Epm 2013 05

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E-LINE
FRAC-TREE RENTALS
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HOT OIL
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FABRICATION
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Denver,CO
May 29-31,2013
EPMAG.COM
2013
MERITORIOUS
ENGINEERING
AWARDS
M AY 2 0 1 3
MWD/LWD
Basin Modeling
Ultra-deepwater
Production
Water
Management
Marine
Construction
REGIONAL
REPORT:
GULF OF
MEXICO
iving
eep
Deepwater
challenges
demand
innovation
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EXPLORATION & PRODUCTION

WORLDWIDE COVERAGE
M AY 2 0 1 3
VO L U M E 8 6
A H A R T E N E R GY P U B L I CAT I O N
WATER MANAGEMENT
54
Searching for the right mix of shale

and water
56
60
Saving water in the oil sands
64
Mobile separation technology delivers

high-volume water recycling
ISSUE 5
w w w. E P m a g . c o m
COVER STORY: DEEPWATER CHALLENGES & SOLUTIONS
36
A day in the life of a barrel of water
BASIN MODELING
70
Taking a geological approach to

regional exploration
76
Implications and applications for petroleum

systems modeling
MWD/LWD
80
LWD data allow evaluation of producible

zones offshore Brazil
86
LWD fluid analysis sampling, testing reduces

development risk
90
Unique MWD system designed for drilling

unconventional wells
94
LWD formation testing improves evaluation

efficiency
Majors drive
search for solutions
to deepwater challenge
44
Understanding the challenge

of manufacturing deepwater
line pipe
Thermal insulation advances

are key to plumbing
the depths
48
IndustryPULSE:
Legal implications of an
independent Scotland
The countrys independence could

result in a host of issues facing the offshore oil
and gas industry.
ULTRA-DEEPWATER PRODUCTION
99
Collaborative efforts turn technical

challenges into successes
102
Full speed ahead for Brazilian FPSO vessels
MARINE CONSTRUCTION
110
Majors deepwater push is a force for change
114
New kids on the block shake up subsea

construction market
12
Deepwater revival on horizon for GoM
117
THE 2013 MERITORIOUS

AWARDS FOR ENGINEERING
INNOVATION WINNERS
Growing grounds for

optimism in UK waters
With the UK offshore sector set for a period of

record investment, one of the countrys leading
oil industry figures says optimism remains strong for
the industry going forward, both in its home waters
and abroad.
REGIONAL REPORT: GULF OF MEXICO
136
WorldVIEW:
Unconventional:
104
The Niobrara brings

big numbers to Colorado
Operators in the Colorado Niobrara

find success, with the state seeing the effect
in higher oil production numbers for 2012.
EBAKKEN THREE FO RK S NI O BRARA HEATH MAN COS PR O NG HO RN CC) DELL M

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A firsthand look at the industry's latest oil-resource activity - and where it's heading
DUG Bakken and Niobrara (formerl y DUO Reservoirs) focuses on the Bakken, the emerg ing Niobrara and oil- and liquids-rich
resource plays throughout the region. High-potential targets in the Denver-Julesburg, Uinta, Piceance, Powder River and Green
River basins, drilling and completion best practices, takeaway issues and midstream challenges are examined, too.
Whether you are seeking new business connections, or to learn how producers and midstream operators are developing
their assets , DUG Bakken and Niobrara is THE conference you cannot afford to miss. Plan today to attend this year 's
event. For more information go to dugbakken.com.
Hart Energy continues the DUG Series tradition of top executives with key producers detailing their unique perspectives.
Register today at dugbakken.com
PREMIER
SILVER
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UniversalPegasus
ENE RGY SER VIC ES
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NATIONAL
OILWELL
VARCO
PLATINUM
BAKER
HUGHES
Holl
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SERVICES
Wealth Management
Da rk
of
Aincncn C o ? p ? . a l o n
Opening Keynote: Noble Energy 's Niobrara Play

Hess' Burgeoning Bakken
Building on our successes in the Rockies
Roundtable: Investing in Oil Plays
Ramping Up in the Wattenberg Field
LATE ,
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More Rockies Basins - Niobrara and Mowry Petroleum Systems

Emerging-Oil Spotlight: The Tuscaloosa Marine Shale
More Emerg ing Horizontal-Oil Plays
Early Indications from the Heath Shale
Results from the Horizontal Upper Sunniland Trend
Upstream Track Topics
Midstream Track Topics - New for 2013
Adding More Three Forks to the Bakken Equation

The Bakken Without Borders: The U.S. and
Canada Sides
The Bakken in the Rough Rider Area
Niobrara Economics
Geology Spotlight
Smarter Field Operations
Technology Roundtable: Innovations in Comp letions
Whiting ' s Bakken & Three Forks , plus the Pronghorn
The Bakken Infrastructure Challenge

Li ght , Sweet Crude
Refining in the Bakken Region
Panel: Bakken Pipelines
Panel: The Bakken - Via Rail
Moving Crude to Market
The Edd ystone Project: Railing Bakken to Pennsylvania
The Rockies Buildout
Gas Storage in the Niobrara Region
drilling On
CDI
Praednics
P RO D U C T S
Chuck Davidson
Chairman and CEO,

Noble Energy. Inc.
CONTRIBUTING
GOLD
HA R T E N E R G Y
RADON
Schlumberger
PRESENTED BY:
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Steve Upad
HOSTED BY:
ESP Investor MIDSTREAM
UNCOGVE TIONAL
LG OIL & GAS CENTER
COO ,
CentralMontana
Resources LW
G rog Hill
President, Woddvede E&P,

Hess Corp.
Tom Petrie
Chairman ,
Poore Primers
James J. Volker
Chairman and CEO ,

Wm'dngPeWleem Corp.
A. Lance Langford
Vice President,
Stared
Taylor L Reid
EVP and COO ,

Oasis Petfoleum Inc
eEZ ?e? i
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Bart Broo kman

Senior VP, E&P
P110Energy Inc
JJan Harrison
Senior VP, Driling.

WPXEnergyInc
Paul Hopfad
VP,
Business Development,
WBI fnerpy
Jon Wright
VP, Operations ,
Ha/con ResourcesCorp.
Odette big
Global Refining VP,

WorleyParsoas
Jack Stark
Senior VP, Exploration ,

Caataren6lResoooskt
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John Miller
VP Industrial Products
Sales ,
BNSfHallway
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Rob Turnham
President and COO ,

Goodrich PelleemCorp.
David Sradnl
COO ,
CalilerMidsrream
.01ADIANT
h1v
DEPARTMENTS AND COMMENTARY
AS I SEE IT
Golf, anyone?
F
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4 +
MANAGEMENT REPORT
Knowledge layer is next big innovation
17
DIGITAL OIL FIELD

Unconventionals require nontraditional workflows
Bringing transportation management to the oil and gas industry
20
24
EXPLORATION TECHNOLOGY
Planets align for local symposium
29
DRILLING AND COMPLETION

Operators see decades-long promise of unconventional plays
31
PRODUCTION OPTIMIZATION
Carnival comes to the presalt
33
OFFSHORE ADVANCES
Twilight years for a tired fleet
35
INDUSTRY IMPACT
Active-set cement system can automatically seal leak paths
Produce
ultra-high
temperature
wells faster
RHADIANT ' ultra-HT non-aqueous
drilling fluid system is the industry 's
first drilling fluid proven to deliver
stable rheolog ical performance at
bottomhole static temperatures
(BHST) greater than 500F (260C) .
An operator in the Gulf of Thailand' s
'Ring of Fire' used the RHADIANT
drilling fluid system to efficientl y
drill a high-angle well with a
BHST of 432F (222C) with zero
lost circulation. A total of seven
open-hole logging runs were then
performed ,all with excellent results.
130
TECH WATCH
Making rigs wireless
TECH TRENDS
INTERNATIONAL HIGHLIGHTS
ON THE MOVE/INDEX TO ADVERTISERS
132
134
140
142-143
LAST WORD
Setting course for a polar-class drillship
144
COMING NEXT MONTH The June issue of E&P takes an in-depth look into the growing complexity of well completions technology. Other features will examine how to improve exploration success as well
as the latest advancements in land seismic; deepwater rig advances; sand, proppant, and fluid management; and topsides solutions. Regional reports will feature the Permian basin and China. As always,
while youre waiting for the next copy of E&P, remember to visit EPMag.com for news, industry updates,
and unique industry analysis.
ABOUT THE COVER Deepwater represents the future for the offshore sector,
but every step forward reveals new risks and challenges. Left, the US Gulf of Mexico
is enjoying a spectacular resurgence three years after Macondo. (Main cover
image courtesy of Trelleborg; cover design by Laura J. Williams)
www.miswaco.com/rhadia nt
Mi SWACD
A Schlumberger Company
'Mark of M-I .. .
E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston,
Texas 77057. Periodicals postage paid at Houston, TX, and additional mailing offices. Subscription rates: 1 year (12 issues), US $149;
2 years (24 issues), US $279. Single copies are US $18 (prepayment required). Advertising rates furnished upon request. POSTMASTER:
Send address changes to E&P, PO Box 5020, Brentwood, TN 37024. Address all non-subscriber correspondence to E&P, 1616 S. Voss
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S. Voss Road, Suite 1000, Houston, TX 77057; Telephone: 713-260-6442 Fax: 713-840-1449; custserv@hartenergy.com. Copyright
Hart Energy Publishing, LP, 2013. Hart Energy Publishing, LP reserves all rights to editorial matter in this magazine. No article may be
reproduced or transmitted in whole or in parts by any means without written permission of the publisher, excepting that permission to
photocopy is granted to users registered with Copyright Clearance Center/0164-8322/91 $3/$2. Indexed by Applied Science, Technology
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Printed on
recycled paper
Stinger
ONLINE CONTENT MAY 2013
PREMIUM CONTENT
CONICAL DIAMOND ELEMENT
Subscribe @ EPmag.com/explorationhighlights
BP, partners approve Clair appraisal program in North Sea

BP and its co-venturers Shell, ConocoPhillips, and Chevron announced in
a press release their decision to proceed with a two-year appraisal program to look at the possibility of developing a third phase of the Clair
field west of the Shetland Islands in the North Sea.
.
r
SBM seals $3.5 billion Lula FPSO deal
1?
SBM Offshore has received a letter of intent for the 20-year charter and
operation of two FPSO vessels for the deepwater Lula field offshore
Brazil, with the value of the dual-floater deal put at US $3.5 billion, the
company said in a press release.
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//
Hyundai wins $2 billion Moho Nord FPU, TLP contracts

Hyundai Heavy Industries received two contracts valued at US $1.3 billion and $700 million to build a floating production unit (FPU) and tension-leg platform (TLP), respectively, for Total E&P Congos Moho Nord
deepwater development offshore Republic of the Congo, Hyundai
said in a press release.
all
AVAILABLE ONLY ONLINE
Kenya plans to adopt competitive

bidding for June oil licensing round
By Obafemi Oredein, Special to E&P
Exploration success in Kenya is attracting international interest, but new regulation governing licensing rounds is
causing concern.
Myanmar opens door to foreign players

By Steve Hamlen, Special to E&P
Offshore opportunities await foreign investors

after Myanmar authorities lifted a local partnership requirement.
By Velda Addison, Associate Online Editor
Based on the number of potential projects

being planned, eight floating LNG (FLNG) orders could be placed
between 2013 and 2017, according to a recently released report.
By Darren Barbee, Hart Energy
Analysts believe the deepwater Gulf of Mexico

discovery could double the resource potential
of the Shenandoah basin to 600 MMbbl of oil.
Cutters on conventional PDC bits shear rock

at the center of a borehole inefficiently at
low velocities ,thereby limiting ROP and
introducing unwanted drilling vibration.

The Stinger conical diamond element is a
unique cutting enhancement at the center of
the bit that significantly increases drilling
efficiency Using a PDC bit with a Stinger
element to drill in the hard and abrasive
formations of the Bakken basin,one
customer increased average HOP 46%.
Tech issues, shale gas could impact

FLNG orders
Anadarkos massive oil find

could bring in billions
Beyond shear-based
cutting performanceUnique, centra l conical
element increases ROP.
READ
TH
LATES E
T
EPmag
.
com
INDUS
TRY
NEWS
Find out more at
slb.com/Stinger
SMITH BITS
Imagination will take you anywhere

Oil and gas has become harder to explore
and recover. From ultra-deep waters to
rernote , ruthless arctic areas , the secret to
successful exploration depends on more
than just technology. Its also about people
who have the talent to turn invention into
breakthrough products and the ability to
form creative, versatile and technically
gifted teams of individuals with the
common goal of growing your business.
OAM
So whether you are a prospective customer

or a potential colleague, this is our promise
and invitation: Talk to us. We are listening,
and we are committed to your success.
\
For more information contact your

local NOV representative or visit:
www.nov .com/rig
parine g
WMi WU
IPA
VISIT THE
INTEGRATED WORLD
OF NOV TECHNOLOGY
o ""Sio
t?e
t0
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Email: rig@nov.com
O ne
Co m pany
. . . Un l Im it e tl
Solu t lons
As I
RHONDA DUEY
SEE IT
Executive Editor
1616 S. VOSS ROAD, STE 1000

HOUSTON, TEXAS 77057
P: +1 713.260.6400 F: +1 713.840.0923
www.EPmag.com
rduey@hartenergy.com
Read more commentary at

RHONDA DUEY
Executive Editor
EPmag.com
JO ANN DAVY
Group Managing Editor
SCOTT WEEDEN
Senior Editor, Drilling
MARK THOMAS
Senior Editor, Offshore

Senior Editor, Production
JENNIFER PRESLEY
Chief Technical Director,

Upstream
RICHARD MASON
MARY HOGAN
Associate Managing Editor
VELDA ADDISON
Associate Online Editor
CODY ZCAN
Assistant Editor
ALEXA SANDERS
Corporate Art Director
LAURA J. WILLIAMS
Senior Graphic Designer

Production Director
JO LYNNE POOL
Reprint & PDF Sales
ERIC MCINTOSH
Director of Business Development
ERIC ROTH
RUSSELL LAAS
Group Publisher
Editorial Advisory Board

CHRIS BARTON
Sr. VP Business Development, Oil & Gas, KBR
KEVIN BRADY
President, Multi Products Company
MIKE FORREST
Exploration Consultant, formerly with Shell
JOHN M. GILMORE JR.

Director of Global Industry Solutions Upstream
Oil & Gas, Invensys Operations Management
CHRIS JOHNSTON
VP & Managing Director, North America, Ensco
ULISSES T. MELLO
Manager, Petroleum & Energy Analytics, IBM
DONALD PAUL
Executive Director, University of
Southern California Energy Institute
EVE SPRUNT
Business Development Manager,
Chevron Energy Technology Co.
MANUEL TERRANOVA
Sr. VP Regional Operations & Global Sales,
Drilling & Production, GE Oil & Gas
RONNIE WITHERSPOON
President,
Superior Well Services, a Nabors company
DENNIS A. YANCHAK
Sr. Geosciences Advisor, Apache Corp.
HARTS
ERGY
Editorial Director
PEGGY WILLIAMS
President & Chief Operating Officer

KEVIN F. HIGGINS
Chief Executive Officer
RICHARD A. EICHLER
Golf, anyone?
Water will be cleaner and golf courses greener
thanks to water management technology.
his is technology transfer at its finest. Our operator solutions feature

this month focuses on water management, particularly the difficulty in
treating produced and flowback fluid in drilling, fracturing, and production.
But one companys efforts in oil and gas seem to be so successful that it is
taking its concept to a more relaxed venue.
STW Resources Holding Co. has announced that it is implementing
its desalination system at the Ranchland Hills Golf Club near Midland,
Texas, converting 700,000 gal/d of brackish water into rainwater-quality
irrigation water.
Thats right West Texas golfers can enjoy their lush greens and fairways
knowing that they have the oil and gas industry to thank for their little patch
of heaven.
Turns out the golf course sources its water from 550-m (1,800-ft) wells producing from the Santa Rosa aquifer beneath the freshwater aquifer used by
the local municipalities and water well owners. Prior to the desalination
efforts, the course was spending considerable amounts of money on chemicals to prevent the salt from harming the grass.
The system is slightly modified from STWs oilfield application since
salinity is not the primary concern in oil and gas fields. Oilfield applications
are applied to produced and flowback water and are designed to remove contaminants from the fluid stream. But a simple modification to the system at
Ranchland Hills means that some minerals have to be added back in to keep
the purified water from being too corrosive.
Not surprisingly, STW is looking to expand its nonoilfield capabilities to
work on a large scale for cities and industries. Stanley Weiner, CEO, said in
a press release that the company is in negotiations with certain municipalities. We believe that the STW system can operate at a per-gallon cost that is
comparable to the cost that most municipalities are currently being charged,
he said.
With so much hue and cry about fracturing operations and the potential
impact on freshwater aquifers, it is heartening to see
things go the other way to see the strides that are
being made in water management in the oil patch
test their usefulness in different industries with the
same basic problems.
7
industry
PULSE
Legal implications
of an independent Scotland
The countrys independence could result in a host of issues facing the offshore oil
and gas industry.
Pieter Bekker and Penelope Warne,
Steptoe and Johnson
reparations are under way for a referendum on independence for Scotland to be held in late 2014. The
legal implications for the UK oil and gas industry of an
independent Scotland can be expected to take center
stage in the debate. The prospect of an independent
Scotland raises a whole range of complex and unprecedented legal issues, both domestically and internationally.
Domestic legal implications

Regardless of whether one views the ultimate outcome of
independence as positive or negative, it is inevitable that
independence would lead to a period of uncertainty until
the regulatory regime applicable in Scotland became
clear. A vote for independence would trigger the negotiation of an independence statute or treaty. To avoid a legal
vacuum, in previous cases the independence statute has
provided that, with exceptions, all Westminster legislation
in force immediately before independence should continue in force unless and until repealed by the legislature
of the newly independent state. The UK Petroleum Act of
1998 and licenses issued under it would therefore be likely
to continue to apply unless and until the Scottish government chose to alter them. However, particular issues
would arise regarding the transfer of rights and obligations in relation to those licenses (and in particular, producing fields) that straddled any putative delimitation line
between the UK and a new Scottish state.
For those cross-border fields a new treaty would be
required between the UK and Scotland similar to the
existing UK/ Norway treaty addressing issues such
as jurisdiction, consenting, HSE standards, and decommissioning. A double taxation treaty between the two
nations would also be required. While these were being
negotiated, investment in cross-border fields would
likely be inhibited.
A new Scottish administration would presumably
not wish to unsettle the industry by making precipitate
changes to regulation; indeed, Scottish National Party
(SNP) ministers have stated that no changes in the fiscal
8
If Scotland gains its independence in 2014, the move could

have significant impacts on the offshore industry.
regime would be made without consultation. However,

given statements from SNP ministers about the significance and potential of the oil and gas industry for the
Scottish economy, a new Scottish government might in
due course seek to increase obligations on operators
though license terms or the tax system. Any uncertainty
as to future policy in this area could have a significant
chilling effect on investment.
Critical in this respect would be clarity with respect to
tax relief on decommissioning of infrastructure. A twoyear consultation process between industry and government leaders is due to culminate in the introduction of a
finance bill addressing the necessary legislative changes
to allow the UK government to issue decommissioning
relief deeds and provide certainty on tax relief. However,
many of the more expensive installations to be decommissioned in future years are in the Scottish sector. The SNP
has indicated that it supports this project and would
honor the deeds, but this would be subject to the negotiation of an agreement with Westminster regarding the
sharing of the liability. A successful outcome to this negotiation would be critical to avoid a return to pretax security (which in turn could trigger defaults under security
agreements) and possibly premature decommissioning.
May 2013 | EPmag.com
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industry
PULSE
One urgent task for an incoming administration would

be to replicate the various UK regulatory bodies, such as
the Department of Energy and Climate Control and the
Health and Safety Executive, which likely would require
significant additional recruitment. Recruitment is a challenge for these regulators today given that they compete
for staff with a high-paying industry. There would be the
potential for a significant chilling effect as a new administration struggled to find the staff to address matters such
as license applications, transfers, drilling consents, safety
cases, and the like.
tions. Scotland would have to apply for membership in

such bodies, similar to the situation that South Sudan
faced after it seceded from the Republic of the Sudan
following an independence referendum in January 2011.
Scottish independence would affect the status of the
nearly 14,000 treaties, multilateral and bilateral, currently
in force for the UK, including Scotland. In accordance
with the rule of nontransmissibility and similar to South
Sudan, an independent Scotland would not automatically
be a party to such treaties except if they define boundaries
or contain rules that are generally accepted as declaratory
of general international law (such rules would continue to
bind a new Scottish state). As regards offshore oil and gas
production, the rule of nontransmissibility raises particular issues under the UN Convention on the Law of the Sea
and the Convention for the Protection of the Marine Environment of the Northeast Atlantic, both of which address
liabilities arising from decommissioning of offshore installations and the maintenance of pipelines.
Where to draw the boundaries?
Depending on the boundaries that are agreed upon if Scotland

becomes independent, some operations might straddle those
boundaries. (Image courtesy of BP)
International law implications

The prospect of Scottish independence also raises a wide
variety of international law issues. The international community can be expected to treat the remainder of the UK
as succeeding to the UKs treaty rights and obligations,
including the constituent treaties of international organizations of which the UK is a member. The question of
Scottish membership of such organizations is primarily
governed by the rules concerning acquisition of membership and any other relevant rules of the organization concerned. As regards EU membership, Scottish secession
from the UK, which is an EU member state, would trigger
an unprecedented situation one that is not expressly
foreseen within the EU legal framework. As a result, the
procedure for Scottish accession to the EU could be cumbersome. The rest of the UK can be expected to remain
a member of the United Nations and its 16 specialized
agencies including the international financial institu10
An independent Scotland would need to agree to its

boundaries with the rest of the UK in accordance with
international law. Any boundary treaties in force for the
UK would bind an independent Scotland. An independent
Scottish government and Westminster can be expected to
advance competing maritime claims affecting licensed
areas in the North Sea, while the western boundary would
present its own complexities. If the Orkney Islands or the
Shetland Islands did not join an independent Scotland,
the resulting situation would greatly complicate the postindependence boundaries.
Assuming an independent Scotland and Westminster
would consent to having the International Court of Justice (ICJ) decide the course of their disputed boundary,
ICJ boundary cases have taken at least three, and sometimes more than 10, years to conclude resulting in
uncertainty in the intervening period. In drawing the
Anglo-Scottish maritime boundary based on international
law, a competent court or tribunal is likely to apply the
equidistance method, which if strictly applied would
result in a line that cuts through licensed areas and favors
Westminster in the North Sea given the geographical configuration of the relevant coast. While Edinburgh and
Westminster could, alternatively, agree to create a joint
development zone or international unitization in the
North Sea as the UK and Norway have done, it is not certain that an arrangement that is workable and sufficient
to convince existing investors not to abandon their blocks
is feasible in the Anglo-Scottish case.
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Growing grounds
for optimism in UK waters
With the UK offshore sector set for a period of record investment, one of the countrys leading
oil industry figures says optimism remains strong for the industry going forward, both in its
home waters and abroad.
Mark Thomas, Senior Editor, Offshore
ccording to the oil and gas industrys representative

body Oil & Gas UK in its latest annual survey,
nearly US $150 billion is embedded in operators
plans for exploration, development, and production
projects on the UK Continental Shelf (UKCS).
As the highest forecast investment level for more than
30 years, this is largely due to the industry responding to
recent growth-focused tax changes by the government,
with nearly $20 billion forecast to be spent this year alone.
Malcolm Webb, the CEO of Oil & Gas UK, is currently
acting as chairman of the biennial SPE Offshore Europe
2013 conference and exhibition in Aberdeen, Scotland,
due to take place in September.
Webb, a lawyer by profession, has been involved in the

UK sector since the 1970s when he worked at Burmah
Oil, later holding roles for the British National Oil
Corp., Charterhouse Petroleum, and PetroFina before
joining Oil & Gas UK in 2004. As a result, he has seen
both good and bad times in the North Sea and further
afield, but right now he is in a positive mood.
Challenges
Im definitely more optimistic now, Webb said. We
have a range of challenges in front of us the discoveries are getting smaller, the water is getting deeper, and
the reservoirs are getting more complex.
But at the same time the UK government understands the situation and has recently given us certainty
over the treatment of decommissioning assets. It has put
in place allowances that give incentives for people and
companies to invest here.
He highlighted recent major projects that have been
given the go-ahead by operators and approved by the
UK authorities, such as Statoils Mariner field in the UK
sector. This heavy oil field will see an estimated $7 billion invested and is the sectors largest offshore development in more than a decade.
$7 billion Mariner project
Malcolm Webb serves as CEO of Oil & Gas UK. (Image courtesy
of Oil & Gas UK)
12
Mariner was discovered in 1982, but production was

delayed due to technical challenges in extracting the
heavy oil. It also was delayed due to Statoils decision to
suspend activity two years ago when the UK government,
without warning, suddenly raised supplementary
charges in 2011 with a windfall tax. The operator only
restarted progress after an industry uproar (from entities including Oil & Gas UK) quickly led politicians to
rethink their plans and offer tax breaks such as the Ring
Fence Expenditure Supplement for marginal fields.
The government does now get it, Webb said. They
are with us, and they understand the importance of the
product. Oil and gas supplies around three quarters of
the energy that this country uses, and the DECC [Department of Energy and Climate Control] says it will stay
higher than 70% until into the 2040s.
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He also praised the governments groundbreaking

commitment to provide certainty on decommissioning
tax relief, which has now prompted global companies and
independent businesses to take a fresh look at the UK offshore sector as an investment destination. This already has
resulted in a new wave of investment. It is crucial that we
sustain this momentum in the years ahead, he said.
Webb added that there must be a national imperative
to maximize production and that the industry has
responded already. We think we are going to see a
growth in production. But we are still leaving more oil in
place than we produce, so that is an issue that continues
to require continued attention.
tant future ahead of it, with planned projects we

already know about spanning the next 50 years.
According to Oil & Gas UKs survey of its 40-plus members, those projects include eight lying west of Shetland,
23 in the central North Sea, 13 in the northern North
Sea, and six in the southern North Sea or Irish Sea.
These potential new developments comprise 2.9 Bboe
of recoverable reserves.
However, great opportunities also bring great challenges, with the Offshore Europe conference sessions set
to embrace commercial, employment, operational, safety,
and environmental aspects as well as the policy and regulatory framework in which the industry operates. This
will be the definitive event for our industry as it moves
through the 21st century, Webb said.
The energy mix
Statoils $7 billion Mariner development got the go-ahead earlier

this year, heralding a new period of record investment for the UK
offshore sector, where nearly $20 billion is forecast to be spent
this year alone. (Image courtesy of Statoil)
Offshore Europe
That brought Webb on to the Offshore Europe conference. The show, which will mark its 40th anniversary this
year, is now recognized as a global platform for the
upstream industry and is much changed from its early
North Sea-focused roots.
We have leading speakers from within the industry,
the government, and other stakeholders, and we are very
much looking ahead, which is why the overall theme is
the next 50 years. Its extremely significant that the
UKCS will see a record capital spend this year. The
industry is very much alive.
He described the strong resurgence in activity as
clear evidence that the offshore industry has an impor14
Subjects covered by various panel sessions include the

role of oil and gas in the future energy mix, North Sea
drilling and industry progress since Macondo, technology, and decommissioning. The energy mix session will
be particularly wide-ranging, covering the global energy
outlook, the future of transport fuels, the unconventional
gas revolution in the US, and a look forward at unconventionals in Europe. It also will address the role of technology and partnerships in the future of the European
offshore oil and gas industry.
The session on Macondo will review the reactive and
regulatory initiatives that have emerged since the tragic
incident in 2010. The oil and gas industry in the US,
UK, and around the world has carried out a significant
number of investigations, reviews, and initiatives to
address findings from the incident and prevent any
future recurrences of this scale and nature. Webb
pointed out how the preventive initiatives taken by
companies, cross-industry bodies, and regulators have
resulted in the development of high-quality operational
guidelines and procedures.
We are seeking to raise the profile of the industry
and the event as a whole. Several surveys have consistently shown that the public thinks the UK now imports
the majority of its energy. We need to correct that perception, he added. We have an internationally
renowned supply-chain spread right across the UK
there are more than 30,000 jobs offshore but around
440,000 in the support infrastructure. If our supply
chain is going to prosper, it has to compete and perform
against the best in the world. The UK has an outstanding reputation as a global center of excellence, with a
leadership role in areas such as subsea, and this will be
evident at the event.
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When you think of petroleum engineering and petroleum geology programs, th
University of Oklahoma's Mewbourne College of Earth & Energy might be the fi
college that comes to mind,and it should be.
e forefront of the horizontal shale revolution since the

Barnett Shale
firstcollege to establish a frontier shale research laboratory
s our students on the dual-beam scanning electron microscope

where the classroom meets the shales
graduated more petroleum engineers and petroleum geologists
n any other college in the world,over 10,000 and counting
rusted partner of the oil and gas industry for the past 100 years and a tecnnoiogy wager tor the ruture
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DID YOU KNOW

PERMITTING some
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For non-routine high-risk activities such
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permit to work is a must have.
Before starting any non-routine, highrisk work, its always wise to perform a
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to eliminate or mitigate identified
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should workers begin. And of course,
if those assigned to the task dont
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to] 0
II
management
REPORT
Knowledge layer is
next big innovation
The upstream industry is losing knowledge every day. A new approach helps operators
capture knowledge and build adaptive advisory systems.
Michael Studner, Myrconn Solutions
pstream oil and gas operators are increasingly challenged to maintain the appropriate level of technical
expertise to operate their assets in an optimized way. Seasoned engineers retire or change positions or employer.
As routine work has gotten mostly replaced by computers,
the human input into processes is getting more and more
complex. Hence, losing people means losing knowledge.
The industrys proprietary technical and business software applications enable neither knowledge capture nor
ownership and intellectual property over the operators
workflow solutions. Organizations still struggle to come up
with a software landscape that enables the effective processing of cross workflows that go beyond the borders of a
department or a technical discipline. This landscape of
isolated software silos impedes scalable system integration;
thus information technology departments struggle to
implement service-oriented architecture.
Nevertheless, well and reservoir surveillance software
solutions able to detect unfavorable operational settings
and identify underperforming wells are available on the
market. But to improve decision-making in asset operations, expert or advisory systems representing industry
and operators best practices are needed.
Improved decision-making in asset operations

Operations in oil and gas fields are typically driven by the
objective to maximize ultimate recovery or the recovery to
a certain date. Production losses mean that a significant
amount of money is left on the table. Hence, deferred
production or underperformance must be detected as
soon as possible after occurrence (or ideally even before
either occurs). An activity needs to be initiated immediately to reduce the amount of lost production or to avoid
any losses at all.
With regard to producing hydrocarbons in an optimized fashion, there are four main steps in related decision-making processes:
Free to focus: Data screening (e.g. pattern recognition
enabled by special visualization and data mining) is used
to identify symptoms that indicate that asset performance
EPmag.com | May 2013
FIGURE 1. The adaptive advisory system captures knowledge

from experts and experiences to provide a framework for an
intensive knowledge exchange. (Images courtesy of Myrconn
Solutions)
is not as good as expected. Patterns among wells are

detected to identify similar behavior and reduce the complexity of the screening problem from several hundred
sensors to a few categories of similar measurement types.
Truly understand the challenge: Petrotechnical analysis
methods (e.g. sensitivity analysis on numerical or analytical models) are applied to identify the root cause of why
the performance is below expectation. The objective is to
identify the constraint, such as whether the liquid production is limited by reservoir deliverability, well production
potential, or facility processing limits. Due to the ambiguity of some of the symptoms as identified in the first step,
the outcome of this step will be probabilistic, indicating
most likely causes but also possible alternative causes.
Improve decisions: Based on a definition of utility (e.g.
maximize production, minimize losses, increase net present value, reduce lost time, etc.) decisions are suggested to
solve the problems as identified in the first two steps. Previous experience from the same reservoir, similar situations in other reservoirs, or information from case studies
are the sources needed to select the most promising
action with regard to the utility given the constraint as
17
management
REPORT
FIGURE 2. A Bayesian analysis factors
in many datapoints to determine the
most likely cause for declining pump
performance.
identified above. A definite selection will not be possible in this

step. Therefore, the suggestion
will be of probabilistic nature.
Increase knowledge: The impact
of the actions resulting from the
decisions in the third step is analyzed and verified. Did the action yield
the expected results, or is the performance different from what is expected? The
discrepancy between the expectation and the
actual observation is the learning opportunity,
which needs to be recorded, explained, and finally
generalized to clearly identify whether or not this particular piece of information is applicable to a single situation,
the whole field, or the whole company. The gained knowledge is stored and updated in the knowledge layer for
future application.
The adaptive advisory system

There is a business need to detect events such as severe
underperformance in the asset and to react properly and
in as timely a fashion as possible to keep production up to
target. When combined with the incomplete and uncertain information available from the sensors in the facilities
and wells, this can lead to the fact that operations are very
often cases of firefighting and rushing from one event to
the next.
Actions are usually taken reactively after a certain event
has been observed. Moreover, the actions that are considered after a certain event has been detected often are not
based on the full amount of technical expertise available
to an oil and gas producing organization at a current time
but rather on typical approaches and rules of thumb that
have been around in an organization for ages.
The standardization of processes, common performance metrics, reporting, and documentation is hardly ever
in place. Hence, it becomes difficult for an organization
to monitor and support its producing assets and almost
impossible for it to efficiently share information from
one organizational unit to the next.
The adaptive advisory system is designed for an intensive interaction. It captures knowledge from experts and
experiences and at the same time provides a framework
for an intensive knowledge exchange of engineers,
experts, and managers (Figure 1). It facilitates the asset
team in decision-making processes and helps to file
knowledge in a way that makes it accessible in future
times as well as to other units.
18
Investigating the root cause of events

involves further analysis of the available
evidence and possibly the request of
additional evidence. The outcome of
the root cause investigation is a definition of the problem that has occurred in the asset. Therefore, it is a very analytical step where the user is requested
to interact with the system and the data to confirm and
investigate the root causes that led to the event.
A Bayesian network-based expert system

