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M AY 2 0 1 7 • V O L U M E 6 9 , N U M B E R 5 JOURNAL OF PETROLEUM TECHNOLOGY

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CONTENTS
Volume 69 • Number 5

14 GUEST EDITORIAL • ARE YOU READY


FOR THE OILFIELD RECOVERY?
If history is any guide, after every oil bust comes a recovery.
Focusing on talent acquisition and retention now will ensure a
smooth, safe, and financially rewarding recovery.
27 RUSSIA’S PUSH FOR OIL AND GAS GROWTH STUNTED
BY OVERSUPPLIED MARKETS
Facing international trade sanctions and low oil prices, Russia has
demonstrated impressive growth in its oil and gas industry, including
its adding of production in east Siberia, new pipelines to China, and
a liquefied natural gas facility in the Arctic.
32 NEW AUTOMATED HYDRAULIC FRACTURING TECH
CUTS TIME AND WORKFORCE NEEDS
A new spread of stimulation equipment from the world’s largest
service company demonstrates the latest significant step to creating
a more automated oil field.
The Luján de Cuyo refinery stands
before the Andes mountains in the
34 OPTIMISM AND ACTIVITY RISING Argentine province of Mendoza. The
IN THE VACA MUERTA facility is run by YPF, which is also
Shale explorers in Argentina are reporting improved efficiency and the leading explorer of the country’s
plan to step up horizontal drilling efforts this year to boost the promising Vaca Muerta shale, viewed
by many to be the world’s next
country’s natural gas production.
major unconventional resource play.
Source: Getty Images.
40 INDIA ASKS BIG OIL COMPANIES:
“WHERE DO YOU WANT TO DRILL?”
India will test whether it can reach its ambitious goal of reducing
oil and gas imports by 10% by 2022 with an upcoming auction of DEPARTMENTS
oil properties.
6 Performance Indices
43 SPE BOARD NOMINATIONS: 8 Regional Update
2019 PRESIDENT AND 2018 DIRECTORS 10 President’s Column
Sami Al-Neaim has been nominated for 2019 SPE President, and
12 Comments
eight other members were nominated to fill vacancies on the 2018
SPE Board of Directors. 16 Technology Applications
19 Technology Update
46 MANAGEMENT • SUSTAINABILITY: A BUSINESS 22 E&P Notes
IMPERATIVE, NOT A MORAL SACRIFICE
87 People
Sustainability has emerged as the most critical imperative of the
century. Current incremental changes in sustainability are not 88 SPE Events
sufficient. What is needed is a fundamental shift in the way business 89 SPE News
decisions are made. 91 Professional Services
92 Advertisers’ Index

An Official Publication of the Society of Petroleum Engineers. Printed in US. Copyright 2017, Society of Petroleum Engineers.
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TECHNOLOGY FOCUS
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49 DEEPWATER PROJECTS
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Morten Iversen, SPE, Well Integrity Section Head, Karachaganak
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50 Deepwater-Structure-Installation Challenges Offshore Australia your well.
53 Deepwater Hydraulic Well Intervention: A Creative Hybrid Solution
56 Sustainable Building Blocks for Cost-Effective Deepwater-Field
And like all good
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60 INTELLIGENT FIELDS TECHNOLOGY
right there when you
John Hudson, SPE, Principal Production Engineer, Shell need us.
61 Pseudodensity Log Generation by Use of Artificial Neural Networks VISURAY’s revolutionary VR90®
downhole X-ray diagnostic service is
64 Cointerpretation of Distributed Acoustic and Temperature Sensing
for Inflow Profiling now available in Europe, the Middle
East, and North America. In the North
68 Efficient Optimization Strategies for Developing Intelligent-Well Sea, our groundbreaking technology
Business Cases has been qualified by a major operator.
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71 MULTILATERAL/EXTENDED-REACH WELLS condition, you can count on us to see
Bernt S. Aadnøy, SPE, Professor of Petroleum Engineering,
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University of Stavanger
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72 A Methodology for Multilateral-Well Optimization to us is all it takes to put your well
back into operation. You save time and
74 Overcoming Challenges and Optimizing Liner Deployment money, while VISURAY saves the day.
in Long Laterals

76 Next-Generation High-Torque Connection for Extended-Reach Wells visuray.com


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78 CEMENTING/ZONAL ISOLATION Conference
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79 Real-Time Monitoring of Piezoresistive Smart Cement


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82 Investigating the Benefits of Rotating-Liner Cementing


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85 Cement Placement With Tubing Left in Hole


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The complete SPE technical papers featured in this issue are available
free to SPE members for two months at www.spe.org/jpt.
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Introducing PulseEight

SPE BOARD OF DIRECTORS


Wireless Intelligent
OFFICERS SOUTH AMERICA AND CARIBBEAN
Anelise Quintao Lara, Petrobras Completion for the
2017 President
Janeen Judah, Chevron SOUTH, CENTRAL, AND EAST EUROPE
Matthias Meister, Baker Hughes
'LJLWDO2LOĆHOG
2016 President
Nathan Meehan, Baker Hughes SOUTH ASIA AND THE PACIFIC
Salis Aprilian, PT Badak NGL
without limits
2018 President
SOUTHWESTERN NORTH AMERICA
Darcy Spady, Broadview Energy
Libby Einhorn, Concho Oil & Gas
Vice President Finance
WESTERN NORTH AMERICA
Roland Moreau, ExxonMobil Annuitant
Andrei Popa, Chevron
REGIONAL DIRECTORS
TECHNICAL DIRECTORS
AFRICA
Adeyemi Akinlawon, Adeb Konsult
DRILLING
Jeff Moss, ExxonMobil
CANADIAN
Cam Matthews, C-FER Technologies HEALTH, SAFETY, SECURITY, ENVIRONMENT,
AND SOCIAL RESPONSIBILITY
EASTERN NORTH AMERICA
Trey Shaffer, ERM
Joe Frantz Jr., Range Resources
MANAGEMENT AND INFORMATION
GULF COAST NORTH AMERICA
J.C. Cunha
J. Roger Hite, Inwood Solutions
COMPLETIONS
MID-CONTINENT NORTH AMERICA
Jennifer Miskimins, Colorado School of Mines
Chris Jenkins, Independent Energy Standards

MIDDLE EAST PRODUCTION AND FACILITIES


Khalid Zainalabedin, Saudi Aramco Hisham Saadawi, Ringstone Petroleum Consultants

NORTH SEA RESERVOIR DESCRIPTION AND DYNAMICS


Karl Ludvig Heskestad, Aker BP Tom Blasingame, Texas A&M University

NORTHERN ASIA PACIFIC DIRECTOR FOR ACADEMIA


Phongsthorn Thavisin, PTTEP
Dan Hill, Texas A&M University
ROCKY MOUNTAIN NORTH AMERICA
Erin McEvers, Clearbrook Consulting AT-LARGE DIRECTORS
RUSSIA AND THE CASPIAN Khaled Al-Buraik, Saudi Aramco
Anton Ablaev, Schlumberger Helena Wu, Santos Ltd.

JPT STAFF The Journal of Petroleum Technology® magazine is a


registered trademark of SPE.
SPE PUBLICATIONS: SPE is not responsible for any
Glenda Smith, Publisher statement made or opinions expressed in its publications.
John Donnelly, Editor
EDITORIAL POLICY: SPE encourages open and objective
Pam Boschee, Senior Manager Magazines discussion of technical and professional subjects per-
tinent to the interests of the Society in its publications.
Chris Carpenter, Technology Editor Society publications shall contain no judgmental remarks
or opinions as to the technical competence, personal
Trent Jacobs, Digital Editor character, or motivations of any individual, company, or
Anjana Sankara Narayanan, Editorial Manager
group. Any material which, in the publisher’s opinion, One tool. Eight applications:
does not meet the standards for objectivity, pertinence,
Joel Parshall, Features Editor and professional tone will be returned to the contribu-
tor with a request for revision before publication. SPE 3UHVVXUH7HPSHUDWXUH3URĆOLQJ
Stephen Rassenfoss, Emerging Technology Senior Editor accepts advertising (print and electronic) for goods and
services that, in the publisher’s judgment, address the Interval Control
Stephen Whitfield, Senior Staff Writer technical or professional interests of its readers. SPE
Adam Wilson, Special Publications Editor
reserves the right to refuse to publish any advertising it Multilateral Well Control
considers to be unacceptable.
Craig Moritz, Assistant Director Americas Sales & Exhibits COPYRIGHT AND USE: SPE grants permission to make :DWHUDQG*DV6KXWRII
Mary Jane Touchstone, Print Publishing Manager up to five copies of any article in this journal for personal
use. This permission is in addition to copying rights grant- 5HPRWHEDUULHUIRUPXOWLVWDJH
David Grant, Digital Publishing Manager ed by law as fair use or library use. For copying beyond IUDFDSSOLFDWLRQV
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Laurie Sailsbury, Composition Specialist dealing with the Copyright Clearance Center (CCC) must
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more than five copies or for any other special use of
copyrighted material in this journal. The above permis-
sion notwithstanding, SPE does not waive its right as
copyright holder under the US Copyright Act.
Canada Publications Agreement #40612608.

ZZZWHQGHNDFRP
PERFORMANCE INDICES

WORLD CRUDE OIL PRODUCTION+‡ HENRY HUB GULF COAST NATURAL GAS SPOT PRICE‡

THOUSAND BOPD
6
O PEC SEP OCT NOV DEC
5 USD/million Btu
Algeria 1350 1350 1350 1350
Angola 1768 1618 1698 1668 4

Ecuador 560 552 544 544 3


Gabon 210 200 220 220
2
Iran 4170 4190 4200 4220
Iraq 4480 4565 4645 4685 1

2017
APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR
Kuwait1 2960 2960 2970 2970
Libya 310 550 580 620
Nigeria 1943 1988 2023 1888
Qatar 1477 1507 1527 1527
Saudi Arabia1 10600 10590 10640 10540 WORLD CRUDE OIL PRICES (USD/bbl)‡
UAE 3216 3196 3226 3226
Venezuela 2200 2190 2180 2150
2017
TOTAL 35244 35456 35803 35608 AUG SEP OCT NOV DEC JAN FEB MAR

Brent 45.84 46.57 49.52 44.73 53.32 54.58 54.87 51.59

THOUSAND BOPD WTI 44.72 45.18 49.78 45.71 51.97 52.50 53.47 49.33

NON-OPEC SEP OCT NOV DEC


Canada 3849 3893 4013 3893
China 3887 3780 3915 3949 WORLD ROTARY RIG COUNT†
Egypt 493 492 491 491

Mexico 2146 2136 2104 2067


2017
Norway 1430 1766 1785 1706 REGION SEP OCT NOV DEC JAN FEB MAR
Russia 10729 10826 10832 10830 US 509 544 580 634 683 744 789
UK 832 769 957 969 Canada 141 156 173 209 302 342 253
USA 8567 8785 8874 8783
Latin America 189 183 181 184 176 179 185
Other2 13777 13512 13454 13599
Europe 92 87 97 99 98 107 94
TOTAL 45710 45959 46425 46287
Middle East 386 391 380 376 382 382 386
Total World 80414 81415 82228 81895
Africa 77 77 79 78 79 77 80
Asia Pacific 190 182 188 192 198 196 198

INDICES KEY
TOTAL 1584 1620 1678 1772 1918 2027 1985
Numbers revised by EIA are given in italics.
+
Figures do not include natural gas plant liquids.
1
Includes approximately one-half of Neutral Zone production.
2
Additional annual and monthly international crude oil production statistics WORLD OIL SUPPLY AND DEMAND‡
are available at http://www.eia.gov/beta/international/.
† Source: Baker Hughes.
‡ Source: EIA.
MILLION BOPD 2016 2017
Quarter 2nd 3rd 4th 1st

SUPPLY 96.41 97.15 98.34 96.89


DEMAND 96.08 97.55 97.58 96.57
Supply includes crude oil, lease condensates, natural gas plant liquids, biofuels, other liquids,
and refinery processing gains.

