Revista E&P - Octubre 2011

E P MAG.
COM
OCT OB E R 2 0 1 1
Electromagnetics
Improving
Exploration
Success
Mature Assets
MPD/UBD
Subsea
Technology
Regional Report:
CANADA
Balancing cost and productivity
in stimulation technology
Balancing cost and productivity
in stimulation technology
WEIGHING
the opti ons
991-994 HEPcoversOCT_Layout 1 9/19/11 3:49 PM Page 991
991-994 HEPcoversOCT_991-994 HEPcoversOCT 9/19/11 3:23 PM Page 992
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REGIONAL REPORT:
CANADA
IMPROVING EXPLORATION SUCCESS
Mapping horizons leads to greater
exploration success
Banish the ghosts from marine seismic data
Three-D seismic advances improve
exploration success
ELECTROMAGNETICS
CSEM: Smoother seas ahead
Integration of seismic and CSEM data
reduces risk
MPD/UBD
Automated MPD improves drilling efficiency in
deepwater GoM
Closing the loop alleviates challenges
SUBSEA TECHNOLOGY
Dry breakaway technology delivers efficiency
MATURE ASSETS
Mature fields add to the bottom line
Perforation tunnel tool optimizes mature assets
IndustryPULSE:
Technology trends reshape
business landscape
Taking advantage of evolving technolo-
gies helps companies maintain a compet-
itive advantage.
EXPLORATION & PRODUCTION
W O R L D W I D E C O V E R A G E
OCTOBER 2011
VOLUME 84 I SSUE 10
A HART ENERGY PUBLI CATI ON www. EPmag. com
COVER STORY
32
Sleeves vs. Shots
The Debate Rages
Company preference between the two most
popular methods for stimulating horizontal
multistage completions breaks down to a
study in the economics of expediency versus
the economics of a systematic approach.
8
WorldVIEW: North Sea
operator continues to see
opportunity
Sticking with what you know can provide
a solid foundation for moving into new
frontiers.
12
Unconventional: Eagle Ford
Eagle Ford output continues
to soar
New data suggest the Eagle Ford shale may soon
become the biggest producing shale play in Texas.
42
46
50
54
58
66
68
62
80
72
84
01-6 TOC_OCT_01-4 TOC 9/20/11 8:52 AM Page 1
01-6 TOC_OCT_01-4 TOC 9/20/11 9:13 AM Page 2 01-6 TOC_OCT_01-4 TOC 9/20/11 9:13 AM Page 3
Gas production from the Norwegian Continental Shelf can supply millions of Europeans with power.
Both industry and homes are connected to a cost competitive energy source , and will remain so for decades
to come. Be enlightened goodideas.statoi l .com. There' s never been a better time for good ideas .
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AS I SEE IT
EFD program expands 5
MANAGEMENT REPORT
Collaborative tools come of age 16
DIGITAL OIL FIELD
New technology optimizes operations 20
Data environments prove viable best option for E&P customers 23
EXPLORATION TECHNOLOGY
Seismic leads the way for geothermal 27
WELL CONSTRUCTION
A new twist on an old problem 29
PRODUCTION OPTIMIZATION
Positive outlook for offshore 31
TECH WATCH
New system fills gap between PDM, rotary
steerable technologies 88
TECH TRENDS 92
INTERNATIONAL SPOTLIGHT
Nova Scotia shows promise as deepwater bright spot 95
INTERNATIONAL HIGHLIGHTS 102
ON THE MOVE/INDEX TO ADVERTISERS 106-107
LAST WORD
Reduce uncertainty, risk in drilling projects 108
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
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inquiries should be addressed to E&P, 1616 S Voss Road, Suite 1000, Houston, TX 77057; Telephone: 713-260-6442 Fax: 713-840-1449; custserv@hartener-
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photocopy is granted to users registered with Copyright Clearance Center/0164-8322/91 $3/$2. Indexed by Applied Science, Technology Index and Engineering Index
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DEPARTMENTS AND COMMENTARY
ABOUT THE COVER Companies continue to test the balance between plug
and perf (PNP) and openhole multistage (OHMS) completions, while ice remains a
challenge to Atlantic Canada operations. (Photo courtesy of Greg Locke; cover
design by Laura J. Williams)
COMING NEXT MONTH Read the November issue of E&P to find out the experts views on the
status and future of intelligent operations. See how operators are improving efficiency and take a look
at what is new in passive microseismic technology. Read the drilling feature for the latest advances in
drilling and automation control and the production feature to find out about innovations in flow assur-
ance and sand and water management. The Offshore focus for November investigates how new deep-
water interventions are being applied, while the regional report showcases the Middle East. A look at the
Woodford shale rounds out the issue. And dont forget to check out EPmag.comfor the latest news.
01-6 TOC_OCT_01-4 TOC 9/20/11 8:45 AM Page 4
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Next big shale play?
The Canadian Arctic
By Scott Weeden, Senior Online Editor
Onshore companies are focusing efforts
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Slow recovery rate projected for
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By Mike Madere, Senior Online Editor
GoM active rig count of 20 may be
unsustainable at the current pace of
permit approvals.
New Zealand could be net oil
exporter by 2030
By Scott Weeden, Senior Online Editor
Ministry of Energy and Resources
proposes changes to how oil and gas
exploration rights are issued.
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Noble follows Tamar, Dalit finds
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01-6 TOC_OCT_01-6 TOC_OCT 9/19/11 2:46 PM Page 5
PeriScope
Bring boundaries
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01-6 TOC_OCT_01-6 TOC_OCT 9/19/11 2:46 PM Page 6
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T
he Environmentally Friendly Drilling (EFD) program, managed by the Houston
Advanced Research Center (HARC), is funded by the US Department of Energy, the
Research Partnership to Secure Energy for America (RPSEA), industry, and environ-
mental organizations. The program focuses on technologies for developing energy
sources that can be cost effectively applied in environmentally sensitive areas.
According to Richard Haut, HARC senior research scientist, the program objective is
to identify, develop, and transfer critical, cost-effective, new technologies that can pro-
vide policy makers and industry with the ability to develop reserves in a safe and envi-
ronmentally friendly manner.
A European Chapter of the EFD program was created in September of 2010 kicked
off with a workshop held in conjunction with the 2010 SPE annual meeting in Flo-
rence, Italy. The goal was to identify and apply best practices in Europe and to identify
new innovations and applications, Haut said.
In the past two years, a new gas shale development is being initiated nearly every
week. As this new resource expands, opportunities are expanding for US companies that
have developed technologies and the wherewithal to expand internationally, he said.
The EFD management team works with Gerhard Thonhauser at the University of
Leoben, Austria, to manage the EFD European chapter and perform related research.
According to Haut, having US and European EFD programs enables all operators and
regulators to learn about technologies being developed and implemented throughout
the world, fostering relationships between Europe and the US.
Innovation knows no geographic boundaries, he said.
Although requirements in countries with strict regulatory standards possibly could
prevent the development of natural resources, Haut believes those same restrictions
also can encourage innovation and lead to the development of new technologies that
could be applied in the US as well as in Europe.
The EFD program addresses new low-impact technology that reduces the footprint
of oil and gas activities, integrates light-weight drilling rigs with reduced emission
engine packages, addresses onsite waste management, optimizes systems to fit the
needs of specific development sites, and addresses environmental issues. In addition,
the program includes industry, the public, environmental organizations, and elected
officials in a collaboration that addresses concerns on development of unconventional
natural gas resources in environmentally sensitive areas.
The EFD team has been evaluating the performance of a new low-impact drilling rig,
has participated in a number of gas shale workshops and meetings across Europe, and
has established a work scope for assisting with gas shale
development in the Ukraine.
The EFD team has briefed US and international govern-
ment agencies about unconventional gas issues, and we
have learned we all share similar goals and objectives,
Haut said.
As I
SEE IT
1616 S. VOSS ROAD, STE 1000
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P: +1 713.260.6400 F: +1 713.840.0923
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EFD program expands
7
Read more commentary at
EPmag.com
JUDY MURRAY
Editor
jmurray@hartenergy.com
Editor JUDY MURRAY
jmurray@hartenergy.com
Senior Editor RHONDA DUEY
rduey@hartenergy.com
Senior Editor TAYVIS DUNNAHOE
tdunnahoe@hartenergy.com

International Editor MARK THOMAS
mthomas@hartenergy.com
Associate Editor NANCY AGIN
nagin@hartenergy.com
Corporate Art Director ALEXA SANDERS
Senior Graphic Designer LAURA J. WILLIAMS
Production Director
& Reprint Sales JO LYNNE POOL
Senior Editor/Manager,
Special Projects JO ANN DAVY
Executive Editor Online RICHARD MASON
Director of Business Development ERIC ROTH
Group Publisher RUSSELL LAAS
Editorial Advisory Board
CHRIS BARTON
Sr. VP Business Development, Oil & Gas., KBR
KEVIN BRADY
VP, Sales & Marketing,Verdande Technology Inc.
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
Sr. VP of Marketing & Business Development,
Nabors Drilling USA LP
DENNIS A. YANCHAK
Sr. Geosciences Advisor, Apache Corp.
Vice President, Digital Media
RONS DIXON
Senior Vice President, Consulting Group
E. KRISTINE KLAVERS
Executive Vice President & CFO
KEVIN F. HIGGINS
Executive Vice President
FREDERICK L. POTTER
President & Chief Executive Officer
RICHARD A. EICHLER
07 AsISeeIt-OCT_07 AsISeeIt-OCT 9/19/11 2:46 PM Page 7
HARTENERGY
T
echnology is evolving fast. For that reason, it is
imperative that companies focus not just on the
changes happening today but also on emerging techno-
logical trends that are shaping the future of organiza-
tions and industries. The more anticipatory a company
can be with regard to technology, the more creatively it
can use that knowledge and planning to gain competi-
tive advantage.
Just-in-time training
Thanks to cloud-based technology, the world is on the
brink of a revolution in just-in-time training. This will
enable people to use their laptops, cell phones, and tablet
computers as a tool to receive training precisely when
they need it. In the current training model used by many
organizations, people often receive training before they
actually need the expertise, a practice that takes them
away from their jobs and costs the company money.
With just-in-time training, companies can keep people
in the field until they need specific training. When a
person needs a certain skill set to complete a job or do
a task, he or she can receive training in real time via
cloud-based technology.
For example, suppose a service company has new
drilling equipment that its technicians have to install and
operate in a manner different from what has been done in
the past. Rather than taking people out of work and put-
ting them in a multiday training course, the company
keeps them in the field. When it is time to install and
use the equipment, they can receive the training on
how to do so in real time via their mobile devices.
Suppose a technician has used the training module but
is still confused about a certain aspect of the machinery.
He touches the help icon on his screen, and it immedi-
ately connects him to a master trainer live on the screen.
The technician can put on a headband that has a camera
on the front, much like the headbands with lights that
people use for camping or car repair. By wearing this
digital, high-resolution camera that interfaces with the
mobile device, the field operator can show the master
trainer exactly what the issue is. The master trainer can
lead the field operator through the issue as if he were
standing right there. This approach promises dramatic
savings and increases in efficiency.
Using cloud-based technology for just-in-time services
goes far beyond installation or repair. It can be used to
train people on new software, product upgrades, and on
new policies and procedures, etc. And it is different and
better than a standard tutorial because the training can
be accessed via any device anywhere and at any time,
and it offers an option for live help. In reality, the appli-
cations for cloud-based, just-in-time services are virtually
limitless.
Processing power on demand
The increased bandwidth mobile devices now receive
enables people to connect to cloud-based technologies
easier and faster than ever before. And bandwidth will
October 2011 | EPmag.com
8
industry
PULSE
Technology trends reshape
business landscape
Taking advantage of evolving technologies helps companies maintain a
competitive advantage.
Daniel Burrus, Burrus Research
Embracing cloud computing can aid in training.
08-11 IndPULSE-OCT_08-11 IndPULSE-OCT 9/19/11 2:46 PM Page 8
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continue to increase. Because of this, another emerging
trend is processing power on demand or virtualized pro-
cessing power.
So many things already have been virtualized. Data
can be stored on a cloud-based network. Many compa-
nies choose this option for data safety and ease of
backup as well as for the ability to access the data via
any device. Desktops have been virtualized to be seen
on anyone elses machine.
It only makes sense, then, that processing power will
be virtualized too. In other words, a mobile device only
has a certain amount of processing power. But by tap-
ping into additional processing power via cloud-based
technology, users can turn their mobile devices into
super computers to perform advanced simulations and
crunch different data streams together to get real-time
analytics. Suddenly the handheld device is as powerful
and advanced as a desktop. If employees had the capa-
bility to do complex work that required advanced pro-
cessing power while they were on the road, armed with
nothing more than their mobile device, the increases in
productivity would be enormous.
Creative application of technology
For these trends and others to fully emerge, business
leaders have to consider what their people would do
with the technology. It is no longer enough to deploy
technology; companies have to consider how people
can creatively apply the technology to gain competitive
advantage.
To find the answer to this question, they need to ask
their internal customers (the people using the technol-
ogy in the enterprise) what they want technologically.
The next step is to give them what they ask for with the
understanding that most of them will under-ask
because they do not know what is technically possible.
What employees are not asking for is bigger and better
capabilities the things they do not even know exist.
The key is to go to the next level and give people the
ability to do what they currently cannot do but would
want to do if they knew they could. After all, people
really did not ask for an iPhone or a Blackberry. The
hidden need was the ability to access email and the
Internet without being tied to a desktop or laptop.
The goal is to put existing technologies together and
use them in a creative way. For example, there are liter-
ally thousands of features in Microsoft Word that users
can select, but most people are using only seven to 10
features. And competitors are using the same features,
which means companies are not getting any true com-
petitive advantage.
Managers need to ask questions such as, What fea-
tures would be great for our sales group (or HR, or
accounting department, or logistics people, etc.) to
use features that are so buried in the software that no
one knows they exist? Most IT departments will not ask
those questions because they are too busy making sure
everything is connected, working well, and safe. And if
they are not asking, who is? Chances are the answer is
no one. As such, it is safe to say that all tools are
underutilized.
Companies need to implement a communication
vehicle that engages the different groups served in the
enterprise sales, logistics, purchasing, accounting, HR,
etc. and help them understand the power of the tools
to which they have access.
One suggestion is to automatically show them a feature
of the day and how it can make their lives easier. This
approach provides information in short, fun, engaging
ways rather than in a hundred-page document (which no
one will read anyway) that details all of the features.
Creating a companys future
Many business leaders will say they are too busy to address
any of these trends. But if they do not
address them, who will?
Ultimately, whoever drives these
trends within an organization will be
seen as a significant contributor to
the enterprise. That someone can
drive results to the bottom line and be
a key contributor to the organiza-
tions success.
10
industry
PULSE
Desktops can be virtualized to be seen
on any machine.
I have someone retiring after 33 years on the job.
I have someone taking 33 years of experience with him.
And now someone with just
3 years has to do that job.
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.
y a
North Sea operator continues to see
opportunity
Sticking with what you know can provide a solid foundation for moving into new frontiers.
H
eadquartered in Denmark, DONG Energy considers
itself to be one of the leading energy groups in
Europe. Sren Gath Hansen, DONG Energys executive
vice president in charge of Exploration & Production,
refers to DONG as an integrated energy company.
DONG is the result of a merger among several large
players in the Danish energy sector. In 2005, we had
several separate power producing companies, an E&P
and gas transmission and wholesale company, and sev-
eral distribution companies, which we merged into one
joint company, Gath said.
Today the company has more than 6,000 employees
and is continuing to grow. Danish 76% state-owned
DONG had annual revenues in 2010 equaling US $10
billion (6.3 Bn GBP) with earnings of $2.5 billion (1.6
Bn GBP). In a Danish context, DONG is among the
three largest companies in the country. On an interna-
tional level, the company is classified as small to medium
size.
According to Gath, DONG is working to expand its
portfolio both as a major European utility player and as
an E&P company. Originally, power generation was
based on coal-fired plants, he said. We are now chang-
ing that to natural gas and biomass to decrease CO
2
emissions overall. In 2006, we set a target to reduce our
CO
2
emission per MWh by 50% in 2020, and we are
already ahead of our plan to reach this target. We are
also a world leader in offshore wind energy with signifi-
cant investments in Denmark, Germany, and especially
UK, Gath said.
As DONG continues to invest in its utilities arm, the
company also plans to expand its E&P offering. The
company operates across the Danish and Norwegian
continental shelves and is the largest license holder in
the West of Shetlands, with recent discoveries including
Glenlivet, Laggan, Tormore, Edradour, Rosebank,
Cambo, and Tornado.
At the end of 2010, DONG Energy held 73 licenses in
Northern Europe: 13 production licenses, 11 under
development, and 49 exploration and appraisal licenses.
DONG Energy operates 10 licenses in Denmark, seven
in Norway, eight in the UK, and one in Greenland.
DONG is a mixture of E&P and utility, said Gath.
We have seen better results in the first half of 2011 than
the same period in 2010, which was our best year to
date, outperforming most of our peers, he added.
Of the revenue for 1H 2011, 34% of the earnings came
from DONGs E&P sector. Part of our success is because
we have changed our strategy to strengthen our E&P
efforts while increasing our focus on green energy as
well, Gath said. In coming years, DONGs E&P develop-
ment will increase in addition to adding more wind and
biomass power generation to our mix, he said. The com-
pany is heavily invested in several wind farms that will
come online within the next two to three years.
From partner to producer
DONGs energy growth strategy was marked by several sig-
nificant events in the past 12 months. The Nini East field
on the Danish shelf was put into production, followed by
the Norwegian Trym field at the beginning of 2011.
Exploration for new reserves has resulted in two discov-
eries, one in the Solsort license in the Danish sector of the
Sren Gath Hansen, DONG Energys executive vice president, E&P:
Part of our success is because we have changed our strategy to
strengthen our E&P efforts. (Image courtesy of DONG Energy)
Tayvis Dunnahoe, Senior Editor
12
world
VIEW
12-15 WorldView-OCT_12-15 WorldView-OCT 9/19/11 2:46 PM Page 12
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ere at the beginning. Here for the future.
When you think of petroleum engineering and petroleum geology programs,
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COLLEGE OF EARTH&ENERGY
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world
VIEW
North Sea operated by DONG E&P and one in the
Edradour license in the UK sector in which DONG E&P is
partnering with Total, the operator. In 2010, DONG E&P
participated in investment decisions to develop the Lag-
gan-Tormore licenses in the UK North Sea and Marulk in
the Norwegian Sea, and it is initiating further develop-
ment of the Syd Arne field offshore Denmark. The com-
pany also has been awarded a new West Greenland
license, three in the UK, and one in Norway.
We have a well diversified portfolio comprising assets
in mature areas in the Southern Norwegian and Danish
North Sea, assets with fresh new production in Mid-Nor-
way, assets in growth areas such as West of Shetlands, and
frontier areas such as the Barents Sea and Greenland,
Gath said. The companys strategy has been to focus on
these areas: We know the political systems, we know the
business culture, and, we know the subsoil, he said.
Gath believes there is good value in partnering with
larger operators. We always play an active role in projects
because we are learning at every phase and believe that we
can contribute in a value-creating way, he said. DONG is
currently one of the largest holders in the West of Shet-
lands. We set out a long-term strategy, Gath said. In
2000, the company made the decision to get into the
West of Shetlands when few people believed in the areas
potential. We wanted to fully understand the region. We
wanted to be basin masters who understood all the plays
in the area, he said. The company has managed to break
the code in the West of Shetlands and has participated in
nine discoveries in the area since 2000.
Our primary objective for all of our operations is to
develop and understand the subsoil in a particular region
and make a difference with this applied knowledge,
Gath said.
Although some of the companys assets could be consid-
ered mature fields, many have years of production
ahead.
The Siri area, for example, was estimated to contain 50
MMbbl when production started in 1999. Weve produced
110 MMbbl and still expect to have about 10 more years of
strong production left, Gath said.
The recent Solsort North Sea discovery shows that the
Danish sector still has viable prospects to be discovered.
DONG has increased its operating potential through
a variety of successful partnerships with larger, more
experienced operators. In the mid-Norwegian North
Sea, DONG holds a 10.3% interest in the landmark
Ormen Lange development project. The field, which
is 40 km (25 miles) long field and 8 km (5 miles) wide,
showcased one of the worlds first subsea-to-beach produc-
tion facilities from such deep waters. This field is pro-
duced from the sea floor 120 km (75 miles) from shore.
Partnering in Ormen Lange gave DONG assurances
toward developing similar projects. As Totals only partner
in the Laggan-Tormore development offshore West of
Shetlands, DONG holds a 20% interest. This develop-
ment, which is being called a mini-Ormen Lange, will
exceed the record set for subsea-to-beach production by
producing through a multiphase system 143 km (89
miles) to shore.
Frontier player?
While DONG has proven its viability close to its native
Denmark, the company is not opposed to moving out fur-
ther. It is active in two frontier areas, including the Barents
Sea and offshore Greenland. We will be drilling our first
operated well in the Barents Sea in November this year,
Gath said.
In Greenland, which Gath considers to be a true fron-
tier, the company has participated in exploration activi-
ties since 2000, when it partnered with Statoil on the Fylla
well. The company now holds two licenses: one in partner-
ship with ExxonMobil and Chevron and another with
ConocoPhillips.
The companys strategy is to operate in areas where it
has an understanding and has competencies to bring to
the table such as in the North Sea. We would like to be
capable of doing anything, but our size provides some lim-
itations. Our goal and our strategy in frontier and areas
with huge challenges is to become a strong and coopera-
tive partner to larger companies that have more experi-
ence, Gath said.
DONG expects to see about 10 more years of strong production
from the Siri area, which has delivered 110 MMbbl of oil so far.
12-15 WorldView-OCT_Layout 1 9/20/11 11:21 AM Page 14
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here are many factors challenging the industry today.
Domestically in the US, there are concerns with
uncertainty from Washington DC and the fallout from
the Macondo oil spill and subsequent moratorium on
offshore drilling. There is a shortage of young people
entering the oil and gas industry at a time when the
workforce is reaching retirement age. Globally, there has
been a trend toward increasing demand for oil and gas
in the face of a decline in exploration over the last 24
months. And political unrest in major producing coun-
tries in the Middle East has made countries that are
reliant on hydrocarbon imports uncomfortably aware of
their vulnerability. In the face of all of these challenges
is the demand to reduce time to deployment despite
higher-than-ever development costs.
This situation is compounded by the do more with
less mentality that is so ingrained it is hard to think
about innovative ways to tackle these issues.
The good news is that technology can help ease the
pressure. Collaboration tools have come of age and hold
the promise of addressing many of these concerns and
very cost-effectively.
Technologies, networks mature
Videoconferencing has been around for years. While it
is a well understood technology, the endpoint products
historically have been costly. Most products only liked to
talk to the same brand of equipment worldwide, and
the major expense was the cost of a quality network. In
certain parts of the world, high-speed circuits simply
were not available.
Both sides of the equation have changed dramatically
in recent years.
Conferencing equipment is largely standardized,
and pricing for endpoints have dropped significantly.
Newer products also use bandwidth much more effi-
ciently than products produced as recently as five years
ago. The spectrum of offerings is impressive, ranging
from basic, low-end offerings that are essentially free,
to complete Telepresence suites that provide lifelike
HD experiences.
In the same time frame, options for high-speed Internet
access have expanded, even in countries where it takes
years to get a telephone line. The same is true of offshore
networks high-speed Internet is now an expectation on
the rig and one can take advantage of that to collaborate
with co-workers around the world, bringing the best minds
on the planet together to make important decisions or to
solve a problem.
