- Dr. Gao Ruimin is the president of the Research Institute of Shaanxi Yanchang Petroleum Group and will present on their CO2-EOR project in northwest China. - The project aims to use CO2 from nearby coal gasification and chemical plants for enhanced oil recovery (EOR) in oilfields like Jingbian and Wuqi, which have suitable geological conditions for CO2 storage. - Laboratory experiments were conducted to determine optimal conditions for CO2 injection and a pilot CO2 injection project is underway in the Qiaojiawa 203 well block in Jingbian to test continuous and water-alternating-gas injection methods.

1. Yanchang Petroleum CCS Project: Enhanced oil
recovery using CO2 in North West China
Webinar – Thursday 25 February 2016, 1800 AEDT

2. Dr Gao Ruimin
Ruimin Gao, professor-level Engineer with Ph.D. degree, serves as President for
Research Institute of Shaanxi Yanchang Petroleum (Group) Co., LTD., Deputy
Director of Technology and Equipment Committee of Chinese Petroleum Society,
Secretary-General and Executive Director of Professional Committee of Oil and Gas
Development in Shaanxi Petroleum Society. He is also an adjunct professor of
University of Regina (Canada), Hunan University (China) and Northwest University
(China).
Ruimin Gao obtained Ph.D. Degree from Institute of Porous Flow and Fluid
Mechanics, Chinese Academy of Science. He has endeavored in oil & gas
exploration and development and in CCUS research for 30 years. Dr. Gao has made
a number of major achievements in exploration and development on oil and gas
fields with ultra-low permeability, especially in the technologies of oil and gas drilling
and enhancing oil recovery. He has made the outstanding contributions to improve
production in Yanchang Oilfield through advancing technologies including CCUS.
President for Research Institute - Shaanxi Yanchang Petroleum Group

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4. Enhanced Oil Recovery Using CO2 In
North West China
Research Institute of Shaanxi Yanchang Petroleum (Group) Co., Ltd.
February, 2016
Speaker: DR. Gao Rui-min

5. OUTLINE
 Background of the project
 Overview of Ordos Basin geology
 Progress of CO2-EOR project
 Project planning
 Commercial drivers

6. 1. Background of the project
CCUS is one of the important technology to tackle climate change, Enhanced
oil recovery by injecting CO2 is one of effective way for CCUS. As a priority
technique, EOR by CO2 is the low-cost CCUS technology, and need to be
developed urgently. In future, people who master the CCUS technology and
experience will obtain the priority for fossil energy development.
Yanchang CCUS project was selected as U.S.-China climate change
cooperation demonstration project by two sides on Chairman Xi’s visit to the United
States in September 2015, and was written in“U.S.-China Joint Announcement on
Climate Change”. The project characteristic is reducing a mass of CO2 emission
with coal-gas combination and carbon-hydro balance, other remaining CO2 was
captured and transported to nearby oilfield for EOR and storage, so it is a
economic and efficient mode for CO2 reduction.

7. 1. Background of the project
(1) Global action on climate change
 In 1992, the “UN framework convention on climate change” was established.
 In 2007, “Bali Roadmap "was made which ruled the regulations on climate change
negotiations.
 In 2015, the “Paris agreement “ won the world agreement on climate change.
On December 12, Paris conference on climate change passed a new global climate agreement
Therefore, every country need to make more efforts on climate change, Yanchang
CO2-EOR project is a concrete action on tackling climate change.

8. 1. Background of the project
(2) Chinese action on climate change
 In 2007, Chinese government issued first documents to tackle climate change,
published "China action targets to control greenhouse gas emissions", and
carried out the work of low-carbon provinces and low-carbon pilot cities ,etc.
 In 2010, Shaanxi Province has issued a number of files to tackle climate change
and CO2 emission reduction.
 In 2015, China put forward that CO2 emissions will come to peak by 2030, CO2
emissions gradually reduce per unit of GDP, and non-fossil energy account for
20% of primary energy consumption. Chairman Xi suggested to establish a fair
and effective mechanism to tackle climate change on Paris climate conference.

