4 Oileld Review

Project Management of
Offshore Well Completions
Iain Caulfield
Stephen Dyer
Y. Gil Hilsman
Rosharon, Texas, USA
Kerby J. Dufrene
Jose F. Garcia
Port of Spain, Trinidad and Tobago
John C. Healy, Jr.
Consultant
Houston, Texas
Matthew Maharaj
John Powers
BP
Port of Spain, Trinidad and Tobago
Denis Staderoli
Luanda, Angola
Mark Stracke
Kuala Lumpur, Malaysia
Tammy Webb
Murphy Oil Corporation
Kuala Lumpur, Malaysia
For help in preparation of this article, thanks to Mary Jo
Caliandro, Sugar Land, Texas; and Mark Teel and Jeremy
Walker, Rosharon, Texas.
e-Fire, FIV (Formation Isolation Valve), GeoMarket, PURE,
QUANTUM maX, RST (Reservoir Saturation Tool), SenTREE,
Trip Saver and WellWatcher are marks of Schlumberger.
Alternate Path is a mark of ExxonMobil; this technology is
licensed exclusively to Schlumberger.
The global share of oil and gas production from offshore wells is increasing rapidly.
As offshore projects move into deeper waters, economic viability requires efcient
design, testing and installation of well completions. Two case histories from Trinidad
and Malaysia demonstrate the value of close cooperation between operators, service
companies and equipment manufacturers.
Global annual energy consumption has more
than tripled during the last 50 years, mainly
because of demand growth in developing
countries. These countries will use more energy
as their populations grow and their standards of
living improve. The lack of onshore opportunities
to meet the growing demand has driven E&P
companies to increase the development of
offshore oil and gas fields. As a result, offshore
production is increasing rapidly, and output is
expected to double over the next five years
(below). Most of the reserves are located in deep
and ultradeep water. At present, the principal
deepwater fields are located in the Gulf of
Mexico, offshore Brazil, West Africa, Southeast
Asia and the North Atlantic margin.
1
From drilling to abandonment, and even on to
decommissioning, offshore wells present a myriad
of technical challengesparticularly in deep
water. The high productivity and inaccessibility of
these wells require robust completion design,
flow assurance, equipment reliability and
1. According to the US Minerals Management Service
(MMS), deepwater wells are located in water depths of
1,000 ft [305 m] or greater. Ultradeepwater begins at water
depths of 5,000 ft [1,520 m] or more. For more on
deepwater production projects: Robertson S, Westwood R
and Smith M: Deep Water Enjoys Growth Surge, Harts
E&P 79, no. 5 (May 2006): 5052.
Carr G, Pradi E, Christie A, Delabroy L, Greeson B,
Watson G, Fett D, Piedras J, Jenkins R, Schmidt D,
Kolstad E, Stimatz G and Taylor G: High Expectations
from Deepwater Wells, Oilfield Review 14, no. 4
(Winter 2002/2003): 3651.
>
Historical and projected oil production from onshore, shallow-water and
deepwater fields. Experts estimate the proportion of offshore oil produced
from deepwater fields will grow to 25% by 2015. The United States Geological
Survey publication, World Petroleum Assessment, estimates that more than
300 billion bbl [48 billion m
3
] of oil remain to be discovered offshore. [Adapted
from Robertson S: The World Offshore Oil and Gas Forecast. Canterbury,
England: Douglas-Westwood Ltd. (2006).]
60,000
Onshore
Shallow water
50,000
40,000
30,000
20,000
10,000
1950 1960 1970 1980
Year
1990
0
O
i
l

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o
d
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i
o
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,

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,
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2000 2010
Deep water
59605schD3R1.qxp:59605schD3R1 5/10/07 2:30 PM Page 4
Spring 2007 5
59605schD3R1.qxp:59605schD3R1 5/7/07 3:36 PM Page 5
longevity. Economic viability requires maximizing
production rates and ultimate recovery in a safe
and environmentally sound manner. Deepwater
drilling vessels currently command rates from
US $250,000 to $750,000 per day; therefore, well
completions must be installed efficiently to
minimize rig time. Completion design and
equipment reliability are especially critical
because the cost to reenter an offshore well for
workover or repair can exceed US $6 million.
In this article, we examine advanced offshore
completions, from the initial planning stage
through equipment manufacturing, testing and
installation. First, we discuss basic completion
techniques and the collaborative project-
management process. Then, case histories from
Trinidad and Malaysia will demonstrate the
benefits of collaboration.