To set up a problem classification advisory system, the
expert system can either be trained using historical event
data or, where no sufficient historical data are available,
the network structures and according probabilities can be
determined by experts.
An example of root cause identification using a
Bayesian network is displayed in Figure 2. The most
likely root cause for declining pump performance is
determined based on the Bayesian network taking into
account the observations and real-time measurements.
The observations can be independent (e.g. pump age
and reservoir pressure) but also can be linked by a causal
relationship (e.g. wellhead pressure and production
rates). The example shows that given the information
about the pump, reservoir, and fluid and measuring
dropping liquid rates and wellhead pressures, the most
likely cause is gas ingestion. However, mechanical problems and possible excessive pump wear (e.g. due to sand
in the pump) should not be entirely excluded.
The added value

The knowledge layer approach helps operators overcome
the dilemma of permanently losing knowledge by capturing it and building adaptive advisory systems. True added
value is gained when a knowledge layer is incorporated
in collaboration portals and business process management systems. Decisions will be continuously improved,
and the advisory systems become increasingly more solid
with a growing knowledge base.
References available.
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OIL FIELD
Unconventionals require
nontraditional workflows
Subtle heterogeneities in unconventional plays require the use of rigorous processing,
imaging, inversion, interpretation, and reservoir modeling.
Bruno de Ribet, Paradigm
hen compared to conventional plays, unconventional resources were traditionally seen as

uneconomic since they require some sort of artificial
stimulation (such as hydraulic fracturing) or lift (steam
induction) to sufficiently increase the mobility of the
hydrocarbon fluids. But with the advent of higher fuel
prices and technological advances, many of these plays
are now economic.
The greatest expansion of unconventional play activity
has occurred within the US in the Barnett, Eagle Ford,
and Bakken plays. Huge oil reserve figures have been
quoted for those plays, which could total up to 30 Bbbl.
These forecasts have attracted not only US energy companies but also international and multinational companies.
Brittle reservoirs
Both the Barnett and Eagle Ford reservoirs have a
propensity for brittleness, which can make them
susceptible to fracturing. It should thus be no surprise
that the industry has focused on predicting areas of
potentially increased permeability due to the presence
of natural fracturing that may then be enhanced with
hydraulic fracturing.
The current methodology is to identify these sweet
spots and optimize production with intense horizontal
drilling and hydraulic fracturing. Wells and sometimes
conventional seismic are commonly used when predicting rock properties to determine the trend of
maximum stress and then define the wellbore
path to facilitate hydraulic fracturing. Some
companies also are acquiring microseismic data
at their wellbores for more direct measurements
of anisotropic rock properties, while others are
mostly identifying zones of increased brittleness
to drill in between existing wells. In the Barnett
shale, for example, the net result for these workflows has been commonly reported as 80% of
the production from 30% of the completions.
Reservoir complexity
FIGURE 1. A full-azimuth seismic-driven reservoir characterization was performed from a full-azimuth acquisition in the Eagle Ford shale. (Data in
upper left image courtesy of Seitel; images courtesy of Paradigm)
20
Why do 70% of the completions fail to significantly contribute to production? First, the wellbore may not be optimally positioned at an
appropriate angle to regional stresses. This may
be a result of inaccurate rock property calculation and mapping or complex structural fabric
overprinted by several regional events. Additionally, the structures of interest fractures and
small faults or facies changes are sub-seismic
and cannot be delineated from conventional
seismic using conventional processing. Finally,
in the case where only wells are used for delineation, the underlying assumption is that rock
property information can be carried between
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OIL FIELD
the wells. The problem with looking at an extensive

shale formation and pursuing a simple infill program
is that these reservoirs are not isotropic or homogenous.
The actual reservoirs, like in the Eagle Ford, can be
the result of drastic facies changes, and the rock properties are complex. To create models that are accurate
and successfully predictive, a more rigorous approach
is required.
Reservoir characterization
Enhanced-performance technology and tools designed
to facilitate accurate reservoir characterization have
recently become available. These provide solutions
for unconventional play types with an integrated and
multidomain approach across the entire workflow, from
full-azimuth processing and imaging to reservoir engineering, to reduce uncertainties in the decision-making,
planning, drilling, and completion process.
Despite the challenge of vertical resolution, conventional seismic data offer valuable information regarding
lithology, fluid content, and in situ stress events. For the
accurate extraction of rock properties from seismic data
without azimuthal biasing, a new full-azimuth angle
domain imaging and analysis technology has been
designed to deliver unsectored data for subsurface
velocities, structural attributes, rock and fluid properties, and reservoir characteristics. As this process provides in situ recovery of continuous azimuth and angle
prestack data in depth, additional information from
both modern and legacy seismic data (especially wideand rich-azimuth data with long offsets) is produced. In
low-permeability and fracture system plays this technology, with its solutions for anisotropic tomography, provides stress and fracture detection for accurate reservoir
characterization correlating to shale properties.
In a case study of the Eagle Ford formation fullazimuth reflection angle gathers for a 36 opening angle
are shown in Figure 1. The accompanying minimumstress fracture orientation map with measured intensity
overlies the most apparent brittle zones shown in rainbow colors. To map the spatial distribution of the estimated highest brittleness material (vs. ductile), the
derived seismic attributes, Poissons ratio, and Youngs
modulus were calculated from a simultaneous inversion
and analyzed through advanced cross-plotting for geobody detection and mapping.
Interpreting seismic attributes through enhanced visualization, such as advanced merge methods or opacity, layering, and interactive cross-plot techniques, provides a
more precise reservoir characterization, enhancing predictions of the spatial conditions of trapping systems and
22
the distribution of subsurface lithology and reservoir

properties. New, highly parallelized compute power capabilities provided by graphics processing units to perform
computations traditionally handled by central processing
unit power were first adapted for improved visualization.
They also can be used for on-the-fly calculations to extract
post-stack information such as frequency-dependent
attributes that can efficiently contribute to an interpretation workflow. With proper calibration to in situ conditions observed at the wells, trends can be identified and
mapped for sweet spot determination.
FIGURE 2. A seismic facies map paired with curvature attributes

highlights the heterogeneities of the shale and suggests areas
of possible increased fracturing within the Eagle Ford reservoir.
Information from log evaluation can be used to automatically calculate a predictive model directly or can be
combined with the structural interpretation for a more
integrated approach.
Unconventional plays have poor reservoir properties
and are difficult to interpret with seismic data. This may
be due to the negligible acoustic impedance contrast;
the presence of gas, which degrades compressional wave
imaging; or multiple stress episodes. The challenge is
even more complex in the presence of faults reactivated
after the time of deposition. A proportional reservoir top
and base slice extraction is certainly the best approach for
understanding the seismic stratigraphy if the depositional
sequence is not complicated by progradation or tectonic
events within the interpreted seismic zone. If there is
faulting or any internal variation of the sediment depositional sequence, however, this approach will lead to an
erroneous geologic interpretation.
digital
OIL FIELD
To avoid such bias, the interpretation should be

validated in the paleogeographic (geochronological)
sense at the time of deposition with a change of reference from X, Y, and Z to U, V, and T, where T is the geologic time and U and V are the paleo-coordinates. This
transform enables flattening in the UVT space of both
the interpretation and seismic data and helps the interpreter understand the relationship between geological
events and validate the structural interpretation.
Through waveform seismic facies classification, seismic data can reveal the extreme heterogeneity that characterizes unconventional reservoirs. This technique
leads to an understanding of the seismic response variability within the reservoir. The correlation at the well
location helps illustrate the relationship between local
and large-scale homogeneous patterns to reveal heterogeneities distribution (Figure 2).
The combination of interpretation, characterization,
and reservoir modeling leads to better control of drilling
risk. By integrating all the information in a 3-D canvas,
potential hazards can be identified and mitigated. Using

automated fault-enhanced extraction, the interpreter can
extract lineaments along horizontal and vertical slices at
the discontinuities (along fault planes) and link them
into fault planes. The ability to investigate both the lineaments and the discontinuities associated with them can
provide insight into potential zones of enhanced fracturing/permeability vs. areas of permeability boundaries.
Producing hydrocarbons economically from low-permeability unconventional plays drives the need for well
path and engineering design optimization at every stage
of the planning and drilling process. The subtle nature
of fracturing and facies changes in unconventional plays
requires the use of rigorous full-azimuth seismic processing, imaging, inversion, interpretation, and reservoir
modeling. Designing wells within a 3-D structural model
that integrates all relevant features can shorten wellplanning cycle times, improve well placement, and
reduce drilling risk while facilitating the decision-making process.
EP H NERG -4-
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23
digital
OIL FIELD
Bringing transportation management

to the oil and gas industry
Demand for domestic drilling services drives need for smarter fleet management.
Monica Truelsch, TMW Systems
he combination of horizontal drilling and hydraulic

fracturing technology has put the US on track to
become a top energy producer.
Industry estimates have each new well requiring 1,000
or more truck trips to transport materials like gravel and
pipe, equipment, and water and to haul off wastewater,
among other services. A recent study by the New York
State Department of Environmental Conservation estimated between 5,850 and 8,905 upstream truck trips were
needed for a multiwell pad based on two rigs and equipment deliveries for eight wells.
Energy development activity in the US and Canada has
been a shot in the arm for the trucking industry, powering
a recent boom in truck sales many now with automatic
transmissions and attendant growth in well service fleets
along with increased demand for more general commercial trucking services.
Unusual driver demands

Transporting fuel, pipe, drilling equipment, sand, water,
and other materials to and from a well site is a small fraction of total preproduction costs but generates an outsized
number of business transactions in the process. Rapid
fleet expansion and increased trucking activity in general
are overwhelming the system capabilities of many firms to
stay on top of wellsite demands and fleet resource allocation, not to mention billing.
A business with 20 to 25 trucks may now be expanding
fleet size to 200 trucks or more in less than a year, only to
find that its manual business procedures have been unable
to scale. Hiring more office workers to manage paper job
tickets and invoice production is the common response,
but the opportunities for error increase with the volume
of orders handled manually.
Both preproduction and post-production wellsite operations present logistics and scheduling challenges for transportation providers and their drivers.
In addition to logging their arrival and departure times,
drivers record trailer tank levels on field tickets. Levels are
measured using dipsticks before and after loading crude
24
The surge in domestic energy production has created new

opportunities for carriers like Prop Logistics out of Newell,
W.Va. (Image courtesy of TMW)
oil. With any delay in routing paperwork, oil may be delivered to a pipeline or refinery before customers even get
quantity data.
When loading condensate at gas wells, drivers must further check wind direction, open collection tanks, and use
specialized equipment to collect samples and conduct
analyses for specific gravity and water content that also is
captured on job tickets.
Environmental compliance is another record-keeping
concern, especially with regard to the disposal of wastewater. The importance that oil companies put on tracking
safety ratings for drivers and for-hire carriers adds additional reporting burdens on service providers.
Paper job or field run tickets are the primary means to
track service hours and details, but their handling or mishandling is one of the major causes of inaccurate or
delayed billing and customer invoice disputes.
Technology fills the information void

Transportation management systems (TMS) are designed
to make complex logistics challenges simpler. Some are
true business operations systems, integrating fleet management and visibility with customer service and billing to
cover the entire quote-to-cash business process.
TMWSuite is a TMS that can increase productivity
from fleet assets and lead to faster service response time to
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Designed to replace manual, paper-based processes in busy fleet

operations, a TMS can drive faster business transactions with the
ability to integrate global positioning systems (GPS); in-cab wireless communications; and smart, digital form management. The
TMS can manage location, service, and billing data for each customer and well site, which can simplify communications between
dispatch and the driver and lead to the accurate completion of
site services and the timely generation and review of invoices.
Vehicle tracking and mobile wireless communications systems
such as those from PeopleNet Communications Corp. play a
key part in fleet management and streamlining business when
used with a TMS.
The level of automation possible with in-cab devices that have
the processing power of small computers can transform the way
an oil and gas supplier does business. Using a tracking system
integrated with a TMS, for instance, a driver arriving at an oil
lease will be presented with the form for the specific service
needed. This service requirement can be automatically identified by the GPS coordinates of the trucks location matched
against the TMS data, which can hold coordinates for thousands of well sites as well as service order requirements. Data
entry for the driver is kept to the barest minimum because the
form pulls any needed location ID and other ticket information
about the site from the TMS system wirelessly.
The driver fills in beginning and ending dipstick readings.
The tracking system, available with an optional mobile printer,
spits out receipts for the driver to give to the lease operator. At
the same time, all of the necessary billing information is transmitted wirelessly to the home office where the TMS generates
invoices and the load quantity and quality data before the
product reaches the pipeline.
The system records delivery details in a similar fashion. As
part of the process, carriers that haul wastewater can automatically track delivery details for environmental reporting compliance. Another benefit for energy companies from such an
integrated TMS is the automated reporting and tracking of
accurate safety data.
When a delivery or pickup is complete, the in-cab tracking system also can help guide the driver to the next stop with navigation powered by wellsite-specific GPS and directional data from
services such as RigData.
Oil and gas E&P has become increasingly more efficient
and less costly by embracing new technology wherever possible.
Perhaps the next frontier for technology transformation will be
the trucking operations that are so necessary to drilling and
production activities. TMS and fleet management technologies
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TECHNOLOGY
Planets align for local symposium

Honoree, speakers, and topic combine to give a kick to the 2013
GSH Spring Symposium.
or the Geophysical Society of Houston (GSH) the

Spring Symposium is the premier technical event of
the year. The GSH organizes and promotes the event to
provide educational and knowledge-sharing opportunities
for its members and the larger geophysical community.
So it is kind of important to get it right.
Since 2007, the GSH has combined its annual technical venue with the opportunity to honor a Houstonbased geophysicist who has made extraordinary
contributions to the society and the science. Were
there a geophysical hall of fame, our honorees would
all be in it, said Glenn Bear, GSH first vice president.
But finding a ringer was not enough to guarantee a
crowd for the two-day event. The organizers also needed
a topic and a robust roster of speakers. And, thanks to a
format change that made the event invitation-only to
speakers, they needed the best experts in the business.
Not surprisingly, this year the committee hit on the hot
topic du jour unconventionals. From there it was an
easy step to honor Peter Duncan, founder and CEO of
MicroSeismic Inc. Duncan has helped pioneer the use of
microseismic techniques in fracture monitoring and is
helping to expand the technology into other areas as well.
With the honoree and topic chosen, it was time to
Microseismic technology has had a rapid uptake due to the

popularity of unconventional plays. (Image courtesy of
RHONDA DUEY
Executive Editor
rduey@hartenergy.com
EPmag.com
invite the speakers. Phil Schultz, first vice president elect,

tapped a colleague at Chevron to suggest the movers
and shakers within the microseismic cosmos. He gave
me a good list to work from, Shultz said. I pared it
down to an A list and contacted everyone on that list.
The result was a two-day program with extremely highlevel talks from people who know their stuff. In fact,
some of that stuff was probably over the heads of traditional geophysicists who have not had much exposure to
microseismic. But the audience stayed until the end.
A change to this years format was to allow a full hour
for each speakers presentation, with plenty of time for
discussion at the end. Schultz said that many respondents indicated that they learned as much during these
discussion periods as they did during the presentations.
Also, the presentations were not intended to be advertisements. I got the impression that, while microseismic
is a great technology that works well in many applications, there are still times that it does not work as well
as one might like, and there are still many mysteries to
be solved.
Our goal here is to make sure that experts in the field
see content that is worth their time and leave with something they didnt know before, Bear said. You will not
attract the experts in any given field if you are having an
introduction to building velocity models or an introduction to microseismic techniques. The technical level
needs to be pretty high.
Once the experts have decided that this is worth their
time, the novices decide theyd better go listen to the
crowd of distinguished speakers
because the experts have
already forgotten more about
microseismic than the
novices know.
MicroSeismic Inc.)
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COMPLETION
Operators see decades-long

promise of unconventional plays
A panel of experts at the DUG Permian conference tackled the
technology needed to advance drilling and completion efforts.
he DUG Permian conference in Fort Worth April 2

to 4 drew more than 2,500 attendees, showing just
how hot a topic the Permian basin is. How do you
drill and complete faster, better, and cheaper wells in
the Delaware and Midland basins to tap the Wolfcamp and Cline formations, for example? It is the
same question that is asked in every unconventional
play worldwide.
Drilling efficiencies have reached the point where
improvements are incremental. A panel of industry
experts, however, indicated that there is a lot of room
for improvement in the technology for unconventionals. The panel featured Mark Sunderland, southern
region drilling manager, Anadarko Petroleum Corp.;
Jeff Meisenhelder, vice president, unconventional
resources, Schlumberger; Robin Robinson,
vice president, drilling, US land, Baker Hughes; and
Danny Williams, vice president, Permian drilling and
completions, Pioneer Natural Resources.
We are drilling 14,000-ft [4,267-m] wells in seven
days or less in the Eagle Ford, Sunderland said.
What we are looking for is reliability in making a
lot of hole with existing technology.
Robinson added that the industry will likely see more
pad drilling in the Permian. With pads there are wellspacing issues, which means more complex pads and
bringing in more rotary steerable technology.
More use of drilling pads will drive
further development of rotary steerable systems.
SCOTT WEEDEN
Senior Editor, Drilling
sweeden@hartenergy.com
EPmag.com
Automation of the rig will be one of the salient technologies moving forward, explained Meisenhelder.
By automation I am not really talking about the safety
aspects of it. I am talking about closed-loop feedback
systems that control weight on bit or wellbore location. Ultimately, I think we want to control the whole
downhole environment.
Williams agreed that there would likely be as
many advances in drilling wells. What we are looking
for is a fluid system that will allow us to eliminate
some of the problems we have in our vertical program, which also will impact our horizontal work
program because we drill through the same intervals.
We want to go beyond the standard wash circulation
material, stuckpipe events, and all those challenges.
We are looking for ways to tackle these issues without
just another casing string. That is a breakthrough we
are looking for.
On the completion side, the industry is focusing on
being more efficient and effective. Not just in the Permian but in other areas of the world, a high percentage of perforation clusters do not produce,
Meisenhelder said. This is an issue that can be fixed
with designed engineering solutions, getting to the
point of having 100% of the perforations producing.
Tools have been developed that will let operators
see if the horizontal wellbore is being stimulated effectively, Williams continued. I also agree that steps
need to be taken to drive efficiency so
that we can do fewer clusters with fewer
stages and still achieve the same or
even better production.
31
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OPTIMIZATION
Carnival comes to the presalt

A risk management group invites the industry to work on a standard
for pipelines in extremely deep water.
recent press tour of the Brazilian offshore maritime industry gave participants plenty of opportunities to see the enthusiasm and hear the cautious
optimism of the many companies participating in
the development of the countrys presalt oil and
gas resources.
In addition to the ongoing massive offshore development, the country also is in the throes of a construction effort in preparation for its role as host to
the 2014 FIFA World Cup and the 2016 Summer
Olympics. A comment that I heard often during the
tour was, All eyes will be on Brazil in a few short
years, and we will be ready to shine.
The comment sounded a bit odd since Brazil has
held, in some circles, the worlds attention
for quite some time. The discovery of
presalt resources in the Tupi field
(now the Lula field) in the
Santos basin in 2006,
followed by discoveries
in the Campos basin,
captured that attention.
The rapid-fire pace of
exploration and field
development has kept
industry interested as
it waits to see how the
technical challenges of
production and transportation will be tackled.
In 2012 Petrobras
kicked off a Carnival-esque
parade when the FPSO vessel
Cidade de Anchieta, the first of 39
new production units planned for
startup between 2012 and 2020, arrived on
location in the Baleia Azul field. Of those 39 units 25
will start up between 2013 and 2017. The next few
years are going to be very busy for Brazil.
As development efforts samba farther and deeper
into the offshore, it becomes more crucial that operating standards can keep up with the pace. One area of
concern pipeline safety in extremly deep water
prompted DNV to assemble a joint industry project
JENNIFER PRESLEY
Senior Editor, Production
jpresley@hartenergy.com
EPmag.com
(JIP) to capture more knowledge on how pipelines

can safely withstand the pressures of 3,000-m (9,843ft) water depth without prohibitive cost.
In an announcement about the JIP, DNV said that
65% of the worlds offshore pipelines are designed
and installed to its pipeline standard. The JIP
aims to research and explore, with input
from relevant companies throughout a
variety of industries, the optimal balance between feasibility, safety,
and cost.
We are in the phase where
the objectives are clear and
the systematics are in place,
but we want to capture more
knowledge and experience,
Ana Paula Franca de Souza,
manager of the JIP, said on
behalf of DNV.
According to a press
release, the JIP is immediately
relevant for the extreme conditions facing the industry in Brazils
presalt fields, and advances in optimization of pipelines will be welcomed
throughout the industry.
From this joint industry project the recommendations and possible updates to the standard will have
far-reaching consequences, so we welcome broad
industry participation, de Souza said.
Everyone loves a good parade, and the
one marching on in the
presalt will be interesting
to watch for years to
come.
33
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ADVANCES
Twilight years for a tired fleet

With offshore markets experiencing the biggest wave of newbuild rig
orders in more than 20 years, it also increasingly means the end of the
line for a growing number of legacy rigs.
istening to a panel of experts recently, it was clear

that the robust growth of the modern floating rig
fleet is by no means over. Nearly 190 new floaters are
expected to be delivered between 2008 and year-end
2016, with the demands of deepwater drilling now overwhelmingly favoring modern high-specification units.
Edward Muztafag of Societe Generale, speaking at
Quest Offshores MCE Deepwater Development event in
The Netherlands, posed the question, Does the industry need more newbuild high-specification floaters? We
believe the answer is yes, possibly 50 to 70 more over the
next 10 years but at a more steady and protracted pace.
New drillships will have improved capabilities over earlier

models such as the West Gemini. (Image courtesy of Seadrill)
Identified deepwater drilling and completion demand

still appears to exceed available floating rig capacity by
35 to 50 rigs through year-end 2016, he added.
There is no doubt that operator preference has
shifted firmly to new generation high-specification rigs
post-Macondo, with these new dynamically positioned
floaters comprising half of the activity worldwide today
compared to 20% in 2008.
The knock-on effect is that older generation (legacy)
rigs are simply falling out of favor with operators.
Muztafag said that a significant number of legacy
floaters (second- and third-generation) were cold- or
warm-stacked following Macondo, and virtually none
MARK THOMAS
Senior Editor, Offshore
mthomas@hartenergy.com
EPmag.com
of the cold-stacked legacy rigs have found work in the

last two years despite the strong increase in deepwater
drilling demand.
Numerous third- and fourth-generation rigs, meanwhile, are undergoing significant modifications in an
attempt to make them more competitive with newer
units. The outlook for legacy rigs and some early
fourth-generation units is likely facing declining work
prospects in the coming years, he said.
With the average retirement age of floating rigs typically around 30 years, that means that nearly 76 units
comprising 30% of the actively marketed floating rig
fleet are now in their sunset days. A further 15% of
actively marketed floaters are between 20 and 30 years
old, and most can be viewed as near-legacy in the next
five years.
A retooling cycle is likely to occur at a more tempered pace than the flurries of orders since the mid2000s, but with nearly 45% of the floating rig fleet up
for possible retirement in the next 10 years, we expect
an extended cycle, Muztafag said.
With the continued growth in global exploration
drilling activity and with operators continuing to
favor high-specification rigs as much of the activity
extends into water depths beyond 1,220 m (4,000
ft), this shift only places the older legacy units and
some of the fourth-generation rigs at a further significant disadvantage.
It has been a good run, but time
appears to very suddenly be up for the
majority of the offshore industrys
aging floating rig workhorses.
35
COVER STORY: DEEPWATER

CHALLENGES & SOLUTIONS

Majors drive search for solutions to
Deepwater represents the future for the offshore sector a fact that
has been known for a decade or more. Every step taken further into
the deep reveals new challenges and increased risks, but the majors
leading the way appear to be singing from the same hymn sheet.
pstream megaprojects are always risky endeavors,

whether they are onshore or in shallow water.
The fact that the average success rate for these projects
in terms of sticking to a budget is only around 22%
is evidence of that.
But frontier deepwater and ultra-deepwater developments typically carry inherently more technical risks in
addition to what are commonly already very complex
nontechnical risks. Managing large projects successfully
in deeper and usually more remote waters around the
world with more challenges and larger risks means that
oil companies must constantly reassess their methods as
well as their openness to additional proactive measures
and techniques. Companies also must exercise continuous rigor in terms of specifications and controls.
Most of all, it still appears that there comes a point
when a pioneering operator needs boldness without
being reckless when making the decision to innovate.
That drive for creativity is constant since complex challenges remain to be faced in the greater, colder water
depths that are encountered. It is not only water depth
36
that is the problem; the issue of ever more difficult fluids (such as those that are HP/HT, high-viscosity, lowAPI, and waxy) is having an increasing impact.
Innovation is the key

As always, technological innovation is the key, and a
recent industry event saw deepwater heavyweights Shell,
Total, and Exxon outline their varying but not dissimilar
approaches to developing their respective portfolios.
Like many other oil companies, these three majors
have deepwater projects built into their forward business
plans for at least the next two decades, with global strategies mapped out involving huge levels of investment.
The reason is that an increasing majority of exploration drilling activity is moving firmly into water depths
beyond 1,220 m (4,000 ft). New discoveries also are
increasingly being made in waters beyond that same
depth milestone, with approximately 35% of new finds
currently made beyond that depth, rising from an average figure of 25% in the middle of the last decade. In
2012 alone there were 52 discoveries (a record figure)
37

made in water depths of more than 1,220 m

in 14 different countries (Figure 1).
Forecasts for production reflect the same
rising trend. In 2005 deepwater liquids production made up just 3% of the total global
figure of more than 70 MMboe/d. By 2040
that percentage will have risen to 13% (14
MMboe/d) out of a forecast liquids total of
around 110 MMboe/d, according to ExxonMobils 2013 Energy Outlook.
Matthias Bichsel, Shells projects and technology director, highlighted at Quest Offshores recent MCE Deepwater Development
(MCEDD) event in the Netherlands that in
the golden triangle of Brazil, the Gulf of
FIGURE 1. The year 2012 set a record for oil and gas finds made in more than
Mexico (GoM), and Nigeria alone the level
1,220 m of water, with 52 discoveries announced. There have been more than
of total reserves is more than 80 Bboe. It
180 finds announced beyond 1,220 m between 2008 and 2012. (Image courtesy
is the power of innovation in deep water
of Noble Drilling; data courtesy of IHS Petrodata)
that is key. Shell spends more than [US]
$1 billion a year on research and development in all areas, aimed at helping us to find
oil and gas resources and better ways of developing
duction analogs; the need for new technology to address
those resources through wells and facilities, he said.
deeper, higher pressure, and hotter environments; locaHe flagged the Mars project in the GoM, saying the
tion such as remote new basins; and HSE concerns.
company would never have gotten started without new
Nontechnical risks, meanwhile, include highly aware
technology developed for its Deimos field.
stakeholders; resources such as qualified people, integration, and venture setup; contractor capability and
Project complexity
experience; and regulatory and political issues such as
The challenges that lie ahead revolve around the
evolving/new regulation, expectations in new basins,
increasing complexity of projects, Bichsel continued.
and fiscal risks.
Shell is innovating with respect to the use of ROVs to
Rolling Stones
move ocean-bottom sensors from one location to
Shells planned ultra-deepwater FPSO project for its
another. The company is working on using AUVs to do
Stones field in the US GoM was held up as one of four
this task to help reduce costs.
examples where the operators development strategy of
We need to get better at managing costs as an indusaligning stakeholder expectations and project risks has
try, he said. There are things that can help, like rigless
been key.
well intervention we are doing this on our Bonga field
Stones is something of an ultra-deepwater pioneer
[offshore Nigeria] and on our Parque de Conchas projproject for Shell since it will be the companys first to
ect [offshore Brazil].
incorporate an FPSO vessel in the GoM. It also will be
The company also is developing a BOP device for
the deepest production facility in the world at a depth
essentially pinching the wellbore shut if the BOP fails,
of 2,895 m (9,500 ft) and the first disconnectable FPSO
he continued. There also is another solution that cuts
vessel with lazy wave risers in the world. In addition, it
and drops the tubular. All this reflects how vital deep
will have the deepest gas export pipeline worldwide.
water is to the worlds energy needs, he said.
The operator selected a phased approach for the
His colleague, Martijn Dekker, Shells development
field, with a potential second phase to include another
manager for the Stones project in the US GoM, said that
host facility. The operator also will employ wells with
frontier deepwater projects typically carry inherently
artificial lift from multiple Lower Tertiary reservoirs
more technical risks on top of what are commonly
similar to those employed on its groundbreaking
already very complex nontechnical risks.
Perdido field development now producing in the
Examples of technical risks he highlighted include
GoM (another Lower Tertiary field).
issues stemming from geological settings; the lack of pro38
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stakeholder misalignment, he said; therefore, it is a must

to build a framework linking development strategy to
project complexity and schedule drivers at the right time.
Dekker added that development strategy is the terrain of seasoned development experts, and companies
should draw where they can on in-house, partner, and
industry experience and expertise.
Quantum challenges
FIGURE 2. There will be as many subsea trees installed in this

decade alone as there were in the previous four decades.
(Image courtesy of ExxonMobil; data courtesy of Quest Offshore)
According to David Wilkinson, senior subsea systems

consultant for ExxonMobil, the challenges in deepwater
are still increasing. Speaking at MCEDD, he pointed out
the rising number of both large and small subsea developments and the increasing complexity of the required
technologies and execution methods.
Specifically flagging the forecast global subsea trees
market by decade, he highlighted that in the current
decade (from 2010 onward) there will be more trees
installed than in the whole of the previous four decades
combined (Figure 2).
The quantum challenges, as he termed them,
included dealing with large greenfield projects; increasing brownfield projects; and an increasing base to be
supported for the life of the field with services including
facility modifications and well intervention; abandonment and decommissioning; and inspection, maintenance, and repair.
He also outlined specific technology and execution
challenges related to increasing equipment and installation demands, including HP/HT up to 20,000 psi and
204C (400F); more difficult fluids and poorer rock
properties; more challenging seabed and metocean
environments; large-bore equipment for high-rate gas
wells; longer field lives; and long-distance tiebacks and
depths beyond 3,000 m (9,843 ft).
Water depth gap cycle

FIGURE 3. The gap between drilling and production technologies in
deep water has never been closer. (Image courtesy of ExxonMobil)
According to Dekker, the development strategy for

such fields is key in aligning the technical and nontechnical risks, and getting the strategy into the early framing
and shaping phase of a project is critical. To do so, development strategy needs to be considered during the feasibility phase when there is sufficient understanding of the
opportunity but while it can still influence appraisal. In
addition, development strategy needs to be selected early
in the concept selection phase.
A lack of a clearly defined and agreed approach to the
strategy and selection will lead to internal and external
40
According to Wilkinson, for several decades there has

been a water-depth gap cycle between the drilling and
production sectors (Figure 3). Production technology
is, however, now probably as close as it has ever been to
drilling technology. We are going down now toward
4,500 m (14,765 ft) water depth. Thats the kind of
acreage the industry is now looking at, he said.
Execution also is becoming increasingly complex,
Wilkinson continued, with the growing requirements
for logistics and emergency response preparedness in
very remote locations, regulatory and environmental
expectations, local content and partnering requirements, supply-chain management complexity, and
new technology issues.
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The solution is not exactly rocket science, however,

with Wilkinson encouraging the industry as a whole to
do more with less.
For equipment that means more standardization on
fit-for-purpose designs for common needs; making more
use of automation, remote monitoring systems, and artificial intelligence; and using fit-for-purpose marine vessels (e.g. for light well intervention work).
Other subsea technology challenges were flagged by
Lee Tillman, vice president of engineering at ExxonMobil. Speaking about developing smarter solutions for subsea at the GE Oil & Gas annual meeting earlier this year,
he highlighted the continually quickening pace of technology-driven progression into deep water (Figure 4).
The present subsea scenario is set in water depths of
up to 3,000 m, with tieback distances of up to 150 km
(93 miles) and field lives of between 20 and 25 years,
while reservoir pressures and temperatures are generally
up to 15,000 psi and 177C (350F). The future challenge, he said, was in dealing with water depths beyond
4,000 m (13,124 ft), subsea tieback distances of 150 km
to 500 km (311 miles), and field lives beyond 30 years.
In some extreme cases reservoir pressures would be
likely to exceed 30,000 psi and temperatures could
exceed 260C (500F).
ExxonMobils in-house subsea technology project,
launched back in 2008, is focused on the development
and qualification of technologies that could deal with
these ultra-harsh conditions. Some 20 technology areas currently are being developed
and qualified, Tillman said, including gravity-based separation, compact separation,
single and multiphase pumps, and subsea
compression technology areas that many
of the companys peers also are heavily
focused on.
potential discoveries in that type of water depth, and we

need to be prepared for that in the future. We are talking about perhaps 300-km, 400-km, even 500-km
tiebacks. Beyond 500 km offshore, this will happen at
some time in the future.
He also flagged high-pressure reservoirs such as the
companys recent North Platte discovery in the GoM as
an area of continued focus. That is a very high-pressure
reservoir but not high-temperature, so we need technology to go to these higher pressures. Now, 20,000 psi is
something the industry is getting to, but for 25,000 psi
we are stretching. Can we get there? Maybe, but we may
need new materials, he said.
Other technologies Total is pushing include subsea
processing advances in separation, boosting, and compression systems; all electric technologies (a good
option for the Arctic); lower power generation; and
innovative materials.
Significant challenges remain to be faced by the offshore industry as it heads into greater depths, with ever
more difficult and complex fluids and more demanding
thermal and distance requirements (colder, with longer
offsets) encountered along the way.
Based upon the future plans of these companies
and their peers, these challenges will be overcome
with the industrys usual mixture of applied technological innovation, some good imagination, and a whole
lot of hard work.
500-km tiebacks
That includes fellow deepwater pioneer
Total, which has undertaken some of the
most challenging projects so far offshore
West Africa.
According to the companys head of
subsea, Per Arne Nilsen, speaking at
MCEDD, significant R&D investments
are needed to overcome these kinds of
technological barriers in the impending
increased water depths.
He highlighted prospective sedimentary
basins around the world in depths of up to
5,000 m (16,405 ft), saying, There are
42
FIGURE 4. Technology advances are increasing the industrys pace into deepwater and ultra-deepwater production, spanning the gap from approximately
600 m (1,969 ft) of water in 1990 to nearly 3,000 m of water today after having
taken more than 15 years to extend from the shallows to 600 m deep. (Image
courtesy of ExxonMobil; subsea wells data courtesy of Quest Offshore)

