. To investigate the reservoir performance and anticipate production problems, three Extended Well Tests were implemented in the field. In this topic we will discuss the one that dealt with heavy and viscous oil. In August, 1997, the subsea completion world-record at the time, well MLS-3B, drilled in the water depth of 1,709 m, was connected to a Floating Production Storage and Offloading (FPSO), moored in 1,300 m of water depth, through 3 km of subsea flowline (Figure 6). The vertical well perforation was 40 m in length and the well was gravel-packed. The well resulted damaged, but, as it was not essential for the EWT, no attempts were made to remove it. MLS-3B produced a 16.5o API oil, with 3,000 cP at 20o C, during one year, being shut in August 1998. In the beginning, the well produced through natural flow, having reached almost 1,000 m3/d (6,300 bpd). After one month, the gas lift was started and the well rate jumped to 1,500 m3/d (9,500 bpd). Later, it was necessary to restrict the well rate due to the increase in the well GOR. During the production process, the oil temperature at the FPSO varied form 15o C to 10o C. The wax appearance temperature was around 17o C, but no paraffin deposition or other flow assurance problems were reported, even after shutdowns. Important information regarding the low temperature flow in the subsea pipeline and riser, as well as the gas-lift performance, were gathered and allowed the calibration of the multiphase flow correlations. At last, it is worth to mention that new subsea technology developed by the Petrobras PROCAP were successfully tested during the EWT of MLS-3B, particularly the FPSO mooring system and the 6 riser performance, allowing the

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optimization of the production installations for fields located in deeper waters. The results of the EWT were extremely useful for the review of the development concept of deep water portions of the Marlim Sul field. EWT in Jubarte Field. Jubarte is the most recent oil field discovered by Petrobras in Campos Basin, what took place in January 2001. The field is located about 70 km offshore the Esprito Santo State, under a water depth of 1,300 m. The main reservoir is a non-consolidated Cretaceous turbidite, containing a 17o API oil. The discovery wellwas tested without sand contention mechanism and presented a productivity index insufficient to guarantee commercial rates in the deepwater environment. A study based on the Value of Information supported the decision of drilling a horizontal appraisal well. In February 2002, it was drilled, preceded by a pilot well. The horizontal length was 1,070 m, completed with an openhole gravel pack. The final result was amazing, with a well productivity index 13 times higher than the vertical well PI. An EWT was proposed and approved, with the VOI approach, with the objectives of: Investigate the aquifer strength and its connection with the oil zone. Allow material balance calculations. Calibrate the Kv / Kh ratio, fundamental to optimize the development plan. Calibrate the oil-water relative permeability with production data. Impose a drawdown in the reservoir to allow the identification of compartments, if they exist, reducing the risks of the development plan. Identify damage mechanisms in the long horizontal well during the production process. Investigate the natural flow and artificial lift performances. Anticipate problems related to the production facilities, regarding to gas-oil and oil-water separation. Evaluate the performance and reliability of the storage and offloading procedures currently used. Improve the processing and marketing strategies for the heavy oil. The Seillean FPSO, a dynamic positioning vessel with the capability of performing light workover operations, which was operating in the neighboring Roncador Field, was mobilized to allow the heavy oil production in a water depth of 1,300 m. Some improvements in the processing plant were necessary in order to process the heavy and viscous oil of Jubarte. Using an innovative solution, a 900 HP, 25,000 bpd capacity ESP was installed above the X-Mas Tree (Figure 7). The well was connected to the FPSO through a 6 riser. The production started in October 2002 and the well produced by natural flow during two months, with a stabilized rate of 16,500 bpd, with constant bottomhole pressure. In December 2002 the ESP was turned on and the flow rate was increased to 18,300 bpd, being limited due to the constraints in the processing plant at the FPSO. The well potential with the

