Multi-lateral Coiled Tubing Drilling Provides Economic Access to Alaska’s Viscous Oil

By

L.J. Vendl and M.O. Johnson (BP Exploration (Alaska) Inc.)

BP’s first Coiled Tubing Drilling (CTD) horizontal multi-lateral sidetrack pilot delivered more than 4000 BOPD initial rate, at a savings of more than $1 million (versus conventional drilling) in 2001. The pilot demonstrates the potential to deliver $10MM savings in a 20 well program at Milne Point Alaska in coming years. Four CTD multi-lateral sidetracks targeted the Schrader Bluff viscous oil reserves in 1H 2001. This pilot project provided an initial 8% increase in oil production to the field, was completed 10% under budget. The program also set several North Slope CTD drilling records, all with perfect HSE performance. This was achieved through innovative: Team use of the new collaborative visualization environment (COVE) to quickly identify reserve targets and plan the sidetracks. Use of an advanced electric line controlled CTD drilling BHA, which shattered previous rate of penetration records. Completion optimization that saved $100k/well. This year’s CTD drilling of the horizontal laterals proved cost savings of up to 33% when compared to rotary drilling and delivered initial rates of more than 1000 BOPD per well, and demonstrates that CTD will drive a step-change in future economic development of the 15 billion barrel OOIP viscous oil resource base on the North Slope. This lower cost structure has potentially wide ranging impacts for marginal viscous oil fields around the globe, enabling previously uneconomic reserves to be viable targets.

AAPG Search and Discovery Article #90008©2002 AAPG Pacific Section/SPE Western Region Joint Conference of Geoscientists and Petroleum Engineers, Anchorage, Alaska, May 18–23, 2002.