Baby steps
For many energy companies the first use of collabora-
tion and video tools was not initiated by the IT depart-
ment. Individuals who saw the need took matters into
their own hands and deployed webcams or handheld
video devices like Ciscos Flip camera and used free
products like Skype and Google Video Chat to share
information and collaborate. Every iPhone user can
videoconference and now expects to be able to do at
least that in the workplace.
These low-cost entry level collaboration tools are sur-
prisingly good and in many cases are free but for the
cost of a webcam (most laptops and tablets today come
equipped with at least one camera whether buyers want
it or not). When troubleshooting a problem on a rig,
this approach may not be technically pristine, but it gets
the job done. Some of these free video chat tools are
surprisingly effective, and the price is certainly right.
Another option to consider is Microsofts Lync prod-
uct, formerly known as Office Communication Services
Collaborative tools come of age
In a resource challenged industry, leading companies are using collaboration tools to bring
the best minds together to make the best decisions.
Dave Jacobs, TechKnowledge Consulting Corp.
16
management
REPORT
Ciscos Telepresence is the market leader in the high-end video
arena. (Photo courtesy of Temple Webber Photography)
16-19 MgtReport_16-19 MgtReport 9/19/11 2:47 PM Page 16
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(OCS). Most of the Lync functions are embedded in
existing Microsoft products. Many large energy compa-
nies already have some of these functions as a result of
existing enterprise license agreements. Lync includes
easy-to-deploy Instant Messaging (IM) and video chat
sessions and also can provide basic telephony services
that can be useful in settings where deploying a tradi-
tional phone system is impractical.
Many energy companies spend thousands of dollars
with third-party conferencing companies, unaware that
conferencing and collaboration servers are cost-effective
options. For any company spending more than $2,500 a
month with a third-party provider, a conferencing server
may make sense. They are available in a variety of config-
urations, but all replicate the basic bridging function
of a third-party provider, complete with controls for the
host. Many offer a collaboration tool that permits every-
one on the call to view an image or document, and some
also offer video chat. The better offerings integrate with
Outlook, providing conferencing as an option when
sending a meeting invitation. Some also
offer recording and archiving for those who
cannot participate in the real-time confer-
ence. One example is Avayas conferencing
server, which is part of the Avaya Aura prod-
uct set. Webex can be an equally effective
method of collaborating and is available for
purchase as a secure corporate server or as
an affordable pay-by-the-use service.
Cost-effective videoconferencing
With high-speed Internet access available in much of the
world, the challenge of delivering a quality video circuit
is to some degree resolved. An HD quality experience
may not be possible everywhere in the world, but even
the most basic Internet connection can provide a rea-
sonable video experience. Consider how often news cor-
respondents broadcast from a remote location using a
satellite Internet connection not the most elegant
video quality, but effective nonetheless.
While it is nice to see a persons face on the screen, in
many cases the purpose of a videoconference is not to
interact with an individual the more important aspect
of the conversation is to collaborate and review a piece
of information, a seismic image, some interesting data.
Video conferencing and collaboration tools provide the
ability to do that in HD, accomplishing most of the
objectives of a face-to-face meeting. Reduction in travel
is appreciated by both employees and employers, but
the real benefit is better decision-making and a substan-
tial reduction in the time
required to make important
choices. Mainstream
providers such as Tandberg
(recently acquired by Cisco),
Polycom, and Lifesize offer
quality products that are sur-
prisingly affordable.
When the key objective is
personal interaction, Cisco,
Hewlett Packard, and Poly-
com offer very lifelike high-
end conferencing systems.
Ciscos Telepresence is the
market leader in the high-
end video arena. The com-
pany has deployed more than
1,000 purpose-built Telepres-
ence rooms worldwide.
Each provider offers a wide array of
products, large and small, so even a
remote location can participate cost
effectively.
There is little doubt that the floodgates
are opening, and video conversations are
soon to be the norm. Although most com-
pany IT networks are not prepared to
make the leap to video anywhere/any-
time, the time to start planning and
deploying video is now.
18
management
REPORT
RIGHT: Most laptops and tablets today come
equipped with at least one camera. BELOW:
Videoconferencing has become standard
practice in many companies.
16-19 MgtReport_Layout 1 9/20/11 11:40 AM Page 18
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ringing a new offshore oil field into full production
requires timely and accurate decision-making
informed by current conditions. Without proper real-
time surveillance, however, new fields can be hampered
by uncertainty especially during start-up periods,
where rapid assessment of field operations and produc-
tion conditions is critical to maximizing production.
Ensuring optimum production is not simply a matter
of building the infrastructure, installing equipment, and
flipping a switch to begin operating. New fields require
the right combination of technology and planning at
every step of the process. Without adequate means to
obtain critical information, the process can be long,
cumbersome, and ripe with the chance of error.
Potential pitfalls
Exploration and development company Ithaca Energy is
well aware of this and is taking the necessary steps to
minimize improvisation in the development of the new
Athena oil field offshore Scotland. The Athena oil field
a joint venture among Ithaca Energy, Dyas UK, EWE,
and Zeus Petroleum expected to produce approxi-
mately 22,000 b/d of oil at startup. Field operator Ithaca
Energy sought the latest monitoring technology avail-
able to help with well management and surveillance
and to ensure optimal production processes. To ensure
expedient startup and maximize production, Ithaca
Energy needed to find the right mix of technology to
help personnel spend less time gathering data and more
time meeting the organizations operational objectives.
The company needed technology that would provide
real-time insight into processes and performance to com-
bat the uncertainty and inaccuracy that often impede the
process of bringing new fields onstream. In addition, oil
fields are frequently subject to variations in well perform-
ance, artificial lift variables, topsides process conditions,
and other factors. These, in turn, can cause large fluctua-
tions in total production. Also, process data obtained
in these conditions is frequently subject to flat lines,
dropouts, and errors that require cleansing for proper
and accurate data processing.
Well rate estimations require calculations and correla-
tions using accepted first-principle methods, and these
must be adjusted and recalibrated according to field
conditions. The resulting estimations must then be pre-
sented clearly and accurately to decision-makers and
in a format that allows them to consult with their peers
and respond to situations in a timely manner.
Digital advantages
The Athena oil field required technology that would
address these factors as much as possible while ensuring
optimal production. Ithaca Energy found the answer to
its requirements in digital oil field management technol-
ogy for the flexibility and control it offered. Central to
achieving this was selection of well surveillance software
from Honeywell Well Performance Monitor (WPM)
which provides an easy-to-understand, real-time snap-
shot of key operations through one information hub,
helping key personnel and decision-makers visualize the
performance of the entire field.
For Ithaca Energy, choosing the Honeywell WPM soft-
ware was the first step in the process toward establishing
a digital oil field on Athena. The next stem was the
implementation process, which entailed determining
the proper approach as well as the appropriate phases
and structure of the system. Working with Honeywell,
Ithaca Energy took a vertical (from data sources to end-
user visualization) and phased approach to deployment,
implementing an adequate amount of functionality at
every automation/IT layer to achieve the business objec-
tives, but allowing room for growth and adaptation
based on potential new objectives and future levels of
functionality.
digital
OIL FIELD
New technology optimizes operations
The Athena field is powered for performance.
Joel Chacon, Honeywell Process Solutions
Honeywells program allows engineers to monitor ESP perform-
ance to better manage production. (Images courtesy of Honey-
well Process Solutions)
20-22 DOF-Honeywell_20-22 DOF-Honeywell 9/19/11 2:47 PM Page 20
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From a timing perspective, the phased implemen-
tation eliminated costly uncertainty and guesswork
during the ramp-up period of the new field and
ensured Ithaca Energy would have a fully tested sys-
tem available when the field came onstream. It also
left room for future growth and improvement.
Once the field is on production, the WPM system
will enable the engineering team to monitor how
the Athena wells are performing compared to
expectations. To complement the WPM system,
Ithaca Energy also selected an out-of-the-box mod-
ule for Well Test Validation from Honeywell, further
supporting the objective of establishing optimal well
performance conditions.
Taking a three-phased approach, the operator first
established system requirements and developed a
general design for the integrated system. At its core,
the Athena field development is producing from
wells in which production is being boosted by electrical
submersible pumps (ESPs). Engineers sought to auto-
mate the well production test capture, analysis, and vali-
dation process, so Ithaca Energy formed the projects
main objectives around the set of functions as applicable
to ESP wells, and by modifying WPMs Well Test Valida-
tion module, as required, to achieve those objectives.
Honeywell helped extend the Well Test Validation
modules functionality to cover specific model-based val-
idation steps on the well. As part of this activity, the tech-
nology provides suggestions of possible well model
adjustments to match recent well tests.
Using the module, production engineers can quickly
calculate and recalculate well test results based on stable
process variable averages to capture valid well tests even
prior to creating the well test record. If the well test is
deemed valid, the system executes a match with the well
model and suggests potential adjustments. This provides
engineers with the level of detail necessary to accurately
determine which parameters actually require modifica-
tion. The engineers have the final word on what well
model adjustments require changes or if a new well test
is required to validate the results of the analysis.
Visual models will help predict what each well is capable
of producing. The WPM technology can extract summary
information and key performance indicators from real-
time process data historians, production databases, and
engineering well models, allowing operators to visualize
field performance data and manage equipment assets.
This picture shows where shortfalls in production are
occurring so engineers can take immediate steps to cor-
rect them and maximize the production potential of each
well. WPM also helps personnel manage costs associated
with surveillance by enabling engineers to identify abnor-
mal situations quickly and react rapidly to disturbances.
Because of the systems flexibility, Honeywell is help-
ing Ithaca Energy use the system to automate as many
routine actions as possible to free personnel to focus on
more complex tasks and decision-making. By enabling
greater automation, the system saves engineers time
while providing them with the detailed insight needed
to make sound, informed decisions that ultimately affect
well performance.
Fine-tuned performance
The second stage of implementation entails deploying
the software in a simulated environment, which is
enabling operations managers to test the system, train
personnel, and fine-tune processes so they can be as
fully operational as possible when the wells begin to pro-
duce. This is especially critical because the oil field is
being developed concurrently with the system.
In the third stage, Honeywell will work with Ithaca
Energy to ensure a smooth changeover to the produc-
tion environment. This involves working with the system
users and adjusting the softwares calculation and esti-
mation methods to reflect actual field conditions so
engineers can access critical real-time information to
pinpoint underperforming wells and help improve col-
laboration throughout the team. When the changeover
occurs in late 2011 and the wells start producing, Hon-
eywell and Ithaca Energy expect the preparations cou-
pled with the advanced technology capabilities will
ensure the Athena oil field is running optimally from
day one and that it continues to perform efficiently long
into its future.
digital
OIL FIELD
WPM will provide the operator with a real-time snapshot of key opera-
tions on the Athena field.
E
&P companies today are very knowledgeable about
identifying and investigating best-in-class technology
resources that support the demanding core tasks that their
business requires. These requirements include some that
are unique to the oil and gas industry and thus extend
beyond conventional business IT requirements including
seismic interpretation, wellpath planning, and the trans-
fer/availability of extremely large data volumes that sup-
port multiple areas of exploration and mapping. All
of these are tied to improved workflow performance,
which means reducing the amount of time and resources
required to assess, deploy, and manage projects that deliver
optimal results. Efficiency and productivity are critical
requirements for the bottom line.
Inherent to optimizing workflow performance is the
ability to identify and leverage top-tier data environments
that not only support but enhance productivity and effi-
ciency while ensuring 24/7 security and reliability. Some
companies are recognizing the value of scalable, sophisti-
cated data center environments.
Petroleum Geo-Services (PGS) is one such company
that stands at the leading edge of this trend. It reposi-
tioned a significant portion of its IT infrastructure to
CyrusOnes Houston West data center several months ago.
David Baldwin, service support manager at PGS, noted
several areas of performance that convinced him and his
colleagues that a co-located environment was the best
option for the company.
Cost efficiency is paramount
The most important factor CyrusOne encounters is cost
efficiency, namely reduced power costs. Over the past half-
decade, IT teams have experienced a dramatic increase in
power requirements for data and network infrastructures.
This is because the core hardware and architecture have
evolved very rapidly toward high-density data environ-
ments in which power requirements have moved from
100 kW of power per sq ft to 300 kW/sq ft. Some high-
density environments can reach 500 kW/sq ft. Managing
power requirements and projecting budget outlays for
ever-increasing power needs becomes more difficult and
unpredictable as these requirements continue to escalate.
IT teams have three core options build a data center,
retrofit an existing center to meet current and future
requirements, or co-locate with a hosted data provider.
Build vs. buy analytics clearly indicate that co-location is
the best option in many cases.
CyrusOne reviews the various scenarios with prospective
and current customers on a regular basis. The most
underrepresented factor when IT teams conduct their
own analysis is power requirement. As previously men-
tioned, it becomes more difficult to execute this analysis
correctly when confronted with power consumption met-
rics that increase rapidly and continuously over a short
period of time. This years budget will not be next years
budget; that much is certain.
A company that wants to build its own data center must
consider the most advanced and scalable power supply
architectures to ensure the facility will adapt to future
technology, increased space, and growing electricity
requirements. This is an expensive undertaking to say the
least a high-density data center built to meet the most
advanced and most flexible specifications will exceed US
$500/sq ft for a 10,000-sq-ft build. Economies of scale
become critical at this stage of decision-making. A co-
located data center is built to house multiple customers
across a much larger and more dynamic architectural foot-
print, thus distributing and mitigating both cost and risk.
Because of the nature of data center business and opera-
tional models, top tier co-located data centers are designed
EPmag.com | October 2011
23
digital
OIL FIELD
Data environments prove viable
best option for E&P customers
Co-located centers help ease IT headaches.
Kenneth Wolverton, CyrusOne
Having several customers in one facility provides economies of
scale for power consumption. (Images courtesy of CyrusOne)
23-26 DOF-Cyrus_23-26 DOF-Cyrus 9/19/11 2:47 PM Page 23
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Reduced infrastructure management
Oil and gas companies want to focus less on managing data infrastructure,
including routine maintenance and iterative processes, and focus more on core
competency and business-facing workflows. But for many IT teams, a large pro-
portion of their workload is spent executing routine tasks in the name of quality
control and supervision.
Co-located data centers are able to offload routine maintenance and tasks
without sacrificing peace of mind. In fact, this is another area that PGS cited as a
principal factor in its decision to migrate to co-location with CyrusOne. Leverag-
ing intrinsic on-hand expertise is a fairly easy decision for many customers.
Additionally, many co-location providers offer training to further enhance the
efficiency and effectiveness of client work teams. Some clients prefer to manage
all or most workflows themselves, while others carefully choose select process
points at which to directly engage. In either scenario, on-hand training offers
valuable insight and improved techniques for managing and coordinating criti-
cal pieces of the data infrastructure puzzle.
Future-proof scalability
The third component that all customers appreciate is a forward-designed data
center environment. As requirements and architectures change, and as hardware
and network protocols change, the data center remains ahead of the curve at
every stage, and customers can scale their respective infrastructures accordingly.
Co-located customers can adapt and alter their data infrastructures as needed
without headaches or bottlenecks. This arrangement aids greatly in planning
because customers can reliably predict and anticipate next years budget with a
great degree of certainty. Like most top tier co-located data centers, CyrusOne
anticipates change based on innovation models and advances in technology and
can thus ensure seamless upgrades and modification of existing systems and com-
ponents. The technology curve is an elusive thing in many respects, but through
expertise and a deterministic approach to future needs, CyrusOne ensures its cus-
tomers are empowered to stay well ahead of this ever-shifting curve.
Another important aspect of remaining ahead of the curve is the ability to
remain fully compliant with environmental standards and/or mandates, which
can vary widely between regions. Any top-tier co-location provider should remain
fully abreast of all environmental control factors and maintain full compliance at
every required stage.
According to Baldwin, this feature of the CyrusOne value proposition gave
PGS great confidence in consolidating the bulk of its IT infrastructure within the
Houston West data center. You have to be certain that the new environment is a
better and more secure environment and that it can be
managed and adjusted as needed without complication
and with the full certainty that no interruptions, only
improved performance and efficiency, will occur. EPmag.com
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I
O
perators in North Americas shale plays are increas-
ingly relying on microseismic information to deter-
mine fracture length and orientation during hydraulic
fracturing operations. This understanding often impacts
the location and orientation of future wells.
In a proposed geothermal project in the UK, informa-
tion from the seismic around the first well will determine
the exact location of the second well. Once again, its all
about the fractures.
The Eden Deep Geothermal Energy Project in Corn-
wall is an ambitious attempt to tap into the heat buried
beneath the granite in the area. The Cornubian
Batholith, sort of a granite spine in Western Europe,
brings geothermal heat closer to the surface and lowers
drilling costs, according to Edens website.
The idea is to drill a 4-km to 5-km (2.4-mile to 3-mile)
borehole into the granite, where it will encounter
temperatures of about 180C to 190C (356F
to 374F). Water will be pumped into this
borehole to open up natural and
induced fractures in the rock.
Borehole seismic sondes developed
by DJB instruments will be deployed
around the borehole. The sondes can
be buried to 400 m (1,300 ft) deep, do
not need a clamping mechanism, and
have large accelerometers and low-noise
amplifiers to provide a very high output
and make them sensitive to small signals.
The accelerometers, according to DJB litera-
ture, have a larger bandwidth than geophones and
seismometers, facilitating additional analytical treatment
such as source parameters.
The sensors also have very low power consumption
and can be operated from a car battery. The sondes will
be triangulated to find the exact locations where frac-
tures are opened and then slipped by a shear mecha-
nism. By imaging this location, the second borehole
can be sited.
The sondes monitor whats happening in terms of
the water and the movement of the rocks, said Paul
Hunter, managing director of DJB. Weve supplied six
sondes to the Eden Project, and they will be put around
the perimeter and keep monitoring and measuring
whats happening.
Its important to drill into these open fractures
because thats where the magic of geothermal comes
to bear. Water pumped down the first borehole will be
heated, transferred to the second borehole through
the fracture network, and sent back to the surface as
steam to provide electricity.
Eden Project participants have partnered with ESG
Energy to build the facility to generate both
heat and electricity. The site is located in a
parking lot and has been sanctioned by
the Cornwall Council.
When complete, it should have a
capacity of 3 MW to 4 MW of elec-
tricity and should be able to gener-
ate about 95% of the time. Its
expected to supply enough elec-
tricity to support 3,500 households
as well as some heating capacity.
An ESG plant is very efficient when
compared to many other systems, the
website states. Around 30% of the power
created by the plant will go back into pumping
water around the system, so it can be said to be
about 70% efficient overall.
Covering an area about the size of a rugby pitch,
the plant will run 24 hours a day, more than 345 days
per year, and is expected to come onstream in 2013.
DJB, meanwhile, is already developing its next
generation of sondes to operate at greater depths
and temperatures.
Might there be applications to oil and gas opera-
tions? Only time will tell.
But any device that can so
accurately pinpoint open
fractures is certainly worth
a look.
Seismic leads the way for geothermal
Sondes identify exact location of open fractures.
EPmag.com
RHONDA DUEY
Senior Editor
rduey@hartenergy.com
27
exploration
TECHNOLOGY
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27-28 ExpCOL-OCT_27-28 ExpCOL-OCT 9/19/11 2:48 PM Page 27
27-28 ExpCOL-OCT_27-28 ExpCOL-OCT 9/19/11 2:48 PM Page 28
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MUL
well
CONSTRUCTION
I
t was no surprise that Offshore Europe this year was
once again jam-packed with new and trusted tech-
nologies being applied in the North Sea and abroad.
The Aberdeen, Scotland, event was well-attended,
and the options for things to see were many.
One of the more interesting technologies was
exhibited by a hometown company, Aberdeen-based
Deep Casing Tools, which had on display its new Tur-
borunner. The turbine-based tool is designed as a
high-speed reaming system that enables completions
to be landed at target depths, especially in areas like
the Saxon field in the Central North Sea, where bore-
hole stability can be a significant challenge due to the
occurrence of interbedded shale layers.
In addition, horizontal openhole sections often are
interspersed with reactive and collapsing clay layers.
These conditions combine to provide a very challeng-
ing environment for landing production liner at TD.
In a recent project, there were problems with a
planned well design that involved drilling an 8 -in.
hole from a semisubmersible, then running a 7
5
8-in.
predrilled liner 1,000 m (3,000 ft) horizontally to
2,650 m (8,700 ft) TD. This proved difficult, and the
completions team opted to sidetrack the well with a
larger 9 -in. horizontal drain to give a new predrilled
liner a better chance of reaching TD. String rotation
was not an option due to the limited torsional yield
strength of the flush joint connections being used. A
single-run PDM motor also was not viable due to the
risk of a pressure spike on stalling or starting, which
could set the liner prematurely.
The Turborunner made sense because the stand-
pipe pressure actually drops as the tool is loaded or
stalls, which proved to be a significant operational
advantage. The tool was used to wash and ream the
liner to target depth within a 12-hour period. It recov-
ered 1,000 m of open hole, accessing 530 m (1,750 ft)
of net pay. It was operated at circulation rates up to
7 BPM, with 400 psi across the tool and a stand-
pipe pressure of 900 psi.
The tools unique design combines high-
speed rotational reaming with very low oper-
ating pressures. The turbine design allows
RPM to slow and even stall without any reactive
mechanical torque, nor does it cause uncontrollable
pressure spikes. The reamer shoe is the only part that
rotates, so the completion string and any complex
completion equipment remain stationary with a need
to rotate.
In theory, this tool operates as if there was a drill
bit on the end of the completion string. In many
cases, it could provide the best technical shot in land-
ing difficult completion strings.
This tool has been used prima-
rily offshore, but it will most
likely debut in land develop-
ments very soon.
A new twist on an old problem
A new turbine-based technology is providing affordable insurance on
troubled wellbores.
EPmag.com
TAYVIS DUNNAHOE
Senior Editor
tdunnahoe@hartenergy.com
29
In theory, this tool operates
as if there was a drill bit
on the end of the
completion
string.
In many
cases, it could
provide the best
technical shot
in landing
difficult
completions
strings.
29-30 WellConstruction-OCT_29-30 WellConstruction-OCT 9/19/11 2:48 PM Page 29
29-30 WellConstruction-OCT_29-30 WellConstruction-OCT 9/19/11 2:48 PM Page 30
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A
ttending one of the oil and gas industrys major
trade shows is always a tiring but rewarding experi-
ence. Much as we like to feel that we are in touch with
emerging trends and issues in the E&P sector, there is
only so much that can be learned behind a desk.
And so it was very enlightening to walk around the
packed halls, aisles, and stands at the SPE Offshore
Europe show in Aberdeen, Scotland. Once an event
dedicated to the North Sea sector, it has now devel-
oped into a truly global gathering, attracting some of
the industrys biggest players.
The clearly upbeat mood among the vast majority
of the participants was evident, and the buoyant opti-
mism that 2012 is going to be a good year was virtually
palpable.
Talking to the Chairman of the event, Samir
Brikho who also is CEO of UK-based
engineering and construction major
AMEC Plc it was obvious that he
felt the same vibe. We have
been talking about whats hap-
pening and why, and it may be
that there are many uncer-
tainties, he said. But the
fundamentals of the business
are here to stay and are defi-
nitely good. Its very clear
that if you want to manage
supply and demand, theres no
room for complacency. The
operators would clearly like to
continue with their investments.
They do not view the daily oil price as
the measurement for their business. Also,
weve been talking about national oil companies and
their changing role. That is going to be the future. We
have many more opportunities now to supply interests
in different regions with different technologies and
different cases.
Who was able to predict the Arab Spring? he con-
tinued, saying it had substantially changed the supply
and demand issue, with much more activity likely to
come from that region. Commenting on the changes
in Libya, Brikho said, This is clearly going to open up
for business. It has been relatively small-scale com-
pared to what it is going to be now. That is something
we could not have predicted.