ESP is 23,000 bpd but some changes are necessary in the processing plant and surface pumping system to allow increasing the flow rate. The major problem detected in the separation process is related the severe foam formation, which is being mitigated with the use of chemicals. The Jubarte oil is similar to the MLS-3B oil at surface conditions, that is: the dead oil viscosity is 5 times the Marlim dead oil viscosity. It is one of the most viscous oils, at surface conditions, being produced offshore through a subsea completion well. During the EWT two extension wells were drilled and the field was declared commercial. The excellent results of the EWT are currently being used to optimize the development plan for the Jubarte field. Critical Technologies for the Development of Offshore Heavy Oil Fields New technologies are required to allow economic development projects for offshore heavy oil. Starting with the reservoir aspects, the displacement of oil by water should be improved. Simulations show that Improved Oil Recovery (IOR) techniques, such as polymer flood, can significantly increase the recovery factor. This technology, however, depends upon the availability of polymers resistant to high salinity water, since the mixing should be made with sea water. Furthermore, the logistical limitations in the offshore environment should not be disregarded. Another important issue is related to the oil characterization. Better openhole sampling techniques, for viscous oils in unconsolidated reservoirs, are required, in order to decrease the exploratory costs. Better prediction of the oil variation with depth and along the reservoir, considering the gravitational segregation (as detected in many Campos Basin reservoirs), the temperature variation and the oil genesis process itself, could guide the drilling of the appraisal wells and improve the field value estimative. At last, but not least, the prediction of the existence and characterization of the sealing potential of the tarmat bed, sometimes present at the bottom of the heavy oil zone, close to the oil water contact, is extremely important. A limited connectivity of the bottom aquifer with the oil zone would avoid the rapid water coning growth, allowing a more efficient water injection pattern and radically changing the development scheme. The oil-water relative permeabilities control the waterflooding displacement process in heavy oil reservoirs. Many issues still deserve developments in this area, such as: transient versus steady state measurement methods; influence of the displacement velocity; residual oil saturation determination, among others. To be representative, the displacement tests should be performed in the nonconsolidated plugs, containing live oil and restored wettability, which, definitely, is not a simple procedure. The Petrobras Research Center (CENPES) is developing techniques to improve these measurements, including the use of X-ray tomography. Well tests, as discussed, are complex for offshore heavy oil, particularly in deepwater. Many operational details still deserve technology development, but the discussion of these issues is beyond the scope of this paper.

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The optimization of the well pattern is crucial for the economic development of a heavy oil field. In Petrobras, the quality map technique (ref. 11) is being successfully applied, although the technique is not yet fully automated. It is clear that the key factor to improve the recovery in heavy oil reservoirs produced with water injection is to increase the well lengths effectively exposed to the reservoir. Simulations show that, for viscous oils, the reservoir behaves as if each well drains a single reservoir block and, consequently, if portions of the horizontal length do not contribute to flow, the associated oil will not be produced. Figure 8 shows a cross section along the horizontal path of a well in a viscous oil reservoir with a bottom aquifer (in red). Some well grid blocks were kept shut in, to simulate damaged intervals. It can be observed that the oil located below the damaged intervals is not produced. The existence of non-contributing intervals could be checked through production logging with the well in flow, which, however, does not work well for viscous oils, leading to the necessity of the development of new production logging devices or methods. Reduced well spacing is necessary when waterflooding high permeability heavy oil reservoirs. Figures 9 and 10 show cross sections in a reservoir with a bottom aquifer (in blue), developed with horizontal wells, comparing the water injection efficiency for an injector-producer spacing of 900 m (Fig. 9) and 450 m (Fig. 10). It can be seen that the closer the spacing the higher the recovery: in this case the recovery factor jumped from 10.1% to 21.7% with the inclusion of the second producer. Therefore, the main challenges in the well technology area are related to drilling and completing long horizontal lengths in non-consolidated reservoirs. The deepwater heavy oil reservoirs in the Campos and Santos Basins usually present low fracture gradients, which complicates the gravel packing operations in long horizontal lengths. Despite the difficulties, Petrobras has an excellent experience with openhole gravel packing (OHGP) in horizontal wells and keeps advancing in this area. In spite of the good experience with OHGP, Petrobras has installed expandable sand screens (ESS) in some horizontal and high-angle wells, and this technique may be an alternative for the completion of long horizontal lengths. Another important issue in the well technology area is the capability of isolating swept out intervals in long horizontal sections. Currently, External Casing Packers (ECP) are being used to allow the isolation in OHGP wells, but only the toe can be easily isolated. If other intervals are to be isolated, the operation will require more complicated techniques, since a tubing is not run into the horizontal section and there are no sliding sleeves to control the production. In the future, with the improvement of the reliability of intelligent completion systems, the workover operations will not require expensive rig interventions. Finally, it is worth mentioning that, as the main driver for cold heavy oil production is the effective well length, there is also a good scenario for multilateral wells. Artificial lift and flow assurance are other critical issues for exploiting offshore heavy oils. Reliable artificial lift devices, specified for high rate high power and long Mean Time to Failure (MTTF), must be available during the

