IADC/SPE 112869

Dual Activities without the Second Derrick A Success Story

Tamara Webb and Kasim Selamat, Murphy Sabah Oil; Billy Fletcher, Seadrill

Copyright 2008, IADC/SPE Drilling Conference

This paper was prepared for presentation at the 2008 IADC/SPE Drilling Conference held in Orlando, Florida, U.S.A., 46 March 2008.

This paper was selected for presentation by an IADC/SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not
been reviewed by the International Association of Drilling Contractors or the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily
reflect any position of the International Association of Drilling Contractors or the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any
part of this paper without the written consent of the International Association of Drilling Contractors or the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is
restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of IADC/SPE copyright.

Abstract

Kikeh Field is located 120 km from Labuan in offshore Sabah Malaysia. The field, with 1330 m water depth, is the first
deepwater development in Malaysia and consists of subsea and SPAR development wells.

The West Setia is a non-propelled Semi-Submersible Drilling Tender being used for SPAR development activities. The
Drilling Tender utilizes six stability columns supported by a twin-hull configuration. However, the derrick and partial rig
package still sits on the SPAR (or platform deck) to carry out drilling and completion operations.

The completion program covers not only standard scope of installation, i.e. lower, middle and upper completion, but also
includes displacing fluid with nitrogen for riser dewatering and well clean up and testing. Several logging operations also
were identified as tasks to be delivered during completion operations.

Considering the wide scope of completion work outlined in the program, a detailed work assessment was conducted focusing
on areas where offline activities could be conducted safely and efficiently. As a result of the assessment, at least seven
completion-related activities were identified.

During the first batch of SPAR completions which involved five wells, the result showed that the following activities were
successfully completed offline, allowing the rig to be utilized for critical path operations:

Tubular make up and racking back

Tree installation
Riser annulus dewatering
Setting/testing Mudline Hanger Packer (MLHP)
Installation of flowline jumper and umbilical
Clean up and flow testing the well
Cement and reservoir evaluation logging
Production Riser Tensioner installation and commissioning
Cycling and opening Formation Isolation Valve (FIV)

This paper will describe in detail each of the operations involved, discuss rig capabilities and limits, and explain the
challenges, safety considerations and lessons learned from the project as well as the time savings and value created from each
of the activities.

Introduction

Completion operations played a major role in the overall Kikeh deepwater development with 25 percent of the total field
development and 58 percent of the well capex attributed to the well completions. Early focus on reducing capex spending
emphasized the need for proper evaluation, planning and focus on time-saving opportunities to be carried out off the rigs
2 IADC/SPE 112869

critical path operation. Many factors contributed in ensuring some activities could be done off the rig critical path, such as rig
capabilities, SPAR capabilities, personnel, extensive planning, proper communication, completion and equipment design.

The scope of SPAR completion activities can be easily divided into nine phases of operation production tensioner and riser
installation, wellbore clean out, Tubing Conveyed Perforation (TCP), lower completion installation, upper completion
installation, tree installation, riser annulus dewatering, well clean up, and testing. In addition, several activities also were
identified requiring execution during the completion phase. These consisted of cement and riser evaluation logging and
installation/commissioning of flowline jumpers and umbilicals. Figure 1 shows the Kikeh Well Completion Design.

Within the first completion campaign, at least eight types of activities were consistently carried out off the rigs critical path
operation. Detailed work description and how the work objectives were achieved are described in the following paragraphs.

Assets

Rig Capabilities

The Kikeh Field is located in the South China Sea just north of Borneo. The significance of the field location is that mild
environmental conditions exist, thus opening the door for tender assisted drilling applications. Additionally, tender operations
are common to Southeast Asia, and the market can sustain these rig types. Therefore, the tender-assisted rig concept was
selected in the early design phase due to its market availability in this region and the capability to deliver performance. The
West Setia rig (Figure 2) is the Tender Assisted Drilling (TAD) vessel that was awarded the drilling and completion activities
for the Kikeh Field in 1330 meters of water. It is a semi-submersible, self-erecting tender rig that has the capability of being
moored to the SPAR facility. The West Setia contains the supporting pipe deck, circulation system, independent mud and
brine storage, quarters, cranes, generation and other rig support packages while the Drilling Equipment Set (DES) is located
on the SPAR deck where it has two skid beams to support it. The rig substructure sits atop the SPAR skid beam and moves in
a north-to-south direction. Meanwhile, the secondary skid houses the DES unit, which moves in an east-to-west direction.
The DES package consists of drawworks, derrick, rig floor, shaker, small pit capacity, and offline activities cantilever.

SPAR Capabilities

The Kikeh SPAR topsides serve essentially as a well protector facility housing 19 dry tree wells with minimal hydrocarbons
processing on board. As such, the top deck is free of quarters and processing equipment and can be utilized for other
operations. In addition to the large top deck, the SPAR supports two cranes with lifting capacities of 25 and 10 metric tons
respectively, which have proven to be essential tools for everyday operations.