6 JPT • MAY 2017


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Copyright © 2017 Schlumberger. All rights reserved. 17-DRL-260704


REGIONAL UPDATE

AFRICA 4,500 B/D of oil. In DST 1b, a 27-ft zone was Preliminary estimates place the size of the
added and the well flowed at a maximum discovery between 36 Bscf and 180 Bscf of
Z Chevron has produced oil and gas rate of 4,200 B/D. The drillship used on the recoverable gas. Statoil, the operator with
from the main production facility at the well has been moved nearby for further an 85% interest in the wells, and DONG
Mafumeira Sul project offshore Angola. exploration and appraisal drilling. Cairn has Energy, which holds the remaining interest,
Situated 15 miles off Cabinda province a 40% working interest in the SNE-5 well will assess the discovery and other nearby
in 200 ft of water, Mafumeira Sul is with other interests held by ConocoPhillips discoveries and prospects regarding
the second-stage development of the (35%), FAR (15%), and Petrosen (10%). possible development.
Mafumeira field in Block 0. The new project
has a design capacity of 150,000 B/D of ASIA MIDDLE EAST
liquids and 350 MMcf/D of natural gas. Early
production began last October through a Z Cambodia was set to sign a revised Z Gazprom Neft has started up three
temporary production system. Ramp-up production-sharing contract with Kris new wells with overall oil production of
to full production is expected to continue Energy in late March for development 23,000 B/D at the company-operated
through 2018. The company is the project of an offshore field that would produce Badra field in Iraq. Field production has
operator with a 39.2% interest. Sonangol the country’s first oil. The company will reached 77,000 B/D, Gazprom Neft said.
(41%), Total (10%), and Eni (9.8%) hold the seek a partner in the investment before The company has a 30% interest in the
remaining stakes. proceeding with the project, which Kris field with other interests held by Kogas
expects will initially produce 8,000 B/D (22.5%), Petronas (15%), Turkish Petroleum
Z Total has started production from the of oil in the early 2020s. The company (7.5%), and the Iraqi Oil Exploration
Moho Nord deep project offshore the acquired its stake in the project in 2014 Company (25%).
Republic of the Congo. The company- from Chevron, which made a discovery
operated project has a production capacity 10 years ago but was unable to reach NORTH AMERICA
of 100,000 BOE/D. The field is being investment terms with the government.
developed through the tieback of 34 wells Kris later bought out the interests of Z Repsol and its partner Armstrong
to a new tension-leg platform, Total’s first Mitsui and GS Energy in the project. Energy announced that they have made the
in Africa, and to the new Likouf floating largest onshore conventional hydrocarbon
production unit, which holds oil processing discovery in the US in 30 years. The
EUROPE
facilities and is connected by pipeline to the Horseshoe-1 and -1A wells, drilled the winter
company’s Djeno onshore terminal. Total Z Statoil has made a discovery at of 2016–2017, confirm the Nanushuk play
has a 53.5% interest in Moho Nord with company-operated well 34/10-55 S in as a significant emerging play in Alaska’s
the remaining interests held by Chevron the North Sea, the Norwegian Petroleum North Slope, Repsol said. Contingent
(31.5%) and Société Nationale des Pétroles Directorate (NPD) said. Drilled from the resources in the two companies’ Nanushuk
du Congo (15%). Gullfaks C platform to a structure east blocks, identified from existing data, could
of the Gimle field, the well encountered amount to 1.2 billion bbl of recoverable
Z SDX Energy began drilling operations a total oil and gas column of 557 ft, of light oil, Repsol said. The company holds
in late March on the SD-1X well at its South which 196 ft are in sandstone with good to a 25% interest in the Horseshoe discovery
Disouq concession in Egypt’s Nile Delta very good reservoir properties and 32 ft and a 49% interest in the Pikka Unit, which
area. The well targets gas in the upper are in sandstone with moderate to good would be the play’s first producing field if
Abu Madi section and oil in the lower AEB properties, the NPD said. The discovery developed. Armstrong, the discovery and
and Abu Roash sections. Drilling operations holds an estimated 36 MMscf to 108 unit operator, holds the remaining interests
were expected to take 30 to 45 days. The MMscf of recoverable oil equivalents and in both.
company was granted a 6-month extension will be produced by a future Gullfaks C
to its initial exploration period, which will development well. Statoil has a 70% interest SOUTH AMERICA
run to 19 September. SDX said this would in the discovery, with the remaining share
allow adequate time to evaluate well results held by Petoro. Z President Energy reported that the
before deciding on additional exploration first workover of the previously producing
at the concession. Z Statoil also discovered gas at wildcat DP12 well at Argentina’s Dos Puntitas field
well 6507/3-12 and appraisal well has been completed on time and within
Z Cairn Energy said that oil and gas 6507/3-12 A about four miles east of the budget. The workover remedied a leak in
samples taken during logging and testing Alve field in the northern Norwegian Sea, the production packer and problems with
of the company-operated SNE-5 appraisal the NPD said. Well 6507/3-12 encountered a faulty jet pump bottomhole assembly.
well offshore Senegal indicate the presence a total gas column of 22 ft in Late In the process, the well received an acid
of oil of similar quality to that in previous Cretaceous sandstone with good reservoir stimulation and is achieving an initial
area wells. Drillstem test (DST) 1a flowed properties. Drilling on well 6507/3-12 A production of more than 120 B/D, which
from a 59-ft interval at a maximum rate of was halted because of technical issues. is in line with expectations. JPT

8 JPT • MAY 2017


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RISK AND REWARD

Decommissioning and Footprint Reduction


Janeen Judah, 2017 SPE President

From 2007–2010, I was president of in service pending decommissioning. Following those massive
Chevron’s Environmental Management storms, US and state regulators stepped up monitoring of shut-
Company. We were responsible for man- in platforms and began pushing operators to decommission and
aging end-of-life activities and environ- remove idle iron before the next major hurricane.
mental liabilities for the entire corpora- So how big is the problem? The industry consultancy IHS
tion. We removed platforms and pipe- Markit released its Offshore Decommissioning Study Report in
lines in the Gulf of Mexico, remediated November 2016, and its estimates of future spend are stunning,
old industrial sites (including refineries, according to this graph. IHS estimates that USD 2.4 billion will
chemical plants, and service stations), and managed Chevron’s be spent on offshore decommissioning of over 600 installations
Superfund liabilities. Chevron spent several hundred million between now and 2020, over half of that in the North Sea and
dollars a year on these activities, all with zero return, which most of the rest in the Gulf of Mexico. Between 2021 and 2040,
made for uncomfortable discussions when it was time to pres- USD 13 billion will be spent to decommission more than 2,000
ent my budget. installations; that work will expand to other aging offshore
regions such as West Africa and Southeast Asia.
“Decommissioning yields no return on investment or reve- Not a penny of that generates revenue for the operators.
nue and carries significant environmental and regulatory As an additional data point, the latest decommissioning re-
liabilities. The effective decommissioning of offshore plat- port published by the industry cooperative Oil and Gas UK es-
forms, subsea wells and related assets is one of the most timates that—through 2025—GBP 17.6 billion will be spent on
important challenges facing the oil and gas industry today decommissioning along the UK Continental Shelf (UKCS). Last
and in the future. Decommissioning decisions can no longer year, GBP 2.1 billion was spent on offshore decommissioning in
be avoided by the operators and the industry as a whole.” the UK and Norway. Decommissioning is estimated to be 12% of
—IHS Markit Offshore Decommissioning Study Report total UKCS spend in 2017—and growing.
And that’s just offshore. These estimates don’t include on-
Decommissioning and abandonment. That was a Technology shore decommissioning, plugging and abandoning, facilities
Focus topic in the January JPT, and I loved the featured quote: removal and site remediation, including wells, pits, tanks, and
“Unlike a capital project, decommissioning is not something that pipelines and gathering systems. In longtime onshore produc-
you can choose to do or not to do.” Like death and taxes, decom- ing regions such as Texas, Oklahoma, and Louisiana, the poten-
missioning eventually comes for every project. The question is: tial cleanup and removal liabilities are staggering. Cleanup and
Are we operationally and financially prepared for the inevitable? remediation of past production and drilling pits alone could
The offshore decommissioning problem is huge and gets big- measure in the billions of dollars. Most of our liabilities, espe-
ger every year as more platforms reach the end of their produc- cially onshore, preceded environmental regulations. It was just
tive life. North Sea decommissioning is leading the way as fields how things were done in the oil industry as well as in most in-
developed in the 1970s and 1980s reach their end of life. Created dustrial projects such as manufacturing and military operations.
7 years ago, Decom North Sea (www.decomnorthsea.com) is an So what can be done? It boils down to Risk and Reward, the
industry association that specifically addresses the decommis- theme for my columns. When people and companies are re-
sioning issues in the North Sea and works cooperatively among warded for short-term performance, there is little incentive to
operators, regulators, and decommissioning contractors. The deal with long-term risks such as decommissioning and envi-
North Sea regulators, especially UK and Norway, recognize the ronmental cleanup. It’s so much easier to leave it for the future;
growing liability. but increasingly, that future is now.
Decommissioning Gulf of Mexico facilities got much more ur- Here are some ideas on how to deal with that future.
gent following hurricanes Katrina and Rita in 2005; they swept
right through the heart of the aging continental shelf fields Clean as You Go
of offshore Louisiana. Katrina and Rita destroyed more than The easiest mess to deal with is the one you never make. In
100 offshore platforms, many of which were “idle iron,” not one of those uncomfortable budget discussions with Chevron’s

To contact the SPE President, email president@spe.org.

10 JPT • MAY 2017


executive committee, someone asked, “How can we avoid this?” 9,000
My answer: “Keep it in the tank.” My recommendation was that 8,000
we should clean as we go, as I do when I make Thanksgiving
7,000
dinner. From the blank stares I got, it was apparent that none
of them had ever managed a large dinner party. The key to big 6,000

USD million
party execution is not to leave all the dirty dishes and pots for 5,000
when the party is over, but to clean as you go, leaving little for 4,000
the end. We should do more cleaning as we go in our operations,
3,000
while we have income and infrastructure. Too often, opera-
tors hold off until the bitter end, then scramble for resources 2,000

to finance remediation or sell the field off to a smaller opera- 1,000


tor, hoping to avoid the decommissioning liabilities. Selling lia- –
bilities forward is false security, especially for well-capitalized 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040
operators, since environmental or decommissioning liabilities Africa Europe Russia and Caspian
from long-gone can and do come back. If we clean as we go, we Asia-Pacific Med. and Middle East South America
don’t leave an unfunded future. Central America North America

