Innovation and Efficiency. Key to Stability for West Siberian Conventional Resources

By Joe Parson, June 25, 2014

GE serve just this purpose. Under the agreement, Rosneft will be part of a major R&D center and application engineering training center currently under develop-ment in Oklahoma City.

The lesson for foreign firms is also clear: those offering easy access to the transfer of proprietary technologies and processes will have an easier time securing contracts with Russian operators.

LUKOIL Leads in EOR Innovations that Revitalize Cast-off Well Stock

LUKOIL is an innovation leader among private producers in Russia, through its application of field-specific productivity measures to recover oil in abandoned fields.

Driving innovation at LUKOIL is the Russian Innovative Fuel and Energy Company (RITEK), a LUKOIL subsidiary which also collaborates with Skolkovo Foundation on a variety of programs including nanotechnology. In addition to RITEK, the LUKOIL Engineering research center provides field-specific engineering solutions to enhance reservoir productivity. The company states that oil produced from EOR applications in 2013 accounted for 28.6 percent of LUKOIL’s total production volume in Russia.

Furthermore in the field of science, LUKOIL has partnered with multiple universities and in 2003 also established the Corporate Geological and Hydrodynamic Modeling Center (CGHMC). This center is at the forefront of LUKOIL’s application of geological and hydrodynamic modeling. LUKOIL-Engineering deputy general director Viktor Shkandratov claimed in a 2012 interview with LUKOIL’s corporate magazine, Oil of Russia, that the company is looking into 4D Seismic exploration and micro-seismic monitoring to maximize hydraulic fracturing feasibility assessments and productivity.

LUKOIL’s EOR activities are based around a threefold combination of drilling, reservoir treatment, and passive waste-prevention methods. The Geological Information System for Processing Field Development Data (GIS UDOM) is used to integrate ICT from individual wells across LUKOIL’s domestic and international fields. The Information Communications Technology (ICT) program handled by RITEK specifically bolsters these three engineering methods by monitoring various factors at individual sites. The ICT program further utilizes mass databases in order to catalogue geological surveys, calculate feasibility studies of various technologies, and automate certain selection processes.

Maurice Dijols, former president of Schlumberger Russia, asserted in 2010 the LUKOIL was the company’s chief Russian partner. This partnership has flourished in the wide application of horizontal drilling and multi-zonal hydraulic fracturing processes. In 2013 the company’s use of such techniques accounted for 35 percent of all EOR production. In 2013 alone, 96 of such new wells were commissioned with a declared average production of 308 barrels per day, allegedly triple the company’s conventional rate.

Specifically at horizontal wells in the Caspian offshore Yuri Korchagin field, the company looks to acquire and apply new smart well technologies in 2014. At this same field the company achieved a notable feat of a 4,292-meter-long horizontal section with a total bore length of 7,600 meters.  

The company’s reservoir treatment is focused around the utilization of Steam Assisted Gravity Drainage (SAGD) in conjunction with its horizontal drilling operations. By using two vertical lines, the upper injection point forces steam into the reservoir, maintaining pressure. Alexander Danilenko, deputy general director of LUKOIL-Engineering, says this enables a 60 percent total