Drilling of High Temperature Wells Cost Analysis Kristinn Ingason - PowerPoint PPT Presentation

Drilling of High Temperature Wells Cost Analysis Kristinn Ingason and Matthías Matthíasson

Geothermal Power Plants in Iceland Reykjanes Hellisheiði Nesjavellir Krafla Svartsengi July 2, 2007: Engine

Rough Break Down of Geothermal Power Plant Total Cost 40 PERCENTAGE OF TOTAL COST 30 20 10 0 DRILLING STEAM SUPPLY EL-MECH BUILDINGS July 2, 2007: Engine

Drilling in Iceland  Drilling contracts are mainly based on footage rate  Contract sizes: 1 – 30 wells  One dominant drilling contactor: Jarðboranir July 2, 2007: Engine

High Temperature Wells July 2, 2007: Engine

Brake Down of Total Drilling Cost  Preparation including drilling pad, water supply, surface casing  Drilling including material  Completion after drilling including wellhead, silencer, drainage system July 2, 2007: Engine

Brake Down of Total Drilling Cost PREPARATION DRILLING COMPLETION 73% 9% 18% July 2, 2007: Engine

Estimated Total Drilling Cost  Production part: ø8 1/2”  Depth of 2000 m  Vertical well  Including design, supervision and contingency Estimated Cost: ~225 MISK or 2,6 MEUR July 2, 2007: Engine

Different Type of Wells  Production part  ø8 1/2”  ø12 1/4”  Directional drilling  Inclination 30 – 40°  700 - 900 m horizontal displacement of 2000 m well July 2, 2007: Engine

Total Cost of Drilling different Types of Wells DRILLING 160 OTHER WORK 150 MATERIAL PREPARATION 140 COMPLETION 130 120 110 100 90 80 70 60 50 40 30 20 10 0 VERTICAL DIRECTIONAL VERTICAL DIRECTIONAL ø8 1/2" WELL ø12 1/4" WELL July 2, 2007: Engine

Brake Down of Drilling Cost  Drilling  Other work such as running a casing, cementing  Material such as casing, cement July 2, 2007: Engine

Brake Down of Drilling Cost for Different Well Type 100 90 80 70 60 50 40 DRILLING OTHER WORK 30 MATERIAL 20 10 0 VERTICAL DIRECTIONAL VERTICAL DIRECTIONAL ø8 1/2" WELL ø12 1/4" WELL July 2, 2007: Engine

Drilling Phases Anchorage casing I. Production casing II. Production part III. July 2, 2007: Engine

Brake Down of Cost for Drilling Phases ø8 1/2" WELL 100 90 DRILLING 80 OTHER WORK 70 MATERIAL 60 50 40 30 20 10 0 I II III TOTAL PHASES July 2, 2007: Engine

Fixed Cost and Variable Cost in Drilling  Fixed cost  assembly of drill string  installation of safety valves  Variable cost  Drilling  Running and cementing casings, material included July 2, 2007: Engine

Drilling Cost as a Function of Well Depth 0 200 400 600 800 DEPTH [m] 1000 1200 1400 1600 VERTICAL ø8 1/2" WELL 1800 2000 2200 0 20 40 60 80 100 120 140 160 180 PERCENTAGE OF VERTICAL ø8 1/2" WELL July 2, 2007: Engine

Drilling Cost as a Function of Well Depth 0 200 400 600 800 DEPTH [m] 1000 1200 1400 1600 VERTICAL ø8 1/2" WELL 1800 DIRECTIONAL ø8 1/2" WELL 2000 2200 0 20 40 60 80 100 120 140 160 180 PERCENTAGE OF VERTICAL ø8 1/2" WELL July 2, 2007: Engine

Drilling Cost as a Function of Well Depth 0 200 VERTICAL ø12 1/4" WELL 400 600 800 DEPTH [m] 1000 1200 1400 1600 VERTICAL ø8 1/2" WELL 1800 DIRECTIONAL ø8 1/2" WELL 2000 2200 0 20 40 60 80 100 120 140 160 180 PERCENTAGE OF VERTICAL ø8 1/2" WELL July 2, 2007: Engine

Drilling Cost as a Function of Well Depth 0 200 VERTICAL ø12 1/4" WELL 400 DIRECTIONAL ø12 1/4" WELL 600 800 DEPTH [m] 1000 1200 1400 1600 VERTICAL ø8 1/2" WELL 1800 DIRECTIONAL ø8 1/2" WELL 2000 2200 0 20 40 60 80 100 120 140 160 180 PERCENTAGE OF VERTICAL ø8 1/2" WELL July 2, 2007: Engine

Drilling Cost as a Function of Well Depth 0 500 DEPTH [m] 1000 VERTICAL ø8 1/2" WELL 1500 2000 0 10 20 30 40 50 60 70 80 90 100 PERCENTAGE OF DRILLING COST July 2, 2007: Engine

Drilling Cost as a Function of Well Depth 0 500 DEPTH [m] 1000 VERTICAL ø8 1/2" WELL DIRECTIONAL ø8 1/2" WELL 1500 2000 0 10 20 30 40 50 60 70 80 90 100 PERCENTAGE OF DRILLING COST July 2, 2007: Engine

Drilling Cost as a Function of Well Depth 0 500 DEPTH [m] 1000 VERTICAL ø8 1/2" WELL DIRECTIONAL ø8 1/2" WELL 1500 VERTICAL ø12 1/4" WELL 2000 0 10 20 30 40 50 60 70 80 90 100 PERCENTAGE OF DRILLING COST July 2, 2007: Engine

Drilling Cost as a Function of Well Depth 0 500 DEPTH [m] 1000 VERTICAL ø8 1/2" WELL DIRECTIONAL ø8 1/2" WELL 1500 VERTICAL ø12 1/4" WELL DIRECTIONAL ø12 1/4" WELL 2000 0 10 20 30 40 50 60 70 80 90 100 PERCENTAGE OF DRILLING COST July 2, 2007: Engine

Development of Drilling Cost 1,4 1,3 1,2 1,1 1,0 0,9 0,8 PRICE INDEX CORRECTION 0,7 0,6 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 July 2, 2007: Engine

VGK-Hönnun hf. Grensásvegur 1, 108 Reykjavik, Tel: (+354) 422 3000 Web: www.vgkhonnun.is / E-mail: vgkhonnun@vgkhonnun.is July 2, 2007: Engine