Brikhos thoughts were echoed at the show by
energy analyst Kader Dicko of Infield Systems who
agreed that the long-term market fundamentals are
conducive for growth, although the health of the
global economy could play a major role in
influencing this process.
He flagged up the prospects for
increased activity in the North Sea,
as well as in the Arctic and the
Black Sea (following ExxonMobil
and Rosnefts deal), and of
course in the Golden Trian-
gle of deepwater Latin Amer-
ica, Africa, and the Gulf of
Mexico.
With a global offshore capex
forecast for the period 2011-
2015 of US $473 billion, the
fundamentals do indeed look
positive, according to Infield. Inter-
estingly, shallow-water activities (i.e.
the North Sea) will still play a prominent
role in that expenditure, Kader said.
His figures indicate that of the predicted capex of
$84 billion for Europes offshore sector, around 85%
will be spent on shallow-water projects. Just to put it in
perspective, that figure is $3 billion less than the fore-
cast capex for Africa and $7 billion more than esti-
mated for Latin Americas booming offshore
both much higher profile regions.
The optimistic mood for
2012 and further out for
the offshore industry looks
justified.
production
OPTIMIZATION
Positive outlook for offshore
Feel good factor in Aberdeen shows strong belief in industry fundamentals.
EPmag.com
MARK THOMAS
International Editor
mthomas@hartenergy.com
31
Photo courtesy of
SPE Offshore Europe
31 PRODcol-OCT_Layout 1 9/20/11 8:47 AM Page 31
COVER STORY: ADVANCES
IN WELL CONSTRUCTION
32
S
eldom have two different approaches to the same
goal elicited so much controversy. That hydraulic
fracturing is the only practical way to coax unconven-
tional hydrocarbons out of tight shale beds, whose per-
meability often registers in nanodarcies, is a given.
However, selecting the technique that is best for the par-
ticular well or reservoir in question is quite challenging.
To get a sense of the conventional wisdom surrounding
shale completion decisions, Qittitut Consulting, a Hous-
ton-based international consulting group, queried a cross-
section of operators and experienced service providers.
The 2Q 2011 study focused on horizontal completions in
oil producing plays, pure gas plays, and plays such as the
Eagle Ford, where oil, condensate, or gas is encountered
depending on the location of the lease. Not surprisingly,
opinions varied. Typical drivers cost, efficiency, and flex-
ibility were joined by logistics which, thanks to a strong
competitive market, rarely plays a critical role. However,
in the present situation, it may be that logistics in the
form of frac crew availability is the deciding factor.
Although each method has slight technical and proce-
dural variations, the premise of the research was to
examine completions categorized as openhole multi-
stage (OHMS) vs. those categorized as plug and perf
(PNP). These are by far the most popular techniques
currently in use. Which offers the most advantages? The
debate rages.
Technique fundamentals
In the OHMS technique, the completion string is assem-
bled with sliding sleeve ports and external isolation media
in such a way that when the completion string is landed,
the ports lie opposite the predetermined depths where
formation stimulation will be initiated. The interzone iso-
lation media either external casing packers or swellable
packers are placed appropriately in competent strata
with good borehole conditions. In the case of swellable
packers, an appropriate time interval is allowed for the
packers to set. This can take several hours or days and is
accomplished before the frac crew is dispatched. Usually
the completion rig is demobilized and moved off location
during this interval.
Sleeves
vs.
Shots
The
Debate
Rages
By Dick Ghiselin,
Qittitut Consulting LLC
Company preference between the two most popular methods for stimulating horizontal
multistage completions breaks down to a study in the economics of expediency versus
the economics of a systematic approach.
32-41 COVERstory-OCT_Layout 1 9/19/11 3:58 PM Page 32
33 33
After the frac crew arrives, the stimulation takes place
as a continuous activity. The sliding sleeve ports are
opened sequentially from toe to heel, and the treatment
is pumped through the open port into the formation.
Fracturing takes place in a typical fashion with the point
of least resistance fractured first. If desired, diverters can
be pumped to initiate additional fractures in order of
next-to-least point of resistance until the entire stage
treatment has been pumped.
At this point in the OHMS technique, the next subse-
quent port is opened while simultaneously closing off the
zone just treated, with pumping continuing on the sec-
ond zone. The procedure is repeated until all zones have
been treated. It is possible to skip a zone if its treatment is
ill-advised for any reason; however, it is not possible to
add a zone. Pumping is only paused shortly between
stages to allow time for sleeve shifting.
Recently, the OHMS technique has been used on
cemented completions that use special acid-soluble
cement. After the port sleeve is opened, acid is used to
dissolve the cement opposite the open port, which pro-
vides access to the formation behind it so the treatment
can be pumped. This modification eliminates the need
for external zonal isolation devices and can constrain
fracture initiation to the area where the cement sheath
has been dissolved.
The OHMS technique has been applied most fre-
quently in unconventional horizontal well completions.
The most attractive feature of the technique is its speed.
Several stages can be stimulated in a single day. Initially,
the technique was limited to about six stages, but techni-
cal improvements have raised that limit to more than 20
stages per well.
The PNP technique follows traditional completion
procedures. A cemented liner can be set through the
completion interval, or an uncemented liner can be used.
A plug is attached to the bottom of a perforating gun and
conveyed into the well. Any method (pump-down, tubing-
conveyed perforating, wireline tractor-assisted conveyance
or coiled tubing) can be used to position the plug/gun
combination in the lateral. The plug is set at the appropri-
ate depth below the toe zone and shears off. Then, the
gun is pulled uphole and positioned precisely opposite
the first zone to the stimulated. The gun is fired and
pulled out of the hole. If desired, several intervals of the
same stage can be shot using select-fire guns on the same
trip. When the stage has been treated, the next gun/plug
combination is deployed, and a composite frac plug is set
to protect the zone. The process is repeated for the next
stage. Although all stages are preplanned, the operator
can change, delete, or add a stage if observations indicate
such a deviation from plan is advantageous.
Another type of PNP treatment involves ultra-high
pressure abrasive jetting that is deployed on coiled tub-
ing to perforate and treat individual intervals. Usually, a
sand plug is set to protect previously treated intervals as
the process is repeated for subsequent stages. The abra-
sive jet technique is used mostly on shallower wells but
has the same flexibility as conventional PNP.
An earlier PNP technique that rarely is used now
involves setting an uncemented liner in the lateral and
treating the formation through perforations made at
selected intervals. The theory behind this is that the for-
mation will always fracture at its point of least resistance.
Of course, this could be into an aquifer or an offset well.
Most operators are no longer using this technique
because of its unpredictability and the introduction of
real-time microseismic fracture mapping.
Depending upon the number of stages to be treated,
the PNP technique can take several days or more. The big
advantage is that since each stage is treated individually,
decisions can be made on the fly to change the location
of the next stage, add or delete a stage, change the inter-
val perforated, and so on in other words, PNP affords
complete flexibility. The PNP technique also favors the
implementation of advanced treatment techniques such
as Simul-frac or Zipper frac.
Factors influencing the choice of technique
The savings in cost was listed by 66% of the respondents
as the primary factor influencing their decision to use
one technique over another. Higher well productivity
was cited by another 20%. Therefore, the primary driv-
ers are speed for cost savings or flexibility for higher well
productivity. The poll also showed that in 80% of cases,
the operator rather than the service company makes the
decision. But the decision is seldom obvious operators
appear to be stymied in choosing OHMS vs. PNP
because other factors play into their decision.
There is no question that the OHMS technique is con-
siderably more efficient in terms of field operating time,
and the gap grows as the number of stages is increased.
Several years ago, conventional wisdom held that a few
widely spaced long-length fractures were the best way to
Table 1. Survey Respondent Demographics.
Survey respondent type Respondents
Equipment, service, or supply company 2
Independent oil & gas company 47
Major oil & gas company 13
National oil & gas company 1
Other organizations or self-employed 4
34
fully exploit the reservoir and ensure maximum esti-
mated ultimate recovery (EUR). Using a popular rule of
thumb to double the frac length, one must quadruple the
volume of treatment pumped. This increases the possibil-
ity of problems and adds to the cost. Recent experience
has shown, however, that numerous closely spaced short
fractures produce better results over the life of the reser-
voir. This outcome would seem to tilt the scale in favor of
OHMS owing to its superior efficiency, but OHMS is not
the predominant technique in many plays.
The survey revealed that while today more than 50%
of frac treatments in the Bakken play use the OHMS
technique, the use of OHMS is considerably less in other
plays. Many operators believe OHMS carries an unaccept-
ably high element of risk. If the operator cannot get to
total depth with the completion, the completion must be
laid down so a reamer or cleanout trip can be made. This
can be problematic if swellable packers are involved
because they can be activated and cause difficulties in
round-tripping the completion. The alternative, if the
completion is not too far off depth, would be to land the
completion where it is and proceed to treat the well at
less-than-optimum depths. Another more disturbing risk
can crop up during the treatment. If pumping monitors
indicate that a change should be made in stage depth, it
cannot be made with OHMS. The intervals are preset
when the completion string is run. In addition, enlarged
boreholes and washouts in the laterals, often caused by
drilling methods, increase the risk that the external isola-
tion media will not seal completely.
Another overriding issue that can affect an operators
decision on which technique to choose is the critical
shortage of frac crews and equipment, especially in North
America. Getting a frac date from a service company is
much easier if the crew is
needed for only a few days. It
is exceedingly difficult to get a
frac crew contracted for a
week or more. This problem
is likely to lessen in coming
months, but presently it puts
pressure on operators to
choose expedience over a sys-
tematic approach, even if the
systematic approach offers
greater flexibility.
Adding to the complexity of
either choice is whether water
and proppant material are
available. Lack of these can
bring operations to a halt with
disastrous consequences. The
service industry is working to
mitigate shortages of both,
Five-year forecast.
Forecast for OHMS by play.
Forecast for PNP by play.
Table 2. Survey questions about OHMS.
OHMS completions are highly efficient because... True False No opinion
multiple stages can be performed in a single trip. 74% 14% 12%
no perforating or plug runs are required. 82% 3% 15%
no plugs have to be drilled out afterward. 69% 19% 12%
they take much less time. 70% 13% 17%
OHMS completions can be True False No opinion
problematic if completion fails to reach total depth. 66% 14% 20%
inflexible (you can skip a stage but cannot add one). 57% 27% 16%
less productive because fractures cannot be oriented
with maximum horizontal stress. 32% 37% 31%
complicated (hardware is not foolproof, and failures are
very difficult to resolve). 75% 9% 16%
problematic because there is no guarantee fracture will
propagate opposite the open sleeve port (fractures could
be hundreds of feet up or down the well). 78% 7% 15%
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and results vary according to the geographic location of
the play.
The inherent flexibility of PNP would seem to run sec-
ond to the higher efficiency of OHMS, but technology has
played a major role in leveling the playing field. The devel-
opment of microseismic fracture mapping allows opera-
tors to monitor fracture propagation in real time, and the
introduction of dissolvable diverters allows engineers to
steer the fractures away from geohazards and offset wells.
The main benefit of PNP is its ability to use real-time frac-
ture mapping to make changes on the fly and thus place
fractures where they are wanted, extend them as deeply as
desired, and avoid geohazards such as
aquifers that can instantly turn a poten-
tial oil or gas well into a water well.
In more mature plays, such as the
famous Barnett shale of North Texas,
refracs have become popular. Some
wells are on their fourth refrac. This
technique, which can restore new life
into a declining producer, cannot be
implemented with OHMS. The recently
introduced Simul-Frac and Zipper Frac
techniques show great promise and play
to the PNP camp. These techniques
involve alternating between stages on
two or more adjacent wells, holding
opposing stages in offset wells under
pressure while treating the opposing
stage in the well being fractured. Doing
this creates a protective stress field
around the pressured-up stages and
diverts the fracture in the well being
treated so the fractures do not intersect.
Good coordination between the pump-
ing crew and perforating crew is
required, and results so far have shown
that the practice has merit. It also miti-
gates some of the inefficiency of the
PNP technique because multiple wells
can be treated on the same trip to the
field.
When asked to estimate the fraction
of wells in each play that were PNP can-
didates for technical reasons (meaning
that they cannot be completed using
OHMS), respondents had strong opin-
ions. Note the low frequency in Bakken
and high frequency in Haynesville.
Diverse opinions in the field
Survey responses to the pros and cons of
the OHMS vs. PNP techniques are tabu-
lated in Tables 2 and 3. A total of 56 of
the 116 survey participants expressed an
opinion and 53 opted not to respond to
the OHMS true/false questions. This
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lack of response may indicate
inexperience in multistage
stimulation completions or a
market segment that has not
yet formed an opinion on
these issues. The key unre-
solved question is whether sav-
ing frac time and cost with
OHMS is more valuable to
operators than potentially
improving well performance from the flexible but higher
cost PNP.
Stated another way, one might ask, Is it preferable to
use a technique that has proved itself to be highly effi-
cient when it works or to use one that almost always
works, and may improve EUR of hydrocarbons over the
life of the well? Which technique OHMS or PNP poses
the greater risk, or which technique promises the greater
potential reward?
Each procedure has its champions, but overall the PNP
technique is the most popular, its inherent inefficiencies
notwithstanding. Even with clear acknowledgement of
the speed with which OHMS treatments can be imple-
mented, in a significant number of areas, the complexity
and potential for problems has tempered enthusiasm for
the technique. Less clear is the acceptance of a potential
advantage of one technique over the other in terms of
productivity potential where the number of respondents
choosing true, false, or no opinion was almost equal.
A clear bias for OHMS in oil plays such as the Bakken
was noted, most likely because significant financial advan-
tages can be obtained by shortening time-to-market of a
Table 3. Survey questions about PNP.
PNP completions are preferred because... True False No opinion
it is easier to get to bottom. 62% 20% 18
they are more flexible (you can optimize the frac in real time). 72% 17% 11%
Possible issues with PNP completions include True False No opinion
they take longer, but sometimes the investment is worthwile
to get higher productivity. 70% 13% 17%
future technology will allow 50 or more stages in an OHMS
completion, leaving PNP at a major time disadvantage. 51% 22% 27%
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high-priced commodity and because the relatively higher
upfront cost of OHMS completions can be justified in a play
based on oil economics. The opposite is true in shale gas
plays where the opportunity to optimize ultimate production
influences operators to choose PNP completions.
A recently completed benchmark study compared decline
curves from the five major shale gas plays. In each case, ini-
tial production registered a sharp peak that rapidly declined
to about 10% to 20% of the peak value but than flattened
and showed potential to continue at that rate for 20 or more
years. With the possibility of realizing sustained production
for decades, some operators are taking every step possible to
optimize their completions.
Looking into the crystal ball
Respondents were asked to forecast OHMS and PNP activity
through 2016. Results were generally optimistic, with slightly
more favoring OHMS. When asked to forecast activity over
the next three years for each technique in plays where they
had experience, respondents opinions were mixed. Almost
as many reckoned the activity would decrease rather than
increase. However, OHMS was definitely rated to gain trac-
tion in plays other than the Bakken where it is already well
established. It is unknown how seriously these forecasts were
influenced by present supply shortages.
There is ample scientific evidence that completions can be
optimized by careful attention to pretreatment planning and
design, along with systematic implementation of stimulation
procedures. A thorough understanding of formation geome-
chanics as well as geological heterogeneity and complexity
should result in less risk and should reduce production
uncertainties. It is also correct to say that not all wells suffer
these risks and uncertainties. Accordingly, one can conclude
that an optimum solution will be obtained when preplanning
shows clearly which completion and stimulation technique is
most appropriate for the well in question. This will allow an
objective evaluation of OHMS vs. PNP under the prevailing
logistical and crew availability conditions.
In any case, hydraulic fracturing technology development is
ongoing. Innovations are being introduced that have the
potential to swing opinion back and forth between method-
ologies, and a new approach could be just around the corner.
Already there is talk about smart sleeves that eliminate the
ball-size limitation and, if perfected, will allow almost unlim-
ited stages to be treated on a single trip.
It is safe to say that the current shortages of field crews,
equipment, proppant, and water ultimately will be resolved,
so the effect these conditions have
on todays treatment decisions is
temporary at best. Meanwhile, the
competition between OHMS and
PNP is far from over.
40
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42
IMPROVING
EXPLORATION SUCCESS
S
eismic inversion has played a key role in seismic inter-
pretation for more than 35 years, and it remains cen-
tral to oil and gas exploration success today, generating
accurate rock property estimations and realistic geologic
models of the reservoir.
Yet whether it is prestack, poststack, or simultaneous
inversion, the success of seismic inversion is fundamentally
dependent on the interpreters model-building tools and
whether the initial models are consistent with seismic
measurements and honor the structural details within
the reservoir.
So how are seismic interpreters faring today in creating
these models for the seismic inversion process? The
answer is mixed. While there is no doubt that seismic
interpretation has made a number of significant advances
over the last few years, geological models still remain
highly generalized, with interpreters unable to gain a clear
picture of the depositional history from the seismic data.
Many seismic interpreters, however, are missing a trick
the crucial role of horizons in
seismic interpretation and seis-
mic inversion. Horizons always
have been an important element
of seismic interpretation but
rarely have been used to their full
potential. Typically, a limited
number of horizons tend to be
mapped, leading to an oversim-
plified geological model.
Accurate and denser seismic
horizon tracking can enable
interpreters to see more geology
by slicing through the data in a
geologically sound way. It also
can guide well correlations, gen-
erate better insight into the depo-
sitional environment and the
areas depositional history, and
improve the chances of finding
stratigraphic traps.
Additionally, it can result in automatic fault detection
and definition, the accurate structural modeling of both
fields and prospects, and a much more robust geological
model being put forward for seismic inversion.
Horizon interpretation
Against this backdrop, dGB Earth Sciences has developed
the HorizonCube. By interpolating well data along the
dense set of horizons, interpreters can generate detailed
low-frequency geologic models that are consistent with
seismic measurements and improve seismic inversions.
The system is a dense set of auto-tracked, correlated 3-D
stratigraphic surfaces, with each horizon representing a
relative geologic timeline. The model is built by inputting
a steering cube containing local seismic dips, at least two
mapped horizons, and optionally mapped fault planes.
The advanced algorithms then create a set of continuous,
chronologically consistent horizons.
Framework horizons are mapped with a conventional
amplitude or dip-steered auto-tracker. The advantages of
the dip-steered tracker are the speed and the trackers
greater awareness of faults. By automatically stopping
against mapped fault planes, for
example, horizons with watertight
intersections at the faults can be
generated.
The dip-steered auto-tracker
allows noise to be removed from
the dip fields to enable the user to
control the detail that needs to be
captured by the horizon tracker.
The smoothed dip fields on which
the dip-steered auto-tracker oper-
ates are more continuous than
amplitude fields tracked by con-
ventional auto-trackers, which
generally produce patchy hori-
zons. More geology is extracted
from the 3-D seismic, and highly
detailed and accurate low-fre-
quency models are put forward
for acoustic impedance and elas-
tic impedance inversion.
Kristofer Tingdahl, dGB Earth Sciences,
and Igor Braga, Invision Geophysics
Impedance was applied to this seismic section.
The low P-impedance observed from Well log A,
indicated by the N1 and N2 labels, illuminates
the target sandstones under investigation.
(Images courtesy of dGB Earth Sciences)
Mapping horizons leads to
greater exploration success
Horizons play an important part in inversion and interpretation.
42-45 ExpSuccess-dGB_42-45 ExpSuccess-dGB 9/19/11 2:48 PM Page 42
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Offshore Brazil
Operator OGX has incorporated HorizonCube into its
workflow to reduce exploration risk by applying high-
resolution inversion and HorizonCube to a prospect
delineation study offshore Brazil.
The main targets were oil sandstones associated with the
compressional (P)-impedance variation observed at the
well log. A number of volcanic cones in the area condition
the geometry and continuity of sandstone bodies. Prior to
this study, one exploration well had been drilled in the
area (Well A), reaching an oil-filled reservoir. Original
amplitude data indicated large lateral continuity of the
reservoir layer. The objective was to delineate the oil-satu-
rated zone of the sand body.
Well A was used as input for the inversion in the
prestack data. The N1 and N2 reservoirs were the target
sandstones under investigation. Rock physics analysis
using P-impedance and shear (S)-impedance showed
good separation between the oil-saturated sands and water
sands, meaning that, with accurate inversion results, the
desired objective could be achieved.
The first task was to improve the quality of
the seismic information through the pre-
conditioning of the seismic common reflec-
tion point gathers. Next, HorizonCube was
used to extrapolate the P-impedance and S-
impedance logs to create a stratigraphically
consistent low-frequency model incorporat-
ing the inversion workflow.
Comparing the results with the previous
inversion, interpreters could clearly see the
benefits of incorporating the HorizonCube
into the inversion workflow. The increased
resolution obtained from the inversion
made it possible to correctly map the reser-
voir thickness and its lateral extension. The
improvement of the correlation coefficient
between well logs and the inversion results, from the ini-
tial inversion to the final deliverable, gave the team confi-
dence to proceed in generating fluid indicators.
A volume of P-wave impedance (IP) minus *shear wave
impedance (IS) was derived (where is a constant cali-
brated with well data to cancel lithological influence),
enabling the illumination of both levels of the reservoir.
It was possible to greatly improve the quality of the
estimation of the subsurface parameters using the results
obtained with high-resolution inversion and incorporating
a stratigraphically consistent low-frequency model. The
results showed that accurate seismic inversion is a key tool
for prospect risk reduction as it can indicate changes in the
elastic properties of the subsurface due to fluid variation.
dGB currently is developing software that combines for-
ward modeling, rock physics, and inversion into a single
package. With the new software plug-in, simple wedge
models can be generated to help understand the seismic
response of the interval of interest, and more complex sto-
chastic simulations can open the way to more advanced
reservoir characterization workflows.
While conventional interpretation workflows might only
require a limited number of key horizons to be mapped,
by automating horizon tracking and creating a denser set
of horizons, interpreters can extract more geology from
their seismic data. The result will be improved seismic
inversion, a better targeting of fields and prospects, and
increased oil and gas exploration success.
Acknowledgments
The authors would like to thank OGX for permission to publish
these results, especially Marcos do Amaral for his innovative
thinking and his willingness to always incorporate leading-edge
technologies to solve exploration challenges.
44
IMPROVING
EXPLORATION SUCCESS
A comparison of the IP background model before (left) and
after (right) HorizonCube shows a much better consistency with
the geologic structures.
From left to right are shown P-impedance obtained from prestack data and the
original background model, P-impedance from preconditioned data and the origi-
nal background model, and P-impedance with preconditioned data and the Hori-
zonCube-derived background model.
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46
IMPROVING
EXPLORATION SUCCESS
F
or the past 80 years the seismic technique has had the
most significant impact on improving exploration suc-
cess. However, marine seismic acquisition has essentially
remained the same since the development of the towed
streamer more than 60 years ago. There have been many
improvements, and the quality of seismic data and the
quantitative information derived from it provide a critical
component of the exploration process. Yet the funda-
mental effects of the marine method have always
impacted the integrity of the resultant seismic data.
Extracting quantitative rock property information is
dependent on bandwidth, and the lack of low-frequency
content in conventional marine seismic leaves a gap that
causes geoscientists to depend more heavily on sparse
well data. Important high frequencies also are limited by
the inherent features of the method.
