Green transition

The geological company NADRA GROUP traditionally provided services to E&P companies for exploring new deposits and producing oil and gas. However, with increased awareness of the environmental damage caused by fossil fuels and their impact on the climate crisis, the staff of the company initiated a withdrawal from the oil and gas business. Nevertheless, it was agreed to use over 30-year experience and deep competencies of NADRA GROUP for active participation in programs for transitioning from oil and gas to clean energy. In addition to phasing out greenfield exploration projects, NADRA GROUP has focused on new areas of activity, such as utilizing advanced EoR technologies to produce from depleted and active fields, using oil and gas wells to obtain hydrothermal energy, participating in decarbonization processes by injecting СО₂ into depleted fields, mitigating the environmental impact of oil and gas activities, and more.

As a result of the drop in oil prices and subsequent shortage of greenfield investments, the development of objects in their late exploitation stage has become increasingly important. These specific fields can support steady recovery without significant capital expenditures or further environmental degradation. Enhancing recovery from mature and depleted fields provides an opportunity to achieve this goal. The vast majority of these fields were exploited without modern technologies, resulting in extremely low rates of oil and gas recovery. However, there is a large stock of such wells and residual reserves in mature fields that can be extracted using the latest EoR technologies from existing wells.

The exploitation of oil and gas deposits in their late stage of development is characterized by a constant, gradual decline in production. This is due to the depletion of reserves, a decrease in reservoir pressure, and an increase in the water cut in production wells. With primary recovery methods, utilizing only the natural energy of the reservoir, the final ratio of oil recovery is typically around 20-25% of the geological reserves.

In order to maintain production at the previous level or to reduce the rate of its decline, secondary recovery methods are utilized. These methods involve injecting water and natural gas into the reservoir to maintain intra-reservoir energy. This allows for more efficient development and increases the final oil recovery ratio to around 30-35% of the geological reserves.

According to various estimates, the use of tertiary enhanced oil recovery methods, such as the injection of chemical reagents (such as acid stimulation of production, hydraulic fracturing, etc.), can increase the extraction rate to as much as 50-75% of the geological reserves.

Thus, depending on the properties of the reservoir and the application of various enhanced oil recovery methods, the total oil and gas extraction can reach as high as 50-70% of the geological reserves of the field.

Mature and depleted oil and gas fields, particularly in Ukraine, have significant potential for increasing production through the application of specified development technologies aimed at increasing the final recovery rate of remaining explored hydrocarbon reserves.

NADRA GROUP offers integrated project management services to investors and production companies involved in the development of oil and gas fields, including unconventional hydrocarbon accumulations. These services include:

  1. Selection and investment analysis of production projects, assessing both recoverable and remaining reserves, as well as evaluating opportunities and risks associated with their development. Assessments of the current state of brownfield deposits, taking into account geological reserves of hydrocarbons, production analysis, recovery rates, well conditions, and infrastructure capacity.

    For many years, NADRA GROUP been a responsible executive of Naftogaz of Ukraine to prepare its fields for international reserves audits, and for identifying promising oil and gas exploration assets and investment opportunities in North Africa, the Middle East, and Asia.

    The company's specialists have mastered international oil standards and technologies for evaluating prospective objects and territories through consulting projects for global companies already operating in, or intending to enter, oil and gas production projects in Ukraine.

    The scope of consulting services includes the analysis of all available geological, geophysical, analytical, and technological materials, the quality analysis of geological exploration works performed on the object, as well as work on well completion and materials related to the exploitation of the field, investment analysis of projects, financial and legal consulting, and more.

  2. Processing and interpretation of all available geological and geophysical, oilfield data, including retrospective materials from 2D and 3D seismic exploration, VSP data, geophysical studies in open-hole and cased wells, gravity and magnetic exploration data, and more. In the presence of reliable production information and 3D seismic surveying, specifically pertaining to the level of production from individual wells, hydrodynamic models of fields are developed.

  3. Planning, design, and maintenance services for restoring and enhancing oil and gas recovery from wells. Solving short-term production issues, delivering immediate results and quick impact; solutions addressing infrastructure overload problems, and other ways to optimize the operation of oilfield facilities.

