SPE XXXXX An Innovative Approach to Drilling Analysis, Optimization & Risk Assessment

Essam Alghumgham, Hashim Towailib, King Fahd University of Petroleum & Minerals KFUPM

Copyright 2011, Society of Petroleum Engineers This paper was prepared for presentation at the 2011 Young Professionals Technical Symposium held in Dhahran, Saudi Arabia, 1416 March 2011. This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of SPE copyr ight.

Abstract Adjusting drilling programs to match geological and petroleum fluids conditions is important to overcome the challenges associated with drilling. Unplanned operational time is considered as a Non-Productive Time (NPT). Analysing NPT and creating a risk register for each individual well and section drilled in a reservoir can help reducing the probability and severity of those NPT incidents in future drilling operations. Drilling lost time and bottom-hole assembly (BHA) tools failure are two nightmares to oil companies. That is due to many seasons such as the risk of losing the logging tools downhole in case of stuck pipe problems. Ethical, environmental and commercial responsibilities led us to propose a creative method to the industry which uses special Time Analysis procedures to benchmark wells, generate NPT register and drilling activities charts. Such data is correlated with the associated formation according to depth and then subjected to further studies. The objective of this paper is to study and analyse the various drilling activities based on data taken from SADK. (Saudi Aramco Drilling Knowledge Base), to identify the crucial drilling practices mistakes in order to prevent them, or to provide better future engineering to the drilling program and its implementation. This work is specifically intended to study Qatif field in eastern Saudi Arabia. The geological formations (i.e. mainly shally limestone) is a challenging one because of the swelling problems, (where the shale react with water and increase in volume), which result in significant stuck-pipe problems. Throughout this study, some sample results will be revealed but more detailed information remains confidential to the agency concerned with this project. Introduction The total drilling time could vary significantly from the planed time because of limited knowledge about the geological conditions adjacent to the drilling string and also because of improper drilling practices (Kuhl et al., 2005; Jacinto, 2002). Unplanned time can be due to severe problems like losing the -radioactive based- logging tools in the crust (Aitken, 1994) in case if the pipe was stuck. Such a problem is called an NPT Non-Productive Time Incident. NPT losses are not only commercial but also environmental and ethical because they could lead to contamination of water aquifers and/or result in human diseases upon direct contact. Therefore, planning drilling programs should be based on a very precise risk assessment. The drilling plans are hindered by many unexpected NPT incidents such as stuck pipe, lost of circulation and lost communication with the logging tools (Kuhl et al., 2005; Jacinto, 2002). Since studying the probability and Utility Theory along with statistical Analysis constitute the pillars of the modern risk assessment (Kuhl et al., 2005; Jain, 1991; Bedford, 2001; Vose, 2001), similarly this study is done based on these principals. This paper aims to study the drilling operations conducted previously on Qatif field via a sample population of 27, (out of 102),

SPE xxxxx

wells. The idea is to use past experience in the field to drill new sections or work-over jobs. The method applied here depends initially on a software based system (a special Time Analysis sheets) that can benchmark wells in order to generate NPT register and charts. First, Qatif field is introduced before elaborating on the study. Qatif Oil Producing Field The field was discovered in 1945 and was first produced in 1946. It is located north of Dhahran ( Figure 1) and is composed of two domes structures: North and South domes. The field measures 50km x 10km and has seven oil bearing reservoirs: Arab-A / Arab-D Hanifa Upper Fadhili Lower Fadhili Qatif field produces Arabian Light Crude Blend (33- 35 API) at a capacity of 500,000 barrels (127,000 m) of crude oil per day (Al Dhubaib, 2008). It can also bring 370 million cubic feet (10,000,000 m) of associated natural gas along with 40,000 barrels (6,000 m) of high-value hydrocarbon condensate per da y. The fields processing facilities can also handle 300,000 barrels per day from offshore Abu Safah field. It is worth mentioning that Qatif field is the first intelligent field (I-Field) in Saudi Aramco equipped with measurement, communication, remote control and software for well surveillance and control. On the measurement side, wellheads have pressure and temperature transmitters, and selected key wells are equipped with permanent down hole monitoring systems (PDHMS) (Al Dhubaib, 2008).