Introduction to Completions
A well completion is composed of tubulars, tools
and equipment placed in a wellbore to convey,
pump or control the production or injection of
fluids.
2
There are several ways to classify well
completions. The most common criteria include
the following:
wellbore-reservoir interface (openhole or
cased-hole)
producing zones (single or multiple)
production method (naturally flowing or artifi-
cially induced).
Openhole completions are feasible only in
reservoirs with sufficient formation strength to
prevent caving or sloughing. The absence of casing
maximizes formation contact with the wellbore.
To prevent formation solids from entering the
production stream, slotted screens or perforated
liners may be placed across openhole sections
(above). Openhole completions minimize well-
completion expenses and allow flexible treatment
options if the well is deepened later.
In a cased-hole completion, casing is set
through the producing reservoir and cemented
into place. Fluid flow is established by
perforating the casing and cement sheath,
thereby opening and connecting the reservoir to
the wellbore. The perforation tunnel usually
extends past near-wellbore formation damage
caused by drilling, exposing undamaged rock and
allowing unhindered reservoir production (see
Optimal Fluid Systems for Perforating, page 14).
In a typical single-zone completion, only one
conduit or tubing string is involved, and a packer
establishes hydraulic separation between the
tubing string and casing or liner (next page). The
packer is often considered to be the most
important tool in a production string because it
must provide a long-term hydraulic barrier that
is compatible with reservoir fluids and the
wellbore annular fluid.
6 Oileld Review
>
Examples of openhole and cased-hole completions across a single zone. In openhole completions, the production
casing or liner is set and cemented in the reservoir caprock, leaving the wellbore open across the reservoir (left and
center). The well at the center includes a slotted-liner across the reservoir that excludes formation solids from the
production stream. In cased-hole completions (right), the perforations provide a selective conduit from the reservoir to
the wellbore, and serve as a portal for injection of stimulation fluids during acidizing or hydraulic fracturing operations.
Production
casing
Perforations
59605schD3R1.qxp:59605schD3R1 5/7/07 3:37 PM Page 6
Spring 2007 7
Several accessories are frequently installed
above and below the packer. A safety valve,
typically situated toward the top of the
production tubing but below the mudline, is an
emergency well-flow-control device to protect
personnel, the reserves and the environment
against wellhead or equipment failure. Just
above the packer, a sliding sleeve on the
production tubing allows completion-fluid
circulation through the tubing-casing annulus.
Annular-fluid maintenance is necessary to
preserve proper hydrostatic pressure above the
packer and prevent corrosion. Landing nipples
are profiled receptacles in which plugs or chokes
may be landed to control fluid flow, or recording
devices installed to monitor production. Slotted
or ported production tubing allows hydrocarbons
to enter the tubing string. A wireline entry guide
ensures smooth retrieval of wireline tools back
into the tubing string.
Multiple-zone completions are designed to
allow production from more than one interval.
There are many possible configurations that allow
simultaneous production from all of the zones or
selective production from certain zones. Multiple
producing zones are separated for three principal
reasons: government regulations often require
operators to monitor production from each zone;
high- and low-pressure zones are isolated to
prevent crossflow; and crude oils from different
zones may be chemically incompatible, forming
sludges or precipitates if allowed to commingle.
Wells completed in reservoirs that can
produce without assistance are typically more
economical. However, in high-pressure, high-
temperature (HPHT) applications, specialized
engineering and equipment design are required
to achieve production in a safe manner. In many
cases, wells may flow naturally at first, with
subsequent assistance provided by artificial
lifting methods as the reservoir is depleted.
These considerations are typically included as
part of the initial planning process to avoid
unnecessary expense and production inter -
ruption. Artificial lift completions involve gas lift
techniques, or specialized electrically- or
mechanically-driven submersible pumps.
3
2. For more on well-completion technology: Allen TO and
Roberts AP: Production Operations, 4th ed. Tulsa: Oil &
Gas Consultants International, Inc. (1997).
Economides MJ, Watters LT and Dunn-Norman S:
Petroleum Well Construction. New York City: Wiley (1998).
3. Gas lift is an artificial lift method in which gas is injected
into the production tubing to reduce the hydrostatic
pressure of the fluid column, allowing the well to
produce normally with its own formation pressure. For
more on gas lift: Bin Jadid M, Lyngholm A, Opsal M,
Vasper A and White TM: The Pressure's On:
Innovations in Gas Lift, Oilfield Review 18, no. 4
(Winter 2006/2007): 4453.