  4. Conducting new geophysical borehole and well logging in cased wells: detection and assessment of oil and gas-saturated formations through casing. research of active production wells, control of the inflow profile, and monitoring of the current oil and gas saturation of formations; control of the technical condition of wells and casing strings, monitoring of the operation of wells, testing of formations; in cases where wells are unevenly distributed across the field area or specific parts of the field are underexploited, conducting additional seismic surveys to identify undeveloped areas that require drilling of new wells.

  5. Finding new reserves, including bypassed reserves and yet-to-be discovered tectonically screened pools.

  6. Preparing the field development plan, which includes prioritizing the sequence of internal well works that will yield immediate results; selecting and ranking methods to increase productivity and/or increase oil recovery rate. These methods may include programs of compaction drilling, flooding, or conversion to a mechanized production method, determining the possibility to develop new productive zones.

  7. Carrying out works on restoration and enhancement of oil and gas recovery in wells using a suitable set of modern technologies, including well workover, chemical liquidation of water cut, acid stimulation of production, hydraulic fracturing of producing formations, coiled tubing and sidetrack drilling, drilling of new wells in the locations of large remaining reserves in the fields under production, restoration of wells that are idle due to technical or geological reasons, other technologies for working with mature and depleted fields to enhance recovery.

  8. Search for opportunities to increase hydrocarbon recovery, including application of effective methods to control reservoir parameters and for development management; optimization of production management and extraction of reserves by applying effective methods of maintaining reservoir pressure; search for new methods to accelerate production/ enhance recovery rate.

  9. Decarbonization, including safe and efficient carbon capture and storage (CCS).

    The technologies include the delivery of CO₂ from power plants and other industrial enterprises into depleted oil and gas reservoirs. The CO₂ is pumped into the reservoir through a well, and additional measures are taken to prevent it from leaking.

    The stages of such a project include the selection of a reservoir, evaluation of its efficiency and definition of its main operational characteristics; preparation, building and upgrading of the reservoir and separate wells model; repair and preparation of wells for СО₂ injection; monitoring, verification and control of СО₂ after its placement in the reservoir; and compliance with regulatory requirements throughout the entire project life cycle.

  10. Geothermal energy

    Application of advanced technologies adapted to geothermal resources include:

    • Advanced geophysical and logging methods for characterizing geothermal reservoirs and detecting natural fractures.
    • Completion and flow intensification technologies to improve well productivity.
    • Reservoir modeling and life-cycle simulation of geothermal resources for development, production, and water injection.
    • Digital oil service technologies to improve operational efficiency.

  11. Geo-economic (GEO) and techno-economic (TEO) assessment of hydrocarbon reserves, which involves the evaluation and audit of reserves according to international standards.

    The calculation and geo-economic assessment of oil and gas reserves using traditional technologies such as the volumetric method or material balance method, as well as 3D modeling of fields or probabilistic assessment of reserves.

    Cooperation with world companies that carry out reserves audits, as well as longstanding experience in evaluating oil and gas production projects in Ukraine enables the company to provide qualified services for preparing oil and gas facilities for international reserves audits. These services are useful for attracting investments or for speculative business, as well as for pre-sale preparation in order to obtain the best fair value of the reserves, taking into account the degree of their exploration and development risks.

  12. Construction and operation of facilities at oil and gas fields: building real-time geological and technological models of oil and gas fields, as well as their clusters and underground gas storages.

  13. Services related to the exploration and production of unconventional hydrocarbon sources.

  14. Environmental protection services during the development of oil and gas fields.

Between 2018 and 2021, NADRA GROUP collaborated with PJSC "Ukrnafta" and private companies to develop a typical investment project. This project involved selecting the latest technologies to restore production from both active and inactive wells without the need for physical liquidation, as well as from liquidated wells. The most promising wells were selected to attract investors and facilitate successful investment projects. The technical condition and restoration potential of over 1,000 wells were analyzed using a systematic approach. After analyzing (and, if necessary, reinterpreting) field and geophysical data, including production data, pay zones were identified and new, previously unexploited, promising pay zones were discovered. The analysis also determined the volumes of recoverable hydrocarbons and identified the presence of promising resources within the explored field.

