IESL has secured work from PetroRegional del Lago, a joint venture between Shell and PDVSA which operates the Urdaneta field in Lake Maracaibo, Venezuela. Continuous efforts from IES Global team in Venezuela are realising a large opportunity based on a long and successful track record in the area. The work includes the evaluation of current well completion performance and its optimization as part of the development plan for the field.

Based on a very long and successful track record in West Africa (Ivory Coast and Nigeria) IESL has secured work from CNRI to review and develop sand face completion options for their Olowi field offhsore Gabon. A number of challenging conditions are expected, from waxy crude to long horizontal sections in unconsolidated reservoirs that makes the design a critical component of a successful field development program.

The Robert Gordon University has awarded our subsidiary Innovative Knowledge Ltd. - InnK, the support and facilitation of their online program in the area of well completion design. Our involvement with the University dates from 1999 when we started supporting the post-graduate programs. In 2001 InnK developed the materials and facilitated delivery of the Drilling engineering, Well and Field management and Advanced Well Design online Master programs. We are very happy to continue supporting the University and contributing to enhance its well earned reputation for academic excellence.

Pluspetrol Peru , has awarded IESI a contract to develop the Sand Face Completion design for their new horizontal wells in the Corrientes field. Located in block 8 in Northern Peru; and based in the success obtained with the horizontal wells in the Yanayacu field, Pluspetrol has again chosen IESI to work along their engineers to meet the challenges encountered in this area, stress anisotropy, highly viscous crude and high water production.

In 2003 IESL made a firm commitment to expand internationally particularly in Latin America. We made the investment and slowly started building a presence in the most important markets in the area. Based on our continued success in Peru and Venezuela this month we have opened our office in Valencia, Venezuela which will continue that drive; headed by P. Guerrero and F. Moreno we will be providing our customers with a robust and efficient support in well engineering and knowledge transfer systems throughout Latin America.

IESL has two new technical publications. Paper SPE 108056 entitled “Effective use of Geomechanical Data for Resolving Wellbore Stability Problems in Blocks 1AB and 8, Northern Peru” describes the Custodian program, its methodology, process and results for over 300 wells operated by Pluspetrol in Northern Peru. Also paper SPE 106711 entitled “Integrating Drilling and Geomechanical Damage in Sandstone Reservoirs. Identification, Quantification and Removal” describes how drilling and geomechanical damage at the sand face can be identified, the mechanisms that cause it and how it can be removed to enhance productivity.  Full text papers can be downloaded from the publications page in our site.

IESL has completed the development of the Custodian Program for Pluspetrol Peru.  The project involved the development of a large geomechanical system that allows Pluspetrol’s engineers to store and manage geomechanical information for all the wells in their Northern Peru operations. 208 wells in 8 fields were characterised resulting in a very detailed and accurate understanding of the geomechanical conditions in the area.  Over 3000 drilling events related to wellbore stability problems were identified for various well trayectories and geologies; the Custodian system allowed Pluspetrol’s engineers to successfully design and drill three(3) new wells in 2006 with a dramatic reduction in engineering time and cost. Drilling activity for 2007 will benefit from the use of the system in well planning and drilling operations avoiding/minimizing wellbore stability problems.

IESL has delivered the first knowledge transfer program on Sand Management and Disposal to Petroleos de Venezuela S.A.. The program is part of PDVSA’s 2006 – 2008 employee development plan and includes two other programs in well perforating design and well completion. With 22 participants the session was carried out at PDVSA’s facilities in Los Teques and counted with the presence of sand detection specialist ClapON which delivered a presentation in the areas of sand detection equipment and methodologies. The session was well received, three(3) similar programs are to be delivered in 2007, to date over 130 people has attended the programs.

In 2003 IESL made a firm commitment to expand internationally particularly in Latin America and we opened our Houston office.  We made the investment and slowly started building a presence in the most important markets in the area. Based on our continued success in Peru and Venezuela this month we have opened our office in Valencia, Venezuela which will continue that drive; headed by P. Guerrero and F. Moreno we will be providing our customers with a robust and efficient support in well engineering and knowledge transfer systems throughout Latin America.

Pluspetrol Peru, has awarded IESI a contract to develop the Sand Face Completion design for their new horizontal wells in the Corrientes field. Located in block 8 in Northern Peru; and based in the success obtained with the horizontal wells in the Yanayacu field, Pluspetrol has again chosen IESI to work along their engineers to meet the challenges encountered in this area; stress anisotropy, highly viscous crude and high water production.