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Understanding the challenge of

manufacturing deepwater line pipe
Stringent deepwater requirements mean that line-pipe manufacturers must not
only produce small-diameter, thick-walled pipe that can cope with demanding design
requirements but do so in a commercially viable production environment.
Stephen Hall, Tata Steel
eepwater line pipe is usually small-diameter, thickwalled pipe which, by definition, is a pipe with a
high thickness-to-diameter (t/D) ratio.
For pipe manufacturers who deploy the UOE process
(where the material is formed into a U shape and then
an O shape before being expanded to the final dimensions), the creation of line pipe with a high t/D ratio
rather than necessarily the manufacture of specific deepwater line pipe represents the greatest challenge. As the
limit state for the design of such line pipe is not guaranteed to be the collapse point, the manufacturer has to
produce a high t/D line pipe that can meet the most
demanding design limit state requirements, with any
specific collapse element coming through extra testing.
For low t/D line pipe, the predominant collapse mechanism is elastic and controlled primarily by the dimen-
sional performance of the line pipe. For high t/D line

pipe, one of the most frequently dominant collapse
mechanisms that influences the design is plastic collapse,
and it is the mechanical strength and shape of the line
pipe that control this.
Deepwater line pipe key factors

A key factor for the manufacture of deepwater line pipe
is the consistency of both the dimensional and mechanical properties around the circumference and along the
full length of the pipe.
The pipe manufacturing route can significantly influence a number of factors in the DNV OS-F101 collapse
equations, which when optimized can yield improvements
in the collapse resistance of UOE line pipe. Understanding the design requirements and the UOE manufacturing
process is essential to manufacturing a product that
exhibits all of the desired qualities. If the intrinsic collapse
resistance of the pipe can be increased, there are benefits
of cost reduction, increased safety margins, and facilitation of laying at greater depths and speeds.
A model solution
To be able to produce line pipe suitable for deepwater applications, it is essential that a UOE pipe mill can manufacture high t/D
pipe with consistent mechanical and dimensional properties
along the entire length of the pipe. (Images courtesy of Tata Steel)
44
Due to the stringent requirements for deep water, it is

essential to be able to manufacture high t/D line pipe to
the necessary quality while doing so in a commercially
viable production environment.
Each step of the forming process must be fully understood from a theoretical and operational perspective.
Finite element (FE) modeling and validation of the individual processes within the UOE manufacturing route
allow the dies for each step of the process to be designed
at the optimum specification. This is essential to give
good shape to the final pipe at a production rate that
maintains the commercial viability.
The UOE forming processes for high t/D line pipe
involve large amounts of pressure, and the possibility of
damaging equipment is high if the process is not controlled. The use of modeling that has been validated on
previous projects allows the design of the pressing dies
to be optimized. This optimization allows the minimum

level of pressing force necessary to be used, thereby

reducing both the risk of damage to the equipment and
to the mills ability to complete an order on time and in
full to the necessary standard of quality.
Each of the individual forming processes has an
impact on the others in the whole UOE
process, and an understanding of these
interactions is necessary to establish a
process that is optimized to deliver
quality line pipe. For example, a good
crimp profile for shape control out of
the O-press, which allows consistent
weld preps and reduces the peaking
v
on the final product, is essential since
this not only affects the final product
quality in terms of shape (peaking
cannot be fully removed by the
expander) but can have a large
impact on the throughput of the
mill by allowing the welding to be
set up for optimum running.
FE modeling has allowed the design
of dies that not only give the correct
shape and profile but, due to the
bespoke nature of the process, reduce
the amount of wear. This gives better
shape control for a longer period of
time while reducing the costs associated
with lower quality and throughputs.
Modeling and validation are essential
tools for understanding the UOE
process with respect to the manufacturing of high t/D pipe. Strain reversals
on the material during the forming
process in the UOE mills are unavoidable and necessitate the deration of the
pipe manufactured through this process
due to the Bauschinger effect. This fabrication factor for the pipes is a calculated value. These fabrication factors
should be used as a design tool only
and not as a quality control tool.
Quality control for the product should
be determined by whether the actual
test results meet the calculated tensile
F
and compressive minimum yield
strength as set out in the specification.
products with a steel grade strength of X65, and the next

logical step is to increase the specified grade to X70 to
give more mechanical resistance to collapse.
The manufacture of high t/D line pipe involves the
application of large forces during each stage of the
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FIGURE 1. Modeling and validation are vital tools for understanding the UOE process for the manufacture of high t/D line pipe for deepwater applications, with this trial demonstrating the consistency of the manufacturing process for X70-grade material.
UOE forming process, and an increase in strength of

the starting plate material will require larger forces to
be applied during the forming stages against an equivalently sized X65 material. To prove the UOE process for
the manufacture of a high t/D line pipe, it is essential
that the manufacturer understands the dimensional
and mechanical properties along the entire length of
the line pipe manufactured by this route since the inservice pipeline will be subjected to large external
hydrostatic pressure along its entire length during
its operational lifetime.
To show this phenomenon and to try to understand
what the variation is at various points around the ring, a
trial was carried out to quantify the differences, both
around the circumference and along the full length of
an X70-grade line pipe. The trial also demonstrated the
consistency of the UOE manufacturing process.
Test success
The data from the manufactured line pipe for the
46
mechanical properties showed a normally distributed

X70 tensile and compressive yield strength at Rt 0.5,
which comfortably exceeded the 0.85 fabrication factor
associated with the UOE process. The testing regime
showed the properties were consistent regardless of the
position along the pipe from where the tests were taken.
However, there was some variation seen for tests taken
around the circumference of the ring due to the different stresses of the individual processing stages (Figure
1), with the most conservative location of 180 to the
weld being the location where the standard production
testing was taken. The results of the tests carried out at
the 180 position all passed the requirements and
showed that if tested at this location, it was appropriate
to assume that this was the minimum performance for
the entire pipe.
Practical application testing of the collapse resistance
should be carried out in a way that ensures a valid result
while being a test with a turnaround time that allows
sensible release timings to be maintained.

There are three main tests for collapse with varying

degrees of conservatism and viability for production
release testing. The first and most service-realistic
option is the full-scale pipe collapse test. It is impractical
for this method to be used for production testing due to
cost and logistics. Validation of the UOE manufacturing
method and benefits associated with the low-temperature heat treatment of the coating process have been
reported. This work has shown the relationship between
the different methods and how there are varying
degrees of conservatism associated with each.
The preferred production release test is small-scale
compression testing, which is the most conservative of
the three options. The small-scale test pieces can be
taken as part of the routine release tests, and results can
be generated within a sensible timescale. The test is carried out as per ASTM International compression testing
standard ASTM-E9, with the sampling of the material
taken in a way to ensure that all of the grain size variation in the material is sampled equally.
The other subtlety that requires consideration is
the strain rate of the test. The current experience and
calibrations for mills are based on the ASTM-E9 strain
rate, and this should be maintained for any tests carried
out. The other test, the smallscale ring collapse test, is
between the full-scale and
compression tests in terms of
conservatism. This not only
allows the mechanical collapse
strength to be tested but also
the influence of any imperfections in the shape of the pipe
or ring. This is a mid-point
between the other two tests
and gives realism due to the
fact that a ring of the material
is tested. It also can be carried
out at a sensible rate for testing on an extended basis (e.g.
one in 10 heats).
a perfect circle giving the best collapse resistance.

The dimensional properties based on the outer
diameter (OD) ovality of the trial pipes can be seen
in Figure 2.
The performance of the UOE process is excellent,
with an ovality level of less than 0.5% of the OD. This
level of ovality will have a positive impact on the fit of
the line pipe for laying operations and also on the collapse resistance of the operational pipeline. All other
dimensional measurements taken during the trial
showed the excellent performance of the UOE process
against the applicable standards.
To be able to produce line pipe suitable for deepwater
applications, it is essential that a UOE pipe mill can
manufacture high t/D pipe with consistent mechanical
and dimensional properties along the entire length
of the pipe. To do this, a UOE mill can use modeling
and validation along with comprehensive data analysis
to ensure that the line-pipe products being manufactured meet all of the necessary property specifications
for deep water.
References available.
Dimensional data
The second important factor
for high t/D line pipe is the
dimensional performance
along its length. A major factor in the collapse limit state
equation is the ovality of the
manufactured line pipe, with
FIGURE 2. For high t/D line pipe, getting as close to a perfect circle as possible is best when
it comes to collapse resistance. In this example, the ovality level for this X70-grade line pipe
is less than 0.5% of the OD, positively impacting the fit of line pipe for laying operations in
deep water.
47

Thermal insulation advances

are key to plumbing the depths
As exploration and drilling activities go deeper, the need for dependable
and efficient thermal insulation is becoming paramount for deepwater
and ultra-deepwater developments.
Ben Wait, Trelleborg Offshore
ubsea production systems must now go deeper and

reach farther to extract oil and gas around the
world. As a result, the need for dependable and efficient
thermal insulation has become paramount.
Thermal insulation is an integral part of designing any
production system, especially in deep, cold waters. This
is because effective insulation of subsea structures helps
maintain flow rates, optimize productivity, and reduce
processing costs.
Thermal insulation is even more pertinent for subsea
architecture. Insulation materials are used to guard
against the buildup of waxes and hydrate crystals in the
reservoir fluids, which can occur when the hot fluid is
depressurized and exposed to the low seawater temperature or there is a temporary production halt.
Furthermore, during shutdown, the insulation gives
sufficient time for inspection of the pipe and equipment, so engineers can solve production problems and
allow methanol or glycol injection if necessary.
Unchecked, these deposits can quickly build up and

cause loss of flow or even total blockage. Such downtime
means a loss of revenue, and blockages are expensive to
rectify, representing a loss on a considerable investment.
An evolving landscape
Over the last 10 years production has seen wellheads
located in near-freezing water depths in excess of 3,500
m (11,483 ft), and operating temperatures of 150C
(302F) are commonplace.
These extreme temperatures have resulted in an accelerated need for new insulation materials that can keep
up with the increasing demands. Many existing insulation materials simply are not up to it, and their use
could lead to a rapid degradation of performance and
loss of revenue.
Not only must they withstand the extreme conditions,
they must last the projects lifetime, often now up to
40 years.
It is not just manufacturers that have been spurred on
by the challenge of developing new solutions that can
keep up with the demands of the offshore engineer; operators also have responded, adapting their approaches to
specifications to ensure peace of mind throughout the
project, from production and application to subsea installation and use.
More than ever they understand that in addition to
having excellent thermal insulation properties, materials need to protect against corrosion, resist seawater and
impacts, be incompressible yet flexible, and not degrade
during the life of subsea projects.
A complete strategy
A 3-D model of an insulated pipeline end termination shows the

thermal insulation molding sequence. (Images courtesy of
Trelleborg Offshore)
48
Operators are looking for more robust solutions to give

them the confidence they need. With cost no longer at
the forefront when specifying technology, it is evident
that generic specifications and product testing just will
not cut it anymore. Instead, operators want to dig deeper
into the insulation material they are specifying and conduct up-front, project-specific qualifications. Subsea thermal insulation must now be tested against specific project
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parameters something that historically was rarely

heard of.
Numerous considerations must be made when evaluating the suitability of a material, and a number of testing
programs must be conducted to ensure that the most
appropriate solution is chosen. While there is a real lack
of subsea insulation qualification standards, particularly
compared to other subsea technologies, operators are
making sure they go far beyond mechanical integrity
concerns and now also stringently qualify the application personnel, equipment, and processes.
A subsea manifold is shown in the test phase, insulated

with Trelleborg Offshores rubber-based Vikotherm PU and
insulation covers.
Furthermore, rigorous project-specific qualifications

are being set by operators as well as material screenings
in advance of project-specific selection.
Taking control
There also has been a significant increase in quality
assurance and control measures that must now be made
during application, including an emphasis on operation
skill levels, qualification, and documentation.
This is because the performance of a thermal insulation system is as dependent upon the quality of its installation as it is upon the quality of the material itself. Given
the complexity of many subsea structures, the application
of insulation material can present considerable difficulties, especially in terms of access, efficiency, and completion schedules.
Inconsistent quality control processes have been one
of the main failure mechanisms for insulation systems
50
in the past. As such, for each stage of production and

application checks now need to be made to ensure complete compliance as well as an onsite verification of
applied systems. Operators have put increasing emphasis on providing concise, quality documentation, which
provides traceability throughout the entire process.
A change for the better

In response to this need for better qualification and
quality assurance to ensure the reliability of thermal
insulation strategies, leading manufacturers have taken
steps to make certain that the industry better understands the characteristics of an efficient and effective
insulation system.
As an industry standard, leading manufacturers have
extremely experienced field service teams comprised of
highly trained professionals to ensure a total insulation
service that assures product performance and quality.
They also have invested heavily in state-of-the-art mixing
and dispensing equipment to make sure they have hardware that can provide a functional and robust delivery
system capable of applying insulation materials to even
the most complex structures.
This equipment, which can be designed for specific
sites, ensures ease of mobility and is housed in converted container units for easy handling. Mobile laboratories and dedicated quality assurance personnel also
are provided for projects.
Manufacturers are now more aware that complex
fieldwork can incur costs for customers. As such, manufacturers seek to ensure that all teams are fully briefed
on the requirements of each project well in advance to
ensure time spent on site is optimized and to provide
the best value to the customer.
Holistic approach
But it is not just about meeting stringent project-specific
parameters. While this is now tremendously important
for operators, more focus also is being given to the solution itself, more specifically to the interaction between
the anti-corrosion coating and insulation material.
Instead of viewing these two elements as separate
items, operators have started seeing them as entire
systems. These two elements are closely connected,
and the critical failure of either can cause failure to
the entire architecture. Instead, operators are looking
for entire systems that have a single point of responsibility, taking more of a holistic approach to the engineered coatings.
This focus on technology is not at all surprising as, historically, products have been pushed beyond maximum
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operating limits as the definition and criteria of selecting them was flawed; materials would be selected based
on hot dry service capability rather than on a worstcase design, which would be hot wet.
The more traditional products such as glass syntactic
polyurethanes are particularly susceptible to degradation when exposed to high temperatures and wet applications, and many failures within the industry have
circled around this technology. This has generated a
lot of interest in higher operating temperature products, particularly ones that had a more robust nature
and were typically unfilled systems.
Next-generation insulation
This trend has encouraged manufacturers and applicators to develop new solutions. In particular, rubberbased materials have become a more popular solution.
Compared to alternatives like steel and fiberglass, rubber has an extensive temperature range and exceptionally high pressure resistance. It is a flexible material that
can damp, seal, and protect and, most of all, has an
extremely long lifetime.
Another popular choice is high-temperature castable
systems such as silicones or polyether thermo sets and
hybrid polyurethanes, which offer ease of application
and high degrees of automation. They offer lower labor
intensity as they are easy to apply and are not as susceptible to operator error as are pack-in-place systems.
However, it is not always about finding completely new
solutions. Manufacturers must continuously look at their
current product portfolios to find new ways of making
existing products work even harder.
As such, some manufacturers are continually reassessing subsea thermal insulation materials to see how best
to enhance performance.
The latest generation of subsea insulation solutions,
using an example from Trelleborg, can be used in water
depths of up to 3,000 m (9,842 ft), at internal temperatures up to 155 C (311F), and at external temperatures as low as -35C (-31F).
These flexible systems consist of a three-layer buildup,
which makes up the entire system. First comes an inner
layer for corrosion and/or hydrogen-induced stress
cracking (HISC) protection; this could be a neoprene
compound that is qualified up to 95C (203F) or an
ethylene-propylene monomer compound that is qualified
up to 55C (131F). Both compounds provide excellent
corrosion or HISC protection and have been extensively
tested for adhesion, aging, and cathodic disbondment.
The middle layer has been designed to provide the
thermal insulation protection, and various compounds
52
The Vikotherm II subsea insulation coating is applied onto a

pipe by the extruding process. The insulation helps subsea
equipment cope with temperatures that can reach near-freezing
levels on the seabed in ultra-deep water with internal operating
temperatures of 150C (302F).
are applicable depending on the specific requirements.

The flexibility and stability of the rubber makes this an
excellent choice with respect to thermal expansion.
The insulation layer is protected by the outer layer.
This is a strong and robust layer that provides excellent
seawater and mechanical protection and has a successful
track record as far back as the early 1970s.
The insulative elastomer coating system used is a
development based on ordinary rubber technology and
consists of a rubber elastomer that has been chemically
modified to give a very high insulating property while
maintaining its inherent properties in respect to seawater resistance, pressure resistance, mechanical properties, and temperature. By using a solid rubber-based
coating, these new products have very good insulation
properties while providing maximum corrosion protection. This system also allows for mobile production and
can be installed onsite anywhere in the world.
This is just one example of leading manufacturers
responding to changing needs. Unfilled systems such as
high-temperature silicones, polyether thermosets, and
hybrid polyurethanes are others exhibiting stable performance at temperatures in excess of 155C.
As the limits continue to be pushed for subsea applications, the need for reliable and durable solutions that
deliver proven performance for critical thermal insulation installations has never been greater. With the lifetime
of an oil field now expected to often be a minimum of 25
years and with design temperatures varying throughout
up to 200C (392F), it has never been more important
for products to prove they can stand the test of time.
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WATER
MANAGEMENT
Searching for the right mix

of shale and water
Operators are finding solutions to their water management challenges in US shale plays.
Stephen Hester, 212 Resources
o one is talking crisis, but water is very much on the

mind of every company developing US shale plays.
This is both a practical issue and one permeated with
infrastructure and ecological sensitivities that must be
managed with care.
The oil and gas industry is being proactive because it is
clear that current water management practices are likely
to be unsustainable over time. Arguably, the industry is at
a crossroads where the continuing success of developing
shale oil and gas plays may depend on companies revising
their water strategies through the accelerated adoption of
emerging water treatment technologies. Systemic changes
to daily operating protocols will be required to alleviate
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future of this vital resource.
Water sourcing
The costs and logistics of operating a viable shale project,
especially in remote areas, are significant. Developing a
65-sq-km (25-sq-mile) project can necessitate sourcing
billions of gallons of water. Options may include surface
water, groundwater, and municipal water (both fresh and
waste streams) along with increasing the use of flowback
and produced water. Horizontal wells can require up to 2
MMgal of water during the drilling stage and more than 10
MMgal of water during the completion phase. This water
must be transported to the wellhead, most likely involving
a combination of services and logistical gymnastics.
Water sourcing is becoming increasingly problematic,
with a minority of voices raising questions over the
impact of fracturing activities on the supply and safety of
potable water supplies. Shale operators can offer plenty of
irrefutable evidence that fracing, on average, uses less than
1% of water in any given region. But the relative percentage
in certain geographic areas can be substantially higher, and
the visibility of operations makes for a different perception.
This is magnified in areas such as the Permian basin
where persistent drought conditions have led to water use
restrictions. Industry water demands are bound to be
highlighted, even if these are minimal as compared, for
54
The use of alternative water treatment technologies in operations

would do more with less in areas where water is in short supply.
example, to 60% to 70% agricultural usage. In Texas water

rights involve a further complication: Groundwater is
owned by landowners free to sell their water, whereas elsewhere in the US this is a public resource, which makes for
easier area water supply planning that takes into account
all industrial and domestic consumers.
Water recycling as an option

The obvious strategy for operators is to source and use
water as efficiently as possible within the parameters of
their particular shale projects. This strategy has placed the
focus firmly on recycling options. The benefits include less
pressure on water supplies, less produced water disposal,
and reduced logistical stress for supply and disposal, all of
which can add up to a reduction in overall costs.
Recycling possibilities available to an operator depend
on a number of factors, but the geologic composition of
the formation will define characteristics of the produced
water. The salinity or total dissolved solids (TDS) can vary
significantly by basin and from well to well within the same
geostructure. Other water quality characteristics that may
influence water management options necessary for consistent control of gel frac chemistry include concentrations of
hydrocarbons, suspended solids, soluble organics, boron,
iron, calcium, magnesium, and constituents such as benzene and silicates. In certain circumstances naturally occurring radioactive materials (NORMs) also may be present.
WATER
MANAGEMENT
Options for recycling will vary. Often, the first choice is to transport flowback/produced water to a central facility for minimal treatment. Suspended
solids are removed, and the water is returned for blending and reuse. Obvious
issues include no removal of TDS concentrations, potential interference with
completion performance through reuse, and the environmental concerns associated with maintenance and security of frac water storage ponds with high concentrations of dissolved solids.
A second option that reduces the transport cost element is onsite primary
treatment of flowback water for the removal of suspended solids, oils and
greases, microbes (through disinfection), and friction-reducer polymer prior
to reuse in another frac job.
A third option is the more intense primary treatment mentioned above plus
the possible removal of scale-forming constituents such as calcium, magnesium,
and barium. This is then followed by blending and reuse. At the point where
brine concentration in flowback water becomes too concentrated for reuse, it
must be transported to an approved injection well facility. Some service providers
believe that focusing on the composition of flowback water using chemical additives and other processing can enable continued recycling of water, effectively tolerating TDS and salinity issues.
For every frac job there has to be a calculation about the suitability of flowback/produced water for reuse depending on its salinity, TDS content, etc.
In practice, early flowback water often can be used a number of times in certain geological conditions with a minimum of basic filtering, blending with
freshwater, and adding frac chemicals to improve hydrocarbon flow. But
sooner or later the buildup of brine and other constituents must be dealt with,
and this is the point where production cost and environmental imperatives
have to be resolved.
Thermal distillation provides different option

None of the options listed above address the removal of salts and other constituents, known to interfere with polymer crosslinking and associated breakers.
Thermal distillation effectively removes all constituents (to less than 50 ppm)
from these recyclable water streams. 212 Resources provides mechanical vapor
recompression processes for both onsite and centralized service. The process is
based on a system providing a consistent, high-quality effluent regardless of the
widely varying constituents in the feed stream. The by-product highly concentrated 9.6-lb brine can be filtered and reused as a drilling fluid, kill fluid, and
feedstock for conversion to other oilfield chemicals such as hydrochloric acid
and sodium hypochlorite. The process also removes contaminants such as
NORMs and endocrine-disrupting compounds as well as various aldehyde
compounds commonly found in produced/flowback water.
In regions where disposal costs can threaten future field development, thermal water treatment processes can process produced/flowback water to national
pollutant discharge elimination system standards. 212 Resources operated such
a facility, treating 5,000 b/d for discharge into a Class 1 cold-water aquatic life
stream feeding into the Upper Colorado River drainage system. The end result
was a significant reduction in daily disposal costs, enabling cost-effective development of the field.
The mechanical evaporation approach is still evolving but is arguably one of the
most promising in its focus on well productivity, smart water management, reduced
costs, and the environmental hazards of shale oil and gas development.
(4)
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WATER
MANAGEMENT
Saving water in the oil sands

Using less water in SAGD operations benefits the environment and the bottom line.
Jessica M. Wilkinson, Cenovus
f you asked plant operators at Cenovus Energy what

they do for a living, you might be surprised at the
answer. More than one has quipped that they run giant
water treatment plants that produce a bit of oil.
For an in situ oil sands producer like Cenovus, water
and proper water management is critical. About 80%
of Canadas oil sands resource is too deep to be mined
using the big trucks and shovels that most people are
familiar with. This oil must be recovered using special-
ized techniques to drill and pump the oil to surface.

However, there is a catch.
Conventional oil has a consistency similar to olive oil.
It flows easily, said Mark Bilozir, director of technology
development at Cenovus. Oil in the oil sands is much
thicker. In some areas it can be as hard as a hockey
puck. We have to stimulate it to make it flow.
Cenovus uses a technology called steam-assisted gravity drainage (SAGD) to produce its oil sands assets. Two
horizontal wells, one approximately 1.5 m (5 ft) above
the other, are drilled into the reservoir. Steam is injected
in the top well and spreads out into the reservoir to create a steam chamber. The oil is heated and flows downward to the producer well. It is then pumped to surface.
Water use
Finding ways to improve the efficiency of producing and using

steam is critical to the success of in situ oil sands operations.
(Images courtesy of Cenovus)
56
Water is obviously an integral part of the process. Its use

also is one of the most important metrics for measuring
the efficiency of in situ oil sands projects. Companies
measure their steam-to-oil ratio (SOR), which simply
represents how much steam is required to produce one
barrel of oil. Lowering the SOR reduces water use,
which in turn reduces emissions and potentially the
surface footprint by reducing the size of the water
treatment facilities required.
Water is essential to our business, Bilozir said. In fact,
the success of our operations depends on our ability to
use water efficiently. Were investing a lot of resources
into developing technologies to help minimize our water
use and make our processes more efficient.
Cenovus has an average SOR of about two at its
Christina Lake and Foster Creek oil sands projects. This
is one of the lowest SORs in the industry, Bilozir said.
The majority of water used in the oil sands is nonpotable saline water drawn from underground aquifers.
And that water is recycled. In fact, in Alberta it is mandatory to achieve a produced water recycle ratio of 90%
for SAGD projects.
One of the ways Cenovus is achieving a high recycle
rate is through the use of its patented blowdown boiler
technology. Big is an understatement when it comes to
steam generators in the oil sands. The boilers Cenovus
uses produce 175 MMBtu to 250 MMBtu of steam. As
with all industrial equipment, they are configured to
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LEFT: The Foster Creek oil sands development,

which is jointly owned by Cenovus and ConocoPhillips, produces approximately 120,000 b/d of
oil. BELOW: Steam generators at Cenovuss Foster
Creek oil sands development produce 175 MMBtu
to 250 MMBtu of steam.
run under certain conditions with certain specifications.

The average boiler runs at about 80% efficiency. Conventional wisdom states that the remaining 20% leftover
water (blowdown water) has to be treated before it can
be reused. This adds cost and is energy-intensive.
A new way of thinking

Cenovus was not satisfied with conventional wisdom.
We could take blowdown water and spend a lot of
money, chemicals, and equipment to treat and then run
it again, Bilozir said. But its a lot more economic and
simple if we can just figure out how to go from one
boiler right into another.
The blowdown water is highly concentrated. Cenovus
engineers ran models to determine if using blowdown
water as feed water without treating it at all would
damage the boiler.
There was a pretty competitive betting pool, Bilozir
said. There were a number of people that didnt believe
it would work. They were putting money on when the
boiler would fail.
A lot of work was done before the test even started.
Engineers discussed the idea with industry experts and
vendors, visited other operators, and conducted detailed
engineering studies. The trial started at Cenovuss
Foster Creek oil sands project, jointly owned with
ConocoPhillips, in 2007 and is still going strong.
The company initially tested the process on a smaller
steam generator capable of generating about 50
MMBtu/hr. Over a test period of 166 days more than
59,000 cu m (2 MMcf) of steam was generated, along with
nearly 150,000 b/d of oil using only untreated water.
Mechanical inspections were conducted throughout
the test and at the end of each testing stage. Each
inspection showed similar results: The boiler was in
good shape with minimal scaling. It worked.
58
Following the pilot, Cenovus ran a successful commercial test for 100 days in late 2010 with a 175-MMBtu steam
generator. The company has since incorporated blowdown boilers into future phases of its oil sands projects.
Major benefits
The benefits are clear. By reboiling the blowdown
water, Cenovus is able to convert more than 90% of the
initial feed water into steam. Only 2% to 5% of the original feed water is disposed of with this process; without it
about 20% of the original water is disposed of.
Using blowdown boilers also decreases the need for
makeup water by about 50% and reduces capital and
field costs.
Water management plants are typically one of the
largest capital costs associated with in situ oil and gas
facilities. By reducing the amount of blowdown water
the plant has to treat and handle, Cenovus can reduce
the size of the plant and reduce operating costs by
about 15 cents per barrel.
Its really a win-win, Bilozir said. We dont need
to add chemicals or do further treating. We can reduce
capital and operating costs. And we can get more
steam with less energy and less water required from
the environment.
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WATER
MANAGEMENT
A day in the life of a barrel of water

Energized solutions in hydraulic fracturing can help operators save water
and see performance improvements.
Robin Watts, Linde North America
ydraulic fracturing creates the largest demand for

water of all drilling and completion activities. The US
Environmental Protection Agency (EPA) estimated that
between 2.5 MMgal and 5 MMgal of water are used per
well to fracture a formation. That is a lot of water to
acquire, transport, store, and manage.
Sending fluid downhole is not the only time that companies need to deal with water. Produced water tends to
increase as the well ages. Reported water-to-oil ratios
increase from 1:1 early in the life of a well to 15:1 later
on. The EPA estimated that wastewater recovered from
hydraulic fracturing varies from 10% to 70% depending
on the geologic formation. The proper disposal of this
water represents another significant investment for energy
producers and service companies.
In addition, current water demands are not sustainable.
A 2010 study for the Natural Resources Defense Council
found that more than one-third of all counties in the
contiguous US will face higher risks of water shortages
by mid-century.
All of this forces energy producers and service companies to understand the total life-cycle costs of water.
Exploring alternatives to water such as carbon dioxide
or nitrogen to energize fracturing fluid solutions and
reduce water volume also is in order.
Total life-cycle costs
considerable cost. It takes approximately 500 truck trips to

deliver 3 MMgal of water to a site, and it is estimated that
between 65% and 90% of truck visits to the wellhead during drilling and completion are for water deliveries for
hydraulic fracturing and flowback water removal. Even if
pipelines are built to reduce truck traffic, the expense of
building the pipeline is part of the total overall water cost.
Flowback and produced water are typically disposed
of in one of three ways: in injection wells, at treatment
facilities, or through recycling and reuse. Class II underground injection wells are the most common method.
Recycling depends on many factors, and treatment facilities are helpful when nearby. No matter which disposal
option is selected, removing water from the wellhead is a
cost that must be considered.
Alternative fracturing fluids

Operators have alternatives that can reduce water volume
and expense in hydraulic fracturing. The Energy Solutions group of Linde North America has a framework to
calculate hydraulic fracturing fluid life-cycle costs and
predict productivity via fracturing simulations.
When the total life-cycle cost of water approaches US
$5/bbl to $10/bbl, Linde recommends using fluids energized with CO2 and/or nitrogen (N2) to reduce water
consumption and unit production costs. Even at just
$5/bbl for total water costs, the economic benefits of
energized solutions can be realized relatively quickly
when well hydrocarbon productivity gains of 10% or
greater are achieved.
CO2 and N2 are used to energize fracturing fluids to
enhance performance and productivity with the added
Total life-cycle water costs include acquisition, transportation, storage, usage, treatment, recovery, recycling, reuse,
and disposal.
The water source affects overall
costs. Any expense to treat water,
including building plants must be
part of the water acquisition calculus. The same goes for water storage. Engineering and building
impoundments, pipelines, and
security fencing add to the cost
of acquiring and storing water.
FIGURE 1. The barrel cost equivalent comparison and productivity payback improvement
Transporting water to and
for water vs. CO2 energized fluid is shown. (Images courtesy of Linde North America)
from remote well sites also adds
60
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WATER
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water important to sustainable well programs. In addition,

CO2-energized fluids may significantly reduce the payback
period for incremental fracturing costs. In this particular
case payback would be less than one year, assuming well
productivity improvement of 30% (or less than half a year
at 60%), which is achievable based on actual operator
experience in the region (Figure 2).
Supply, management,
and disposal complexities
FIGURE 2. This figure delineates the simple estimated

productivity value for a 30% incremental production gain.
benefit of reducing water volume for fracturing jobs. A 40quality CO2 foam can mean leak-off reduction that reduces
total fluid-volume needs by 25%, while a 75-quality CO2
foam can reduce total fluid-volume needs by up to 50%.
The initial cost of fluids energized with CO2 or N2 in
certain circumstances may exceed initial water acquisition
costs. But in a well-designed fracturing process CO2 and
N2 can reduce other costs and improve well performance
to yield a lower total operating cost or unit cost of production. The following examples, run through Lindes
simulation framework, compare the total life-cycle costs
of hydraulic fracturing using water-based or energized
fluids. Situations where energized solutions increase productivity and thus offset lower per-barrel water costs are
explored. The examples use a simplified method for
quickly assessing the potential total costs of hydraulic fracturing fluid choices as well as implications for productivity
to provide estimated unit costs of production. Certainly,
capital investment can have a major impact on unit costs.
Capital costs
In an example from the Anadarko basin (Figure 1)
the cost of incremental water acquisition and disposal
appears on its face to be significantly lower than the 40quality CO2 energized fluid option ($2.77/bbl for water
vs. $13.20/bbl for CO2). However, to get per-barrel water
costs so low, the operator made a $10 million capital
investment for an injection well to dispose of the water.
While the cost of the CO2 program approaches $1.4 million, there are no post-fracturing management or disposal costs associated with CO2.
The Anadarko region is undergoing drought conditions
and projected water shortages, making alternatives to
62
In an example from the Uinta basin the complexities of

supply, management, and disposal drove waters per-barrel
cost to $14.31 as compared to total CO2 costs of $14.91/
bbl. Recycling, reuse, and disposal can be particularly
expensive in this part of the Rockies. Water acquisition
can explode from $5/bbl to $25/bbl if one accounts for
recycled water. Disposal costs can rise to $8/bbl, up from
$5/bbl. In this scenario total water costs rise to $36.56/bbl
as compared to the CO2 treatment costs at $14.91/bbl.
As in the Anadarko example, CO2 performance can
offset its costs and lower water production. One sampling
of production results using various fracturing fluids in a
three-county region in Utah found higher natural gas
production from wells fractured with a higher quality CO2
solution. Water production was greater in wells treated
with higher water-content fluids. With no CO2 or lower
quality CO2, water production was 4.5 times to 1.8 times
greater than using higher quality CO2. Gas production on
average was 5% to 75% higher when using low-quality to
higher quality CO2 as compared to water.
High disposal costs

A Marcellus example shows the injection well disposal
costs are at a premium, putting total water costs at
$15.87/bbl. CO2 costs are $12.55/bbl. If the water source
changes to recycled water at a cost of $13/bbl instead of
$3/bbl, the total water cost rises to $25.87/bbl. This is
substantially higher than a high-quality CO2 foam fracturing fluid that also can deliver productivity enhancements.
Taking the full view