Annual decommissioning spending per region. Source: IHS


Design for Smaller Footprints and
Markit Offshore Decommissioning Study Report.
Decommissioning
To steal a phrase from Stephen Covey, “begin with the end in uneconomic to produce. OGA has published its Decommission-
mind,” meaning we should design projects knowing that eventu- ing Strategy, in which it recommends cooperation among the
ally they will be removed. More companies are including even- government, industry, and nongovernmental organizations
tual decommissioning and removal into initial project design. (NGOs) to maximize economic recovery (MER). The MER UK
Reducing footprint of onshore fields, better life cycle waste Forum was created by OGA so that it, government, and industry
stream management, and smaller footprints in general will would work together to maximize economic recovery from the
make future cleanups easier. Using tanks instead of pits keeps UKCS and maximize the UK value from the oil and gas industry
contamination contained and forces better waste management. as a whole. For aging fields, the MER decommissioning strate-
Offshore, projects should keep better records and design plat- gy is designed to ensure that industry explores all viable infra-
forms with a consideration for decommissioning. A little time structure options before abandonment, and that decommis-
and money spent upfront can save many millions in the future. sioning is executed in balance with the maximization of value
from economically recoverable reserves.
Innovative Decommissioning and Remediation OGA is also encouraging creative commercial models for
Technologies sharing decommissioning liability. With creativity, a large op-
Our industry has a history of innovation through desperation erator can turn over operations to smaller, more nimble opera-
and with the looming overhang of decommissioning costs, it’s tors, while retaining some of the decommissioning liability and
looking desperate. The high cost of decommissioning creates oversight over the new operator. A new commercial scheme
business opportunities for technology to cut costs while still was recently used in the sale of BP’s Magnus field to EnQuest
protecting people and the environment. Innovative lift equip- where future profits and liabilities were shared. Balancing the
ment has been specially built for offshore decommissioning. interests of government, industry, NGOs, and the public, we can
New cementing and well monitoring can better ensure that work together to create better solutions.
groundwater and the environment are protected. Better proj- “Decommissioning and abandonment is not something you
ect management can streamline operations. New remediation can choose to do or not to do.” The end will come for every proj-
techniques help soil impacted by crude oil or salt water recov- ect. Just like the financially smart person includes a will and es-
er faster. Cheaper can be better, especially when it incentivizes tate planning in her financial plans, our industry must also plan
operators to clean up more and faster. ahead for the future, which includes the end. JPT

Creative Financial Incentives For Further Reading


Many operators avoid decommissioning or remediation because Thornton, W. 2017. Decommissioning and Abandonment.
they can’t—or won’t—pay for it. Operators may also decide to J. Pet Technol 69 (1): 68–74. https://www.spe.org/en/jpt/
abandon a field rather than sell it (and the liabilities) to a small- jpt-article-detail/?art=2540
er operator that could have lower operating costs. To combat IHS Markit. 2016. Offshore Decommissioning Study Report,
this situation, the UK government is experimenting with cre- http://news.ihsmarkit.com/taxonomy/term/46897
ative financial solutions not only to keep aging fields producing, (accessed 03 April 2017).
but also to plan for plugging and decommissioning. The UK Oil UK Oil and Gas Authority. 2016. Decommissioning Strategy,
and Gas Authority (OGA) recognizes the coming wave of decom- https://www.ogauthority.co.uk/media/1020/oga_decomm_strategy.
missioning as the North Sea production ages and becomes pdf (accessed 03 April 2017).

JPT • MAY 2017 11


COMMENTS EDITORIAL COMMITTEE
Bernt Aadnøy, University of Stavanger

Syed Ali—Chairperson, Consultant

Peak Demand Tayfun Babadagli, University of Alberta

William Bailey, Schlumberger

or Too Much Oil? Mike Berry, Mike Berry Consulting

Maria Capello, Kuwait Oil Company


John Donnelly, JPT Editor Frank Chang, Saudi Aramco

Simon Chipperfield, Santos

Momentum is building for what is being called the “peak Alex Crabtree, Hess Corporation

demand” theory—that before too long global oil demand will Gunnar DeBruijn, Schlumberger
begin to fall as transportation efficiency, innovations such as Mark Egan, Retired
electric cars, and government climate change policies will quell Mark Elkins, Retired
the rising consumption of hydrocarbons that has marked the
Alexandre Emerick,
past several decades. What is getting attention is that this sen- Petrobras Research Center
timent is no longer coming from what could be termed anti-oil Niall Fleming, Statoil
interests but is coming from the likes of Shell’s chief executive
Ted Frankiewicz, SPEC Services
officer (CEO) and such organizations as the World Energy Council (WEC).
Speaking at an energy conference in Houston in March, Shell CEO Ben van Beurden Stephen Goodyear, Shell

predicted that world oil demand could peak in the late 2020s because of the growth Omer M. Gurpinar, Schlumberger
of renewable energy sources and natural gas. He noted that his company is moving A.G. Guzman-Garcia, Retired
toward a lower-carbon, long-term strategy. Shell recently divested most of its Cana- Greg Horton, Retired
dian oil sands position and is increasing its position in natural gas. Last year, it bought
John Hudson, Shell
the BG Group, which built up its natural gas portfolio. Van Beurden emphasized that
Morten Iversen, Karachaganak Petroleum
the industry must reduce carbon dioxide emissions to help countries meet the recent
Paris climate change accord goals. Leonard Kalfayan, Hess Corporation

The WEC has predicted that global energy consumption will begin declining in a lit- Thomas Knode, Contek Solutions
tle over a decade, and its eighth annual survey of energy executives around the world Sunil Kokal, Saudi Aramco
showed that growth in renewables and energy efficiency is requiring firms to revise Marc Kuck, Eni US Operating
their medium- and long-term outlooks.
Jesse C. Lee, Schlumberger
The peak demand theory undercuts the prevailing industry notion that a rising mid-
Douglas Lehr, Baker Hughes
dle class in developing countries will propel oil demand much higher. Just a few years
ago, the industry and many economists were fretting about a shortage of energy sup- Silviu Livescu, Baker Hughes

plies to meet this growing consumption. At the same conference where Shell’s CEO Shouxiang (Mark) Ma, Saudi Aramco
spoke, the head of the International Energy Agency (IEA), Fatih Birol, said that global John Macpherson, Baker Hughes
demand is not peaking and in fact will grow by 7.3 million B/D through 2022. He plead- Stéphane Menand, DrillScan
ed with oil companies to invest more, otherwise the world would face an oil shortage
Graham Mensa-Wilmot, Chevron
in the future and the prospect of huge price spikes. He noted that even though sales of
Badrul H. Mohamed Jan, University of Malaya
electric cars had risen to a record number of more than 1 million, this was still less than
1% of total global auto sales. The trucking, airline, and chemical sectors will continue Zillur Rahim, Saudi Aramco

to drive oil growth, he said. Eric Ringle, FMC Technologies


In general, the oil industry is not good at predicting the future. The oil price decline Martin Rylance, BP plc
in the late 1990s, the huge run-up in prices led by surging Chinese and Indian demand Robello Samuel, Halliburton
in the early 2000s, the strength of the price collapse of the past 2 years, and the resil-
Otto L. Santos, Retired
ience of the US shale sector all seemed to catch much of the industry flat-footed. The
Luigi A. Saputelli, Frontender Corporation
growth in unconventional production has only made supply/demand forecasts tougher.
The argument might not be so much about peak demand, but about timing. The Sally A. Thomas, Retired

industry as well as organizations such as the IEA have predicted that global hydrocar- Win Thornton, BP plc
bon use would decline this century and that natural gas would be the “bridge to the Xiuli Wang, Baker Hughes
future” of economies built more around renewable energy sources. The question is Mike Weatherl, Well Integrity
whether that will come in 15 years, 30 years, or even longer. JPT
Scott Wilson, Ryder Scott Company

Jonathan Wylde, Clariant Oil Services

Robert Ziegler, Weatherford

To contact JPT’s editor, email jdonnelly@spe.org.

12 JPT • MAY 2017


GUEST EDITORIAL

Are You Ready for the Oilfield Recovery?


Don Gawick, President and CEO, C&J Energy Services

Through the past 2-plus years, the that the industry may be headed for an lack of qualified new personnel, how can
petroleum industry has experienced its all-time low in the availability of quali- companies be ready to take advantage of
deepest downturn since the late 1980s. fied personnel. Midcareer profession- the turnaround?
It feels like, in the words of baseball als are in short supply, and few qualified Only by employing qualified person-
legend Yogi Berra, “It’s déjà vu all over candidates are left to replace the retir- nel can the oilfield services sector ensure
again.” Like other market cycle down- ing senior management. For the indus- high productivity, minimal safety and
turns, a dramatic drop in the price of oil try, this loss of expertise will be dif- service quality incidents, and increased
leading to sharp cuts in investment in ficult to replace when the next boom efficiencies for oil and gas producers.
exploration and production has affect- comes. At the same time, enrollment A lack of skilled staff could mean proj-
ed the entire industry and the people in petroleum engineering degree pro- ect delays, costly errors, and even safe-
who work in it. Also, as in past down- grams across the US is falling, making ty issues for companies. According to
turns, company after company laid off the talent shortage even more acute. some oilfield service experts, a shortage
high percentages of their employees of interested and qualified workers is
across the board and, in many cases, After Bust Comes Recovery actually slowing the recovery of US drill-
also enacted hiring freezes. If history is any guide, after every oil ing activity.
Since the steep drop in oil prices, bust comes a recovery. Currently, there When enduring season slumps, pro-
an estimated 250,000 workers directly is rising confidence in the industry that fessional baseball teams look for ways
involved in the petroleum industry have crude oil could strengthen and stabi- to improve their team roster. For oil and
lost their jobs. From field personnel to lize at higher levels later this year. While gas companies, it should be the same.
executives, the toll has been high. Many the recovery has been slow, the indus- Making sure you have the best, highly
of these laid off workers have moved try is seeing encouraging signs that the motivated people on your team is criti-
on to find employment in other indus- rebound has begun. Two indicators are cal to winning out in the field. C&J Ener-
tries, often with more comfortable and the increase in oil and natural gas drill- gy Services, along with much of the
predictable working conditions than is ing and production activity in Oklahoma industry, had to trim our workforce sig-
the norm in the oil field. It will be dif- and in the Permian Basin of west Texas nificantly during the recent downturn.
ficult for our industry to attract a large and southeast New Mexico. With activ- But, even while doing so, we focused on
percentage of these workers to return. ity picking up, the US oil industry will retaining key contributors and, in some
Add to this scenario “the great crew need to hire tens of thousands of new cases, even hired talented specialists as
change” created by the retirement of workers as oil prices recover and drill- they became available to position our
many senior level people who joined the ers stand up rigs. company for future growth.
industry in the boom of the late 1970s So the question is, with the difficulty Alongside the investment in person-
and early 1980s, and it is conceivable in rehiring laid off employees and the nel, we must invest in modernizing the
systems and processes we use to run our
businesses. We cannot afford to handi-
Don Gawick is president and chief executive officer (CEO) of C&J cap our organizations with outdated and
Energy Services, a position he has held since June 2016. He also inefficient business systems. Our peo-
served on the company’s Board of Directors since July 2016. ple must have the tools in place and the
Gawick joined C&J in 2012 with the company’s acquisition of its
training to utilize them effectively for
wireline business, Casedhole Solutions, and served as C&J’s chief
operating officer from 2012 until his appointment to CEO. He
our businesses to successfully compete
served as president and CEO of Casedhole Solutions from 2010 to in today’s marketplace.
2012. He began his career at Schlumberger and between 1979 and
2010 held numerous senior management positions, including oversight of all of Be Prepared
Schlumberger’s oilfield business segments. Gawick holds a BS degree in electrical Companies are now competing for the
engineering from the University of Manitoba. best and brightest already in the indus-