Obtaining reliable strength data requires the availability, transportation, preparation and testing of core material.  IESL has started to use a non-destructive field method commonly used in the geological and concrete industries to take onsite strength measurements on core samples. The measurement is taken at the core storage facility therefore, no need for transportation, preparation or the risk of damage/destroy the core material. The amount of measurements that can be taken is virtually unlimited and it has proven to be a significant improvement in terms of accuracy, consistency, reduced cost and simplicity of the data acquisition process.

Based on IESL’s experience in well design and production optimisation for heavy crude, we have been awarded a contract to carry out sand face design and engineering studies for Venture’s Pilot field in the North Sea. The work involves characterisation of the reservoir mechanical status in order to identify the optimum completion options for Pilot. Working with Venture engineers and its contractors, issues such sand control as well as artificial lift system’s design will be carried out for wells with horizontal sections of up to 6000 feet.

IESL has completed extensive work on the Fiddich field operated by Talisman Energy UK.  The work included the re-determination of the geomechanical conditions throughout the field in order to define the likelihood of encountering formation integrity problems. The results indicate that there is no real need for sand control throughout the life of the field, allowing the client to optimise the completion design and enhance the chances of maximizing productivity.

A training session in geomechanical modelling and wellbore stability was held in Lima, Peru for Pluspetrol. The program is part of the Custodian project and allowed a number of Pluspetrol engineers and managers to discuss at length the different aspects of wellbore stability such as fluid-rock interaction problems, in-situ field stresses and drilling practices. The Custodian program has already started to yield results to Pluspetrol with two wells drilled based on the program.

Innovative Engineering Systems Global has won a contract to deliver the optimum sand face completion design options for well in concession OML112 offshore Nigeria. 6 reservoirs will be characterised for deliverability and mechanical state in order to understand their long term behaviour under the expected production conditions. Design and selection of the optimum completion and its individual components will then be carried out.

The alliance between Innovative Engineering Systems and Advanced Well Technologies is hard at work and our engineers are developing production optimisation solutions for wells in the Amazon basin in South America. The work includes the development of a field model using Network and NODAL principles to identify areas where improvements to the current operations can be implemented. Initially for one field (10 wells), this work has provided an opportunity for our customers to benefit from the joint capability and strengths in well engineering and production optimization that both companies can offer.

Pluspetrol Peru operates two large blocks in the Northern part of the Peruvian jungle. The company awarded the development of a large geomechanical system to IESI in order to optimise their drilling operations. A Custodian System is being developed by Innovative Engineering Systems Global and over 45 wells in three fields have been characterised for in-situ field stresses and mechanical properties. Two wells have been drilled using the system, a knowledge transfer program is also progressing so the Pluspetrol engineers will have the benefit of using the program according to their operational needs. 6 fields containing over 100 wells remain to be included in the system and so far the Custodian System has reduced the cost of wellbore stability studies for Pluspetrol by over 70% and more importantly have allow more efficient drilling operations avoiding wellbore stability problems

Innovative Engineering Systems Global has delivered the first of its Perforation design and applications knowledge transfer session and the third of the current 2006 – 2007 program. Applications such as dynamic under balance, oriented perforating and detailed perforating program design were covered during the week long session. Schlumberger was the invited guest which presentation on their PURE technology was well received. This Knowledge Transfer program covers over 350 attendants in the areas of well completion design, perforating design and sand management.

IESL has enhanced the capabilities of its Sand Production Management System – SPMS, a sand volume prediction module has been developed that addresses the issues of how much sand is likely to be produced. This innovation allow us to predict the well flow rates and drawdown pressures that will mobilise sand from the sand face/perforation tunnels. The analytical tool work by determining the stress & strain state of the rock in the near wellbore area as well as the inflow conditions required to mobilise the sand based on the drag forces exerted by the production fluids. Our clients can then reduce the level of uncertainty with respect to the volumes of sand expected, its source and occurrence(transit or continuous) mode.

In June this year we reached our 12th birthday, this is a milestone. We have gone through many stages that have made IESL what we are today. A first class technology company that delivers reliable and cost effective engineering to our clients.  With over 10 active technologies in the market in our key business areas; well engineering, technology development and knowledge transfer systems, we have developed business and operations in 3 continents. The contribution from our past and present employees has been outstanding and we look forward to continue our growth and success. With current levels of activity, 2006 will become the best technical and financial year for IESL Global yet.

