SPE/IADC 52833

Underbalanced Drilling gains acceptance in Europe and the International Arena.

Ben Gedge Northland Energy Services
Copyright 1999, SPE/IADC Drilling Conference
This paper was prepared for presentation at the 1999 SPE/IADC Drilling Conference held in
Amsterdam, Holland, 911 March 1999.
This paper was selected for presentation by an SPE/IADC Program Committee following
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Abstract
Underbalanced Drilling is the natural and inevitable
technological progression of horizontal drilling developed in
the United States Austin Chalk formation, primarily for field
re-development and now extended to new reservoirs where
impairment is a key issue.
Horizontal drilling greatly improved recovery and productivity
rates, particularly in redevelopment of existing and often
pressure depleted reservoirs, but still encountered many of the
drilling problems associated with conventional directionally
drilled wells. In the case of mud losses, impairment and
formation damage, the problems increased due to the wellbore
being open for much longer and of course having much greater
length through the reservoir section. Operators around the
world quickly saw the advantages of horizontal drilling, which
rapidly became a standard field development technique,
onshore and offshore where the geology and reservoir were
compatible with this method of development. The same now
applies to underbalanced drilling. The advantages are quickly
being seen and the technology employed where the geology
and reservoir are suitable.
The majority of hydrocarbons being exploited today are found
in existing fields or in complex and lower quality reservoirs.
This is where underbalanced drilling technology can improve
recovery and in some cases reduce development costs.
Development of UBD Technology Internationally
The two first major onshore underbalanced drilling projects in
Europe took place in Germany, beginning in 1995 and
continuing into 1996. Both of these projects involved the
low head or reduced overbalanced drilling of pressure
depleted reservoirs which were to be utilised for gas storage,
the operators being BEB and RWE-DEA. Due to the very low

reservoir pressure, in the case of the RWE-DEA project, foamdrilling techniques were employed. The Ulsen reservoir
drilled by BEB had a higher reservoir pressure enabling the
drilling to be performed with KCl water and nitrogen. Both
projects successfully achieved the technical objectives set out
at the project inception and would have experienced extremely
difficult drilling problems if they had been drilled
conventionally.
These projects were a milestone for Europe, paving the way to
the move offshore into the North Sea. The technology was
slowly gaining acceptance so it could be successfully and
safely deployed in the applications required both onshore and
offshore. A key factor in this was the approval given by the
Regulatory Authorities, albeit initially in the form of reduced
overbalanced drilling, rather than full underbalance.
By 1996 offshore coiled tubing UBD projects were under trial
with success - offshore Denmark by Maersk and by NAM
onshore in the Netherlands. Other smaller projects were
executed by Pentex Oil and Candecca Resources onshore UK.
A four well UBD programme was executed by WAPET in
Australia using a conventional rig, jointed pipe and a rotating
BOP, (1995).
The major breakthroughs came in 1997, firstly with the Shell
project offshore in the Southern North Sea in the Leman gas
field. This project was a re-entry in the Leman field of an
existing well drilled low head rather than fully
underbalanced. The success of the project, compared with the
results of conventional drilling of the same pressure depleted
formation, in another well, gave Shell encouragement to
continue the trial of UBD technology on a further programme
of horizontal wells in tight gas sands which are fully
pressured. The programme is ongoing today with
considerable technical success and technological achievement
in the advancement of underbalanced operations.
The second major project was the Arun Gas Field redevelopment by Mobil in North Sumatra, Indonesia. This
project faced many technical challenges with low bottom hole
pressures, and abnormally high temperatures. The project has
been very successful, and continues today.
Other operators also conducted projects in Argentina and
onshore in Spain, making 1997 an important year for the
development of the technology.

BEN GEDGE

In 1998 the Shell Southern North Sea programme continued,

NAM drilled successfully offshore in the Netherlands using
UBD techniques for clear water drilling of the chalk formation
which in the past had in certain circumstances given problems.
SPI (an Agip subsidiary) and Anschutz drilled a pilot hole and
sub-horizontal lateral in Sicily incorporating the use of a Rig
Assist Snubbing Unit. This was the first time such equipment
had been operationally deployed outside North America.
Onshore UBD work was continued by NAM with coiled
tubing using the Baker Galileo hybrid coiled tubing drilling
rig.
In Indonesia a major project was undertaken by Kufpec on
Seram Island in the Oseil field. The initial discovery well
encountered drilling and formation damage problems in the
highly fractured limestone formation. Oseil wells No. 2 and
No. 4 were drilled underbalanced using diesel and nitrogen
the nitrogen being generated with air compressors and a
membrane nitrogen unit. An extensive underbalanced coring
operation was successfully completed on both wells. The use
of membrane nitrogen generation was a first for Indonesia and
proved very effective compared with the continued
transshipment of liquid product over 1,500 kilometers from
the nearest supply point. Underbalanced drilling will continue
to play a key role in the future development of this field.
Another Indonesian project was undertaken by Gulf Resources
in South Sumatra to alleviate drilling problems in a highly
productive, highly fractured gas reservoir. Although
Indonesia saw the highest level of UBD activity outside North
America in 1998, other projects were executed in South
America by BP and Harken in Columbia and in Venezuela by
Perez Companc in a heavy oil reservoir. In North Africa the
first UBD project was undertaken in Algeria where there is
considerable scope for increased UBD activity.
The projects mentioned so far are the majority that have been
reported but perhaps not the total picture, as other coiled
tubing and UBD jointed pipe projects were executed, for
example in Oman for PDO where jointed pipe and coiled
tubing had been tried. This list does give a reasonable
overview of how UBD operations moved out of the USA and
Canada into the International Arena.
The picture is still not one of general use of UBD
internationally, but rather one of specific project application,
as acceptance of the benefits of the technology spreads. The
vision currently is that between 5% to 10% of development
and/or redevelopment wells will in the future be drilled
underbalanced internationally. Current annual totals are a
very long way short of these predictions.
The dramatic fall in oil price in 1998 will radically affect all
drilling activity for some time to come. Predictions range
from 2 to 4 years before oil prices recover sufficiently to
stimulate the activity levels recorded in 1997. Underbalanced