Personnel

One can not address the successes in the Kikeh Field without talking about the operators ability to attract highly productive
and experienced people. These people, the essence behind the dual activity approach, are driven largely by two sets of talents
The offshore supervisors and rig crew brought SPAR completion experience to the table, but, more importantly, they brought
open thinking and can do attitudes that continued to identify and capture new ways to perform tasks effectively. The
completion engineering team brought a depth of design and operational experience to the challenge of designing a completion
and activities with field implementation in mind throughout the process

Challenges

Safety

Managing safety was the key to being successful in conducting the many offline activities. Oftentimes, the rig was working
normal operations on the rig floor while as many as four or five other operations were being conducted on multiple wells.
Safety was managed from multiple perspectives. Every morning, an all-encompassing meeting was conducted with all
service hands and rig crews to review primary operations on the rig floor as well as offline operations, interfaces, persons
responsible for each activity, and key safety concerns for each operation. For new activities, a risk assessment was done days
in advance of the operation. Subsequently, each risk assessment was incorporated in the pre-job Job Safety Analysis (JSA) or
Toolbox talk. Another important aspect of managing the multiple tasks was to have an adequate level of company
supervision engaged in the activities and meetings. In addition to the normal night and day company drilling supervisor,
personnel included a field Offshore Installation and Construction Manager (OICM) and a completion supervisor. The OICM,
who resided on the rig, managed all field interfaces ongoing between drilling, completions, construction and production, and
IADC/SPE 112869 3

provided extra support for offline activities as well. The completion supervisor position was focused purely on well activities
and liaised with both the drilling supervisor and OICM. The drilling supervisor was in charge of all completion activities
regardless of online or offline, and the completion supervisor supported his needs by providing additional rig floor time.
Lastly, our drilling supervisors great depth of experience in completion and SPAR operations was irreplaceable.

Although the aforementioned practices and positions enhanced the safety focus, the driver still remained the companys view
on safety. The company was successful in promoting an inclusive culture that encouraged proactive behaviors and
observations on an everyday basis. Figure 3 illustrates the growth and fostering of the safety culture under the operators
guidance by measuring input into key processes such as the STOP program. This culture has been successful in
accomplishing an industry-leading safety performance as shown in Figure 4.

Equipment management
.
The main SPAR deck provides housing for the DES which is comprised of the derrick, drawworks, rig floor, shaker and
minimum pit storage. The DES package utilizes almost half of the SPAR top deck area, leaving the remaining deck area for
the offline scope of work. Managing equipment on board the SPAR versus the support tender was important for several
reasons which include: 1) proximity to the wellhead for pressure operations such as riser dewatering, 2) hydrocarbon
handling on the top deck was less complex than transfer of hydrocarbons across the water gap and hydrocarbon zoning issues
onboard tender, 3) cased hole logging across the water gap would interfere with highline operations and independent vessel
movement would require compensation. The other challenge for putting the equipment on the SPAR was the limited deck
loading for heavy welltest hydrocarbon-bearing vessels and nitrogen tanks as well as a deck load rating range from 5kpa to
the maximum of 15kpa. The welltest surge tank load required building spreader beams to distribute the load. Also, the
nitrogen tanks had to be placed inside the outer deck beams. For safety management these deck areas with low loading
criteria were marked with paint to heighten the awareness. Figure 5 illustrates the equipment placement and tight working
areas and the need to honor safe egress pathways.

Another aspect that was taken into consideration in spotting equipment was the maximum overhead rig displacement at any
time during rig positioning. Several rig positioning simulation runs were conducted to access rig movement in relation to
interfaces with completion equipment at various locations. Crane lifting capacity and access to it also was properly evaluated.
The crane design has incorporated completion equipment safe working load parameters.

Personnel on board

The additional offline activities required increased personnel to manage and conduct the activities. The tender housing
capacity was at 140, but the SPAR did not have any housing capability. This issue was not limited just to bed space, but also
to live raft capacity and personnel transfer between the SPAR and tender. A simple spreadsheet that identified the phases,
including both critical path and offline, was merged with one detailing personnel required for each phase. This planning tool
helped show the need for a standby vessel that housed the tender overflow personnel as well as the constructions
commissioning personnel. In addition, the live raft capacity onboard the SPAR was upgraded, the flotel was identified as the
field standby boat for emergency situations and a T-card system was developed to manage personnel. In total, a maximum of
172 personnel on board were managed during peak periods.

Simultaneous Construction Activities

To complicate matters, construction activities, including final platform systems commissioning and Fluid Transfer Line
(FTL) pull-in, were conducted simultaneously with drilling activities. The field construction was conducted via EPCIC
contracts and, within the contract, the company specified free and clear access during the installation and commissioning
phases of the fields infrastructure. As such, drilling and completions operations planned their business around construction
activities to minimize the impact on the EPCIC contractors work. Additional equipment needed on the SPAR topsides was
added to the mix, including a pipeline pull-in winch, pressure testing pump skid and commissioning work containers. Due to
the nature of the EPCIC contracts, this equipment was a late addition to the plan, but was quickly scheduled around and
incorporated. Another impact to completion activities was the installation of the FTL from SPAR to FPSO. This installation
required very close proximity of large construction vessels near the SPAR, impacting the ability to flow test (Figure 6a & 6b)
and clean up the completions, as well as diving operations for the final spool installations. A Hazard Identification (HAZID)
was conducted for the FTL which resulted in a simultaneous operations document identifying completion activities paired
against the FTL activities. This document, shown in Figure 7, illustrates activities that were prohibited, restricted, requiring
permitting, and not impacted. The document was used daily to manage the offshore installation as well as all important daily
communications between the responsible field representatives.