When producers and service companies take the full view
of their water costs, they can more accurately determine
total cost and make better, more informed decisions.
Injecting less volume and fewer chemicals can significantly
reduce associated costs and the environmental impact.
When drought conditions send the water acquisition
prices soaring or conditions affect disposal options, being
able to calculate the cost of alternative fluids can mean the
difference between an optimally productive, profitable
well and a well that merely performs well enough.
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WATER
MANAGEMENT
Mobile separation technology

delivers high-volume water recycling
Shale operators have a new onsite tool in their water management toolbox
that uses vibration membrane technology to recycle wastewater.
Drue Whittecar, NOV FluidControl
ith some estimates showing as many as 20 bbl of

water required for every barrel of unconventional
oil produced, managing the tremendous volumes of water
required of multiwell shale plays is inarguably one of the
most daunting issues confronting onshore operators
today. Consequently, the incessant public and regulatory
scrutiny, limited disposal options, and continually rising
compliance costs have inspired, with varying degrees of
success, the development and application of water treat-
ment technologies as diverse as electrocoagulation (EC)

and ultraviolet (UV) disinfection to help operators reduce
both consumption and costs.
More recently, a uniquely engineered and ultra-mobile
version of membrane separation technology has emerged
as a cost-effective option for treating and recycling more
than 80% of all the water used in a typical shale oil or gas
project. The dual-tower AQUA-VES mobile water treatment system employs cross-flow vibration separation to
process for reuse up to 2,500 bbl per tower of frac flowback, slop, and produced waters as well as the spent water
from drilling, drilling completion fluids, and rig wash.
Unlike more conventional systems that remove some
but not all wastewater contaminants, the new trailermounted water management technology has been fieldproven to extricate nearly the full spectrum of impurities,
including total suspended solids (TSS), bacteria, oxidized
metals, oil, grease, other total petroleum hydrocarbons
(TPH), and a percentage of total dissolved solids (TDS)
entrained within the slurry.
The onsite treatment system, which employs vibration
membrane filtration technology, has been applied effectively in the Permian basin, Marcellus, Eagle Ford, and
other shale plays. The cornerstone of an all-inclusive water
life-cycle management service, the system is the only one
of its kind capable of employing both micro/ultra-filtration or a nano-filtration to remove substances as minuscule as 0.0005 microns (). The removal of the smallest
solids clears the way for continual reuse of what otherwise
would be wastewater, which in some plays can cost upward
of US $18/bbl for transportation and disposal.
New twist on membrane separation

Membrane filtration has been used for years as a water
purification methodology largely because of its capacity to
allow controlled separation through selection of pore size
and its superior separation proficiency. The conventional
The two towers of the mobile water management system are
capable of processing water for reuse up to 2,500 bbl each.
(Images courtesy of NOV)
64
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WATER
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membrane-oriented water treatment systems used in shale

E&P mostly employ cross-flow filtration that requires
excessively high flow rates to keep the filters clean. Not
only does this approach require appreciably more energy
to function, it also filters a comparatively small percentage
of the total flow.
In traditional cross-flow filtration, most of the shear that
the turbulent flow generates is away from the boundary
layer, thereby preventing the efficient removal of retained
particles. Consequently, the membranes tend to plug and
foul, reducing the flux appreciably. Vibratory-induced
cross flow, on the other hand, focuses shear waves at the
membrane surface, repelling solids and other contaminants within the boundary layer. This methodology allows
for higher concentrations while maintaining long-term
sustained rates up to 10 times higher than systems employing standard filtration.
The vibratory separation approach was designed into the
latest generation water treatment technology. The new system uses 0.05- Teflon-coated membranes that vibrate con-
tinuously, meaning fluid velocity at the wall is dictated by

vibration rather than flow. Accordingly, the shear waves
propagating from the membrane surface hold suspended
particles above the surface, thus allowing free transport of
more liquid through the membrane. As a result, the membrane remains clean, and with throughput rates up to 15
times higher than conventional filtration technologies, the
new system allows for unrestricted filtration of a comparatively larger proportion of the flow-through. Due to high
flux and minimal to nonexistent membrane scale and fouling, the system also is extremely energy-efficient, requiring
only 0.27 kilowatt-hours per thousand gallons of filtrate.
Furthermore, the vibratory membrane separation
system employs surface rather than depth filtration.
When membrane cleaning is required, it can be accomplished on the surface without the nonproductive downtime associated with disassembling and cleaning a soiled
depth filtration unit. Since the durable Teflon membrane
coating is tolerant to nearly all cleaning compounds,
including acids and solvents, it poses no restrictions on
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Gain better insight into your fief s
If you could do all this,
w ould you be able to get better value from your production operation.
Roxar is a leading international technology solutions provider covering the entire reservoir optimization
value chain. Roxar 's objectives are to help oil & gas operators increase oil & gas recovery from
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WATER
MANAGEMENT
the cleaner used to remove any fouling that

may have occurred.
How it works
The system arrives at location on a 16-m (53-ft)
trailer holding a pump skid and the two membrane towers. Contained within the small 1.3-m
by 1.3-m (4-ft by 4-ft) footprint of each module
are stainless steel trays holding approximately
400 constantly vibrating micro/ultra-filtration
membranes, delivering cross flow with a total
A treated wastewater sample (right) shows a clear improvement over the samsurface area of 112 sq m (1,200 sq ft). Before
ple collected before treatment (left).
initiation of the treatment operation, site-specific wastewater samples are analyzed to determine the level of filtration and treatment that will be
smaller are able to flow through the membrane trays, the
required. Depending on the operating environment, the
vibratory membrane separation system effectively pulls out
system is designed to accommodate a wide range of memall oxidized metals, bacteria, and suspended solids as well
brane sizes, from microfiltration to reverse osmosis.
as some TDS and all petroleum hydrocarbons.
During operation the slurry enters the top of the vibratField comparisons
ing module, where alternating blockages in the downward
Direct field comparisons with competing processes includflow path force the contaminated water into the cross flow.
ing EC, UV, and evaporation show considerable advanAs the slurry continues to flow across the vibrating memtages, with the vibratory membrane separation system
branes and traverse the module, the vibration generates
holding a sizeable upper hand both in terms of the volcentrifugal forces that throw the heavier materials into an
ume and diversity of contaminants removed.
open trough that extends alongside the membrane trays
Illustrating its capacity to remove the smallest entrapped
to the height of the module. The separated material drops
solids, the system has shown consistent delivery of comparto the bottom of the trough where it exits through a pipe
atively cleaner permeate with average nephelometric turas the reject. The clean filtrate, meanwhile, is forced
bidity unit levels below five and a near 100% reduction in
upward where it is pumped into frac tanks and fully
both bacteria levels and insoluble organics such as oil and
treated for reuse.
grease. Consequently, more than 80% of the total slurry
Since only subtreated is recovered and returned to the active water
stances 0.05 or
stream for reuse in subsequent wells.
In addition, compared to
competing water management systems, the new technology is the only such system
engineered to remove nearly
all types of contaminants.
Some processes, for instance,
remove only suspended
solids, while others are
designed solely on dislodging
Shown is the flow
biocontaminants and TDS.
process of the
Furthermore, the vibratory
vibration separamembrane technology gets
tion technology
rid of TSS, bacteria, and
used by the system.
TPH and oxidizes metals and
some TDS at a cost as low as
$1.50/bbl, depending on the
volume treated.
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BASIN
MODELING
Taking a geological approach

to regional exploration
Acquiring seismic data with an eye toward geology and combining it with
nonseismic measurements brings new understanding to frontier areas.
Brian Horn and Rachel White, ION
n the current competitive environment E&P companies must take greater financial risks to access frontier areas and new prospective plays. Between block
award signing bonuses and work commitments, oil
companies can spend hundreds of millions of dollars
before drilling the first well in an exploration program.
In frontier areas where seismic and well data do not
exist or are lacking, the perceived risk is even greater.
Although no commercial wells have been drilled,
northeast Greenland is believed to be highly prospective with resource estimates of 31 Bboe. Exhumed oil
deposits to the southwest in the Traill area and a
conjugate margin connection to the highly productive
North Sea suggest evidence of an active petroleum system. Yet there are no regional ties between these
potential end members that can reduce exploration
uncertainty in this untested area.
A regional understanding of basins and petroleum
systems can provide the geological context to help
reduce uncertainty of play types and high-grade the
most prospective areas. To deliver this kind of information, ION introduced BasinSPAN regional 2-D programs to help E&P companies focus in the most
prospective areas.
Using this kind of exploration framework, E&P
companies can mitigate exploration risk by placing
all play types within a calibrated regional framework that enables them to compare their portfolio
of opportunities.
Exploring the Arctic

IONs ArcticSPAN programs are taking a first look at
new exploration frontiers. The three phases of the
northeast Greenland program were designed to
deliver a more comprehensive understanding of the
geologic structure, providing a basin-scale 2-D seismic
framework of the entire petroleum province. The
geophysical objectives were achieved by defining
70
FIGURE 1. The base map shows the regional distribution of lines

designed to image key geologic features. (Images courtesy of ION)
Equatorial Margins B
Multi-Client Seismic - Data Available for Brazil Round 11
Zaedyus
Well
French
G uiana
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P. a- Maranhao Ba nn
Barr&% h S Ba S .
Ceara e.s
Legend
Blocks
IPecem
MAID
Bid Round 11 Blocks
ik
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Bid Round 11 Sectors

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Spectrum is active in five basins along the Equatorial Margins of Brazil ,

all of which are available to license in Round 11 . We offer new PSTM
and PSDM data for each of the Foz do Amazonas, Barreirinhas. Ceara
-'
Seismic section from the Potiguar Basin dsts
#V*Spectrum
and Potiguar, all of which were acquired with 10 , 000 m offsets and 10-13
second record lengths.

Reprocessing efforts are underway along the Equatorial Margins. The first
is a 9,600 km program in the Para-Maranhao Basin that links the Foz do
Amazonas Basin to the Barreirinhas Basin . The second project covers
7, 783 km in the deep waters of French Guiana. This will link the Zaed yus
discovery with data recently acquired offshore Brazil .
The well tie data will be available in April and the remaining data in May. Our
Multi-Client team is comm itted to delivering high quality data in advance
of the upcoming Round 11. Companies participating in Spectrum 's
programs will have a competitive advantage in this round.
Q + 1 281 647 0602
mc-us@spectrumasa.com
www.spectrumasa.com
BASIN
MODELING
image requirements and then working back through

the seismic workflow to define the appropriate acquisition and processing technologies and methodologies.
The company first employed its new proprietary underice arctic technology, acquiring 17,500 km (10,658
_ I
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miles) of data in areas previously inaccessible because

of heavy ice coverage.
Rather than using a conventional symmetrical grid,
the surveys take a geologic approach designed to cross
geologic structures and tie key data points. The lines
purposely intersect wells and recent
discoveries to provide stratigraphic
calibration wherever possible. Global
and regional geologic models are
incorporated to design and set limits
for acquisition. Critical building
blocks of this process include understanding basin crustal geometry and
sedimentary architecture and the
implications to the thermal history
and maturity within a basin.
Because of the depth and stratigraphic resolution provided by these
surveys, it is possible to understand
and reconstruct a basins tectonic
evolution at a crustal scale. Interpretation reports illustrate the geometry
and nature of stratigraphic horizons
from the water bottom to Moho.
Crustal thickness and sediment
isopach maps created from these
data provide a regional context for
defining exploration play fairways.
Basin-scale depth imaging also provides a basis for studying and gaining
insight from conjugate margins globally. Understanding basin evolution at
the regional scale requires imaging
both margins within the basin. Programs are designed and oriented to
consider the paleogeography as the
basin formed, providing the most
accurate data to explore both sides
of a basin.
From new frontiers to the world's mature basins , PGS is committed to
Greenland
delivering the right data , in the right place at the right time to s u p p o r t your
exploration. Whe rever you need hi g h quality, high resolution data that helps
de-risk prospects, our global coverage makes us ready where you are.
Supporting your exploration success

A Clearer Image
www.pgs . com
72
The northeast Greenland Shelf is the

conjugate margin to the Lofoten and
Vring margins of Norway prior to
continental breakup. The new data
provide evidence of a continentocean transition that occurred closer
to the Greenland coastline than previous interpretations allowed for. This
interpretation impacts the breakup
history of both the Greenland and
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BASIN
MODELING
FIGURE 2. The Northeast GreenlandSPAN data provided new

insights, resulting in a revised plate reconstruction model of the
North Atlantic 55 million years ago.
conjugate Norwegian margins and has led to a

revised plate reconstruction model of the North
Atlantic (Figure 2).
In large geographic areas with limited data,
nonseismic methods are integrated with seismic
data to cost-effectively develop higher resolution
3-D images. Combining gravity and seismic data
gives a more complete picture of fault geometry,
salt distribution, and crustal type.
As part of the Northeast GreenlandSPAN program,
ION partnered with ARKeX to acquire the worlds
largest offshore 3-D multiclient airborne full-tensor
gravity gradiometry (FTG) survey spanning 50,000
sq km (19,305 sq miles). The integration with
existing 2-D seismic data has led to an improved
understanding of fault linkages, basement composition, and the geometry and continuity of salt bodies.
The section shown in Figure 3 shows how highresolution gravity gradiometry is integrated with
regional 2-D seismic to improve the architectural
understanding of salt geometries within a basin.
Integrating gravity also provides constraints in
velocity model-building by revealing density
contrasts within a given area. Iterating between
seismic, magnetic, and gravity data makes it easier
to identify densities of subsurface layers to achieve
the best match.
The data revealed new insights into the subsurface,
identifying play types and structural leads and suggesting that oil-prone Jurassic source rocks are present
over much of the area. These interpretations, coupled
with the observations on the conjugate Mid-Norway
margin, indicate that the area has excellent hydrocarbon potential.
FIGURE 3. Integrating 2-D seismic with full-tensor gravity gradiometry improves understanding of salt amount and shapes.
74
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BASIN
MODELING
Implications and applications for

petroleum systems modeling
Proper analysis of petroleum systems aids in finding oil and gas and avoiding drilling hazards.
Markus Loegering and Thomas Coates-Harman,
Robertson, a CGG company
ince all processes in the subsurface are no less than

3-D, 3-D petroleum systems modeling is becoming
an integral part of any prospect evaluation. It integrates
different disciplines in the oil and gas industry such as
seismic interpretation and analysis, geochemistry, structural modeling, reservoir modeling, economic risking,
exploration risking, and pressure analysis. A petroleum
systems model is a digital data model of an entire petroleum system in which the interrelated processes and
their results can be simulated to understand and predict
them. These models are dynamic as they provide a complete record through geologic time.
Petroleum systems modeling is the combination of
seismostratigraphy and seismotectonics, well log analysis,
biostratigraphy, and geological and geochemical information to model the evolution of a sedimentary basin
through time. Petroleum systems modeling is progressively becoming a key tool in the exploration industry as
it predicts if, when, and how a reservoir has been charged
with hydrocarbons, including the source and timing of
hydrocarbon generation, migration, migration loss, volumetrics, trapping, leakage, and hydrocarbon type in the
subsurface. The predicted hydrocarbon potential and its
relation to stratigraphic and structural traps in the seismic dataset allow the identification of any potential risks
that may be present within a given petroleum system.
FIGURE 1. A depth-to-Moho calculation includes upper and

lower crustal thickness estimations. (Images courtesy of
Building the model

A key part of building any 3-D model is to constrain the
geological evolution of the basin. This is done by incorporating boundary conditions into the model in terms of
paleolatitudes, paleowater depths, and heat flow variations
through time. Advances have been made in the development of tools to constrain the geological evolution and
create carefully tailored models specific to certain areas
of the globe. For example, Plate Wizard is a plate tectonic
model and a geographic information system tool that
reconstructs and predicts paleogeographical positions
using rigid and deformable tectonic plates of the
Earth. The model is data-constrained for the Mesozoic
and Cenozoic eras (ranging from 250 million years ago to
present day). The tool has been designed to address some
of the important limitations and problems associated with
existing plate models. Its aim is to be useful as a base for
paleogeographic and paleolatitude mapping; modeling
deformation at plate margins; and placing any geological
data, project, or problem in a plate-tectonic context. In
the context of basin modeling Plate Wizard can be used
to track the changes in paleolatitude of each well point.
Depth-to-Moho calculation involves forward-modeling
the flexural response of the crust-mantle interface due to
an estimated load for a range of suitable elastic thicknesses (or crustal strengths). The loading of the crust is
estimated from global compilations of sediment thickness
and digital elevation models. Moho depths from all elastic
thickness scenarios are compared, and the best scenario
is then converted to total crustal thickness by calculating
the difference between the selected scenario and the digital elevation model.
Final model-building (Figures 2a and 3a) is conducted
by incorporating geophysical data such as depth maps
from interpreted 2-D and 3-D seismic studies; well logs;
temperature data such as bottomhole and distributed
temperature data; geochemical data such as vitrinite
reflectance, biomarker analysis, source rock type, richness, and quality; and boundary conditions such as
crustal thickness, depth to Moho, and paleolatitude
and paleowater depth.
One issue that arises during model-building is that of
scale. This occurs due to the introduction of data from a
Robertson, a CGG company)
76
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BASIN
MODELING
c
b
FIGURE 2. This basin-scale model-building (a) shows stratigraphy; (b) oil (green) and gas (red) accumulations are identified
following simulation; and (c) the location of the 3-D cube is indi-
The basin-scale model consists of 60 layers, whereas the

3-D cube consists of 313 layers and so can more closely
represent the actual variations in reservoir and seal facies.
This leads to a higher number of gas accumulations within
the 3-D cube as the oil generated is trapped in a greater
number of reservoir and seal combinations where it is
cracked to gas (Figures 2b and 3b). The basin-scale model
can be interpreted as an oil-prone petroleum system,
whereas the detailed cube is predominately gas-prone.
For the exploration industry and new ventures it is
important to know the subsurface pressure conditions to
anticipate the potential of overpressure within the area.
The basin-scale model that contained lithological variations at a 50-m (164-ft) scale showed no overpressure
within the sedimentary package. In contrast, the 3-D cube,
containing meter-scale lithological variations, showed overpressure starting at a depth of 1,762 m (5,780 ft) due to
successions containing a high shale content. Normal pore
pressure increases approximately 1.4 psi/1 m (3.3 ft) of
depth, and saturated saltwater generates a gradient of 1.5
psi. According to this, at a depth of 2 km (1.2 miles) a normal pressure should be 2,845 psi, whereas the model predicted a pore pressure of 4,520 psi at this depth. The high
predicted pore pressures are related to high sedimentation rates and overburden rocks including shales, mudstones, and resulting compaction. Overpressure can cause
a well to become uncontrollable during drilling.
cated within the basin-scale model.
Potential applications
number of disciplines such as geophysics, sedimentology,
Overpressure plays an important role in unconventional
biostratigraphy, and geochemistry. In a case study example
plays where mature shales are responsible for increasing
a detailed model was incorporated into a basin-scale
pore pressure. Therefore, petroleum systems analysis
model to highlight the impact that this can have on the
is playing an increasing role within unconventional
results following simulation (Figure 2c). The detailed
resource exploration. Through the use of basin modeling
model incorporated fault distributions and meter-scale
it has become possible to evaluate potential unconvenlithological variations, thus providing a highly detailed
tional plays by the incorporation of shale oil and gas, oil
assessment of the nature of potential hydrocarbon migrashale, and biogenic source intervals as well as by the abiltion, trapping, and accumulaa
b
tion. Comparisons could then
be made between accumulation occurrence in the
3-D cube and the same volume of the basin-scale model
containing a simplified stratigraphy. It is believed that the
information obtained from
the 3-D cube can be extrapolated to provide a suitable anaFIGURE 3. A similar process was applied to the 3-D cube (a), which shows stratigraphy, and
logue for potentially similar
(b) oil (green) and gas (red) accumulations are identified following simulation and fault
areas of the basin where seis(blue) distributions.
mic coverage is less detailed.
78
BASIN
MODELING
NEXT G E N E R A T I O N
FORMATION EVALUATION
ENRICHED
ity to create unconventional source kinetics. One tool of significant importance
is geomechanical analysis on basin stratigraphy to target specific horizons within
a basin and determine the rock fracability. For example, it is now possible to
identify a potential shale gas play within the petroleum system and calculate the
pressure required to fracture the rock within that specific formation. For this
detailed information on the pressure regime, thermal conductivity; minimum
horizontal stress; and geomechanics data such as porosity/permeability, elastic
properties/Poissons ratio, plastic properties/tensile strength, and capillary
entry pressure/porosity pressure are required. This offers invaluable information in terms of constraint of potential producibility of unconventional plays.
In summary:
Basin modeling is highly influenced by data availability. It is important to
establish well-constrained boundary conditions and paleogeometries;
Determining an accurate heat flow through structures and time is essential
as this is reflected in the thermal maturity levels of source rock intervals;
Detailed kinetics of source intervals are required to accurately predict generated hydrocarbon phases and volumes; and
Vertical and lateral facies distributions have a great influence on the model
as they determine the hydrocarbon migration routes and stratigraphic accumulation occurrence.
This study highlighted the potential variations in results that can be achieved
by using differing approaches to model-building. For example, the basin-scale
model indicated that there is a predominance in oil accumulations following
simulation, whereas the 3-D cube interpreted the petroleum system to contain a
predominance of gas accumulations. The basin-scale model also failed to identify overpressure occurrence within the subsurface.
Such information is invaluable to the exploration industry. The prediction of
sensitive outputs can offer a constraint on exploration activity, leading to an
assessment of the potential risk of any petroleum system.
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FIGURE 4. The pressure vs. depth plot for the basin-scale model (a) is compared to the
FParadigm
pressure vs. depth plot for the 3-D cube (b).
79
MWD/LWD
LWD data allow evaluation

of producible zones offshore Brazil
Advanced formation evaluation measurements lead to improved understanding
of mineralogy and fluid composition in carbonate reservoirs.
Paolo Ferraris and Irina Borovskaya, Schlumberger
s wells are getting deeper and more expensive,

early identification of reservoir potential is necessary for critical decision-making, particularly in highcost environments like deepwater exploration blocks.
Demand is high in Brazil for services that positively
identify and quantify not only the presence of hydrocarbons but also the flowing capability.
Petrophysical formation evaluation using LWD measurements has become a new requisite when drilling in complex-lithology carbonate reservoirs offshore Brazil. These
reservoirs are difficult to characterize, presenting unique
challenges for measuring porosity, estimating permeability, and assessing producible zones. The combination of
two LWD tools a compact multifunction LWD collar
located close to the bit delivering traditional triple combo
logs and advanced measurements like sigma and spectroscopy and a dedicated nuclear magnetic resonance
(NMR) collar provides suitable inputs for enhanced formation evaluation in this challenging environment.
This petrophysical evaluation and textural analysis of carbonates uses LWD data. (Images courtesy of Schlumberger; data is
reprinted with permission from OGX Petroleo)
Evaluating carbonates in the Campos basin

Drilling in complex carbonates with variable cementation is a slow process. ROP rarely exceeds 10 m/hr (33
ft/hr) and is commonly less than 5 m/hr (16 ft/hr). But
the low ROP, while not too desirable in drilling terms,
provides significant benefits for accurate petrophysical
measurements since data of unprecedented quality are
acquired without requiring additional rig time.
The first challenge in properly evaluating complex
carbonate formations is computing an accurate porosity.
In most Brazilian carbonate reservoirs the matrix composition is not constant due to the depositional environment and diagenesis. Identification of rock matrix is
crucial since matrix density plays an important role in
the porosity computation. The Quissam formation
(Maca Group) reservoir has complex mineralogy consisting of carbonate rocks deposited during the Albian
(Upper Cretaceous) age. The formation is part of the
Campos basin. The reservoir interval is partially dolomi80
tized in its lower half, with shoaling upward cycles from

matrix to grain-supported rocks. In its upper part the
reservoir is mainly composed of beds of grain-supported
limestone with secondary siliciclastics-richer intervals.
Carbonates also have additional challenges related to
porosity distribution, which tends to be more irregular
than in sandstones. Total porosity may not be sufficient to
predict rock producibility. Pore size distribution pattern
has an equal or larger impact on permeability than the
overall porosity. High water saturation does not necessarily
imply water production. Small pores could store a significant volume of water that will not flow due to capillary
forces. Identifying the amount of mobile water, or the difference between total water and bound water, is critical to
predict which formation fluid will flow.
In carbonates it is useful to discriminate producing
zones from micritic zones that may have similar porosities.
Pore size distribution, which is closely related to the TMay 2013 | EPmag.com
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MWD/LWD
squared distribution delivered by NMR, is the key for

doing so. The challenge is to have a reliable and repeatable measurement for a quantitative analysis.
Magnetic resonance while drilling

LWD technology now includes NMR acquisition capability
providing information on textural differences vital for
characterizing the most prolific zones and resolving formation evaluation as well as geosteering challenges.
The proVISION Plus magnetic resonance LWD service
delivers accurate lithology-independent porosity and
continuous T-squared distribution for real-time assessment of reservoir producibility. The T-squared waveform,
streamed in real time from the downhole tool to surface
and then from the rig to remote decision-making monitoring centers, contains embedded facies and permeability information.
82
Evolution of multimineral
formation evaluation
The proVISION Plus LWD tool provides direct hydrocarbon detec-
Petrophysical evaluation in low-angle pilot wells is generally performed using traditional wireline measurements.
In high-angle wells either LWD or combinations of wireline and LWD logs are used. When using LWD data acquisition it has been fundamental to qualify the data provided
while drilling to guarantee consistency and compatibility
of the analysis performed.
The traditional approach used for petrophysical analysis
is based on combining neutron, bulk density, and gamma
ray measurements to estimate porosity, fluid properties,
rock apparent density, shale volume, and mineralogy. The
addition of deep- and shallow-reading resistivities helps differentiate water and hydrocarbons in virgin and invaded
zones. These measurements are the foundation of petrophysics. But with limited inputs and many unknowns,
formation evaluation and characterization in complex
lithologies have significant uncertainty based on intuition
and experience without guaranteeing a unique solution.
This approach and relative risks are not acceptable in a
high-cost deepwater environment.
In addition to the standard suite of gamma ray, resistivity,
neutron porosity, and density measurements, acquisition of
NMR, spectroscopy, and sigma measurements has proven
critical to evaluating complex carbonate formations.
The availability of spectroscopy data greatly reduces the
uncertainty by providing detailed, quantitative information about the rock mineralogy. Spectroscopy data are
predominantly sensitive to rock composition and are
used to directly drive the matrix determination based on
predefined end points characterized in a laboratory. The
methodology becomes highly scientific and removes the
of which are needed to optimize wellbore trajectory and comple-
tion, pore size information, and lithology-independent porosity, all
tion design in complex reservoirs.
need for an educated guess. Focusing on matrix and fluids

separately transforms a complex problem into the sum of
two simpler analyses.
For fluid saturation computation a valuable measurement is sigma, which is especially sensitive to the amount
of chlorine present and can easily differentiate formation
water from hydrocarbons when water salinity is sufficiently
high. In typical carbonate formations encountered in
Brazil water salinity lies in the optimum range, providing a
large contrast between hydrocarbons and water. Sigma is
used to provide a resistivity-independent volumetric solution when invasion is small or, more generally, to characterize the filtrate-invaded zone.
The EcoScope multifunction LWD service provides
both sigma and spectroscopy in addition to the traditional measurements.
To finalize the problem definition, NMR provides the
missing information. The integrated porosity in the Tsquared distribution up to the bound fluid cut-off defines
the amount of unmovable fluids. With the recent improvement in accuracy and the extension of the T-squared distribution range toward short T-squared distributions, the
NMR-derived bound fluid volume can be directly associated with the amount of irreducible water using a multimineral solver.
It is essential to have these advanced LWD measurements as soon as possible after drilling to facilitate
informed decisions related to well placement and reserMay 2013 | EPmag.com
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MWD/LWD
voir analysis. Collocation of the measurements also provides greater confidence in the interpretation, eliminating
or reducing time-dependent invasion effects. The combination of the elements mentioned above allows evaluating
mineralogy and fluid composition of the carbonate rocks
encountered both in post-salt and presalt carbonates offshore Brazil. This analysis is performed in real time while
drilling to estimate net-to-gross and reservoir quality.
Images are used to compute dips and adjust borehole
inclination to follow the reservoir sweet spot.
Case history
While drilling a complex carbonate reservoir in the Campos basin, an operator required an LWD analysis to identify producible zones. An 8-in. high-angle borehole was
drilled with synthetic oil-based mud using a bottomhole
assembly that included a rotary steerable system and multifunction and magnetic resonance LWD services. All data
were streamed in real time to enable complete formation
evaluation while drilling.
In the petrophysical evaluation and textural analysis

performed with LWD data, the top of the carbonate interval was shown to be tight, with no free fluid. This was
followed by a progressive improvement in texture and
porosity, achieving the best reservoir characteristics toward
the bottom of the zone as illustrated by the micro-mesomacro porosity split. The permeability estimations were
confirmed by modular formation dynamic tester stations.
Overall, the quality of the estimation positively contributed
to an understanding of reservoir behavior. The highquality, real-time NMR data provided a comprehensive
description of the carbonate reservoir rocks based on
hydrocarbon detection to optimize placement of the
wellbore. Drilling in carbonates inherently supports
the LWD choice since drilling with relatively low ROP
in these formations can help to acquire better quality
log data without requiring extra rig time.
This article is based on Technical Paper IBP1218_12, which was
presented at the Rio Oil and Gas Expo and Conference 2012.
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MWD/LWD
LWD fluid analysis sampling,

testing reduces development risk
Flow-assurance designs depend on high-quality PVT data. New sensor technologies
improve the understanding of the hydrocarbon PVT properties.
Francisco Galvan-Sanchez, Baker Hughes
WD formation testing and sampling will continue to

be important assets to the oil and gas industry for
many decades. The vital information provided by these
services is used throughout the life cycle of a reservoir,
especially during the initial assessment, to determine
the commercial potential of a project. This assessment
includes estimates for producibility, fluid type and composition, fluid phase behavior, production facility
design, and flow assurance.
These estimates are critical to the long-term success of
a project because subsequent intervention or redesign
could affect the projects economic viability. The capabilities and efficiencies of LWD formation testing tools
are dramatically changing the value of formation sampling and testing programs.
With an advanced LWD fluid analysis sampling and
testing service it is now possible to obtain pressure measurements and capture fluid samples in environments
where wireline operations may be difficult to conduct,
such as in extended-reach or horizontal wells.
As real-time pressure-volume-temperature (PVT) simulation and formation sample collection is obtained

closer to in situ conditions, a more accurate determination of produced fluid composition is necessary to
improve project cycle times and reduce development
risks. An optimized single-phase sampling program
with real-time PVT predictions and real-time contamination monitoring can improve the data accuracy and
quality of fluid samples collected from a reservoir.
New sensor technologies measure real-time physical
properties of hydrocarbons such as density and viscosity,
which can improve understanding of hydrocarbon
PVT properties.
Impact on efficiency, quality

Baker Hughes FASTrak LWD fluid characterization
service offers wellsite fluid sampling and pressure testing.
The portfolio of services was designed to acquire pressure
tests and representative single-phase fluid samples.
Flow-assurance designs are heavily dependent on
high-quality PVT data. The quality of the data is crucial
because an inaccurate gas-oil ratio (GOR) estimate from
a contaminated or misrepresentative sample can lead to
faulty production facility designs. In
turn, this can lead to platform production problems because the facility was
inadequately designed to handle the
associated gas production.
It is well known that changes in temperature and pressure regimes affect
the overall formation testing and sampling quality. Sample integrity can be
monitored with the LWD formation
sampling and testing tool from the first
time the sample enters the tool until it
is transferred to the laboratory facilities for analysis.
FIGURE 1. The LWD formation sampling
and testing tool is positioned within the
formation interval by the drillstring.
(Images courtesy of Baker Hughes)
86
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IM
MWD/LWD
Detailed service description

As with any formation testing tool, the fundamentals of
sampling and pressure testing remain the same. Operations commence when the LWD formation sampling
and testing tool is positioned within the formation interval, as is shown in Figure 1. Annular pressure in the
borehole is measured before the pad or packer extends
from the tool and seals itself against the borehole wall.
The packer isolates the hydrostatic pressure in the
borehole from the internal test and measurement system of the tool. Initially, a small quantity of fluid is
drawn into the tool to confirm that a packer-to-formation seal has been achieved. The formation pressure is
then recorded using a fast-response quartz gauge. As
fluid flows into the tool, the pressure increases to a final
stabilized value. The pressure buildup profile provides
information about the mobility of the formation fluid. A
dual-action piston pump draws formation fluid in repeat
drawdowns and discharges fluid into the wellbore or
into one of the tools sample chambers.
A variety of sensors within the fluid analyzer module
also is available to measure the properties of the fluid to
help distinguish mud-filtrate from formation fluid. The
additional fluid compositional properties of density, viscosity, GOR, compressibility, and sound speed can be
measured, enhancing understanding of the fluid type,
contamination level, and composition. When the mudfiltrate contamination is at a minimum level, the sample
can then be directed into one of the sample tanks for
future analysis.
The tool consists of four modules (Figure 2). The
power module is a mud turbine-alternator system that
provides the tool string with the power to extend and
retract the sealing element, open and close the valves
within the modules, and operate the fluid ID sensors.
The module also provides power to the drawdown pump
during pressure testing and the cleanup operation.
The pump and analyzer section is the heart of the
tool. It contains the pad-sealing element, quartz pressure gauge, sample pressure strain gauge, multiple temperature sensors, drawdown pump,
and fluid analyzer. At the
core of the fluid analyzer are four sensors: the piezoelectric tuning fork that measures density and viscosity, the
acoustic transducer, the temperature sensor, and the
refractometer.
The tank module is capable of carrying up to four
tanks per module. If required, four tank modules can be
connected in a series, providing the capability of retrieving up to 16 single-phase fluid samples in a single run.
The termination substructure provides an exit to the
wellbore for the contaminated fluids while the system
is cleaning and before taking the fluid sample.
Field operation summary

Since the introduction of this technology to the marketplace in 2011, more than 11 projects have been completed. Most of the projects performed have been in
highly deviated wells where sampling with wireline was not
an option or have involved mitigating the risks of sticking
during the sampling and pressure-testing operation.
These field tests demonstrated that the LWD service
is capable of taking wireline-quality measurements in
extremely challenging borehole environments. In
Trinidad the service successfully performed pressuretesting and real-time fluid analysis and recovered three
single-phase samples while drilling a 91-m (300-ft) section at 70 deviation.
On a logging run in the Netherlands, the service
accurately took 25 formation pressure points and clearly
identified three distinct gradients. The customer targeted four zones of interest and acquired 11 samples,
including six single-phase samples in the oil zone, two
single-phase samples in the water zone, and three singlephase samples in the gas zone. This pressure-testing and
sampling operation was executed in a 1,307-m (4,313-ft)
tangent section at 73 inclination.
The service also was used to determine the presence
of moveable fluids in the reservoir of a horizontal development well for a customer in Norway. The tool was
positioned at a sampling station with a mobility of 1.8
mD/cp, and after nearly five hours of pump-out at that
station it successfully acquired the first sample. After
another four hours of pump-out at the same station,
the tool acquired the second sample.
FIGURE 2. The pump and analyzer section

is the heart of the tool with its four sensors: the piezoelectric tuning fork, the
acoustic transducer, the temperature
sensor, and the refractometer.
88
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Houston, TX 77060
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European Address
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+39 (0523)354351
info@drillmecinc.com
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MWD/LWD
Unique MWD system designed for

drilling unconventional wells
The key to providing a solution for land-based unconventional drilling operations
is a system that meets the needs of the customer from a measurement and
reliability standpoint and also has a very low cost of ownership.
Steve Krase, Ryan Directional Services
new family of MWD tools has been designed specifically for the land-based unconventional drilling market. These tools were designed to meet the technical and
operational requirements and also fit the existing cost
structure associated with drilling unconventional reservoirs on land. The AccuSteer MWD system includes a surface system that eliminates the need for dedicated MWD
personnel at the well site, enabling remote monitoring
and remote directional drilling.
The measurements provided by these downhole systems
are focused on providing the information specifically
required for efficient wellbore placement, which includes
drilling dynamics data and annulus pressure for drilling
efficiency and formation measurements for geosteering.
All of the measurements required for an MWD system

designed for drilling unconventionals are well proven and
available from many different companies. However, most
of the systems currently being used to drill the horizontal
wells were either developed for offshore applications or
for more basic directional drilling applications. In the
case of the systems designed for offshore use, the cost and
packaging are not ideal for land-drilling operations where
the daily operation spread rate can be 10% of the cost of
an offshore operation. In the case of the systems originally
designed for more basic directional drilling applications,
the reliability and measurement capability is lacking.
The key to providing a solution for these land-based
unconventional drilling operations is to develop a system
that meets the needs of the customer from a measurement and reliability standpoint and also has a very low
cost of ownership, thereby enabling these services to be
provided at an affordable rate.
The drivers that control the cost of ownership for MWD
systems are capital cost, reliability, power consumption,
repair, and maintenance. One of the biggest contributors
to cost of ownership is system length. Since most MWD
systems are manufactured using nonmagnetic material
such as beryllium copper and austenitic steels, increased
length equals increased capital cost. Additionally,
increased length typically requires additional electromechanical connectors, and these can add to the cost
and system complexity.
When designing a reliable system, simplicity is critical;
therefore, the number one driver in this system is keeping the entire system length less than 12.1 m (40 ft) but as
close to 9.1 m (30 ft) as possible. This length constraint
also has a practical aspect in terms of logistics. There are
transportation and handling issues associated with assemblies that are greater than 12.1 m in length.
FIGURE 1. This cross section of the new MWD system illustrates the
Efficient wellbore placement
placement of the gamma detectors. Mud flow is through the cen-
The primary application of an MWD/LWD system used

in drilling an unconventional well is to ensure proper and
ter (white circle). (Images courtesy of Ryan Directional Services)
90
System cost kept to minimum
IT IS TIME TO STEMULAT E YOUR DRILL STRING!