>
Single-zone and multizone well completions. In the single-zone completion (left), a packer forms a
seal inside the production casing that hydraulically isolates the tubing string from the region above
the packer, called the backside. The backside contains a completion fluid with corrosion inhibitors
to prevent casing corrosion. Below the packer are various devices for controlling fluid flow and
allowing easy retrieval of wireline tools. The multizone completion at the center employs two packers
that separate the producing zones, but the fluids from both zones are allowed to commingle during
production. The multizone completion on the right employs a special dual-string packer that maintains
fluid separation from each producing zone. The single-string packer isolates the lower zone and allows
communication to the surface through the long tubing string. The dual-string packer isolates the upper
zone from the annulus while allowing communication to the surface up the short tubing string.
Surface casing
Annulus pressure
Production casing
Packer Packer
Dual-string
packer
Packer
Landing nipple
Formation pressure
Perforations
Wireline entry
guide
Perforated
production tubing
Single-string
packer
59605schD3R1.qxp:59605schD3R1 5/7/07 3:37 PM Page 7
At the top of all well completions is an
assembly of valves, spools, pressure gauges and
chokes commonly known as a tree (above). The
tree prevents the release of oil and gas from the
well into the environment, and directs and
controls fluid flow from the well. In addition, the
tree contains components that allow insertion of
equipment such as wireline tools into the well.
Another vital device at the wellhead during well
completions is the blowout preventer (BOP)a
valve that may be closed to prevent loss of well
control. Many BOPs can be actuated remotely,
and are critically important to the safety of the
crew, rig and wellbore.
Offshore, the tree location and design are a
function of water depth and platform availability.
In water depths less than about 6,000 ft
[1,830 m], trees can be located atop an offshore
platform or spar.
4
These dry trees are
advantageous because they allow wireline access
to the well during production. When the seafloor
depth exceeds 6,000 ft, current technology does not allow platform-based offshore installations.
Therefore, a wet tree must be placed on the
seafloor. Wet trees are typically more complex
than conventional platform completions, and
normally include provisions for pressure and
temperature monitoring, and sophisticated
hardware for automatic fluid-flow control.
Because wireline access on subsea trees is costly,
engineers install permanent downhole pressure,
temperature and flow-monitoring equipment to
anticipate or avoid problems.
5
Subsea trees may be either vertical or
horizontal (above). Generally, vertical trees are
installed after the production tubing has been
placed in the well. Therefore, if repair is needed,
the tree can be retrieved without removing the
completion. Their main limitation is the dif ficulty
of well intervention after installation. Horizontal
trees, on the other hand, are designed to allow
engineers to finish a completion after the tree has
been installed. As a result, production tubing and
other devices can be run into the well after the
tree is in place. Workovers can be performed
without removing the tree, reducing time and
expense while improving safety. In addition,
horizontal trees are more compact.
8 Oileld Review
>
Wellhead tree and blowout preventer (BOP). The tree controls fluid flow out of the wellbore and
allows controlled insertion of equipment such as wireline tools into the wellbore (left). The BOP
prevents loss of well control during drilling and completion operations (right).
Kill wing
connection
Kill wing
valve
Mud returns
Blind rams
Shear rams
Kill Choke
Stripper
Drill floor
BOP stack
Tree cap and gauge
Injector head
Tree adapter
Swab valve
Upper master valve
Lower master valve
Tubing head adapter
Production string
Production wing valve
Surface choke
To production facilities
Annular
preventer
>
Subsea trees. Vertical trees (top) are lowered
onto the well after the production tubing is in
place. Horizontal trees (bottom) are more compact,
and can be installed before the well completion
is finished. The trees are built to withstand high
hydrostatic water pressure at the seafloor and
the corrosive effects of seawater. (Photographs
courtesy of FMC Technologies Inc.)
>
Integrated offshore-well completion-team organization. Close cooperation
between Schlumberger and client personnel is essential to ensure a timely flow
of information, establish project-management procedures and define the project
objectives for all parties. Among the issues to consider are rig scheduling to
meet first-oil requirements, detailed component and completion engineering
design, geographic locations of team members, and client participation in
engineering design and manufacturing.
