日本オイルエンジニアリング List of Products and Services

We assist in building a value chain for CCS (Carbon dioxide Capture and Storage) as a whole. When implementing CCS, it is necessary to consider the value chain of capturing, transporting, and injecting the emitted carbon dioxide (CO2). Our company can provide the following consultations regarding that value chain: <Consultation on Equipment> ✓ Solutions for CO2 capture from emission sources ✓ Solutions for separation and recovery processes ✓ Solutions for transportation processes ✓ Solutions for injection processes into storage formations <Consultation on Storage> ✓ Interpretation of acquired geological data ✓ Examination of geological data for FID (Final Investment Decision) ✓ Selection of CO2 storage sites and drilling plans for CO2 injection wells ✓ Monitoring plans ✓ Consideration of CO2 diffusion prevention during long-term storage ✓ Examination of storage stability <Others> ✓ Investigation of applicable laws and regulations We provide solutions not only for individual issues but also for the entire value chain.

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Our company can assist in various considerations using CCS (Carbon dioxide Capture and Storage) technology as we explore CO2 capture for carbon neutrality in factories and plants. Particularly in industries such as steel, cement, chemicals, refineries, and waste treatment facilities, where large amounts of CO2 must be emitted due to manufacturing processes, achieving carbon neutrality is quite challenging even with various measures like energy conservation, efficiency improvements, and fuel switching. Therefore, alongside the introduction of equipment for CCU (Carbon dioxide Capture and Utilization) and the consideration of purchasing carbon credits, exploring CCS is expected to be one of the options. In CCS, there are two methods for sending CO2 to storage operators based on the geographical environment and conditions of the emitters: one is to send it as a gas, and the other is to send it as a liquid. The general flow from capture to shipment is illustrated in the left diagram. Our company can provide support for emitters considering CO2 capture, including conceptual design and cost estimation, as well as training, seminars, and study sessions prior to the consideration of CCS/CCUS implementation. Fees will be individually estimated based on factors such as equipment scale, implementation content, and duration.

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Our Development Technology Department will support the planning and implementation of CCS (Carbon dioxide Capture & Storage) in the following areas: <Sub-Surface Field> - Support for site selection (screening) for CO2 injection (from the perspective of geological and reservoir evaluation) - Evaluation of reservoir performance for CO2 injection (initial assessment) - Interpretation, analysis, and evaluation of geological data for the reservoir for CO2 injection - Creation and evaluation of reservoir modeling for CO2 injection - Examination, calculation, evaluation, and risk analysis of CO2 storage potential - Creation and evaluation of behavior prediction simulations for CO2 injection - Creation and evaluation of CO2 injection scenarios - Investigation and comparative study of CO2 storage technologies - Lectures and training on CO2 storage technologies, geological and reservoir evaluation, simulations, etc. We are available to assist with inquiries on specific items as well as general consultations, so please consider reaching out.

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The Facility Technology Department of our company will provide support regarding the planning and implementation of CCS (Carbon Dioxide Capture & Storage) in the following areas: <Surface Facilities/Equipment> - Confirmation and identification of CO2 emission sources (equipment and devices), estimation of emission amounts - Comparison of CO2 separation and recovery methods, estimation of approximate costs, and selection support - Comparison of CO2 transportation methods, estimation of approximate costs, and selection support - Comparison of CO2 storage, absorption, and fixation methods, estimation of approximate costs, selection support, comparison of specific regions and locations, examination of necessary measures, estimation of approximate costs, and selection support - Estimation of approximate costs for the construction of facilities and equipment for specific methods and locations of CO2 storage, absorption, and fixation, as well as estimation of operational costs - Comparison of monitoring methods and durations during and after the implementation of CO2 storage, absorption, and fixation, estimation of approximate costs, and selection support (some tasks may be outsourced to partner companies) - Comparison of closure, disposal, and waste methods for facilities and equipment related to CO2 storage, absorption, and fixation, examination of necessary measures, estimation of approximate costs, and advice on selection (excluding abandoned mine-related matters) - Examination of monitoring methods and durations after the closure of related facilities and equipment, cost estimation, and advice on selection. (Continued below)

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This document introduces some of JOE's initiatives related to CCS/CCUS. CCS (Carbon dioxide Capture and Storage) is a technology that allows for the long-term and stable storage of CO2 by separating and capturing CO2 emitted from power plants and factories and injecting it underground. Additionally, CCUS (Carbon dioxide Capture, Utilization and Storage) refers to the effective utilization of the separated and captured CO2 for enhanced oil and gas production and other purposes. It is gaining attention as an effective technology for combating global warming. We encourage you to read it. 【Contents】 ■ System evaluation using an integrated CCS model: P1 ■ Risk analysis of CO2 leakage: P2 ■ Sensitivity analysis and uncertainty analysis of input parameters: P3 ■ History matching incorporating seismic data: P5 ■ Mineral fixation simulation in CCS: P7 ■ Support for building a blue ammonia (blue hydrogen) supply chain utilizing CCUS: P9 *For more details, please refer to the PDF document or feel free to contact us.