INTRODUCING
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BENEFITS
LOAD MODULE
PULSE MODULE
Designed to induce axial vibration in the Drill String

Reduces friction drag & sticking
Consists of a Pulse Module and Load Module
Load Module has a "pump open a rea " hig her than a
Shock Tool or Drilling Jar of similar size.
Unlike a Shock Tool the Load Module is desi gned to
maximize instead of absorb vibration.
HOW IT OPERATES
The flow of drilling mud throug h the Stemulator ' to the BHA operates a rotary valve mechanism
in the Pulse Module producing pressure impulses moving up and down t he mud column. The
upstream pressure pulses activate the annular piston in the Load Module creating axial forces
in the drill string.
The Stemulator " i s des igned to be inserted above the BHA in a location that best enhances
the drilling penetration rate. That distance is typ icall y 2000 feet behind the drill bit . The piston
mechanism of the Load Module is wei g ht set meaning the Stemulator ' tool should be run
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IfI
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200 - 300 gpm
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MWD/LWD
efficient wellbore placement. Ryan Directional Services

defined efficient wellbore placement as the ability to
place the wellbore precisely within the geological model
developed by the operator in a cost-efficient manner. To
achieve this, as with all MWD systems, the applications of
drilling and geology must be addressed. This includes
ensuring that the measurements required for directional
drilling and geosteering are included. Additionally, the
need was identified for a system that could provide
drilling efficiency measurements in a cost-effective manner. This application has been severely overlooked and,
if properly addressed, will provide significant benefits to
the drilling process.
The precise positioning of a horizontal well requires
not only accurate sensors but also changes in survey practices. As an example, accurate and continuous inclination
measurements provided while rotating have been in use
and proven effective in the offshore environment. It was
critical to design this feature into a new system. The com-
surface and downhole data. It is not reasonable to expect

that measurements of rpm, weight on bit (WOB), and
torque on bit (TOB) at the surface are good indications
of what is actually occurring downhole.
Although these measurements have been available for
decades, they are rarely run in the land environment as
they cannot be provided at a low enough cost by the service companies. Additionally, the challenge remains in
developing a system that can take the downhole drilling
dynamics data and present them in a fashion where decisions can be made in real time.
Real-time drilling optimization requires real-time monitoring of near-bit measurements to maximize ROP while
not exceeding the mechanical limits of the bottomhole
assembly (BHA), which includes MWD systems. Adjustment of drilling parameters such as WOB, rpm, and flow
rate requires real-time monitoring of the dynamic loads
in the BHA to achieve the objective of wellbore construction in the shortest duration of time. In addition to
FIGURE 2. The AccuSteer MWD system includes survey measurements, drilling dynamics, pressure, and gamma imaging for geosteering.
pany decided to position this measurement at the lowest

possible point in the MWD assembly since the closer the
measurement of inclination is to the drill bit, the more
useful the measurement becomes.
Geosteering
The large majority of unconventional wells drilled today
are being drilled with a nonazimuthal gamma-ray measurement. However, most of these applications would benefit from an azimuthal gamma-ray measurement that
provides images indicating the direction of the approaching beds. Therefore, Ryan concentrated a large part of its
efforts on developing a state-of-the-art gamma imaging
system. Several different gamma detector packaging concepts were modeled to determine which concept would
be best suited for this application.
Drilling efficiency
Many drilling practices that have become accepted and
practiced on land for years may not be considered best
practices for unconventionals. The challenge remains
to be able to make informed decisions on changes to
drilling practices and parameters based on combined
92
mechanical measurements of downhole WOB and rpm,

measurements of TOB, bending on bit (BOB), shock,
and vibration have been included.
There are several applications and benefits for measuring pressure downhole while drilling. The primary application is the direct measurement of equivalent circulating
density (ECD). The measurement of annulus pressure
while drilling provides a real-time measurement of ECD,
which can alert the driller to ineffective hole cleaning
and prevent issues related to seriously over-balanced conditions. The availability of these data in real time eliminates the guesswork normally associated with this process.
With the advent of managed pressure drilling (MPD)
systems the need for an accurate measurement of annulus pressure to determine ECD has increased significantly.
In an MPD application the annulus pressure measurement has proven to be beneficial when used to calibrate
the MPD models. A measurement of internal bore pressure also was included which, when compared to the
annulus pressure, will yield a direct measurement of differential pressure. This measurement can sometimes be
used to diagnose issues with the drilling motor and the
drill bit.
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MWD/LWD
LWD formation testing improves

evaluation efficiency
A new LWD formation tester allowed an operator in Gabon to move its entire formation
evaluation program to an LWD platform, reducing rig time and improving hole placement.
Jeffery Hemsing, Weatherford International
WD technology has proven itself as a reliable means to

shorten rig time, stay in zone to enhance well productivity, and more efficiently reach target depth. Formation
pressure MWD has been viewed as a specialty service, in
most cases being limited to use in offshore drilling programs or complex wellbores. A need for optimized LWD
systems presented an opportunity for the development of a
formation pressure tester as part of a large LWD campaign.
Weatherford developed the new PressureWave LWD formation pressure tester (Figure 1) and deployed it in three
wells for an operator in Gabon. To better understand the
impact of formation tester placement within a bottomhole
assembly (BHA) and the concurrent impact of varying
operating steps, different BHA designs were used for the
individual wells along with different operating procedures.
LWD formation testers

Formation testers create a mechanical seal with the formation through a hydraulic cylinder that extends out from
the tool body and seals tight against the wellbore, isolating
the contacted area from the wellbore. Once a seal is created, a mechanism lowers the pressure inside the tool and
the connected reservoir section(drawdown). Once the
drawdown stops, reservoir fluid is then free to flow into
the tool, eventually equalizing at formation pressure.
LWD formation testers are specially designed to accommodate use in the BHA. The formation tester must be
ruggedized to operate in downhole conditions where
temperature, pressure, shock, and vibration can be
extreme. This proved challenging as formation tester
tools rely on delicate crystal quartz gauges and moving
mechanical parts to provide the measurement.
LWD formation testers transmit data and receive commands via mud-pulse telemetry. In some instances the
telemetry pulses may be visible on the pressure signal
and induce noise that can cloud the true formation pressure. Measured pressure fluctuations of up to 5 psi
around true formation pressure are not uncommon.
94
In addition, mud-pulse telemetry does not

afford real-time control, meaning that the LWD
formation tester must operate autonomously
downhole. Onboard memory is available to
store formation pressure data while the tool is
deployed. These data are downloaded and
processed once the tool has returned to surface.
Geology and reservoir

considerations in Gabon
The new tool was deployed in a heavily interbedded sandstone formation. The fine laminations
and interbedding create complex fluid flow
paths and directly impact the production profile
within the reservoir. The varying thickness of
the sand bodies, ranging from less than 1 m to 3
m (3 ft to 10 ft) along the wellbore, dramatically
affects reservoir productivity.
The reservoir also lacks significant interconnectivity, with some producing regions experiencing 900 psi to 1,000 psi depletion while other
regions remain at original reservoir pressure. A
formation tester can identify the areas within
the reservoir that are either well connected or
isolated. The measured pore pressures reflect
the impact of production activity away from the
near-wellbore environment and identify areas of
suboptimal production.
Permeabilities ranging from a few hundred
millidarcies (mD) to less than 1 mD within the
same well further increase the difficulty in
acquiring accurate formation pressures in this
field. But while the reservoir is geologically
complex, the formation itself is at benign conditions, typically less than 1,500 m (4,921 ft) true
vertical depth and less than 60C (140F).
FIGURE 1. The location of the PressureWave LWD formation pressure tester in the BHA was evaluated in three
wells. (Images courtesy of Weatherford International)
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MWD/LWD
Field runs in three wells

An initial series of trials was conducted using LWD. Three
wells were chosen to investigate the impact that changes to
operating pressure and formation tester placement within
the BHA assembly would have on the data acquired.
Well 1 Formation tester at the top of the BHA. For the
first well the formation tester probe was placed approximately 25 m (75 ft) above the gamma ray correlation sensor located at the bottom of the resistivity collar. The
testing program called for reaching the termination
depth and then proceeding with a bottom-up correlation
pass to acquire high-resolution formation evaluation data.
This correlation pass would confirm the depth of the target sands, thus increasing the confidence in placing the
formation tester probe in the correct location.
Once the correlation pass was complete, the pressure
station acquisition began, working from the top to the
bottom of the reservoir section. At each measurement
location the formation tester was lowered past the station
depth, followed by reversing the pipe direction and pulling
the formation tester upward into the desired station depth.
Well 2 Formation tester near the bottom of the BHA. In
this well the formation tester was placed below the triplecombo logging suite directly below and within 8 m
(26 ft) of the gamma ray correlation sensor. This placed
the formation tester closer to the bottom of the hole.
The testing operation was planned such that the correlation pass and the pressure measurement were conducted
in the same run, with correlations being performed
between pressure stations. This placed additional stress on
the field engineers since the operation was continuously
shifting between testing and correlation activities.
While this testing procedure would theoretically maximize efficiency, an evaluation of the data provided useful
insights. A significant portion of the testing run was allocated to nontesting time attributed to rig activities such
as tripping, making connections, or maintenance. This
nontesting time was not apparent in the previous wells.
Placing the formation tester directly above the mud
motor increased the difficulty in directional steering.
Further directional drilling difficulties arose when large
amounts of reactive torque more than 900 in some
instances were believed to have originated at the formation testers integral stabilizer. Since wells in this field are
targeting small subsurface locations, maintaining directional control while drilling is imperative.
Well 3 Formation tester at top, simultaneous correlation
and pressure testing. The third well was drilled using the
same BHA configuration as the first well but followed the
testing program of acquiring pressure stations and performing correlations in the same run. This operating pro96
FIGURE 2. A time-depth comparison shows a noticeable

increase in efficiency when the correlation and testing
activities are combined.
cedure yielded a success rate greater than 80% for pressure testing and coverage of a fairly large section.
Prior to this well, the highest success rate was in the
mid-70% range. The high success rate, coupled with a
quick operation, increased the operators confidence that
the optimal testing program had been found.
Comparing results
A comparison of the formation testing operations in
these three wells highlights a noticeable increase in efficiency when the correlation and testing activities are combined. In the second and third wells the number of
repeat stations was reduced, regardless of the interval
being tested. This is demonstrated in Figure 2, where
the depth-time plots of the three wells are overlaid.
The number of repeats and issues with probe placement are likely a result of continuous changes in pipe
direction. Small depth errors introduced by continuously
working the drillpipe up and down during testing may be
sufficient to cause a noticeable increase in the number of
repeats required. An improvement in the efficiency of the
pressure acquisition program marked by a decrease in
the number of repeats and failed tests was observed
when the pipe was moved in a consistent direction.
This study showed that an LWD formation tester is a
viable option for acquiring accurate pore pressure information, although the placement of the formation tester
in the drilling BHA impacts the ability to steer the well to
the desired subsurface target location. The integration of
formation tester operations into rig operations creates
the maximum measurement benefit while reducing testing time. The best results are obtained by simultaneously
combining pressure acquisition with correlation.
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ULTRA-DEEPWATER
PRODUCTION
Collaborative efforts turn technical

challenges into successes
Tight formations and HP/HT are just two of the many challenges that ultra-deepwater
producers will face in the future that will require collaboration to solve.
Jennifer Presley, Senior Editor, Production
n the days of old, people believed mischievous spirits

were up to no good when bad things occurred. Over
time, with the assistance of math, science, and a sizeable
dose of creativity, those beliefs have gradually changed.
Columbus put to bed the one-time popular belief that
the earth was flat, just like Neil Armstrongs little stroll
confirmed that the moon was not made of green cheese.
Building upon the foundations these early collaborative efforts set and dictated by the need to think outside
the box, it was made possible for humans to plumb the
ocean floors of the ultra-deep waters offshore to facilitate the recovery of hydrocarbons from deeply buried
reservoirs. Intricate highways of pipelines and production modules lie miles below the surface to safely transport its passengers to shore. And while the technical
challenges in accomplishing such feats are many, operators have found that technology can help turn these
challenges into successes.
tor for FMC Technologies, the distance away from any

delivery plane, vertically or horizontally and vertically is
growing more important.
It is an interesting problem in that oil companies are
going to deeper reservoirs, which are higher pressures,
but by the time they get [the reservoir fluids] to the
seafloor, the fluids dont have enough energy to go the
remaining distance on their own to the delivery point.
So it is a weird paradigm.
It doesnt matter how much pressure youve got on
the inside. If it has to go a long distance, the pressure
might not be anywhere near enough to get fluids flowing at a decent rate, he said. So thats why you might
need pumps or compressors or separators that change
the density of the fluid to make it easier so that the pressure drop isnt as great to get from Point A to Point B.
Enter the genies

Skeels believes that overcoming distance and low flow
pressures is probably the biggest challenge facing off-
Getting down
to the basics
The roots of many offshore
technical challenges can be
traced back to two conditions:
pressure and water depth. The
greater distances from shore
that exploration has opened
up to production possibilities
also play a role.
According to Brian Skeels,
emerging technologies direc-
As operators begin producing in

deeper and deeper waters, the
greater distances from seafloor and
seashore increase the level of difficulty in recovering and transporting
oil and gas to market.
99
ULTRA-DEEPWATER
PRODUCTION
shore operators. But he also noted that extreme water

fighting each other, he said. Sometimes the way you
depths present an equally challenging obstacle.
would do things normally on land is different than what
Some of the technologies that attempt to make it
you would do in a pressurized environment. Its a differeasier for fluids to flow pumping, compression, or
ent environment, so the equipment needs to be
separation and the components associated with these
redesigned to adapt to that environment.
technologies, like pressure vessels or tanks, have seals
New perspectives, collaborative effort are key
that work really great from the inside out but not from
In adapting to the subsea, accessibility to perform mainthe outside in, he said. As we get into these very deep
tenance and repair is a more complex design considerawaters, the technologies that would help add energy to
tion. Subsea components are more robust and require
the flowstream could be thwarted by whats going on by
servicing in ways that are different from those compothe extreme water depth.
nents found on a platform. The use of ROVs and manipI like to differentiate between the two by calling one
ulators for the oil industry has helped ease the process
the red genie and the other the blue genie, he said.
of routine maintenance and repair procedures on comThe red genie is in the bottle and is trying to get out
ponents found in ultra-deep water.
and cause havoc, while the blue genie is the ocean tryAccording to Skeels, working with Schilling Robotics
ing to get into the bottle and cause an equal amount of
helps bring a different perspective to the drawing board.
havoc. The trick is in knowing how to keep them at bay
Its one thing to come up
in the process.
with these neat ideas for new
A few of the solutions
components thatll go on the
necessary to keep these
seafloor, he said. Its quite
two competing forces in
another to consider how to
check have been found
install it, how to maintain
through the reimagining
it, and how, in these great
of current technologies
depths and long distances,
for use in smaller and
to be able to do that. An
harsher environments.
understanding of the ROV
For example, weve been
side of things is a big help.
looking at separator techIt gives FMC Technologies
nologies that do not need
another perspective.
giant separator tanks, said
He added that he sees the
Skeels. These technologies
need for more and more
use much smaller pipes,
collaborative efforts to
and the inside of the pipe
tackle future challenges,
can be designed in such a
specifically HP/HT chalway that the oil and gas can
lenges that ultra-deep water
be separated out in a much
The increasing complexity of the technical challenges
will present.
smaller environment than
facing ultra-deepwater operators will require
Thats one big area that
what is traditionally done.
more industry collaboration to find solutions.
everybody is working. There
This technology was initially
are some things that we have
done to reduce the footprint
to understand fundamentally in materials, like seals.
size on platforms.
Materials behave differently at different temperatures.
FMC Technologies saw this as an opportunity to take
Also, some of this oil and gas is coming out of various
this similar technology and marinize it, or adapt it for
tight formations, almost as tight as what you see for
use underwater, said Skeels. Plus, its smaller size
shales. So there are a lot of interesting problems with
means it is more resistant to the blue genie trying to
getting this new generation of hydrocarbons out of the
crush it.
ground its corrosiveness and its makeup, he said.
And the deeper one goes, the more critical the
Because things are becoming so technically complex at
change is in engineering differences between platform
those kinds of depths, it really relies on a collaborative
and subsea production equipment.
effort as there are fewer simple answers to the problems
Thats what I mean by marinization and subsea. Its
down there.
trying to understand that there are two environments
100
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YEAR
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OMNI Houston Hotel I Houston , Texas
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THE C O N F E R E N C E, J U N E 18
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Topics at this year's Conference include:
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NGLs: Woes or New Oppo rtunities?
n Maximizing the Value ofYour Production
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ULTRA-DEEPWATER
PRODUCTION
Full speed ahead for

Brazilian FPSO vessels
Oil production in 2013 will start to catch up to exploration successes
in the ultra-deepwater presalt off the coast of Brazil.
Jennifer Presley, Senior Editor, Production
cabbie was asked during a recent press tour of the

Brazilian offshore maritime industries why many of
the more successful Formula One racecar drivers were
from Brazil. The Rio de Janeiro-based driver responded
that fearlessness is necessary to drive in a country that
until only recently had lax enforcement of its traffic
laws. Now it is different, he said. The rules force us
to go slow, but we still love to go fast.
Construction of 10 topside modules for the FPSO vessel
Cidade de Ilhabela is under way in SBM Offshores Brasa

Yard in Niteri outside of Rio de Janeiro. The Pelicano I crane
to operator Petrobras, the national oil company of

Brazil. This record feat, according to the company,
was achieved in only seven years after oil was first
discovered in the presalt in 2006.
In addition, the last 14 months have been witness to
the discovery by Petrobras of 53 prospects onshore and
offshore. Of the 25 offshore discoveries, 15 were in the
presalt. The company reports current proven reserves of
16.4 Bboe, a number that could double in a few years
due to the presalt discoveries.
One recent example of the companys exploration
success is its Sagitrio discovery. The company recently
confirmed the presence of 31API gravity oil in carbonate reservoirs 6,150 m (20,177 ft) below the surface. The
exploration well, informally known as Sagitrio, was the
first to be drilled in the BM-S-50 block and is located 194
km (120 miles) off the coast of the state of So Paulo in
1,871 m (6,138 ft) of water.
A look at the BP Statistical Review of World Energy
June 2012 shows the countrys thirst for oil is significant, with approximately 2.6 MMb/d consumed in 2011.
Production that year was approximately 2.1 MMb/d.
Petrobras estimated the demand for oil products in the
Brazilian market in 2020 to be 3.3 MMb/d.
To help close the gap, there are four refinery projects
under way in the country, which will add an additional
1.5 MMb/d of processing capacity and will increase
output to 2.2 MMb/d in 2016 and 3.4 MMb/d in 2020,
according to a Petrobras-issued statement. To help keep
the refineries flush with oil, the company has undertaken an ambitious project to develop its presalt as
part of a strategic plan that calls for 5.7 MMboe/d of
production in both Brazil and abroad by 2020.
barge is set to lift the modules into place onto the vessel when
it arrives from China this summer. (Image courtesy of Claudio
Filling the production need
Paschoa/BlackRock Photography)
To reach the 2020 goal, Petrobras announced in its business and management plan its intent to invest US $24.3
billion in exploration and $106.9 billion on production
development during the 2013 to 2017 period. In addition to these E&P investments, the company plans to
invest a total of $16.3 billion on infrastructure improvements. A considerable bulk of the investment will go to
This is a sentiment shared by the oil and gas industry

when one considers the speed at which the presalt layer
found offshore in the Campos and Santos basins is
being developed. Current production from 17 presalt
wells located in the two basins is 300,000 b/d, according
102
ULTRA-DEEPWATER
PRODUCTION
cover the construction, deployment, and contracting of FPSO units, with 38 new production
units planned to go operational by 2020.
In its latest report, the International Maritime
Associates (IMA) noted that there are currently
77 production floaters on order worldwide, with
FPSO vessels being in the highest demand at 44.
Of the 77 floaters on order, 26 are being built for
use offshore, with an additional 56 in the bid or
design stages of the planning cycle. In water
depths greater than 1,500 m (4,921 ft), the IMA
noted that there are 65 projects worldwide. Of
that number, 45% of those projects are for ultradeep waters offshore Brazil.
In March Petrobras and its Block BM-S-11
partners BG E&P Brasil and Petrogal Brasil
awarded a 20-year charter and operation of two Once on station, the FPSO vessel Cidade de Ilhabela will produce a
maximum of 150,000 b/d from the Sapinho presalt field in the Santos
FPSO vessels to the consortium QGOG/SBM
basin. (Image courtesy of SBM Offshore)
Offshore for production development at Lula
Alto and Lula Central in the Lula field located
month. The P-33 and P-37 platforms at the Marlim field
in the Santos basin presalt. According to SBM,
were joined by the P-53 platform at the Marlim Leste
the value of the dual-floater deal is $3.5 billion. The
field and the P-54 platform at the Roncador field in
contract is the largest ever received by the company.
shutting down for refurbishing.
Each FPSO will be connected to 18 wells 10 of which
According to the company, the fall in production was
are production wells and eight of which are injector
partially offset by the startup of three new platforms.
wells. Production is expected to begin in January 2016
The FPSO vessel Cidade de So Paulo started pumping
at Lula Alto and in March 2016 at Lula Central, accordoil from the Sapinho field in January. In February the
ing to Petrobras. Each FPSO vessel will have a processing
FPSO vessel Cidade de Itaja initiated production from
capacity of 150,000 b/d. Delivery of the vessels is
the southern post-salt area of the Santos basin, and
expected in November 2015 for Lula Alto and
operations started on a long-term well at the Sapinho
January 2016 for Lula Central.
Norte subsalt field.
Currently, SBM Offshore is building topside modules
Five production units planned for installation by
for the FPSO vessel Cidade de Ilhabela in its Brasa Yard
year-end 2013 will bring an additional 760,000 b/d
located in Niteri outside of Rio de Janeiro. The vessels
to the market once all are fully operational. In May
hull is being refurbished and converted at the Cheng Xi
the FPSO vessel Cidade de Paraty will go into production
Guangzhou ship repair and conversion yard. According
in the northeast area of the Lula field in the Santos
to SBM, the converted hull is scheduled to sail in summer
basin presalt. The unit has the capacity to process
2013 to Brazil for module integration, hookup, and com120,000 b/d.
missioning at the Brasa shipyard. The unit is scheduled to
First oil for the FPSO vessel P-63 is set to flow in July
be installed offshore in the first half of 2014 on the north
and in December for the TLWP P-61 located in the Papa
part of the Sapinho presalt field in the Santos basin.
Terra field in the Campos basin. Petrobras reported that
Production snapshot, future plans
the project calls for the drilling, completion, and interPetrobras announced at the end of March that domestic
connection of 30 wells in the field. Production capacity
oil output fell for a second consecutive month in Februis projected to be 140,000 b/d. The Roncador Project
ary. Domestic crude oil output fell 2.3% to 1.92 MMb/d,
Module III will see the drilling, completion, and interdown from 1.965 MMb/d in January. Output from overconnection of 17 wells to SS P-55, with first oil set for
seas operations fell slightly to an average 149,100 b/d,
September. The company will finish the year out with
down from 149,300 b/d in January.
the FPSO P-58 going online in the Parque das Baleias
Production was impacted by maintenance shutdowns
field in November. Production capacity for the P-55
at four offshore platforms in the basin during the
and P-58 is projected to be 180,000 b/d.
103
UNCONVENTIONALS:
NIOBRARA
The Niobrara brings

big numbers to Colorado
Operators in the Colorado Niobrara find success, with the state seeing the effect
in higher oil production numbers for 2012.
Staff Report
he last time Colorado experienced an oil production

rate as high as that of 2012, US President John F.
Kennedy was Time Magazines Man of the Year,
and the Berlin Wall had just begun construction.
According to a recent update provided by the Colorado Oil and Gas Conservation Commission, the states
oil production in 2012 reached its highest level since
1961. In its initial calculation of total oil produced the
commission found that production exceeded 48 MMbbl,
representing a 24% increase over 2011, which itself saw
a 20% increase over oil produced in 2010.
The state has experienced a steady increase in the volume of both gas and oil, with oil increasing since 1999 and
gas increasing since 1990. According to the commission,
the growth in oil production can be attributed primarily to
the giant Wattenberg field in the Denver- Julesburg (DJ)
basin. The commission attributed the higher numbers to
operators there combining improving technologies in
horizontal drilling and hydraulic fracturing to increase
production from the Niobrara formation.
The Niobrara Total Petroleum System

According to an analysis performed by the US Geological
Survey (USGS), the Niobrara Total Petroleum System
(NTPS) is a self-sourced system that produces oil and natural gas from fractured carbonate rock reservoirs in the
Upper Cretaceous Niobrara formation and equivalent
rocks of the Southwestern Wyoming Province.
Encompassing the area of the eastern and southeastern
Greater Green River basin of southwestern Wyoming and
northwestern Colorado, the Niobrara formation was
deposited during a major Late Cretaceous marine transgressive cycle that created conditions favorable for the
deposition of fine-grained marine carbonate rocks and
the preservation of organic matter.
Ranging in thickness from 275 m to 550 m (900 ft to
1,800 ft), the Niobrara consists mainly of interbedded
organic-rich shale, calcareous shale, and marl. The USGS
104
analysis found that the hydrocarbon source beds predominantly contain Type-II oil-prone organic matter with total
organic carbon contents ranging from 0.85 to 2.75 weight
percent. Thermal maturities range from less than 0.60%
RO along the eastern and southern flanks of the basin to
greater than 1.35% RO in deeper parts of the basin. The
analysis found that because of the fine-grained nature of
the Niobrara, petroleum production is dependent on fractures that develop in hard, brittle, carbonate-rich zones.
Burial-history reconstructions and petroleum-generation models show that the Niobrara entered the oil window between 72 million and 67 million years ago. Along
the shallow flanks of the basin the Niobrara remains in
the oil window. With continued subsidence and burial in
the deeper portions of the basin, the Niobrara reached
thermal maturities sufficient to crack oil to gas.
The USGS subdivided the NTPS into two assessment
units based on thermal maturity: a continuous oil assessment unit and a continuous gas assessment unit. The
continuous oil assessment unit is located in the updip
parts of the eastern and southern flanks of the basin
where thermal maturities are less than 1.35% RO and
generally are considered to be within the oil window. At
the time the analysis was conducted in 2005, the USGS
said that the mean volume estimate of undiscovered oil
resource for the Niobrara continuous oil assessment
unit was 103.6 MMbbl.
New JV extends presence in the Wattenberg

A new joint venture (JV) effort between Synergy Resources
and Vecta Oil and Gas has plans to jointly develop oil and
gas leases in Morgan and Weld counties, Colo., with each
company contributing acreage to the deal.
According to a statement issued by Synergy Resources,
the first area of mutual interest under the deal to be
developed covers 45,661 net acres, with Synergy holding
a 35% working interest. The second area covers close to
3,000 net acres and a 65% working interest in areas being
held by Synergy, the designated operator of both areas.
Synergy said that the two companies will work together
to acquire new proprietary seismic data across a portion of
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UNCONVENTIONALS:
NIOBRARA
Top 12 initial production wells in the Niobrara shale.
Flow
Operator
Well #
County, State
Location/Basin
Comp. Date
2,666.67 boe/d (16 MMcf/d)
WPX Energy
Rocky Mountain
701-4 HN1 Williams GM
Garfield, Colo.
4-7S-96W, Piceance
Dec. 2012
EOG Resources Inc.
2-01H Jake
Weld, Colo.
1-11n-63w, DJ
Dec. 2009
Chesapeake
Operating Inc.
33-71 25-1H Sims
Converse, Wyo.
25-33n-71w,
Powder River
Aug. 2012
1,677.3 boe/d
(4.94 MMcf, 854 b/d)
Chesapeake
Operating Inc.
29-33-70 1H Combs
Ranch Unit
Converse, Wyo.
20-33n-70w,
Powder River
May 2012
1,605 boe/d
(3 MMcf, 1,105 b/d)
Chesapeake
Operating Inc.
23-33-71A 3H Wallis
Converse, Wyo.
23-33n-71w,
Powder River
Sept. 2012
1,451.3 boe/d
(3.61 MMcf, 849 b/d)
Chesapeake
Operating Inc.
32-35-71A 1H Box Creek
Converse, Wyo.
32-35n-71w,
Powder River
Sept. 2012
1,441.67 boe/d
(2.2 MMcf, 1,075 b/d)
Chesapeake
Operating Inc.
25-34-71 STA 1H
Clausen Ranch
Converse, Wyo.
25-34n-71w,
Powder River
Aug. 2012
1,321 boe/d
Whiting Oil &

Gas Corp.
16-13H Wild Horse
Weld, Colo.
16-9N-59W, DJ
June 2011
1,243.3 boe/d (7.46 MMcf/d)*
Encana Oil & Gas
20-12H (K20OU)
Orchard Unit
Mesa, Colo.
20-8s-96w, Piceance
Jan. 2010
1,110.3 boe/d
(2.15 MMcf, 752 b/d)
Chesapeake
Operating Inc.
26-33-70A 1H York Ranch Converse, Wyo.
23-33n-70w,
Powder River
Aug. 2012
1,100 b/d
EOG Resources Inc.
10-16H Red Poll
Weld, Colo.
6-11n-63w, DJ
June 2010
1,075 boe/d**
SM Energy Co.
1-19H Atlas
Laramie, Wyo.
19-15n-64w, DJ
May 2010
1,831.3 boe/d
(367,875 Mcf, 1,770 b/d)
1,770 boe/d
(2.4 MMcf, 1,270 b/d)
(1.56 MMcf, 1,061 b/d)
As of April 1, 2013; Data Source: IHS Inc. Gas: 6 Mcf of gas = 1 boe
* Source: Encana Oil & Gas. ** Source: SM Energy
the oil and gas leases in the JV. Plans to drill a horizontal
well for evaluation purposes on one of the leases also were
reported by Synergy. The JV said that the drilling of an initial well to test the Greenhorn formation is expected to
occur by the end of October 2013.
The JV extends the net acreage position for Synergy in
the Wattenberg Extension Area by 36% to approximately
19,400 acres.
In a recent operations update on its Wattenberg field
assets, Synergy Resources Corp. said that it successfully
completed and brought into production 22 vertical wells.
Of the 22 operated wells, 20 were completed in the Codell
formation, one commingled in the Codell/Niobrara, and
one in the Greenhorn formation. Six of the wells were
brought into production during December and January;
the remaining 16 wells came online the third week of February. Synergy owns a 100% working interest in these wells.
Operator roundup
Bill Barrett Corp. recently completed a horizontal Niobrara exploratory test, the #24-10H Noyer in Laramie
County, Wyo., in the northern flank of the DJ basin.
The test initially flowed 319 b/d of oil, with production
from the horizontal lateral extending 2,327 m (7,635 ft)
106
with a total depth of 3,546 m (11,635 ft) and a true vertical depth of 2,217 m (7,273 ft). Tested on an 1864-in. choke,
the tubing pressure was 4,200 psi following an 18-stage
fracture stimulation between 2,353 m and 3,448 m (7,721
and 11,312 ft).
In a February 2013 presentation Bill Barrett Corp.
said that its DJ basin program is rapidly growing, with
approximately 65 gross and 45 net operated wells planned
for 2013. In addition, the company plans to participate in
approximately 20 wells operated by partners. The companys 2013 drilling plan targets the B bench of the Niobrara formation and is primarily focused on horizontal
development drilling.
Pad drilling was initiated by the company in the second
half of 2012 with three four-well pads. The average vertical
depth drilled was approximately 1,951 m (6,400 ft) plus a
1,219-m (4,000-ft) lateral with an average of 18 fracturestimulation stages.
The company had, as of year-end 2012, an approximate
74% working interest in production from 298 gross wells
and held approximately 76,000 net acres in the program,
including approximately 39,700 acres in the northeast
Wattenberg where the company plans to concentrate its
2013 drilling program.
UNCONVENTIONALS:
NIOBRARA
In addition to its success in the offshore, Noble