Engineering
Manufacturing
Telemetry project
team
GeoMarket
support
Schlumberger project team Operator project team
Project manager Project leader
Project engineer,
lower completion
Technical support,
lower completion
System integration testing
(SIT) project engineer
SIT coordinator
Telemetry project
manager
Senior petroleum
engineer
Field service
manager
Engineering
coordinator
Delivery coordinator
Operational
coordinator
Offshore supervisors Operational engineers
Quality engineer Quality engineer
Project engineer,
upper completion
Technical support,
upper completion
59605schD4R1.qxp:59605schD3R1 6/27/07 6:11 PM Page 8
Spring 2007 9
Planning and Execution of
Offshore Completions
Achieving a successful offshore completion
requires a closely integrated, multidisciplinary
project-management team comprising personnel
from the operating company, drilling and service
companies and equipment manu facturers
(previous page, bottom). After the contracts are
signed, at least two years are usually required
for the team to analyze technical parameters
and obstacles, determine the completion strat-
egy, design and manufacture the completion
equip ment, perform thorough testing and finally
install the completion in the well (above).
4. Carr et al, reference 1.
5. Christie A, Kishino A, Cromb J, Hensley R, Kent E,
McBeath B, Stewart H, Vidal A and Koot L: Subsea
Solutions, Oilfield Review 11, no. 4 (Winter 1999/2000):
219.
>
Typical offshore-completion project organization. After contracts are signed, at least two years are usually
required to complete all the tasks and begin production (top). The projects are divided into nine discrete steps
from initial planning to production and maintenance (bottom). Reviews are conducted after the completion of
each stage, and full agreement between Schlumberger and the client is required before proceeding to the next
one. Acronym definitions: BODbasis of design; CWOPcomplete well on paper; EOWRend-of-well report;
FMEAfailure modes effect analysis; HAZOPhazard and operability study; ITTinvitation to tender; POpurchase
order; PPproject plan; Sub-Assyssubassemblies; TPSthird-party suppliers; SITsystem integration testing.
Planning
Engineering &
procurement
Installation and
precommission
Preapproval Approval Contract
signed
Core team and
project plan
in place
Engineering
approval
Final
engineering
approval
Client
acceptance
File
archive
Contract
terminates
Opportunity
capturing
Screening,
ranking and
prioritization
Review
and approval
Bid
preparation
Process
startup
ITT scope
planning
Bid preparation
and compilation
Review
and approval
Contract
negotiation
Process
startup
Preparation
for contract
negotiation
Contract
negotiation
Engage TPS
Transition
and planning
Process
startup
Project plan
preparation
Project plan
review and
approval
Process
startup
SIT
Installation, pre-
commission and
client acceptance
Transportation
and receipt of
equipment
Manufacturing
Process
startup
Quality
control
Scope
verification and
final acceptance
Transportation
and receipt of
equipment
Engineering and
procurement
Installation and
precommission
Process
startup
Preoperational
planning
Startup and
commissioning
Project
completion
Contract
closeout
Postproject
review
File archive
Closeout
Process
startup
Preliminary
engineering and
solicitation
Detail
engineering
Final design
review and
approval
Operation and
maintenance
Operation and
maintenance
Process closure Process closure Process closure
BOD Design POs
PP
Risk
CWOP
Upper completion
Isolation systems
Sandface equipment
Wellhead/subsea tree interfaces
P
r
o
j
e
c
t

t
r
a
n
s
i
t

t
o

p
r
o
d
u
c
t
i
o
n

a
n
d

m
a
i
n
t
e
n
a
n
c
e
Shipping Install
Process closure
Project
kickoff
Equipment
on location
1st well Closeout
Wellhead SIT
Control line SIT plan
Establish project-management team and build local infractructure,
provide training and operational experience
Surface
Sub-Assys
HAZOP EOWR
Process closure Process closure Process closure Process closure Process closure Process closure
Prototype
product
validation
3 to 9 months 3 to 6 months 6 to 24 months
Business
development
Manufacturing Shipping Closeout
FMEA
Install Procedures
Risk
management
Risk review
59605schD3R1.qxp:59605schD3R1 5/7/07 3:37 PM Page 9
Offshore completion design and installation
involve several stages. Before proceeding from one
stage to the next, all team members must approve
the work that has been performed to date. From
an economic standpoint, the efficiency of this
process is as important as the technology.
During the planning stage, engineers evaluate
the envelope of conditions within which the
completion must operate. Principal parameters
include geology, pressure, temperature, produced-
fluid properties, anticipated production rates,
flow-assurance issues and predicted well life.
After completing the analysis, the team generates
a robust and reliable completion design that can
be installed efficiently. After design approval,
procurement and manufacture of the completion
components begin.