Reasons for Field Choice Challenges associated with drilling. 1- Multiple reservoirs crossing. 2- Control issues in mud systems. 3- Existence of high pressure areas and lost circulation zones Technologically advanced and commercially very important field.

Drilling Time Analysis Generalization to the drilling performance in an oil field has been a challenge due to the lake of software based systems that can achieve this task (McLaren et. al. 2007). In this study Time Analysis program is used to benchmark drilled wells to obtain the NPT register and other NPT- vs. Pt charts for each well. Such data will be used to generalize the drilling performance via implementing special statistical analysis. The methodology of using the Time Analysis program will be explained briefly in the following subsections. Date Collection Details related to drilling are gathered from the daily drilling morning reports ( Figure 2) obtained from Saudi Aramcos database SADK (Ahmed 2010). The file is created via BEACON (Baker Expert Advice Canter/ Operations Network.centre). The data gathered may need special filtering in certain situations, e.g. correcting the times in raw data file to be readable and processable by

SPE xxxxx

the Time Analysis sheet. Eventually, the sheet should have the following data: Description of drilling events, time of the event (duration from start to end), Non Productive Time flag if available ( Figure 3). Coding Drilling Events The purpose of coding the drilling events is to make them readable by the Time Analysis Sheet so that it provides useful NPT charts for all drilled sections in a certain well. Codes are given based on the drilling operations status as shown in Table 1. A days activities should have a total of 24 hours only, starting from 5:00 AM to 5:00 AM the next day (Figure 4). In this step, caution is required in monitoring the status of time. In some situations, the company-man may time an event as a no -time consuming event. In this case modification is needed and a period of half an hour for the event is assigned to prevent errors in the Time Analysis sheet. BHA numbering, selecting phases and NPT classification BHA numbering, selecting the different drilling phases and classifying the NPT category are all important parts of the program to produce tables of the NPT events and the BHA statistics. All of this work is done manually in the following way: Each BHA is assigned a number starting from one, only if footage is drilled with it. Sections are then named according to the hole size of each drilled zone and phases are chosen (e.g. Drilling, Cementing etc.). NPT is classified in pre-set (programmed) categories and sub categories according to the description and history of operation. Refer to Figure 5. NPT Register The NPT register, (Figure 6), is basically a summary of all NPT categories in a well and their description. It is an initial step to obtain the final Risk Register and hazards assessment. The sheet reflects the impact Level by colouring cells as follows: Green: Level 1: 1-4 Hours. Yellow: Level 2: 4-8 Hours. Red: Level 3 -5: over 8 Hours Over 20 Hours.

In this step personal judgment with engineering sense to assess the NPT category most appropriately is applied. Thats done by carefully reading the drilling details next to that certain NPT event from the row data tab. Finally, a detailed summary of the problem is written in the NPT register tab. Statistical Analysis Developing Different Undefined NPT Charts As a matter of fact, it is not sufficient to depend on the charts produced by the Time Analysis sheet because it provides information about one well only. When studying a field (i.e. a group of oil wells), convenience and uniformity of data structure is needed rather than scattered and uncorrelated data (Figure 7). The following statistics reveal innovative approach of making charts of PT vs. NPT, to be analysed and eventually reintegrated into a final risk register. In the following paragraphs, steps that facilitate gathering information about problems encountered in any field, from the scale of the field to the individual sections in certain wells, will be presented. Time Data per Section The first step is to identify the times spent in every section. This gives a general idea about the number of hours spent in each section (i.e. both PT and NPT). Figure 8 shows a data table that is reported to the table in Figure 9, which is then graphed as