By acting like a mirror, the sea surface reflects both the
seismic source energy at its generation and the upcoming
seismic wavefield at the receivers during recording. The
impact of these ghosts is to limit the bandwidth that can
be recorded and also the data integrity due to the effect of
notches at particular frequencies. The reflection coeffi-
cient at the sea surface is very close to -1, which produces a
close-to-perfect reflection as well as a phase change. The
impact of the resultant dipole function is to create notches
in the spectrum at frequencies that depend on the respec-
tive depths of the source and receiver. For example, a
depth of 6 m (20 ft) produces a notch at 125 Hz, while a
15-m (50-ft) depth produces notches at 50, 100, and 150
Hz. The combination of these source and receiver ghost
functions creates an elongated wavelet, the spectrum of
which contains two sets of notches. Some control can be
exercised in acquisition by varying the depth of the source
and streamers, but the full bandwidth remains compro-
mised. The ideal response would be to remove the two
ghosts and reduce the elongated wavelet to a single spike,
with a notch-free, flat spectrum. The resultant impact on
the resolution of seismic data is extremely large.
PGS introduced the dual-sensor GeoStreamer to address
the receiver ghost and provided commercially practical
broadband seismic. This technology uses velocity sensors
combined with pressure sensors to separate the up- and
down-going wavefields and remove the receiver ghost
effects. Development of an equivalent ghost-free technol-
ogy for the source side, the GeoSource, has now been
accomplished and operates in partnership with the
GeoStreamer to provide a complete ghost-free solution,
GeoStreamer GS.
Removing the source ghost
The new source is time- and depth-distributed, using sub-
sources deployed at specific depths and fired with specific
firing time delays. The depths of the sub-sources are cho-
sen so that the ghost functions are complementary, avoid-
ing deep notches in the spectrum. The firing time delays
of the sub-sources within a GeoSource would generally
be less than one second. This means the geology illumi-
nated by each sub-source is essentially identical, and the
receivers are in the same locations when the sub-sources
fire. In addition, the GeoSource preserves the same shot
efficiency and density as a conventional source.
These features of the geometry are important in data
processing. Techniques for separating the wavefields
from sub-sources have been developed that use the
known firing time delays. The methodology has many
advantages, not the least of which is the robustness of
Gregg Parkes and Stian Hegna, PGS
Conventional seismic does not record the necessary low fre-
quency for seismic inversion, so the low-frequency gap must be
filled with the substitute of well information and seismic veloc-
ity. This results in the estimation of elastic properties or litho-fluid
prediction being strongly biased by the well data and their loca-
tions. (Images courtesy of PGS)
Banish the ghosts
from marine seismic data
A combination of streamers and sources eliminates ghosting in offshore acquisition.
46-49 ExpSuccess-PGS_46-49 ExpSuccess-PGS 9/19/11 2:49 PM Page 46
46-49 ExpSuccess-PGS_Layout 1 9/20/11 11:07 AM Page 47
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the ghost removal. As a direct result of this, there
are no source-related ghost notches in the spectrum of
the resultant seismic data. This means that the source
can be deployed at a wider range of depths within prac-
tical limits. In particular, sub-sources can be deployed
deeper than conventional sources without compromis-
ing the higher frequency spectrum with deep ghost
notches.
Revealing the true earth response
Seismic data acquired using the new system show excel-
lent results. Lines were acquired in the Norwegian
Sea with a variety of streamer depths and source array
parameters. Conventional hydrophone-only data were
acquired with a streamer depth of 8 m (26 ft) and a con-
ventional source towed at a depth of 5 m (16.4 ft). The
GeoStreamer GS line towed the dual-sensor streamer at
25 m (82 ft), while the sub-sources in the GeoSource
were towed at 10 m (33 ft) and 14 m (46 ft). The con-
ventionally acquired seismic data are significantly de-
focused, whereas GeoStreamer GS data clearly show
detailed structure revealing the true earth response.
Frequency analysis of the two datasets shows the two sets
of notches caused by the source and receiver ghosts and
a decaying spectrum caused by the earth filtering effect.
By contrast, GeoStreamer GS demonstrates the effect of
removing the various responses imposed by the acquisi-
tion system and earth filtering effects and shows a flat
spectrum and a good signal-to-noise ratio in the data
all the way up to ~200 Hz. The results provide a step
change in data resolution and interpretability. Subtle
stratigraphic and structural features are easily inter-
preted on the data, whereas many of the same geologi-
cal features cannot be resolved on conventional data.
The acquisition-based solution enables robust removal
of both the source and receiver ghosts at an early stage
in the pre-processing sequence. This delivers advantages
for subsequent processing steps such as demultiple,
velocity analysis, and imaging, and it produces high-
quality data both pre- and poststack.
The implications for future developments are significant.
The resultant seismic data has high resolution and a wide
broadband response covering the entire spectrum of inter-
est. Improved reservoir delineation, reservoir characteriza-
tion, and the monitoring of changes during production
are all areas that will directly exploit the unprecedented
bandwidth of ghost-free acquisition, reducing reliance on
well data to control rock properties prediction and thereby
improving exploration success.
48
IMPROVING
EXPLORATION SUCCESS
Conventional seismic data (top) differs significantly from data
obtained with GeoStreamer GS (middle). The spectra of the seis-
mic data (bottom) clearly indicate the notches of the source
and receiver ghosts. The impact of removing the effects of the
source and receiver ghost notches is evident in both the broad,
flat spectrum and the high resolution of the seismic data.
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50
IMPROVING
EXPLORATION SUCCESS
M
ore risk has been added to oil and gas exploration
as the industry explores for more complex strati-
graphic plays, deeper structural targets, and unconven-
tional shale plays. Increasing environmental regulations
add to the challenge. These issues collectively have
pushed the technical envelope in all of the geosciences
associated with the exploration effort, resulting in
improvement in the overall success.
The 3-D seismic reflection technique, commercialized
initially by Geophysical Services Inc. in the mid-1970s,
was effectively an extension of the earlier 2-D technique.
Ultimately, 3-D seismic had a major impact on the explo-
ration and development success in all of the hydrocarbon
basins of the world. The technique produced a 3-D view of
the subsurface, providing geophysicists and geologists with
a significantly clearer picture of both the stratigraphy and
structure in the subsurface, which resulted in more accu-
rate maps and the ability to detect direct hydrocarbon
indicators. Three-D seismic was in fact the catalyst for the
interactive interpretation workstation, where the increase
in data from a 3-D seismic survey could be interpreted in
a productive way, making the film/paper seismic section
obsolete. After initial workstation teething troubles and
retooling of the seismic interpreters, the workstation
brought about a step-function increase in productivity,
and a new class of geoscientist was born the explo-
rationist, with new tools at hand to consider different
geologic scenarios associated with the targets.
Processing
Shortfalls in the seismic acquisition method were recti-
fied, in most cases in the processing stage of the seismic
data. A classic issue was the acquisition footprint associ-
ated with land surveys a pattern of artifacts in the data
caused by irregular sampling of fold and offset. Although
not completely removable in seismic processing, the pat-
terns can be significantly attenuated. Todays acquisition
geometries are designed so that these artifacts can be
greatly reduced. In the absence of footprint artifacts,
more subtle information can be extracted from the seis-
mic data such as detecting fracture trends using seismic
anisotropy or seeing subtle structural and stratigraphic
features using geometric attributes.
Acquisition
Improvements in 3-D seismic acquisition have been pro-
lific over the last decade or two. Probably the most signifi-
cant improvement has been in the productivity the
amount of time it takes to complete a 3-D survey. In the
marine world this has been attributed to seismic vessels
towing large numbers of streamers with multiple acoustic
sources resulting in swaths of lines being recorded in a
single pass. This has led to recording seismic lines much
more closely spaced than with a single streamer 12.5-m
(41-ft) separation is not uncommon compared with 50 m
(164 ft) for the earlier surveys. This close line spacing
provides improved spatial resolution, which allows smaller
features in the subsurface to be imaged.
Tony Rebec, Geokinetics
A modern-day high-fidelity P-wave seismic cube over the Marcel-
lus shale helps explorationists understand fracture networks.
(Images courtesy of Geokinetics)
Three-D seismic advances improve
exploration success
From early 3-D reflection seismology to today, improvements in 3-D seismic
have helped operators find more oil and gas.
50-53 ExpSuccess-Geokinetics_50-53 ExpSuccess-Geokinetics 9/19/11 2:49 PM Page 50
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Improved productivity and greater positioning accu-
racy helped stimulate the 4-D or time-lapse seismic mar-
ket first attempted in the mid-1980s. Repeating 3-D
surveys over time has proven to be a tremendous reser-
voir monitoring technique and allows bypassed reserves
to be detected and produced.
The increased interest and success by oil companies
in subsalt plays has brought about significant interest to
improve imaging of salt interfaces and structures below
the salt. Wide-azimuth seismic acquisition deploying mul-
tiple seismic source and recording vessels enables seismic
waves to be recorded from multiple azimuths, allowing
improved velocity control and superior data sampling
of the subsurface. Improved velocity control is brought
about by sampling the velocity in multiple azimuths and
taking into account velocity anisotropy velocity varia-
tions with the azimuthal recording direction caused by
geologic heterogeneities. A new breed of depth migra-
tion processing algorithms has exploited this velocity
anisotropy, which can put the seismic data in the correct
position in the depth domain as opposed to the time
domain where seismic data is recorded. This improves
the focus of the final image and allows explorationists to
produce more accurate interpretations. Taking this into
account in processing can provide improved interpreta-
tions below the salt, improving exploration success by
reducing the risk of an incorrect structure.
Land seismic
Land seismic acquisition productivity has dramatically
increased over the last decade with the advent of literally
thousands of available channels for a survey, enabling
large areas of geophone arrays to be active on the
ground at any time. This can improve sampling with con-
sistency in both fold and offset, resulting in improved
data quality. With this improved productivity and data
quality, oil companies see the economic benefits in
acquiring larger 3-D surveys to cover an increased area of
their exploration acreage, leading
to a broader understanding of the
subsurface geology.
With large channel counts allow-
ing more flexibility in the acquisi-
tion layout, surveys can be
designed to focus on the important
key components of the reservoir.
The Marcellus shale is a classic
example. It takes dedication to
maintain a light environmental
footprint in a region of pristine
forests and sensitive ecosystem.
In a recent survey, Geokinetics was able to acquire
4,600 sq km (1,800 sq miles) of 3-D seismic incorporat-
ing a simultaneous three-component survey for calibra-
tion. The survey used a wide-azimuth acquisition layout
resulting in 360-degree azimuths at the target Marcellus
level. This was possible with computer-aided design and
the flexibility to modify on the fly and maintain spatial
integrity throughout the survey.
The processing team used techniques such as vector
tile processing to maintain the azimuthal data after migra-
tion. The processed 3-D data allowed the Geokinetics
Integrated Reservoir Geosciences Group to perform
inversions to isolate the anisotropic shale responses attrib-
uted to fracture density and fracture direction that affect
gas production. The team also was able to independently
confirm these fracture networks using fast and slow shear
measurements from the three-component survey and
from well control. Integrated teamwork of this nature,
from design and execution to evaluation, leads to a fun-
damental improvement in exploration success.
As the exploration landscape evolves and greater chal-
lenges arise, it is increasingly important to develop new
tools to work in the worlds extreme environments. Geo-
kinetics has developed onSEIS (weight drop source vehi-
cles) and the Geokinetics Marine Vibrator to meet these
challenges. For a recent large 3-D survey in the remote
Eromanga Basin of Queenslands interior of Australia,
the company employed a fleet of track-mounted onSEIS
vehicles to support the main vibrator source for the sur-
vey to record in areas covered by receding flood waters
from excessive rains experienced in eastern Australia.
The onSEIS source also was able to fill in areas that
the Vibroseis units were unable to reach. This is a case
where both experience and
technology avoided a par-
tially compromised survey,
leading to improved results
for the client.
52
IMPROVING
EXPLORATION SUCCESS
Geokinetics onSEIS source
aided Vibroseis operations in wet
conditions in eastern Australia.
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ENERGY SERVICES
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C
ontrolled-source electromagnetics (CSEM) has
been an interesting technology to watch over the
years. It has followed the same path as seismic only at a
vastly increased pace. Sometimes that pace has raced
ahead of the segments ability to keep up.
But CSEM seems to be coming into its own as it makes
the transition from 2-D to 3-D and now into multiclient
surveys. EMGS, for instance, has already had positive
results from its 2008 Barents Sea survey, the first CSEM
multiclient survey targeted at a lease sale. We had a large
measure of success considering the state of the technol-
ogy, said Carl Hutchins, president of EMGSs multiclient
group. We made the transition from 2-D to 3-D, and we
followed that in 2010 with advances in acquisition and
processing for an even more robust product.
Success in the Barents Sea had been elusive until
recently. Most of the major discoveries prior to now were
made in the 1980s. But Statoil and Total recently have
announced significant discoveries in the Barents Sea
over areas covered by EMGSs 2008 survey, verifying the
EM anomalies imaged in that survey. It followed with an
additional survey in 2010.
Judging from the EM results of our 2010 survey, it
will be interesting to follow the wells that are scheduled
to be drilled in 2012, Hutchins said. Oil companies are
drilling a lot of wells next year over acreage plays cov-
ered by the two surveys.
Brazil
The best was yet to come. In August EMGS was awarded a
US $90 million contract by Petrobras to acquire a range
of EM surveys in frontier and mature basins offshore
Brazil. The BOA Galatea will acquire the year-long survey.
Petrobras has been working with EM for a number of
years and is probably one of the more experienced users
of the technology, Hutchins said. They use both CSEM
and magnetotellurics. Theyve had success matching
CSEM data with well results and are very focused on
making this a regular part of their exploration.
Unlike EMGSs last major contract, with Pemex, this
contract will be a multiclient effort because EMGS will
retain ownership of the data. As are a lot of Petrobras
contracts, including seismic contracts, this survey is
designed over Petrobras acreage as well as some open
acreage, he said. Its designated as multiclient, which
means we can sell the data [to other companies] in the
future.
While 3-D EM has multiple applications in exploration,
the approach of using it in a frontier setting is rather new.
We think that the earlier in the exploration flow 3-D EM
is used, the larger the dividends will be, he said.
Additionally, the survey will give EMGS a much better
understanding of the basins in Brazil and will give the
company exposure to Petrobras partners, which will hope-
fully serve as a springboard for future multiclient projects
in the area once lease sales resume, likely in 1H 2012.
What is in it for Petrobras? Petrobras and its partners
have a very aggressive exploration strategy for the next
four to five years and a budget in excess of $200 billion,
Hutchins said. They are very focused on the systematic
development of all of their frontier areas for drilling now
and also in the future. And CSEM, in conjunction with
seismic and other methods, will help them tailor their
drilling program to the most prospective plays. He added
that the geology in Brazil, other than the deepwater pre-
salt areas, is quite conducive to CSEM technology.
Petrobras is one of many nationally focused oil compa-
nies that EMGS counts as clients; others include Statoil,
Pemex, and Petronas. Were doing lot of work for these
54
ELECTROMAGNETICS
Rhonda Duey, Senior Editor
Vertical resistivity data from EMGSs multiclient 3-D EM survey is
shown here with public domain 2-D seismic data, indicating
resistivity in the area of the recent Skrugard discovery. (Image
courtesy of EMGS)
CSEM: Smoother seas ahead
With a giant multiclient award and an acquisition behind it, EMGS is sailing full speed ahead.
54-57 EM-EMGS_Layout 1 9/20/11 8:46 AM Page 54
54-57 EM-EMGS_54-57 EM-EMGS 9/19/11 2:49 PM Page 55
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types of companies, Hutchins said.
This gives us the opportunity to
develop the technology in basins that
are well-known to the local entities.
The future looks bright
For the first time in the companys his-
tory, EMGS has a comfortable backlog,
which Hutchins said will work in the
technologys favor much as multiclient
surveys helped advance seismic technol-
ogy. Having large contiguous jobs
advances development more quickly
than doing smaller jobs separated by
long distances.
With the award of the Petrobras
contract, our three vessels are booked
into the foreseeable future, he said,
adding that this was part of the impetus
to buy competitor OHM (see sidebar).
This leaves EMGS as the primary player
in the CSEM space.
We dont think well be the only
player in the market forever, Hutchins
said. But in the near term its a healthy
thing for the industry. It gives EMGS the
financial stability to continue to advance
the technology and expand the market,
which is going to pay dividends for
everyone.
56
ELECTROMAGNETICS
EMGS acquires OHM
I
n a deal worth US $15.75 million, EMGS announced
Aug. 31, 2011, that it was purchasing OHM Surveys
Holding AS (OHM), a marine EM acquisition company.
While EMGS has always held the lions share of the
marine EM market, until recently the company and its
competitors were fighting to stay afloat, acquisitions
not even a flickering thought. What changed?
Over the last 18 months, we have received two
major contract awards from national oil companies in
Latin America, said Dave Ridyard, president of EMGS
Americas. In both cases, the customer executed sig-
nificant trials that proved the value of the technology.
Good news, except that with only three boats, EMGS
was fully committed to its Latin American customers
at the expense of other customers who also were rec-
ognizing the value of EM technology in other parts of
the world.
The OHM deal will allow us to have a better global
distribution of our fleet less steaming, more work-
ing, Ridyard said.
The OHM acquisition will add two additional vessels
to the current three-vessel fleet. One of the vessels in
Singapore will open up the Southeast Asia market to
EMGS to help it meet its clients needs in that market
without pulling capacity out of Latin America.
In addition to market demand, market growth is also
a factor, Ridyard said. Historically, weve been in the
business of reducing drilling risk in a very specific
pre-drilling setting, he said. These days were mov-
ing farther upstream to multiclient exploration and
pre-leasing decisions. But were also getting good at
volume estimation and reserves estimation, and were
moving into the world of appraisal drilling.
The technology is not just being adopted, but the
scope of the application is being increased to address
more parts of the E&P value chain.
'
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ELECTROMAGNETICS
T
he seismic method is in the tool of choice for providing
detailed images of subsurface structure and stratigra-
phy. However, in many situations, seismic data can strug-
gle to discriminate fluids. Given high-quality seismic and
well data and sophisticated seismic inversion and rock
physics tools, it is sometimes possible to relate these seis-
mic changes to saturation effects. In other situations, for
example in chalk or carbonate reservoirs, seismic data can
constrain the porosity of the subsurface, but determining
the fluid content remains challenging.
In contrast, in many situations electrical resistivity is
driven by the properties and distribution of fluids in the
earth. Commercial hydrocarbon deposits can be many
times more resistive than surrounding lithologies. This
change in resistivity caused by variations in fluid content
and saturation can, in principle, be detected using con-
trolled-source electromagnetic (CSEM) tools. However,
when only CSEM data are considered, the results can be
ambiguous because the effect of an increase in pore fluid
resistivity cannot be distinguished from the effect of a
decrease in porosity.
A WISE approach in the North Sea
The well integration with seismic (WISE) approach to data
integration combines the strengths of both geophysical
methods to compensate for the weaknesses in each. This
approach has been applied to CSEM and seismic data
acquired over a chalk reservoir in the North Sea. CSEM
data are first inverted to provide a measure of the resistiv-
ity within the chalk layer. From this, the transverse resist-
ance (vertically integrated resistivity), which is well
constrained by the CSEM method, can be calculated.
The seismic data also are inverted and calibrated using
rock physics models derived from well log data to give the
porosity of the chalk layer. Using an appropriate rock
physics relationship among resistivity, saturation, and
porosity, these data can be transformed to an equivalent
seismically derived resistivity section.
Since the seismically derived transverse resistance takes
into account variations in chalk thickness and porosity and
assumes 100% water saturation, any deviation from this
curve indicates a change in the resistivity of the pore flu-
ids. Therefore, by comparing the CSEM derived transverse
resistance with the seismically derived value, it is possible
to isolate areas containing resistive pore fluid, indicating
hydrocarbon charge.
In the CSEM survey, one of the lines passes from an area
characterized by low to intermediate porosity chalk to an
area of higher porosity at its northern end. In the North
Sea case, fundamental frequencies of 0.05 Hz and 0.2 Hz
were used. In each instance, the odd harmonics of the
fundamental also were available for processing.
The CSEM amplitude and phase data were inverted to
provide a 2-D resistivity section along the line. CSEM data
by themselves provide an inherently low-resolution image
of the structure of the subsurface. Structural constraints
derived from seismic, in this case the top and base chalk
boundaries, are therefore included in the CSEM inversion
to improve the resolution of the result.
In the transverse resistance between the top and base
chalk calculated from the inverted resistivity section, the
Lucy MacGregor, David Andreis, Uwe Strecker,
and Paola Vera de Newton, RSI
A better picture of the subsurface emerges when the integrated WISE
interpretation workflow is applied. (Images courtesy of RSI)
Integration of seismic
and CSEM data reduces risk
Data integration has the potential to remove dataset ambiguities.
58-61 EM-RSI_58-61 EM-RSI 9/19/11 2:49 PM Page 58
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CSEM results show clearly that the resistivity within the
chalk increases toward the northern end of the line. The
cause of the increase in resistivity, however, remains
ambiguous when only the CSEM data are considered
because porosity and fluid effects cannot be distinguished.
This ambiguity can be resolved by incorporating the seis-
mic data in the analysis.
Prestack seismic data have been inverted to predict the
porosity of the chalk layer. Archies law, calibrated using
well log data from the survey area, is applied to convert
this porosity to an equivalent resistivity, assuming 100%
water saturation, and from this an equivalent seismically
derived transverse resistance can be calculated. The for-
mation water resistivity varies by a factor of two over the
survey area in response to diapiric salt intrusions. As a
result, a low baseline and high baseline value of seismically
derived resistance was calculated, bounding the range of
values likely to be observed across the survey area.
The seismically derived transverse resistance for the
100% water-saturated case represents the effect of varia-
tions in porosity and chalk thickness. Any deviation from
this curve is indicative of a change in pore fluid proper-
ties or type. The resistivity log from a horizontal well
that penetrates a hydrocarbon accumulation in the cen-
tral portion of the line is used to generate the expected
transverse resistance curve for the known reservoir to
illustrate this effect.
WISE integrated interpretation
The effects of fluids in the chalk can be isolated
by comparing the CSEM derived transverse resist-
ance with the seismically derived values. At the
southern end of the line and outside the area
known to be charged with hydrocarbons, the
CSEM result follows closely the low baseline seis-
mically derived curve. This area also corresponds
to the portion of the line closest to the salt diapir
in the survey area, so low resistivity interstitial flu-
ids would be expected if their salinity is higher
than elsewhere.
In the area of the known hydrocarbon-charged
reservoir, the CSEM result closely follows the
high baseline seismically derived curve. Outside
this area (from 19 to 25 km or 12 to 15 miles
along the line), the large difference between the
CSEM and seismically derived transverse resist-
ance suggests an extension to the north of the
hydrocarbon accumulation either beneath or
adjacent to the line.
There often are ambiguities in the interpreta-
tion of a single geophysical data type. By using
a WISE approach to the data integration, the
ambiguities in each can be mitigated. In this
example, seismic data can be used to identify porous
areas in the chalk, and CSEM data can be used to iden-
tify areas of high resistivity. By integrating the analysis of
the two data types, the ambiguities in each can be miti-
gated, providing an effective indication of the fluid con-
tent of the chalk.
Acknowledgements
The authors would like to thank Maersk Oil, Chevron, and
Shell for permission to publish this case study.
60
ELECTROMAGNETICS
The colors on this map of the layout of the CSEM survey repre-
sent the average porosity in the upper 24 m (80 ft) of the chalk
layer, derived from the calibrated inversion of seismic data. The
pattern fill in the lower left demarcates the outline of a salt
diapir. The black circles represent receiver locations.
The upper panel shows the porosity in the chalk derived from seismic data.
The equivalent transverse resistance, assuming 100% water saturation, is
shown in the lower panel (light and dark blue curves) and for the known
hydrocarbon saturation (pink and red curves). The calculated transverse
resistance can be compared to the CSEM results (black); any deviation
between the two suggests changes in the properties of the pore fluids.