Before the equipment is shipped to the
wellsite for installation, thorough system
integration testing (SIT) should be performed to
verify that the completion performance will meet
or exceed the agreed-upon specifications, and
that any unforeseen interface-compatibility
issues are identified. SIT also provides a dry
run for potential completion designs, allowing
engineers to develop more efficient installation
procedures, test contingency options and
ultimately reduce nonproductive time.
SIT is conducted under simulated conditions
equivalent to those in the actual well. To meet
this testing requirement, Schlumberger opened
the Cameron (Texas) Test Facility (CTF) in
2004.
6
The ISO-9001 certified facility allows
engineers to assemble the completion exactly as
planned for a specific well, install the completion
in an equivalent borehole and verify proper
system-component performance (above right).
7
Completion design, manufacturing and SIT
are guided by failure modes effect analysis
(FMEA)a method to identify potential failure
modes for a product, process or system, assess
the risks associated with the failure modes, rank
the issues in terms of importance, and identify
and perform corrective actions to address the
most serious concerns. Widely practiced in many
industries, notably the automotive and aerospace
sectors, FMEA enables engineers to assemble a
critical items list (CIL) comprising failure modes
that would have a catastrophic effect. In the
context of well completions, the CIL identifies
high-priority items requiring evaluation during
the SIT process.
8
Key well-completion stakeholders witness
SIT in person or remotely, and everyone must be
satisfied with the total system performance.
After all approvals have been secured, the well-
completion hardware is shipped to the wellsite
for preparation, installation and commission.
The following case histories illustrate how this
closely integrated project-management approach
has led to success in offshore well completions.
Completing High-Rate Gas Wells in Trinidad
BP Trinidad and Tobago (BP) developed the
Cannonball field in offshore Trinidad as a
source for liquefied natural gas (LNG) plants.
Located 22 miles [35 km] from Galeota Point, at
a water depth of 231 ft [70 m], the producing
sandstone known as the 33 sand is about 280 ft
[85 m] thick with 185-mD permeability and 19%
porosity. The reservoir temperature is 220F
[104C] at 12,350 ft [3,764 m] total vertical
depth (TVD). To meet increasing LNG demand,
BP and Schlumberger collaborated on the
construction and completion of three wells with
21 to 34 deviations.
9
Under normal circumstances, the rock
strength of the producing formation, greater
than 2,000 psi [13.8 MPa], would be high enough
to allow a sandface completion without sand
control. However, this formation was expected to
be prolific and, at an anticipated production rate
of 300 MMcf/d [8.5 million m
3
/d] per well, FMEA
showed that even a small amount of sand
production would cause catastrophic damage to
the completion hardware and the surface
equipment. Therefore, to prevent sand
production, the team chose Alternate Path
technology, a system of screens and shunt tubes,
to place a complete and homogeneous gravel
pack.
10
They also chose high-rate water packing
as the gravel-placement method.
In similar gas fields in Trinidad, BP achieved
success with openhole-gravel-pack (OHGP)
sandface completions with no additional
production packer. This simple approach ensured
minimal skin values and high flow efficiencies;
therefore, the completion team chose the same
strategy for three new wells.
11
However, in light of
the high production rates, BP decided that the
openhole packers must be rated V0, the highest
possible leak-resistance rating for a packer in ISO
Standard 14310. At the time of equipment
selection in 2004, Schlumberger had just released
10 Oileld Review
>
System integration testing (SIT) at the Cameron Test Facility (CTF) in Texas.
The CTF, which encompasses several hundred acres, became operational in
2004. The site is equipped with a full-capability drilling rig that can produce
boreholes with more than 6,000 ft of horizontal reach. The rig is mounted on rails
for convenient access to well slots equipped for openhole and cased-hole tests.
Cameron is an ideal testing location because the formations penetrated by CTF
wells exhibit diverse porosities, permeabilities and mineralogies, allowing
realistic testing over a wide range of conditions.
59605schD3R1.qxp:59605schD3R1 5/7/07 3:37 PM Page 10
Spring 2007 11
a 10
3
4-in. by 6-in. QUANTUM maX gravel-pack
system for HPHT conditions, a hydraulically set
packer that met the V0 standard. Therefore, the
team decided to incorporate it in the primary
completion design (below).
In addition, the new packer had to be
qualified for use with the gravel-pack system.
Consequently, a successful SIT was a necessity
before the OHGP system could be approved for
use at the Cannonball field. Two SITs were
performed between the end of 2005 and early
2006. Some problems were encountered during
the first test that resulted in the use of a new
wellbore-cleanout string during the second test.