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We introduce the services available for building a blue ammonia supply chain using CCUS technology aimed at achieving a decarbonized society. <Examples of Provided Services> Conceptual Examination - Support for Developing CCUS Implementation Plans - Primary evaluation of storage formations (oil and gas fields, aquifers) - Calculation of CO2 emissions - Site screening (CO2 capture, dehydration, compression, transportation, injection) - Process examination of various facilities (capture, dehydration, compression, transportation, injection) - Cost estimation, analysis, and evaluation of facilities - Creation of project schedule proposals - Preliminary examination of CO2 leak monitoring plans - Preliminary examination of MRV (Monitoring, Reporting, and Verification) - Risk assessment (environmental, safety, oil formations, construction timelines, finance, etc.) - Preliminary examination of project finance plans - Environmental impact assessments, etc. Basic Design - Technical Examination Necessary for CCUS - Storage formation simulation - Design of various facilities - Preparation of EPC (Engineering, Procurement, and Construction) tender specifications - Development of CO2 monitoring plans - Creation of MRV EPC - Construction Management of CCUS Projects - Project management Operations - Technical Support for CCUS Operations - Updates to storage formation simulations - Monitoring activities and MRV reviews

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The risk analysis of CO2 leakage to the surface during and after CO2 injection is important for evaluating safety. It is necessary to examine the presence of faults and abandoned wells, as well as the appropriate injection pressure, and to conduct simulations that consider the impact not only on the reservoir but also on the cap rock. By coupling rock mechanics models with reservoir simulators, it is possible to perform calculations that take into account the effects of pressure changes on the geomechanical properties of the reservoir. For example, in GEM, a modified Barton-Bandis model is applied to simulate the opening and closing of fractures and calculate CO2 leakage from the cap rock. Our company is primarily investigating and examining the following items, focusing on calculations using the reservoir simulator GEM and literature research. [Investigation and Examination Items] ■ Examination of the workflow for creating simulation input data from experimental, analytical, and literature data. ■ Examination of the workflow for CO2 leakage risk analysis that reflects the uncertainty analysis of input data. ■ Investigation of the workflow for CO2 leakage calculations in various reservoir simulators. *For more details, please feel free to contact us.

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It takes hundreds to thousands of years to mineralize a large amount of CO2, and it is known that depending on the mineral composition of the reservoir, the amount of mineralization may not be significant. Recently, however, there are methods like the Carbfix project that allow for mineralization within basalt in just a few years. To estimate the amount of mineralization and the time required for it, CO2 flow simulations that include geochemical reaction calculations (possible with simulators like GEM and TOUGH-REACT) are necessary. In addition to the usual CO2 flow calculations, solving for parameters related to geochemical reactions can lead to a large number of unknowns, resulting in high computational costs and difficulties in convergence. Furthermore, the input data for geochemical reaction calculations often includes highly uncertain factors such as the reactive surface area of minerals, making sensitivity analysis and uncertainty analysis effective. Based on the above, JOE primarily uses the reservoir simulator GEM to investigate and examine the following items: [Investigation and Examination Items] - Setting appropriate chemical reaction data for simulation convergence - Setting chemical reaction equations and evaluating the uncertainty of input data related to chemical reactions - Examining issues in scaling up from experimental data to reservoir data

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To understand the distribution of injected CO2 within the reservoir, 4D seismic surveys conducted with tools like slipmeters are promising as monitoring technology. History matching of reservoir models incorporating 4D seismic data has been carried out since the late 1990s and remains a focus of attention today. When quantitatively comparing seismic data with reservoir simulation results, the large volume of data necessitates the use of automated history matching methods. In setting the objective function for automated history matching, it is essential to compare seismic data and reservoir simulation results on the same level, which requires data transformation using Rock Physics Models (RPM) or seismic models. Based on the above, JOE is investigating and examining the following items primarily through literature review: [Investigation and Examination Items] ■ Methods for creating proxy models and automated history matching using them ■ Workflow for formulating mismatches between seismic data and reservoir simulation results as an objective function ■ Examination and comparison of various workflows for history matching, including differences in automated history matching methods ■ Investigation and examination of various optimization methods

