Shell/Esso to use PES 'smart' well completion system

Shell U.K. Exploration & Production has signed a multimillion-dollar agreement with Petroleum Engineering Services Ltd. (PES), Aberdeen, for use of a "smart" well completion system.

The Surface-Controlled Reservoir Analysis & Management System (Scrams) is a microprocessor-based tool that provides continuous downhole data and enables computer control of downhole operations.

Scrams was developed and patented by PES, which claims the system is the first operating intelligent well completion, or "smart" well solution.

The operator, a joint venture of Shell U.K. Ltd. and Esso Exploration & Production U.K. Ltd., plans to use Scrams on as many as 15 U.K. North Sea wells, though it has not disclosed field names.

A PES official said Scrams monitors rates of single phase flow, density, pressure, and temperature of the flowing liquid, water cut, and sand production.

The official said PES is developing a version of Scrams able to measure multiphase flow rates, seismic fluid composition, and distributed temperatures.

Larry Kinch, chairman of PES, said Scrams saves well costs by reducing or eliminating the need for workovers by accelerating production through more efficient flow management and by using natural energy of the reservoir more effectively.

"The savings are unique to each reservoir," said Kinch, "but independent modeling by three oil companies has shown that for a significant reservoir up to 10% additional reserves could be recovered, with gains quantified in hundreds of millions of pounds."

PES claims Scrams can also help make previously uneconomic or marginal finds viable for development. The company estimates net production volume can be raised by 20% in marginal fields with Scrams.