Foreign Firms Join Iran Oil Geomechanics

Maximum efficient recovery from an oil field and enhanced recovery require a proper and comprehensive knowledge of the reservoir in question. Geomechanics could be of great help in this regard.

[Geomechanics is the geologic specialty that deals with understanding how rocks, stresses, pressures, and temperatures interact. This understanding is used to solve oilfield problems, such as optimizing hydraulic fracturing treatments of shale reservoirs. Geomechanics specialists typically work with experts in geophysics, geology, petrophysics, reservoir engineering, drilling engineering, and rock physics to solve geomechanical problems and address production challenges in shale reservoirs.]

Due to lack of geomechanical studies in Iran, there is no comprehensive databank about big oil fields in the country. Therefore, Iran's petroleum industry is trying to boost its geomechanical knowledge. Over recent years, some steps have been taken. Holding a conference on Iran's petroleum geomechanics was one of these steps.

Iran held its second conference on petroleum geomechanics on January 24 under the title of "Reducing Exploration and Production Risks". The conference was attended by Saleh Hendi, director of exploration at National Iranian Oil Company (NIOC), Habibollah Bitaraf, deputy minister of petroleum for research and technology, Ebrahim Alavi Taleqani, deputy head of NIOC for Research and Technology and a group of foreign guests.

In an opening speech, Hendi said long way was lying ahead of Iran's petroleum industry in applying geomechanics.

"Given the positive and abundant effects of petroleum geomechanics, this important issue must top the agenda as quickly as possible. In this regard, the scientific and academic communities have fulfilled their roles in this regard and it is now NIOC's turn and private companies to seriously focus on this issue," he said.

Europeans Ready for Cooperation

Dr Jorg Herwanger, a senior member of the European Association of Geoscientists and Engineers (EAGE), was among the guests. He represented MP Geomechanics where he is a director.

He said it was the first time he visited Iran. Noting that he specializes in 3D and 4D petroleum geomechanics, Herwanger said he has already had negotiations with NIOC for future cooperation. He added that he was also in talks with several other companies for cooperation.

Regarding the possibility of renewed activity in Iran in the wake of the removal of sanctions, he said: “At present, different countries particularly Europeans are happy with Iran’s sanctions relief and they are ready for cooperation with Iran.”

Herwanger said it was difficult to have access to information about Iran due to international sanctions.

“I started my work with Schlumberger and it was very difficult for me to obtain data about Iran. When I was with the UN we were told specifically that we could not work in Iran due to the sanctions. Therefore, I do not have much information now, but I am studying to update my data,” he said.

Willingness to Work with Iran Firms

Tony Addis of "Rockfield" also participated in the conference. This British company has long been involved in oil industry service and has been providing geomechanical software for oil companies.

“Generally speaking, IOCs with powerful geomechanical sections are our customers. Our company also provides consultation. Production of documents and whatever dependent on oil production, development of oil field and production of oil from it are also among our activities,” he said.

Addis believes that Iran is a major market for his company’s activities. “Due to the complexity and diversity of different oil fields, Iran is an ideal place for geomechanical activities. Of course other technical issues make our software and technologies profitable in this country.”

“In my view, there is no problem with cooperating with Iran. A reason behind my visit to Iran was to examine requirements for cooperation with Iran’s domestic companies. As a small-sized foreign company, we are willing to cooperate with domestic companies like Dana Energy,” he said.

Addis said his company is active all across the world. It has already cooperated with BP, Shell, Chevron and Total. It has also operated projects for Saudi Aramco in the Red Sea and in northeastern Iraq. It is now looking for a way to expand its business in Iran.

Addis has been active in the Middle East for six years. He is well familiar with geomechanical challenges in this region.

“In this region, there is too much hydrocarbon. One challenge pertains to carbonated rocks. One problem is that in the past decades oil companies underestimated this issue and they ignored its complex aspects. Of course, one reason was the lack of necessary tools to analyze data,” he said.

Addis said technology has now helped conduct a precise geomechanical analysis of natural fractures in carbonated rocks.

“We can now overcome these challenges more easily and realize what would happen after reservoirs are depleted,” he said.

Addis also said that another challenge facing this region is a trend which has started from North America.

“Many are looking to extract gas. Countries like Oman are after importing technologies from the US in order to extract gas. But in fact the geology of this region is much more complicated than that of North America. Therefore, in order to apply the North American technology we have to adapt it to regional needs,” he said.