Future CO2 storage on NCS

Nasjonal forskerskole i petroleumsfag 2.11.2012 Fridtjof Riis

19.04.2013http://www.npd.no/Global/Norsk/3-Publikasjoner/Rapporter/PDF/CO2-ATLAS-lav.pdf

CO2 storage on the Norwegian shelf: role of the authorities Status: Political decision that CO2 from the Mongstad power plant shall be transported and stored in an offshore reservoir. Storage is planned to start in 2020. The capacity of the storage should be about 1 Mt/år. The costs will be covered by the State.

This injection rate of CO2 is comparable to Statoil’s CO2 injection in the Utsira Formation, Sleipner Field, and somewhat higher than the injection rate in the Snøhvit Field . There is an interest in the industry to operate the storage of larger volumes of CO2 . Nomination Based on a request from the Ministry of Energy, the industry nominated 5 areas for CO2 sequestration in 2011. The NPD is evaluating these areas.

The preparation of regulations for CO2 sequestration will soon be finished . Awards of blocks/areas for CO2 sequestration require that regulations, taxation and financial agreements are established. The authorities must also be prepared to handle possible conflicts of interest in an area of CO2 sequestration .

DECISION No 406/2009/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020

The European Council of March 2007 emphasised that the Community is committed to transforming Europe into a highly energy-efficient and low greenhouse-gas-emitting economy and has decided that, until a global and comprehensive agreement for the period after 2012 is concluded, and without prejudice to its position in international negotiations, the Community makes a firm independent commitment to achieve at least a 20 % reduction of greenhouse gas emissions by 2020 compared to 1990.

Norwegian regulations will be based on the EU regulations and the Norwegian Petroleum Act. 3 ministries aer involved. EU regulations Selection of storage sites (aquifers) Exploration permits Storage permits (”PDO”) Operation, monitoring, mitigation

Closure and post-closure Transfer of responsibility A geological formation shall only be selected as a storage site, if under the proposed conditions of use there is no significant risk of leakage, and if no significant environmental or health risks exist.

These regulations are challenging for the authorities and require more competent geologists and reservoir engineers.

CO2 transport and storage in 2030”Very high scenario”

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One North Sea study 2010: CO2 sources in Central Europe and UK, major sinks in the North Sea. Large industrial projects, need 5 planning and cooperation. www.npd.no

CO2 to EOR

a technical potential in the Norwegian fields For 20 oilfields:150-300 million Sm3 extra oil, 3-7% (NPD study 2005) Need: 25 Mt CO2/year for 30 years IF enough CO2 could be made available at the optimum time in their production life at commercial conditions.

See also Holt and Lindeberg (BIGCO2, CLIMIT, 2007)

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Source: NPD

The North Sea CO2 storage Atlas was prepared by the NPD on request from the Ministry of Energy

Is it possible to store very large volumes of CO2 in the NCS? Which aquifers and areas are most suitable? Close cooperation with the universities, research institutes, Gassnova and GEUS Close relations to authorities in the EU member states Next questions: • What about the Norwegian Sea? • Is it feasible to store very large volumes of CO2 in the NCS? project

CLIMIT

Chemistry, physics, technology, reservoir and seal geology….

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Statoil

CO2CRC

Geocapacity project methodology

CO2 in the sedimentary formation

Formation water

Residual trapping

Two types of trapping – structural closures and aquifers 19/04/2013

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Extra oil recovery with CO2-flooding • •

Typically 5-10 % in waterflooded reservoirs The CO2 flooding improves sweep after waterflooding as it will contact oil that is not contacted in specially in the upper part of the reservoir. CO2 is often used with alternating of water injection thus improving sweep of the CO2 flood. CO2 can also mobilize residual oil (paleo-oil zones)

Minimum CO2-oil miscibility pressure as a function of oil gravity

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CO2 atlas estimation of storage capacity MCO2 = Vb x ϕ x n/g x ρCO2 x Seff MCO2 Vb ϕ n/g ρCO2 conditions Seff

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amount of CO2 in tons bulk volume porosity net to gross ratio density of CO2 at reservoir storage efficiency factor

Characterization of aquifers and potential storage volumes

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Mid Jurassic

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Late Jurassic

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Aquifer properties depend on depositional environment

CO2 Storage in abandoned fields Example from Frigg field

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Hydrocarbon area

Pressure regimes

CO2 injection shall not be in conflict with hydrocarbons, but old hydrocarbon fields can be used for IOR (not calculated in the atlas, but subject to further studies)

Saline aquifers

De tre viktigste akviferene for CO2 i nær framtid

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Utsira and Skade aquifer Hypothetical GGRGreat Glen River, From paleocene to Pliocene

Channels , top Utsira level

Geosection between 25/1-8S (west), and 25/2-10S (east)

Eir

Eir

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©Ine Tørneng Gjeldvik NPD

The Sandnes Formation

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Long distance CO2 migration

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Simulation model Year 2416

Year 5616

Year 9916

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Further studies • Evaluation of southern part of Utsira Formation • Bryne – Sandnes aquifer in the Egersund Basin • Extend atlas to cover the Norwegian Sea shelf areas • Screening of fields for use of CO2 to EOR and storage

Motivation for combining CO2 for EOR and storage : Large remaining oil resources and safe storage capacity NPD – SINTEF study

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Mapping the potential of CO2 storage opportunities in mature oil fields...