9. 1. Background of the project
Coal, oil and gas resources are rich in Western China, and CO2 emissions
keep high growth with the development of energy chemical industry. Ordos basin
which Yanchang oilfield located is one of the most favorable and safest areas to
implement CCUS project. According to a preliminary estimate, abandoned reservoir
in Ordos basin can store CO2 several billions tons, the deep Ordovician limestone
and saline layer can store tens of billions tons of CO2.
In Yanchang oilfield, there is about billions of tones reserves that is suitable for
CO2 flooding and storage. With the favorable condition of that CO2 sources and
storage area located in the same region, the implementation of Yanchang CCUS
made a great significance to low-carbon energy chemical industry development .
(3) Yanchang CO2-EOR project is an exploration for low-
carbon cycle development in energy chemical industry

10. 1. Background of the project
Yulian Project
Jingbian Industry Zone
Fuxian Industry Zone
Yanlian Project
Yushen Industry Zone
Yuheng Industry ZoneYonglian Project
Xinghua Industry Zone
 Chinese government had restricted new
coal chemical industry project by CO2 zero
emission, so CO2-EOR can solve the
problem of CO2 emissions, and establish
new circular economy mode in coal
chemical industry and petroleum industry.
 CO2 flooding is one of the most effective
ways for Yanchang low permeability
reservoirs development and recovery
improvement.
 CO2 flooding can realize water saving
development for semiarid region in
northern Shaanxi.
(4) CO2-EOR made a sustainable development for Yanchang
coal chemical industry

11. 1. Background of the project
Under the background of tackling climate change globally, Yanchang
Petroleum Group insists the development concepts of “Innovation and
Green”. Comprehensive utilization of coal-oil-gas in energy industry chain ,
low-cost CO2 capture with Rectisol technique and storage CO2 in nearby
oilfield, that create an integrated mode for CO2 emission with combining
coal chemical industry to oil-gas field development, have a important
demonstration effect to the similar project in the world.

12. OUTLINE
 Background of the project
 Overview of Ordos Basin geology
 Progress of CO2-EOR project
 Project planning
 Commercial drivers

13. (1) Energy Resources Status
 Yanchang Petroleum located in Ordos basin, which is rich in energy resources
such as oil, gas, coal and salt, and will be the most important energy chemical
industry base in China.
2、Overview of Ordos Basin geology

14.  Coal resources in Ordos basin
The total coal resources of ordos basin is about 3.98 Trillion tons,
which is more than one third coal resources of China.
 Oil and Gas in Ordos basin
Oil resources ranked the forth in China, and the nature gas resources
ranked the first in China.
Oil: 12.8x109tons; Nature Gas:10.95x1012m3
.
(1) Energy Resources Status
2、Overview of Ordos Basin geology

15. (2) Basin Structural Features
Main Structural Features of Ordos Basin as
follow:
① (North) Yimeng Uplift
② (South) Weibei Uplift
③ (West) Western Tianhuan Depression
④ (East) Jingxi flexure
⑤ (Central) Shaanbei slope, West-dip
Monocline Structure.
The main oil reservoir was located in
Shaanbei slope, Ordos Basin.
The whole Ordos Basin
2、Overview of Ordos Basin geology
Shaanbei slope

16. (3) Good Storage Conditions
 There are lots of oil-gas reservoirs to store CO2, according to a preliminary
estimate, CO2 storage volume in oil reservoirs can reach 0.5-1 billion tons, while
in saline layer can be up to billions of tons.
 With stable layer, simple structure and undeveloped fault, CO2 storage in
Shaanbei slope is safe, which is the most favorable area to store CO2 on land in
China.
 Pressure and temperature of the formation is helpful to keep CO2 supercritical
state, achieving permanent storage.
Shanbei slope
Dingbian Jingbian Ansai Suide ShanxiWestern Ordos
altitude
altitude
Oil Gas
Cambrian Cambrian
Ordovician
Ordovician Carboniferous
Dyas
Triassic Jurassic Cretaceous Tertiary
2、Overview of Ordos Basin geology

17. (4) Stratigraphic sequence of oil formation
Ordos Basin comprises two sequences of strata from the Mesozoic and Cenozoic.
The Upper Triassic Yanchang Formation is the main reservoir in the basin and is
composed of detrital river-delta-lake sediments. It is divided into 10 sub-formations
from bottom up, Chang1 to Chang10.
Age Formation Oil Members Layers
Triassic
Upper
Yanchang
Chang1
Chang2
Chang3
Chang4+5
(caprock)
Chang6
(reservoir)
Chang61
Chang62 Chang62
1-3
Chang63
Chang7
Middle
Chang8
Chang9
Chang10
Generalized stratigraphic column of the Triassic in the Ordos Basin
Besides oil reservoir, lots of
saltwater layer which is
under the oil layer can also
be sequestration of CO2,
according to preliminary
estimate, saltwater layer can
store CO2 up to billions of
tons.
2、Overview of Ordos Basin geology

18. OUTLINE
 Background of the project
 Overview of Ordos Basin geology
 Progress of CO2-EOR project
 Project planning
 Commercial drivers

19. (1) CO2 –EOR Project Location
 After a comprehensive comparison and analysis, Triassic Chang6
reservoir of Jingbian and Chang4+5 reservoir of Wuqi were found to
have suitable geological conditions for CO2 flooding and storage.
3. Progress of CO2-EOR project
 The two CO2-EOR sites of
Jingbian and Wuqi are not
far from the two CO2
capture projects site that
was located in Yulin City.
CO2 CAPTURE SITE AND CO2-EOR SITE
Storage site
in WuQi
Storage site
in JingBian