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62
MPD/UBD
D
uring initial redevelopment of the Amberjack field
in the Gulf of Mexico (GoM), Stone Energy used
managed pressure drilling (MPD) to avoid the high
nonproductive time (NPT) and unplanned sidetracks
experienced by a previous operator in earlier wells.
Discovered in 1983, the Amberjack field lies 50 km
(32 miles) offshore Louisiana in Mississippi Canyon Block
109 in 314 m (1,030 ft) water depth. By 1992, 38 wells
had been drilled, and in 1999 a redevelopment program
was initiated to boost production. The first two sidetrack
development wells encountered severe trouble above the
target sands due to uncertainties in pore pressure and in
the target sands due to narrow margins between pore
pressure and fracture strength. These conditions caused
severe lost circulation with associated annular pack-off,
stuck drillpipe, gas influx, and ultimately two unplanned
additional sidetracks. There were no viable drilling alter-
natives the operator could use at that time to mitigate
these conditions and avoid excessive NPT.
Proactive planning
When Stone Energy took over the field, the company
looked for drilling methods to avoid these problems.
During the pre-planning phase, drilling engineers con-
cluded that the solution to the majority of the trouble
was continuous control of bottomhole pressure (BHP).
Stone engineers investigated the use of different drilling
fluids, bottomhole assembly (BHA) designs, and alter-
nate well plans to maintain borehole stability, reduce
equivalent circulating density, avoid mud losses, and
minimize NPT. In the end, they also chose to include
MPD because it provided an effective means of control-
ling the BHP.
Stone Energy and Schlumberger drilling engineers
started working together in the planning phase to apply
standard practices in developing fit-for-purpose
hydraulics and drilling plans. Early preparation
for the first Amberjack well began with a rig sur-
vey by an experienced MPD supervisor, who
mapped out and planned the rig-up ahead of
time. Preparation and planning stages also
included a drilling engineering review of relevant
well design elements and development of BHP
management and drilling contingency plans.
One of the final steps in the planning process
involves the standard practice of drilling the well
on paper (DWOP) to identify drilling risks and
develop mitigation plans. Pre-well DWOP,
HAZID, and HAZOP workshops were held to
prepare operator, rig, and service company
personnel for the planned well.
An important objective while drilling any well
is to maintain the BHP above formation pore
pressure and below the fracture pressure. In the
Amberjack field, the difference between these
two pressure limits is narrow, and accurate pres-
sure control was essential. DWOP allowed engi-
neers to test possible situations and assure
K.J. Moreau, Stone Energy Corp.;
and Paul Fredericks, Schlumberger
Automated MPD improves drilling
efficiency in deepwater GoM
MPD planning and practices overcome drilling trouble time associated
with difficult geomechanical challenges.
Details are shown of flow check performed with the DAPC system. The BHP
was staged down in discrete steps until annular pressure was hydrostatic
at 14.7 ppg. Flow from the well (blue curve) indicated the BHP was at or
below pore pressure. The influx was circulated out in a controlled manner.
(Images courtesy of Schlumberger)
62-65 MPD-SLB _62-65 MPD-SLB 9/19/11 2:49 PM Page 62
E&P and FOR Related Services
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themselves that the equipment and
personnel were ready.
Rig personnel on the Amberjack
platform were familiarized with MPD
services during practical lessons in
what are now routine procedures
and actions for planned and
unplanned events.
Service setup and execution
Four Amberjack wells were drilled
with MPD using a dynamic annular
pressure control (DAPC) system.
The primary components of this sys-
tem consisted of a modular mani-
fold, backpressure pump, Coriolis
flow meter, and control modules.
Once it is set up, the system actively
monitors flow-in and flow-out, annu-
lar pressure, depth, and other
drilling parameters. The controller
uses drilling and real-time hydraulics
data to calculate the required amount of backpressure
to keep the BHP at the desired level and at the desig-
nated depth.
When DAPC senses a drop in flow rate, the system
begins adjusting the choke to increase backpressure. It
continues to adjust the choke until it reaches the pro-
grammed set point and then maintains it after the rig
pumps are turned off. These functions are performed
while drilling, during connections, and when tripping
out of the hole for a bit change.
Together, the Coriolis meter and DAPC system proved
to be a useful combination not only for kick detection
but also for pore pressure determination. The technolo-
gies allowed engineers to perform a series of static flow
checks in formations known to have uncertain pore
pressure. During the checks, the DAPC system was used
to step down the static BHP in controlled increments
until the mud column was at hydrostatic pressure. While
the BHP was being stepped down, the system monitored
the flow-out measurements from the Coriolis meter.
These tests were useful in helping the engineers deter-
mine the correct mud weight for drilling and tripping.
During the planning phase, engineers determined
that the narrow size of the pressure window in the
Amberjack wells would require an additional level of
backpressure control. They decided the system would
have to do more than just trap pressure; it would have to
be capable of adding backpressure when the rig pumps
were turned off. A very useful feature of the DAPC sys-
tem is its ability to control an auxiliary pump and add
backpressure independent of the rig pumps. That fea-
ture proved indispensible to managing BHP more than
once. On one such occasion the rig performed an unan-
nounced fire drill during which the driller hard-stopped
the pumps in 30 seconds. Within 20 seconds of the ini-
tial change in pump strokes, the MPD system automati-
cally responded by simultaneously closing the choke and
turning on the auxiliary pump. After another 20 sec-
onds, the system stabilized the BHP at the programmed
set point, reversing a drop of 0.15 pounds per gallon
caused by the sudden change.
Drilling benefits
MPD also proved beneficial when the drillstring was
being pulled out of the hole. Tripping out with constant
backpressure allowed the engineers to protect the well
against swab and surge effects and during rollover oper-
ations when the density of the mud was increased from
drill weight to trip weight.
However, the most valuable benefit MPD provided on
Amberjack can be seen in a comparison of MPD and con-
ventional drilling NPT. Total NPT for three of the four
MPD wells was less than half a day, while for the earlier
conventionally drilled wells it was more than a month.
Using MPD on Amberjack helped the company drill his-
torically difficult geomechanical objectives more efficiently
and with significantly less NPT. The preparation paid off
with near-flawless drilling execution.
64
MPD/UBD
This chart shows a record of the Amberjack NPT incurred in the previous conventionally
drilled offset wells compared to the three MPD wells.
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MPD/UBD
M
PD resolves a fundamental constraint in traditional
drilling technology. A conventional fluid-circulating
system is open to the atmosphere with mud pumped down
the drillpipe flowing freely from the annulus at the sur-
face. An MPD system closes this loop by capturing and
redirecting the flow. The result of closing this loop is an
immediate safety enhancement directing returns away
from the rig floor while achieving a new level of well-pres-
sure management. This system also offers a clear advan-
tage in many applications where open-circulating systems
have reached their performance limits.
The fundamental change of closing the loop is lever-
aged by a handful of commonly used hardware compo-
nents and Weatherfords advanced Microflux control
system. With little change, the basic equipment package
can be configured for applications ranging from early kick
and loss detection or as a scalable
response to automated wellbore
pressure management.
Egyptian extremes
A harsh HP/HT environment com-
pounded by a narrow drilling win-
dow between pore pressure and
fracture gradient have made MPD
the only solution for drilling an
exploration well offshore Egypt.
HP/HT formations with narrow
windows are challenging, and one
influx could result in well-control
procedures. This extreme environ-
ment confounded the conventional
mud-weight-management meth-
ods. But MPD enabled accurate and
confident navigation through an
extremely tricky well profile where
pore pressure ranged from approxi-
mately 17.6 to 18.4 lb/gal, and the
fracture gradient ranged approxi-
mately 18.0 to 18.6 lb/gal.
The overlap in these numbers pres-
ents an impossible situation for con-
ventional techniques and would have required many addi-
tional casing strings to navigate the variations in the
drilling window. In short, conventional techniques could
not drill an economically viable well.
To manage pressure and drill the undrillable well, the
MPD system used a mud weight marginally below bottom-
hole pressure and adjusted annular backpressure at the
surface. Adding or releasing pressure on the annular side
of the closed-loop system results in an almost immediate
response in bottomhole pressure. This process also works
in reverse to enable downhole pressure to be detected rap-
idly at the surface. Fast detection and mitigation of pres-
sure fluctuations allow the wellbore to be balanced before
conditions escalate into a kick- or loss-control event.
The MPD system uses a unique approach that calculates
the mass flow of fluid into and out of the hole and uses
this balance to control the automated drilling model. This
makes it possible to determine actual downhole pressures.
The system was used to drop the pressure in small incre-
ments until a microinflux was
detected. Knowing actual pore
pressures permitted real-time
calibration of the drilling mud
weights and bottomhole equiv-
alent circulating density, which
resulted in a greater degree of
confidence to drill through
challenging sections.
Efficiency gains came with
the elimination of traditional
points of nonproductive time
(NPT), such as long flow checks
on connections caused by hole
ballooning and the time and
expense of mud-density adjust-
ments. Correct identification of
surface-fluid-management
issues typically misdiagnosed
as downhole issues avoided
lengthy well-control procedures
and potential NPT.
The MPD operation elimi-
nated significant NPT and
eliminated pore pressure and
fracture gradient uncertainty.
Dave Pavel, Weatherford International Ltd.
Closing the loop alleviates challenges
Managed pressure drilling is providing solutions to many of the industrys
major safety and performance challenges.
Early kick detection provided by real-time pressure and
flow data identifies hazards in narrow drilling windows,
often found in deepwater environments, before they
can escalate into well control events. (Images cour-
tesy of Weatherford International Ltd.)
66-67 MPD-Weatherford_66-67 MPD-Weatherford 9/19/11 2:50 PM Page 66
67
The operator gained confidence that fluctuations were
caused by ballooning and not a kick, which eliminated the
need for extensive flow checks on connections.
This is the fifth challenging Mediterranean well drilled
successfully by the operator using MPD methodology.
New Zealand depleted reservoir
A stacked reservoir sequence with near-virgin pressures
and highly depleted zones made infill drilling in a New
Zealand reservoir problematic. The mud weights required
to control higher pressure sections would have resulted in
the breakdown of the lower pressured formations.
In two wells, MPD technology enabled drilling with
lower mud weights and allowed formation pressures to be
measured to establish formation leak-off pressures.
MPD provided exact details of the formation pressures
to help reduce fluid losses to the reservoir. Post-drilling
logs showed the losses that occurred were related to frac-
tures rather than to formation breakdown, which was
avoided by the lower fluid weights. Clear kick indications
were encountered at much lower pressures, and reservoir
and drilling data were improved as a result of the lower
mud weights used.
In addition, data on dynamic stress caging and lost-cir-
culation-material (LCM) squeezing also were obtained.
The MPD system enabled dynamic integrity testing of for-
mations to be conducted while pumping at full drilling
rates. It also enabled loss rates to be established by slowly
increasing choke pressure.
Moving forward
In Indonesia, the first deepwater MPD system was facili-
tated by the SeaShield Model 7875 below-tension ring,
rotating control device (RCD). The RCD typically is used
to cap the well to contain and redirect fluid flow and is the
first of its kind to address the unique requirements of ris-
ers and dynamically positioned drillships.
Weatherfords MPD system is having a significant effect
on what can be done with MPD and the wellbore pressure
information that can be acquired.
EPmag.com
READ MORE ONLINE
There is more
to the story
66-67 MPD-Weatherford_66-67 MPD-Weatherford 9/19/11 2:50 PM Page 67
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68
SUBSEA
TECHNOLOGY
O
perators have always taken their impact on the envi-
ronment seriously, and no more so than now, after
the recent high-profile offshore spills. Tightening regula-
tion and more stringent auditing requirements make reli-
able breakaway safeguards a major focus for the industry.
A self-sealing breakaway solution from SECC Oil & Gas
is being used by well intervention company Helix Well
Ops to cut the risk of discharge and minimize production
downtime for oil and gas operators during subsea well
intervention projects.
In 2009 Helix Well Ops a division of Helix Energy
Solutions Group launched its new light well intervention
vessel, the Well Enhancer, to provide well operation and
decommissioning services to companies operating in the
North Sea and Atlantic Ocean.
Designers believed there was sufficient demand in the
market for a subsea system that could carry out open-
water and riser-based intervention services, including
coiled tubing, from a vessel. At the same time, the com-
pany set about sourcing a connector solution that would
provide greater safety and environmental benefits and
help improve standards for the industry.
New subsea connector technology
SECCs approach to subsea connections includes a range
of fully pressure-balanced, full-bore, self-sealing break-
aways that eliminate the risk of fluid loss at the point of
connection and disconnection.
SECC had recently launched its Hot Make Hot Break
Connector a dry breakaway product built on the unique
pressure-balanced coupling technology of inventor and
SECC Technical Director Matthew Readman.
The technology enables lines to be connected and
disconnected quickly and easily via ROVs under full work-
ing pressure and at depths of 3,000 m (10,000 ft), instantly
sealing each section of the line to ensure no risk of fluid
spill. Using the connector means hose lines remain intact
and reusable, even when disconnection occurs automati-
cally in an emergency. Lines can be reconnected subsea by
an ROV without the need for depressuring or dewatering.
The technology also was designed specifically for opera-
tions in high sea-state conditions where potential drift-off
is a concern. If a vessel moves off station, the movement
applies tension to the line connected by the Hot Make
Hot Break. The connector automatically disconnects
Dry breakaway technology
delivers efficiency
Self-sealing solution minimizes production downtime during well intervention.
Justin Marshall, SECC Oil & Gas
The Hot Make Hot Break Connector, here fully connected to the
Well Ops SIL, enables lines to be connected or disconnected in
15 minutes using an ROV under full working pressure and in
water depths to 3,000 m (10,000 ft). (Images courtesy of SECC
Oil & Gas)
68-71 Subsea-SECCHelix_68-71 Subsea-SECCHelix 9/19/11 2:50 PM Page 68
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when a predetermined load level is reached, ensuring the
safety of the vessel and its personnel while avoiding the
potential damage caused by an uncontrolled disconnec-
tion or emergency guillotine device.
Pushing the boundaries
Helix Well Ops wanted to create a vessel and subsea inter-
vention system that was unrivaled in terms of speed, per-
formance, and safety, and designing a purpose-built
system from scratch allowed the company to select from
the most advanced technologies on the market.
With many years of experience providing well interven-
tion services to oil companies, we knew exactly what we
wanted to achieve and were prepared to explore new tech-
niques to create a system that would deliver unmatched
performance, said Pete Nowell, intervention services
manager at Helix Well Ops.
At the top of the companys checklist was a connector to
replace the conventional hot stabs used in the past.
We were looking for a way to enhance connection
speeds subsea in a bid to reduce production downtime
and costs for our customers as well as offering a technol-
ogy that could cope with high flow rates with no loss of
pressure, he explained.
With anti-pollution safeguards high on the industry
agenda, we were also seeking to prevent even minimal fluid
leakage at the point of connection and disconnection and
help prevent a spill in the event of an emergency.
The Hot Make Hot Break connector offered benefits in
these areas, but as a new technology its true potential was
at that time unproven in practice. Helix Well Ops wel-
comed the prospect of partnering to develop a unique
solution to meet a market need.
Installation
Two Hot Make Hot Break stab connectors were fitted to
Well Ops light well intervention system to link the kill
pump into production and annulus lines from the vessel
to the subsea intervention system.
The companies took a collabora-
tive approach to the project, rec-
ognizing the need to work closely
to ensure its success and overcome
any early challenges characteristic
of a new and ground-breaking
technology. At the start of the
installation phase, the team
quickly realized that the ROV was
struggling to handle and align the
connectors and to apply enough
pressure to fully engage them.
Helix Well Ops provided video
footage to illustrate the issue.
SECCs response was to design
and fit alignment bars to guide
the ROV into position. Technicians
also installed new anti-friction seals
to the stabs to help the ROV han-
dle the connectors.
Having the commitment and
constant support of SECCs design
and engineering team meant we
could work through those early issues quickly and intelli-
gently, Nowell said.
Technology in practice
The Well Enhancer was launched in 2009 and has been in
full operation with the Hot Make Hot Break connectors
for more than two years. It has provided decommissioning
and pumping services to operators including BP, Shell,
and Talisman.
The most tangible benefit of the technology is efficiency.
It takes 15 minutes to connect and disconnect the system,
which greatly reduces the time oil companies have to take
wells off production, cutting costs significantly compared
with traditional methods. Replacing manually operated
connection technologies with a mechanical system also
brings significant savings and reduces the risk to offshore
personnel in case of an emergency disconnection.
70
SUBSEA
TECHNOLOGY
The Helix Well Ops light well intervention vessel, Well Enhancer, launched in 2009, has used
SECCs connectors for more than two years, providing decommissioning and pumping services
for operators including BP, Talisman, and Shell.
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72
UNCONVENTIONAL:
EAGLE FORD
W
ith production at 66,000 boe/d day in July 2011,
the Eagle Ford shale play in South Texas remains
overshadowed by its more mature neighbors, the Bar-
nett shale (877,000 boe/d) and the Haynesville shale
(708,000 boe/d). But a surge in new drilling activity sug-
gests that is about to change.
Data research firm Evaluate Energy projects the Eagle
Ford shale may soon become the biggest producing
shale play in Texas, if not the entire US. Drilling activity
in the Eagle Ford has been growing dramatically for the
past year, and at the end of 1Q 2011, it was the area with
the most new wells being drilled in the state, Evaluate
Energy found. According to the report, the Eagle Ford
play is looking like it will soon catch up with and over-
take its neighbors.
Going longer, getting cheaper
Magnum Hunter Resources Corp. is one of the compa-
nies tackling the Eagle Ford play. CEO Gary Evans said
at the IPAA OGIS New York conference in April 2011,
One of the things were striving to do in the Eagle Ford
is to go out further.
With seven wells completed and producing in the play,
the company has upsized from 1,219-m (4,000-ft) later-
als to its most recent lateral of 1,829 m (6,000 ft),
although 244 m (800 ft) was lost at the toe due to
mechanical problems. Were fracing more stages, too,
he said. Were trying to get up to 20 stages per well.
Most Magnum Hunter wells to date have been com-
pleted with 14 to 16 fracture stages.
The company holds 25,000 net acres, most of those
part of 50% operated joint venture partnerships with
Hunt Oil Co., EOG Resources Inc., and GeoSouthern
Energy Corp. Most of its acreage is concentrated in the
oil window of Gonzalez County, with some in Fayette,
Lee, and Atascosa counties, where the average thickness
of the Eagle Ford is 23 m to 46 m (75 to 150 ft), with 8%
to 10% porosity and 60% to 80% brittle rock.
Its latest wells have averaged 1,200 to 1,300 boe/d.
Our goal is to get to 2,000 boe/d per well IP (initial
production), Evans said. Current wells are typically lev-
eling out at 400 to 600 b/d. Production is 98% oil, not
condensate, he clarified. Magnum Hunter is running
one rig, and Hunt has another focused on JV acreage.
Evans expects to have 15 wells on production by year-
end 2011.
Well costs are near US $8.2 million at present, but
Evans is determined to drive costs down. The last well
we drilled was $7.5 million; our goal is to get to $7.2 mil-
lion, Evans said.
Monitoring service companies is crucial to keeping
costs down. We hammer on these guys. If youve got 10
pump trucks and we only need eight, send the other two
home. Dont charge us for that, he said. Magnum
Hunter also buys a lot of its own equipment, whether
lighting, frac tanks, or well agitators.
Dealing quickly with mechanical issues is another
focus of cost cutting. When something goes wrong
cut and run, Evans advised. You stay there for three
days fooling around trying to trip a hole, and thats
when your costs go out the roof.
EAGLE FORD SHALE
Characteristics
Basin Gulf Coast
Location South Texas
Depth 2,438 to 4,267 m
(8,000 to 14,000 ft)
Net thickness 76 61 m (250 ft)
Total organic carbon
(TOC), %Ro 4.7%
Total porosity (%) 12%
OOIP (MMbbl) 30 MMbbl
Gross EUR (Bcfe) 3.1 Bcfe
Gross well cost (MM) $5.5 MM
F&D cost $14.29/BOE to $2.38 Mcfe
Gravity 45%
Oil Saturation 72%
EUR 1.56 MMbbl
Source: UGcenter.com; Rystad Energy;
Hart Energy
Updated 8/26 2011
Steve Toon, Oil and Gas Investor
Eagle Ford output continues to soar
New data suggest the Eagle Ford shale may soon become
the biggest producing shale play in Texas.
72-79 Uncon-EagleFOrd_Layout 1 9/20/11 8:51 AM Page 72
72-79 Uncon-EagleFOrd_72-79 Uncon-EagleFOrd 9/19/11 2:50 PM Page 73
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One big problem Eagle Ford operators encounter that
affects the success of a well is staying in zone. Steering
is crucial for staying in zone. Were 100%. We dont get
out of zone, he said.
Magnum Hunter runs high-case and low-case econom-
ics. Based on a 1,280 b/d model with a 500,000 bbl
equivalent estimated ultimate recovery (EUR), the inter-
nal rate of return (IRR) is 36% at $80 oil and 64% at
$100. Modeling 613 b/d and a 362,000 bbl equivalent
EUR, a low case, the IRR is 23% at $80 and 39% at $100.
Magnum Hunter has paid an average of $375/acre for
its position, Evans said, but today acreage is leasing for
around $1,500 to $2,000.
Were willing to try new things; there are better ways to
do this, Evans said. The company is experimenting with
new technology in Atascosa County, where it has 3,000
acres that are 100% operated, with two producing wells.
A year or two from now well be doing things differently
than were doing them today. Look at all these resource
plays; youre seeing better recoveries, better production,
and better reserves because were learning.
Rosetta rising
Rosetta Resources Inc. also is getting good results in the
Eagle Ford.
Our Eagle Ford assets continue to outperform our
expectations, said CEO and President Randy Lim-
bacher, summing up 1Q 2011 during a conference call.
Rosetta holds 65,000 acres in the Eagle Ford play, but
it has focused its attention up to now on its 26,500-acre
Gates Ranch prospect in northern Webb County. During
1Q 2011, Rosetta drilled nine wells and has current pro-
duction of 120 MMcf/d, up from zero 18 months prior.
In fact, the strong well performance makes the Hous-
ton-based companys published 7.2-Bcfe type curve
obsolete. The Eagle Ford wells are behaving nicely,
Wunderlich Securities analyst Irene Haas observed. The
data clearly shows that the newer wells are producing at
higher rates than implied by the 7.2-Bcfe type curve.
And those newer wells are curtailed by some 15 to 20
MMcf/d due to short-term infrastructure constraints.
Rosettas Senior Vice President of Asset Development,
John Clayton, added, Wed like to see what these wells
can do when theyre not curtailed.
KeyBanc Capital Markets Jack Aydin is willing to take
a guess: We estimate EURs could be well north of 8.5
Bcf/well on average in the Gates Ranch area.
The company has begun three-well pad development,
resulting in a cost savings of $500,000/well and has a
lease operating expense of $0.15.
Rosetta continues to optimize drilling and comple-
tion operations, which have offset service cost inflation,
said Michael Bodino, managing director and head of
energy research for Global Hunter Securities. Spud-to-
release has decreased over the past 15 months from 27
days to 15, and pad development allows the rig to mobi-
lize in hours rather than the previous five to seven days.