Offline Activities Planning and Execution

4 IADC/SPE 112869

Tubular Make Up and Racking Back

Rig design contributed to the success of offline activities achieved during the first batch of completions. Two areas worth
noting are the Offline Activities Cantilever (OAC) referred to in Figure 8. This system consists of two dedicated mouse holes
capable of handling various ranges of pipe, and an overhead crane mounted in the derrick which accommodated racking
tubulars on both the drillers side and the off-drillers side of the derrick. In addition, the OAC provides adequate space to set
up a power tong inclusive of a torque turn system.

The second design benefit worth noting is the sufficient space at the derrick fingerboard. The derrick configuration consisted
of two fingerboards (driller and off-driller sides), which can accommodate a maximum of 340 stands of tubulars. In achieving
the objectives, the driller side fingerboard had been assigned to accommodate completion tubulars as well as uncemented
through drill pipe. Meanwhile, the drill string including drill collars and heavy weight pipes were located on the off-
drillers side finger board.

One limitation of the OAC system is that the rig is unable to pick up pipe offline while tripping due to the interference of the
traveling block with OAC. Nonetheless, the nature of the completions operation itself allowed for offline tubular make up
during the circulation period for wellbore displacement to brine coupled with the termination of control lines to various down
hole equipment. These two activities generally do not involve traveling block movement and provided ample time to rack all
necessary tubing in the derrick without affecting critical path operations. The objective was to have enough stands to run
from end of string up to the mud line hanger packer (MLHP) section at which point the racking of stands continued while
terminating control lines at MLHP. On average, 30 hours of tubing racking time was accomplished per completion.

Tree Installation

Completion operations on the rig critical path at the SPAR ceased after the tubing hanger was landed and the back pressure
valve installed. The BOP was then nippled down and rig skidded to the next well. At this stage, the well was only about 70%
completed. The other 30 percent which included tree installation, riser dewatering, setting MLHP, jumper and umbilical
installation that will be explained in the following section had to be continued offline.

The ability to install the tree offline resulted in a huge saving of rig time, especially the time taken in terminating the control
lines at the wellhead exit blocks. These exit blocks contain a maximum of eight control lines requiring terminations. It is a
tedious process and time consuming operation that averages 60 hours to complete.

Before skidding the rig to the next well slot, the tree was lowered down via the empty well slot and temporarily rested on the
Top Tensioner Riser (TTR) deck. The lifting devices underneath the rig sub-structure (BOP chain hoists, master skid cranes
and air tuggers) and at the wellbay (Figure 9) were used for handling purposes and greatly assisted in a smooth operation.
After completion of control lines terminations, all lines were successfully tested. The tree was then lifted with the
underneath crane and landed correctly on the wellhead. The slickline was rigged up offline underneath the rig sub-structure to
retrieve the one way check valve and, subsequently, to install the tree test plug. The whole tree testing process also was
conducted independently from rig activity. The tree installation was completed with the final pulling of the tree test plug with
slickline.

Riser dewater and Mudline Hanger Packer (MLHP)

During the basis of design, emphasis was placed on the completion design optimizing installation times and delivering
reliable highly productive completions. The coupling of the riser dewatering aspects with the mudline hanger packer setting
features is a good example of this. Early flow assurance work identified the need to maintain a nitrogen-filled riser annulus to
be maintained at a 100 psi pressure. Another Kikeh field specific aspect was the lack of gas lift requirement for the dry tree
wells due to the reservoir fluids being near bubble point pressure. Most SPAR developments have a dual string from mudline
to surface for gas lift and, thus, the dedicated string also serves to monitor the annulus below the mudline hanger packer. The
unique situation at Kikeh drove the concept to use the dewatering line for two operations: 1) prior to setting the packer
elements it functions as an annulus dewatering line and 2) after setting the MLHP, it functions to monitor, vent and fill the A
annulus below the MLHP. The MLHPs ability to be set via control line pressure aided in conducting both operations offline.
The packer was designed with eight control line pass features, one of which served as the riser annulus dewatering line
coupled with A annulus monitoring. In addition, the tubing hanger was outfitted with a circumferential groove and exited
the side of the tubing wellhead to provide long-term annular monitoring and dual barrier protection. A second control line
pass-through served as the function for the wax downhole injection line. The wax line was subsequently identified as the best
control line to conduct MLHP setting operations via a y-block and rupture disk arrangement (Figure 10). The design and
IADC/SPE 112869 5

arrangement of old technology in a new configuration resulted in cost saving of dual string above the mudline and conduct
both dewatering and MLHP setting operations offline.

Implementation of both aspects went very well. The riser dewatering was conducted first. Equipment was rigged up on the
top SPAR deck in the southeast corner of the platform. During the construction phase a dedicated nitrogen line was added
from SPAR top deck to the edge of the wellbay so the on-deck rigging was limited to a hard piped jumper to the permanent
nitrogen line. In the wellbay, lines were run to side entry valves on the tubing hanger as seen in Figure 11. The dewatering
was conducted by pressuring the annulus to 4500 psi and taking returns via the control line, allowing pressure to bleed
back to 3000 psi before repressuring. The entire process varied per well, but averaged 90 hours per well.

