Paleogene Secondary Recovery Analysis

Abstract The Paleogene has been shown to contain very large reserves. The characteristics of these reserves however present some unique challenges for operators in producing them in the same economic fashion as other plays within the Gulf of Mexico. Artificial lift in the form of downhole electric submersible pumps (ESPs) or subsea mudline boosting pumps are being sought out to improve the recoverables and overall economics of Paleogene field developments. Small improvements in recovery factor can have a significant impact on the economics given the large size of these reservoirs. Many variables come into play that can impact the overall economic performance of a field development using pumps as a means of increasing recoverables. Downhole ESPs when used in combination with mudline boosting pumps have the potential for delivering the best recovery factors, however poor reliability performance and high intervention costs associated with the use of ESPs in subsea wells can negate the value of those recovery gains. Mudline boosting pumps by comparison, have lower intervention costs, and are generally accepted as having better reliability performance over downhole ESPs. A production performance analysis was performed for a number of configurations for ESP and mudline pumps for Greenfield developments to determine the improvement in recoverables. An economic performance evaluation was then conducted, comparing the value of the increased recoverables against costs for the hardware, the installation, annual operational costs, and intervention and maintenance costs over a 30 year field life of a Paleogene reservoir.