In addition, a FIV Formation Isolation Valve tool
was included below the packer to protect the
sand-control assembly from completion-fluid
damage. The second test was successful, and the
completion design was approved for installation
in Trinidad.
On the first well, CAN-01, problems occurred
when attempting to set the packer, so it was pulled
out of the hole and inspected. Within 48 hours, the
investigation team determined that a carbonate
plug in the wash pipe prevented the packer from
setting. Engineers ran a backup assembly and
completed the job successfully as designed after
the hole had been thoroughly cleaned.
The completion program was modified to
include a more thorough cleaning of the
openhole interval to prevent recurrence of the
plugging problem. The team also decided to run
gravel-pack logging tools, such as the RST
Reservoir Saturation Tool device, to provide
valuable troubleshooting data on all future gravel
packs. In addition, they observed shunt-tube
activation at the conclusion of the gravel-pack
operation in the first well, confirming the
importance of Alternate Path technology in the
completion design.
On the second well, CAN-02, Alternate Path
technology paid dividends with almost 50% of the
gravel-pumping job completed through the shunt
tubes. During drilling, a large rathole was left
below the casing. During the gravel-pack
operation, a premature screenout occurred when
a sand dune formed in the rathole and collapsed
after reaching critical mass. Fortunately, the
shunt tubes performed as designed and the well
was completed five days ahead of schedule.
The third well, CAN-03, had both problems
observed in the first two wellswash-pipe
plugging and early screenout. However, with the
lessons learned, best practices and a robust
overall project design, CAN-03 was completed
eight days ahead of schedule.
The Cannonball completion project ended
below budget, with only 16.2% nonproductive
time. The efficient completion of CAN-02
and CAN-03 resulted in a cost savings of
US $1.25 million and US $2 million, respectively.
In addition, because the V0-certified packers
allowed the three wells to produce at their full
potential, BP saved an additional US $800,000
by eliminating the production packer and
associated joints, assembly, testing and rig time.
The Cannonball gas platform began production
in March 2006, and is currently producing
800 MMcf/d [22.7 million m
3
/d] from the
three wellsthe most productive in BPs
offshore portfolio.
>
Final completion design for the Cannonball field (left). The well is completed open hole across the
producing zone with Alternate Path gravel-pack screens providing sand control. Uphole, a V0-rated
QUANTUM maX hydraulically-set packer (top right) provides isolation that can withstand high gas-
production rates. The packer is deployed on a gravel-pack service tool, set with tubing-to-annulus
differential pressure. It can be retrieved on drillpipe. In addition, a FIV Formation Isolation Valve
(bottom right) protects the sand-control assembly from completion-fluid damage. The FIV tool is a full
opening mechanical ball valve that is mechanically opened and closed as needed using a shifting
tool. The compressed-nitrogen-activated Trip Saver one-trip operation feature allows the operator
to open the valve without conventional intervention techniques.
Shifting tool
engaged
QUANTUM
maX packer
Shifting tool FIV tool
Trip Saver
tool opened
FIV closed
Crossover-
flow coupling
Nipple
Safety valve
Sand-control
screens
6. For more on the CTF: Arena M, Dyer S, Bernard LJ,
Harrison A, Luckett W, Rebler T, Srinivasan S, Borland B,
Watts R, Lesso B and Warren TM: Testing Oilfield
Technologies for Wellsite Operations, Oilfield
Review 17, no. 4 (Winter 2005/2006): 5867.
7. ISO standards are developed by the International
Organization for Standardization. See http://www.iso.org
(accessed March 19, 2007).
8. For more on FMEA: Stamatis DH: Failure Mode and
Effect Analysis: FMEA from Theory to Execution.
Milwaukee, Wisconsin, USA: American Society for
Quality (1995).
9. Powers J, Maharaj M, Garcia JF and Dufrene K:
Win, Place, Flow Works in Trinidad, Harts E&P 79,
no. 11 (November 2006): 4950.
10. For more on Alternate Path technology: Ali S, Norman D,
Wagner D, Ayoub J, Descroches, J, Morales, H, Price P,
Shepherd D, Toffanin E, Troncoso J and White S:
Combined Stimulation and Sand Control, Oilfield
Review 14, no. 2 (Summer 2002): 3047
11. Skin factor is dimensionless and indicates the
production efficiency of a well by comparing actual
conditions with theoretical or ideal conditions. A positive
skin value indicates formation damage or influences that
are impairing well productivity. A negative skin value
indicates enhanced productivity, typically resulting
from stimulation.