SPE xxxxx

shown in Figure 10. Observe that the bars are coloured red for NPT and green for PT when representing the drilling time status for all sections. Drilling Activity The second step is to identify time spent in each section and the activity involved. In this step, a new programmed sheet introduced by the author is used. The sheet calculates the PT and NPT automatically based on user input for the activity time charts taken from the Time Analysis sheet. This sheet was used by INTEQ-Baker and was successfully tested. The sheet not only calculates the activity time but it also ensures the accuracy of the input data by matching the total activity time to the charts taken from the Time Analysis sheet. Figure 11 shows the drilling activities calculator program and its corresponding chart. Using this calculator, plots are generated for each section for further analysis. Total NPT for Individual Wells In the third step, all well data is combined to produce a total time record for all wells to compare their PT vs. NPT. It is necessary to have an overview on the time analysis of each individual well. This step helps in further correlation of the NPT with the lithological structure encountered around each section to be drilled. Furthermore, it sets a starting point for an in-depth investigation and gives a comparative wide angle view of all wells. Refer to Figure 12. Sections vs. Wells NPT A section vs. wells diagram is now created. This is done by correlating wells with the same section sizes together for comparison and analysis. This helps investigate why some wells have more NPT than others. Also, it gives an idea about the status of a section in terms of NPT frequency to avoid it in future drilling operations. Example: Inspecting Figure 13 raises the following questions: What went wrong in QTIF-N? Why QTIF-N and QTIF-V have such large NPT compared to others?

Well vs. Sections This step enables us to have an in-depth view on all drilled sections of individual wells by plotting well vs. sections charts. Hence, it draws attention to the sections that have the most NPT and allows detailed investigation of the causes in each well. Refer to Figure 14. Highlighting the Major Risks in Different Sections The previous charts work as a handbook to look deeply into the details of a potential NPT to obviate its occurrence in future drilling operations. However, a document is needed that summarizes all potential risks in the reservoir where major risks in different sections are highlighted. To do this, the NPT incidents from the Time Analysis should were gathered for- each individual section and ordered according to well name in Qatif field. Note that all laterals of the same hole size are also included. Refer to Figure 16. NPT incidents are also collected in groups of similar nature, e.g. Stuck Pipe (Figure 17). This process provides information about the type of NPT thats most encountered in a certain section and, hence, eases the study process.

SPE xxxxx

Risk Assessment At the end, a table is constructed for each section (hole size) of potential risks that might be encountered during drilling. Suggested solutions are discussed with the various drilling divisions (i.e. logging, bits designers and drilling fluids experts) to develop appropriate drilling solutions. A Risk Register table contains the following information: Risk Identified, Cause, Consequences, Potential NPT Category, Potential NPT Sub-Category, Probability, Impact, Severity and Mitigation Actions. Refer to Table 2. Results Main hazards were identified specifically for the smaller cross sections because those sections are the ones that are susceptible to further drilling operations. Main NPT categories include: Stuck pipe, Equipment and hole problems. In the following we will demonstrate the main key conclusions obtained for Qatif oil field. The overall PT to NPT ration is 3 to1. That is for every 3 hours of planed drilling hours we will have one hour of unplanned -non productive- hour. Table 3 shows sample risk assessment results for the 6 1/8 section The overall results show that stuck pipe incidents are frequently occurring in different sections and usually with significant impact. The probability, impact and severity are based on the statistical boundaries presented in Table 4.

Discussion of Results The Risk Register serves as a reference of the main hazards that might be encountered while drilling. Suppose we are going to drill for work over or extended reach job in Qatif N well or close to it. Obviously from Figures 12, 13 and 14, this well in particular strives significant NPT incidents especially in the 6 section. Actually by looking at the benchmark data (Time Analysis) we observe that this well was planned to be drilled within 80 days. However it took 100 days extra to complete the drilling process. Looking at the Risk Register we can see that the main potential hazards for that particular section are: Stuck Pipe, Hole Problems and Well control Problems. Let our main concern be the one that govern all financial environmental and ethical losses and that is losing the BHA tools due to stuck pipe incident. Therefore, we look at our reference about the mitigation actions we proposed on the risk register. In this case we recommend lowering the mud weight to avoid differential sticking in addition to continuously reaming the wellbore. This is a sample of the precautionary procedures that can be followed with the air of this innovative method. Also, if the problem has already occurred we can follow some recommended actions provided in the mitigation section in the Risk Register.