Energy also is seeing significant returns with its DJ basin
efforts. With net resources of 2.1 Bboe on approximately
640,000 net acres in the basin, the company has focused
its development strategy on oil with 85% of its production coming from the oil window, according to a report
released in April. The company said that it is rapidly
accelerating its development program with 500 wells
per year planned in 2016.
The company plans to double its 2012 activity in
two years, with 50% more wells in 2013 than in 2012
and 300 actual wells or 350 standardized wells on a
1,372-m (4,500-ft) lateral length. The company is
currently expanding its midstream infrastructure to
accommodate the increased production.
Two recent reports from Wunderlich Securities Inc.
and Morgan Stanley said that Noble is expected to add
200 MMboe to its reserves by year-end 2013. Noble plans
to drill 60 long laterals in the Niobrara in 2013, potentially confirming the design is applicable to much of its
DJ basin acreage, Morgan Stanley said. In addition,

the company plans to increase its rate of completions
in the Niobrara to 300 this year alone compared to 193
in 2012. The well count is expected to grow to 500 by
2016, according to Wunderlich.
Noble said in March that its DJ basin horizontal Niobrara completion in Weld County, Colo. the #33LC68HN Ptasnik-Federal-PC flowed 318 b/d of oil with
394 b/d of water. The well, located in Section 33-9n-59w,
is producing from a horizontal lateral extending 1,983 m
(6,506 ft) east to a total depth of 3,188 m (10,459 ft) and
a true vertical depth of 1,857 m (6,091 ft). The well was
tested after a 17-stage fracturing operation between 2,013
m and 3,157 m (6,604 ft and 10,359 ft). Tested on a 2064-in.
choke, the tubing pressure was 260 psi with a casing pressure of 910 psi.
Pacific Energy Development announced results from
three Niobrara completions in Weld County, Colo., that
were drilled in the 9,500-acre Indian Peaks 3-D area. The
#2 H Logan initially flowed 522 b/d of oil and 360 Mcf/d
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UNCONVENTIONALS:
NIOBRARA
of gas. Production from the DJ basin well is from a horizontal lateral in the Niobrara B bench. The lateral extends
northeastward to 3,935 m (12,911 ft), with a true vertical
depth of 1,863 m (6,112 ft) at a bottomhole in Section 207n-59w. The 1,935-m (6350-ft) lateral was tested after a 25stage fracture stimulation.
Condor Energy Technologys #2H FFT (Ford Family
Trust) well in Section 31-7n-59w was drilled to 3,446 m
(11,307 ft) with a vertical depth of 1,881 m (6,172 ft). This
venture initially flowed 424 b/d of 32API gravity oil, 80
Mcf/d of gas, and 984 b/d of water from a horizontal Niobrara interval at 2,016 m to 3,446 m (6,614 ft to 11,307 ft).
The #1H Waves is in Section 23-7n-60w and initially flowed
528 b/d of oil and 360 Mcf/d of gas. Production is from a
horizontal lateral in the Niobrara B bench zone extending
north-northeastward to 3,388 m (11,114 ft), and the true
vertical depth is 1,880 m (6,200 ft). The 1,323-m (4,339-ft)
lateral was tested following an 18-stage fracture stimulation. Condor has a location staked for a fourth horizontal
Niobrara venture in the area at #2H Waves in Section 18-
7n-59w. Pacific Energy Development holds a 31% net

interest in the Indian Peaks 3-D prospect.
The big news coming out of the Niobrara is WPX
Energys recent announcement of a shale discovery well
the company drilled in its Western Colorado acreage that
has produced more than 1 Bcf of natural gas in just more
than 100 days of operation. According to the announcement, the discovery well initially produced 16 Mcf/d of
gas at a flowing pressure of 7,300 psi. It registered an average production rate of almost 10 Mcf/d over its first 90
days despite being choked back substantially.
At this rate, the Tulsa-based company said that it expects
the Niobrara well to produce in its first four months what
a typical well in the Piceance basins Williams Fork formation produces over its estimated life cycle of 25 to 30 years.
The company believes this discovery has the potential to
more than double the companys proved, probable, and
possible reserves, which were around 18 Tcf of gas at yearend 2012. WPX started drilling its second Niobrara well in
April and expects to begin completion activities in June.
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109
MARINE
CONSTRUCTION
Majors deepwater push

is a force for change
The technical and logistical challenges facing the marine construction business
are mounting by the day, but they have the potential to drive significant change
in the capabilities of the equipment available in the market.
umerous challenges are being driven by the push

into deeper waters and more remote locations by the
major operators, and the contractors are responding with
innovative solutions.
Subsea 7s Seven Oceans pipelay vessel worked for Shell offshore Brazil on its deepwater Parque das Conchas project. Shell
said the industry still faces numerous challenges in the marine
construction business as it pushes the boundaries with new projects in ultra-deepwater and harsh environments. (Images courtesy of Shell)
To a large extent contractors must respond this way

since vessels need to be increasingly large to take care of
the growing size, weight, and complexity of equipment
such as subsea manifolds, spool pieces, seabed processing
hardware, umbilicals, and power cables. There also are
more complex and sophisticated inspection, repair, and
maintenance (IRM) and life-of-field requirements and the
awareness that more suitable vessels will be needed for the
growing likelihood of arctic developments.
110
Challenges
Shell, one of the biggest suppliers of business to the
marine construction community, outlined the challenges
it faces on numerous fronts in a recent presentation.
According to Keith Smith, offshore installation manager
for Shell International E&P, the companys growing list of
challenges on the technical front includes:
Mobilization and demobilization to and from
remote areas;
Ultra-deepwater pipeline installation;
Ultra-deepwater subsea lowering capacities;
Seabed roughness conditions;
Metocean conditions such as wind, waves,
and currents;
Installation of corrosion-resistant materials;
Welding and nondestructive evaluation of heavy
wall pipe;
Seafloor equipment IRM;
Pipelay electrical trace heating;
Abandonment and decommissioning unknowns; and
Marine vessel assurance.
Speaking at Quest Offshores MCE Deepwater Development (MCEDD) event in the Netherlands, Smith also
highlighted other challenges including ice-class vessel
capability, oil spill response in ice, winterization of vessels,
environmental challenges (air/water discharge), remote
area logistics, and technical integrity verification.
Political and economic challenges such as local content
requirements, project schedule pressures, and cost escalation also were flagged as significant issues. Unsurprisingly,
commercial issues such as the availability of installation
vessels, the competition for specialized installation equipment, the promotion of new (remote) technologies, and
knowledge management/intellectual property were noted
as challenges to be dealt with.
Smith outlined what he described as the deepwater
funnel characteristics of projects between now and 2017.
In terms of water depth this is broken down as follows:
North Sea: up to 1,100 m (3,600 ft);
Gulf of Mexico (GoM): 2,100 m to 2,800 m (7,000 ft to
9,000 ft);
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According to Shell, ultra-deepwater pipeline installation and

subsea lowering capacities are just two of the challenges both
it and its peers are facing offshore.
Brazil: 1,800 m to 2,200 m (5,900 ft to 7,200 ft);

Nigeria: 1,000 m to 1,300 m (3,300 ft to 4,300 ft); and
Asia-Pacific: up to 1,000 m (3,300 ft).
General considerations varying by region included subsea pumping and compression, subsea heat exchangers,
and the electrical heating of pipelines and flowlines.
Ultra-deepwater considerations included shut-in tubing
pressure of 13,000 psi to 15,000 psi and wall thickness of
1.3 in. to 2 in.
Shell has numerous challenges in the marine construction business as we continue to push the boundaries.
Some of our biggest challenges are in ultra-deepwater
and the Arctic, Smith said, adding that these have the
potential to drive changes in current marine construction equipment.
Added risks
Among a number of company officials presenting at
MCEDD was Jan-Pieter Klaver, CEO at Heerema Marine
Contractors (and a former project engineer himself). He
said the industrys move into deeper waters, with rising
contract values, came with added risks and technology
challenges.
In particular he raised the issue of materials. We see
the need for extreme material requirements, and the
way to deal with this is to have rigorous testing programs,
he said.
112
The sheer complexity of the new breed of projects is

extremely challenging, Klaver added, highlighting the fact
that the majority of deepwater projects by the industry in
the last 10 years have run over budget due to issues such
as technical complexity, local politics, and experience.
Managing deepwater projects is like being a juggler with
seven plates in the air, he said.
Klaver noted Heeremas preparations for dealing
with the markets increasingly demanding requirements
and the arrival later this year of its high-specification
deepwater construction vessel Aegir, which will,
among other things, have 2,000 metric tons of
pipelay tensioner capability.
Built at the Daewoo Shipbuilding and Marine Engineering yard in South Korea, the 210-m- (689-ft-) long,
46.2-m- (152-ft-) wide vessel is now at the Huisman yard
in Schiedam, Holland, where it will have a 4,000-metricton offshore mast crane and multilay pipelay system
installed, tested, and commissioned.
It is due to sail for the GoM for three weeks of testing in
September before starting its first project in that area for
Anadarko Petroleum.
The contracting community is able to respond to these
developing ultra-deepwater demands and increasing project size. The challenge is to control costs, schedule, and
quality, Klaver said.
Game-changers
Ceona Offshores vice president of engineering, Vibor Paravic, told delegates that the companys philosophy with its
large newbuild construction vessel Ceona Amazon was
essentially to overcome challenges such as logistics by
essentially taking the project with you.
In a game-changers session he outlined the newbuilds
planned role as a project execution vessel. The Amazon
will be a state-of-the-art multifunction dynamically positioned construction facility with large underdeck storage
capacity for line pipe or umbilicals and a deck area of
4,600 sq m (49,514 sq ft). This allows further storage of
line pipe and standard flexible installation reels.
The heavy-lift vessel is being fitted with two 400-metricton heave-compensated masthead cranes and a single 30metric-ton heave-compensated knuckleboom crane. The
pipelay system, meanwhile, will consist of an inclined lay
system with a top tension of 570 metric tons and a rigid
pipeline firing line system.
It will be able to lay rigid pipelines up to 16 in. in diameter in up to 3,000 m (9,843 ft) of water as well as flexible
pipelines and umbilicals and install large subsea structures
using one or both of its 400-metric-ton cranes in tandem
lift mode.
MARINE
CONSTRUCTION
It also will not need a spool base to support its operations, enabling it to operate in remote areas without logistical constraints, hence its claimed ability to enable clients
to take their projects with them.
The Ceona Amazon will be 200 m (656 ft) in length, having used a drill vessel hull, and able to carry up to 83 km
(52 miles) of 10-in. pipe or 40 km (25 miles) of 16-in. pipe.
Client-driven solutions
One of the major marine construction players, Subsea 7,
highlighted the impetus for new vessels given by single
clients. Dr. Stuart Smith, vice president of assets and technology, pointed out the same deepwater and remote
trends affecting the industry. There is a move toward
larger vessels to deal with a larger subsea kit including not
only manifolds and spool pieces but also the increasing
weight and length of umbilicals and power cables.
On top of this, vessels need to meet increased requirements and regulations for improved living and working
conditions while also being able to deal with technical
developments in varying pipeline and riser technologies

such as higher pressures and temperatures and sour gas
service. High performance pipe-in-pipe, lined pipe, and
buoy-supported risers were just some of the technologies
that were highlighted. All the surface ships have to be
capable of putting this lot in and connecting to all the different types of pipe, he said.
Last year Subsea 7 saw its Seven Borealis vessel come onto
the market, which Smith described as representing a move
into true engineering, procurement, installation, and construction project management. Another newbuild, the
Seven Waves, is due for arrival in 2014 and was driven by
just one client, Petrobras.
Another new vessel, the Seven Viking, arrived earlier this
year and is a life-of-field ship driven by another single
client, in this case Statoil.
The industry is significantly expanding, and the contractors landscape continues to change as well. The introduction of new technologies will continue, and new vessels
will continue to be introduced, Smith concluded.
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113
MARINE
CONSTRUCTION
New kids on the block shake up

subsea construction market
An emerging fleet of new and capable players is challenging the status quo.
Daniel Quarm, Derrick Offshore
he dominance of the subsea market held by heavyweights such as Saipem, Technip, and Subsea 7 is
slowly being chipped away. This is not to say that these
companies are not still the dominant force in the market, but where once they had almost total control, substantial contracts are now being awarded to some of the
newer entrants to the market.
Companies such as Ocean Installer and EMAS AMC
are showing that there is work to be won from international operators like Statoil and Shell, which have traditionally stuck with established contractors. There also is
a trend of more companies trying to break into this market, and a recent spree of speculative newbuild orders
placed for large subsea construction assets is starting to
flow from these companies.
One problem that all these relative newcomers face is
that more established companies can offer a complete
service package including diving services which all of
the other contractors like. There are a number of diving
contractors who can work with these companies, but
that is not always the most competitive option and can
hinder them due to the combined margins.
year-end 2013 with new dynamic positioning systems and

a new lay system.
There were plans to add another conversion, the OIG
Giant 3, but that was scrapped after the chosen yard
went into administration. The company is now planning
to build a 200-m (656-ft) variation of a drillship design
at an undisclosed German shipyard. This vessel, the
Ceona Amazon (Figure 1) will have a 570-tonne tensionlay system installed as well as two 400-tonne cranes.
Delivery is expected to be around early 2015.
Ceonas new, more modern fleet will place it in direct
competition with the likes of Technip and Subsea 7,
although Ceona currently lacks the depth of services
that these top players can offer. However, its majority
shareholder, Goldman Sachs, is looking to make the
company profitable sooner rather than later.
Support, pipelaying vessels added to fleets

Other companies also are starting build their fleets, such
as Reach Subsea, which in conjunction with Solstad Offshore has ordered an STX OSCV 03 design construction
support vessel from STX OSV (since renamed Vard) at a
cost of US $105 million.
Reach will charter the vessel, to be named the Normand
Reach, from Solstad at a cost of $60,000/d for at least five
years. Delivery is scheduled for 2Q 2014 with the vessel
Giants stay in; new Amazon enters game

Recent activity illustrates the efforts of some of the newer
players in this area. Ceona Offshore (formerly Offshore
Installation Group) has chartered the SX121 design vessel being built at the Ulstein Verft shipyard in Norway
from GC Rieber for five years, with five years of options.
The vessel is due for delivery in 1Q 2014 and is designed
for the subsea umbilicals, risers, and flexibles market,
with Ceona installing a 270-tonne vertical lay system.
Ceona has tried to break into the market before but
has struggled with converted vessels that have not met
the high standards required for the North Sea. The
companys current assets include the Blue Giant, currently performing accommodation work for Pemex offshore Mexico, and its second vessel OIG Giant 2, which
also is working offshore Mexico. The company is planning an extensive upgrade of the OIG Giant 2 toward
114
FIGURE 1. Ceona Offshores newbuild 200-m (656-ft) vessel
Ceona Amazon, due for delivery in 2015, is a variation on a

drillship design hull. It will have a 570-tonne tension-lay system
installed as well as two 400-tonne cranes and will be capable
of ultra-deepwater work. (Image courtesy of Ceona)
MARINE
CONSTRUCTION
accommodating a 250-tonne AHC subsea construction

crane and 100 berths. What the company does in the
meantime has yet to be decided, although most work for
this season has already been awarded, and the jobs left
unawarded for 2014 are dwindling.
FIGURE 2. DOF Subseas newbuild large construction vessel has

only recently been ordered and will have a 900-tonne crane
capable of carrying out substantial lifts in deep water, where
subsea equipment is becoming larger and heavier. (Image
courtesy of DOF Subsea)
One company that could throw a spanner in the works,

particularly for Subsea 7 and Technip, is DOF and its subsidiary DOF Subsea. The company recently ordered two
new vessels: one large construction vessel with a 250tonne crane, and an extra-large construction vessel with
a 900-tonne crane (Figure 2).
Neither of these vessels has solidified contracts, which
has led to the suggestion that DOF will look to keep these
vessels in-house to build up its own complete contracting
business. DOF has one of the largest subsea fleets in the
market, but most of its strategically important assets, such
as dive support vessels and flexlay vessels, are on charter
to major contractors such as Technip and Subsea 7.
If the company is intent on setting up its own integrated
service offering, it will likely take those vessels back once
their contracts have ended. Whether this will come to pass
is uncertain since there will be some financial details to
sort out, and all the vessels on charter to Subsea 7 and
Technip have several years left on their firm contracts.
Bibby Offshore, meanwhile, has looked to go the other
way when compared to companies such as Ceona and
Reach, building up its diving services and then looking
to add other subsea services.
Rather than pursue the top end of the market, it
appears to be looking at the light construction market
with its new company, Bibby Remote Intervention Ltd.
(BRIL). BRIL already has chartered the Toisa Warrior (Figure 3) from Sealion and is looking to expand its light construction fleet further for several jobs over the next two or
three years. The company also will continue to focus on
its diving fleet, which it recently invested in through the
purchase of the Bibby Polaris from Toisa.
Dont miss the boat

FIGURE 3. Bibby Offshore has targeted the light construction market via its new company, BRIL, which has chartered the Toisa War-
rior to carry out such work and is looking to further expand its
light construction fleet. (Image courtesy of Sealion Shipping)
McDermott is another company that is looking to

encroach on Subsea 7 and Technips market share in
the North Sea after a long absence working in the
Middle East and Asia.
The company has established a partnership with Ocean
Installer for the installation of rigid pipe lay, while it is
likely that its newest vessel in the North Ocean series, the
Lay Vessel 108, will be targeted for work around the North
Sea. To help it move into the North Sea sector, the company also has acquired the subsea engineering company
DeepSea, based in the UK. The move is aimed at helping
McDermott bolster its engineering capabilities.
Overall, the outlook for the subsea construction market

up to 2015 remains positive, which is why these companies
are making their move now before they miss the boat.
There is some uncertainty beyond 2015. Once all these
recently ordered vessels are delivered, there will be more
clarity on whether they are absorbed into the market
smoothly. It is likely that there will be some oversupply
once the fringe companies and those without experience
begin ordering vessels, which may not be up to the high
standards required for the North Sea in particular.
One current area where there is a shortage in the market is the light construction market for vessels offering
between 50-tonne and 150-tonne subsea cranes, deck
space of at least 750 sq m (8,073 sq ft), and accommodation for at least 60 people. The market for this type of vessel has tightened up a great deal, and there is very little
quality newbuilding activity in this area.
115
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Exhibitions
42 Reed
E-gy & Marinc
An expert panel of judges has selected the top 10 industry projects that open
new and better avenues to the complicated process of finding and producing
hydrocarbons around the world.
Cody zcan, Assistant Editor
he E&P editors and staff proudly present the winners of

the 2013 Special Meritorious Awards for Engineering
Innovation, which recognize service and operating companies for excellence and achievement in every segment of the
upstream petroleum industry. The following pages spotlight
the 10 winners the independent team of judges picked that
represent a broad range of disciplines and address a number
of problems that pose roadblocks to efficient operations.
Winners of each category are products that brought monumental changes in their sectors and represented techniques
and technologies that are most likely to improve exploration,
drilling, completions, production, field development, HSE,
and information technology efficiency and profitability.
This year some of the brightest minds in the industry from
service and operating companies entered innovative products
and technologies that have now been measured against the
worlds best to be distinguished as the most groundbreaking
in concept, design, and application.
The awards program recognizes new products and technologies designed by people and companies who understand
the need for newer, better, and constantly changing technological innovation to appease an energy-hungry world.
The winners were selected by an expert panel of judges
comprising engineers and engineering managers from
operating and consulting companies worldwide. Each
judge was assigned a category that best called on his or
her area of expertise. Judges whose companies have a business interest were excluded from participation. The products chosen by the judges represent the best of a long
list of winners.
E&P would like to thank these distinguished judges
for their efforts in selecting the winners in this years
competition.
This year E&P will present the 2013 awards at the Offshore
Technology Conference in Houston and the DUG Bakken
Conference in Denver.
An entry form for the 2014 Special Meritorious Awards
for Engineering Innovation contest is available at EPmag.com.
The deadline for entries is Jan. 31, 2014.
2013 MEA JUDGES

Ken Arnold
K Arnold Consulting
George King
Apache
Nelson Oliveros
ConocoPhillips
Scott Wehner
Chaparral Energy
Allen Bertagne
Consultant
Vianney Koelman
Shell
Cindy Reece
ExxonMobil
Stephen Wetch
Chevron
Mike Forrest
Consultant
Carlos Mastrangelo
Petrobras
Lanny Schoeling
KinderMorgan
Dennis Yanchak
Apache
Dick Ghiselin
Consultant
Carl Montgomery
NSI Technologies
John Thorogood
Consultant
David Zornes
Consultant
117
MERITORIOUS AWARDS
FOR ENGINEERING INNOVATION
COMPLETIONS WINNER
SCHLUMBERGER | KICKSTART PRESSURE-ACTIVATED RUPTURE DISC VALVE
eing involved with every stage in multistage well

ing sleeve in the tool opens a port exposing almost 360
completions is one of the most important advanof the formation.
tages an engineer can have in the process. Plug and
After this event pumping continues as normal, and
perf (PNP) techniques enable engineers to analyze and
a fracture is initiated at the formations weakest point.
adjust each stage of the process, applying changes and
Once the fracture has propagated to its designed height
knowledge gained to optimize operations. The first
and half-length, PNP operations are initiated for subsestage of the PNP method, however, can be time-conquent stages.
suming and can require mechanical intervention such
In the Eagle Ford shale, where PNP operations are
as coiled tubing (CT), stickpipe, or a downhole tractor
a favorite of operators in more than 75% of 4,000 wells
to ensure perforation. Unfortunately, this means the
in the area, the KickStart tool offers an advantage for
operation could suffer loss of productive time and a
engineers looking to facilitate the process, according
spike in operational expenses.
to the company. To avoid the use of CT or a wireline
Schlumberger has taken this common issue in PNP
tractor when attempting to perforate the bottom stage,
operations and provided a solution for operators in
this technology was used to complete 14 wells in the
its aptly named KickStart pressure-activated rupture
area. By eliminating mechanical intervention, it was
disc valve. This tool is used in the first stage of a PNP
estimated by the company that approximately US
operation, allowing fracture stimulation without the
$105,000 per well was saved when perforating the first
need for an intervention to perforate the casing,
stage of horizontal Eagle Ford wells. The valve successthe company said. The valve is run in-hole with the
fully handled large fracture stages of 250,000 lbm of
production casing and is spaced in the string such
proppant pumped at 65 bbl/min, Schlumberger said.
that it aligns with the first stage target formation
The technology has been implemented in more than
when the casing is landed and cemented in place.
300 wells worldwide. n
This gives operators the ability
to test the casing integrity prior
to the fracturing treatment
operation so that casing
operations can continue
without interruption.
Rock formations fracture when
their weakest point aligns with
maximum stress. The KickStart
tool targets that stress point by
exposing the formation outside
the casing to fracture pressure,
making sure that the fracture
aligns with the maximum horizontal stress plane. This reduces
the probability of a premature
screenout of the initial fracture
treatment by reducing tortuosity
at the fracture initiation point.
It accomplishes this after the
pumps are activated. Pressure
Cabot has used the pressure-activated rupture disc valve to complete 14 wells in the
begins building up in the casing
Eagle Ford shale. The company has saved nearly $1.5 million, or approximately $105,000
until one of two rupture disks
per well, by eliminating the need for CT intervention to perforate the first stage of its horibreaks at a predetermined preszontal Eagle Ford wells. (Image courtesy of Schlumberger)
sure. Once the disks break, a slid-
118
MERITORIOUS AWARDS
DRILLING OPERATIONS WINNER

M-I SWACO | RHADIANT ULTRA-HIGH TEMPERATURE NONAQUEOUS DRILLING FLUID
igh temperatures are becoming the norm as

companies push drilling operations into deeper
and hotter horizons. These high-temperature environments can share a predictable outcome when it comes to
sensitive instruments used on the field to measure and
drilling fluids: Things begin to wear down; characteristics
of drilling fluids are degraded; and companies are left to
deal with stuckpipe, barite sag, and well-control situations from irregular boreholes caused by the heat. Once
conditions affect the quality of logging measurements,
which are particularly susceptible to heat because they
are on bottom for extended periods of time, data can
be compromised.
RHADIANT, an ultra-high temperature nonaqueous
drilling fluid from M-I SWACO, has been lab-tested to
above 260C (500F). In these high temperatures, the
drilling fluid maintained its design characteristics, making it ideal when high-temperature well conditions were
encountered. One of three components that comprise
the system, the MUL XT emulsifier is used to withstand
difficult conditions such as ultra-high bottomhole temperatures. The emulsifier contributes to low fluid loss values and contains no nitrogen-based compounds that can
break down and release ammonia at high temperatures.
The second component is the ONETROL HT primary
fluid-loss agent, which maintains its stability in temperatures up to and above 260C. The final component is the
ECOTROL HT, which acts as a secondary fluid loss agent
that also maintains its stability at extreme temperatures.
RHADIANT resists acid gas contamination, controls
equivalent circulating density, improves tripping efficiency, and reduces mud loss and stuckpipe incidents,
according to the company. The low gel structure of the
RHADIANT system remains nonprogressive even in the
presence of low-gravity solids while still minimizing barite
sag. Low HP/HT fluid loss and the ability to generate a
high-quality filter cake help protect the wellbore and surrounding formation from invasion. In close drilling margins the equivalent circulating density management
characteristics of the system reduce hydraulic pressure
cycling and surge and swab pressures when pumps are
restarted after a trip, according to M-I SWACO. It
exhibits gas tolerance to both H2S and CO2. The RHADIANT drilling fluid works well with various synthetic and
mineral oil-based fluid chemistries, providing drilling
engineers the flexibility they need to meet specific downhole conditions despite the heat.
RHADIANT loses none of its design characteristics in high temperatures, even those up to 260C. (Image courtesy of M-I
SWACO)
In the Gulf of Thailand, where extremely high bottomhole static temperatures are often measured at an excess
of 232C (450F), operators require a drilling fluid solution that can mitigate the issues that occur when operating in extreme high-temperature environments. One
operator expected bottomhole temperatures of 234C
(453F) in an exploration well deviated to almost 52
and containing quantities of H2S and CO2. After a conventionally drilled pilot hole the RHADIANT drilling
fluid was used to ensure high temperatures would not
compromise logging data. According to M-I SWACO, the
production zone was drilled using 10.5 lb/gal RHADIANT with a base fluid of Sarapar-147. While drilling in
the 6-in. production zone, no drilling or lost circulation problems were encountered. According to the company, good hole cleaning was achieved, and even after
tripping several times through some tight spots, no
stuckpipe was encountered. Within a period of 20
hours three successful logging runs were performed
with no reported nonproductive time. n
119
MERITORIOUS AWARDS
FIELD DEVELOPMENT WINNER

SCHLUMBERGER | REDA HOTLINESA3 THIRD-GENERATION HIGH-TEMPERATURE ESP SYSTEM
n high-temperature gassy environments common to

thermal-recovery heavy oil applications like steamassisted gravity drainage (SAGD) or steamflooding,
rugged electric submersible pump (ESP) systems are
conventionally unreliable. Such systems are delicate
and cannot handle high bottomhole temperatures,
decreasing the chances of early production and increasing the chances of downtime and intervention costs.
Components of the ESP subject to mechanical stresses,
such as shafts, flanges, bolts, and bearings, can ultimately reduce run life if impaired. To increase the
chances of reliability and reduce downtime and
intervention costs, Schlumberger designed the
REDA HotlineSA3 high-temperature ESP system,
which can operate reliably in wells with bottomhole
temperatures of up to 250C (482F).
The system incorporates an integrated design
that extends system run life and the ESP operating
envelope, the company said. Its design is specifically
for high-temperature gassy environments; for corrosive, abrasive environments; and for wells with poor
cooling characteristics.
Unique to the system is the new Integrated Motor
configuration, a complete rearrangement of the traditional ESP design. The Integrated Motor function
comprises a shaft seal module (SSM), a motor, and a
compensator. Conventional systems have a single seal
section; the HotlineSA3 ESP features a seal section that
is split into two parts. The shaft sealing functions are
maintained on top of the motor in the SSM, while the
motor oil compensation and pressure equalization
functions are moved below the motor. The short shaft
sealing sections are stacked on top of the motor to add
redundancy and layers of protection, which enhances
motor reliability. The shorter SSM increases tolerance
to dogleg severity such as that found in SAGD wells.
To reduce mechanical stresses, the SSM includes filters
for the prevention of damage to seal components and
ceramic bearings for high-load capacity to handle abrasives. Because the compensator is located at the bottom
of the motor configuration, the pressure equalization
and abrasives are isolated. Additionally, all nonmetallic
components are able to withstand the new temperature
ratings. O-rings, motor insulation, and radial and thrust
bearings also were upgraded. In addition to upgrades
for high-temperature environments, the Integrated
Motor includes a prefilled plug-in concept that can
reduce chances of human error during installation, the
company said. Because the oil is prefilled at the factory,
the need for filling at the well site is eliminated, which
also eliminates the risk of getting water/solid impurities
and entrained gas into the motor. This can result in
ultra-purified motor oil, which enables increased insulation reliability and run life. To prevent fluids from
escaping and entering the motor, the plug-in pothead
design has a positive pressure system and dual-elastomeric seal.
In an SAGD project in the Athabasca oil sands of
Alberta, Canada, a team planned to trial the REDA
HotlineSA3 ESP in 55% of the SAGD wells. Because
of the high-temperature gassy environment found in
this particular application, aquifer pressure had to
reach approximately 406 psi, not including a safety
margin. One trial well completed with a conventional
ESP rated to 218C (424F) ran for almost a year until
failure. With the HotlineSA3 system lower subcools
were achieved as a result of improved heat transfer,
increasing emulsion rate. The testing revealed that for
the lower-rated ESP systems to stay at or below 218C,
subcools were high, meaning that fluid could not be
produced. The new system allowed steam chamber
development at elevated temperatures, the company
said, improving heat transfer, which in turn mobilized
fluid more effectively. The HotlineSA3 ESP also was
able to remove fluid as it accumulated, driving the subcools lower for higher flow rates. n
The REDA HotlineSA3 high-temperature ESP system can operate reliably in wells with bottomhole temperatures of up to 250C.
(Image courtesy of Schlumberger)
120
MERITORIOUS AWARDS
GEOSCIENCES WINNER
GLOBAL GEOPHYSICAL | AUTOSEIS HDR
he drive to reduce costs and improve operating efficiencies continues to be a dominant theme within the
E&P sector in general, and the seismic industry in particular. As finding and development costs escalate, there is a
growing need for improved seismic technologies that drive
down data acquisition costs and increase efficiency without
compromising either safety or environmental impact. This
need has been the impetus behind the rapidly growing
trend to switch from cabled to cableless recording systems.
Autonomous recording nodes in particular have a number
of significant advantages over traditional cabled and radio
telemetry recording systems such as improved operating
efficiency and flexibility in design and deployment.
Global Geophysical has created one such system, called
the AutoSeis High-Definition Recorder (HDR). With this
compact recording technology crews are able to lay out
and pick up recording channels much more rapidly using
fewer workers and with less vehicular support, both of
which lead to reduced HSE risk exposure to the crew. In
addition, downtime is reduced since there are no instances
of network failures as there are with cabled or radio
telemetry systems. Because the recording units are independent from one another, there are no physical or electrical limitations on total channel count nor on how near or
far the units can be positioned from each other. As a result,
it is much easier to customize 3-D design and deployment
where topography, surface access, or landowner restrictions can limit traditional recording systems.
The AutoSeis HDR also benefits the operation by its
reduced weight, which improves safety conditions for the
crew and increases the number of stations that can be
transported. The tool weighs 0.7 lb/single channel station,
the lowest weight of any nodal recording system on the
market, according to the company. Together with a 20
Amp-hr lithium-ion battery, which is independent from the
recording node and can power the unit for more than
three weeks, the total weight is approximately 3 lb.
AutoSeis has more than 155 dB of dynamic range and an
internal noise floor of only 5 microvolts, which is the best
on the market today, the company said. Recording accuracy
such as this can help retrieve small signals from under high
noise levels, a characteristic that is particularly important
for microseismic monitoring. The seismic data on the HDR
are recorded in full 32-bit digital format to ensure full resolution is preserved. Though using a global positioning system to discipline the timing on the tools internal clock to
maintain accuracy is not unique to AutoSeis, the tool is the
only node, according to the company, that uses a helical

scan antenna originally designed for military use. Another
advantage unique to the tool is its full encasement in resin,
which prevents environmental intrusion typically of
water that can result in loss of data or recording failure.
In the Wolfcamp formation, where operators are faced
with rugged topography, obtaining seismic data that properly illuminate the target formation is difficult. Traditionally, data have failed to generate the seismic resolution
needed to support detailed stratigraphic interpretation
and stress field characterization. A survey was conducted
to test the value of high-resolution, wide-azimuth, highfold seismic data in such a setting while tightly controlling
the cost of acquisition. The AutoSeis nodal recording system allowed for rapid deployment and retrieval of recording groups thanks to its lightweight design, the company
said. More than 1,200 groups per day were laid out and
picked up. The seismic crew recorded more than 2 billion
traces spanning 920 sq km (355 sq miles) in difficult terrain in approximately five months. Eight times the data
effort incremented costs by 58% and resulted in a substantial uplift in the quality of the imaged data, according to
the company. n
Advantages of autonomous nodes over cable and radio systems

include less weight and space, less environmental impact,
improved safety, fewer coverage holes, unlimited scalability,
and higher production rates, according to Global Geophysical.
(Image courtesy of Global Geophysical)
121
MERITORIOUS AWARDS
GEOSCIENCES WINNER
OPTASENSE | OPSTASENSE DAS SYSTEM
ertical seismic profiling (VSP) can provide improved

lateral and vertical resolution for 3-D imaging compared to its counterpart, surface seismic; however, it is not
often used because of several logistical drawbacks. Conventional geophone technology can hinder the acquisition
of VSP data. This can be due to well intervention, well
integrity risk, high economic cost, limited wellbore coverage, and limited equipment ratings for HP/HT conditions.
Distributed acoustic sensing (DAS), a new application, is
offering some answers. The tool leverages the increasing
use of fiber optics installed in wells by turning single-mode
optical fiber into an array of distributed sensors.
OptaSense has developed the OptaSense DAS system,
which works by interrogating a length of standard optical
fiber with pulses of highly coherent laser light. According
to the company, the system then measures the amount of
light returned from tiny scatter points inherently present
in the glass along the fiber. The phase and amplitude of
the backscattered light is a function of strain on the fiber.
By being able to deploy a fiber-optic cable during the
construction of a well or by retrofitting to legacy fibers,
well risk, well production downtime, and deployment time
are alleviated. Conventional downhole geophones also
resulted in limited wellbore coverage, which is eliminated
with the DAS technology, the company said.
In HP/HT operations the system is reliable and
exceeds typical industry geophone ratings, the company
said. Downhole fiber-optic cables currently are rated to
a temperature of 300C (572F) and pressures up to
40,000 psi.
For a carbon capture and sequestration project aimed
to reduce the overall carbon footprint of the Athabasca oil
sands development, the OptaSense DAS for VSP was used
as part of the measurement-monitoring verification. A
series of baseline zero-offset VSPs was acquired to monitor
CO2 containment. A series of walkaway VSPs monitored
the CO2 injection plume and tube-wave monitoring of casing integrity and completion permeability. The DAS system operated on a single-mode optical fiber deployed
behind the casing of the well. The well was inactive during
the acquisition. The system was configured to operate 177
levels at 10 m (30 ft) from surface to total depth. A geophone string also was deployed in the well. It was configured with a 7.5-m (25-ft) spacing and moved three times
to span the entire well for the zero-offset VSP and with a
10-m configuration over two locations for the walkaway
VSP. The DAS system was deployed in a trailer unit, which
122
The derivative in depth of the first break arrival times, seen on the
DAS system during the zero-offset VSP acquisition, gives the velocity profile along the well, which could help to monitor CO2 containment. The top image shows the zero-offset VSP results, and the
middle image shows the zero-offset VSP DAS results. The bottom
curve compares velocity profiles of the DAS (red), geophone
(blue), and velocity log (green). (Image courtesy of OptaSense)
was located at the edge of the pad, with a single-mode

fiber spliced into the in-well fiber. It was then run back to
the unit. Results showed a good correlation with both
sonic logs and geophone data, which demonstrated that
the DAS technology yielded very usable data, the company
said. The technology also was easier to deploy and less
expensive, according to OptaSense. Because the fiber was
permanently installed, it was significantly more repeatable
than the three tool settings that the geophone acquisition
required. It also acquired data for the entire well with a
single shot. n
MERITORIOUS AWARDS
GEOSCIENCES WINNER
WESTERNGECO | ISOMETRIX MARINE ISOMETRIC SEISMIC TECHNOLOGY
hen hydrocarbons are deposited within complex

