BSP - 80 Years On And Still Going Strong

Bandar Seri Begawan - The Brunei Shell Petroleum Company (BSP) has been at the forefront of the oil and gas development in Brunei Darussalam for over 80 years.

The company currently operates 10 fields and produces over 350,000 barrels of oil and gas equivalent every day. But it all started with the discovery of the onshore Seria oilfield. This giant field, which stretches for 25km along the coast between Seria and Kuala Belait, has been the backbone of Brunei's oil production since 1929 and continues to be a very important low cost contributor to the national oil production levels even today.

BSP has drilled nearly 900 onshore wells exploring and developing the oil reserves of this field, and over 1.1 billion barrels of oil had already been extracted. BSP has continuously maximised production from this valuable asset and has drilled over 140 onshore wells in the last 25 years alone.

In 2004, some new oil bearing blocks were discovered just under the shallow marine surf zone on the northern flank of the Seria field and the development drilling started in 2007. The T201 drilling rig has been stationed on a site, a very brief walk behind the Oil and Gas Discovery Centre for over two years and has become a familiar landmark to all who live in the area.

Whilst on location, the rig has drilled and completed 25 high technology 'fish-hook' wells into this northern flank and the production is now onstream. Of note is that the T201 drilling rig has won the Shell Land Rig of the Year' award for the last two years, out of a pool of 80 other rigs across the world, based on excellent safety and drilling performance.

It will shortly be moving off location, which will mark the end of this initial phase of the Seria North Flank development. As the hydrocarbons have become increasingly difficult to find and extract, technological breakthroughs have been required to continue the production.

The technologies deployed in the Seria North Flank wells are examples of such innovation. Indeed the last well (Seria-892) is the longest `fish-hook' well ever drilled; attaining over 4km in length to reach the furthest blocks in the Seria North Flank, and contains a host of gadgets and devices aimed at maximising the amount of oil that can be recovered from the Seria reservoirs.

Brunei Shell Petroleum Managing Director, Dr Grahaeme Henderson, is rightly impressed with the breadth of technological expertise being deployed. "Eighty years on, and we continue developing the same oilfield where it all began in 1929. But we are better, stronger and smarter in facing the more complex technical challenges of today.

Brunei Shell has set itself up as a world leader in the implementation of smart well technologies and the development wells in the Seria North Flank could be said to be some of the 'smartest' wells ever drilled by any company anywhere in the world."

Another key aspect of the development is that the project has been staffed mostly by Bruneian nationals, particularly with an exceptionally talented crop of young Bruneian graduates. Dr Henderson added, "Everyone in Brunei can be proud that, today, these young Bruneian professionals are global trailblazers, leading the world in terms of well technology and oil field development.

This is something to be immensely proud of." The Seria North Flank wells are now onstream and have contributed to a doubling of the Seria field production over the last two years. Over five million barrels of oil had been produced from the north flank blocks already!

With this initial phase up and running, focus will move to other blocks up and down the coastline where there are similar opportunities. Shortly, the T201 drilling rig will move to the Anduki area drilling and completing more high technology `fish-hook' wells.

There are many blocks lying under the shallow waters just off the coast, and BSP will be very busy over the next few years continuing to pursue these onshore 'fish-hook' developments. As well as new developments on the Seria North Flank, BSP is rejuvenating the older parts of the Seria field through the application of an Enhanced Oil Recovery (EOR) project.

[ Oil engineers believe that EOR could extract 30-60 per cent or more oil from the reservoirs’ original reserves compared with 20-40 per cent using the primary and secondary recovery method. ] source : http://news.brunei.fm/2010/04/02/eor-offers-hope-for-dry-oil-wells/

Through water and chemical injection schemes, additional oil can be recovered, increasing the value of the asset to Brunei. A pilot EOR project is currently underway to allow BSP to optimise the project plans, paving the way for a large-scale EOR project and the continued long-term oil production from the field.

Thanks to the technology and innovation of the people of BSP, the Seria field will continue to fuel the growth and development of Brunei Darussalam for many years to come. -- Courtesy of Borneo Bulletin