14 JPT • MAY 2017


try and vying for the highest poten- eye to safety at every level. History has After the big downturn of 1986, com-
tial newcomers. What can you do to shown that a large influx of new employ- panies had adequate time to staff up as
be best prepared during the upcoming ees can bring safety issues unless great the market gradually recovered. This
growth cycle with qualified employees care is taken during the training pro- time around, it is currently feeling like
in sufficient numbers? A robust recruit- cess. We also need to recognize that time is of the essence. In Texas alone,
ing and training process and, in many today’s labor force is no longer motivat- close to 99,000 direct and indirect oil-
cases, a retraining process to onboard ed solely by a paycheck. Our wage com- field jobs have been eliminated since
future employees quickly and prepare pensation packages must be competi- the collapse of oil prices. Notably, this
them for the field is an absolute neces- tive in each specific geographic market, is also the place where the recovery is
sity. Re-examine current training pro- but other parts of the total compensa- expected the soonest. The first com-
grams and identify how you can adjust tion package are just as important to panies to get back in the field with the
and update them to ensure your people today’s potential new hire. “Quality of right people possessing the required
are equipped with the right knowledge life” initiatives, such as reliably sched- skill sets will be the big winners.
and skills. uled time off, 9-80 work schedules, and As an industry, we must focus on
Some regulatory changes have been recognition programs for exception- immediately addressing the skill short-
made during the downturn, and safe- al performance are a higher priority ages that so obviously exist if we are
ty programs must get in line with the for younger workers today than in the going to ensure a quick and successful
latest requirements. To that point, as past. In short, we must hire and train recovery. Only by making the right moves
a company rapidly brings new people quickly and effectively while appealing today regarding talent acquisition and
onboard, it is vital that no matter the to the priorities of a new generation of retention can we ensure a smooth, safe,
position, all training is done with an oilfield workers. and financially rewarding recovery. JPT

ADVANCED
TECHNOLOGY
VALVE
ATV SpA Ph. +39 0341 932111
Via Ombriano, 2 Fax +39 0341 930785
Area Industriale info@atvspa.com
23823 COLICO (LC) Italy atvspa.com
TECHNOLOGY APPLICATIONS

Chris Carpenter, JPT Technology Editor

Acoustic-Technology Platform
Operating in virtually any drilling or com-
pletions environment, XACT’s acoustic-
technology platform is designed to give
operators access to real-time downhole
data throughout the well-construction
process (Fig. 1). The network of tools,
associated on-site equipment, and sup-
port offer a comprehensive virtual view
of the entire wellbore and drillstring by
transmitting measurements and other
downhole data in real time. Once the
acoustic signal reaches the surface, it
is captured and transmitted wirelessly
to an on-site computer by XACT’s pat-
ented electronic acoustic receiver (EAR).
The EAR is attached to the topdrive, frac
head, and cement head without any need
for modification. Repeater nodes along
the string not only act as signal boost-
ers, but also are capable of taking mea-
surements independently of one another.
XACT’s platform integrates into exist-
ing drilling and completion operations Fig. 1—XACT’s EAR technology is attached to the topdrive and is positioned to
and is independent of fluid type, cir- receive real-time downhole data.
culation rate, or high-resistivity forma-
tions. Data can be transmitted to the sur- ◗ For additional information, visit while-drilling (LWD) service reliably
face in real time or held in memory until www.xactinc.com. acquires gamma ray, resistivity, neu-
tripped out of the hole. Measurements tron porosity, and density data at tem-
of weight, torque, pressure, tempera- Ultrahigh-Temperature peratures up to 200°C (Fig. 2). The
ture, bending, and other physical con- Logging-While-Drilling Service service includes porosity, direction-
ditions are displayed. These are output The industry standards for high- al, gamma, and bore/annular pressure
onto the rig and client networks, allow- pressure, high-temperature (HP/HT) tools, as well as a full triple-combo LWD
ing for remote viewing of the data in a drilling have dramatically increased suite with resistivity and density mea-
matter of seconds. over the past 30 years as operators surements. These capabilities enable
have moved into deeper, more chal- operators to identify hydrocarbons
lenging fields. Weatherford’s Heat- and gather adequate formation evalu-
Wave Extreme (HEX) logging- ation data while drilling in ultrahigh-
temperature reservoirs without the
need for additional trips to cool the
bottomhole assembly. The HEX ser-
vice expands the spectrum of drillable
fields. By increasing the reliability of
data delivery and reducing drilling time,
the service mitigates the operational
and economic risks of HP/HT drilling.
It also removes the need for additional
wireline logging, further cutting rig time
Fig. 2—The Weatherford
HeatWave Extreme LWD service
and costs.
acquires triple-combo LWD data at ◗ For additional information, visit
temperatures up to 200°C. www.weatherford.com.

16 JPT • MAY 2017


Capital-Efficient
Subsea Solutions
Production Tree
Lead time: 18 months Unified Controls
Lead time: 12 months
Pump
Wellhead Lead time: 18 months
Lead time: 8 months
Manifold
Lead time: 18 months
Connection System
Lead time: 6 months

Redefine economic viability with a new


approach to subsea production.
The OneSubsea portfolio of standardized designs supports streamlined processes, documentation,
and manufacturing to deliver integrated production systems that enable achieving first oil as soon
as 24 months after contract award.
Customized to your field architecture, these capital-efficient solutions help you maximize recovery
from new fields to transform deepwater economics across the life of the asset.

Find out more at


onesubsea.slb.com/standardization

© 2017 Schlumberger. All rights reserved. 17-OSS-273292


operationally convenient water sources to
minimize cost and simplify completions.
This technology provides operators the
benefit and versatility of improving prop-
pant transport while removing the need
for excess chemicals and water, energized
fluids, and specialized equipment. Pro-
pel SSP 350 is designed for plays with
water constraints, such as the Marcel-
lus, with its limited and costly produced-
water-disposal options, or the Permian,
where high-salinity brackish and pro-
duced water is most abundant. Rated
for 350,000-ppm total dissolved solids
and 40,000-ppm water hardness, Propel
SSP 350 offers an opportunity to reduce
water-treatment, logistics, and disposal
Fig. 3—From left, the Fairmount Santrol Propel SSP 350 at a concentration of 6 costs while potentially eliminating the
ppa in fresh water, brackish water, produced water, and slickwater upon blending. need for freshwater sources and allows
the ability to design completions on the
basis of reservoir characteristics rather
than operational constraints.
◗ For additional information, visit
www.fmsa.com/jpt.

Plug Solution
Archer Oiltools introduced its Spartan
plugs to help operators deliver safer wells,
boost operational efficiency, and reduce
costs (Fig. 4). The Spartan plug family has
Fig. 4—Archer Oiltools’ line of plugs, includes its new Spartan plugs, which
been developed to ensure well integrity
deliver protection for short-, medium-, or long-term suspensions and rapid during operations, secure well suspen-
deployment and retrieval. sion, and safe plug-and-abandonment
(P&A) operations for all wells. The plugs
Rapid-Intervention Package ported on a Boeing 747-400F and lifted by deliver protection for short-, medium-, or
Boots & Coots Services, a Halliburton a 110-ton or lighter crane, allowing cus- long-term suspensions and rapid deploy-
business, introduced the Global Rapid tomers access to relief and containment ment and retrieval, which ensures safer
Intervention Package (GRIP), a suite of capabilities even in remote areas. wells and reduces operational time and
services to help reduce costs and deploy- ◗ For additional information, visit costs. In addition to the Spartan plug,
ment time in the event of subsea well- www.halliburton.com. Archer Oiltools’ plug portfolio includes
control events. GRIP provides well plan- the Vault, Hunter, and Spearhead lines.
ning and well-kill capabilities that include Proppant-Transport Technology The Vault dual-plug system enables two
an inventory of well-test packages, coiled Fairmount Santrol introduced an exten- Archer plugs to be installed in one run,
tubing units, and relief-well-ranging sion to Propel’s SSP proppant-transport streamlining plug operations. The Spear-
tools. In addition, GRIP features the new technology, which increases hydraulic head plug system is designed to with-
15,000-psi RapidCap Air-Mobile Capping fracturing efficiency, for plays where oper- stand increased hangoff loads or pull
Stack. Sourced from Trendsetter Engi- ators face high produced-water-disposal forces, which improves the efficiency of
neering, RapidCap incorporates a special- costs and limited freshwater availabil- P&A operations. The Hunter tandem-plug
ly designed gate-valve-based system. Cap- ity. This product line extension, Propel system allows a barrier plug to be run in
ping-stack systems currently available can SSP 350, leverages the characteristics of combination with other downhole tools,
be difficult to deploy because of their size Propel SSP technology into the realm of saving the number of trips and rig time.
and weight and are expensive to transport high-salinity water sources. In addition to The Spartan plug family is an addition to
and reassemble on a job site. RapidCap enabling delivery of any mesh-size prop- the existing Lock plug family of gas tight-
aims to reduce deployment time by up to pant to fracture networks, Propel SSP well-suspension plugs. JPT
40%. Rather than requiring specialized 350 now adds flexibility in water sourcing ◗ For additional information, visit
infrastructure, RapidCap can be air trans- (Fig. 3). Propel SSP 350 can use the most www.archerwell.com.

18 JPT • MAY 2017


TECHNOLOGY UPDATE

Conductor Anchor Node Optimizes Efficiency


of Riserless Deepwater Exploration Drilling
E. Kopperud, A. Knudsen, S.J. Dybvik, and F. Hardinges, Centrica, and W. Mathis, SPE, NeoDrill

The conductor anchor node (CAN) tech- Well Design and Challenges (BOP) and riser could only be run from
nology was introduced as part of the The overall strategy for the well was to the main rig. To be ready to land the BOP
architecture for Centrica’s Ivory deep- perform as much work as possible before and riser on the wellhead, when surface
water exploration well in the Norwegian rig arrival, to reduce exposure to weather casing was cemented and the running
Sea to optimize efficient operations for and optimize operations in the riserless tool was disconnected, the main rig could
the well’s riserless section. sections of the well. not be occupied by the conductor.
The CAN (Fig. 1), developed by NeoDrill was contracted for prein- The conductor was made up in the
NeoDrill, is a large steel cylinder that stalling the CAN to facilitate safe jet- main rig and thus was landed off in the
is open at the bottom with an open ting operations and reduce the conduc- hang-off skid in a mid-position in the
guide pipe in its center. The device tor string length, which is made possible moonpool to keep the main rig available
sets into the seabed, working simi- for jetted or cemented conductors by the for running the BOP and riser.
larly to a suction anchor, and carries high axial load-bearing capacity of the The running of the BOP and riser
and secures a well’s conductor (top- CAN system. started offline in the main rig, while the
hole casing). Conductor analysis concluded that a auxiliary rig jetted the conductor and
The CAN is set in place by a dynami- 50-m CAN-supported conductor would drilled ahead for the 17½-in. section. The
cally positioned (DP) installation ves- suffice, compared with the 80- to 100-m BOP was ready to be landed a few hours
sel before the drilling rig arrives. The length required for a conventional con- before the 20×13⅜-in. surface casing
technology is designed to save rig time ductor. Conductor jetting is the quick- was cemented in place and the running
and expense, simplify logistics and rig est installation option, as it does not tool was disconnected.
operations, and expedite well startup require cementing operations, tripping
(https://www.spe.org/en/jpt/jpt-article- for a new drilling bottomhole assembly CAN Installation
detail/?art=2641). (BHA), and drillout. The CAN, marker buoys, and transpon-
With the CAN, seabed marker buoys The conductor jetting operation was ders were installed in the seabed at a
and DP transponders were preinstalled performed using a special conductor run- water depth of 1444 m by the vessel Nor-
by a construction vessel in June 2014. ning and drillout tool, the Dril-Quip Cam mand Reach 4 months ahead of the drill-
The spud location was prepared for Activated Drill Ahead Tool (CADA tool), ship’s arrival. The final inclination of the
an efficient startup when the drillship which allows each new section to be CAN was 0.42°.
arrived in October of that year. drilled without tripping for a new BHA. The whole offshore CAN installation
A pilot hole was drilled 50 m off- The CAN allows the conductor to be operation, including mobilization and
set from the preinstalled CAN to inves- landed safely without waiting for soil to sailing, were completed in 4 to 5 days.
tigate for shallow hazards and record consolidate (soak) before the CADA tool The total CAN installation time from
useful drilling parameters to determine is released for drilling to resume. Thus, “touch-down” at seabed until full penetra-
soil strength. the risks of the conductor and wellhead tion took 4 hours. A separate set of tran-
The interpreted soil strength infor- housing sinking after the tool’s release sponders and marker buoys for the pilot
mation was used for selecting the are mitigated. hole were preinstalled at the seabed to
optimum conductor length for jet- To verify that jetting was feasible and save rig time.
ting it in and landing in the CAN. The to determine the optimum conductor jet-
conductor jetting method was cho- ting length, a penetration test was per- Pilot Hole
sen to optimize the dual-derrick formed in a pilot hole drilled about 50 m The pilot hole was drilled ±50 m south-
rig operations. offset from the CAN location. west of the main location, which was
All the riserless activities using the fixed by the CAN.
dual derricks were optimized to reduce Ivory Operational Summary A penetration test was conducted in
the rig time and maximize the parallel- The pilot hole had to be drilled from the the upper part of the pilot hole to assess
activities advantages. auxiliary rig as the blowout preventer the feasibility of jetting the conductor.