59605schD3R1.qxp:59605schD3R1 5/7/07 4:00 PM Page 11
Developing Resources in Offshore Malaysia
Malaysia has some of the most abundant
hydrocarbon reserves in Asia. With total proven
reserves of 4 billion bbl [640 million m
3
] of oil
and 87 Tcf [2.5 trillion m
3
] of natural gas, the
country has long been a net exporter of both
commodities. However, at the present rate of
consumption, Malaysia will have to begin
importing oil by 2015 unless new production is
brought on line. PETRONAS, the national
Malaysian oil company, is responding with an
ambitious program to increase production by
3% per year over the next 10 years to at least
720,000 bbl/d [114,400 m
3
/d] by 2010. With
this goal in mind, PETRONAS accelerated
exploration and discovered that most of the new
oil lies in deep water.
In 2002, Murphy Oil Corporation, a
PETRONAS franchisee, discovered the Kikeh
field in the deepwater area of Sabah in East
Malaysia. Kikeh lies 4,300 ft [1,311 m] beneath
the South China Sea, and the producing
sandstones are estimated to contain several
million bbl of recoverable oil. The formations are
slightly overpressured, with bottomhole
temperatures less than 200F [93C], and
permeabilities between 300 mD and 1,000 mD.
To develop the field, plans include drilling up
to 19 subsea wells and another 20 dry-tree wells
from a spar supported by a drilling-tender unit
a more efficient method that will enable Murphy
Oil to begin producing oil only five years after
discovery. Due to start production in 2007, Kikeh
will eventually produce more than 100,000 bbl
[15,900 m
3
] of oil per day, accounting for almost
17% of Malaysias 2010 production goal.
Both the subsea and spar wells include oil
producers, water injectors and a gas injector. To
maintain production, the water injectors will
operate at a field rate of approximately
200,000 bbl [31,800 m
3
] per day, and the gas
injector is capable of more than 100 MMcf
[2.8 million m
3
] per day.
After more than a year of well design and
development planning, PETRONAS awarded the
major contracts for the Kikeh completions. The
development strategy involved applying proven
completion technologies whenever possible.
However, several new tools and techniques were
necessary to achieve Murphys goals:
safeguarding the reservoirs during completion
operations, protecting the environment,
maximizing well productivity and using the most
efficient and cost-effective procedures.
Achieving the last goal required devising ways to
minimize the number of equipment trips and
days required to perform the completions.
Murphys Completion and Subsurface
Reservoir Engineering departments performed
extensive rock-strength studies before selecting
the basic sandface-completion designs. Test
results indicated that sand control was
required across the upper two of the three
principal producing sections. Murphy engineers
specified expandable sand screens in cased holes
for the injectors and in open holes for the
producers (below).
Schlumberger and Murphy engineers also
selected the PURE perforating system for clean
perforations to achieve skin factors less than
2.0.
12
Combining a QUANTUM maX packer, a FIV
tool and tubing-conveyed eFire electronic firing
head systems makes it possible to perforate the
12 Oileld Review
>
Schematic diagram of a Kikeh oil producer (left). The QUANTUM maX
packers, FIV tool and tubing-conveyed eFire electronic firing head systems
allow engineers to perforate the wells, perform reservoir analysis and isolate
the perforations from completion fluids during a single trip. The completion
is also equipped with WellWatcher real-time reservoir and production
monitoring technology including permanent quartz gauges that are designed
to operate for 10 years without maintenance (bottom right). To accommodate
periodic chemical injections to prevent scaling, hydrate or wax deposition,
Dual-Check Chemical Injection Mandrels (DCIN) are installed at strategic
locations (top right). The mandrels are one-piece devices fabricated from a
corrosion-resistant alloy. Dual-check valves provide a reliable leak-proof
seal for both liquids and gases.
Tubing hanger
QUANTUM
maX packer
Permanent quartz
gauge mandrel
Tubing isolation
valve (TIV)
QUANTUM packer
DCIN Dual-Check
Chemical Injection
Mandrels
QUANTUM packer
FIV Formation
Isolation Valve
59605schD3R1.qxp:59605schD3R1 5/7/07 3:37 PM Page 12
Spring 2007 13
wells, perform reservoir analyses with injection-
test programs and isolate the perforations from
completion fluidsall on a single trip. For
maximum reliability, the perforating system is
supported by an independent pressure-activated
firing system. This technique saves valuable time
while offering maximum reservoir protection
and exploitation.