74
UNCONVENTIONAL:
EAGLE FORD
Total production in the Eagle Ford (including crude oil, conden-
sate, NGL, and gas) is projected to reach 1.1 MMboe/d by 2020,
according to Hart Energy Research. (Source: Rystad Energy)
Magnum Hunter Resources Corp. has completed most of its
Eagle Ford wells with 14 to 16 fracture stages. Here, a rig drills
for the company in the South Texas shale play. (Photo by Lowell
Georgia, courtesy of Oil and Gas Investor)
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Downspacing remains imminent, as the company believes
it is recovering just 20% of hydrocarbons in place. The
current well inventory of 236 wells is based on spacing of
roughly 80 to 110 acres, Haas noted. If downspacing is
feasible, the Gates Ranch well count could double to 441.
Using the current type curve of 7.2 Bcf per well, this
implies an incremental 1.5 Tcf before royalty.
Bolstered by recent asset sales and $385 million in liq-
uidity, Rosetta has added a third rig to its program to
test acreage beyond Gates Ranch, specifically 25,000
acres in the liquids windows in southern Gonzalez, cen-
tral Dimmit, northern LaSalle, and Encinal counties. It
plans to have 58 horizontal wells drilled and completed
by year-end.
But with the ramp-up comes challenges. Even with firm
take-away commitments in hand, Limbacher continues to
closely watch the midstream infrastructure situation.
Two potential pressure points are trucking capacity
and the reliability of firm gas transportation, he said.
Oil hauling in South Texas is extremely tight and will
continue to be for some time, Limbacher said. The com-
pany has sufficient trucking capacity now but is moving
toward other solutions such as rail, additional pipelines,
and barges.
Gas take-away is challenged as well, even with firm
commitments for existing production.
Weve seen our midstream partners struggling from
time to time to provide firm capacity for which weve
contracted, he said. Rosetta has moved gas to other car-
riers on a short-term basis. Expect us to continue to
develop additional take-away options to ensure plenty of
gas pipeline capacity for our key projects.
Targeting take-away
SM Energy holds 250,000 net acres in the Eagle Ford
shale. According to President and CEO Tony Best, This
is a company-maker for SM Energy. Its a great position.
SM holds 165,000 net 100%-operated acres, mostly in
the rich-gas window in Webb and LaSalle counties, where
it is working three rigs presently and plans to go up to six
by year-end. They also holds a 25% nonoperated position
of 85,000 net acres with Anadarko Petroleum Corp. in
Maverick and Dimmit counties, with 10 rigs running.
UNCONVENTIONAL:
EAGLE FORD
Wireline is run during frac
operations in the busy
Eagle Ford shale play.
(Photo by Lowell Georgia,
courtesy of Oil and Gas
Investor)
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UNCONVENTIONAL:
EAGLE FORD
Take-away capacity in the Eagle Ford is an issue for
some operators, but Best assured attendees at the April
2011 IPAA OGIS New York conference that the company
is in a good position to handle increasing production.
Weve been able to secure significant takeaway capac-
ity, and weve contracted for the drilling and completion
services that were going to need for this year and next,
he said. That is going to be critical in our ability to
ramp up in the program.
SM now has takeaway commitments for 150 MMcf/d
through midyear, going to 300 MMcf/d by the end of
2012. It also has secured a new take-away agreement for an
additional 190 MMcf/d when a pipeline arrives in 2013.
By mid-2014 we will have 470 MMcf/d of take-away
capacity to accommodate our program in this play,
Best said.
Comparing these numbers with total company-wide
production for 2010, That is clear evidence of the sig-
nificant impact the Eagle Ford can have on SM Energy
and the opportunity we see in front of us in this play,
Best said. Its a pretty exciting time for us. SM expects
to drill 80 wells (70 net) by year-end.
Best of play
Carrizo Oil & Gas Inc. holds 33,000 net acres in the con-
densate window of LaSalle and Dimmit counties. Presi-
dent and CEO S.P. (Chip) Johnson IV said at the New
York symposium that many think this will have the best
economics of any area of the Eagle Ford. Its extremely
profitable, he said.
The company is looking to expand its position through
lease acquisitions, focusing in Dimmit, northern LaSalle,
McMullen, and Atascosa counties, Johnson said. The goal
is to target the play where it is shallower than 3,000 m
(10,000 ft), with some condensate but with a majority
stream of oil production. The hurdle at present is cost.
Its very hard to find more acreage here now at a reason-
able price, he said.
Nonetheless, in early June Carrizo bolstered its posi-
tion with 13,000 new acres for $1,650/acre up front and
a total cost of approximately $5,500/acre once carried
drilling costs are factored in.
All of Carrizos first three Eagle Ford wells had initial
production of more than 1,000 b/d of oil on a 24-hour
rate. The following two came in at 735 bbl and 815 bbl
at restricted rates. Average EURs with well expectations
of 70% liquids and 30% rich gas are 400,000 boe (300
million net), with total target reserves of 92 MMboe.
Total well costs are $7 million to $7.5 million with
1,500-m (~5,000-ft) laterals and 18 frac stages, drilled
into the condensate window above 3,000 m (10,000 ft).
Finding and development costs average $23.33/well,
with a 54% rate of return at $100 oil and $4 gas.
The company anticipates completing three wells a
month from June through the end of the year. It now
estimates it has 230 locations on 115-acre spacing.
This article was modified from the original from the July 2011
issue of Oil and Gas Investor and has been reprinted with
permission.
High five for high tech
By Richard Mason, Executive Editor, Upstream
Technology, Hart Energy
T
he rapidly unfolding Eagle Ford shale sports the
largest concentration of technology rigs in the US
onshore sector.
From a modest 25-rig start in early 2010, the Eagle
Ford rig count surged during 4Q 2010 and topped 164
units in August 2011.
These are 1,500-horsepower AC, variable-frequency
drive units for the most part, the advanced rigs that are
transforming the domestic drilling industry. The units
feature top drives, automated pipe-handling equip-
ment, and sophisticated control systems that promise
reduced cycle times in a high well cost environment.
Eagle Ford rig usage grew by 30 units during the first
five months of 2011. Fifteen of those rigs were 1,500-
horsepower AC technology rigs with another five clas-
sified as 1,000-horsepower AC technology units.
Currently more than half of the units in the Eagle Ford
are AC technology rigs, while 70% of the rigs are rated
at 1,500 horsepower or larger.
Leading contractors include Helmerich & Payne IDC,
which markets 33% of all rigs in the Eagle Ford; Nabors
Industries, with a 13% share; and Patterson-UTI Energy,
which holds an 11% share. The top five drillers in the
play represent 73% of the rigs.
Helmerich & Payne has seen its rig count vault from
six in early 2010 to 44 currently, with more newbuilds
on the way. The Eagle Ford also is attracting technology
rigs from the Haynesville and Barnett shales and could
grow another 35 units by year-end.
The Eagle Ford features the highest rig day rates
onshore, with representative pricing in the low- to mid-
$20,000 range. But reduced drilling times are offsetting
rising costs in services such as pressure pumping, thus
allowing operators to maintain flat costs in an otherwise
inflationary cost environment.
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72-79 Uncon-EagleFOrd_Layout 1 9/20/11 11:42 AM Page 79
s??
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-IC
"MEIN
Plht
80
MATURE ASSETS
T
he production phase of an E&P project can last for
decades. In fact, managing fields from first oil to
abandonment is how the E&P business ultimately makes
money. Companies are always striving for the best in
class methodologies in design, project management,
drilling, and reservoir analysis to maximize production.
The production process is the manufacturing
portion of the E&P business. Operational Excellence
technologies and methodologies, which first gained
prominence in refining and other process industries,
can help achieve the goal of maximizing production to
ensure the promised return on investment for a field
development.
Operational Excellence helps maximize production
from existing assets by controlling costs and safely operat-
ing at optimal levels. That is why these techniques now are
being applied in the production phase of E&P projects.
For the purpose of applying Operational Excellence
techniques in the production of mature assets, it makes
sense to focus on three key concepts:
Making sure the right information is available at
the right time for the right people;
Using models to support better operating decisions
extending engineering models used to design and
build production facilities to support/optimize oper-
ating decisions; and
Applying advanced process control (APC) dynamic
control systems to maintain optimum performance.
E&P companies have been inundated with data for
many years, and as technology continues to provide
more advanced monitoring systems, the problem is
growing. While data provide an important starting
point, there is a problem if the data never become use-
ful as actionable information. Sifting through data is not
productive. Decision-making is expedited only when
decision makers have access to the data that have an
actionable context. In short, success depends upon
getting the right data to the right people in the
right form at the right time.
Defining a solution
The primary goal of any producer is to increase produc-
tion. One way to increase volume is to leverage data with
engineering models of the gathering system,
separator effectiveness, and gas
processing efficiency and use those
models to optimize the production
process. To achieve this goal, data
infrastructure needs to be in place.
A distributed control system
(DCS) is the foundation of that
data infrastructure and normally
captures most of the field instru-
mentation values. However, many
companies also have added a data
historian that collects select data
from DCS systems and other
sources (e.g. lab and model calcu-
lated data), time stamps it, and his-
torizes the information so
different users can visualize it. This
allows operators and engineers to
quickly understand how the
process is performing and calculate
Mike Strathman and Marty Moran,
Aspen Technology Inc.
By modeling the network of pipelines as well as choke valves at the wells and compressor
and considering the cost of compressor operations and inlet pressure requirements at the
gas plant, the operator was able to increase production by11%. (Images courtesy of Aspen
Technology Inc.)
Mature fields add to the bottom line
Best-in-class operators are applying Operational Excellence technologies
and methodologies to maximize profitability in aging assets.
80-83 Mature-Aspen_80-83 Mature-Aspen 9/19/11 2:50 PM Page 80
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key performance indicators. While E&P production
facilities usually are fairly straightforward from a pro-
cessing standpoint, they can be very complex hydrauli-
cally because of variations in well production.
Production and beyond
Adapting quickly to a changing environment helps
optimize production. The oil and gas industry uses first
principle simulation models to design facilities but have
not always used models to understand the complex
interaction of composition, temperature, pressure and
flow rate; i.e. to make the right data into actionable
information. Models enable operators to understand
how to set variables to optimize facilities in near real
time. Models can include wells, gathering pipelines, sep-
aration plants, and gas processing plants. The handover
of as-built models from the design and construction
team to support operating decisions over the life of the
field is a best practice.
In an actual case on a field with three wells connected
to a common gathering system, the operator determined
compressor settings to operate at an optimum rate of
about 28 MMcf/d. By modeling the network of pipelines
as well as choke valves at the wells and compressor and
considering the cost of compressor operations and inlet
pressure requirements at the gas plant, the operator was
able to increase production to 31 MMcf/d (11%) by
adjusting the compressor speed and the well choke valve
settings. Having the models also enabled the operator to
consider the impact of bigger compressors, changes to
the inlet pressure to the gas plant, and the impact on
reservoir performance.
This example is for a basic gathering network; others
are more complex with multiple gathering system legs,
more wells, and more variability in composition. In such
cases, models are essential because changes can have
unexpected consequences.
In addition to production applications, there are
other opportunities for model support in operations:
Used as the basis for soft sensor calculations; e.g.
used to predict pressures, flows, and compositions at
key points in the process, which can help avoid slug-
ging problems and over-pressure situations; and
Used to track the composition of the produced flu-
ids through the system, which can help environmen-
tal reporting.
Controlling at the optimum point
APC systems reduce the variability of key operating param-
eters so a facility can operate closer to its optimum. APC
facilitates increased production rates without increased
capital spend and provides the ability to operate a facility
safely by returning to steady operation more quickly. The
end result is a higher average production rate.
Progressive E&P companies are applying APC to
achieve production increases from 2% to 10%, with pay-
backs often measured in weeks. Despite the potential for
significant results, the rate of adoption has been unusu-
ally slow. Fortunately, the barriers that once existed have
largely been removed. For example, E&P assets are now
better instrumented, and APC comes with a more robust
suite of tools that makes it easier to implement, deploy,
and monitor remotely.
In general, the objective for a production facility is to
minimize the differential pressure between wellhead and
separators. Achieving this goal requires that separator
pressure be minimized subject to constraints, something
that APC is ideally suited to do. APC handles more com-
plicated constraints such as gas lift, multiphase flow, and
slugging by using correlations first developed through
either empirical testing or through the development of
first-principle simulation models.
Mature fields offer a source of increased production
and new reserves. Operations Excellence technologies
and methodologies applied to these assets can effect sig-
nificant production increases.
82
MATURE ASSETS
APC allows the operator to reduce the variability of key operat-
ing parameters so a facility can operate closer to the financial
optimum.
HONORI NG THE I NDUSTRY' S BEST
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84
MATURE ASSETS
R
eservoir life is a common concern in developing
older, mature fields. As technology has drastically
reduced the amount of reserves stranded in the reser-
voir, extending reservoir life is still a major goal for most
operating companies.
A number of technologies are being developed to
achieve that objective. Among them is Perf-Drills Perfo-
rating Tunnel Tool.
The tools primary objective is to provide access through
the casing in producing and/or injection wells. The tun-
neling technology enables wellbore access beyond near-
wellbore damage to unaffected formation. Perf Drill has
no o-rings or gaskets and can be run at any depth and at
any temperature.
Single trip flexibility
The main components of the tool are an anchor and
whipstock assembly, the tool body, a patented flexible
drive shaft and bit, and the top external drive shaft.
The flexible drive shaft is internally spring-loaded to
provide weight on bit (WOB) drilling control. Initial tra-
jectory is achieved with 3,000 lb WOB to exit the casing
with that weight maintained for the next 3.7 m (12 ft) of
penetration.
The Perf-Drill build rate is nine degrees per foot. At 3.7
m of vertical drop WOB is reduced to 1,000 lb for the
next foot of drilling. This allows the flexible drive shaft to
point the bit at the trajectory presented at 4 m (13 ft) of
penetration. The 3,000 lb WOB can be returned, and the
Perf Drill tunnel can then be completed to 9 m (30 ft).
The tool is designed as a single-trip, through-casing,
short-radius, lateral tunnel drilling tool. It is run in hole
(RIH) as a single unit, the anchor set, and drilling initi-
ated. The drilled production tunnel ID is 2.9 in. and can
reach 9 m of lateral extension from the wellbore. A power
swivel, top drive, or mud motor can be used as the rota-
tional power source. The tool has drilled through 4 -in.,
5 -in., 7-in., and 10 -in. P110 casing. In the 10 -in.
project, the tool drilled through 7-in. casing set inside of
the 10 -in casing for a total P110 steel thickness of 1.625
in, with the exit accomplished in 12 in. of vertical travel.
The casing exit design sets the guide path and trajec-
tory of the Perf Drill Flexible Drive. The 16-in. long
built-in stubby whipstock has a 10-degree exit face and
is through-hardened to provide a slick guide for the bit.
The patented design allows a 4.5-degree bend every 6 in.
while maintaining rigidity and trajectory. As the leading
edge of the bit encounters the casing wall and weight is
applied to the drillstring, the bit pulls itself away from
the whipstock while it drills the casing exit. The first
flexible drive section, located only 6 in. behind the bit,
Jim Cousins, Perf-Drill
The Perf-Drill BHA consists of an anchor and whipstock assem-
bly, the tool body, a patented flexible drive shaft and bit, and
the top external drive shaft. (Images courtesy of Perf-Drill)
Perforation tunnel tool
optimizes mature assets
Achieving effective production rates can be challenging in aging fields. After seven years
of continued improvements in both form and function, a new perforating tunnel tool
is helping to increase production and extend mature reservoir life.
84-87 Mature-PerfDrill_84-87 Mature-PerfDrill 9/19/11 2:51 PM Page 84
85
allows the drive to bend and transfer the majority of
applied weight to the leading edge of the bit. At least
75% of the weight applied to the bit transfers to the
leading edge of the profile. This unique function of the
flexible drive significantly extends whipstock life and
overall tool efficiency.
Injection rate improved
The tunnel tool was applied recently in two natural gas
injection/production wells in an aquifer gas storage
facility. Two months after the job was completed, the
injection rates had improved by 50%. Well #1 improved
from 2MMcf/d to 3.5MMcf/d, and well #2 improved
from 3MMcf/d to 4.5MMcf/d.
The first well presented a unique problem the need
to drill through a 5 -in. OD liner and 7-in. OD casing
to reach the formation. Using a specially designed bit,
the company drilled through this double casing. In the
first double casing exit, the tool completed the exit in
about one hour. The operator decided to attempt the
first complete tunnel as well with the special casing exit
bit. When drilling slowed, after 5 m (17.5 ft) the opera-
tor pulled the entire tool and changed bits to drill the
second exit.
Perf-Drill was RIH with the special dual-casing bit, set
the anchor, and began drilling the double casing wall.
After one hour, the tool exited the casing and drilled
another foot to assure exit position. The tool was pulled
out of the hole, leaving the whipstock assembly and bot-
tomhole assembly (BHA) in place. The bit was changed,
and Perf-Drills steel body bit with carbide inserts was
then reentered in the initial hole and continued drilling
to a 8.5 m (28 ft) TD, which was completed in one hour.
The second well (with two 8.5-m lateral exit tunnels)
was completed without incident. Once the anchor was
set, the tool was applied to exit the 5 -in. casing,
drilling through it in 25 min. and continuing at 3,000 lb
WOB for the next 4 m. At the 3.7-m penetration mark,
the weight was reduced to 1,000 lb for the next foot of
drilling. At 3.9 m (13 ft), when the tunnel traveled to
MATURE ASSETS
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horizontal, 3,000 lb was returned to the
drive string, and the tool continued to
a TD of 8.5 in one hour.
The operator decided to drill the sec-
ond tunnel with the existing bit. The
anchor was unset, and the tool was low-
ered 0.6 m (2 ft) and rotated 180
degrees to begin the second perforation
tunnel. The casing exit required one hour. The 8.5-m
tunnel took another two hours, a result in part of the
carbide cutters having become dull while drilling the
first perforation tunnel in the same well.
The second well had a normal 5 -in. casing string
and was completed in one trip. This presented two
Perf Drill perforation tunnels that each extended to 8.5
m from the wellbore. The first tunnel took 1.5 hours.
The second tunnel required 3 hours. In one trip, the
Perf-Drill tool was able to drill two 2.9-inch ID by 8.5 m
deep perforation tunnels in 4.5 hours.
Looking ahead
This tunnel tool has operated from rigs as small as a
single pole pulling unit to a snubbing unit, drilling
through 23# 5 -in. pipe, cement, and 19.5 pound mud.
One 9-m (30-ft) Perf-Drill tunnel presents the same for-
mation exposure as 57 casing gun shots. The ability to
penetrate past any near wellbore damage at any depth,
any temperature, and any size pipe makes Perf-Drill an
ideal tool for reentering old assets, drilling deep clean
perforations, and helping to bring old producers back
to higher production levels.
86
MATURE ASSETS
The casing exit design sets the guide path and trajectory of the Perf Drill Flexible
Drive. The 16-in. long built-in stubby whipstock has a 10-degree exit face and is
through-hardened to provide a slick guide for the bit.
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84-87 Mature-PerfDrill_Layout 1 9/20/11 4:07 PM Page 87
'6R1f
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ence locations.)
If you're seeking a better way to get the information you need, the ideal place to network with peers, orjust a reason to get away
from the office, no other conferences deliver like the DUG Series.
After all, there's only one way to witness a DUG Series event: Attend one.
www.HARTENERGYCONFERENCES.com
HART ENERGY
ORD
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11
Y 1
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88
A
new system for wellbore directional control uses
continuous drillstring rotation above a positive dis-
placement motor (PDM) and bent sub to combine many
advantages of rotary steerable systems (RSS) with proven
PDM technology. The new MotarySteerable system offers
an economic alternative for rotary well trajectory control
in a variety of different drilling conditions. It provides full
3-D directional control while maintaining drillstring rota-
tion to effectively reduce drilling time and mitigate lost-in-
hole risk in problematic drilling environments.
Steerable motor assemblies vs. RSS
The overwhelming majority of directional footage drilled
today is accomplished with steerable PDMs that use a bent
sub and continuous fluid power to apply cross-axis pres-
sure to the rotating bit, enabling it to drill in any direction
at some rate of change of trajectory. Alternating between
sliding and rotary drilling achieves 3-D wellbore trajectory.
PDMs are currently both the most reliable and the most
competitively priced options for directional drilling.
Drilling motors have several significant drawbacks com-
pared to rotary steerable tools. They are unable to consis-
tently steer while rotating and unable to drill straight
tangent sections. Many newer motors have been designed
to drill straighter tangent sections and reduce the need for
slow and costly sliding corrections. Adjustable gauge stabi-
lizers (AGS) enable trajectory to be corrected without slid-
ing or bottomhole assembly (BHA) changes. Often, using
AGS eliminates most sliding time. However, AGS correc-
tions can take place only in a 2-D plane, up or down. The
risk of stuck pipe or loss of BHA increases any time a string
is not rotating (i.e. during sliding operations). Finally,
because the sliding pipe cannot overcome the frictional
forces in the hole, steerable motor assemblies are not
applicable for extended-reach wells.
Rotary-steerable drilling enables full, 3-D directional
drilling control with continuous drillstring rotation from
the surface. Direction and orientation are maintained
independent of BHA and drillstring rotation with no stop-
ping or sliding. Two-way pressure- and command-based
communications allow trajectory to be adjusted from the
surface. Borehole positioning is more precise, and the
borehole is smoother, leaving a cleaner, less tortuous bore-
hole with increased reservoir exposure for better comple-
tions. RSS can be used to drill complex well trajectories
and extended-reach wells. In high rig-cost environments,
rotary steerable tools often are preferred over conven-
tional steerable assemblies because of their potential to
drill faster.
Targeted bit speed
Weatherford International Ltd.s
MotarySteerable system is based on
targeted bit speed (TBS), a peri-
odic steering method that applies a
repeatable oscillating flow rate to a
PDM and bent sub to accomplish
continuous trajectory change. The
flow rate changes are timed to a
specific bent housing toolface and
applied continuously to the same
angular position of the motor
housing as it rotates, allowing the
operator to steer the wellbore in
any chosen 3-D trajectory. Varia-
Operating parameters for the new targeted-bit speed-based directional drilling system are
shown in various hole sizes based on a single mud motor type (Hyperline 250). (Images
courtesy of Weatherford International Ltd.)
New system fills gap between PDM,
rotary steerable technologies
A new directional drilling system delivers full 3-D directional control to
mitigate lost-in-hole risk.
Steven Farley, Christopher Maranuk, and Clint Jasper,
Weatherford International Ltd.
tech
WATCH
88-91 TechWatch-OCT_88-91 TechWatch-OCT 9/19/11 2:51 PM Page 88
89
tions in flow cause slight differences in the axial
drilling rate, which, combined with the bent sub,
causes the bit to drill further toward the specific
target.
Targeted bit speed is similar to periodic slid-
ing of the drillstring with a PDM except that
instead of the motor housing stopping or slow-
ing, it rotates continually while the bit speed
varies, depending on its angular position in the
borehole. The periodic flow is achieved through
simple fluctuations within the drillstring gener-
ated by a typical MWD positive pulse telemetry
device. The pressure pulses are timed to the
motor housings angular position to effectively manage
an oscillating fluid volume entering the motor to pre-
cisely vary the bit speed as a function of toolface. TBS
enables the motor to cut a disproportionately greater vol-
ume of rock from a specific arc segment of the borehole,
causing the hole trajectory to follow in the direction of
the higher bit speed.
Periodic steering is not new; however, TBS uses this
behavior to control trajectory in three dimensions rather
than two, which meets criteria for a lower-cost directional
drilling alternative to RSS with the benefits of reliable and
proven steerable motor and MWD technologies. An addi-
tional advantage is that the motor can slide to direct the
wellbore if a greater build-up rate is needed than can be
generated from targeted bit speed in a given formation
and wellbore type.
