AGIP'S ADRIATIC WELL SETS RECORDS

Agip SpA soon will start commercial production of oil and gas from its Aquila field in the Adriatic Sea in a record setting development.

Agip claims these records for Aquila:

The world's deepest water for commercial production at 850 m (2,788.7 ft).
The biggest flow rate for an Italian oil well, with preproduction testing of a delineation well currently yielding a flow rate of 10,000 b/d of 32 gravity oil. The well also is producing 3 MMcfd of natural gas.
Deepest water for commercial production from a horizontally drilled well section.

In addition, preproduction tests of the Aquila well involve a 656 ft horizontal section drilled at a depth of 13,120 ft, a notably deep pay zone for a horizontal section.

For full development, Agip is considering installation of a tension leg platform or a subsea development tied back to a floating production storage system to develop the field.

AQUILA DETAILS

Agip drilled the 1 Aquila discovery well with the Discoverer Seven Seas semisubmersible in 2,713 ft of water in September 1981. Total depth was 13,931 ft.

The discovery well flowed 3,000 b/d of 37.7 gravity, 1.77 wt % sulfur oil from Tertiary, 1 pay at 12,680-12,870 ft.

The delineation well is in Zone F 40 km off Italy's coast along Albania's offshore border. Agip estimates potential reserves in Zone F at 400 million bbl of oil and 2.8 tcf of natural gas. Oil & Gas journal estimated Italy's proved oil and gas reserves as of Jan. 1, 1993, at almost 750 million bbl of oil and 13 tcf of gas.

Preproduction testing is to be complete by the end of August by Reading & Bates Drilling Co.'s Jack Bates semisubmersible. Agip plans to drill two more wells in the field, which is expected to bring total field oil production to 30,000 b/d. That equals about 30% of Agip's production in Italy. The country produced an average 89,200 b/d of b/d in 1992.

Testing will continue to garner as much information as possible about the Aquila reservoir. Agip notes the carbonate reservoir has excellent porosity and permeability, and some of its engineers suspect the field's potential reserves could be double current estimates.

Development costs are pegged at $106 million, with a 4 year payout projected.

The company estimates Aquila production will garner it revenues of $133 million/year during 10 years.

The company, scheduled to be fully privatized soon by parent state owned Ente Nazionale ldrocarburi (OGJ, Aug. 2, p. 36), plans to drill more exploratory wells to test other structures in the area. Agip has run extensive seismic surveys in the Adriatic, including an 11,000 sq km 3D program (OGJ, Aug. 3, 1992, p. 16).

BACKGROUND

Agip explored Zone F in 1981-82 during an Adriatic campaign that saw a number of wildcats drilled in water depths approaching 1,000 m. Technology needed to develop the deepwater strike was unavailable at the time.

Agip acquired the Aquila block 18 months ago, after the Italian government settled a boundary dispute with Albania covering the two nations' territorial waters in the narrow Otranto channel.

The Aquila success bolsters prospects for blocks in adjoining Albanian waters, although Agip Pres. Guglielmo Moscato refuted speculation that the Aquila structure might overlap into Albanian territory.

Agip is partners with Montedison SpA and Chevron Corp. in nearby Albanian acreage, where water depths are even greater.

TECHNOLOGY

Agip has implemented several technological advances in Aquila drilling/production beyond the depth records and horizontal drilling.

It developed a proprietary advanced drilling information system that gathers and manages drilling and well and mud logging data in real time and relays the data to Agip headquarters from the rig.

Agip also installed a subsea wellhead acoustic control system that incorporates a 3D downhole simulation of drill bit trajectory. The modular deepwater wellhead was installed by remote operated vehicles on the seabed. The wellhead is linked to a subsea multiphase flow pipeline connected to a high pressure flexible riser that is corrosion and turbulence resistant.

Production flows to a 30,000 dwt tanker for processing and storage. Plans call for installation of a larger tanker for processing and storage once the other two subsea wellheads are installed. Shuttle tankers will transport the crude to Italian refineries.