Abstract

Esso Resources Canada Limited plans to commercially produce bitumen from oil sands at Cold Lake, Alberta, through a series of 1500 M3/d production phases. The drilling and completion of an initial 110 directionally drilled steam stimulation wells per phase was accomplished within specified time, cost, and quality constraints with minimal environmental impact and maximum regional, provincial, and national socio-economic benefits. This paper describes the application of Esso's Cold Lake pilot drilling and completion experience on a commercial scale.

Overview

Esso has been involved in the commercial development of bitumen production from the oil sands found in the Cold Lake region of Alberta (Figure 1) for over 20 years. This development has centered on Esso's May/Ethel and Leming pilots begun in 1962 and 1973 respectively. The richest oil sands deposit in this region is contained in the Clearwater Formation (Figure 2). The Clearwater sands contain an estimated seven billion cubic meters of bitumen. At 450 m from the surface, this formation is too deep to utilize the mining techniques used at the Athabasca Tar Sands in Northern Alberta. Development by Esso is based on drilling shallow directional wells to recover the bitumen by steam injection. Commercial development at Esso's Cold Lake leases will occur in 1500 m3/d phases. The first two phases, referred to as Cold Lake Production Project phases I and II (CLPP I/II), required the drilling and completion of 220 directional wells.

Project Objectives

A quick, efficient, and cost-effective program was needed to maximize the number of wells drilled and completed between October 15 and December 31, 1983, and to achieve program completion by June 30, 1984. To accomplish this, a project team was mobilized June 19, 1983, to develop a program that required six drilling rigs drill 120 wells, and three service rigs complete 60 wells in 1983. The remaining 100 wells were to be drilled by spring breakup 1984, with the last well completed June 15, 1984. A drilling and completion schedule was developed using most recent Leming Pilot program performance as a guideline (Figure 3).

Systems which had been developed at Esso's Cold Lake pilots since 1973 were utilized in the directional drilling and well completion program. In addition, technical advances and practices were incorporated into the program to further improve efficiency and reduce costs.

Bidding Strategy

Acquisition of necessary materials and services for CLPP I/II began with market surveys which confirmed the continuation of a general drilling and well servicing industry slowdown. Tenders were solicited for drilling and completion materials and services in advance of normal tendering time to take advantage of this market situation. Drilling and well completion tenders were divided into small units to allow several contractors to submit successful bids.

Bids were evaluated on cost, equipment, personnel quality, and past performance. These analyses were then reviewed by a CLPP bid review committee to ensure they adhered to corporate requirements including safety, cost effectiveness, and the maximization of regional, provincial, and Canadian content.

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