The system is not a true rotary steerable tool but an
improvement on proven technologies to allow full 3-D
steering while rotating with a bent housing motor. It pro-
duces relatively low build rates while rotating. Build rates
tend to be more aggressive in smaller rather than larger
hole sizes. To date, the system has been used to drill more
than 30,000 m (100,000 ft) of hole in vertical control, low-
angle tangent, and lateral sections. It has been run in 6,
7
7
8, 8
1
2, 9
7
8, and 12
1
4-in. holes.
Field tests
One of the first field tests of the TBS-based directional
drilling system was in the Barnett shale in a horizontal well
with a lateral section of approximately 1,990 m (6,500 ft),
drilled with water-based mud. After drilling out of surface
casing, a short vertical section was drilled, followed by
building a 2.5-degree/30-m (100-ft) angle to an 18-degree
tangent, dropping 2.5 degrees/100 ft to vertical, then
building the curve and lateral. The entire well was drilled
using 8
3
4-in. PDC bits and medium speed 6
3
4-in. mud
motors. The system drilled more than 3,749 m (12,300 ft)
in all sections except the surface hole and landing. Any
time the well started to drift, the systems inclination was
reduced, keeping the vertical section from drifting above
2.0 degrees while eliminating slide corrections in the verti-
cal hole. The tangent was maintained, and although the
system could not entirely eliminate the need for sliding, it
helped reduce it.
In the Eagle Ford shale, the system was used in three
wells drilled with oil-based mud using 9
7
8 -in. bits and 6
3
4-in.
medium speed mud motors and MWD tools. All three wells
required a negative nudge with a buildup to a low-angle
tangent followed by a drop-back to vertical before changing
the BHA to build the curve and horizontal sections. The
system was used to drill out of casing, build the negative
section, hold the tangent, and then drop to vertical. In the
first well, the system provided good vertical control and
acceptable build rates from 0 to 4.0 degrees in the targeted
azimuth. The inclination was subsequently dropped back
to vertical at the end of the tangent section, and 1,341 m
(4,400 ft) of hole were drilled. On the second well, vertical
control was maintained for the entire 1,634 m (5,360 ft),
and inclination was held below 1.0 degree without sliding.
On the third well, 2012 m (6,600 ft) were drilled with slid-
ing requiring less than 4% of the time. The vertical sec-
tions, both below casing and at the bottom of the well
section, were held to less than 1.0 degree inclination with
excellent azimuthal control. The run beat the best days vs.
footage drilled curve for the drilling program and was
drilled entirely with the new drilling system.
Using the new directional drilling system in the
Eagle Ford shale enabled the operator to beat the
previous best-days-vs.-footage-drilled curve while
maintaining vertical and tangential control.
88-91 TechWatch-OCT_88-91 TechWatch-OCT 9/19/11 2:51 PM Page 89
88-91 TechWatch-OCT_88-91 TechWatch-OCT 9/19/11 2:51 PM Page 90 88-91 TechWatch-OCT_88-91 TechWatch-OCT 9/19/11 2:51 PM Page 91
Intelligent management system
reduces false alarms from erosion probes
The Roxar Fieldwatch 3.0 production management sys-
tem by Emerson Process Management provides engineers
with important operational data to improve decision-mak-
ing during production optimization operations. The new
intelligent reservoir management features help reduce
the number of false alarms that can occur in sand erosion
control, the company said. The latest version includes
smart alarm software that features a new filtering and
temperature compensation algorithm and signal stability
as well as trend analysis software that can identify uncon-
formities, including changes in temperature, produc-
tion regimes, and electromagnetic interference, helping
to mitigate false alarms. Results from testing the smart
alarm software on historical data from a North Sea field
showed the suppression of 99% of false alarms while
100% of the genuine alarms were retained, Emerson
said. Emersonprocess.com.
Reservoir characterization services
maximize HP/HT operations
The next generation of the Baker Hughes Reservoir
Characterization eXplorer (RCX) and In-situ Fluids
eXplorer (IFX) formation testing services can character-
ize fluid properties in real time and can be deployed in
challenging HP/HT wells to provide mission-critical
information during the well construction process. Com-
patible with the Baker Hughes multitank carrier model to
reduce risk and rig time, the RCX service gathers data
and fluid samples to 27,000 psi and 201C (395F). It also
features high-capacity pumps that can improve operations
in highly overbalanced wells. The IFX service is designed
primarily for deepwater and high-temperature wells to
characterize
downhole fluid
compositions in
real time, opti-
mizing fluid
identification
and sample col-
lection and pro-
viding input into
the petrophysical
evaluations for
early assessments
of reservoir
value. A tuning
fork sensor and
separate sound
speed transducer
also provides
high-resolution
density, viscosity,
and sound speed
information. The
resulting data
allows direct calculation of a continuous gas-oil ratio with-
out reference to any offset information, the company
said. Bakerhughes.com
Advanced NDT systems increase pipeline,
platform defect detection
Applus RTD has designed two new products to locate
defects in pipelines, oil and gas platforms, and other
infrastructure using advanced digital radiography. The
RTD Rayscan device is suited for both onshore and off-
shore pipeline inspection work, including the inspection
of girth welds on lay barges and onshore new construc-
tion projects, the company said.
The system uses a small, collimated X-ray beam, short
exposure, and lower energy levels than conventional
techniques, to mitigate radiation hazards. Its X-ray
source and detector rotate around the exterior of the
weld, producing a real-time digital radiographic double
wall single image (DWSI) picture. According to the com-
pany, direct image processing also makes it possible for
direct interpretation of the weld, allowing easier defect
identification and recording.
Additionally, the Applus IWEX 3D (inverse wave field
extrapolation) technique provides a reconstructed
image of the inspected object shown in real time using
automated ultrasonic testing and complex algorithms
that can increase the accuracy of defect size, position,
and probability. Applusrtd.com.
Roxar Fieldwatch collects, monitors, visualizes, and analyzes reser-
voir data and incorporates a series of custom-built modules in the
areas of flow assurance, sand and erosion, corrosion, and virtual
flow metering. (Image courtesy of Emerson Process Management)
The next generation of Reservoir
Characterization eXplorer acquires
accurate pressure data and samples
in HP/HT environments. (Image courtesy
of Baker Hughes)
92
tech
TRENDS
92-94 TechTrends-OCT_92-94 TechTrends-OCT 9/19/11 2:51 PM Page 92
93
tech
TRENDS
Frequency decomposition tool
enhances seismic data images
A new technology introduced by ffA combines volumet-
ric frequency decomposition and high-resolution RGB
color blending to reveal previously inaccessible informa-
tion on many aspects of imaged geology, such as pinch
outs and thinly bedded reservoir units, that are critical
to the technical and economic success of E&P projects.
Using a proprietary adaptive technology, the HD Fre-
quency Decomposition solution targets signal informa-
tion from seismic data at any frequency to achieve the
best possible resolution at every point in the trace, the
company said. Moreover, its enhanced vertical resolu-
tion results can provide a better match with well data
and also can give the precise vertical position of the
most subtle geological features, improving both opera-
tor efficiency and workflow. ffa-geosciences.com.
New intervention tool
removes wellbore debris
The M-I Swaco Well Scavenger tool captures and
removes relatively small amounts of debris from
the wellbore during well intervention applications.
The tool pumps driving fluid through the fluid jet
pump, generating a reverse circulation flow from
the bottom of the tool through the suction tube.
Once the debris has been picked up, it settles in
the debris basket as the fluid velocity decreases
after passing through the flow diverter. The fluid
then passes through the filter screen, which
captures suspended materials. A reverse circula-
tion path is created at the end of the workstring,
allowing the system to pick up the debris and cap-
ture it in situ. The Well Scavenger tool can be com-
bined with string magnets or junk baskets to increase the
removal capabilities for ferrous or larger debris. Accord-
ing to M-I Swaco, the tools optimum environment is with
Newtonian fluids that have limited solids carrying capabil-
ity or when open perforations, pressure-sensitive down-
hole hardware, or limitations from surface equipment
make it impossible to use high pump rates and pressures.
Miswaco.com/wellscavenger.
Drilling product line targets better ROP
in high angle, horizontal wells
Three new Raptor drilling tools have been designed to
enhance drilling performance in the latest generation
of wells designs by delivering improved rate of penetra-
tion (ROP) in high angle and horizontal wells, accord-
ing to provider Paradigm Oilfield Services. Flexible in
its ability to ream and back-ream, the Raptor Reamer
uses a fully supported cam-arm expansion method and
fail-safe closure mechanism to streamline operations.
Meanwhile, the Raptor Tractor reduces torque as well as
the potential for stick and slip while drilling and fea-
tures a collar that provides 20% of its own weight in for-
ward thrust to ensure consistent weight on bit and
improved ROP. The third new tool, Raptor Roller,
includes a latch/lock roller retention mechanism that
offers total security, according to Paradigm, with rolling
elements further reducing formation stress during
drilling operations. The combination of the Raptor
Rollers pressure balanced grease lubrication system
and optimized fluid by-pass also enhance performance
in a range of hole conditions. Paradigmoilfield.com.
Nancy Agin, Associate Editor
The HD Frequency Decompositions enhanced vertical resolu-
tion can provide a better match between seismic and well
data. (Image courtesy of Lundin Norway)
The modular design
of the Well Scavenger tool comprises
a single-nozzle fluid-driving engine, a
debris screening module, and one or more
debris chambers. (Image courtesy of M-I Swaco)
95
international
SPOTLIGHT
O
ffshore Nova Scotia could contain as much as 8
Bbbl of oil and 120 Tcf of gas resource potential,
according to a play fairway analysis study completed in
1Q 2011 by the Offshore Energy Technology Research
Association (OETR).
In June, the Canada-Nova Scotia Offshore Petroleum
Board (CNSOPB), an independent joint agency for the
Canada and Nova Scotia governments that regulates
petroleum activities offshore Nova Scotia, issued Call
for Bids NS11-1, consisting of eight deepwater parcels.
The Province has invested more than US $15 million in
the OETR Association to conduct the research and
analysis that led to mapping these potential oil and
gas play fairways.
The parcels in NS11-1 are in a geological region that
is largely unexplored and had previously been consid-
ered to have primarily gas potential. According to Sandy
MacMullin, executive director, Petroleum Resources for
the Nova Scotia Department of Energy, OETRs play fair-
way analysis suggests that rather
than containing gas, it is more
likely that a large-scale potential
of oil and condensate traps exist.
We have very strong indica-
tors that would suggest the exis-
tence of an early-Jurassic source
rock that we had only previously
speculated about, MacMullin
revealed. More importantly, the
new analysis indicates that off-
shore Nova Scotia has more wide-
spread hydrocarbon potential
than previously thought, and the
new source rock could be the
impetus for developing a world-
scale petroleum system in an area historically known for
being both geologically complex and gas-prone.
The Department of Energy believes the new source
rock, deposited about 180 million years ago during the
early drifting period between Nova Scotia and Morocco
where similar source rocks and oils have been identi-
fied and cross-referenced could be the entree to new
liquids development along the Scotia shelf.
Meanwhile, the biggest challenge remains convincing
deepwater operators to take on the risks of a new oil
story, MacMullin said.
Should the Nova Scotia parcels warrant oil and gas
development, they will join the ranks of three promi-
nent offshore developments that have shaped Nova
Scotias petroleum sector: the now-decommissioned
Cohasset-Panuke Project, ExxonMobils Sable project,
and EnCanas Deep Panuke offshore gas development.
No longer appealing to the deepwater entrepreneur,
Nova Scotia will only award parcels to operators that
have at least 10 years of experience drilling exploration
wells in more than 800 m (2,625 ft) water depth.
The bid due date is Jan. 10, 2012.
The CNSOPB is offering eight deep-
water parcels with oily upside in
Call for Bids NS11-1. (Image
courtesy of CNSOPB)
Nova Scotia shows promise
as deepwater bright spot
Initial projections for offshore Nova Scotia indicate enormous oil and gas potential, and eight
deepwater parcels could be the entree to a new source rock.
Nancy Agin, Associate Editor
95 Spotlight-NovaScotia_Layout 1 9/20/11 11:51 AM Page 95
O
ffshore activity has been relatively steady in recent
years offshore Newfoundland and Labrador, and
the Province is working to see that it continues.
Minister Shawn Skinner, Department of Natural
Resources, Government of Newfoundland and
Labrador, acknowledges that times have been good
but believes it is important to lay the groundwork for
future investment. What were trying to do here is
accelerate exploration activity, he said. We need
to get out and do something in terms of exploration
to continue to attract investors.
With the producing fields depleted by nearly 70%, it
is imperative to find and develop additional reserves.
There are places of opportunity offshore Newfound-
land and Labrador, Skinner said. We know theyre out
there. As we see production levels decline, we are work-
ing to ramp up new projects.
The heavy-oil Hebron development in the Jeanne
dArc Basin is the next in line, Skinner said, noting that
significant construction work for the project is being
carried out locally. Contracts have been let for the top-
sides and the gravity-based structure, and much of the
services and supply work will be done from within New-
foundland and Labrador.
Max Ruelokke, chairman and CEO of the Canada
Newfoundland and Labrador Offshore Petroleum Board
(CNLOPB), said the ball is now rolling on Hebron.
The Hebron project is moving through its develop-
ment phase, he said, noting that the completeness
review of the development plan application was final-
ized in August and forwarded to Commissioner Miller
Ayre, who has been tasked with carrying out an inde-
pendent review that will be conducted in parallel to a
review being done by the CNLOPB. Ruelokke said this
process is expected to conclude early in 2012.
Meanwhile, another public review is under way for a
proposed exploration well in the Gulf of St. Lawrence.
Its been a fairly busy time, he said.
Paul Barnes, manager, Atlantic Canada for the Cana-
dian Association of Petroleum Producers (CAPP), is in
agreement that momentum must be maintained in the
offshore oil and gas industry.
We want to grow the business and to sustain it into
the future, Barnes said, noting the best way to do that
is to look at areas that can help us in the Arctic, look at
small fields and how they can be tied back and devel-
oped, and look into advances that will enhance
processes such as pipeline trenching.
For Barnes, the questions that remain are: How can
we get more oil and gas out of the ground? and How
can we sustain the industry into the future?
These are some of the very questions being addressed
by research activities for which funds are being allocated
by Petroleum Research Atlantic Canada (PRAC).
According to Dave Finn, PRAC COO, the organization
is looking into four major focus areas for technology
development. Arctic and harsh environment and ice
management and trenching which is a huge challenge
for the industry, are our initial focus areas, he said
The other two are improving recovery from the three
The Skandi Vega anchor-handling vessel pulls alongside the
deepwater semisubmersible rig Henry Goodrich as the rig pre-
pares to move to the Mizzen field. (Image courtesy of Statoil)
96
REGIONAL REPORT:
CANADA
Atlantic Canada warms up
In the province of Newfoundland and Labrador, where three significant offshore projects
are in production, work is beginning on a fourth the heavy oil Hebron project.
Meanwhile, Nova Scotia is gearing up for its next bid round, where awards
will be made for new deepwater acreage.
Judy Murray, Editor
96-101 RR-Canada_96-101 RR-Canada 9/19/11 2:51 PM Page 96
97
REGIONAL REPORT:
CANADA
producing fields on the Grand Banks, and HSE issues.
PRAC, which is funded in large part by contributions
from the five operators in the region ExxonMobil, Sta-
toil, Chevron, Husky Energy, and Suncor is tasked with
helping the companies meet their increased spending
obligation and deliver projects that have business value
and relevance.
You can obviously just spend money, Finn said, but
were trying to link R&D investment to business priori-
ties. Were looking for collaborative opportunities.
With the help of operators eager to develop capability
in the region, PRAC will allocate CDN $400 to $700 mil-
lion in technology development over the next 15 years.
Operator update
According to Mark MacLeod, vice president, Atlantic
Canada, Chevron Canada, Offshore Newfoundland
and Labrador is one of Chevrons
four focus areas for our company
in Canada.
Chevron is a non-operating joint
venturer in two of the three pro-
ducing fields offshore Newfound-
land and Labrador Hibernia and
Terra Nova and in the Hebron
project, which is being developed.
From an exploration perspec-
tive, Chevron Canada has com-
menced the activities required to
be in a position to drill a third
Orphan Basin exploration well in
2012, MacLeod said, explaining
that a final decision on drilling a
third well remains subject to regu-
latory and co-venturer approval.
Previously, as operator, Chevron
drilled the Great Barasway F-66
well in 2006/2007 and the Lona
O-55 well in 2010. In the coming
weeks, the key initial activities will
include preparing to mobilize a
team to St. Johns and starting to
prepare key regulatory applica-
tions, he said.
Meanwhile, Chevron is laying
the groundwork for additional
activity, recently completing a 2-
D/3-D regional seismic survey in
the North Grand Banks region.
This regional seismic survey
will increase our understanding
and knowledge of prospectivity of the area and will help
inform our future exploration activity in the region,
MacLeod said.
In February 2010, Chevron partnered with Memorial
University of Newfoundland (MUN) and the Research &
Development Corp. of Newfoundland and Labrador
(RDC) to build a Process Engineering Design and
Research Laboratory on campus. At that time, MacLeod
announced that Chevron had selected MUN to join its
University Partnership Program, which includes approxi-
mately 100 schools worldwide, noting that MUN would be
the first university in Canada selected for this program. In
December 2010, Chevron Canada Ltd. again partnered
with RDC and MUN in a $1 million partnership to fund
the Chevron Chair in Petroleum Engineering.
ExxonMobil has been active in Atlantic Canada for
decades. In addition to being lead owner on Hibernia,
The three producing fields offshore Newfoundland and Labrador Hibernia, Terra Nova, and
White Rose are in the Jeanne dArc Basin. (Map courtesy of CNLOPB)
West Newfoundland Basin
Laurentian Basin
Orphan Basin
Jeanne
dArc Basin
Flemish
Pass
96-101 RR-Canada_Layout 1 9/20/11 8:45 AM Page 97
98
the first producing offshore field, and holding interest in
Terra Nova, ExxonMobil will operate the Hebron field,
which is scheduled to come onstream in 2017. The com-
pany also has deepwater acreage in the Orphan Basin.
Meg ONeill, president, ExxonMobil Canada, talked
about the companys plans at the annual Newfoundland
Offshore Industries Association (NOIA) conference in
St. Johns, Newfoundland and Labrador, in mid-June.
This an exciting place to be, ONeill said. There is a
lot going on, and the oil and gas industry is very much at
the center of this activity.
One of ExxonMobils recent investments is in gas lift
technology that will increase production on Hibernia.
The modules, which are being constructed locally, are to
be installed this year, with project startup planned for
2012. Its a $200 million investment that will result in
incremental volumes of production with a solid return
for all parties, ONeill said, noting that the offshore
loading systems also are being replaced on the field.
Work is ongoing as well on the Hibernia South Exten-
sion (HSE), which ONeill said represents US $1.7 billion
in new investment. The first of at least four production
wells was spudded in March 2011, ahead of the original
plan, which resulted in early production from the HSE
unit this year. Subsea development activities and drilling
will continue in 2012 and 2013, with project completion
expected in 2014 after water injection is established,
ONeill said. This development will bring Hibernias total
recoverable resource to 1.2 Bbbl, more than double the
volumes projected at the time of initial project funding in
the mid-1990s.
Like other operators in the area, ExxonMobil is invest-
ing in R&D, what ONeill refers to as an ongoing focus
on new technology and innovation.
One noteworthy project is a commitment on behalf
of the Hibernia and Terra Nova projects to contribute
$12.5 million over five years to help support the estab-
lishment of the Centre for Arctic Resource Develop-
ment, which will complement the work of C-CORE, a
separately incorporated research and development cor-
poration of MUN.
Earlier this year Hibernia announced a $2.4 million
donation to support the installation of new simulation
training equipment at the Fisheries and Marine Insti-
tutes Offshore Safety and Survival Centre.
Statoil also is investing actively in R&D in the region.
As Hege Rogn, vice president, Offshore Upstream, Sta-
toil Canada put it, R&D and technology development
are in the DNA of the company.
One of the primary areas of interest is in arctic research.
There is a lot to learn for us as an operating com-
pany, Rogn said. In Norway, we have a lot of experi-
ence operating in harsh weather and harsh conditions,
but what we dont have is ice.
Current R&D focus areas include ice management; ice
compressive loading; subsea trenching; escape, evacua-
tion, and rescue, and oil spill recovery response. We
would like to learn from the semi-Arctic conditions and
to support Arctic research further, she said.
Toward that end, Statoil is working with PRAC along
with other local operators to pursue further projects,
Rogn said, noting that one of the areas Statoil wants to
focus on is subsurface R&D. It is critical to understand
the subsurface, she said, because that understanding is
essential to developing discoveries.
The research that is happening in Newfoundland
and Labrador is something that we actively want to keep
supporting, Rogn said.
From an E&P standpoint, Statoil is using Transoceans
Henry Goodrich semisubmersible to undertake a drilling
program. Our main projects this year are two explo-
ration wells, Rogn said, noting that the company is
currently drilling the deepwater Mizzen prospect in the
Flemish Pass. When that well is finished, we move
directly to the Southern Jeanne dArc and drill another
prospect called Fiddlehead.
The company has contracted WesternGeco to gather a
1,666-sq-km (643-sq-mile) 3-D seismic survey in the
Flemish Pass.
Meanwhile, investment continues on Hibernia and
Terra Nova, where Statoil is a partner, and in field devel-
opment programs on HSE and Hebron.
To date, Statoil has invested in offshore developments
as a minority partner and in exploration programs as an
operator, but the company is hoping to move to produc-
REGIONAL REPORT:
CANADA
The Terra Nova FPSO in the Jeanne
dArc basin came onstream in
January of 2002. (Image courtesy
of Suncor Energy)
99
tion operations in the future.
Long-term, our ambition here in Newfoundland and
the Province is to become a producing operator, Rogn
said. It takes quite some time to move from exploration
acreage to go through the steps of being a producing
operator, but thats what were working toward.
Husky Energy achieved operating partner status more
than a decade ago as operator of the White Rose field.
Paul McCloskey, vice president, Atlantic Region, Husky
Energy, said Atlantic Canada is one of Huskys pillars of
growth. This region continues to be a key focus area for
the company with significant future development and
exploration opportunities, he said.
Huskys primary focus for 2011 has been executing
near-field developments such as North Amethyst and
West White Rose. This has included development
drilling at North Amethyst and work on the West White
Rose pilot well pair, McCloskey said.
The operator continues to see good production from
the White Rose field and is developing satellite exten-
sion fields at North Amethyst and West White Rose.
North Amethyst achieved first production May 31, 2010
and currently has three production wells and three water
injectors online. In August 2010, the operator received
REGIONAL REPORT:
CANADA
The WG Tasman is one of the seismic vessels working offshore
Newfoundland and Labrador. (Image courtesy of WesternGeco)
regulatory approval for a two-well pilot project at West
White Rose, which started production Sept. 5, 2011. The
West White Rose pilot well pair will provide dynamic
information on the reservoir and help us finalize our full
field development plan, McCloskey said.
At present, the North Amethyst and West White Rose
pilot developments are under way, and the company is
looking at the feasibility of a concrete gravity-based well-
head platform for future depletion of the White Rose
field and satellite extensions. Other plans locally include
delineation of the Mizzen deepwater prospect.
Suncor Energy holds a unique position as the only com-
pany on the East Coast with interests in all current produc-
ing fields Hibernia (20%) , Terra Nova (operator with
37.675%), and White Rose (27.5%) as well as HSE, the
White Rose Extensions, and the Hebron field (22.73%).
Currently, it is business as usual on Terra Nova, with a
turnaround program carried out beginning in September
2011 and plans in place for H
2
S mitigation that will
require replacement of some flowlines and risers in 2012.