Overall Findings Developing Drilling Solutions Figure 18 summarizes the logical cycle that should be followed as part of the learning process to the drilling case. As there is no one plan fits all, drilling engineers can make good use of the information provided by the daily drilling reports. Benchmarked wells provide details about the NPT via the NPT register. Furthermore, NPT data can be further analyzed to develop different undefined NPT charts that aid in generating an overall view about the drilling performance in each well, section or any combination of these

SPE xxxxx

two. Eventually, the drilling optimization engineer should be able to summarize all observations and solutions to the potential hazards and risks in one table. This table is called the Risk Assessment table and it explains the problem and the corresponding mitigation actions to each section size to be drilled in the reservoir. Lessons Learned (Conclusion) Ways to Interpret and Analyze Drilling Data i. During the process, it was important to come up with a wide variety of charts to correlate the NPT with the associated section, wells or geological formation. ii. Such charts are a reference component element of the whole process. Through the charts it is possible to identify the problems, investigate the responsible causes and design solutions. The Importance of Conducting a Risk Analysis Study i. Conducting a Risk Analysis study is extremely useful when attempting to plan a drilling program. It allows engineers to make use of the drilling experience out of existing wells to overcome previous operational mistakes. ii. It helps in creating better fit for purpose designs depending on many factors like the lithology in different sections, the reservoir fluids or the likelihood of experiencing certain risks. iii. By studying the probability and the severity of the risk, engineers are able to tackle the hazards more efficiently and economically. iv. Since hazards stand as an obstacle to a successful drilling operation, minimizing them would lower the number of BHA runs and save rig time. The ultimate goal is to obtain better drilling experience for wells planned to be drilled in the future. Future Work i. Atomization of this method where the daily drilling morning reports are fed to a web-based system on the rig-site. Such data are processed directly into a benchmarking system to create NPT register and charts for the drilling performance in each section. ii. NPT data for all the wells will need to be combined via an integrated program that we propose to be part of the web-based system. Therefore, we obtain a real-time drilling performance data base that aids in better decision making.

The uncertainty of drilling activities time reading is a very significant factor of the accuracy of the risk assessment results that we obtain. Therefore, it might be an astonishing idea to install a timer device with the BHA tools to measure various drilling activity times (e.g. Time of drilling, circulation, RIH, POOH, RU etc.)

SPE xxxxx

Nomenclature BEACON NPT POOH PT RU SADK Baker Expert Advice Canter/ Operations Network Non-productive time Pull out of hole Productive Time Rig-Up Saudi Aramco Drilling Knowledge Base

Acknowledgement The Authors would like to thank Dr. Sidqi A. Abu-Khamsin for supporting this work by providing advice. Special thanks go to Baker Hughes-INTEQ drilling applications team for giving permission to publish the content of this paper. Thanks to our supervisor Mr. Jahad M. Aldawood and our summer training manager manager of INTEQ Drilling Applications - Mr. Cliff Kirby for their patience and cooperation at all times and for giving us useful hints and guidelines which helped in the accomplishment of this project as planned.