SPE/IADC 52833

drilling developed out of the 1986 oil price collapse as a

technology for increasing recoverable reserves from existing
fields. For this reason, the level of UBD activity will only be
affected by the lack of cash flow operators have available for
drilling projects, and the overall reduction in activity.
Redevelopment projects adding to and increasing recoverable
reserves from existing fields will certainly capture such budget
dollars as available during this period of low oil prices.
Technologies employed in Underbalanced
Operations
The technologies employed in underbalanced drilling all
originated in North America, where the cost of developing
new products and services is much less than in Europe and
other International locations. Western Canada has played a
leading role in advancing the technology to a point where it
could be deployed Internationally.
The typical wells where underbalanced drilling was to be
deployed internationally, such as in the North Sea and onshore
in Europe, were far more demanding than those generally
encountered in the USA and Canada.
The pressures and temperatures were higher, lateral extension
of the horizontal wells much greater and hole sizes generally
larger. For the equipment and practices used successfully in
North America to be deployed internationally, resulted in
another step change in the technology.
Taking a concept and equipment package from onshore in
Western Canada and placing it offshore on a jack-up attached
to a major production facility in the North Sea saw a major
upgrade in equipment design and packaging to facilitate easy
transfer from supply boat to rig. A whole range of
improvements and adaptations had to be made, from the
Rotating BOP to separation package, ESD system, safety
systems and flare booms.
The range of equipment and technologies used for UBD
operations are listed below: Equipment
Rotating Blow-out preventer or Control Head
Four phase separator
ESD system
Choke manifold and Flow Lines
Liquid or membrane nitrogen unit
Coiled tubing unit
Rig Assist or stand alone snubbing unit
Data Acquisition system
Downhole float and check valves
Adapted Steerable motors
MWD/LWD Tools (conventional and electro-magnetic)
Steering Tools with quick connects.
Pressure while drilling tools (memory and real time data
transmission).

SPE/IADC 52833

UNDERBALANCED DRILLING GAINS ACCEPTANCE IN EUROPE AND THE INTERNATIONAL ARENA.

Technologies and Processes

Two phase flow modeling
Four phase separation
Tripping under pressure
Completions under pressure
Element Sealing mechanisms on Rotating BOPs or Control
Head.
Downhole Lubricator (adapted SSV or FIV)
Inflatable Bridge Plug technique for completion under
pressure
Data Acquisition software
MWD/LWD
Coring while drilling underbalanced
Categories
Low Head or reduced overbalance drilling
Mud Cap Drilling
At balanced drilling
Underbalanced drilling
Underbalanced operations
The equipment and technology developed and adapted for
underbalanced drilling has wider application in the industry
than purely UBD applications. A range of tasks are now
performed with all or part of the equipment set, and used in a
number of drilling, completion and workover operations.
A no kill policy for the life of the well is being introduced
by some Canadian operators. This has greatly reduced
workover costs and formation damage during workovers. The
development of the Rig Assist Snubbing Unit has made this
possible. The Rig Assist Snubbing Unit was developed for the
workover and well control operations, and then adapted and
adopted for underbalanced drilling.
Well control applications for UBD equipment are becoming
more common, with the snubbing of a casing string in
Argentina, and a recent job for Mobil in Germany, to mention
just two.

around the world combines to make costs higher than they

should be.
Solutions to Cost Reduction. The multi-skilling of personnel
and automation of the equipment as far as is safe and
practicable will give considerable cost benefits.
Removing redundancy in the equipment package.
Integration into the Rig Package where a long drilling
campaign is planned, and harmonising operations with the rig
crew, rather than adding numerous additional personnel.
Equipment
Reduction in overall equipment foot print.
Increased Automation.
Increased pressure ratings.
Modular design capable of being used onshore and offshore.
Possible replacement of the Annular Preventer by the
Rotating BOP.
Harmonisation of data acquisition with the mud logging unit.
Conclusion
Underbalanced drilling is proven to be an important
technology, available to the operator in a range of
applications. As the acceptance grows and spreads
internationally, issues of engineering, cost and logistics will be
resolved to allow the use of this important development to
become as acceptable as horizontal drilling became in the
1980s.
Acknowledgments
The author wishes to thank Northland Energy Corporation for
their permission to present this paper, and Ruth Gedge and
Kate Mantle for their assistance in the preparation of this
paper. Much of the data discussed in this paper has come from
the overall activity reviews discussed at the 1st and 3rd
International UBD Conference and Exhibition in The Hague
1996 and 1998, and the UBD Forum Meetings in Milan also in
1998.
References

Coiled Tubing units have performed tasks on live wells for the
last 20 years as have snubbing units for the last 60 years.
Air Drilling, which has been used since the 1950s has
employed very effectively many of the principles now
incorporated into underbalanced drilling.