20. (2) Laboratory Experiments
We study the interaction between formations fluid (oil,
gas, water) under different reservoir conditions by PVT
equipment, and determine the minimum miscible pressure
(MMP) and minimum miscible composition (MMC) in
conditions similar to the reservoir.
The test data is helpful to gain the optimal enhanced
displacement efficiency in different pressures and fluid
compositions.
3. Progress of CO2-EOR project

21. (2) Laboratory Experiments
① Oil-CO2 PVT test
0 10 20 30 40 50 60 70
6
9
12
15
18
21
24
27
Bubblepointpressure(MPa)
CO2 injection concentration (mol%)
Bubble point pressure under different
CO2 –oil mole ratio
3 6 9 12 15 18 21 24 27 30 33
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
Density(g/mL)
Pressure (MPa)
0
23.18%
37.24%
41.18%
56.96%
64.65%
67.13%
Oil density change with pressure under
different CO2 –oil mole ratio
3 6 9 12 15 18 21 24 27 30 33
0.96
0.99
1.02
1.05
1.08
1.11
1.14
1.17
Relativevolume(Vi
/Vb
)
Pressure (MPa)
0%
23.18%
37.24%
41.18%
56.96%
64.65%
67.13%
3 6 9 12 15 18 21 24 27 30 33
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
Volumecoefficient
Pressure (MPa)
0%
23.18%
37.24%
41.18%
56.96%
64.65%
67.13%
3. Progress of CO2-EOR project
Effect of CO2 ratio on volume
factor of crude oil
Effect of CO2 ratio on relative
volume of crude oil

22. (2) Laboratory Experiments
② CO2 solubility in crude oil
According to the laboratory results, with an increase of the
CO2 ratio and an increase of pressure, CO2 solubility of dead
oil will rise rapidly. At pressures of 25.25 MPa, it may contain
266.69 cubic meters of CO2 in 1 ton of dead oil.
Relationship between the CO2 solubility and pressure
6 9 12 15 18 21 24
0
10
20
30
40
50
60
70
CO2
(mol%)
Pressure (MPa)
3. Progress of CO2-EOR project

23. (2) Laboratory Experiments
③ Crude oil viscosity after CO2 injection
Under the same CO2 ratio the crude oil viscosity changes little with different
pressure. This indicates that the gas and liquid phases are near to miscible state by
the increased CO2 ratio.
Effect of CO2 ratio on viscosity of crude oil
0 3 6 9 12 15 18 21 24 27 30
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Viscosity(cP)
Pressure (MPa)
0
23.18%
37.24%
41.18%
56.96%
64.65%
67.13%
3. Progress of CO2-EOR project

24. (2) Laboratory Experiments
④ The minimum miscible pressure test
CO2/reservoir fluid interfacial tension
change along pressure
I. Interfacial tension method
Interfacialtension
Pressure/ MPa
Oil droplets before and after miscible
(a) Before miscible
(b) After miscible
It can be identified that from
interfacial tension data the first contact
miscible pressure is 24.8 Mpa.
3. Progress of CO2-EOR project

25. (2) Laboratory Experiments
④ The minimum miscible pressure test
Oil recovery change along with pressure when CO2 break through
II. Slim tube experiment method
the figure show that The minimum miscible pressure is about 22.15MPa.
3. Progress of CO2-EOR project

26. (3) JingBian CO2-EOR pilot
①Basic injection situation of Jingbian Project
Yanchang Petroleum plans to build CO2 injection station at the Qiaojiawa 203 well
block , it included 20 injection wells and 88 production wells of which 68 first effective
oil production wells. Water injection wells around the CO2 injection test well groups
will be closed, forming relatively isolated injection and production areas around the
well groups.
Well Patten of Qiaojiawa 203 well block, JingBian
3. Progress of CO2-EOR project

27. ② Reservoir geological model
Structure
The main task of geological modeling is to establish structural model and
property model for CO2 test in 203 well block, and the purpose is to provide 3D data
representing various reservoir parameters for oil field.
Lithofacies Porosity
Permeability NTG
3. Progress of CO2-EOR project
(3) JingBian CO2-EOR pilot

28. ③ Performance prediction of CO2 injection
Simulation research shows that the continuous water injection for 5 years then
returning to gas injection can effectively control oil /gas ratio, getting a better
displacement effect.
I. Continuous gas injection
In the test area, simulation modeling estimated that
reserve recovery is 19.27% at the end of 2015 using
continuous CO2 injection method, 13.04% larger than water
flooding, and average oil production rate is 1.17%.
Simulation modelling of continuous gas injection
3. Progress of CO2-EOR project
(3) JingBian CO2-EOR pilot