IESL’s client Venture Production UK has successfully installed its first expandable screen completion in the Chestnut field in the North Sea. Along with Venture engineers, IESL designed the sand face completion across the Nautchlan sands using a number of analytical tools that allowed to optimise filter media selection and completion design. The expandable screen was run after the mud was conditioned and expanded without any problems, the upper completion was then installed and the well tested successfully.

IESL is again working with CNRI on their Baobab development in 4900 feet of water offshore Ivory Coast, West Africa. Using IESL’s grain size prediction tool, geologists and engineers from both companies are hard at work to characterise the geological settings of the field. The model used is based on geomechanical principles and predicts on a continuous basis the mean average grain size. The technique offers significant advantages over conventional Sieve analysis or Laser Diffraction techniques that are for discrete points only.  IESL have contributed significantly to other CNRI developments in near by fields of Espoir (East & West), Baobab and Acajou in the areas of sand face completion design and wellbore stability. For details of the technique see our publications page SPE Paper No. 97956

Innovative Engineering Systems Global has initiated the 2006 – 2007 Knowledge Transfer program for Petroleos de Venezuela S.A. Developed to cover technical areas such as Well Completion, sand management, sand control and perforating design, 21 participants attended the start up of the program in Los Teques, Venezuela at Intevep premises. The program delivers practical expertise to PDVSA’s personnel that, once implemented, will result in enhanced productivity and technical independence; both of which are strategic objectives of PDVSA. Topics of interest such as CHGP in wells under steam injection as well as frac & pack and screen systems were discussed and analysed in detail by the participants.

IESL has been awarded a contract by Pluspetrol Peru to optimise production and injection in two of its Northern Peru blocks. The work to be carried out in conjunction with their engineers and covers the development of a complete surface and subsurface network to evaluate well and pipeline performance in the Capahuari North and South fields, for a total of over 15 wells. Using NODAL analysis techniques, the work is expected to improve the efficiency and effectiveness in production from the field.

Innovative Engineering Systems and Advanced Well Technologies of Perth, Australia have formed an alliance to jointly pursue opportunities to support our Clients in the areas of well completion, heavy crude production, field development and rehabilitation. The synergies and combined strengths of the alliance will allow us to provide our customers with first class engineering services on a truly global basis, and together, both AWT and IESL look forward to engaging with clients from our bases in Aberdeen, Perth, Kuala Lumpur, Mumbai, Dubai, Houston and Caracas.

Petroleos de Venezuela – PDVSA has awarded IESL Global a contract for the development and presentation of three(3) knowledge transfer programs in the areas of well completion, sand management and perforation design. Up to 350 engineers and technicians will be trained under these programs during 2006 and 2007. This is the largest single contract in the area of Knowledge Transfer Systems awarded to IESL, it follows a successful program completed for PDVSA in 2004.

As part of IESL’s continuous growth we have the pleasure to have Mrs. Yelitza Sorrentino joined us as a senior Geomechanist. A Materials Engineer with a MSc in Integrated Reservoir Management, Yelitza brings a wealth of experience in geo-pressures determination, in-situ stress analysis and wellbore stability, she worked for 9 years in R & D and technical services including rock mechanics laboratory testing duties and Geomechanics for a major operator. She will strengthen our technical capabilities and help IESL to continue to excel in our commitment to our customers worldwide.

IESL has presented its unique well performance model for heavy crude production at the SPE/IBP Workshop on Artificial Lift and Heavy Oil, held in Buzios, Brazil from the 28th to the 30th of May. The event was well attended and questioning was focussed on the Non-Newtonian nature of the crude and its impact on well performance. Copy of presentation can be downloaded from our Publications page.

Pluspetrol Peru has awarded IESL the development of a Custodian System, a large system for the management, storage and utilisation of Geomechanical information. The system will contain the Geomechanical models for 10 fields in the Northern blocks. The project includes the development of analytical tools for Pluspetrol engineers to carry out wellbore stability analysis. Expected to last until 2007 the contract was awarded based on the key features of the Custodian Program; efficiency, flexibility and independence for Pluspetrol engineers. The opportunity was developed by IESL Venezuela’s team that has continued to provide first class customer service to Pluspetrol.

IESL has been awarded work by Amerada Hess for identifying wellbore integrity issues for a field in Algeria.  Hess has been IESL’s customer since 1996 and we have provided technical support in the areas of production optimisation, well intervention and sand face completion design in the UKCS and in Algeria.