JPT • MAY 2017 19


Fig. 1—(clockwise from upper left) The CAN lying on its side at the surface, in upright position, being lowered into place,
and with a section of the top visible after installation at the seabed. Source: NeoDrill.

Very little weight on bit (WOB) was The pilot hole was thereafter drilled extension with crossover to a 30-in.
applied in the upper part of the pilot from 1505 m to a vertical section depth D-90 MT connector.
hole, and data collection was difficult of 2200 m. The total conductor was 49.8 m long
because of the 4- to 5-m rig heave. WOB of and was run with a (NeoDrill) conductor
5 tons was recorded between 1495 m and Conductor Jetting hanger to enable land-off into the CAN.
1505 m, indicating a more competent for- In the jetting operations, the conductor The CADA tool was made up as part
mation. A significant change in formation string consisted of of the drilling BHA. A remote-operated
strength was seen at 1501 m to 1502 m. ◗ One shoe joint (open cutoff without vehicle verified the correct space-out of
The section was thereafter logged to connector) the bit vs. the bottom of the 30×36-in.
confirm that a dominant clay sequence ◗ Two 30-in. conductor joints with a conductor. Thereafter, the assembly was
was present at the bottom part of the hole “slim” D-90/MT Dril-Quip connector to the top of the CAN.
to verify that the conductor jetting opera- ◗ One 36-in. Dril-Quip wellhead The BHA was spaced out with the bit
tion could be executed. housing—a 36×2-in. wellhead nozzles to be 6 cm inside the conduc-

20 JPT • MAY 2017


6⅝-in. Reg Pin Down

8.00
in.
Top of 36-in. Low-Pressure Housing

Top of Neodrill Can 36-in. Housing—Weld

8.00 8.00
0.33 m 0.07 m

in.
6⅝-in. Reg Box
1.00 m
in.
1.29 m Superior
7.25

0.20 m

Service and
in.

Seabed
7.5

Custom
in.

1.36 m

Fig. 2—The 36-in. conductor housing with the CADA tool landed inside the
Chemistry
CAN. Source: NeoDrill.
MAXIMIZE PRODUCTION AND
PROTECT THE INTEGRITY
tor, and the tip of the 17½-in. bit to be one full joint and was circulated clean
OF YOUR ASSETS
16 cm outside the conductor shoe. It with two 10 m3 high-viscosity sweeps to
was considered critical to have nozzles mitigate the risk of sticking. The connec- Multi-Chem® has the local
inside the conductor to avoid washing tion was performed without any issues service and technical support
out the formation. despite the 2- to 3-m rig heave. to help get the most out of your
The 30×36-in. conductor was stabbed Once the casing was landed, the CAN’s well and pipeline assets. Great
into the CAN, whereafter the 44-in. axial loading capacity allowed the release chemistry starts with great
CAN center-pipe was cleaned out at a of the CADA tool so that drilling opera- people. Learn how we can help
2500-L/min flow rate until no overpull tions in the 17½-in. hole section could you increase production and
was observed, to ensure safe landing of proceed immediately, without the con-
maximize results.
the 36-in. housing into the CAN. ductor needing to soak for (a normal
The flow rate was reduced to period of) several hours before the
1000 L/min for cleaning out the bottom tool’s release. Fig. 2 shows the conduc- halliburton.com/production
2 m of the center-pipe and jetting the first tor housing with the CADA tool landed
few meters below the CAN to avoid wash- inside the CAN.
ing out the formation below the CAN.
The conductor was worked upward Main Conclusions
every 2 to 3 m because of the impor- The Ivory drilling operations demonstrat-
tance of keeping the conductor mov- ed that combining the CAN with a short
ing while jetting. Slackoff weights and jetted conductor was a successful means
pickup weights developed in a relatively of achieving an effective dual-derrick
linear manner. operation in the riserless well section.
Good jetting practice is to prepare a Significant time efficiency was
slackoff curve as a road map and apply achieved in this part of the well. With
weight accordingly. The 80% of the BHA 4.6  rig days between well spudding
weight hanging in the CADA tool can inside the CAN and landing the BOP,
be applied in addition to the weight of 7.3 days were saved compared with the
the conductor. expected P50 time plan.
There was only one connection per- Upfront preparation of detailed opera-
formed while jetting, which was planned tional procedures, involving key opera-
at approximately 15 m above total depth. tional personnel, is critical for execut-
Before making the connection, the con- ing an efficient riserless operation with a
ductor was worked twice the length of dual-derrick rig. JPT

Multi-Chem
JPT • MAY 2017
E&P NOTES

Nanotechnology Could See Big Future


in Water Cleanup
Joel Parshall, JPT Features Editor

Nanotechnology could have a big future Catalytic Conversion established methods of activated car-
as a tool for upstream oil and gas and Wong focused on progress that has been bon adsorption and air stripping that
other industries to use to clean up con- made in developing catalysis methods— are used to remove many contaminants
taminated water, Professor Michael S. catalytic conversion—for water pollu- from water. By changing the chemical
Wong of Rice University, Houston, told tion control, a prime area of his research composition of the contaminated water,
the SPE Gulf Coast Section’s R&D Study that involves the Catalysis and Nano- catalyzed reactions can break down and
Group recently. materials Laboratory at Rice. Within the eliminate the contaminating agent. With
Wong, chair of the university’s chem- oil industry, catalysis plays a major role the other processes, the contaminant
ical and biomolecular engineering in petroleum refining operations such is removed but disposal issues remain.
department, said that the multidisci- as cracking and reforming. In addition, Catalysis methods will also work much
plinary nanotechnology field has suf- Wong said, “An exciting new role for more quickly than the other techniques,
ficiently matured to enable research- catalysis is in the treatment of produced Wong said.
ers and practitioners to envision water for reuse.” He posed the example of treating water
real prospective solutions to water Introducing a catalyst into a chemi- contaminated with trichloroethylene
contamination problems. cal process can bring about or speed up (TCE) by traditional methods vs. a cata-
Water is by far the largest byproduct a chemical reaction, with the catalyst lytic technology that his research group
of the fossil fuel industry. Wong’s pre- remaining unconsumed in the reaction has developed. TCE, a chlorinated hydro-
sentation noted that in the US, oil indus- and thus able to act repeatedly. Only carbon and dense, nonaqueous phase liq-
try well operations produce in aggregate tiny amounts of catalyst are needed to uid, ranks high on the US government’s
approximately 10 times as much water as achieve these effects. priority list of hazardous substances, is
they do oil, and in Canada the water/oil Wong stressed the advantage of cat- present at most of the country’s toxic
ratio is 14 to 1. alytic conversion techniques over the waste disposal sites, and is difficult to
get rid of.
Activated carbon treatment can
remove it from water, but when the car-
bon becomes saturated with TCE, the
carbon must be disposed of or cleaned by
burning off the contaminant.
“That TCE is moving around, wheth-
er to a landfill or going back up into the
atmosphere,” Wong said. “Or if you are
really combusting it, you will turn the
TCE into dioxin [another priority hazard-
ous substance]. So that molecule remains
in the system.”
In air stripping, the contaminated
water is pumped through a series of baf-
fles while forced air volatilizes the con-
taminant to remove it, following which
it is collected and may receive additional
treatment. However, a contaminant, such
A catalyst made of nanoparticles of gold on alumina with palladium atoms
successfully treated chloroform-contaminated groundwater and is effective in
as TCE, will leave deposits that eventually
treating other water contaminants such as nitrates, nitrites, and nitrophenol. must be cleansed from the stripper. The
Source: Rice University. cleansed residue will then be sent to an

22 JPT • MAY 2017


activated carbon bed. While one problem treatments, which proved successful,
has been solved, “you now have anoth- Wong said.
er contaminated stream to deal with,” He also discussed work by the Nano-
Wong said. systems Engineering Research Cen-
ter for Nanotechnology-Enabled Water
Family of Catalysts Treatment (NEWT), a collaborative ini-
The family of catalysts that Wong and tiative between universities, indus-
his researchers have developed incor- trial companies, and other organiza-
porate nanoparticles of gold on alumi- tions. It is funded by the US National
na with palladium atoms arranged in Science Foundation.
various thicknesses on top of the gold. The NEWT partnership is focus-
When even a tiny amount of catalyst ing on the development of 1) off-grid
is injected into TCE-laced water, the
contacted TCE chemically falls apart.
humanitarian, emergency-response,
and rural drinking water treatment
Lift Your
By adjustments in the amount of pal-
ladium, the surface coverage of the
systems, and 2) industrial wastewater
reuse in remote sites such as oil and Expectations
catalyst can be altered as needed. The gas fields and offshore platforms.
process works “about 100 times fast- The goal is to devise modular systems WITH EFFICIENT, RELIABLE
er than processes on the market now,” that would function at whatever scale
ARTIFICIAL LIFT SYSTEMS
Wong said. is needed.
The catalyst has performed very well Technology projects are under way We combine a wide range of
in the laboratory, he said, and his group to develop electrical submersible pumps,
is working to bring the technology into ◗ Multifunctional sorbents in packed- robust motors, superior gas
field applications. The gold-palladium bed reactors mitigation products, and a
catalysts are effective in treating a num- ◗ Magnet-based nanomaterials for collaborative operating and
ber of other water contaminants such rapid adsorption and recovery monitoring strategy to help
as nitrates, nitrites, and nitrophenol, ◗ Photocatalytic nanomaterials for
get the most from your wells.
according to Wong. The catalyst cost pollutant destruction
Learn how we can help you
is minimized because nano amounts The center is headquartered at Rice,
increase production and
are used. with partners in Arizona State Univer-
A catalyst from the same group was sity, the University of Texas at El Paso, maximize results.
used to treat chloroform-contaminated and Yale University, and some 20 com-
groundwater at a DuPont chemical panies and organizations in the US and halliburton.com/production
plant a couple of years ago. The com- abroad. Oil industry participants include
pany was already using carbon adsorp- Apache, Baker Hughes, and Shell. The
tion to address a chloroform prob- partnership would like to expand mem-
lem that had arisen and wanted to test bership to as many as 40 to 50 partic-
the catalyst. Special three-stage reac- ipating companies and organizations,
tors were built to perform the catalyst Wong said.

