Versadril OBM to drill first shale oil horizontal well in Kazakhstan 

Background

LLP "SOUTH-OIL" holds a license for the development of shale formations, marking a significant milestone as one of the first such projects in Kazakhstan. In 2023, multiple meetings and technical presentations were conducted with "SOUTH-OIL" resulting in the selection of Oil-Based Mud (OBM) as the most suitable technology based on global practices from Kaz M-I. Since implementing Versadril OBM to drill shale oil horizontal well was first time ever in Kazakhstan, it was decided to run this as R&D project.

Following mutual agreements, a contract was signed, and several follow-up meetings were held, including a field visit by our technical team. During this visit, an audit of the drilling rig was conducted to enhance and prepare it for drilling with OBM. Based on Kaz M-I recommendations, LLP "SOUTH-OIL" improved efficiency of the rig solids control equipment with installing three Mongoose shale shakers and implemented a range of preparatory measures to modify rig equipment. 

The collaboration between LLP "SOUTH-OIL" and Kaz M-I / JSC "KING"  consortium teams was of the highest standard, ensuring optimal readiness for the drilling process.

Historical Achievement

For the first time in its history, LLP "SOUTH-OIL" specialists identified the hydrocarbon potential of shale formations within the Karagansai suite. Significant reserves of shale oil were discovered at the Akshabulak field, marking a pivotal advancement in the sector. The company became a pioneer in studying source rocks for shale oil extraction in Kazakhstan.

R&D Project 

Kaz M-I, in collaboration with JSC "KING," conducted a R&D project, showcasing high professionalism and strict adherence to safety standards:

• Zero Incident Rate: No incidents were recorded during the mud handling and drilling processes.
• Preparation and Transportation of Oil-Based Mud (OBM):
  • 400 m³ of OBM were prepared without spills at the Bautino LMP (Liquid Mud Plant)
  • 400 m³ of OBM was successfully transportated from Bautino LMP to the field without spills or logistical issues. The distance between the Bautino LMP and field is almost 2500km
  • Almost 500 m3 of OBM was mobilized, built and used at the rigsite with zero spills

• No delays in the supply and preparation of OBM and other Kaz M-I products delivery during the project.

• Drilling Speed and Efficiency:
  • The well was drilled to 4183m MD (1100m lateral section) without borehole integrity issues (average ROP in the lateral section was 8.9 m/hour vs 4.1 m/hour planned).
  • The well was drilled in 24 days without incidents or fluid-related problems.
  • The drilling process was efficient, with key challenges successfully mitigated through teamwork and technical precision.
• Optimization of the Drilling Fluid Handling:
  • Excellent performance of Kaz M-I Mongoose shale shaker during drilling.
  • During fluid displacement, additional processing and reuse of the mud in the system were carried out, enhancing efficiency and reducing costs.
• Additional Statistical Achievements:
  • 100% compliance with technological requirements at every stage of work.
  • Over 100 quality mud checks were conducted to ensure standard compliance.
  • Waste minimization achieved by recycling and reusing over 30% of the mud lost over the shale shakers.

Conclusion

The R&D project confirmed the high efficiency of the collaboration between Kaz-MI, JSC "KING," and LLP "SOUTH-OIL," and demonstrating the potential for implementing innovative approaches in field development. The service provided for drilling fluids met the highest  standards, with the client expressing satisfaction with the overall performance.

Preparations are underway for drilling the second well, marking the continuation of this successful partnership. These achievements lay a solid foundation for the further advancement of the shale oil industry in Kazakhstan. Today, Kaz M-I LLP / JSC "KING" consortium and LLP "SOUTH-OIL,"  are planning work on the second well, Karagansai-2.