The MLHP packer setting was a simple hand pump operation via the wax control line exit block on the tubing wellhead. The
packer had an anti-preset function, thus the procedure called to pressure the line to 1500 psi to shear the anti-preset pins and
monitor for slight pressure drop as the packer setting chamber filled with control line fluid. Then, control line pressure was
increased to 4500 psi and held for 30 minutes which sheared the element and slip setting pins and insured packer elements
were fully energized. Subsequently, the packer was tested via the A annulus monitoring line. Pressuring a large annulus
volume via the line was time consuming; nonetheless, the operation was successful completed in an average time of 12.5
hours.

Clean up and flow test of well

The SPAR does not have processing capacity and is, in essence, a well support device. As such, each well is required to be
cleaned up and flow tested before handover to production. The main objectives of this operation were to clean the well so that
sand, perf debris, and emulsion would not enter the FTL and protect the seal units within the FPSO from debris. The welltest
equipment spread consisted of the usual kit including separator, surge tank, multiphase flowmeter, flare booms, deluge pump
and piping, and chemical injection pumps, (Figure 6b) Identifying the need to clean up the wells early in the project allowed
installation of a permanent well test line from the test manifold on the lower deck to the top deck where the equipment
resided Additionally, a porch was installed to hang the water deluge pump from the lower deck and plumbed to semi-
permanent deluge piping on the top deck. All equipment was rigged and testing days in advance of its need.

The key elements to engineer the flowtest activity safety were heat radiation, noise radiation and chemical handling. Flow
rate simulations at maximums rate of 7500 bopd were conducted utilizing FlareSim software without deluge protection and
then various deluge sensitivities were run to insure heat readings were less than 440 BTU/hr/sqft at all locations on the
topside. (See heat radiation projections without and with heat suppression in Figure 12a (heat radiation); Figure 12b (surface
temperature), Figure 12c (heat radiation with suppression), and Figure 12d (surface temperature with suppression.) Thirty-
five thousand (3,500) usgpm (120,000 bwpd) were pumped during the test and constant monitoring devices detected no more
than 126 deg F and 252 BTU/hr/sqft during the actual flows. Figure 12e depicts actual readings from the flowtest. Chemical
injection of methanol and wax inhibit, both highly volatile substances, were handled via the permanent production chemical
injection system into the tree injection system. This eliminated the need for large quantities of chemical as well as
pumps/piping on the top deck. One small injection site was required for initial start up, but the quantities handled were
minimized and shut in as soon as surface temperatures allowed. Salt safe barriers were put in place to identify any methanol
hazards. Another critical element, more important to safe operations on the rig floor, was noise radiation. Noise radiation
simulations also were conducted prior to going offshore (Figure 12f and Figure 12g.) Proper monitoring during the actual test
was essential to insure noise levels were within OSHA standards as well as the proper hearing protection was worn at all
times. Clear instructions were given to the rig floor to slow operations and insure all instructions were clearly understood
before every move. With these safeguards in place, the rig floor operated continuously throughout the clean-up period where
the actual flow time averaged 15 hours and maximum flow rates of 4,000 BOPD and 4.3 MMSCF of gas for the last five
hours. Operational decisions, made on board jointly by production, construction and drilling supervisors, were critically
important to the safety of all.

Cement Bond, Riser Baseline and Reservoir Evaluation Logging

Drilling and completion operations were carried out in batch sequence, ranging from a minimum of four to a maximum of six
wells. The batch operation created opportunities for some logging activities to be carried out off the rig critical path
operation. At least three types of logging were identified for the operations namely cement bond, riser baseline and
reservoir saturation evaluation logging.

In optimizing the operation, the cement bond and riser base line logging were conducted using the same logging tool. The
tool just needed to be switched to the right mode for the different types of logging objectives. The cement bond and riser
baseline logs consisted of approximately 15 to 16 hours of logging; therefore, conducting this operation offline resulted in a
6 IADC/SPE 112869

significant reduction in completion time. To conduct reservoir evaluation logging offline was absolutely a correct decision.
Normally, the time taken to complete the work averages from 48 to 65 job hours per well depending on the reservoir interval
due to the slow and multiple logging passes which are required to properly evaluate the reservoir section. The
accomplishment on Kikeh also provided significant cost savings.

Several challenges were identified that could jeopardize the success of this operation. One of the most important challenges
was to ensure the daily rig operation was not interrupted. The other challenge was the ability to rig up the wireline sheave
wheel and its associated equipment underneath the rig sub-structure (between/outside the master skid). An assessment was
conducted to evaluate the best and safest technique. The usage of beam clamps and a specially made A Frame derrick
(Figure 13) was selected and worked well in this operation.

Utilizing a portable logging unit instead of the main drilling logging unit already located on the tender also was a wise
decision. Since high line or flying fox activities for equipment transportation are common on tender rig operation, the
usage of a drilling logging unit located on the tender could be subject to many interruptions. The common problem is the
wireline cable and high line that may run across each other could result in unsafe operation. The operation also could easily
be interrupted with the rig and well location. The additional cost impact of bringing a portable logging unit was minimal
compare to the value of saving rig time.

The success of this operation also can be governed by the well sequence. The sequence took into account the requirement of
the offline logging operation in respect to rig operations. In addition, the short time taken to skid the rig helped in juggling
well sequence that created more room for offline logging operation.