Workforce Education Key To


Understanding Drilling Data
Stephen Whitfield, Senior Staff Writer

In trying to remove risk and uncertainty adapt to a changing data landscape and
from drilling and improve their overall optimize their operations.
drilling efficiency, operators are devel- At a presentation held by the SPE
oping more reliable analytic capabili- Drilling and Uncertainty Technical
ties and adopting novel sensor and data- Section, Eric van Oort discussed the
streaming technologies to help them issues involved in analyzing data for
process the massive amounts of data drilling optimization, and the work
coming from their wells. An industry being done at the University of Texas
expert said that workforce education at Austin to help ease the process. Van
will be critical to helping companies Oort is a professor of petroleum engi-

JPT • MAY 2017


neering at the UT-Austin and a for- an investment van Oort said was com-
mer onshore gas technology manager pounded by what he termed a “messy
at Shell. data” problem.
Van Oort said engineers entering “If you look at our sources, it’s a
the industry must expect to work in range, a whole cornucopia of structured
a datacentric environment. While vari- vs. unstructured data, static vs. dynam-
ous elements of the traditional drilling ic information, data that we get in real
curriculum such as casing design and time, and other data that are stored in
directional drilling will still be valu- daily drilling reports, well programs,
able, companies will need to adapt their and so on. Extracting that information
training methods to better suit the mod- effectively is not all that easy. Optimi-
ern oil field. He said the industry will see zation often requires information from
an uptake in the use of advanced simula- various sources, and this can be a daunt-
tors with sophisticated human/machine ing task,” he said.
interfaces, similar to the drilling simu- Sensor data quality is a potential area
lator National Oilwell Varco donated to of concern. Van Oort said sensor tech-
UT in 2014. nology used in field operations can
“It makes sense in the drilling cur- often be decades old, and the data are
riculum to include data analytics and of poor quality. Data collected by oper-
coding. These are really going to be ators are seldom used, with the prime
important requirements for the reason being a lack of qualified man-
future—familiarization with machine power to prepare the data and carry
and statistical learning, data recogni- out the analysis, along with what he
tion, and artificial intelligence. Not- termed “awkward” storage and data
withstanding that traditional skills are security requirements.
still needed, we must realize that this In addition, van Oort said data-
is the age of big data and that post- analysis and machine-learning algo-
well analysis, real-time data analysis, rithms are often too immature for oil
and so on, provide great value and a and gas operations and, if they are
CALL FOR PAPERS great opportunity for talent education,” mature enough, they’re not being used
van Oort said. to their full potential. Even when data
Submission Deadline: and analysis are available, the data are
26 June 2017 Data Standards Lacking hardly ever used effectively for safe-
While touting the role that analytics ty, performance improvement, and unit
will play in workforce education mov- cost reduction purposes.
IADC/SPE ing forward, van Oort acknowledged
that data collection may still be a diffi-
“Analysis is one thing, but ultimate-
ly you have to transfer it out into the
DRILLING cult and expensive task for many com-
panies. He said data standards are often
field and really get very comprehen-
sive action,” van Oort said. “Some-
CONFERENCE lacking, and the data collection process
may be labor-intensive, which could be
body has to do something to capital-
ize on the information, and it’s often
AND EXHIBITION a problem as the industry focuses on
leaner operations in the wake of the oil
more difficult to accomplish than it is
on paper.”
price downturn. Also, the turnaround During the presentation, van Oort
6–8 March 2018 time for some data may be too long for discussed the work of RAPID, a drill-
meaningful optimization. Van Oort said ing automation research group at the
Fort Worth, Texas, USA
he had seen cases of drilling data being University of Texas that was created to
Fort Worth Convention Center produced a year after drilling, which in develop a workflow for data analysis and
some instances may be a long enough visualization. Comprising researchers
www.spe.org/events/dc/2018
period of time for an operator to com- and students from petroleum, mechan-
plete its drilling campaign. ical, and aerospace engineering, the
Sometimes, data analytic operations group worked with operators to maxi-
suffer from the sheer volume of data mize the value derived from surface and
mined from a wellsite. Separating out downhole data, establish a data analyt-
the useful data from the useless data ics toolkit, and familiarize students with
may require a massive labor investment, drilling processes.

JPT • MAY 2017


Digital Image Correlation: A New Way
To Look at Hydraulic Fracturing
Trent Jacobs, JPT Digital Editor

Digital image correlation (DIC) is rou- required,” he said, adding, “And from
tinely used in modern mechanical engi- an environmental point of view, we can
neering to analyze the strength of build- also say for sure what is going on inside
ing materials. Geologists have used the our reservoirs.”
technology for the same reason in the Mokhtari is underscoring the fact
study of mines. that there are missing pieces to the sci-
Now, researchers from the Universi-
ty of Louisiana at Lafayette are making
entific standard that the oil and gas
industry uses to predict how hydraulic
Increase
the case that DIC can also help petro-
leum engineers—specifically those in
fractures form or grow. These gaps are
often cited by those who view tradition- Production.
the business of hydraulic fracturing. al hydraulic fracturing models as unre-
The ultimate aim: an index of uncon-
ventional rock types based on a quanti-
liable when applied to unconvention-
al reservoirs.
Maximize
fication of their ability to be stimulated,
or what oil and gas producers simply More Data Points Results.
call “fracability.” One of the major advantages of the DIC
DIC technology has a few varia- approach is that it can collect hundreds THROUGHOUT THE
tions, but this application involved of data points per test vs. convention-
the coupling of a high-speed camera al strain gauges that yield only a single LIFE OF YOUR ASSETS
with commercial change-tracking soft- data point. DIC also stands apart in that Whatever your production
ware. This simple approach allowed it is a noncontact monitoring method, challenge, Halliburton offers
researchers to see frame-by-frame how while strain gauges must be physical- a full range of engineered
lines of strain building up inside com- ly attached to a test sample and there-
solutions. From real-time
pressed rock samples directly correlat- fore always represent a potential source
ed to where fractures would form a few of interference. diagnostic well interventions
seconds later. As the paper explains, initial testing to customized specialty
The work was first presented earli- involved two types of rock: a homoge- chemicals, reliable artificial
er this year in a technical paper at the neous sandstone (used as a baseline) and lift systems, and pipeline and
SPE Hydraulic Fracturing Technol- a more complex and naturally fractured process pre-commissioning
ogy Conference. Buda Limestone rock from south Texas and maintenance solutions,
Mehdi Mokhtari, the lead researcher —a tight-rock found beneath the Eagle we’re ready to help keep your
and an assistant professor of petroleum Ford Shale.
production high and costs low.
engineering at the university, said the
project served as proof of concept for Contact us to learn more.
the technique that he hopes may explain
some of the unknown factors associ- halliburton.com/production
ated with fracture behavior.
“If we can better understand
these fractures, then we can
optimize the number of stag-
es needed in each well so we
don’t over-fracture a forma-
tion, or do less than what is

Seeing is believing with a


newly applied test method
that can show researchers
how strain relates to the
process of fracturing. Source:
University of Louisiana at
Lafayette/SPE 184826.

JPT • MAY 2017


Purchase Your
Copy Today
Applied
Multiphase Flow
in Pipes and
Flow Assurance—
Oil and Gas Production
by Eissa M. Al-Safran
and James P. Brill

The laboratory setup for the digital image correlation strain test experiments
includes a pneumatic press (background), and a high-speed camera
(foreground). Source: University of Louisiana at Lafayette/SPE 184826.

Once extracted from a larger core With the naturally fractured samples,
sample, the side of each sample facing the induced fractures were far more
the high-speed camera was then sprayed complex and tended to branch off in
with a black-and-white speckled paint. different directions. Mokhtari said this
Each little speckle provided the software supports the idea that natural fracture
a reference point to watch for as stress orientation and the bonding material
was applied via a pneumatic press in a that fills those fractures are important
procedure known as the Brazilian test. drivers for fracture growth.
The paint is critical to this type of However, these conclusions are large-
Applied Multiphase Flow in Pipes experiment because the sole focus of ly qualitative and do not describe these
and Flow Assurance—Oil and Gas DIC technology is to compare the origi- drivers in great detail. On that front,
Production delivers in-depth nal image taken as the test begins with Mokhtari said more work will need to be
coverage of the most recent all subsequent images. Any deformation done to connect this experimental test-
or physical change to the face of the ing method to real-world hydraulic frac-
advancements in multiphase flow
sample is assigned a color code, reward- turing operations.
technology in an easy-to-read ing researchers with easy-to-interpret “I didn’t want to over-generalize the
format. Responding to the need for visual data. results” in the paper, he said. “But I
a more up-to-the-minute resource, As a test initiates, areas under low think at this point, we’ve shown that
this book presents applications on to no strain are shown in green. Where this technique works and has a lot of
the fundamentals with new material strain is intensifying, thin red lines good applications.”
quickly appear and then grow thicker. Mokhtari is currently seeking grants
on heat transfer in production
“And when the rock finally breaks, it will and industry partners to help carry on
system, flow assurance, transient do so along those lines,” said Mokhtari. this research. He added that with more
multiphase flow in pipes, and the In baseline tests, the homogenous study, it may be possible to discover what
TUFFP unified model. samples with no natural fractures tend- the laws of fracturing behavior are. That
ed to split vertically down the middle, as work would begin with simpler sand-
www.spe.org/go/AppliedMulti expected. The DIC data showed in these stones before tackling more complex
samples the point of maximum strain, or shale rocks. The data collected could be
where the rock failed, lined right up with used to strengthen numerical models
the direction of the applied load. and simulators. JPT

JPT • MAY 2017


This rig is drilling in east Siberia for Irkutsk
Oil, which is the biggest and fastest-growing
independent oil company in Russia.
Source: Irkutsk Oil.

Russia’s Push R
ussia has shown a remarkable ability to add oil and gas
production in the face of daunting obstacles. It has aggres-
sively expanded in Asia, by rapidly adding production in east
Siberia, as it builds pipelines to China and a liquefied natural gas

for Oil and Gas (LNG) facility deep in the Arctic.


A panel of eight leaders from the Russian oil and gas busi-
ness recently offered an impressive growth story in the face of
international trade sanctions and oil prices that sunk into the
Growth USD-30/bbl range year ago.
“I have an impression there is a kind of positive mood,” said
Alexander Novak, Minister of Energy of the Russian Federation,

Stunted by
at a panel session at the IHS Markit CERAWeek conference in
Houston. “Prices are becoming stable, more predictable,” he
said, but added “there is uncertainty about what comes next.”
As Novak was talking about how the oil-and-gas-driven

Oversupplied Russian economy is growing again after a 2-year downturn,


oil markets remain weak due to rising US unconventional oil
production and lingering high inventories.
The upbeat feeling mentioned by Novak was largely the

Markets product of a deal between OPEC and major producers, particu-


larly Russia, to reduce their output.
As of late March, Russia was less than halfway to meeting
its pledge to cut output according to a report by Rystad Ener-
gy. That study showed that while the largest Russian produc-
Stephen Rassenfoss, ers had made cuts equal to about 50% of the 300,000  B/D
JPT Emerging Technology Senior Editor commitment, those reductions were offset by rising pro-

JPT • MAY 2017 27


Rosneft than the other,” said Mikhail Margelov,
–90
Gazprom Neft vice president of Transneft, which con-
–30
trols 90% of the pipeline traffic in Russia.
Lukoil Asia offers demand growth that Europe
–20
Surgutneftegas does not, but Russia is competing for a
–10 share of the oil market with Saudi Arabia
Exxon Neftegas and is competing in the gas market with
–4
Tatneft
earlier international pipelines and Aus-
0 tralian LNG producers. “LNG is ample
Expected to cut
0
Novatek and can freely fill any supply gap any-
February 2017 cut
Bashneft
where in the world,” Nechaev said.
10

24
Others Growth Requirement
One sign of the times in Russia was the
*Production from independent oil companies in Russia has continued to rise as bigger operators have
Production from independent oil companies in Russia has continued to fact that Irkutsk Oil was responsible for
lowered production to reduce ther surplus. Source Rystad Energy.
rise as bigger operators have lowered production to reduce their surplus.
one-third of the production growth in
Source: Rystad Energy.
Russia last year, said Matthew Sagers,
duction from independents, particu- when gas supplies were tight, and Russia managing director in energy for IHS
larly by the biggest one in this group, was able to demand top prices. Markit, which organizes CERAWeek. It
Irkutsk Oil. “Those days are gone now” as the sup- did that by running 32 drilling rigs in
“We do not currently see any evidence ply gap changed to a supply glut, said eastern Siberia, even during the worst of
of Irkutsk Oil or other smaller producers Maxim Nechaev, director of consulting in the oil slump.
planning to comply with the reduction Russia for IHS Markit. The company was born at the start of
program targeted, and thus there exists To grow, Russia has turned to Asia. To the century and has been growing about
an upside risk to the overall agreement,” reach those markets, it is building pipe- 35% a year, with funding for its drilling
said Veronika Akulinitseva, an analyst for lines, expanding energy export facilities program coming from investors in Japan,
Rystad Energy. at Pacific ports, and constructing gas liq- Europe, and the US, said Nikolay Buynov,
Russia remains the biggest supplier of uefaction facilities as part of a program to chairman and president of Irkutsk. While
gas to Europe, but an oversupply of gas push its share of the global LNG market Russia’s independent producers get little
there means it is scrambling to retain from 5% to 15%. attention, Buynov noted that investor-
customers demanding lower prices. That Export routes run in “two directions owned Russian oil companies are “a nor-
is a big change from earlier this decade and none of them are more important mal part of the industry.”

