Recent Approach to IOR Application for Producing Deepwater Oil Filed in GOM

Abstract

JX Nippon Oil & Gas Exploration Corporation (JX) participates as a non-operator in K2, a producing oil field in the deep water area of Gulf of Mexico (GOM). K2 oil field located 180 miles South of New Orleans, and water depth is 4,000 ft at the field location. It was discovered in 1999 and has been producing since 2005. JX joined the project in early 2007 through subsidiary company that is established in USA. K2 oil field is producing oil by natural depletion, and lower oil recovery factor is expected due to weak pressure support.

To improve oil recovery factor, many IOR/EOR options have been considered since oil production was started. Candidate options are infill well, water injection, CO₂ or N₂ injection, gas lift, booster pump, etc. Infill well drilling was started in year 2014. In parallel, a project team was established to study technical and economical feasibility of IOR/EOR options. Study by the project team is not finalized yet, however, all partners intend to apply water injection and riser base gas lift by using existing host platform.

Large amount of drilling and maintenance cost are needed to produce oil from deep water fields. The oil spill at the Macondo prospect also affected our project and resulted in higher development cost and longer schedule because of “Moratorium Period” and new strict safety assessments for drilling works. Sometimes, they need longer time to make alignment for each development work among partners under current economic circumstances.

JX would continue to participate in K2 project, even if some difficulties are there. Because, the deep water GOM has high quality potential reservoirs, a matured infrastructure for oil & gas sales, stable political and economic circumstances, and the opportunity to participate in the latest deep water technology.