Installation of Jumper and Umbilical

The installation of flowline jumper and umbilical were conducted with the assistance of the completion team. Handling was
the main challenge, as the lines are very sensitive to bend radius, unnecessary torque, induce strain, damage to outer sheath
and internal components. These flexible lines were transported offshore in shipping crates and coiled. They were not taken
out until they were ready for installation since coiling them back onsite would not be possible. The team was always
reminded to take extreme precaution and strictly follow installation procedures to avoid any damage.

Installation was a very straightforward process. Lifting devices underneath the rig were sufficient and the correct handling
tools were identified upfront. The installation commenced from the SPAR side with both lines being terminated before
commencement of the completion operation. Once tree installation was completed, the tree side termination for umbilical and
jumper followed and were completed. The hang-off frame for both lines was built on the tree work platform and made the
installation smoother (Figure 14).

The installation of umbilical hydraulic cans, plumbing hydraulic lines and electrical work were then continued until fully
completed. The testing lines and valves were rigged up on top of the tree, and then the flowline jumper, production lines and
test equipment were tested at the required pressure using rig or cement pump. All these activities were successfully carried
out for all five wells without major problems.

Cycling and Opening of Formation Isolation Valve (FIV)

The Formation Isolation Valve (FIV) is part of the completion design that serves two primary purposes: 1) as a mechanical
fluid loss barrier to prevent losses to formation and formation damage, 2) as a well control barrier since it is a bidirectional
downhole ball valve set above the top perfs within a packer assembly. The design of this valve incorporates a trip saving
device such that the valve can be opened by pressuring up to a designed pressure and then bled off. This pressure- up, bled-
off sequence was conducted 15 times and then the valve opened. Operationally, opening the valve was easy to achieve by
rigging the cement unit to the tree and performing the pressure cycles. The advantage is two pronged: 1) it provided a second
mechanical barrier, eliminating the need for a slickline plug while the BOPs were nippled down and the tree was installed; 2)
time savings, as these pressure cycles are time consuming. On the average, 16 hours of work was saved.

Production Riser Tensioner Installation and Commissioning

Installation of the Production Riser Tensioners (PRTs) was not always conducted offline as it was strictly dependant on rig
position relative to crane access within the slot. The PRTs, weighing eight tons, were quickly installed utilizing the platform
cranes and lowered through the well hatch to the top tensioner riser deck (TTR). Before lowering the PRT, a work access
platform was installed so that the PRT could easily be pinned to the TTR deck (Figure 15). It took a matter of minutes to
IADC/SPE 112869 7

install, but the real time savings came from plumbing of the low and high pressure accumulator lines to the control and the
final 24-hour pressure test. An average of 34 hours was saved per well for plumbing and commissioning of the PRT.

Results and Conclusions

Early focus in the design phase to optimize time and identify offline activities was critically important to accomplishing the
tasks safely and efficiently. Planning, involvement by both offshore and onshore teams before, during, and after the phase
coupled with a can do culture fostered incredible success. Figure 16 identifies the logged offline time for each well and
each event, and it illustrates the range of efficiencies for offline events. The time range is mostly affected by some of the
aforementioned challenges. Other activities such as construction, Personnel on Board (POB), critical path work and priority
influenced each tasks efficiency. Overall, Figure 17 shows the results of the first completion campaign were effective in
reducing critical path time and the offline time was as much as the critical path time. The result was delivering world class
completion times with zero Recordables or LTAs by maximizing the utilization of all assets: equipment, people and process.

Acknowledgments

The authors want to thank Murphy Oil Corporation and Petronas for giving us permission to publish this paper. We also want
to thank all of the operating and service company personnel who have contributed to the comprehensive planning and
execution of the successful deepwater development program.

References
1. J. Burman, K. Renfro, and M. Conrad, Marco Polo Deepwater TLP: Completion Implementation and
Performance 2005 SPE Annual Technical Conference and Exhibition, Dallas, USA, 9-12 October 2005

2. K.I Torgersen, A.A. Weiss, Simops: Coiled Tubing in Parallel With Rig Activities 2006 SPE/ICoTA Coiled
Tubing and Well Intervention Conference and Exhibition, The Woodlands, TX, USA, 4-5 April 2006

3. W. Randall Reinhardt, Roger N.W, Luke F. E, Stephen C.A., Magnolia Deepwater Development Striving for
Best In Class Drilling Performance, SPE/IADC Drilling Conference, Amsterdam, The Netherland, 23-25 February
2005.
8 IADC/SPE 112869

Appendix

Figure 1: Kikeh Well Completion Schematic

Flatpacks Clamps
Configuration Thead Configuration
# Equipment Description OD (in) ID (in)
1
Box Pin
2
FMC Tubing Hanger N/A 4-1/2" 12.6# Vam Top HC 13.481 4.798
Ref: I 3
OD 16.75 mm 1 Pup Joint Pin by Pin N/A 4-1/2" 12.6# Vam Top HC 13.481 4.798

2 Completion Tubing 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.876
Y-Block
Ref: II

3 4-1/2" Nipple "AAS" 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.812
4
4 Mud Line Packer XMP-CL 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 8.300 3.806