development phase. When dealing with Dry Completion Units (DCUs) or other Production Units with a dedicated rig (e.g.: FPDU), the use of Electrical Submersible Pumps (ESP) seems to be a good option, since a rig will be available for deploying the pump. ESP deployment in satellite wells requires expensive interventions, which is a motivation for enhancing the reliability of the pumping systems. Petrobras has a good experience with ESP in subsea wells in deepwater (ref. 12), but there is room for technology developments, regarding the reliability. In the Captain Field, the platform wells produce with ESPs, but the satellite wells are equipped with Hydraulic Submersible Pumps (HSP), powered with water (refs. 3-5). In the beginning of the year 2004 a subsea multiphase pumping system will probably be installed by Petrobras in the flowline of a satellite well in the Marlim Field. The success of this equipment may provide another option for the heavy oil fields development, with the important benefit of avoiding the expensive rig interventions for the equipment retrieval. Anyway, as more than 80% of the Campos Basin wells produce with gas-lift, the use of ESPs, HSPs, Jet Pumps or other artificial lift methods represents a complete cultural change. Regarding to the flow assurance issues, efforts are concentrated to understand the water-in-oil emulsion behavior and modeling, so that the prediction and also the design of the pipelines can be optimized. The core-flow process using water is being developed by Petrobras under a research contract with the University of Campinas (UNICAMP) and may be an option to improve the heavy oil flow. In fact some core flow tests performed in an onshore heavy oil field were encouraging. Inverted emulsion flow presents the same advantages, with the drawback of requiring larger quantities of water. Heat management is other critical issue, mainly if the heavy oil presents a high pour point. Besides an efficient heat management system, techniques like heated water circulation, electrical flowline heating and pipe-in-pipe insulation may be necessary. Oil-water separation, as well as the oil treatment to meet the refinery requirements, is perhaps the most critical item for the whole offshore heavy oil development. The use of the current technology would result in very high separation temperatures, which can be unfeasible. Petrobras is planning some tests with standard technology in a fixed platform in the Campos Basin, which processes a blend of light oil reservoirs with a 13.7o API oil reservoir. The idea is to deviate the heavy oil to a dedicated separation train and test the separation efficiency, comparing with the theoretical simulations, and various chemical products. It is estimated that, for the 13.7 API oil, temperatures between 120o C and 150o C would be required for the gravitational separation and even higher for the eletrostatic separation. It can be concluded that compact equipments, designed with new technologies, not yet tested in a field scale, are required for such conditions. The best option would be to separate the produced water at the sea bottom (mudline) and reinject it in the reservoir. However, due to the high density and viscosity of the oil, an efficient and complete subsea separation seems to be quite complex. If the technological gaps are met, the heavy oil subsea separation system will also require reliable control and

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monitoring systems. The produced water reinjection, containing oil particles, will require high pressures to achieve the target injection rates. If fractures are created in the reservoir during the reinjection process, special attention should be given to monitoring its propagation. An alternative to be investigated is to simplify the offshore separation, removing just the free water and exporting the oil with the emulsified water. The full separation could be done close to the terminal, onshore. The gas-oil separation for heavy oils also deserves attention, due to the severe foaming tendency. Petrobras is currently testing chemical products to reduce the foam that is limiting the potential of an offshore heavy oil well. Once the oil is brought to the surface and separated from gas and water, the problems are not finished. Storage, offloading and transportation of the oil will require an efficient heat management process, requiring special equipments. Finally, new technologies to reduce the naphtenic acidity of the oil are required, since it is not unusual that the heavy crude present high Total Acid Numbers. Several technologies for the oil acidity reduction are being developed by Petrobras, under the Refine Technology Program (PROTER). New refining routes to improve the value of the heavy oil are fundamental to allow the economic feasibility of the heavy oil fields. Innumerable parameters affect the decision of developing offshore heavy oil, but we may say that the main driver is technology development. The technology development requires not only investment and expensive field tests, but time. Without new technologies, which require time for development and maturation, and field tests in pilot scale, the commercial disclosure of offshore heavy oil fields may be very difficult. The good news regarding the offshore heavy oil in Brazil are related to the significant volumes discovered in worldclass reservoirs in the Campos and Santos Basins, which could compensate the efforts in developing the new production technologies. The Petrobras Offshore Heavy Oil Technological Program (PROPES) In October, 2002, Petrobras launched a Technological Program with focus on its Offshore Heavy Oil Fields. The Program, named PROPES, covers most of the upstream disciplines and also an interface with the downstream area. The objective is to develop or integrate existing technologies that may turn into reality the challenge of producing the heavy oil already discovered in the Campos and Santos Basins. In fact, the significant heavy oil volumes recently discovered are in the 13 17 API range, with oil viscosities between 20 and 400 cP at the reservoir conditions. Some of the heavy oil fields are located in shallow waters, which simplify the appraisal and development strategies, but most of them are in deep water, which brings extra complexity. PROPES is divided in 9 systemic projects: Reservoir engineering techniques for offshore heavy oil. Long horizontal length wells.