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We will introduce the sensitivity analysis and uncertainty analysis of input parameters in our CSS simulation. By applying commercially available sensitivity analysis tools and Python modules to reservoir simulators, we can efficiently conduct sensitivity analysis and uncertainty analysis. We primarily use CMG's GEM and CMOST and are considering their application to various evaluations related to CCS. Additionally, we are investigating and examining suitable analytical methods for various reservoir evaluations by applying Python modules such as SaLib to other reservoir simulators. [Investigation and Examination Items] ■ Issues in scaling up from experimental data to reservoir data ■ Extraction of high-importance input data through sensitivity analysis ■ Proposals for methods to improve the accuracy of high-importance input data ■ Uncertainty evaluation of output values due to differences in input data accuracy at different stages of data acquisition References 1) GEM User Guide Computer Modelling Group Ltd. 2) CMOST User Guide Computer Modelling Group Ltd.

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We would like to introduce our "System Evaluation Using an Integrated CCS Model." In oil and gas development, in addition to reservoir models, we link underground fluid behavior and surface production facilities through integrated simulations that include pressure losses from well designs and impacts from surface facility networks, allowing for the simulation of the entire project at each time step. We are investigating and examining whether this can be applied to the system evaluation of CCS, focusing mainly on the following items: [Investigation and Examination Items] ■ Optimization of CCS with water production wells as pressure relief wells ■ Optimization of CO2 EOR ■ Production of hydrogen from natural gas production and its impact on the overall CCS system ■ Impact of uncertainty in reservoir parameters on the overall CCS system *For more details, please feel free to contact us.

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"SmartFAM" is an equipment and asset management system that enables effective utilization of equipment and assets at each site and organization from a holistic perspective. Based on the equipment ledger, it centrally manages information related to equipment maintenance, from planning maintenance schedules to inspection and failure history, thereby supporting the efficiency of maintenance operations. Additionally, with an eye on the future, it is a system that can easily evolve into big data analysis of accumulated information and predictive diagnostics using AI, responding to future DX developments and contributing to customers' acquisition of super business site certifications. 【Features】 ■ Centralized management of equipment and asset maintenance information ■ Support for improving equipment and asset operational rates and longevity ■ Assistance in building an IoT information collection infrastructure ■ Compatibility with various management methods ■ Work efficiency improvement through tablets *For more details, please refer to the PDF document or feel free to contact us.

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Japan Oil Engineering (JOE) offers educational training that encompasses reservoir studies conducted in various regions both domestically and internationally, as well as the technical expertise and know-how accumulated through research and development of advanced technologies. <Technical Lectures on Reservoir Engineering, Production Facilities, and HSE in General> At JOE, we plan and implement seminars aimed at acquiring technical knowledge in reservoir engineering, production facilities, and HSE in general, as well as developing educational curricula. Lectures and practical training are conducted by knowledgeable and experienced experts on topics such as reservoir engineering, simulation, and geostatistics, based on the latest information and insights. Additionally, we provide lectures and exercises on process theory and process simulation for oil and gas processing facilities, pipeline design, shipping facilities, and HSE management, based on the know-how accumulated over many years through production facility engineering, development production technology consulting, and environmental and safety consulting.

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Japan Oil Engineering (JOE) has been providing HSE consulting services related to the exploration, development, production, and decommissioning of oil and natural gas, contributing to the "reduction of natural and social environmental impact" and "prevention of occupational accidents." Our knowledge, experience, and technology can be applied to a wide range of businesses. JOE conducts HSE consulting with the aim of ensuring the safety of all involved, protecting health, striving for environmental conservation in local communities and the planet, and promoting the development of a sustainable society where humans and nature coexist harmoniously. HSE: Health, Safety and Environment.

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Our company is capable of comprehensively evaluating the potential of the target mining area by collecting and analyzing relevant information from an engineering perspective, conducting analysis and evaluation of geological and geophysical exploration data, sedimentary basin analysis, and assessing the feasibility of development plans. We utilize advanced software for the processing and analysis of a wide range of data, determining various reservoir parameters and estimating original reserves either deterministically or probabilistically. 【Main Evaluation Items】 ■ Wellbore hazard layer analysis ■ Evaluation of fluid characteristics within the reservoir ■ Evaluation of reservoir rock characteristics ■ Assessment of original reserves *For more details, please download the PDF or feel free to contact us.

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