5 Completion Tubing 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.876
5
6 DCIN CI Mandrel - Wax Inhibitor, 3/8 CL 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 6.150 3.846
6
7 DCIN CI Mandrel - Methanol, 1/2 CL 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 6.150 3.846
7
8 Completion Tubing 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.876
8
TRM-4HP-DS 3.750" ATN Profile (1/4"
9 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 7.923 3.750
CL)

Ref: III 9 10 Completion Tubing 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.876
21 mm

13 mm

Solid Gauge Mandrel f/ NPQG Single

10 11 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 5.800 3.864
Gauge TEC 1/4" Cable

DCIN CI Mandrel - Scale Inhibitor, 3/8

12 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 6.150 3.846
11 CL

13 4-1/2" Nipple "ATN" 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.688
12
14 9-5/8" x 4-1/2" XMP-CL 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 8.300 3.806

13 15 Tubing Isolation Valve 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 8.000 3.700
Ref: IV

11 mm
16 4-1/2" Nipple "SSA" 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.688
11 mm

17 Completion Tubing 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.876
14
18 Pup Joint 4-1/2" 12.6# Vam Top HC 4-1/2" 12.6# Vam Top HC 4.906 3.876

19 No Go Locator w/one bonded seal 5-1/2" 17# Vam Top HC 5.459-8 Stub Acme 6.200 4.750
15
19 6" Seal Units without seal 5.459-8 Stub Acme 5.459-8 Stub Acme 5.960 4.750

16 19 SAGS 5.459-8 Stub Acme N/A 5.940 4.900

H-145 Future
Intervention
17

18
19

20

9-5/8" x 6" Quantum Max Packer S/N: HYF-1475

20 6.500-4 LH Square 7.188-6 Stub Acme 8.300 6.000
Set WL Measurement

21 21 FBSD 7.125-8 Stub Acme 7.125-8 Stub Acme 7.680 6.010

22 22 4-1/2" Nipple, PCE ATN 4-1/2" 12.6# VAM TOP HC 4-1/2" 12.6# VAM TOP HC 4.906 3.562

23 Formation Isolation Valve 4-1/2" 12.6# VAM TOP HC 4-1/2" 12.6# VAM TOP HC 7.630 3.700
23
24 Fluid Isolation Sub 4-1/2" 12.6# VAM TOP HC 4-1/2" 12.6# VAM TOP HC 4.906 3.958

25 Mule Shoe 4-1/2" 12.6# VAM TOP HC N/A 4.906 3.958

24
25
IADC/SPE 112869 9

Figure 2: West Setia at SPAR Kikeh location

10 IADC/SPE 112869

Figure 3: Murphy / West Setia STOP Card Program and Participation

4000 120.0
Corrective Actions
104
Safe Acts Observed
3500 101
STOP Cards per Day (Average) 100.0
93

3000
84 80
77 80.0
2500

1230
1677

1034
63

970

975

654
2000 60.0

1500
43 1406
40.0

28 28

1849
1000

1797
626

1644
1560
1535

1516
20.0
483
525

13
500
168 231

564

552
374
346

0 0.0
Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

Figure 4: Murphy / West Setia Safety Performance

HSE (INCIDENT) STATISTICS - WEST SETIA 2006/2007

Spills First Aid

Medical Treatment (MT) Restricted Work or Duty Case (RWorDC)
Lost Time Accident (LTA) Near Miss
IADC TRIR Industry Average Offshore Drilling West Setia TRIR 12 Month Rolling Average

7 7
6 5.15 5.15 6
5 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 4.47 5
4 4
3 3
2 2

1 0 0 0 0 0 0 0 0 0 0 0 1
0 0
Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07
IADC/SPE 112869 11

Figure 5: Equipment placement not compromising the safe egress pathways

12 IADC/SPE 112869

Figure 6a: Limited deck space for major offline activities

Figure 6b: Placement of winch for pulling pipe line (GAP) and well test equipment
Figure 7: SIMOP Matrix for Simultaneous Construction Activities

SIMOPS Matrix
FTL Installation - DTU Well Completions Matrix
1/30/2007 EACH OF THE 4 PRODUCTION WELLS
All activities within 500m of the DTU listed on the SIMOPS Matrix Install
Clean Well Bore Perforate Well Run Well Tubing Install Wellhead & Tree Offline Dewatering, Cleanup and Test Well
are covered by the DTU PTW System BOP

1.3d

3.3d

4.1d

7.0d

3.2d

3.9d
1.3d 3.3d 4.1d 7.0d 3.2d 3.9d offline
NOTE: Intended for Murphy Completion Team Planning
only

Offline Dewatering, Cleanup and Test Well

LEGNED:

RED (X): Prohibited combination of activities

Set Packer, Perforate & Displace HC

Set XMPP Production Packer & Test

Set MLHP & Test, Reset Tensioner

Shut In, Flush Line & Move to Next

Space Out & Install Tubing Hanger
YELLOW (R): Restricted combination of activities

