WellDynamics Contracted for Brunei Installations

WellDynamics has been awarded a two-year call off contract by Brunei Shell Petroleum Sendirian Berhad (BSP) for the supply of SmartWell intelligent completion equipment and services. Equipment and services for the Champion West Phase II development will be procured under this contract.

The Champion West Field was discovered in 1975 and is located approximately 27 kilometers offshore Brunei. Champion West Phase II will develop the remaining reserves that are within reach of the existing infrastructure. By the end of the development, scheduled for April 2004, six wells will have been drilled. Depending on the success of this initial phase, three further wells - two oil and one gas - may be drilled.

WellDynamics' award winning Digital Hydraulics(tm) technology will be installed to enable BSP to have remote, independent control of multiple reservoir intervals. This system, together with real time data acquisition, will provide BSP with closed loop reservoir management capabilities.

Digital Hydraulics minimizes the number of control lines required to operate multiple flow control devices. Interval Control Valves (ICVs) will be deployed for remote control of each zone, and zonal isolation will be achieved using seal assemblies inside the pre-drilled liner. The ICVs will initially be used for efficient clean-up in each zone of the long horizontal, which are up to 2 km in length, and will later be used for reservoir management.

The wells will be equipped with a Distributed Temperature Sensor (DTS) and Permanent Downhole Gauges (PDHG) for optimum reservoir and well performance monitoring.

The drilling program began in mid-March with the first well being successfully completed on May 27, 2003. The program for the first tranche of wells is scheduled to finish next year and represents a total of over 6,000 man-hours for WellDynamics personnel drawn from Brunei, Scotland and the Gulf of Mexico.

Jaap van Ballegooyen, Head Development East, Brunei Shell Petroleum Co Sdn Bhd said "The completion operations went very smoothly and the ICVs are functioning properly. Some improvements are to be made with respect to the surface hook up to ensure uneventful manipulation of the ICVs."

The wells on CWWJO3 will be operated manually using WellDynamics' multi well modular Hydraulic Control Systems. The wells on CWWJO2 will be operated remotely from the Champion 7 production platform using a WellDynamics six-well Hydraulic Control System controlled by its proprietary Surface Data Acquisition and Control unit.

Mike Fleming, CEO WellDynamics, said: "SmartWell technology is suited to most reservoir and well scenarios whether marine or land and can therefore play a vital role in managing production and operating costs effectively. Using intelligent completions to improve ultimate recoverable reserves can totally transform reservoir economics. The global trend for using the technology for this purpose continues to grow."