Idle Wells Reactivation- The Kenyon International Story

Abstract

With increasing concern for life and environmental safety, and an encouraging upward trajectory in the oil price, there is the need for the government and operators to actively invest in the reactivation of idle wells by putting the right enablers in place. Reactivation of idle wells has been proven to be more economically attractive to add to existing potentials than new exploratory activities. This paper showcased a case study of the reactivation of AKOS-004LS well, and outlined strategies developed by Kenyon International in collaboration with the Nigerian Upstream Regulatory Commission to effectively manage idle wells in Nigeria for economic and social benefits. AKOS-004LS is a dual completed well with a combined potential of about 5,300bopd before it was shut-in due to a previous recorded fire incident that compromised the integrity of the well structure. As part of the reactivation process, the well structural integrity was restored, sustained casing pressure issue investigated and resolved, and a zonal change was carried out in the long string to produce new oil and additional barrels to the operator. The estimated cost for a conventional rig-based workover operation to restore the structural integrity of the well is about $12m but the workover operation was eventually executed at a cost far below $5m with the deployment of the proprietary rigless Integrated Wells Management Plan by Kenyon International. The combined potential of the well was also restored to its original potential of about 5,300 bopd, producing optimally from both strings. This proprietary Integrated Wells Management Plan by Kenyon International is a game changer as it has proven to to be technically efficient, cost effective and has the potential to reduce the number of emerging idle wells, thus, contributed to incremental potential and overall reduction in health and safety concerns.