Selection of field candidates • 40 oil fields on production in the Norwegian North Sea selected for screening • 23 fields chosen for EOR calculation • Fields screened out due to: – – – –

Size (too small) Gas cap Earlier gas flooding Earlier WAG

• In some of the chosen fields only part of the field with water injection chosen 31

CO2 for EOR in Norwegian Hydrocarbon Fields 140812

Example of production profile calculated by the SINTEF module Brage 9 Oil (mill. Sm3/year)

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EOR oil (mill. Sm3/year)

Production rates

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Water (mill. Sm3/year) Gas (bill. Sm3/year)

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field data

5 4 3 2 1 0 0

10

20

30

40

Years of production

The predicted oil recovery profile is matched to historic values by use of the two geological fit parameters (heterogeneity exponent, vertical permeability multiplicator) 32

CO2 for EOR in Norwegian Hydrocarbon Fields 140812

Techno-economical infrastructure model •

SINTEF has developed a techno-economical infrastructure model for large scale deposition of CO2 in oil reservoirs and aquifers, which was used (Holt &Lindeberg, 2004),

Oil reservoirs. Export terminal (Emden) CO2 from industrial sources. Compressed and fed into main pipeline.

Oil producers bye CO2 according to needs. Branch pipelines Main pipeline infrastructure

Aquifers Excess CO2 is deposited in aquifers.

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CO2 for EOR in Norwegian Hydrocarbon Fields 140812

Pipeline sketch and expl. well density map

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CO2 for EOR in Norwegian Hydrocarbon Fields 140812

Additional CO2 storage in saline aquifers • Use saline aquifers as buffer storage capacity to maintain stable CO2 deliveries from Europe ( ~70 mill tonnes CO2/year) • Will use aquifers around Sleipner (Utsira) and Frigg(Frigg and Heimdal sand) • Johansen Fm south of Troll also considered but uncertain due to storage place for Mongstad CO2 • Bryne/Sandnes aquifers east of Ekofisk also considered but too far away • Estimate approx. 1 mill tonnes CO2 /year per well in CO2 in saline aquifers

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CO2 for EOR in Norwegian Hydrocarbon Fields 140812

Alvheim

Balder

Brage

Gullfaks

Jotun

Oseberg Øst

Ringhorne Øst

Snorre

Statfjord Brent

Statfjord Nord

Statfjord Øst

Sygna

Tordis

Veslefrikk

Vigdis

CO2 deposition rate in the oil fields (Base case) Volund

Ekofisk

Eldfisk

Embla

Hod

Tor

Valhall

Gyda

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CO2 deposition rate, million tonnes/year

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Deposition in aquifers 50

40

30

20

10

0 2020

2025

2030

2035

2040

2045

2050

2055

2060

Year

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CO2 for EOR in Norwegian Hydrocarbon Fields 140812

•

• • • • • • •

Conclusions

Screening of oil fields for CO2 EOR in the Norwegian North Sea has shown 23 possible candidates with a total potential of 250 – 340 mill Sm3 of extra oil from 2020, corresponding to 5.4 – 7.4 % of OOIP. Total investment 42 bill. USD 70 mill tonnes CO2 injected per year Main pipeline transportation cost 8.5 USD/tonne CO2 Net present value (NPV) 40 bill USD at 7% interest (oil prize 90 USD/bbl, CO2 cost 25 USD/tonne) IRR 20.6% with 320 mill Sm3 extra oil corresponding to 6.9% recovery Doubling of well cost gives a negative NPV at base case oil prize and CO2 cost Using WAG (1:1) instead of continuous CO2 flooding can increase the NPV by 40%. Reducing CO2 cost. Less CO2 is stored

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CO2 for EOR in Norwegian Hydrocarbon Fields 140812

CO2 balance for base case

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CO2 for EOR in Norwegian Hydrocarbon Fields 140812

Summary Large focus on research – increasing understanding of how CO2 behaves in the reservoir It is technically possible to develop a sufficient CO2 storage potential in the North Sea aquifers for large scale storage Because of economy and public concern storage pilot projects have been delayed in Europe Strongly increasing interest for CO2 to EOR, which is already a large industry onshore, but not yet tested in large scale in the offshore. Will we see a CO2 industry boom in the North Sea?

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The Bryne/Sandnes aquifer

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The Bryne/Sandnes aquifer

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The Boknfjord Group

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Calculated total storage capacity

Characterization

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The Bryne Formation

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