In recent years, working with old wells has become the main activity of the NADRA GROUP partner network in the energy resources sector.

The company views this work at active fields as the initial step in the green transition of the oil and gas industry, in contrast to the geological exploration of new fields.

Due to their impact on the environment and contribution to climate change, the demand for hydrocarbon resources is expected to decrease in the near term.

Today, the demand for increased oil and gas production from existing fields can be met through the adoption of cutting-edge technologies.

NADRA GROUP recognizes the significance of achieving carbon neutrality for the future of the planet and is committed to supporting the global climate agenda, as well as the provisions outlined in global and local green transformation initiatives. NADRA GROUP is collaborating with partner organizations to accelerate the energy transition and reduce the environmental impact of traditional oil and gas operations.

To expedite the green transition, NADRA GROUP has declared its willingness to adopt cutting-edge technologies that reduce energy and fossil fuel consumption and minimize greenhouse gas emissions. This includes methods of operational and deep decarbonization:

  • The implementation of energy and resource-efficient technologies aimed to reduce production costs and minimize the downtime of wells.
  • Recycling of energy resources involving the processing, reuse, and utilization of secondary energy resources, including technologies for reusing oil and gas wells and converting CO₂ into fuel.
  • The capture, storage, utilization, and extraction of CO₂ (CCS, CCU, CCUS), including during the implementation of full-scale geological studies, which justify the possibility of storing CO₂ in certain formations.
  • CO₂ and CH₄ leakage control technology;
  • CO₂-EOR (enhanced oil recovery) methods using CO₂;
  • Production and use of hydrogen and ammonia as global universal low-carbon energy carriers;
  • The production and utilization of hydrogen and ammonia as global universal low-carbon energy carriers.
  • Geothermal energy projects.

In line with their declared intentions, NADRA GROUP, HALLIBURTON Ukraine LLC, and the State Enterprise "Research Institute of Oil Refining and Petrochemical Industry "MASMA" signed a tripartite Memorandum of Cooperation on November 11, 2021. The purpose of this memorandum is to combine their intentions, competencies, efforts, and capabilities to implement specific steps of the EU Green Deal in Ukraine. The collaboration aims to develop effective decarbonization strategies for gas production companies, implement technological know-how to significantly reduce greenhouse gas emissions, and create streamlined corporate reporting systems in accordance with the Greenhouse Gas Protocol.

In collaboration with HALLIBURTON Company, NADRA GROUP is utilizing breakthrough technologies to enhance oil and gas recovery from mature fields in Ukraine.

A memorandum of cooperation was signed between NADRA GROUP and HALLIBURTON Company on November 24, 2021, with the aim of introducing advanced practices, breakthrough innovative technologies, and methods to Ukraine. This partnership aims to enhance recovery at mature fields under development using HALLIBURTON's expertise.

The 21st century has posed significant challenges for all countries worldwide, including Ukraine. Rapid scientific and technological progress has led to significant changes in all aspects of society, marking the beginning of the Fourth Industrial Revolution. However, this progress has also exacerbated existing problems and given rise to new global challenges, making it an undeniable fact that the scientific and technological revolution has brought about significant changes.

The recognition of threats to humanity's continued existence has prompted a global call to action, reflected in the United Nations' Sustainable Development Goals. These goals aim to eradicate poverty, protect the planet, and promote peace and prosperity for all people worldwide. Climate policy is governed by the UN Framework Convention on Climate Change, as well as other international agreements, such as the Kyoto Protocol and the Paris Agreement.

From January 21-24, 2020, the 50th World Economic Forum was held in Davos with a focus on implementing the Paris climate agreements and achieving the Sustainable Development Goals. During the event, the "European Green Deal" which was adopted on December 11, 2019, was approved.

UN experts have developed the concept of sustainable human development, which promotes the transformation of traditional business models through two approaches: 1) a "total cleaning" strategy that integrates sustainable human development with environmentally clean energy, waste-free technologies, and closed production cycles; and 2) a strategy of limited consumption.