Geosplit has successfully performed first production logging operations at gas wells in China

Geosplit (a portfolio company of Rusnano Sistema Sicar fund) continues its active work in the Asian market. In 2020, using new marker diagnostics development, the company has successfully performed production logging of horizontal gas wells without well intervention at Linfen field in China (Shaanxi Province).

Geosplit team has been implementing projects in Chinese oil fields for several years due to high level of confidence in Geosplit technology among leading Chinese oil and gas producing companies and oilfield services companies. After obtaining informative well logging data, Asian partners set the task to elaborate a technology for gas well logging considering active development of shale gas segment and field digitalization.

Geosplit has reached a new level with the implementation of this project. The technology development cycle from concept to implementation at the client’s fields took less than a year. The company faced a number of serious technological challenges:

• Creating a new polymer material able to continuously release markers into the gas stream when interacting with gas. Moreover, this material must be resistant to aggressive environmental influences and high temperatures;
• Developing a reliable sampling system that meets strict gas industry safety standards and allows multiple sampling without the necessity to transport gas tanks.

Pilot gas well logging project using Geosplit gas markers was launched at Linfen gas field in September 2019, when the carrier material of marker-reporters (c) Geosplit was pumped in the first wells during stimulation works. In December, the first sampling from gas wells was made, and in early January a positive response from the client was obtained according to test results. Using Geosplit technology, the client has access to a constant stream of data on well intervals productivity without the necessity of well shut-in or changing the operation mode. By combining test results obtained by Geosplit laboratory with geological data the clients receive a fundamentally new approach allowing to plan an increase in field productivity, localize residual reserves and implement production digitalization projects.

After first works on gas wells, high convergence of marker diagnostics data with reservoir gas saturation test results obtained during drilling was proved. The next step is dynamic monitoring of intervals operation, evaluation of hydraulic fracturing and well injection system efficiency.

In addition to the projects in China at a number of major oil and gas fields, our plans for the upcoming year include offshore projects at gas fields in the Middle East, which will require adapting gas sampling equipment to marine safety standards.

Anna Belova, International Business Development Manager, Geosplit: «The Linfen field project once again confirmed the professionalism and integrity of Geosplit team. Before China, Geosplit had no experience in applying technology in gas wells. Pilot projects always involve certain risks, including reputational. Applying pilot works not at the fields of reliable partners, whose trust is associated with the success of previous projects, is an even more difficult task. Feeling that I represent a team of highly qualified specialists gave me confidence that the promises made to the Chinese partner will be fulfilled efficiently and on time.»

Sergey Vakhterov, Senior Managing Director for Investments (Investment Division K), Managing Company RUSNANO: «It is worth noting that entry of a Russian industrial innovation into the Chinese market is a rarity, because the country is largely self-sufficient and creates its own technologies for local business development without accepting foreign companies. However, Geosplit has been implementing large-scale projects in this country for several years running, showing good results. We expect a high demand for gas field marker diagnostics services in China. Indeed, according to experts, shale gas production rates will grow rapidly, and China sees itself a leader in this area, which is quite realistic using the innovative development of Geosplit. The country’s plans are to not only catch up, but also to go ahead of the USA - the current industry leader, which, according to survey data, will increase production by 20% in the next 5 years.»