Displace CaCl & Chemical Wash

Recover WB & MU Compl String

Rig Up N2 Surface Line & Test

Rig Up Well Test Equip & Prep

Retrieve BPV, Set TTP & Test
RIH TCP Guns to Perf Depth

Retrieve TTP & RD Slickline

Displace Prod Riser with N2

Install BOP on Tubing Head

Land Tubing Hanger & Test

GREEN (" "): Non Conflicting

POOH with Clean out BHA

Install Wing Outlet Bracket

Install Wellhead & Tree

Install Umbilical & Jumper

Skid DES & Position DTU

RIH & Test Compl String

Terminate Control Line

Make Up, RIH & Clean

POOH with TCP string

M/U & RIH TCP Guns

Displace Packer Fluid

ORANGE: Installation activities at the DTU or affecting the

Set BPV on Slickline

ND BOP & NU Tree

Shut Down & Bleed

Circulate Open TIV

Circulate Open FIV

Run Well Tubing
Clean Well Bore
DTU;

Perforate Well
NOTE: All orange activities to be permitted (Murphy PTW
Install BOP

Test SCSSV

Total Days

Total Days
System)

Flow Well
BLUE: Completion activities

Activity No: # I 1 2 I2 II 3 4 5 I1 III 6 7 8 9 II IV 10 11 12 13 14 15 16 17 18 19 20 V V 21 22 23 24 25 V1V2 V3 VI 26 27 28 29 30 31 32

# Hr 3 27 16 45 17 43 13 20 23 52 30 13 13 13 7 9 13 4 7 7 28 21 7 4 16 19 7 51 7 3 5 15 5 3.9

A: Pre-Work on DTU (MUR / OTS) 5.0d A R R X R R X R X R R R X X X

a1 Install Winch & HPU on DTU Topsides 48 R 16 R 16 X9 R 16 X7 X7 X7
a2 Install TD Sheave on DTU Topsides 24 R 16 R 16 X9 R 16 X7 X7 X7
5.0d

a3 Install TU Sheave on DTU Deck 7 (Hull) 24 R 16 R 16 X9 R 16 X7 X7 X7

a4 Check DTU Installation Aids/Load Test 24 R 12 R 16 R 16 R 16 R 16 R 11, 12 R 11, 12 R 11, 12 X7 X7 X7
0
B: Hook Up FTL Chains 10.0d B X X X R R R R X R R X R R R R R R R R R R R R R X X X X X X
b1 Add 30m chain & ROV Surv. (NI ops) 19 R 1, 2 X7 X7 X7
b2 Mobilize Spread to Bintulu 12
b3 Launch FTL GAP 33
10.0d

b4 Tow FTL GAP 69

b5 Hook Up & Lower Chains at DTU 33 R 13, 1, 2 R 13, 1, 2 R3 R3 R3 R3 R3 X 14, 3, 6 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 X7 X7 X7
b6 Hook Up Chains at FPSO 66 X 17, 4 X 17, 4 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 X4 X7 X7 X7
b7 Install Clump Weights at DTU Towhead 8 R 13, 1, 2 R 13, 1, 2 R3 R3 R3 R3 R3 R5 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 R3 X7 X7 X7
b8 Depart Field to Labuan 0
0
C: Install Jumpers 12.3d C R R X X X X X X
c1 Transit & Mobilize Equip ex Labuan 120
c2 Clean Towhead at FPSO 12
c3 Install Jumpers at DTU end 59 R 13, 1, 2 X 14, 3, 6 X7 X7 X7
12.3d

c4 As-built Survey of Jumpers at DTU 2 R 13, 1, 2 X 14, 6 X7 X7 X7

c5 Install Jumpers at FPSO end 70
c6 As-built Survey of Jumpers at FPSO 2
c7 Departure to Labuan (NI) 30
0
D: Install UM10 Umbilical and OBT 4.8d D R R X X X X X X
d1 Install UM10 FPSO to DTU 96 R 13, 1, 2 X 14, 6 X7 X7 X7
4.8d

d2 Install OBT at FPSO 20

d3 Depart Field to Labuan 0

0
E: Diving & Pre-Comm. (NO DTU ROV Ops allowed ) 15.1d E X X R R R R R X X X X X R R R R R R R R R R R R X X X X X X X X X X X X X X
e1 Transit & Mobilize Equip ex Labuan 30
e2 Complete Spools at DTU Hull (60m) 91 X 10 R6 R6 R6 R6 X8 X8 X8 X8 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 X7 X7 X7
15.1d

e3 Complete Towhead at DTU (190m) 92 X 10 R6 R6 R6 R6 X8 X8 X8 X8 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 X6 X6 X6 X6 X6 X6 X6 X6 X6 X7 X7 X7

e4 Complete Towhead at FPSO (190m) 101
e5 Pre-Comm FTL GAP (pig & leak test) 48 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6 R6
e6 Decompress Divers (9 days) 0
0
F: FTL GAP Completion (all done by ROV ) 3.0d F X R R X R X X X X
f1 DELETE 11
f2 As-built Survey of FTL GAP, etc 12 X7 X7 X7
3.0d

f3 Demobilize Instn Spread (7 days) 0

f4 Remove Installation Aids from DTU 48 R 16 R 16 X9 R 16 X7 X7 X7
Total Days (A to F) 50.2d
Total SBM Field Install. Time (B to E) 30.1d
Time to get FTL to depth 5.2d
Figure 8: The placement of Offline Activities Cantiliver (OAC) and the Overhead Crane
IADC/SPE 112869 15

Figure 9: Lifting gears at wellbay and underneath rig sub structure assist offline installation
16 IADC/SPE 112869