29. II. 10 years of WAG solution after continuous gas
injection for five years
Predicting the production development using the WAG
method for a 10 year period following five years of
continuous gas injection found that the recovery will be
18.44% after 15 years, which is 12.98% more than natural
decline, and the average oil production rate is 1.11%. The
ultimate predicted oil recovery is 46.2%, which is 22.12%
more than water flooding.
Simulation modelling of 10 years WAG solution after continuous gas injection for five years
3. Technical details of CO2-EOR operation
(3) JingBian CO2-EOR pilot
③ Performance prediction of CO2 injection

30. III. Comparison of different development styles
Evaluation period 15 years
Limit
mining
Flooding style
Recovery
CO2 oil
exchange ratio
CO2 storage
ratio
Recovery
（%） （ton oil/ton CO2） （%） （%）
WAG/Continuous
gas injection
18.44/19.27 0.58/0.40 75/80 46.2/37.91
Water flooding 6.23 -- -- 24.1
Increasement 12.21/13.04 -- -- 22.1/13.81
3. Progress of CO2-EOR project
(3) JingBian CO2-EOR pilot
③ Performance prediction of CO2 injection

31. ④CO2 Injection Test
Since 2012, the pilot field test at the Jingbian has injected
55,000 tons with five injection wells and the average per well
oil production has increased by 50%.
According to production data from the wells, a decrease in production of at the wells has been controlled, and a
gradual rising trend is starting.
3. Progress of CO2-EOR project
(3) JingBian CO2-EOR pilot

32. 3. Progress of CO2-EOR project
(3) JingBian CO2-EOR pilot

33. (4) Wuqi CO2-EOR pilot
Basic injection situation of Wuqi Project: Yanchang Petroleum plans to build a big CO2
injection stations at the Wuqi pilot site including 37 well groups for injection. The well
group will consist of 37 injection wells and 110 oil wells. Water injection wells around
the CO2 injection test well groups will be closed, forming relatively isolated injection
and production areas around the well groups.
Well Patten of Wuqi
3. Progress of CO2-EOR project

34. Test CO2 Injection: Since the end of 2014, the pilot field test at the Wuqi has
injected 7,000 tons with four injection wells and the average per well oil production
has increased by 15%.
According to production data from the wells, a decrease in production of at the wells has been controlled, and a
gradual rising trend is starting.
3. Progress of CO2-EOR project
(4) Wuqi CO2-EOR pilot

35. ① The oil wells of Jingbian Oilfield were drilled in 2012, and were completed at
the bottom of Chang6 formation.
② Cementing work used G class cement. Average density of high density
cement slurry is 1.85 g/cm3.
③ After cementing work, we used acoustic variable density logging method to
evaluate the cementing quality, and the cementing quality qualified.
④ Yanchang Petroleum undertook laboratory experiments, including corrosion of
the typical material, as well as the effect of screen coating, corrosion inhibitor
and scale inhibitor under conditions suitable for corrosion in a CO2 flooding
environment. This provides support for the corrosion control management and
wellbore integrity.
(5) Wellbore integrity study
3. Progress of CO2-EOR project

36. OUTLINE
 Background of the project
 Overview of Ordos Basin geology
 Progress of CO2-EOR project
 Project planning
 Commercial drivers

37. 4. Project planning
(1) Project Goals
① September 2017, completed 360,000 t/a CCUS
demonstration project.
② 2020, completed 1,000,000 t/a CCUS demonstration
project.
③ 2030, completed 4,000,000 t/a CCUS demonstration
project.

38. 4. Project planning
(2) Expected outcomes
① Build the technical standard system for whole CO2 capture, EOR, storage
and oil well fracturing.
② By 2020, it will storage CO2 about 1 million tons, increase oil production
about 200,000 tons, and the CO2 emission from coal-chemical industry of
Yanchang is nearly zero.
③ Yanchang will build a professional team for CO2 capture, transportation,
storage, monitor.
④ And, Yangchang will build a succeed CCUS commercial mode for low-
carbon development at the other area of China.

39. OUTLINE
 Background of the project
 Overview of Ordos Basin geology
 Progress of CO2-EOR project
 Project planning
 Commercial drivers

40. 5. Commercial Drivers
(1) CO2 capture project is low cost.
(2) The capture projects are located at the same area with
oil-fields for CO2 storage.
(3) It is the best choice for CO2-EOR instead of water-
flooding at the semi-arid area.
(4) CO2 capture and storage resolved the emission problems
of coal-chemical industry.
(5) This is the base for China to build the carbon trading
market.

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attention!

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