Cost Effective Drilling in Heavy Oil and Financially Constrained Environment – A Sapele Shallow Field Development Case Study

Heavy oil is in abundance in the Niger Delta Region of Nigeria but few operators are developing it because the high cost of development. Most operators have also suspended drilling of new wells due to financial contraints and the high cost of drilling. Apart from the heavy crude oil (18 to 20 deg API) characteristic of the Sapele Shallow field and the current financial constraints induced by low oil prices, the Sapele Shallow field has other technical challenges such as loss circulation, reservoir structural uncertainties and artificial lift issues for heavy oil. Other challenges include vague contractual rates, improper well scope definition and application of new technology. Based on the reviews done, wells can still be drilled, even with shoe string budgets irrespective of the technical and financial challenges. A variety of technologies and concepts has been developed to mitigate the challenges and reduce the average Sapele Shallow field development budget, and they include; Re-negotiation and reduction of existing contractual rates.Improved well planning and landing strategies.Reduction in drain hole length.Batch drilling.Slim hole drilling.Proper well completion scope definition.