Sour-Rated 10,000-psi System High-Temperature Gas Development Wells: Sustaining the Malaysian National Gas Supply Through a Journey of Optimization in North Malay Basin

Abstract

Summary High temperature (HT), high carbon dioxide (CO2) coupled with hydrogen sulfide (H2S) contents, and rapid pore pressure fracture gradient (PPFG) pressure ramp increase in gas development wells can lead to significant capital expenditures for operators. Such wells typically need high corrosion resistance alloy material with at least a 10,000-psi (10-ksi)-rated system to complete. The deep reservoirs of the North Malay Basin, offshore peninsular Malaysia, also fall into the described category. In this paper, we aim to share the optimization journey, applications, and learnings of the company’s HT sour-rated 10-ksi gas development wells through several phases, besides fulfilling the gas delivery need for the country. In addition, we identify engineering and operational optimizations to reduce the well’s time and cost while upholding the safety of the crew as a top priority. The sour-rated HT gas development campaign for the company began in the year 2017, followed by a second campaign in the year 2018. Our focus centers on the third campaign, which concluded in the year 2022. A total of four, three, and four wells were drilled and completed in the first, second, and third campaigns respectively. The company’s wells engineering team applied Lean methodologies that covered the entire Plan-Do-Check-Adjust cycle to achieve optimization. Using well data, learning from experiences, working together, maintaining consistency, and pursuing ongoing enhancements are the main factors that ensure positive optimization outcomes. Fit-for-purpose drilling and completions equipment design and application, rig offline capabilities planning, wellhead dummy hanger plug design for offline cementing, intervention-less production packer setting device, offline annulus nitrogen cushion fluids displacement, and other applications will be explained in the paper. In this paper, we describe the operational challenges faced and outline the applied optimizations that led to significant improvements in the well performance compared with targets and previous campaigns. The optimization efforts by the wells team extended from the engineering phase to the execution stage, including the use of in-house digital capabilities to monitor well performance, in alignment with industry practice. The recent campaign post-optimization concluded with no safety incidents, average per well more than 48 days ahead with 39% lower cost than previous campaigns, average of 5.6% overall well nonproductive time (NPT), and achieved first gas to meet the country’s power generation demand. Furthermore, the motivating optimization results also coupled with 25% more production results compared with the prognosed. The positive results of this optimization journey were significantly influenced by transparent, collaborative, and proactive communication across different departments.