A computer algorithm performs simultaneous spatial
structures at great depth and under deep water,
reconstruction and receiver deghosting of the seismic
they can be hidden from view beneath dense overburpressure wavefield. The algorithm can compute the
dens. Some reserves are not recoverable due to geologi- upgoing and downgoing separated wavefield at any
cal uncertainty. Conventional marine seismic sampling
desired position within a spread of streamers, Schlumtechniques have provided the industry with an effective
berger said, contributing to an unmatched level of
method of acquiring high volumes of subsurface data
4-D repeatability.
offshore. These data have been thus far labeled as
In the 2011 field trials IsoMetrix achieved a 12:1
3-D; however, the parallel lines acquired are coarsely
crossline reconstruction ratio and produced a 6.25-sq-m
spaced in the crossline direction. WesternGeco calls
(20.5-sq-ft) surface data grid from streamers that were
these conventionally acquired data 2 -D. Streamers
spaced 75 m (246 ft) apart. In January 2013 the seismic
are typically towed 50 m to 100 m (164 ft to 300 ft)
vessel WG Vespucci, equipped with 10 full-length streamapart. According to the company, these methods do
ers, began acquiring seismic data using the IsoMetrix
not capture the whole wavefield and are limited in
technology for a 3-D survey for Thombo Petroleum.
their accuracy when imaging the subsurface.
The survey covered a full fold area of 686 sq km
True 3-D imaging of the subsurface can be provided
(265 sq miles) extending over the A-J1 graben of
via a point-receiver multisensor streamer system, which
Block 2B located off the west coast of South Africa.
WesternGeco has used in its IsoMetrix marine isometric
According to the company, the new data will allow
seismic technology. The tool uses towed streamers to
Thombo and its partner Afren Plc to evaluate not only
provide a true measurement of 3-D seismic wavefields.
the extent of the A-J1 oil discovery but also the many
According to the company, the technology delivers
other prospects and leads in the graben that have been
high-fidelity point-receiver seismic data
identified from existing 2-D data. n
while overcoming spatial wavenumber
bandwidth compromises that have limited
previous marine seismic acquisition
methods. IsoMetrix provides a continuous
measurement of the full upgoing and
downgoing notchless seismic wavefield
sampled at a 6.25-m by 6.25-m (20.5-ft
by 20.5-ft) point-receiver surface grid.
This makes the data suitable for use in
interpretation and modeling applications
such as deep reservoir characterization
and 4-D reservoir monitoring. The
Nessie-6 point-receiver streamer system
incorporates a new generation of towed
streamer design, which combines measurements of wavefield pressure and gradient
This is an image of recorded pressure data (top) and reconstructed isometrivertically and crossline. Using pointcally sampled data (bottom). The top panel is equivalent to conventional 3-D
receiver technology that combines
data recorded by streamers that are spaced 75 m (246 ft) apart. Unaliased
hydrophones with calibrated pointreconstruction of the pressure wavefield between the streamers is made possireceiver microelectromechanical system
ble through direct measurement of the vertical and crossline gradient. The
accelerometers, geologists are able to
lower panel identifies wavefields moving in at least three directions. These
obtain a direct measurement of the vertical
wavefields, particularly those moving from left to right (perpendicular to the
and crossline gradient. This enables unstreamers) would not be properly measured by conventional 3-D methods.
aliased reconstruction of the pressure wave(Image courtesy of WesternGeco)
field between streamers, the company said.
123
MERITORIOUS AWARDS
HSE WINNER
NABORS COMPLETION & PRODUCTION SERVICES CO. | SILICA DUST COLLECTION SYSTEM
ith hydraulic fracturing in the spotlight, companies constantly keep the environment and safety of
crews and supporting personnel a top priority. On well
locations where hydraulic fracturing operations are conducted, the inhalation of silica dust is among one of the
risks to the crew. Respirable silica dust is more hazardous
than in previous years due to the increased sand volume
in the high-rate fracturing operations being conducted
in the completion of extreme-depth horizontal wells in
various US reservoirs, according to Nabors Completion
& Production Services (NCPS). Workers who are in a
position to breathe such silica dust on a regular basis
are at risk of developing silicosis, a disease in which
lung tissue reacts to trapped silica particles. This can
cause inflammation and scarring, which reduces the
lungs intake capacity of oxygen. Silica also can cause
lung cancer and has been linked to tuberculosis.
Since hydraulic fracturing sand can contain up to
99% silica, various studies have shown that fracture
crews and other associated personnel may be exposed
to this dangerous dust.
In response to this HSE concern, NCPS developed the
Nabors silica dust collection system. The unit addresses
silica dust emission in three main activities of the fracturing operation. First, dust collection on top of the sand
vessel access ports captures fugitive dust during the

process of offloading from sand transports. The system is
able to capture dust from one to six transports unloading
simultaneously. Second, the unit collects dust when sand
is transported from sand vessels to the conveyor-belt system. Finally, the unit captures dust when the conveyor
belts drop sand into the blender.
In the Marcellus shale NCPS conducted a multistage
hydraulic fracturing job on a well site in Pennsylvania.
It employed the silica dust collection system on the site
to capture fugitive silica emissions. The job required
approximately 10 MMlb of various sizes of silica sand.
In total, 24 tons of a fine powder dust was collected over
the course of the stimulation job. Afterward the dust was
sent to a third-party laboratory to be tested and analyzed.
A sieve and hydrometer analysis revealed that the percentage of 200-mesh silica was more than 53.75%.
According to the company, these submicron particles
of 0.1 mm diameter and less are sometimes difficult to
detect by the naked eye. Also found were particles as
small as 0.001 mm, amounting to nearly 10% by weight
of the sample. Particles as small as 0.01 mm comprised
the additional 20% by weight of the sample.
A wash sieve analysis showed that 200-mesh and
smaller particles accounted for 46.3% of the weight of
the sample. Sand sieve sizes
of 140-mesh to 200-mesh
accounted for almost 42%
of the sample weight.
Finally, almost 24% of the
sample weight revealed 60mesh to 140-mesh sand. This
indicated how to adjust the
flow rate of the silica dust collection system. Sand in this
range can settle back into the
conveying system if allowed
the time. This indicated that
the vacuums area of influence should not be directed
in the same paths across the
stimulation equipment.
NCPS noted that while the
dust collection system was
operational, filter life on fracThe Nabors silica dust collection systems address silica dust emission, thus improving HSE
turing equipment also was
conditions during drilling operations. (Image courtesy of NCPS)
greatly extended. n
124
OM4
S 4 rA
Early Evidence
oil
of Potential Drilling Surprises

_
'
d-the
:rH1er
Sekal's unique real-time Mo elilg alerts the
as soo n as
actual well conditions begin to deviate from the expected.
This early evidence of unexpected conditions leads to intelligent decisions that

not only make drilling operations safer and more efficient, but also provide the
foundation for drilling automation.
For a personal demonstration please visit
or for further information visit www.sekal.com
ffTiT Ui L'2
Winner of the Hart Energy Meritorious

Award for Engineering Innovation 2013
Se
k 1
a
MERITORIOUS AWARDS
HSE WINNER
HALLIBURTON | SANDCASTLE VERTICAL STORAGE BINS
he logistics of sand and space in hydraulic fracturing

operations can become incredibly intricate, especially with HSE objectives in mind. Conventional sand
handling processes use horizontal storage bins that do
not do much to aid HSE objectives and require more
power to transport. They also take up a great amount of
space in operations where space can be very precious to
operators. A simple fix would have been to save space by
simply making vertical storage bins for sand operations.
Halliburton went a bit further.
Vertical structures can take advantage of gravity, which
lowers the total power requirements. The company took
advantage of the height that the new vertical bins give to
provide solar panels, which generate electricity for operating the bins. Rethinking the way operators can store
sand resulted in the SandCastle vertical storage bins.
In addition, the storage bins use a weighing scale to
measure the stored material, which can improve the
accuracy of the proppant, the company said. A stabilization system is used to ensure the bins are stable when
exposed to wind when empty and when being loaded.
The bins do not require diesel power packs, which
can decrease emissions, noise, maintenance, and total
site diesel consumption. Doing away with conveyor systems can reduce the likelihood of hydraulic oil spills,
greatly reduces dusting, improves proppant delivery
reliability, and can lower the chance of injuries, according to the company.
Additional proppant storage helps improve productivity in horizontal well completions and can translate to
less nonproductive time for the operator. The integral
weighing system on these bins improves service quality
through very accurate proppant measurements throughout the course of a stimulation treatment. Knowing and
controlling exactly how much proppant is placed into
the reservoir is a key metric in determining the success
of a fracturing treatment and improving the performance of a well over the long term, the company said. In
addition, the volume and speed of filling the SandCastle
bins can reduce the charges incurred by the operator for
sand trucks waiting to unload, which can be significant
considering the number of trucks required to transport
proppant for large fracturing treatments.
An independent energy company operating in
Pinedale, Wyo., wanted to complete its horizontal
wells in a shorter timeframe. After adding the SandCastle
bins, nonproductive time associated with proppant
126
SandCastle vertical
storage bins save space,
measure stored material,
use a stabilization
system, and
provide selfsufficient
energy via
solar panels.
(Image
courtesy of
Halliburton)
equipment dropped to negligible levels. For example,

only 10 hours of nonproductive time occurred in eight
months. The operational efficiency gain is evidenced
by demurrage charges for proppant delivery trucks waiting to unload having been reduced by approximately
30% since the use of the vertical bins began. In addition,
Halliburton said, emissions and noise were completely
eliminated, while dusting at the well site was proportionately reduced.
In the Permian basin SandCastle bins have been
deployed to provide both economic and HSE benefits,
the company said. The smaller footprint allows the sand
trucks easier and closer access, thus requiring shorter
hoses for moving the sand from the trucks to the bins.
This results in a time savings of 15 minutes to more than
an hour when compared to the time required for loading legacy sand storage equipment, according to the
case study. n
MERITORIOUS AWARDS
PRODUCTION OPERATIONS WINNER

SCHLUMBERGER | INSIDR PERFORATING SHOCK AND DEBRIS REDUCTION TECHNOLOGY
esigned for completing massive productive intervals

but benefiting most completion applications, the
Schlumberger INsidr perforating shock and debris
reduction technology reduces risk in two ways. First, it
mitigates the dynamic shock of a massive pressure surge
caused when a large-diameter long gun system is detonated in a high hydrostatic pressure environment. Second, it acts to contain up to 85% of the debris-causing
material inside the gun carrier.
The INsidr gun system uses a proprietary volume
reduction sleeve specifically designed to reduce the
void space inside the gun carrier to mitigate the severe
dynamic shock caused when a gun is fired under highpressure conditions greater than 20,000 psi. In addition
to reducing the shock by filling in gun void space, the
volume reduction sleeve prevents charge casing disintegration, the chief contributor to perforation debris in
conventional guns, Schlumberger said.
In high-pressure wells guns with INsidr technology produce much lower gun-shock loads than standard guns. The
charge casings remain practically intact inside the gun carriers, dramatically reducing the debris that could plug perforation tunnels or impede installation of the completion.
The ultra-deepwater wells in the Gulf of Mexicos
(GoM) Lower Tertiary play extend deeply to reach target
formations. Many operators are contemplating drilling
wells to depths of 9,144 m (30,000 ft). Each pipe trip into

such a well constitutes a risk. The introduction of guns
with INsidr technology has allowed operators to shoot
all production zones in a single trip with high-performance, high shot-density charges without jeopardizing
well integrity or creating unacceptable volumes of debris,
the company said.
Schlumberger uses its PurePlanner software to anticipate peak dynamic loading on well components when
the guns fire. Once peak loads are identified, the software is used as a design tool to modify the gun string and
bottomhole assembly to mitigate shock to manageable
levels, the company said. Prejob modeling results indicated that the maximum dynamic underbalance at the
top of the gun string would be 35% less with INsidr technology. This reduction in peak underbalance corresponded to a 230,000 lb/ft reduction in the maximum
tensile load on the tubing-conveyed perforation packer.
In 2012 in the GoM an operator successfully perforated a well in more than 2,133 m (7,000 ft) of water.
Four zones were simultaneously perforated using
Schlumberger 7-in. 18 shot/ft high shot-density guns
with INsidr technology. Hydrostatic pressure was greater
than 20,000 psi at the bottom gun, which reached a
depth exceeding 8,534 m (28,000 ft), breaking world
records for large-diameter perforating guns, according
to Schlumberger. The total gun string
spanned nearly 396 m (1,300 ft) a record
length for large-diameter guns at such
extreme depth and pressure. The net perforated interval was approximately 244 m
(800 ft), and almost 14,000 big-hole shaped
charges were simultaneously fired. Two
explosively initiated vertical shock absorbers
placed directly above the guns provided
additional protection for the upper string
and packer, the company said. High-speed
pressure data recorded at the firing heads
matched well with the predicted pressure
response, verifying the accuracy of the simulation model.
This chart shows the comparison of predicted dynamic loads for two different
The INsidr technologys debut job in the
high-pressure, high shot-density gun systems shot at 19,000 psi. Benefits of
Petrobras Cascade/Chinook ultra-deepwathe technology include a reduction in gun shock, which protects tubing and
ter development demonstrated the tools
completion equipment; a decrease in shaped-charge debris; and an
ability to shoot all zones on a single trip with
increased area open to flow with diminished concern for debris. (Image
a 67% reduction in rig time, saving an esticourtesy of Schlumberger)
mated US $14.7 million per well. n
127
MERITORIOUS AWARDS
SYSTEMS INTEGRATION WINNER

SEKAL ABERDEEN | DRILLSCENE
eing able to predict and

identify downhole conditions would reduce catastrophic
well events and nonproductive
time (NPT). To achieve this, the
behavior of mechanical,
hydraulic, and thermodynamic
models must be analyzed and
understood. Key drilling variables such as wellbore pressure
profiles, hook load, surface
torque, cuttings transport, tank
volumes, and standpipe pressure
should all be calculated. It is
best when these data are calcuDrillScene can help users manage, understand, monitor, and optimize a drilling program in
lated in real time and even betreal time. (Image courtesy of Sekal)
ter when all data are integrated
into one model.
DrillScene by Sekal aims to minimize risk and costs by
hydraulic hole cleaning and to observe any signs of fluid
providing a tool that can help users manage, understand, influx into the well. A potential consequence of inademonitor, and optimize a drilling program in real time,
quate hole cleaning would be for the ECD to rise and
the company said. According to Sekal, it is the only pure
exceed the fracture gradient within the wellbore. Durphysics-based tool in the commercial marketplace capaing drilling operations, the pressure-while-drilling
ble of predicting and identifying downhole conditions
(PWD) tool was inactive due to flow rates in the wellthat could subsequently lead to NPT or to catastrophes.
bore being below the tool data transmission activation
The company said the tool has repeatedly identified the
flow rate. An earlier modeled ECD profile in the wellprecursor symptoms of deteriorating downhole condibore and the actual measured PWD values from the
tions hours or even days prior to the onset of drilling
pressure sensors within the bottomhole assembly proproblems in both field trials and during live drilling
vided support and confidence in the physics-based
operations. Advance notification such as this enables
modeling of the ECD, the company said. Rather than
proactive changes to the well program, mitigating the
tripping the bottomhole assembly to the surface, the
precursor symptoms and preventing potential drilling
drilling team elected to continue the drilling operation,
issues. The system links the transient behavior of the
relying solely on the tools ECD modeling to manage
mechanical, hydraulic, and thermodynamic models into
and monitor the pore pressure and fracture gradient
one integrated model. It calibrates drilling variables such limits. This saved the team one rig day of costs. During
as wellbore pressure profiles, surface torque, hook load,
the operation, key well events such as hole cleaning
tank volumes, cuttings transport, and standpipe pressure
issues, ECD limits, fluid influx, and others were noted
in real time. It then compares the modeled data with the
and captured, enabling drilling analysts to propose
real-time measurements recorded at the rig site. This
drilling performance improvements to enhance the
enables DrillScene to quickly identify whether changing
efficiency of the drilling operation. In addition, the tool
conditions are normal behavior or if they are symptoms
provided a real-time warning of the modeled full wellor conditions that require corrective action.
bore ECD approaching the pore pressure and fracture
In 2012 Total Norge ASs offshore Garantiana well
gradient limit within a key zone located some distance
34/6-2 used the system during drilling operations for
above the PWD tool. It also proved modeled values for
monitoring and support for key well sections. SpecifiECD in both the coring run and the running casing
cally, Total used the tool to closely monitor the equivawhere real-time downhole ECD measurements from
lent circulating density (ECD) and the effectiveness of
the PWD were not available. n
128
MERITORIOUS AWARDS
COMPLETIONS HONORABLE MENTION

FLOTEK INDUSTRIES | COMPLEX NANO-FLUID TECHNOLOGY
urfactant is important to use after a hydraulic fracturing

operation to remove the fracturing fluid. This ensures
that oil or gas can flow more freely into and through the
fractures. Some surfactants such as proppant or formation
materials tend to spend themselves quickly by plating out
onto surfaces. Surfactant is needed at the leading edge of
the fracture fluid as the fracture grows, so this means that
the surfactant is not available where it is needed most.
Flotek has created the Complex nano-Fluid product
that comprises nanodroplets of around 10 nanometers
to 20 nanometers in diameter. Its small size allows the
droplets to enter very small porethroats for enhanced
mobility into the formation. Additionally, the nanophysics
cause the small droplets to remain intact to mobilize at

the fluid interfaces rather than plate out. This ensures the
surfactant contained on the nanoparticle is always available where needed, according to Flotek. CESIs CnF
chemistry, via its nanoparticle mechanism, reduces surface
tension and interfacial tension between the rock and
injected fluids. The additive reduces capillary pressure
and minimizes capillary end effects associated with wellbores and fractures in low-permeability reservoirs by about
50%, according to the company. Additionally, it minimizes
fluid absorption on shales and fluid leak-off into the formation. The products are biodegradable, natural, renewable, and eminently sustainable. n
COMPLETIONS HONORABLE MENTION

SCHLUMBERGER | MANGROVE RESERVOIR-CENTRIC STIMULATION DESIGN SOFTWARE
he Mangrove reservoir-centric stimulation design

software from Schlumberger is a plug-in for the
companys Petrel E&P software platform that enables an
integrated stimulation design and evaluation workflow.
The Mangrove software pinpoints the sweet spots for
perforation cluster placement and hydraulic fracture
staging. According to the company, this automated
process has improved ultimate recovery by more than
50% while reducing design time by one-eighth. Schlumberger said the system has the ability to model complex
fractures typical in unconventional reservoirs. Underly-
ing numerical solutions capture the interaction between

induced fractures with the natural fractures, accounting
for varying geomechanical and petrophysical properties.
Mangrove provides an end-to-end seamless process
enabled on a single platform for designing and evaluating from both technical and business perspectives, the
company said. In one operation in the Marcellus shale
the tool was used to identify sweet spots and stimulate
the entire well. The technology resulted in 25% more
stimulated volume and 35% higher initial gas flow rates
than in the offset well. n
HSE HONORABLE MENTION

SCHLUMBERGER | HIWAY FLOW-CHANNEL HYDRAULIC FRACTURING SYSTEM
he HiWAY flow-channel hydraulic fracturing technique from Schlumberger improves the deliverability
of hydrocarbons from the reservoir to the wellbore by creating channels within the propped fracture. These open
channels offer less resistance to the flow of oil and gas,
leading to enhanced productivity. Proppant requirements
are reduced by up to 47% since the operation does not
aim at filling all the space within the fractures with proppant. The channels are created within the proppant pack
through a patented technique that combines a special
pumping procedure, perforation scheme, and fiber technology. Fracture performance becomes independent of
retained proppant pack conductivity. Also, the open channels extend from the near-wellbore area to the tip of the
fracture, significantly increasing the effective fracture
length. Extensive field tests of the flow-channel hydraulic
fracturing technique have shown increased flowback rates,
improved polymer recoveries, decreased risk of screenout
and proppant flowback, and substantial gains in production. Over a two-year period wells treated with the HiWAY
service have proven stability of flow channels and sustained hydrocarbon production, the company said. In one
case study, wells using HiWAY used 47% less proppant and
26% less water than two offset wells. n
129
industry
IMPACT
Active-set cement system

can automatically seal leak paths
Technologys self-healing properties react with hydrocarbon flow to
reestablish well integrity.
Mary Hogan, Associate Managing Editor
efore Schlumberger introduced its FUTUR active-set

cement technology, mechanical properties of cement
were designed to maintain hydraulic isolation during regular operations in well construction and production.
Once cement has set, though, any damage to the sheath
can allow hydrocarbons to leak. FUTUR, which is automatically activated upon contact with hydrocarbons,
guards against leaks and sustained casing pressure at the
wellhead during drilling, perforation and stimulation,
and production. The technology guards against such
damage after the cement has set.
The FUTUR active-set cement technology responds to damaged

cement sheath within hours. (Image courtesy of Schlumberger)
The self-healing characteristics of FUTUR when it

comes in contact with hydrocarbons equips us to be prepared for unplanned operations, Dominique Guillot,
cement domain manager of well integrity technology for
Schlumberger, said. The technology won the remediation
category of Hart Energys 2008 Meritorious Awards for
Engineering Innovation.
Whenever the cement sheath is damaged during a
wells long-term productive life, the technology reacts
with any hydrocarbons flowing through cracks or
microannuli and seals the pathways within hours. One
130
issue we sought to address with the FUTUR active-set

cement technology was the uncertainty about the potential for mechanical failure of cementing materials behind
a casing or liner or as a wellbore plugging material, Guillot said.
The technologys self-healing response can be repeated
should annular integrity be compromised again later in
the life of a well. FUTUR is more flexible than many
other cement systems at the same density and is therefore
more resistant to most stresses associated with operations
inducing a change in pressure or a change in temperature downhole, Guillot said.
Since its introduction, the technology has been used in
more than 15 countries around the world and for more
than 20 companies. In the United Arab Emirates the
active-set cement technology was used in a well located in
the Khuff formation, one of the Middle Easts most challenging gas fields, according to International Petroleum
Technology Conference (IPTC) Paper 14279. The activeset cement technology helped the operator solve casing
problems around the wells 958-in. liner as well as in the
958-in. tieback section, providing a secondary barrier.
While it does not replace good cementing practices, the
technology can be used to increase the chance of success
in wells with a perceived long-term risk of hydrocarbon
leakage. The technology focuses on addressing the longterm durability of the cement sheath in wells, making
needed repairs without the need for well intervention.
In Pakistan, for example, the technology helped guard
against hydrocarbon flow in a well subjected to surface
pressures as high as 10,000 psi caused by fracturing operations, according to IPTC Paper 13049. Faced with the
challenge of preserving long-term integrity in an HP/HT
well, the operator used FUTUR to cement the production
string and achieve long-term zonal isolation.
The technology continues to be used by the industry
as a proactive solution. Since 2008, the company has
increased the range of applications of the technology by
extending the density range from 12 lb/gal to 10 lb/gal.
We also have extended the self-healing capabilities to
perform when in contact with pure methane, which was
a significant technical challenge, Guillot said.
MIDYEAR
MEETING
INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA
df
REGISTER TODAY
83RD MIDYEAR MEETING
JUNE 23-25 + THERIT Z-CAR6TON,LAGUNA NIGUEL + DANA POINT, CA
SUNDAY,JUNE 23
MONDAY ,JUNE 24
TUESDAY,JUNE 25
Cooperating Associations Lunch
Golf Tournament
Former IPAA Chairmen Breakfast
Finance Committee*
Endangered Species Act and

Land Access Conference
Board of Directors Meeting
Networking Lunch
Committee Meetings
Conversations With Industry Leaders
Welcome to California Reception
Membershi p Luncheon
Industries Working Together:
Manufacturing & Oil and Gas
Liaison Committee*
Board of Directors Dinner*"
General Session
Spouse/Companion Activity : Tour of Richard
Nixon Library and Lunch in the Rose Garden
Roustabout Dinner ***
The Future of U.S.Shale and the

Role of the Independent
Movie Screening : Switch Energy Project
Committee Members Only

Board Members and Registered Spouses Only
International Reception -Focus on Mexico

Closing Dinner
Roustabouts and Reg istered Spouses Only
HOTEL RESERVATIONS
A block of guest rooms has been set aside at The
Ritz-Carlton , Laguna Niguel for IPAA's conference
attendees. There are two types of rooms to choose
from: Run of House Rooms $285 and Run of
Midyear Meeting. All rooms are subject to state

and local taxes and a resort fee. All reservations
must be received by the hotel no later than
Book your reservation by calling the hotel directl y
Please go online for the most up-to-date information and to register: ipaa.org/meetings-events .
Ocean Rooms $325.
at 800.241 .3333 .Be sure to reference IPAA' s
June 3,2013.After this date , reservation requests
will be accepted on space and/or rate availability.
For more information call 800.433.2851.
tech
WATCH
Making rigs wireless

Wireless high-speed networks move with oilfield equipment to enable
communication and connections regardless of the location or terrain.
Leigh Chang, Redline Communications
uggedized network systems are used around the

world to cost-effectively deploy and extend secure
networks, enable machine-to-machine (M2M) applications, connect digital oil fields and smart grids, facilitate
and enhance public safety networks, and bring Internet
access wherever and whenever it is needed regardless
of terrain or how remote an area may be.
In desert, arctic, mountainous, rainforest, and offshore settings ruggedized enclosures allow network systems to operate in virtually any condition including
temperatures ranging from severe arctic cold to intense
desert heat and other forces of nature such as high
humidity, sandstorms, rain, sleet, and ice. Network tech-
nology must operate faster, at longer distances, and with

lower latency (the time delay between two network
nodes) to enable a vast array of applications ranging
from SCADA and M2M to Internet access and voice
over Internet Protocol to real-time video surveillance.
Equipment must work reliably and consistently in
the most extreme conditions and must be able to be
updated and configured remotely over the air. These
design considerations reduce or eliminate the need
to send service crews to work on network equipment
mounted on towers and masts in remote areas. They
also minimize or eliminate downtime where network
outages can cost millions of dollars in lost production
per minute or can expose personnel to risk. One tool
that can accommodate such demands is the Virtual
Fiber network system from Redline Communications. Its
design can overcome deficiencies of throughput, range,
and latency that distinguish the performance of lesser
wireless systems from that of fiber-optic networks. Virtual Fiber networks can operate at Ethernet speeds up
to 100 megabits per second in both uplink and downlink paths and can maintain broadband throughput
across distances up to 80 km (50 miles) with industryleading low latency.
The need for connectivity
A wireless network makes oilfield and offshore operations more

efficient. Adding wireless broadband connectivity to moveable
assets such as drilling rigs can speed drilling operations and
save hundreds of thousands of dollars per rig per day. (Images
courtesy of Redline Communications)
132
There also was a need for a nomadic solution that would

allow moving assets like rigs and trucks to have connectivity even as they move throughout the field. This
required a solution that not only could withstand the
rigors of industrial, security, and military applications
but that also could address additional challenges of
operating from a semimobile platform. First, the
nomadic solution would need the same ability to operate in extreme environments as the stationary solution.
Second, the nomadic solution would need to be able to
withstand the vibrations and shocks that occur when
assets move within the network area. Third, the nomadic
solution would need to be able to be easily set up and
operated by people having a wide variety of job functions not just by the experts who installed the fixed
wireless network.
The companys rapid alignment system (RAS)
nomadic platform is one such solution that can extend
tech
WATCH
high-speed wireless connectivity to moveable and roving

assets located within a private wide-area network. Built
using the Virtual Fiber wireless broadband network system, this platform is the first wireless broadband networking system that instantly locates, aims toward, and
connects to a network base station, automatically establishing high-speed connectivity to and from roving assets
over extended areas.
Speeding up the game

With drilling rig rentals costing anywhere between US
$100,000 and $300,000 a day, one of the key goals of an
early RAS user was to make the drilling operation more
efficient to cut down on the time needed for each rig.
Prior to that, RAS network limitations forced a lag in
data analysis that created an inevitable delay each time a
rig had to be moved. Even with satellite service there
was a delay just from the time it took to properly align
each antenna. With a platform in place such an RAS
setup was instantaneous. The connection speed also was
substantially faster since the user was able to analyze
data in real time for the first time, which resulted in savings on drilling operation rental fees and time.
Conventionally, networking options in the field
require either significant time to set up and specialized
information technology (IT) skills and training to operate, or they are limited in their ability to function within
the application. Omnidirectional antennas such as those
used in Wi-Fi access points can broadcast radio signals in
all directions simultaneously, limiting their range and
creating uncontrolled radio frequency interference.
Satellite-based connectivity is costly and requires additional time and special training for setup and operation.
In addition, its long signal delays result in substantial
latency that renders satellite connectivity unsuitable for
real-time applications.
A platform such as RAS can enable multiple applications from a single vehicle or rig, including real-time
M2M communications, SCADA, high-resolution video,
Wi-Fi, telephony, and automation controls. Because the
platform automatically connects to the best available
base station, roving RAS-equipped rigs, vehicles, and
other equipment gain automatic wireless connectivity as
they move from place to place across large distances in
rugged terrain and harsh environments.
An automatic provisioning feature enables establishment of the required quality of service and security settings to bring the network connection online in the
correct configuration. The wireless link quality is monitored continuously, and a new scan is activated automatically if required due to signal blockage, radio frequency
The RAS platform can deliver wireless broadband connectivity to

roving assets anywhere they move within a networked oil field.
interference, or a change in orientation. Full over-theair management, configuration, and upgrade capabilities allow the IT department to keep the platform
properly configured and in compliance even while the
units are deployed and operational in the field.
Comparing a nomadic platform with satellite