In addition to the latest perforating and FIV
technologies, the Kikeh completions include
multiple-control-line ported packers set with a
nonintervention tubing isolation valve (TIV)
system, again offering rig-time savings while
permitting full completion-integrity testing and
confirmation. The TIV and FIV combination
allows engineers to fully test subsea-tubing-
hanger integrity and the deepwater completion-
installation workstring without intervention or
time-consuming surface testing.
To prevent expensive interventions, or at
least minimize their magnitude, Murphy Oil must
not only manage well production and injection,
but also detect potential problems at an early
stage. Therefore, the Kikeh completions include
WellWatcher real-time reservoir and production
monitoring technology involving permanent
quartz gauges, and subsea and surface-tree data
acquisition and transmission systems. These
components are designed to operate 10 years
without maintenance.
To protect the environment and Murphy Oils
field infrastructure during completion and
production operations, engineers chose TRC-II
subsurface safety valves. The valves feature two
separate and complete piston systems connected
by individual control lines, offering redundancy
and long-term reliability.
13
Fouling will be
prevented because the valves can be placed at
depths greater than 12,000 ft [3,858 m], well
below hydrate- or paraffin-deposition zones. At
Kikeh, engineers installed the TRC-II valves at
5,790 ft [1,765 m] below sea level. Nevertheless,
the Kikeh completions will still require chemical
injections to inhibit potential scale, wax and
hydrate deposition. The Dual-Check Chemical
Injection Mandrel (DCIN) provides this capability.
All of the completion technologies described in
this article depend on reliable equipment to install
the completion hardware far below the oceans
surface. For maximum security during these
operations, Murphy decided to install a modified
SenTREE 7 subsea well control system for the
injectors. Subsea producers use the fully capable
SenTREE 7 system with test-tree valve modules
for well access and control. If difficulties are
encountered during installation of subsea
producer wells, the control system provides a 15-s
response time to shut in the well and disconnect
the landing string. As the various completion
components are run into the well, the operator has
direct hydraulic control of down hole valves and the
completion system even before installation is
complete. This flexibility not only reduces
operating costs, but also offers contingency options
should unforeseen situations arise.
Before the completion components were
shipped to Malaysia, a thorough SIT program was
conducted. The results were successful, giving
Schlumberger and Murphy confidence in the
completion plan. Less than one year later the
first equipment began to arrive. Within six
months, the first completions were installed, a
major accomplishment made possible by close
cooperation between the Murphy Oil drilling and
completions groups and Schlumberger comple -
tions, perforating, subsea and testing personnel.
During 2006, initial well performance
validated the completion architecture selected by
Murphy and Schlumberger, and no major design
changes have been necessary to achieve the
completion objectives. Nevertheless, further
collaboration and optimization have taken place
to shorten field-development time and improve
operations. For example, the presence of several
pressure-operated TIV and FIV units requires
close monitoring of all pressures applied to the
well, regardless of actual pressure, to predict and
prevent unexpected tool activations. This permits
completion personnel to make necessary
adjustments before beginning a service operation.
Kikehs combined spar and subsea-well
approach is unique. The subsea wells allow a
small spar size, reducing infrastructure costs and
installation time. The dual approach also allows
simultaneous spar and subsea drilling, pipeline
installation and construction of other facilities.
This latter development philosophy has
dramatically decreased the time to market of
Murphys product, while maximizing the
efficiency of the development through shared
resources and fit-for-purpose techniques. In fact,
the Kikeh development will be one of the rare
deepwater fields to proceed from discovery to oil
production in five years.
Continued Development of Integrated
Offshore Completions
The case histories presented in this article
illustrate the complexity and technical
challenges of todays offshore completions,
especially in deep water. Close integration
between the service company and operator is
critical to achieve success in a timely and
economic manner. In addition, Schlumberger
engineers have responded to developmental
challenges by introducing a comprehensive and
versatile array of completion technologies that
allow operators to produce oil and gas safely and
efficiently. As deepwater development continues
to accelerate, lessons learned developing the
fields discussed in this article will be applied to
future ones, and close cooperation between all of
the players will become commonplace. EBN
12. For more on the PURE perforating system: Bruyere F,
Clark D, Stirton G, Kusumadjaja A, Manalu D, Sobirin M,
Martin A, Robertson DI and Stenhouse A: New
Practices to Enhance Perforating Results, Oilfield
Review 18, no. 3 (Autumn 2006): 1835.
13. Garner J, Martin K, McCalvin D and McDaniel D: At the
Ready: Subsurface Safety Valves, Oilfield Review 14,
no. 4 (Winter 2002/2003): 5264.
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