IESL was invited by PDVSA to deliver the Master Class at the 1st Forum on Sand Control and Disposal, held in Barinas, Venezuela on the 27 and 28th of April. The event was very well attended with specialist from all the local operators and service companies as well as academic institutions. With over 300 attendees the forum focussed on the technical advances made by the various operators in dealing with sand control and disposal problems. A copy of the slides (in Spanish) is available from our "Publications" page.

Our GMASS® technology has been very successful in well intervention and drilling operations, with over 30 operations completed worldwide for clients such as Schlumberger, Smith International, Napesco and Halliburton. Based on its key features, high gas separation and reliability, we have completed development of our GMASS® – Pro, a downhole static fluid-gas separator for hydrocarbons production duties. The system is to be used in wells where artificial lift is required and, in particular, where pumping (i.e. PCP & ESP’s) is taking place.

We have completed development and validation of our well performance methodology for reservoirs producing heavy and extra heavy crudes.  Based on IESL’s RhEPS® technology it allows to accurately characterise reservoir and well performance taking into account fluid’s rheological behaviour through the reservoir, pump and completion string. Current well performance packages do not take into account hydrocarbon’s rheology that can affect well performance significantly.

IESL has completed work for Pluspetrol Peru to optimise horizontal well completion design for horizontal wells producing viscous crudes with high water cuts. The project involved working closely with Pluspetrol engineers in the determination of wellbore integrity, reservoir performance and sand face completion design. Current Pluspetrol operations are in the Amazon jungle of Northern Peru nearby the Maranon river (which later becomes the Amazon river). These remote conditions presented a number of difficult challenges for the design team as safety, logistics and environmental constraints heavily influence the final completion design.

Our sister company Innovative Knowledge Ltd., has been awarded a contract by The Robert Gordon University to provide support to the Master Degree programs in Well and Field Management being carried out by the Energy Centre.  RGU has been our client since 1999 and we have provided support with the online programs as well as the lecture based ones. This contract highlights our track record and expertise in Knowledge Transfer at both Industrial and Academia levels.

It is with great sadness that we have said goodbye in April to Craig Webster who had been with us for over 8 years. Craig came to us as a young engineer and leaves us as a highly qualified engineer and manager.

Since late 2003 we have been investing heavily in the Latin American market, developing the business and the resources required to produce a sustainable operation. To date we have established a good base in Venezuela; serving clients in both Venezuela and Peru. IESL’s well engineering systems for completion design and production optimization as well as our knowledge transfer programs have been very successful in the area with activities and projects for clients such as SINCOR, PetroZuata, PDVSA and Pluspetrol. Resource base is local with support from our Houston and Aberdeen offices emphasizing the company’s ability to operate and use its technology on a global basis. Our most recent success is the award by Pluspetrol of a long term contract for the development of Geomechanical models for their drilling and completion operations in Northern Peru. The work was previously carried out by a major service company and is one of the largest contract ever won by IESL . It is the result of great team work and unique engineering skills put to work to enhance efficiency of their operations and production for the client.

In 2005 IESL’s technologies and systems have been enhanced to continue to provide our customers with up to date tools that will allow them to improve productivity and minimize risk in their operations. Our new system GeoCompletion® for sand face completion design has been very successful because it provides our customers with a realistic design process for sandstone reservoirs. Our GeoDRILL® system for Wellbore stability analysis has also seen significant enhancements with the fluid-rock interaction module integrated as well as the hydraulics and cuttings management modules. IESL’s GMASS® fluid and gas separation technology has made major progress with the development of a system for use in hydrocarbon’s production; this will extend its use from well intervention and drilling to production. GMASS® is now well accepted in the North Sea where it has been steadily working for CNRI and Marathon.

With the significant increase in activity we continue to enhance our technical capabilities in all areas of our activities. In 2005 Abraham Salazar has joined IESL from PDVSA-Intevep and was based in Caracas, Abraham has over 10 of experience in well performance and production engineering, particularly in artificial lift, heavy crudes and geomechanics. A mechanical engineer with a MSc in Field and Well Management from RGU, he is contributing to enhance our technical capability and is delivering robust engineering solutions for our clients. He was recently transferred to our Aberdeen offices where he is the Senior Petroleum Engineer.

Paper SPE 97956, “ Recent Advances in Granular-Based Sand Control Design Operations and their Performance Evaluation” was presented at the 2006 Formation Damage Control conference in Lafayette, Louisiana, February 13 – 17.

A new knowledge transfer program on Sand Management has been developed and it complements the existing program for “Well Completion Design in Reservoirs with Sanding Problems”. The new program addresses issues related to the prediction of sand volumes to be produced, its transport, separation, detection and disposal.