One early RAS user began its field test of the platform
by installing it on a lone drilling rig while the other rigs
at this site continued using satellite. It was during this
early field test that the users IT department had to push
a critical update to all the laptops in the field. Since this
update was too major to be handled over satellite,
employees were required to drive off the oil field to an
office to get the update. But the employees at the RASconnected rig site quickly got the update over the Redline wireless network.
Once all rigs had a connection to the platform,
the company turned up a broadband guestnet that
allowed its contractors to connect to high-speed Internet from the oil field. This was impossible to do with
satellite connectivity.
While understanding that the full return on investment derived from deploying RAS may yet be months
away for most customers, what is already clear is that the
system pays for itself quickly, and the benefits surpass
those of other network solutions available.
133
tech
TRENDS
Multiphase simulator
increases model definition
Kongsberg Oil & Gas Technologies AS released a new
version of the LedaFlow (1.3) multiphase simulator for
wells and pipes. The tool can increase model definition
through improved accuracy, flexibility, and quality for a
greater understanding of the flow in wells and pipelines,
according to the company. Developed to help operators
overcome challenges associated with deepwater projects
and harsh environments, the tool also can assist with
longer tiebacks. Additionally, it can lead to more accurate predictions of multiphase flow and more detailed
information, according to the company.
The new version of the tool includes standard volume
flow rates and emulsion models, a new separator model,
and black oil pressure-volume-temperature definitions.
It also allows for dead oil circulation using custom fluids
and bypass pigging capabilities. According to the company, the new version also is 70% faster due to multiCPU capabilities. kongsberg.com.
Plate nesting plug-in

minimizes production waste
AVEVA has designed the Automated Plate Nesting plugin module to be used with the companys Hull Detailed
Design software for the engineering of offshore structures and ships. The module can minimize production
waste by automatically nesting parts into steel plates,
according to the company. By decreasing the scrap ratio
in this way, the module can help shipyards save on raw
materials by as much as 13%. Additionally, the modules
plate-cutting process can reduce the amount of man-
hours required and save time. The tool calculates where

parts should be placed on the steel sheet using a set of
algorithms to achieve more efficient results. This can
help existing nested parts avoid run-ins with newly
placed parts. The module requires minimal training,
according to the company, and configuration is not
necessary, potentially saving time implementing the
solution. aveva.com/aveva_automated_plate_nesting.
Data visualization software allows

detailed design of geoscience data
The GeoToolkit.NET 3.5 by Interactive Network
Technologies Inc. is a new digital oilfield product that
enables geoscience data visualization through the use
of C# libraries. These libraries support specialized seismic, contour, well log, and well schematic displays. Additionally, the tool includes functions like vector object
handling, web support, and localization. The tool seeks
to increase application consistency and reusability as
well as software development speed, the company said
in a press release. Users can quickly view large sections
of data with the ability to zoom in on datasets. In well
schematic displays users can achieve high-performance
graphics components through new features like deviated track headers, caliper curve and clipping, and support for the measured depth axis. Additionally, the tool
allows users to individually color curve segments and
symbols and design graphics on a multiwell basis using
hue, saturation, and value color. The seismic display supports 16-million color mode as well as a variable depth
step. int.com.
Slimhole high build rate RSS

provides dogleg assurance
The Automated Plate Nesting plug-in module uses a set of algorithms to calculate the placement of parts on steel plates for the
design of offshore structures and ships. (Image courtesy of AVEVA)
134
The Schlumberger slimhole PowerDrive Archer high

build rate rotary steerable system (RSS) can be used
to drill well profiles previously only possible with motors
in one run, according to the company. Able to achieve
build rates of up to 18/30 m (100 ft), the system allows
for full directional control. In addition, when working
with multilateral wells and 3-D well profiles, the RSS provides dogleg assurance. The RSS can achieve the same
wellbore quality and ROP of a fully rotating RSS and has
been used to drill 39,624 m (130,000 ft) in unconventional, carbonate, and sand reservoirs. Combining pushand point-the-bit technologies, the PowerDrive Archer
RSS has been used in 130 field tests in Europe, Asia,
West Africa, the Middle East, and North America,
according to the company.
tech
TRENDS
facilities, laundry facilities, and offices. The company

also can provide an additional 2-m by 9-m (30-ft) office
for extra space as needed. hbrental.com.
Flow measurement system

uses less horsepower
The slimhole PowerDrive Archer high build rate RSS allows for full
directional control when working with multilateral and 3-D well
profiles. (Image courtesy of Schlumberger)
Cimarex Energy used the RSS to drill a 618-in. horizontal section with a 2-m (7-ft) true vertical depth zone in the
Permian basins Bone Spring shale formation, according
to a recent case study. Faced with high dogleg severity
with a 10/30-m curve in the well design, Cimarex
was able to eliminate additional trips downhole using
the slimhole high build rate system. Cimarex saved 26
hours of drilling time, according to the case study, due
to being able to drill the curve and lateral in one run.
slb.com/archer.
The Torus Wedge Primary Flow Element from Bell

Technologies measures differential pressure flow in liquids, gases, and slurries. The tools circumferential ramp
gradually merges the flowstream into the orifice plate.
The stream is then discharged along the downstream
ramp, isolating the flowstream from coming into contact
with a hard edge and keeping wear to a minimum,
according to the company. By allowing for more efficient flow, the tool enables a user to pump downstream
using less horsepower. The ramp self-cleans, eliminating
grease and oil on the orifice plates and turbine meters.
In addition, the bidirectional tool can fit between standard pipe flanges, making it easy to replace, according
to the company. The addition of remote seals can provide insulation from the transmitter. When Colorado
Engineering Experimental Station Inc. compared 2-in.-,
3-in.-, and 4-in.-versions of the tool with same-size orifice
plates, it found that the Torus Wedge allowed the fluid
to expend less energy while passing through the measurement device. belltechnologiesllc.com.
Narrow in size, linkable skids allow for easier transportation to

drill sites and include space for both living and office facilities.
(Image courtesy of HB Rentals)
Linkable skids allow for easy transportation

HB Rentals has designed linkable skids that measure
2 m by 13 m (8 ft by 42 ft) for temporary use in onshore
projects. The buildings narrow size allows for easier
transportation to drill sites that are challenging to get
to in Pennsylvania, Ohio, and West Virginia, according
to the company. In addition, permits are not needed
to move the buildings, which further saves time and
resources. The linked buildings include space for living
The Torus Wedge Primary Flow Element was designed as a

replacement for orifice plates to keep wearing to a minimum.
(Image courtesy of Bell Technologies)
135
REGIONAL REPORT:
GULF OF MEXICO
Deepwater revival
on horizon for GoM
Major deepwater oil discoveries attract operators to the region once again,
with a renewed focus placed on the increased use of technology as plays
become deeper and more challenging.
n the wake of the Macondo incident and following a

severe slowdown of drilling activity in the years that followed, operators are once again flocking to the US Gulf of
Mexico (GoM) after a slew of major deepwater discoveries. As operators venture further offshore into untapped
deepwater plays in the Lower Tertiary trend that hold
large oil reserves, the region is making a comeback in a
big way. Deepwater prizes like Chevron Corp.s Coronado
well, ExxonMobils Hadrian discovery, and Anadarkos
Shenandoah prospect will prove useful in ensuring US
energy independence as the regions potential attracts
more and more majors.
With the advent of shale gas drilling in the US, resulting
low natural gas prices have diverted operators away from
more costly deepwater gas finds and have focused their
attention on the GoMs vast oil resources instead. The
region boasted a mix of major and independent operators
focused on subsea tieback gas projects only five years ago,
according to Quest Offshore Resources 2012 report, The
Gulf in Transition: 2013 and Beyond.
Today, oil dominates the region with offshore gas all
but unable to compete in a sub-[US]$4/Mcf gas price
environment, the report said.
With deepwater projects commanding extensive budgets, the report found that many smaller independent operators are choosing to focus on shale initiatives, leaving the
deepwater and ultra-deepwater GoM fields to be dominated by the majors. National oil companies and oil majors
hold 33% of the GoM deepwater leases and continue to
drive deepwater development past its current limits.
Faced with a healthy forecast worldwide for oil
prospects, deepwater oil projects while commanding a
large chunk of resources and requiring higher budgets as
water depths increase are expected to remain lucrative.
With oil prices expected to hover above the $75/bbl mark,

all but the most marginal deepwater fields are economic
despite recent volatility in oil prices, the report said.
With total spending in the GoM estimated to increase
30% in 2013 to $40 billion overall and a cumulative $167
billion through 2016, the region is set to remain a vibrant
hub of productivity.
In an October 2012 press release Wood Mackenzie forecast more than 12 Bboe will be discovered by 2030. These
results are materially surpassed only by Brazil, which has
enormous potential in its presalt play, Julie Wilson, senior
analyst for Wood Mackenzies exploration service, said in
the press release.
Enabling technologies like subsea boosting and pumping
and seismic imaging will prove key to developing the deepwater GoMs production potential in coming years as newer,
deeper, and more complex plays are explored and drilled.
With GoM deepwater projects located farther offshore in more

challenging waters, the region will likely see an increase in FPSO
vessels able to move off site should conditions threaten production.
136
REGIONAL REPORT:
GULF OF MEXICO
Cascade-Chinook is the first FPSO to produce oil and gas in

the GoM, with a processing capacity of 80,000 bbl of oil and
500,000 cu m/d of gas and storage facilities for 500,000 bbl
of oil. It is moored at a world-record water depth of 2,500 m
(8,202 ft). (Image courtesy of Petrobras)
Deepwater spending surpassed shallow-water capex and

opex in 2012 for the first time, marking a major shift in
the GoM demographic of projects. In coming years deepwater projects, too, are expected to change, shifting to
fewer standalone developments and larger subsea
tiebacks, the Quest report said. Walker Ridge, Keathley
Canyon, and Alaminos Canyon have seen the bulk of
recent ultra-deepwater GoM projects, with Quest forecasting activity in gas-rich areas like Desoto Canyon and Lloyd
Ridge to peter out concurrent with an increased focus on
shale gas.
The Bureau of Ocean Energy Managements (BOEM)
Central GoM Lease Sale 227 saw the trend toward deeper
water continue, with 209 tracts receiving bids located in
water depths greater than 800 m (2,640 ft). The Walker
Ridge block received the greatest amount of bids, reflecting the oil and gas industrys renewed interest in deepwater projects. Top deepwater operators include BP, Shell
Oil Co., Anadarko Petroleum, Chevron USA Inc., ExxonMobil Corp., ConocoPhillips, Hess Corp., BHP Billiton
Petroleum, Cobalt International Energy LP, Statoil, Eni
Petroleum US LLC, Petrobras America Inc., Murphy,
Maersk Oil, and Noble Energy Inc.
An abundance of opportunities
The industrys major players are beginning to renew
investment in the GoM, with BOEM reporting a combined
total of more than $525 million from companies submitting the top 10 single highest bids during Lease Sale 227.
BHP offered a top bid for Green Canyon deepwater
Block 564 of $46 million, having already found success
with the Shenzi oil and gas field approximately 120 miles
(193 km) offshore Louisiana. BHP, operator of the field
with a 44% interest, is joined by partners Repsol and Hess,
each with a 28% interest. Currently, the Shenzi project
produces 100,000 boe/d.
Along with the Shenzi project, Repsol continues to build
its exploration position in the deepwater GoM with 114
exploration blocks. The company is a partner on another
major deepwater find the Bucksin project with a secEPmag.com | May 2013
ond appraisal well currently under way. The field, operated by Chevron and situated far offshore in the subsalt of
the Lower Tertiary trend, has the potential of being a significant oil find.
The deepwater GoM offers an abundance of opportunities in an oil-rich basin, and the opportunities continue
to grow, driven by new advances in drilling and seismic
imaging technology, David Ramos, manager of GoM
exploration for Repsol, said in a statement. We are
drilling deeper and have better insight into our targets
than ever before. New plays are emerging periodically.
Its a very competitive arena, however, as was proven
in the last bid round, he added. The large number of
companies participating also means that there are lots of
opportunities for partnering, with clear benefits from the
technical risk-managing standpoint. The advantages are
tremendous. Its a proven basin, with significant infrastructure already in place and close proximity to the markets.
In Keathley Canyon, ExxonMobils Hadrian North
prospect in blocks 919 and 918 encountered more than
168 m (550 ft) of net oil pay, and its Hadrian South
prospect in Block 964 encountered 61 m (200 ft) of
net natural gas pay. At the time of the discovery the company estimated a combined 700 MMboe of recoverable
resource between the two prospects, which are located
in 2,134 m (7,000 ft) of water. Gas will be processed at
Anadarkos oil-rich Lucius field, which is estimated to
have more than 300 MMboe of reserves.
With first production slated for 2014 Lucius will
incorporate a truss spar floating production facility.
This reflects an overall trend in healthy demand in
the floating production market, with Quest Resources
predicting awards of FPS units to grow by 56%.
ExxonMobil is the operator of both Hadrian prospects
with a 50% working interest and is joined by partners Eni
and Petrobras, each with a 25% interest. Anadarko operates the Lucius field with a 35% interest and is joined by
co-owners Plains E&P Co with a 23.3% interest, ExxonMobil with a 15% interest, Apache Deepwater with an 11.7%
interest, Petrobras with a 9.6% interest, and Eni with a
5.4% interest.
New massive potential reserves

Walker Ridge has become one of the GoMs most prolific
areas for massive offshore oil finds, with two new discoveries recently reported. The Shenandoah-2 well, located in
Block 51, encountered considerable oil pay. The successful Shenandoah-2 well marks one of Anadarkos largest oil
discoveries in the Gulf of Mexico, with more than 1,000
net ft [305 net m] of oil pay and reservoir rock and fluid
properties of much higher quality than previously encoun137
REGIONAL REPORT:
GULF OF MEXICO
tered by industry in Lower Tertiary discoveries, Bob

Daniels, Anadarko senior vice president of deepwater and
international exploration, said in a press release. Drilled
to a total depth of 9,572 m (31,405 ft), the Shenandoah-2
well is situated in a water depth of 1,768 m (5,800 ft).
Anadarko operates the well with a 30% interest and is
joined by partners ConocoPhillips with a 30% interest,
Cobalt with a 20% interest, Venari Resources LLC with a
10% interest, and Marathon Oil Co. with a 10% interest.
As the second major find in Walker Ridge, Chevrons
Coronado wildcat well located in Block 98 encountered
122 m (400 ft) of net pay. Located in 1,868 m (6,127 ft)
of water, the well was drilled to a depth of 9,713 m (31,866
ft). Well results are still being evaluated to determine the
resources potential. The well is situated 308 km (190 miles)
offshore Louisiana in the Lower Tertiary subsalt trend.
As operator, Chevron holds a 40% interest in the
prospect, with partners ConocoPhillips (35%), a subsidiary of Anadarko Petroleum Corp. (15%), and Venari
Offshore (10%).
The Shenzi deepwater oil field, located offshore

Louisiana, currently produces 100,000 boe/d.
(Image courtesy of BHP Billiton Petroleum)
The Coronado discovery continues our string of

exploration successes in the Lower Tertiary trend, where
Chevron is advancing multiple projects, Gary Luquette,
president of Chevron North America E&P Co., said in a
press release. It also highlights the importance of the
deepwater Gulf of Mexico as a source of domestic energy
for the United States.
As the number two lease operator in Walker Ridge,
according to Quest Resources, Chevrons deepwater focus
also has included development of the Jack and St. Malo
EA
EURO
?
'
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I IY
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Changing Frontiers
138
E o n Mobil
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REGIONAL REPORT:
GULF OF MEXICO
fields located in the Lower Tertiary trend in Walker Ridge

Block 678 within 40 km (25 miles) of each other. The
company reported oil flow rates at St. Malo exceeding
13,000 b/d.
The project represents one of many multiwell projects
in the GoM that have seen a record permitting pace since
2011. Quest Resources attributed the increase in multiwell
permits to an increase in large standalone projects and
regulatory changes encountered in the GoM.
Chevron has a 51% interest in the St. Malo field and is
joined by partners Petrobras with a 25% interest, Statoil
with a 21.5% interest, ExxonMobil with a 1.25% interest,
and Eni with a 1.25% interest.
Representing another major development in Walker
Ridge, the Chinook and Cascade fields are located 257
km (160 miles) offshore Louisiana in the Lower Tertiary
trend in a water depth of 2,500 m (8,200 ft). Operated by
Petrobras, the two fields are the first in the GoM to produce oil and gas using FPSO vessels and will likely pave the
way for other operators to follow suit. The advantage of
being able to remove the production unit from the field is

attractive in an area prone to destructive hurricane seasons, Quest Resources said in its report.
Petrobras owns a 100% interest in the Cascade field
and a 66.7% interest in the Chinook field with partner
Total Exploration Production USA Inc., which has a
33.3% interest.
Renewed growth
With a period of renewed growth on the horizon in the
GoM, the stage is set for a competitive environment as
operators venture farther offshore into deeper, more
challenging waters where the stakes are high. Due to the
discovery of Lower Tertiary trend reserves in deep and
ultra-deep water, the playing field has shifted, and the
region is attracting more and more majors to the area.
Although deepwater drilling activity was hindered by the
moratorium in 2010, it has rebounded very well in 2012,
Lauren Payne, GoM analyst for upstream research at Wood
Mackenzie, said in an October 2012 press release.
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international
HIGHLIGHTS
For additional
information on
these projects
and other global
developments:
READ MORE ONLINE
EPmag.com
AFRICA
BG Group confirms gas find in three-well appraisal

BG Group Plc announced results from a three-well
appraisal program including the #1-Jodari South, #1-STJodari South (a deviated sidetrack), and #1-Jodari North
wells in Tanzanias offshore Block 1. The results reconfirm
the 3.4 Tcf in estimated mean recoverable gas resources.
The #1-Jodari South well was drilled southwest of #1-Jodari
to 3,441 m (11,289 ft). It was sidetracked to drill #1-ST
Jodari South to 3,282 m (10,768 ft). The #1-Jodari North
was then drilled north of #1-Jodari to 3,389 m (11,119 ft).
BG Group is the operator of Tanzanias Block 1 and the
Jodari field with a 60% interest in partnership with Ophir
Energy, which holds the remaining 40% interest.
Aker wins $850 million Moho Nord contract
Aker Solutions has been awarded a US $850 million contract by Total for the delivery of a subsea production system for the deepwater Moho Nord project offshore the
Republic of Congo, Aker said in a press release. The project, located approximately 75 km (47 miles) offshore,
consists of the Moho Nord and Moho Bilondo Phase 1
developments. The work scope includes the delivery of
28 vertical subsea trees including wellhead systems, two
installation and workover control systems, seven manifold
structures, and subsea control and tie-in systems.
MIDDLE EAST
Eni hits oil pay zone in Egypt
In Egypts Western Desert Eni reported a new oil discovery on the Meleiha concession at exploration well #1XRosa North. According to Oil and Gas International,
the well hit a total oil pay of about 80 m (262 ft) in multiple good-quality sandstones of the Bahariya, Alam El
Bueib, Khatatba (Upper and Lower Safa members), and
Ras Qattara reservoirs and has been successfully tested
flowing 43API gravity to 48API gravity oil. Eni is the
operator of the Meleiha concession and #1X-Rosa North
with a 56% interest through its affiliate International
Egyptian Oil Co. (IEOC), with partners Lukoil (24%)
and Mitsui (20%).
QP, Wintershall, Mitsui discover gas offshore Qatar
Qatar Petroleum (QP) and Wintershall made a gas discovery in exploration Block 4 North offshore Qatar, QP
said in a press release. QP and Wintershall entered an
exploration and production-sharing agreement (EPSA)
for Block 4 North in November 2008. Mitsui Gas Development Qatar joined in 2010 by acquiring 20% of the
contractors interest under the EPSA, with Wintershall
retaining an 80% interest and operatorship.
ASIA-PACIFIC
NORTH AMERICA
InterOil well in Papua New Guinea flows gas

A drillstem test at the #3-Antelope well in Block PRL15,
PPL238 in Papua New Guinea flowed 44.9 MMcf of gas
with 10.4 bbl to 14.9 bbl of condensate per MMcf through
a 1-in. choke, with a flowing tubing pressure of 2,331 psi.
InterOil Corp. reported that the vertical well was drilled
to 1,773 m (5,817 ft) and tested a 178-m (584-ft) openhole interval from 1,622 m to 1,800 m (5,321 ft to 5,905
ft) through several choke sizes from 2464 in. to 1 in.
Test results show gas flow for Questerre

Questerre Energy Corp. reported in a press release the
test results from its fourth horizontal well in the KakwaResthaven area of west central Alberta, Canada. The 03-19
well was successfully completed with a 14-stage water-based
nitrogen foam fracture stimulation in the 1,321-m (4,334ft) horizontal section. The well flowed 826 b/d of condensate and 5.83 MMcf/d of natural gas against anticipated
gathering system pressure of approximately 725 psi.
Questerre holds a 25% working interest in the 03-19 well.
Chevrons Carnavon basin discovery strikes gas

In Western Australias offshore Carnarvon basin-Exmouth
Plateau area, Chevron reported a gas field discovery at
the #1-Kentish Knock South well. The well encountered
140
approximately 75 m (246 ft) of net gas pay in upper

Mungaroo sands. Located in the WA-365-P permit area,
the well was drilled in 1,168 m (3,832 ft) of water to 3,065
m (10,056 ft). According to the company, this is the 20th
discovery in the area. Chevron is the operator of WA-365-P
and the #1-Kentish Knock South discovery well with a 50%
interest in partnership with Shell Development Australia,
which holds the remaining 50% interest.
Edge reports oil shows in horizontal well

Edge Resources Inc. finished drilling the second well of
its spring drilling program in Primate, Saskatchewan,
international
HIGHLIGHTS
Canada, reporting oil shows throughout a 495-m (1,624ft) section, according to a company press release. The
well was successfully drilled and cased without incident
and is now being prepared for production with completion and equipping operations. The company has a
100% working interest in 20 sections spanning 12,800
acres of land in Primate.
GULF OF MEXICO
Chevron announces oil find in deepwater GoM
Chevron Corp. made an oil discovery at the Coronado
prospect in the deepwater US Gulf of Mexico (GoM), the
company said in a press release. Walker Ridge Block 98
Well No. 1 encountered more than 122 m (400 ft) of net
pay. The well is located approximately 308 km (190 miles)
offshore Louisiana in 1,868 m (6,127 ft) of water and was
drilled to a depth of 9,713 m (31,866 feet). Chevron, with
a 40% working interest in the prospect, is the operator of
the Coronado discovery well. Other owners are ConocoPhillips with a 35% interest, a subsidiary of Anadarko
Petroleum Corp. with a 15% interest, and Venari
Offshore LLC with a 10% interest.
ConocoPhillipss Shenandoah well encounters oil
ConocoPhillips made an oil discovery at its recently drilled
Shenandoah appraisal well in Walker Ridge Block 51 in
the deepwater GoM, the company said in a press release.
The WR51-2 Shenandoah appraisal well encountered
more than 305 m (1,000 ft) of net pay in high-quality
Lower Tertiary-aged reservoirs. The well was drilled to a
total depth of 9,572 m (31,405 ft) in approximately 1,768
m (5,800 ft) of water. ConocoPhillips holds a 30% working
interest in Shenandoah. Other co-owners are operator
Anadarko Petroleum Corp. with a 30% working interest,
Cobalt International Energy LP with a 20% interest,
Marathon Oil Co. with a 10% interest, and Venari Offshore LLC with a 10% interest.
SOUTH AMERICA
Exxon discovers oil in Colombias
Middle Magdalena Valley
ExxonMobil announced results from an oil discovery at
exploration well #1-Mono Arana in Colombias Middle
Magdalena Valley on the VMM2 block. The venture was
drilled and cased to 3,030 m (9,942 ft) within the Cretaceous La Luna formation and hit approximately 232 m
(760 ft) of pay with good oil and gas shows throughout the
entire interval while drilling. ExxonMobil is the operator
of the VMM2 block and #1-Mono Arana well with a 70.1%
interest in partnership with Canacol, which holds a 20%

interest, and Vetra Exploracion y Produccion Colombia,
which holds the remaining 9.9% interest.
BP completes Itaipu test offshore Brazil
BP successfully completed a flow test on its operated
Itaipu-1A deepwater presalt discovery in Block BM-C-32
offshore Brazil, the company said in a press release. The
drillstem test is part of an ongoing appraisal program
on the field, with the well achieving flow rates of up to
5,600 b/d of oil for 32 hours through a 4064-in. choke
from a limited perforated interval. BP is the operator
of BM-C-32 with a 40% interest and is joined by partners
Anadarko Petroleum Corp. with a 33.3% interest and
Maersk Energia Ltda. with a 26.7% interest.
EUROPE
Centrica begins production
at York platform in North Sea
Centrica Energy announced
that production had started
from its York platform in the
southern North Sea. The
field, 100% owned by Centrica Energy Upstream, will
produce around 120 MMcf/d
of gas at its peak. Gas will be
exported via pipeline to CSLs
terminal in Easington, East
Yorkshire. The York platform
is located 40 km (25 miles)
east of Humberside in a water
depth of 45 m (148 ft).
Centricas York platform in

the southern North Sea will
produce 120 MMcf/d.
(Image courtesy of
Centrica Energy)
Statoil, partners will develop

Smrbukk project offshore Norway
Statoil and its partners in the sgard unit will develop the
Smrbukk South Extension project offshore Norway, Statoil said in a press release. Smrbukk South Extension
holds estimated recoverable reserves of 16.5 MMboe and
will be developed with a new
subsea template connected
to existing infrastructure in
the area. The recovered gas
will be reinjected in the
reservoir to maintain the
The Smorbukk South Extenreservoir pressure as oil is
sion will be connected to the
produced. The field will be
FPSO vessel sgard A. (Photo
connected to the FPSO vesby yvind Hagen, Statoil)
sel sgard A.
141
on the
MOVE
PEOPLE
KBR named Andrew Summers group
president of the its infrastructure, government, and power business group.
Glen Jewell (left)
and Hanh Ha
(right) will serve as
directors of Acteon
company 2H Offshore Inc.s
London office.
Clean Harbors Inc. appointed Laura
Schwinn as president of oil and gas
field services.
SPEX Group named Nadir Mahjoub
as COO.
BG Group appointed Lim Haw-Kuang
as a nonexecutive director.
Rangeford Resources Inc. appointed
Michael Farmer, Mark Teinert, Jim R.
Iman, and Gary A. Giles to the companys board of directors.
IHRDC named Charles
Brankman (left) director of
instructional programs.
Energistics elected Segun Oyebanji to
its board of directors.
The Lewa-Nikkiso
Group announced
that Dr. Martin
Fiedler (top left),
Naota Shikano
(lower left), and Stefan
Glasmeyer (right) have
assumed responsibilities
leading the companys
pump and system division.
EXCO Resources Inc. appointed
Harold L. Hickey, who will continue to
serve as COO, as president following
the retirement of Stephen F. Smith as
president and CFO. Additionally, the
142
company selected Mark Mulhern to

serve as CFO.
CompactGTL named Tony Hayward
nonexecutive chairman.
Louisiana Gulf
Coast Oil Exposition named Kirby
Arceneaux (left)
2013 chairman. Steve Maley
(upper right) will serve as
chairman-elect, and Kenneth
Crouch (lower right)will
serve as treasurer.
Gerald Donnelly, PE, was promoted
to executive vice president at STV,
where he will continue to lead STV
Energy Services.
The European
chapter of the Intervention and Coiled
Tubing Association
appointed Michael Taggart (left) as
chairman and Kelly Murray (right) as
vice chairman.
Mark Coetzee joined Swift Worldwide
Resources as managing director of the
companys North American operations.
Geotrace has tapped Phil
Beale (right) as reservoir
services manager overseeing
Europe, Africa, and the Middle East.
Carla M. DiCicco joined Steptoe &

Johnson PLLCs energy law team and
will practice out of the firms office in
Great American Group Inc. appointed Canonsburg, Pa. In addition, Sujey
Robert Callaway as vice president, head Kallumadanda joined the firms international energy practice in Houston.
of oil and gas.
ExxonMobil named T.R. Walters
as president of ExxonMobil Production Co. and R.S. Franklin as president
of ExxonMobil Gas and Power Marketing Co.
Enerplus Corp. announced that
Gordon J. Kerr will be retiring as
president and CEO in June 2013.
The companys board of directors
selected Ian C. Dundas to succeed
Kerr in these two roles.
HB Rentals promoted
John Nagel (right) to
vice president of product
development.
FairfieldNodal welcomed Randy Johns
as director of new ventures.
Sandra Hall (left) joined IMV
Projects, a Wood Group Mustang company, as vice president of business development
and strategy.
AGR selected David Grant as senior

subsea manager of the companys
new subsea project management division. The company also named Age
Landro as executive vice president of
petroleum services and David Hine as
executive vice president of enhanced
drilling services.
COMPANIES
Santrol, a Fairmount Minerals company, opened the Santrol Technology
Center in Sugar Land. The new facility
is geared toward proppant research
and development.
Greenes Energy Group opened two
new facilities in Alice and Pleasanton,
Texas, to better serve Central and
South Texas oil and gas companies,
especially those operating in the Eagle
Ford shale.
Unimin Corp. expanded to Navarre,
Ohio, with the opening of a new propMay 2013 | EPmag.com
on the
MOVE
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pant distribution terminal to serve

operations in the Utica shale.
to support the companys presence in

Southeast Asia.
Bayou Wasco Insulation LLC is collaborating with The Dow Chemical Co.
to open a new facility in New Iberia,
La., geared toward offshore flow assurance systems.
Theon Ltd. opened a new office in

London, which will undertake onshore,
topsides, and subsea projects and provide field development and engineering services for the oil and gas industry.
The Center for Sustainable Shale

Development opened in Pittsburgh,
Pa., to serve the Appalachian basins
shale gas industry with a third-party
certification process for safe and environmentally responsible development.
The center is the result of collaboration
from environmental organizations,
philanthropic foundations, and
energy companies.
Expro opened a new well intervention

facility in Aberdeen, Scotland, during
a ceremony attended by Dr. Vince
Cable, Scotlands secretary of state
for business.
Hydro Group Plc expanded to Singapore with the opening of a new office
The Ferguson Group announced

the relocation of its Asia-Pacific operations to a new facility in Loyang, Singapore, which will focus on providing
offshore and refrigeration containers
as well as accommodation and workspace modules.
ADVERTISER INDEX
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Bluebeam Software, Inc. . . . . . . . . . . . . . . . . . .9
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Cameron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Canary/Frontier Energy Group, Inc . . . . . . . .13
Climate Change . . . . . . . . . . . . . . . . . . . . . . .11
Cudd Energy Services . . . . . . . . . . . . . . . . . 105
Delmar Systems, Inc. . . . . . . . . . . . . . . . . . . 113
Devin International . . . . . . . . . . . . . . . . . . . . .51
Dragon Products, Ltd. . . . . . . . . . . . . . . . . . . 93
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EP Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
First Reserve . . . . . . . . . . . . . . . . . . . . . . . . . .19
Flotek Industries . . . . . . . . . . . . . . . . . . . . . . . 91
FMC Technologies . . . . . . . . . . . . . . . . . . . . . 43
Forum Energy Technologies . . . . . . . . . . . . .69
FTS International . . . . . . . . . . . . . . . . . . . . . . .55
Gardner Denver (GARD) . . . . . . . . . . . . . . . .15
GEA Westfalia Separator Group GmbH . . . . 27
GE Oil & Gas, Surface Pumping Systems . . . 98
GE Transportation . . . . . . . . . . . . . . . . . . . . . .41
Global Geophysical . . . . . . . . . . . . . . . . . . . .75
Great Wall Drilling Company . . . . . . . . . . . . 85
Greenes Energy Group . . . . . . . . . . . . . . . . . 61
Honghua America, LLC . . . . . . . . . . . . . . . . . .63
Hydrozonix . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
Intermoor . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
IPAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131
Lloyds Register Energy Drilling . . . . . . . . .97
Magnum Oil Tools International . . . . . . . . . . 59
McCoy Drilling & Completions . . . . . . . . . . .84

Mechanix Wear . . . . . . . . . . . . . . . . . . . . . . . . 34
Mewbourne College of Earth & Energy . . . . 16
M-I Swaco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Momentive . . . . . . . . . . . . . . . . . . . . . . . . . . 107
MRC Global . . . . . . . . . . . . . . . . . . . . . . . . . . 32
National Oilwell Varco . . . . . . . . . . . . . 6, 49,95
Newpark Drilling Fluids . . . . . . . . . . . . . . . . 30
North American Interpipe . . . . . . . . . . . . . . .26
OptaSense . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
Paradigm . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Partners In Drilling . . . . . . . . . . . . . . . . . . . .109
Pepperl+Fuchs . . . . . . . . . . . . . . . . . . . . . . . .21
PGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
PGS Exploration (UK) Ltd. . . . . . . . . . . . . . . . 28
PTI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Reed Exhibitions . . . . . . . . . . . . . . . . . . . . . .116
Roxar Flow Measurement . . . . . . . . . . . . . . . 67
Schlumberger . . . . . . . . . . . . . . . . . . . . . . 5, BC
Sekal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125
Sembcorp Marine . . . . . . . . . . . . . . . . . . . . . .53
Spectrum . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Supreme Services . . . . . . . . . . . . . . . . . . . . .139
TAM International . . . . . . . . . . . . . . . . . . . . IBC
TEAM Oil Tools . . . . . . . . . . . . . . . . . . . . . . . 81
Tenaris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Tesco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87
Tetra Technologies Inc. . . . . . . . . . . . . . . . . . 57
TGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
United Rentals . . . . . . . . . . . . . . . . . . . . . . . IFC
Zeeco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111
October 2012 | EPmag.com143
last
WORD
Setting course for a

polar-class drillship
Risk- and scenario-based design concept projects will progress best
through cooperative efforts.
James Bond, ABS
ce-capable drillships are going to be needed when the

oil and gas industry makes its inevitable push into
deeper Arctic waters. And operating companies are
going to demand vessels that can safely work in this
exacting area of the world.
Today there are rules for awarding transiting vessels
various polar-class notations, but no guidelines exist for
assigning an ice capability notation to a site-specific
structure. For the industry to have confidence in the
integrity of arctic drillships there must be some set of
performance standards against which to measure and
class them. These guidelines would facilitate stationkeeping system design and would establish parameters
for ice management requirements that reasonably limit
the load on the structure and moorings.
Any drillship working in the Arctic should have the
ability to operate in a mobile, thick, first-year ice regime
that could contain old ice inclusions. It is not difficult to
imagine that a vessel keeping station while drilling could
be subjected to pressure and ridged rubble ice fields.
The resulting global loads on the structure and the
mooring and positioning system are substantially greater
than those experienced by an ice transiting ship for
which the polar-class notation was developed.
Polar-class rules were developed using ice interaction
scenarios as a basis for the loads on and the structural
design of each area of the hull. Validation was performed
against existing ships, particularly those that had suffered
light damage during operation. It is important to note
that the master of an ice transiting ship has some freedom within the limitations of safe navigation and hydrog-
144
raphy to select a route that directly influences and in

most cases lessens the ice loads on the ship. The maximum global load on the side of a polar-class ship often
results from the ship being caught in pressure when an
opening in the ice closes. In some cases the master can
manage ice loads by allowing the ship to drift with the ice
until the situation resolves itself, often without having to
request icebreaker assistance.
While efficient ice management could lessen these
loads on a drillship, this requires that ice detection, ice
characterization, load prediction, physical management
capability, and success rate be taken into account in the
risk assessment that accompanies the decision to continue drilling or to move off station.
Predicting loads from a given ice interaction event is
critical for designing floating arctic offshore units, but
there are many questions about how this can be accomplished. While ice load prediction continues to be a
topic of research, R&D is hindered by limited design
validation points. This is the reason that a great deal of
research focuses on ice mechanics, structure/ice interaction, numerical simulation of the understood physics,
and interaction permutations with the goal of developing load-prediction models that can be validated via
small- and large-scale testing.
Considerably more research is needed, and class societies like ABS need to continue to work with the industry to find solutions. Clearly, risk- and scenario-based
design concept projects can progress most effectively
through cooperative efforts that bring the industrys
best minds together. Involving class in technology validation through an approval-in-principle process and novel
concept guidance will help the industry push through
the ice barrier.
Tr
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