While Suncor is interested in pursuing exploration
drilling for new opportunities, according to Sandy Mar-
tin, vice president, East Coast, at present drilling focuses
on development of Terra Nova.
Suncors recent R&D efforts include a CND $6.8 mil-
lion investment in partnership with RDC in the Suncor
Energy Offshore Research and Development Centre at
MUN in February 2011. The 1,090-sq-m (11,733-sq-ft)
extension will create significant research space and pro-
mote synergy in collaboration among faculty, graduate
students, and industry.
Nova Scotia opens new acreage
Exploration offshore Nova Scotia has slowed consider-
ably in the last few years, but a new play fairway analysis
could turn things around.
Industry has a perception of offshore Nova Scotia as
complex geology, gas-prone, limited potential, and a
high-cost environment, said Sandy MacMullin, execu-
tive director of Petroleum Resources for the Nova Scotia
100
REGIONAL REPORT:
CANADAREGIONAL REPORT:
CANADA
Department of Energy. That, in a nutshell, is what
were up against.
Fortunately, the results of the $15 million analysis
show that is only part of the picture. The hydrocarbon
potential is much greater than what we thought, Mac-
Mullin said. Weve got a new and peer-reviewed source
rock story, and that story includes an estimated 8 Bbbl
of oil potential in addition to 120 Tcf of gas.
Weve rationalized why the recent failed exploration
wells have failed, and we think that with modern 3-D
seismic and new attribute analysis work, you should be
able to map the channels into the deep water, Mac-
Mullin said.
We now believe that the southwest offshore is primarily
an oil play. In addition, we have what we call an oil rim
which we believe begins just west of the Sable Island area
and extends to the northeast. Basically, the southwest and
northeast areas contain significant oil opportunities, he
said. More than 900 Bbbl of oil equivalent was generated
in offshore Nova Scotia over the last 180 million years,
and at least 5% of that is trapped.
Barbara Pike, executive director of the Offshore Tech-
nology Association of Nova Scotia, agrees that oil will have
to be the target if Nova Scotia is to entice investors. If
were going to get companies back drilling offshore, its
going to be for oil, she said, not natural gas.
The play fairway analysis provides a good look at what
the geology looks like offshore, according to Pike. On
the southwest Scotia slope, the play fairway analysis indi-
cates significant oil.
At present, however, activity offshore Nova Scotia
focuses on natural gas development.
Stuart Pinks, CEO of the Canada-Nova Scotia Offshore
Petroleum Board (CNSOPB), said gas production from
offshore is about to increase. Canadas second offshore
natural gas project, Deep Panuke, will be coming
onstream in 2012, he said, noting, Theres been an
awful lot of activity over the last couple of years getting
ready for that project. A second pipeline was installed
in 2009. And in 2010, operator Encana drilled an acid
gas disposal well to receive H
2
S that will be stripped out
of the production stream. The company also completed
four previously drilled exploration/delineation wells
and converted them into production wells last year.
Right now is a really interesting time offshore Nova
Scotia, Pinks said. Weve got production from five
fields that will continue on into the latter part of this
decade. At the same time that weve got additional pro-
duction coming onstream, we are sensing a renewed
interest from a geological perspective offshore Nova
Scotia resulting from the play fairway analysis.
Steve Bigelow, director, Resources and Rights and
chief conservation officer at the CNSOPB said the eight
blocks that will be up for bid early next year will be
attractive to experienced deepwater operators. The
parcels are in 950 m to 4,100 m (3,100 ft to 13,500 ft)
water depth.
At the same time as the call for bids is out there,
were conducting a Strategic Environmental Assess-
ment, Bigelow said, which will be made available to
potential bidders.
The bidders will be able to see the lay of the land
from an environmental perspective, Pinks explained.
Theyll know what the environmental sensitivities are
and what additional assessments would have to be done
as part of their application for authorization to under-
take activity offshore.
The CNSOPB is optimistic that the upcoming bid
round will breathe new life into Nova Scotias offshore.
The tide has turned in terms of interest in offshore
Nova Scotia, Pinks said. Were seeing a lot of positive
indications of companies from around the world. This
call for bids will give us a good indication, but were
hopeful that this is a first step in renewed interest. I
think its an exciting time.
101
REGIONAL REPORT:
CANADA
The Henry Goodrich semisubmersible has been contracted to
work in Atlantic Canada through a rig-sharing agreement
among Statoil, Suncor, and Husky Energy. (Image courtesy of
Transocean Inc.)
Africa
Light oil found offshore Ghana
Anadarko has confirmed a light oil discovery on the West
Cape Three Points Block offshore Ghana. Drilled in
1,160 m (3,800 ft) water depth, the Akasa-1 well encoun-
tered 33 m (108 ft) of net high-quality oil pay (38API)
from four main Turonian-aged sand packages similar to
those found in the Jubilee and Mahogany East areas.
Pazflor flows first oil
offshore Angola
Block 17 operator
Total has brought the
Pazflor field offshore
Angola onstream
ahead of schedule.
The field, situated in
600 m to 1,200 m
(1,980 ft to 3,960 ft)
water depths, has esti-
mated proved and
probable reserves of
590 MMbbl and is
expected to ramp up
to full production
capacity of 220,000 b/d. The Pazflor floating produc-
tion, storage, and offloading (FPSO) vessel the worlds
largest can store up to 1.9 MMbbl of oil.
North America
Canada producers develop fracing guidelines
The Canadian Association of Petroleum Producers
(CAPP) unveiled new guidelines for hydraulic fracturing
practices that include water management and improved
water and fluids reporting for increased shale gas devel-
opment. The guiding principles apply in all jurisdictions
in which the upstream industry operates in Canada and
are available on the CAPP website at capp.ca.
Multiclient survey kicks off in Labrador Sea
A new 22,000-km (mile) multiclient 2-D survey has
started in Eastern Canada offshore Newfoundland in
the Labrador Sea covering the area north of the Hiber-
nia, Hebron, Terra Nova, and White Rose oil discover-
ies. TGS in partnership with PGS is acquiring the seismic
data through 3Q 2011; the M/V Sanco Spirit seismic ves-
sel will return in 2012 to complete the survey.
NOAA, oil majors ink Arctic research deal
The National Oceanic and Atmospheric Administration
(NOAA), Shell Exploration & Production, Cono-
coPhillips, and Statoil USA have partnered to collabo-
rate on a number of scientific datasets for the Arctic
frontier region, including weather and ocean observa-
tions, biological information, and sea ice and sea floor
mapping studies. The data will be used to monitor cli-
mate change and provide products and services that
inform responsible energy exploration activities in
the region.
Gulf of Mexico
Mad Dog takes bigger bite
BPs recently drilled appraisal well in a previously
untested northern segment of the Mad Dog field in
Green Canyon Block 738 in the US Gulf of Mexico
(GoM) encountered approximately 50 m (166 ft) of net
hydrocarbons in the objective Miocene hydrocarbon-
bearing sands, confirming the Mad Dog complex
resource extension. The well, drilled in 1,371 m (4,500
ft) water depth, also discovered an oil column of more
than 91 m (300 ft). Total hydrocarbons initially in place
at Mad Dog are estimated to be as much as 4 Bboe.
Moccasin strikes Wilcox pay for Chevron
The Moccasin prospect has proven a new oil discovery
in Keathley Canyon Block 736 in the deepwater GoM.
The well (No. 1) was drilled to a depth of 9,559 m
(31,545 ft) in 2,048 m (6,759 ft) water depth and struck
more than 115 m (380 ft) of net pay in the Lower Terti-
ary Wilcox sands. Chevron began drilling the Mocassin
well in March 2010 but had to suspend activity due to
the US moratorium on deepwater wells; drilling
resumed in March 2011.
DOE sets date for Western GoM lease sale
Interior Secretary Ken Salazar and BOEMRE Director
Michael Bromwich have confirmed the first oil and gas
lease sale in the GoM since the Deepwater Horizon inci-
dent will be held in New Orleans on Dec. 14, 2011.
Lease Sale 218 consists of 3,900 unleased blocks on 20.6
EPmag.com
READ MORE ONLINE
For additional
information on
these projects
and other global
developments:
This illustration shows one of the 49
subsea wells supplying the Pazflor
FPSO. (Image courtesy of Total SA)
102
international
HIGHLIGHTS
102-105 Highlights-OCT_102-105 Highlights-OCT 9/19/11 2:52 PM Page 102
103
international
HIGHLIGHTS
million acres and will include all available unleased
areas in the Western Gulf Planning Area offshore Texas.
Middle East
Iraqi well flows 15,000 b/d from three zones
Three tests have been conducted on the Shaikan-2
well with a maximum aggregate flow rate of more than
15,000 b/d, according to Gulf Keystone Petroleum. Up
to five more tests are planned in the Triassic and Jurassic
formations. A major discovery in the Kurdistan Region
of Iraq, Shaikan has independently audited gross OIP
volumes between 4.9- and 10.8 billion on the P90-to-P10
basis, with a mean value of 7.7 Bbbl.
Europe
Rosneft, ExxonMobil finalize Arctic, international pact
Rosneft and ExxonMobil have formed a US $3.2 billion
strategic alliance to jointly explore East Prinovozemel-
skiy blocks 1, 2, and 3 comprising 126,000 sq km (30
million acres) in Kara Sea in the Arctic Ocean and the
Tuapse License Block comprising 11,200 sq km (2.8
million acres) in the Black Sea. The JV also will estab-
lish a joint Arctic R&D center for offshore development
in St. Petersburg; develop tight-oil resources in Western
Siberia; and focus on expanding the companies off-
shore and tight-oil knowledge base in the US deepwater
GoM as well as in other countries.
West of Shetlands prospect hits oil
Faroe Petroleum has reported an oil discovery with
exploration well 206/5a-3 in the Fulla prospect West
of Shetlands. Drilled by the Awilco WilPhoenix semisub-
mersible drilling rig in 124 m (407 ft) water depth, the
well penetrated a 14-m (45-ft) net oil column and a
gross oil column of 41 m (133 ft). The average porosity
in the net interval has been estimated at 23%. Fulla lies
31 km (19 miles) northeast of the BP-operated Clair
field platform.
2-D seismic survey begins offshore Greenland
In preparation for the 2012-13 Greenland licensing
round, TGS-NOPEC, in partnership with Fugro, has
begun a 1,000-km (600-mile) multiclient 2-D survey off
northeast Greenland using the M/V Akademik Shatskiy
seismic vessel and M/V Fennicia ice breaker. Data will be
available in 1Q 2012. The survey is slated for completion
in 4Q 2011.
South America
Serrette sees first gas offshore Trinidad
BP Trinidad and Tobago (BPTT) has started producing
natural gas from the Serrette field offshore Trinidad
in 90 m (280 ft) water depth. The field was brought
online using an unmanned, nine-slot platform that was
installed in 2010 and has a design capacity of 1 Bcf/d.
Production is tied in to BPTTs Cassia B hub via a 26-in
diameter, 32-mile pipeline. The platform is expected to
average 400 MMcf/d of gas and associated condensate
from five wells.
ExxonMobil seals Argentina shale gas pact
Americas Petrogas Argentina has farmed out an interest in
163,500 gross acres in the Neuqun basin in Argentina to
ExxonMobil Exploration Argentina. The assets, collectively
known as the Los Toldos blocks, are prospective for the
Vaca Muerta shale. ExxonMobil has committed to fund US
$53.9 million during the exploration phase, with a further
$22.4 million to exploit the Los Toldos 1 and 2 blocks. The
first Vaca Muerta well is to be spudded in 4Q 2011. The US
EIA estimates the Late Jurassic-Early Cretaceous shale has a
risked recoverable resource of 240 Tcf of gas.
North Sea
BP, partners to develop Central North Sea
BP and partners Eni and Summit plan to invest up to US
$1.13 billion to develop the Kinnoull oil reservoir near
the Andrew field in the central North Sea. The reservoir,
estimated to contain 45 MMboe, will connect to BPs
Andrew platform and is expected to come online in 2013,
peaking at 45,000 b/d during its lifecycle through 2020.
The Serrette field is on Block Samaan in 90 m (280 ft) water
depth offshore Trinidad. (Image courtesy of BP Plc)
104
international
HIGHLIGHTS
The project will include the installation of a new subsea
system comprising four subsea bundles with a total length
of 28 km (17 miles) the worlds longest bundle system
and major modifications to the existing platform.
Breagh, Clipper South on
track for 2012 production
RWE Dea UK said it expects
first gas from its Breagh field,
one of the largest natural gas
discoveries in the southern
North Sea, in 2H 2012 and
from its Clipper South develop-
ment in 1H 2012. The field is in
UKCS blocks 42/12a and
42/13a in 62 m (205 ft) water
depth. The Clipper South plat-
form, with topsides weighing
1,900 metric tons, was installed
on Aug. 27 in 23 m (76 ft) water depth.
Asia
BP makes $7.2B investment in India
Reliance Industries Ltd. (RIL) and BP will form a 50-50
natural gas joint venture in India following BPs acquisi-
tion of a 30% stake in 21 RIL-operated oil and gas produc-
tion-sharing contracts (PSCs) for US $7.2 billion.
Additional payments of up to $1.8 billion could be paid
based on resulting commercial discoveries. The PSCs con-
sist of 220,000 sq km (84,942 sq miles) in 400 m to more
than 3,000 m (1,320 ft to more than 9,900 ft) water depth.
Also included is the KG-D6 Block, which produces 1.7
Bcf/d of gas.
TGT field offshore Vietnam pumps first oil
The Te Giac Trang field (TGT) began flowing oil and wet
gas from the Armada TGT 1 FPSO on Aug. 22 at an initial
production rate of 16,000 b/d from the HI wellhead plat-
form. Production is expected to reach 55,000 b/d by year-
end 2011, with gas production at 30 MMcf/d.
The Breagh platform con-
sists of an 85-m tall, 4,000-
metric-ton jacket and
topsides of approximately
1,400 metric tons. (Image
courtesy of RWE DEA UK)
106
on the
MOVE
People
Effective Aug. 1, Schlumberger CEO Andrew Gould retired
after 36 years with the company; he is succeeded by former
COO Paal Kibsgaard.
The AAPG Foundation has elected David Curtiss as its exec-
utive director and AAPG CFO David Lange as its deputy
executive director.
Texas Institute of Science has welcomed retired Oceaneer-
ing International President and CEO and current director
T. Jay Collins as its newest board member.
Andrew J. Norman has taken the helm of JDR as the com-
panys new CEO.
Brinker Technology has named former vice presi-
dent, sales & operations, Kenny McAllister (left) as
its new CEO.
Applus+ has designated Iain Light (right) to be the
global leader of Applus RTD. Additionally, Applus
RTD has confirmed Bengt Eide as offshore proj-
ects operations director for the UKCS and Norwe-
gian North Sea.
John Kelly (left) has assumed the newly created
role of Central and Northern North Sea opera-
tions director at RBG. The company also
appointed Ian Henderson president of its
Kazakhstan business unit.
Chris Barton (right) has taken the reins as senior
vice president, business development, for KBRs oil
and gas business unit.
Alan Brunnen has been promoted to the Aker Solutions
executive management team and will head its Brazilian sub-
sea operations. Tove Rskaft also has joined the executive
management team and will continue to lead the companys
Umbilicals segment. Additionally, Bengt
Larssen has been tapped as head of the
companys geo business.
The new Wood Group PSN has welcomed
Robin Watson as UK managing director.
Transocean has
promoted Terry B.
Bonno (left) to the
position of senior vice
president, marketing,
and Mark Monroe (right) vice president,
account management.
2H Offshore has
appointed Tim Eyles
(left) managing
director of the group
and David Walters
(right) principal director of the 2H Off-
shore global management team.
Tim Brooks has become vice president of
operations, North America, for the Land
division of CGGVeritas.
Expansions
TAM International will provide its com-
plete product line of inflatable and
swellable packers at a new office in
Leduc, Alberta, Canada.
Hamworthy is expanding its oil and
gas handling systems and pump systems
offerings with a new service center
in Brazil.
Siemens Energy has opened a new subsea
technology R&D center in Trondheim,
Norway.
Swire Oilfield Services has started work
on new Aberdeen headquarters that will
more than double its capacity.
Proserv Technology, Proserv Offshore,
Hydrafit Subsea, Gilmore Valve, and
Argus Subsea have been restructured
into a new organization under the new
Proserv brand headquartered in
Aberdeen.
ADVERTISER INDEX
on the
MOVE
107
Baker Hughes Incorporated . . . . . . . . . . . . . 35
Calmena Energy Services . . . . . . . . . . . . . . . 49
Cameron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
CDI Seals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
CGG Veritas . . . . . . . . . . . . . . . . . . . . . . . . . . 43
CNPC Greatwall Drilling Co. . . . . . . . . . . . . . 63
Compressor Systems, Inc. . . . . . . . . . . . . . . . 81
Cudd Energy Services . . . . . . . . . . . . . . . . . . 53
Dragon Products, Ltd. . . . . . . . . . . . . . . . . . . . 30
Emerson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
EMGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC
E&P . . . . . . . . . . . . . . . . . . . 83, 87, 90,91,94,104
Escondido Resources II . . . . . . . . . . . . . . . . . 99
Expro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Expro Group . . . . . . . . . . . . . . . . . . . . . . . . . . 21
FMC Technologies . . . . . . . . . . . . . . . . . . . . . 69
Fugro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Fugro Jason . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
The Gas Gun . . . . . . . . . . . . . . . . . . . . . . . . . . 67
General Electric Co-Energy . . . . . . . . . . . . . 19
GEFCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Greenes Energy Group . . . . . . . . . . . . . . . . . 73
Halliburton . . . . . . . . . . . . . . . . . . . . . . . . . 6, 47
IPAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
J&J Truck Bodies & Trailers . . . . . . . . . . . . . . 38
Lufkin Industries, Inc. . . . . . . . . . . . . . . . . . . . 40
Magnum Oil Tools International . . . . . . . . . . 37
McJunkin Red Man Corporation . . . . . . . . . . 55
Mewbourne . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
M-I Swaco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Momentive . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
National Oilwell Varco . . . . . . . . . . . . . . . . . . 17
Nachurs-Alpine . . . . . . . . . . . . . . . . . . . . . . . . 85
NCS Energy Services, Inc. . . . . . . . . . . . . . . . 39
Newpark Drilling Fluids . . . . . . . . . . . . . . . . . 28
Optimization Petroleum Technologies . . . . . 36
P2 Energy Solutions . . . . . . . . . . . . . . . . . . . . 77
Performance Hi Test . . . . . . . . . . . . . . . . . . . . 79
Petris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
PGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
R360 Environmental Solutions . . . . . . . . . . . . 65
Roper Pump Co. . . . . . . . . . . . . . . . . . . . . . . . 76
Roxar Software Solutions . . . . . . . . . . . . . . . . 45
Schlumberger . . . . . . . . . . . . . . . . . . . . . . 5, BC
Society of Petroleum Engineers . . . . . . 100, 106
Stallion Oilfield Services . . . . . . . . . . . . . . . . 15
Statoil ASA . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 3
TBC-Brinadd . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Tetra Technologies, Inc. . . . . . . . . . . . . . . . . IBC
TGS NOPEC . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Unleaded Communications . . . . . . . . . . . . . . 41
Weatherford International, Ltd. . . . . . . . .24, 25
Group Publisher
RUSSELL LAAS
Tel: 713-260-6447
rlaas@hartenergy.com
Associate Publisher
DARRIN WEST
Tel: 713-260-6449
dwest@hartenergy.com
United States
Canada / Latin America
1616 S. Voss Road, Suite 1000
Houston, Texas 77057 USA
Tel: 713-260-6400
Toll Free: 800-874-2544
Fax: 713-627-2546
Regional Sales Manager
JULIE B. FLYNN
Tel: 713-260-6454
jflynn@hartenergy.com
Regional Sales Manager
HENRY TINNE
Tel: 713-260-6478
htinne@hartenergy.com
Advertising Sales Representative
ERIC MCINTOSH
Tel: 713-260-6471
emcintosh@hartenergy.com
Sales Manager
Eastern Hemisphere
DAVID HOGGARTH
Tel: 44 (0) 7930 380782
Fax: 44 (0) 1276 482806
dhoggarth@hartenergy.com
Advertising Coordinator
CAROL NUNEZ
Tel: 713-260-6408
cnunez@hartenergy.com
Subscription Services
E&P
1616 S Voss Road, Suite 1000
Houston, Texas 77057
Tel: 713-260-6442
Fax: 713-840-1449
custserv@hartenergy.com
List Sales
MICHAEL AURIEMMA
Venture Direct
212.655.5130 phone
212.655.5280 fax
mauriemma@ven.com
MARKETING | SALES | CIRCULATION
106-107 Onthemove_Layout 1 9/20/11 12:44 PM Page 107
T
echnology has made leaps and bounds to address
growing reservoir complexity in recent years. E&P
companies are now armed with the technical ability to
drill in many locations previously considered undrillable.
Still, with the memory of Macondo sharply in mind,
improving downhole certainty while decreasing
exposure to risk remains a top concern for
operators drilling in any environment,
particularly in difficult scenarios.
Recent developments in closed-
loop drilling technology
advance current standards for
drilling safety and opera-
tional performance. These
systems offer a scalable set
of capabilities that allow
operators to monitor
downhole pressures and
contain, control, and
manage annular flow.
Ranging from early kick
and loss detection to man-
aged pressure drilling
(MPD), closed-loop drilling
methods provide answers to
many of the obstacles drillers
face, including expensive
kick/loss episodes, total circulation
losses, and narrow pore-pressure/frac-
ture-gradient windows.
Closed-loop drilling systems have been
applied across a broad scope of applications to provide
critical downhole information to improve operations
and increase overall safety and well integrity.
Enhance well control
Encountering an anomaly that accelerates into a full-
scale well control event is the ultimate fear in an E&P
project, especially when the stakes are high such as in
deep water. Closed-loop systems decrease the likelihood
of such an incident by greatly improving the ability to
detect and respond to pressure fluctuations.
Conventional means of reducing the probability or
impact of a loss or a kick scenario include casing, fluid
programs, and other barriers to well control incidents in
the well design. On the back end, should an incident
escalate, the blowout preventer and other mitigation
procedures help minimize the consequences. Beyond
upfront engineering and reactionary responses,
there are no other lines of defense against
well control events using traditional
well construction methodologies.
Closed-loop technology bridges
that gap by providing the ability
to precisely measure and man-
age minute fluid influxes and
losses before they develop
into an incident. This early
warning and management
capability serves as an
additional control meas-
ure and effectively
reduces the need to apply
traditional secondary well-
control practices.
Drill with more
confidence
Operators can rely on closed-
loop drilling systems not only to
reduce risk but to provide high-
fidelity real-time data.
The outcome of a kick/loss scenario
can be exacerbated by slow detection or a misdi-
agnosis. A slow or incorrect response could lead to
hydrocarbons reaching the surface and damaging the
environment. A shut-down can cost millions of dollars in
nonproductive time. The ability to monitor, detect, and
react quickly to pressure changes in the stand pipe and
at the surface enables the downhole pressure profile to
be proactively managed and manipulated. More control
helps the operator navigate safely and successfully
through known and unknown hazards.
Reduce uncertainty,
risk in drilling projects
Scalable closed-loop drilling systems provide drillers with greater assurance
for safe and productive operations in almost any environment.
Brian Grayson, Weatherford Secure Drilling Services
last
WORD
108
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nd work and work.So your operation can too.

Even Layer Power Sections'"', don't

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E P MAG.

nd work and work.So your operation can too.

Even Layer Power Sections'"', don't

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Revista E&P - Octubre 2011

Revista E&P - Octubre 2011