Equipments for large bore horizontal wells. Artificial lift of heavy and viscous oil. Flow assurance and transport of heavy and viscous oil. Separation and treatment of heavy and viscous crudes. Integrated evaluation and production mobile system. Production units suitable for heavy crudes. Characterization and pre-treatment of heavy crudes. Each systemic project comprises several R&D projects and currently a total of 34 R&D projects are ongoing. The program is multi-disciplinary, and its close interaction with other Technological Programs in Petrobras, like PROCAP (Deepwater Technologies Program), PRAVAP (Advanced Oil Recovery Program) and PROTER (Refine Technologies Program), helps covering any possible gap. Among the main R&D projects we can depict: Development and application of high-power, highrate, large MTTF Electrical Submersible Pumps. The project comprises the investigation of the ESP performance with free gas fractions up to 40%, pumping oils with viscosities up to 400 cP. Feasibility analysis of alternative artificial lift methods for heavy oil in deepwater, such as jet pumps, hydraulic submersible pumps, progressive cavity pumps, among others. Characterization of water in oil emulsions, in order to improve the accuracy of pressure and temperature profile prediction in production strings, flowlines and pipelines. Drilling and completion with sand control mechanism of long horizontal well lengths in non-consolidated sandstone reservoirs, with low fracture gradients. The casing diameter must allow the installation of downhole artificial lift systems. New technologies for oil-water separation. The system should be compact enough to be installed on a floating production unit and present a good performance with reasonable separation temperature and residence time. Production units to deal with heavy oil and, mainly, with large quantities of produced water, which could be reinjected. Aspects of reservoir management, including well side-track and workovers, are being considered. The technology development is being made on a step-bystep basis, and, whenever possible, will be tested in shallow water or onshore fields before being extended to the deepwater environment. The completion date of the Program is scheduled to 2007. Conclusions Petrobras experience with heavy oil fields in the Campos and Santos Basins shows that some of these fields could be economically produced, under special conditions. The economic feasibility is controlled by factors such as: reservoir characteristics; water depth; possibility of blend with light oil; oil acidity; contaminants in the oil; transport, refining capability and marketability of the heavy oil, and, mainly, by the price scenario. As emphasized along the paper, the development of new production technologies long

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horizontals, reliable high rate artificial lift devices, efficient heat management, compact oil-water separation systems, among others is fundamental to optimize the heavy oil projects and make them economically feasible. The fiscal regime and the deadline for the appraisal of the offshore heavy oil discoveries are other important variables to be considered when analyzing the economics of these projects. The heavy oil well test operations in deepwater are complex and expensive, requiring special techniques to achieve the test objectives, including the reliable oil characterization. Extended Well Tests are necessary to reduce the risks of the definitive system in offshore heavy oil fields, what can be quantified by the Value of Information methodology. Some EWTs have been successfully performed by Petrobras in heavy oil fields in the Campos and Santos Basins. However, some of the reservoirs that have been discovered offshore Brazil present oils that are heavier and more viscous than those which have already produced in the EWTs. The successful history of Petrobras in developing deep water technology encourages the company to the challenge of producing offshore heavy oil. The recently created Offshore Heavy Oil Program, PROPES, intends to coordinate the development or integrate existing technologies that may turn into reality the challenge of producing the significant heavy oil volumes already discovered in the Campos and Santos Basins. Acknowledgments The authors would like to thank Petrobras for the permission to publish this paper, and to the professionals in the Petrobras E&P Production Engineering Group and in the Research Center (CENPES). A remarkable contribution was given by the professionals from the Business Units of Maca (UN-BC), Rio de Janeiro (UN-RIO), Esprito Santo (UN-ES), and the Services Unit (E&P-SERV), responsible for the field operations described in the paper. We also thank Dr. lvaro Marcello Marco Peres for reviewing the paper.