References Ahmed, Imtiaz, and Adil Al-Marzooq. "E&P GIS: Integrating E&P Data and Applications." Saudi Aramco: 7-8. Web. 13 Dec. 2010. <http://www.saudigis.org/FCKFiles/File/SaudiGISArchive/4thGIS/Papers/3_AdilMarzooq_KSA.pdf>. Aitken, J.D., Holenka, J.M., Schlumberger/Anadrill; Torbett, D.E., Turner, K.W. "Operational and Environmental Safety With Nuclear LWD Tools" SPE Health, Safety and Environment in Oil and Gas Exploration and Production Conference, 25-27 January 1994, Jakarta, Indonesia Al Dhubaib, Tofig A., Soliman M. Almadi, Mohammad S. Shenqiti, and Abdallah M. Mansour. "I-Field Data Acquisition and Delivery Infrastructure: Case Study." SPE Paper 112201, The 2008 Intelligent Energy Conference & Exhibition, Held in Amsterdam, The Netherlands, 25-27 Feb. 2008. Bedford, T., and Cooke, R. 2001. Probabilistic risk analysis: foundations and methods. Cambridge University Press. Jacinto, C. M. C. 2002. Modelagem e simulao do risco na perfurao e completao de poos de petrleo e gs em guas profundas. M.S. Dissertation. UFF, BRAZIL. Jain, R. 1991. The art of computer systems performance analysis: Techniques for experimental design, measurement, simulation, and modelling. John Wiley & Sons Inc, New York, USA McLaren, G., N. M. Brown, Z. Okafor, and I. Megat. "Improving the Value of Real-Time Drilling Data To Aid Collaboration, Drilling Optimization, and Decision Making.", SPE Paper 110563, 2007 Annual Technical Conference & Exhibition, Held in Anaheim, California, U.S.A, 11-14 Nov. 2007. Nathan, E., J. O. Dagestad, T. Lillieng, and T. Pedersen. "Proven Commercial Implementation of Second-Generation Integrated Remote Drilling Operations Center." IADC/SPE Drilling Conference, 2006. Vose, D. 2001. Risk analysis: a quantitative guide, 2 nd Edition, John Willey & Sons.

SPE xxxxx

Figure 1(Location of Qatif Field)

Figure 1(Location of Qatif Field)

Figure 2 (Example Drilling Morning Report

SPE xxxxx

Figure 3 (Blank Time Analysis sheet)

Table 1 (Sample Codes Menu)

10

SPE xxxxx

Figure 4 (Time Analysis Coding & Raw Data Tab)

Figure 5 (Time Analysis - Process Data Tab)

SPE xxxxx

11

Figure 6 (Time Analysis NPT Register Tab)

Figure 7 (Different types of possible charts to correlate NPT with sections or wells etc.)

12

SPE xxxxx

Figure 8 (Time data according to section)

Figure 9 (Total time data for each section)

SPE xxxxx

13

Figure 10 (Bar representation of time data per section)

Figure 11 (Activity Time Sheet Aids in activity time calculation)

14

SPE xxxxx

Figure 12 (Total NPT for each individual well)

Figure 13 (Section - e.g. 6-1/8 - vs. wells)

SPE xxxxx

15

Figure 14 (Well-N vs. sections)

Figure 15 (Wells-A,B&C vs. sections)

16

SPE xxxxx

Figure 16 (NPT Incidents for the 6-1/8 section)

Figure 17(All stuck pipe incidents in Qatif field)

SPE xxxxx

17

Table 2 (Example Risk Register: 8-1/2)

18

SPE xxxxx

Table 3 (Sample results obtained from the Risk Register: 6-1/8)

Probability Impact

Low: x < 40% Low: x < 108 h 5

Medium 40 < x < 60% Medium: 108 h < x < 216 h

High: > 60% High: x > 216 h

The severity depends on the different combinations of probability and impact. They are ordered from 1 to 5 to reflect the more severe incidents with lower number (colored in red).

Severity

4,3

2,1 Table 4 (Results of probability and impact studies: used to estimate the severity of NPT incedents)

SPE xxxxx

19

Applying Drilling Plans as per Section

Wells Benchmarking

Planing Based on Experience

Risks & Hazards Identification

Suggesting Drilling Solutions

Figure 18 (The logical cycle to develop drilling solutions)