Irkutsk has grown rapidly by maintaining drilling,


even when prices dipped. Source: Irkutsk Oil.

28 JPT • MAY 2017


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The liquids-rich oil produced in eastern Siberia has led companies such as Irkutsk to build more processing plants to
produce feedstocks like ethane for domestic use and export. Source: Irkutsk Oil.

Independents are getting some notice development,” said Roman Panov, direc- like the skeleton of a fish, to effectively
now because, as a group, they added tor of the company, known as RosGeo. produce it.
24,000 B/D of production in February. “We are not pioneers” in the method,
The Rystad report said that if Russia hon- Greater Recovery said Vadim Yakovlev, deputy chairman
ors its promise to OPEC, the country’s top Russian producers have had to find ways of the management board, first deputy,
producers may have to cut deeper. to add production to offset declines chief executive officer, Upstream Gaz-
“It could be more challenging for in aging fields in east Siberia. Getting prom. “But what is special is how quickly
smaller operators to technically reduce what is left in those thick formations has we can go from testing to production.”
production, and also the impact from required adapting the tools used to pro-
such a reduction could hurt them more duce oil from ultratight unconventional Marketing Frontiers
than such producers as Rosneft, for formations for economical completions Russia remains the biggest single gas
example,” Akulinitseva said. in not-so-tight rock. supplier to Europe, and it is working
Reductions by Irkutsk would slow Russian production from “hard to to significantly expand its pipeline
development of Russia’s production fron- recover” reservoirs is now 1.3 million B/D delivery network.
tier in eastern Siberia, which offers both and is expected to rise to 2 million B/D, “Russia has more than enough gas sup-
huge potential and proximity to China. said Novak. ply to fill any gas supply gap in Europe,”
Rystad estimates that the company Since 2010, there has been a rapid said Reinhard Ontyd, chief commercial
added 30,000 B/D of production there rise in the use of horizontal drilling and officer for Nord Stream 2. Next year,
last year and could add up to 20,000 B/D multistage fracturing to stimulate tight a venture, whose western European
this year, with a breakeven price around Russian reservoirs with an average per- partners include Shell, hopes to get the
USD 30/bbl. meability of around 0.1 millidarcy or approvals needed to begin building an
Based on the oil in the ground in Rus- more, said Sergey Kudryashov, general offshore pipeline paralleling the route of
sia’s east, there is big room for growth. director of Zarubezhneft, a state-owned the Nord Steam 1 line, which it plans to
Last year, the Russian geology and oil company, with operations outside complete by 2020.
geophysics data company Rosgeologia of Russia. The problem for Russia is that Europe
acquired a record amount of seismic data When faced with unexpectedly com- is a slow- to no-growth market with
in eastern Siberia and the Russian Far plex rock, Russian firm Gazprom resort- ample supplies. More imported gas will be
East to meet the demand for explorers in ed to drilling horizontal wells in a fish- needed as the output declines from aging
a region that is “not covered by intense bone pattern, with branches of the lateral fields in the North Sea and the Nether-

30 JPT • MAY 2017


lands, according to a CERAWeek confer- they can buy gas cheaper on European chairman of Tellurian Investments, a US
ence panel on the European gas market. spot markets. LNG company he cofounded after being
Gas sales would also go up if Germany “Gazprom announced that it will exer- pushed out of Cheniere Energy, which
decides to switch from domestically pro- cise a more flexible price policy toward pioneered the US LNG export business.
duced coal to imported gas for electric- European customers by increasing, and He describes how this fleet of LNG
ity generation. While that would signifi- at times even switching fully to, spot- tanker ships will dampen price spikes by
cantly reduce emissions, Germany has based pricing,” Nechaev said, adding, delivering gas in places when supplies
no plans to do so. “This is supposed to stop erosion of are short, such as during a record cold
Another problem for Russia has been Gazprom market share in Europe and snap in Europe.
its involvement in the Ukrainian conflict increase customers’ loyalty.” But the future of his company, and
and the annexation of Crimea, which led Ontyd described how building Nord anyone else developing a gas delivery
the European Union to impose interna- Stream 2 will “enable competition.” That project, still depends on long-term con-
tional economic sanctions and a push tracts using a price formula that will gen-
there to develop alternative gas sources. erate the cash flow needed to convince
“Especially after the conflict in bankers to lend billions of dollars, and be
Ukraine, Gazprom gas sales in many attractive to consumers.
countries have gone down, and the Turkey 13% Italy 12% Oil-pegged contracts have
overall sentiment in the market worked in that role, but increas-
has been that if there were alter- ingly gas prices are not mov-
Belarus 8%
native sources of gas imports, ing in tandem with oil pric-
more countries would switch es. “Gas-on-gas competition
to other suppliers,” Akulinit- will lead to a decoupling on a
Belgium 5%
seva said. global scale to the oil mark,”
Russia is expected to remain Germany 22% Westby said.
Japan 5%
the biggest gas supplier for If Europe becomes a global
Europe, with a market share hub for the gas trade, a like-
ranging from 25% to 35%. France 5% ly candidate to replace oil in
But utilities there are seeking the price formula is the Title
Poland
other options. Transfer Facility (TTF). That is
Other 23% 4%
“We must promote secure sup- the price paid for gas at a virtual
Ukraine
ply at the European level going 3%
trading point used by Dutch trad-
three directions,” said Elio Ruggeri, ers. It is actively traded like its bet-
senior vice president for gas supply ter known counterpart, the Henry Hub
origination and infrastructures for price, which is the US benchmark used
Edison SpA, which is working on multi- Russia’s natural gas exports by for many contracts.
ple projects. destination. Source: BP Statistical Any change will take time. Russia’s
An east-west line will transport gas Review of World Energy 2016. gas contracts still include oil in the for-
from Russia’s planned TurkStream pipe- mula, said Sindre Knutsson, an oil and
line in Turkey to Italy, because Russia could prove to be true. When the gas from gas market analyst for Rystad, add-
“will be the main actor in the European a growing European pipeline network ing, “Even if Gazprom has been flex-
market for a long time to come.” is added to ready access to shiploads of ible in changing their contracts struc-
Another will go south and east to major LNG from the US and Australia, all that ture, they do not seem to turn fully to
gas discoveries in the eastern Mediterra- supply creates business opportunities. hub-indexed contracts.”
nean, including the Leviathan field off With surpluses in Europe and Japan, But Russia’s sprawling energy sector
Israel, to Europe. “traditional buyers will become sell- is also creating LNG competition in the
And a third will build regasification ers in the next few years” increasing Yamal project in the Arctic, where three
facilities to accommodate LNG tankers the amount of liquidity and trading in liquefaction trains are 90% complete
from around the world. the market, said Jonathan Westby, co- and will be coming on line in 2018 and
managing director for energy marketing 2019, said Denis G. Khramov, deputy
Liquid Pricing and trading at Centrica in the UK. “The chairman of the management board
This world of gas supply options is ability of Europe to provide swing capac- of Novatek, the gas producer leading
requiring Russia’s gas giant, Gazprom, to ity” will increase its role in the global gas the project.
become a lot more focused on customer trade, he said. Despite icing conditions and remote-
relations. European buyers are no longer Growth in gas liquefaction capacity ness from LNG markets, he said the sup-
willing to sign contracts with a gas cost by 2020 will put about “200 cargoes on plies from these projects will be econom-
formula based on the price of oil, when the water at any time,” said Charif Souki, ically viable and competitive. JPT

JPT • MAY 2017 31


New Automated Hydraulic Fracturing
Tech Cuts Time and Workforce Needs
Trent Jacobs, JPT Digital Editor

I ntroduced earlier this year by


Schlumberger, a trio of hydraulic frac-
turing systems represents one of the
This new product line will form part
of the recently announced joint venture
between Schlumberger and Weatherford
exemplify what the company was aim-
ing for when it launched an effort 4
years ago to identify inefficiencies in its
latest steps toward a more automated that combines their fracturing fleets. field operations.
oil field. And notably, it rolls out just months That work involved examining “every
This new hardware is already work- ahead of the expected launch date of single minute or second that’s spent
ing in the North American unconven- Schlumberger’s first automated land on location, and understanding why
tional sector where the world’s larg- drilling rig. we’re not being productive at any point
est service company says the growing The large extent to which automation in time,” he said. “What we found out
intensity of horizontal well programs technologies will assist in the opera- was that the vast majority of issues
demands that the next wave of frac- tion of these advanced assets means oil that we started seeing in 2012 and 2013
turing technology come loaded to bear and gas producers using them will need were centered around the backside of
with sensors and real-time data stream- fewer people and less time to drill and the equipment.”
ing capabilities. complete their wells. Specifically, Goettsch said problems
Dubbed an “automated stimulation By the company’s calculation, the with the blending and hydration units,
delivery system,” its three main pieces automated features of the missile man- used to mix sand with fluids and fractur-
are a vertical silo system for sand or ifold trim up to 15 minutes from the ing chemicals, were causing significant
proppant management, a process trail- job times of each fracturing stage. That delays. To a lesser extent, the company
er for blending and hydration, and a may not sound like precious time, but also saw room for improvement with
missile manifold that channels pressur- because today’s horizontal wells aver- sand management and logistics.
ized fracturing fluids into the wellhead. age more than two dozen stages each, One change made in the name of
Prototypes of each system spent a year the company reports that those minutes increased reliability is that the units
in the field before entering commercial could add up to 2 days a month. are all electrically powered vs. older
service, and during that time, helped Terence Goettsch, an equipment systems that depend on hydraulic con-
send almost a billion pounds of sand portfolio manager of well services at trols or diesel motors. This move, and
down horizontal wells. Schlumberger, explained that such gains the extensive use of sensors and analyt-
ics software, show how Schlumberger
is keen on improving the life span of its
capital-intensive assets.
In the past, the operational strategy
for fracturing equipment was to rely on
statistical data for maintenance sched-
ules, or to simply “run it until it breaks,”
said Oscar Javier Rodriguez, the vice
president of well services coiled tub-
ing and stimulation at Schlumberger.
Now, with a host of “health monitoring”
technologies for large equipment read-
ily available to service companies, it has
become easier and more cost-effective
to adopt real-time performance analysis
and preventive maintenance strategies.
Yellow actuators on the valves of this missile manifold are about the only
outward sign of the unit’s automated capability. Without humans having
Two Become One
to open or close these valves, a high-pressure risk has been removed and To improve the blending and hydration
valuable time can be recaptured. Source: Schlumberger. units, Schlumberger redesigned them as