References
1. Pinto, A. C. C., Guedes, S. Bruhn, C. H. L., Gomes, J. A. T., S, A. N. and Fagundes Netto, J. R. : Marlim Complex Development: a Reservoir Engineering Overview, SPE 69438, (2000). 2. Jayasequera, A. J. and Goodyear, S. G.: The Development of Heavy Oil Fields in the UK Continental Shelf: Past, Present and Future, SPE 54623, (1999). 3. Etebar S.: Captain Field Development Project Overview, OTC 8507 (OTC, 1997). 4. Lach, J. R.: Captain Field Reservoir Development Planning and Horizontal Well Performance, OTC 8508, (OTC, 1997). 5. Etebar, S.: Captain Innovative Development Approach, SPE 30369, (1995). 6. Del Lucchese, C., Pinto, A. C. C. , Decnop, A. C. and Branco, C. C. M.: Extended Well Tests in Offshore Oil Fields, Petrobras Internal Seminar, (2001). 7. Pinto, A. C. C., Trindade, W.L. and Matos, J. S..: Offshore Heavy Oil: A New Challenge for Petrobras, III E-Exitep, Vera Cruz, Mexico, (2003). 8. Demirmen, F. Use of Value of Information Concept in Justification and Ranking of Subsurface Appraisal, SPE 36631, (1996). 9. Demirmen, F. Subsurface Appraisal: The Road from Reservoir Uncertainty to Better Economics, SPE 68603, (2001). 10. Pallant M., Cohen D. J. and Lach, J. R.: Reservoir Engineering Aspects of the Captain Extended Well Test Appraisal Program, SPE 30437 (1995). 11. Cruz, P.S., Horne, R.N. and Deutsch, C. V.: The Quality Map: a Tool for Reservoir Uncertainty Quantification and Decision Making, SPE 56578, presented at the 1999 ATCE, Houston, Tx, 3-6, (1999). 12. Mendona, J. E., Mattos, C. H. S., Ritterhaussen, J. H.: The First Deepwater Installation of a Subsea ESP: RJS477, Campos Basin, Brazil, OTC 10969, presented at the OTC, (1999).

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Offshore heavy oil discovery

1 Y

Does VOI pay out casing and well test ? Y

Horizontal Sidetrack?

Other well?
N

Y 1

Out

Careful well test Sand Control, artificial lift, design: Monophasic sampling, Gas-oil separation

N N

Development feasible with this well design?

Development feasible with Saia horizontal wells?

Estimate VOI to drill and test a horizontal well

Calculate VOI for an Extended Well Test

Does VOI pay out ?

Does VOI pay out the EWT? Y

N Feasibility

Drill horizontal

Careful plan the EWT FPSO contracting, X-Mas Tree Objectives : Artificial lift performance, Flow assurance analysis, emulsion effects, separation and oil treatment

Figure 1 Decision tree for an offshore heavy oil well test

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Spread bars and long slings for coiled tubing ; the contingency to guarantee the flow was to pump diesel through coiled tubing

Flow Head

Sheave for the electric cable

Electrical cable for ESP

Surgency line :Coflexip SSTT hydraulic hose

Riser sealing mandrel

Deep Water Frontier : RIG FLOOR

Figure 2 Overview of the surface arrangement for a deepwater heavy oil well test

Fig 3 - Riser Sealing Mandrel to protect the electrical cable and hydraulic hose at rotary table

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6 5/8 bop can

Fig 4 BOP CAN : to allow closing the BOP RAM withouth damaging the ESP cable.

Figure 5 Surge tanks (electric heating) as a second stage of separation / flow rate measurement as a back up

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Main objectives: Test production technologies at 1700 m water depth Investigate multiphase flow at low temperatures (gas-lift)
Figure 6 FPSO offloading during the EWT in Marlim Sul.

W E L L E S S -1 1 0 H P E L L E S S -1 1 0 H P JUB ARTE ART

F P S O - S E IL L E A N

1300 m

D P R 5 .6 2 5 ID

E S P S ys te m 9 0 0 H P 2 5 0 0 0 b p d

1500 m

1070 m 1070 m

Figure 7 Jubarte Extended Well Test scheme

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Figure 8 Cross section along the horizontal well length in a viscous oil reservoir with bottom aquifer.

Figure 9 Water saturation after 6 months and 10 years of water injection. Injector-producer spacing of 900 m.

Figure 10 Water saturation after 6 months and 10 years of water injection. Injector-producer spacing of 450 m.