1.

Problem areas which need addressing

internationally to increase the use and acceptability
of UBD
Cost. The cost and complexity of UBD operations have
deterred some operators. The problem does not so much lie in
the day rates charged for equipment or personnel, or the
engineering issues to be resolved, but the standby time while
other operations are performed on the well has been shown to
account for a large percentage of the total UBD project cost.
Add this to moving large amounts of equipment and personnel

4.

2.
3.

5.

6.

Foy, J. and Brett, P.: First North Sea Underbalanced Jointed

Pipe Well, Shell Expro, Lowestoft U.K.
Hogg, T. and Boyle, J.E.: BPX Colombias Underbalanced
Drilling Experiences, BP Colombia.
Adamache, Dr. I.: A Horizontal Well Drilled Underbalanced in
a Heavy Oil Unconsolidated Formation in Venezuela,
Northland Production Testing, Calgary.
Adamache, Dr. I.:
An Exploratory Type Well Drilled
Underbalanced in an Over-pressured Gas Reservoir in
Argentina, Northland Production Testing, Calgary.
Allison, B.: The Upgrading of the onshore Surface Fluids
Handling Closed System for UBD to an Offshore Package for
the 1st North Sea UBD Well, Northland Production Testing,
Calgary.
Deis, P., Yurkiw, F. and Barrenechea, P.: The Development of
an Underbalanced Drilling Process: An Operators Experience in
Western Canada, PanCanadian Petroleum, Calgary.

Heavy Slips
Traveling Plate
Traveling Slips

Stationary Slips
Annular BOP
Hydraulic Cylinders
Equalizing Spool
Bleed Valves
Single Gate Ram BOP

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UNDERBALANCED DRILLING GAINS ACCEPTANCE IN EUROPE AND THE INTERNATIONAL ARENA.

Wellhead Pressure Control

Quick-Change
Packer Assembly

Kelly Drive
Assembly

Inner Packer
Outer Packer
Bearing
Hydraulic Fluid Inlet

Surge
Bottle

Seal
Outlet Flange
Bottom Flange

BEN GEDGE

SPE/IADC 52833

Flare Knockout

Vertical Four
Phase Separators
Pressurized Lab

Northlands Separation System

Electrical Control Unit
Gas Measurement
Dual Sample Catcher
Liquid Dump Lines

- fully redundant system

- fifteen lifts < 20,000 lbs
- weight distribution plate
- Shell North Sea Program

Solids Transfer
Control Manifold

Offshore Separation System

SPE/IADC 52833

UNDERBALANCED DRILLING GAINS ACCEPTANCE IN EUROPE AND THE INTERNATIONAL ARENA.

Modules Include:
Separator (PT-20)
Fluid out (PM1)
Metering (PM7)
Divertor Manifold
Choke Manifold
Slurry Pump (on skid base)

BEN GEDGE

SPE/IADC 52833

Four Phase Separator

Control Manifold
Solids Transfer

Northlands
Separation
System
Calibrated
Site
Glasses
Dual Pressure Relief

Gas Measurement
Water Dump Line

Dual Sample Catcher

Oil Dump Line

Horizontal Separation System

SPE/IADC 52833

UNDERBALANCED DRILLING GAINS ACCEPTANCE IN EUROPE AND THE INTERNATIONAL ARENA.

UBD Wellsite - Land Operations

Pre-charge Pump

Wellsite Fluid
Storage
Northlands
Separation
System
Natural Gas Supply
Primary Choke Manifold
RBOPTM
Horizontal Separator
2nd Flow Manifold
Quick Bleed
Power Supply

Inert Gas Supply System

Pipe and Spare Parts

Gas Flare System

10

BEN GEDGE

SPE/IADC 52833

Location of International UBD Projects

Germany - BEB, RWE - DEA, Mobil

Denmark - Maersk
Netherlands - NAM
UK - Shell, Pentex, Candecca.
Italy - Onshore
Sicily - SPI, Anschutz
Spain - SHESA, CEPSA
Algeria - Sonarco
Sharjah - B.P. Amoco
Oman - P.D.O.
Indonesia - Mobil, Kufpec,
Gulf.

***
*
**
**
**

**
*

**

Colombia - B.P. Harken

Venezuela - Perez
companc

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UNDERBALANCED DRILLING GAINS ACCEPTANCE IN EUROPE AND THE INTERNATIONAL ARENA.

11

Underbalanced Drilling gains acceptance

in Europe and the International Arena.

Ben Gedge
Northland Energy Services