Figure 10: Illustration of Y-Block and Rapture disk design for MLHP setting

3/8 Control
Dewatering line line

3/8CL

Rupture Disc

Control line
(to set the Packer)
3/8 Control line

1/4CL 3/8CL

Y BLOCK

Mudline Hanger Packer - Setting

Figure 11: Nitrogen Dewatering Treating Line Set Up

COILED TUBING & NITROGEN

RIG: DTU (KIKEH FIELD)
DATE: 08/02/2007
REV: 2
Riser Dewatering Treating Line Rig-up Diagram
BLEED OFF
P & ID RISER EVACUATION
WITH NITROGEN
PRV
V4
4600 psi LEGEND
R-24
V3 P Pressure Relief Valve
Nitrogen
V2 C1 V1 Converter Plug Valve

Butterfly Valve
MAIN DECK Gate Valve

Check Valve

High Pressure Line

Permanent HP Flexible Hose
Nitrogen Line 2500 psi Hose (Return)

2 Permanent Line

T Temp Gauge

To DES Tank Centrifugal Pump

P Pressure Gauge

Suction Line
PSH
R-24 Pressure Safety High
BX-152
BX-152 Plug Cap

Extent Line
V5

V8

V6

V7

BLEED OFF

WELL BAY
IADC/SPE 112869 17

Figure 12a: Heat Radiation Without Suppression

Heat Radiation Without Suppression

2000

1800

1600

1400
Heat Radiation Btu/hr/ft2

1200 Stack Base

Crane
Corner of Rig
1000
Tad Lifeboat
TAD rig corner
800 HeliDeck

600

400

200

0
1 2 3 4 5 6 7 8
7500 BOPD 7500 BOPD 7500 BOPD 7500 BOPD 5000 BOPD 5000 BOPD 5000 BOPD 5000 BOPD
Cases
East Wind South Wind West Wind North Wind North Wind East Wind South Wind West Wind

Figure 12b: Surface Temperature Without Suppression

Surface Temperature Without Suppression

300.0

250.0

200.0
Temperature Deg F

Stack Base
Crane
Corner of Rig
150.0
Tad Lifeboat
TAD rig corner
HeliDeck

100.0

50.0

0.0
1 2 3 4 5 6 7 8
7500 BOPD 7500 BOPD 7500 BOPD 7500 BOPD 5000 BOPD 5000 BOPD 5000 BOPD 5000 BOPD
Cases
East Wind South Wind West Wind North Wind North Wind East Wind South Wind West Wind
18 IADC/SPE 112869

Figure 12c: Heat Radiation with Suppression

Heat Radiation With Suppression

400

350

300
Heat Radiation Btu/hr/ft2

250
Stack Base
Crane
Corner of Rig
200
Tad Lifeboat
TAD rig corner
HeliDeck
150

100

50

0
1 2 3 4 5 6 7 8
7500 BOPD 7500 BOPD 7500 BOPD 7500 BOPD 5000 BOPD 5000 BOPD 5000 BOPD 5000 BOPD
Cases
East Wind South Wind West Wind North Wind North Wind East Wind South Wind West Wind

Figure 12d: Surface Temperature With Suppression

Surface Temperature With Suppression

140.0

120.0

100.0
Temperature Deg F

Stack Base
80.0 Crane
Corner of Rig
Tad Lifeboat
60.0 TAD rig corner
HeliDeck

40.0

20.0

0.0
1 2 3 4 5 6 7 8
7500 BOPD 7500 BOPD 7500 BOPD 7500 BOPD 5000 BOPD 5000 BOPD 5000 BOPD 5000 BOPD
Cases
East Wind South Wind West Wind North Wind North Wind East Wind South Wind West Wind
IADC/SPE 112869 19

Figure 12e: Actual Heat and Noise Radiation Data

Figure 12f: Noise Radiation Simulation

20 IADC/SPE 112869

Figure 12g: Noise Radiation Simulation

IADC/SPE 112869 21

Figure 13: Showing A Frame, Beam Clamp and logging equipment

22 IADC/SPE 112869

Figure 14: Flowline jumper and umbilical line hook up to tree.

IADC/SPE 112869 23

Figure 15: Kikeh Production Riser Tensioner, control panel & plumbing route
24 IADC/SPE 112869

Figure 16: Offline time for each activity

Offline Breakdown
PS-14 PS-09 PS-24 PS-23 WS-10

12 10
42
12 83
42 38 10
23 60
6
52 6 6
135 72
54
24
37 12
50 30
24
Hrs

120
0 74
17
50 42
38
0
34 64
50 126 6
106 69
28 81
36
14 49
11
0
Install+Comm E-Log PU Install & Cycle Open Jumper/ Riser Set MLHP Displace Well Test
PRT Tubulars Test Tree FIV Plumbing Dewatering WAX line & Clean Up
Activity

Figure 17: Overall Time for both online and offline activities

40.0 C ompletions Onlinevs OfflineD ays

O fflineDays
35.0
O nlineDays

30.0
17.9
25.0 16.3
16.4
14.0
20.0 12.7

15.0

10.0 17.5
15.5 14.3 13.0 13.1
5.0

0.0
P S 14 P S 09 P S 24 P S 23 WS 10