32 JPT • MAY 2017


a single system that instead of requiring stages—a 220% increase since 2008
BOHRIS
two people to run only needs one. That
worker is aided by software that con-
when many contemporary fracturing
systems were designed.
Simply look deeper.
trols the processing systems, ensuring Rodriguez emphasized that this BOHRIS offers:
the proper fracturing fluid recipes are particular efficiency gives meaning- > Comprehensive well data management
being sent downhole. Sensors embed- ful time back to operators. “When you
> Standardized visualization of schematics
ded inside the unit report performance shave 10 to 15 minutes off before every including well barrier schematics
data, which is fed back to the company’s stage, you are saving on the order of > Precise calculation of safe well operating
new 24-hour asset monitoring center 2  days per month to your fleet—which pressures for specific well completion
that opened last year in Dallas. is going to allow you to pump more > Options to consider casing pressure
If a critical component is showing jobs,” he said. derating through specified wall thickness
signs of fatigue, which may be indi- reductions
cated by higher-than-normal tempera- Inventory Management
tures, analytics software alerts main- The silo system—composed of four sep-
tenance experts at the monitoring arate silos—stands about 60 ft tall and
center. “At that point, we can start to has a maximum capacity of 1 million lb,
plan ahead,” Goettsch said, adding that which comes out to about 20 truckloads
might mean “we need to either bring in of sand. With automated systems mov-
another unit or have our mechanic and ing the sand up and into the silos and
electronics tech go look and see what sensors taking weight measurements,
the actual issue is, because it could be operators know where it is going and
something as simple as a valve that was exactly how much of the sand it pur-
incorrectly closed.” chased is actually being delivered.
The main driver for the redesigned Trucks are also weighed before and
missile system was to address the safe- after they unload to add another layer
ty risk introduced whenever a pumping of inventory control. Rodriguez related
truck fails. When this happens, com- that sand is sometimes delivered wet
panies typically send someone to close to a location, which makes it hard to
a valve and bleed pressure from the line unload it all and could result in a truck
connected to the downed pump. driving off-site with as much as 30%
But Schlumberger’s safety rules forbid left inside.
this due to the risk of someone becom- Silo systems, which have been in use
ing confused and opening the wrong for years by other service companies,
valve, which means the entire pump- are known to have a few benefits includ-
ing operation must shut down prior to ing the alleviation of pad site congestion
an inspection. and the reduction of silica dust expo-
“We wanted to eliminate all the per- sure to crews. The conventional alterna-
sonnel from ever having to walk into tive is to use pneumatically compressed
the area, but in conjunction with that, air units called sand chiefs to blow sand
0 - DAY
we didn’t want to have to terminate the from a truck, through a hose, and into FREE 3 RSION
E
job,” said Goettsch. To get there, actua- storage containers.
TRIAL V L ABLE
tors were put on the valves so crews can Not only does this process tend to A I
– AV AY
remotely open or close them from the generate silica dust, it may also take IN M
safety of a control cabin. from 30 minutes to an hour to com-
The system’s software also removes plete for a single truck. Sand chiefs have
any doubt about which valve is con- another downside in that they demand
nected to which line by automatical- the involvement of several workers,
ly pairing them as they are hooked up. some who are just waiting around for
And with no need to manually turn the the sand transfer to be completed. By
valves, the pressure pumping units can contrast, Schlumberger’s silo system is
be primed up faster in preparation for a operated by just one person.
fracture stage. And at a rate of 5,000 lb/min, a truck
This work only takes a few minutes can drop a full load of sand into the sys-
to complete with conventional equip- tem in just 10 minutes and then quickly
ment, but that time stacks up since the exit the wellsite. With two loading sides,
average horizontal well today has 28 that rate jumps to 10,000 lb/min. JPT

JPT • MAY 2017 www.innogy.com/esk/BOHRIS


A horizontal rig working in the Vaca Muerta
shale play where a number of operators and
new pilot projects are expected to help spur
on more development. Source: Yacimientos
Petrolíferos Fiscales (YPF)

Optimism and Activity


Rising in the
Vaca Muerta
Trent Jacobs, JPT Digital Editor

C onfidence in the geologic poten-


tial of Argentina’s unconventional
resource plays is higher than ever, which
the end of last year, YPF has been by far
the most active shale operator in Argen-
tina. Eighty of those wells are horizontals
This is a shift from the initial programs
that targeted the oil window and is being
driven by a newly elected government
is turning the focus to how and when in the Loma Campana field, operated as a that is aiming to reverse the country’s
oil and gas producers there will ramp joint venture with Chevron. position as a net importer of gas.
up commercial levels of production. At The first were drilled and completed
stake is whether the well-known Vaca there in 2013, and the most recent have Falling Well Costs
Muerta formation will become a shale shown an average productivity increase Speaking at the IHS Markit CERAWeek
superpower—and the first outside of of 25%, a figure based on 300 days of conference in Houston earlier this year,
North America. production data. In all, YPF drilled 56 Miguel Gutiérrez, the president of YPF,
Its immense reserves, estimated to be horizontals last year, showing that it has expressed a bullish tone for the future as
308 Tcf of gas and 16 billion bbl of oil, picked up the pace compared with 2015 he said horizontal well costs in the Loma
according to the US Energy Information when 30 were drilled and the 2 years Campana field have fallen from around
Administration, and the work done so prior when a combined five were drilled. USD 17 million in 2013 to USD 8 million
far to prove them has attracted commit- The gas portion of the 62,300 BOED at the end of last year.
ments of billions of dollars from inter- YPF is reporting in gross shale produc- He added that new horizontal wells
national majors BP, ExxonMobil, Shell, tion (which includes areas outside Loma are generating returns at USD 40/bbl
and Chevron. Campana) represents 22% of its total and that drilling times have been slashed
But leading the pack is the domes- natural gas production. That will be an from 40 days to just 15—figures that are
tic explorer and producer Yacimientos important piece of the pie chart to track comparable to ones shared by some top
Petrolíferos Fiscales (YPF). The com- going forward because the majority of US shale producers. These trend lines
pany’s progress may offer a reasonable YPF unconventional programs, and those have Gutiérrez “totally convinced” that
expectation of what the future holds. of its competitors, have become increas- the Vaca Muerta can one day rival the
Operating more than 540 shale wells ingly focused on boosting Argentina’s output of the Permian Basin but “the first
in the Vaca Muerta and running 44 rigs at gas supplies. thing we had to do was reduce the costs.”

34 JPT • MAY 2017


However promising they may be, the
Loma Campana results are not a rep-
resentative sample. The programs that
operators, including YPF, are running
elsewhere in Argentina are in even ear-
lier-stage exploration modes and have
drilled dozens of horizontal wells,
not hundreds.
Most firms have achieved two or three
new horizontals a year so far, however,
the hope is that these companies will be
picking up the pace as YPF has in the
Loma Campana. If so, there is reason to
believe that a breakout of development-
mode activity across the Vaca Muerta
could come sometime early next decade.
YPF President Miguel Gutiérrez (left) and Shell Argentina President Teófilo
Lacroze signing a new joint venture that will see the latter firm investing
Chevron’s Subsurface Learning USD 300 million on a new unconventional pilot program in the Vaca Muerta.
In addition to being the most active This deal is just one of 10 pilots that YPF is planning to launch in 2017.
unconventional field, YPF’s Loma Cam- Source: YPF.
pana program is benefiting from the
collaboration of nonoperating partner climb the learning curve and lower aver- tal wells. Crespo said this work involves
Chevron, which is able to leverage its age well costs. optimizing production through choke
North American experience in the analy- Studies completed so far have relied on management techniques to protect the
sis of field data from Argentina. microseismic surveys, oil and water trac- conductivity of hydraulic fracture net-
Pablo Crespo has been involved with ers, permanent downhole gauges, and works while also avoiding produc-
the project since the first well was drilled, multiple types of logs. The data from this tion delays.
initially for YPF and now as a senior work have been built into static models But since well designs are still evolv-
reservoir engineer of unconventional which Chevron is now trying to link to ing, it has made choke management a bit
resources with Chevron. dynamic models that can deliver even of a moving target. “We are migrating to
He described that in addition to the more insight into reservoir behavior. drilling longer and longer lateral wells,”
Loma Campana, Chevron is involved in Once that step is completed, the aim is to he explained, “and so you can’t use the
an exploratory project in another Vaca begin using hydraulic fracturing models same choke for a well that has 1000-m
Muerta block known as the Naram- to improve completion designs. lateral length for one that is 3000-m
buena. There, engineers are deploying Other models are helping determine length,” adding that the key is to opti-
advanced diagnostic technologies to best practices for producing horizon- mize the drawdown.

To encourage extraction efforts, the federal


government has enacted some of the
largest industry-focused measures in years,
including setting a subsidized price floor
of USD 7.50 per MMBtu of domestically
produced gas that will expire at the end
of 2020.
Agreements are also in place to reform
tax laws, relax labor union rules, and build a
USD 1.2 billion railway for logistical support
that will connect supply hubs in the capital
Buenos Aires to the heart of the Vaca Muerta.
For their part of the bargain, operators of
government-awarded shale blocks have
said they will invest around USD 5 billion
this year—a sum that is expected to grow
in subsequent years.
The palace of the Argentine National Congress. Source: Getty.

JPT • MAY 2017 35


the ongoing pilot effort is to use micro-
seismic data to interpret the fracture
heights and lengths—critical metrics for
shale optimization.
Cristian Espina, the technical manag-
er for unconventionals at Pan Ameri-
can, said the company is confident that
it has characterized its position in the
Vaca Muerta from a static geologic point
of view, and like its larger competitor,
is now learning how to characterize its
dynamic behavior to identify its produc-
tion drivers.
“That is going to be the key to opening
this play up, because if we understand the
dynamics between the fracs, the wells,
and the different landing zones, then we
will be able determine if this play is eco-
nomic,” he said. Other technologies are
being used here as well including trac-
ers, rate-transient-analysis, and soon
fiber-optics will be deployed to deliver
real-time production data from inside
the wells.
Stepping out lateral lengths is also
a focus of Pan American which has in
recent years moved from 800-m to
1000-m and recently, 1500-m wells. In
the new lateral wells the number of frac
stages has also been stepped up from 15
to between 21 and 25. This is driving the
intensity of the fracturing jobs by requir-
ing more sand and water. The next step is
to move to 2000-m laterals.
But for all the progress being made in
Argentina, most people involved in the
The Vaca Muerta shale formation is found in the remote Neuquén basin of
projects there wish things could move
Argentina. Unconventional activity began in the play’s oil window in 2010 but
the focus has since moved to the gas fields to help meet domestic demand. faster. A factor seen as holding back the
Source: US Energy Information Administration and Advanced Resources ramping up of activity is that the country
International. has only six operators working on uncon-
ventional projects. “I don’t think that’s
The engineers and earth scientists that’s a very good producer in this area, the best scenario to develop these kinds
working on this project are also try- how can I extrapolate the knowledge to of plays,” said Espina, who explained that
ing to determine where the best land- 5  or 10 km away from that well. That’s with more companies would come more
ing zones are. Though there are sever- part of the learning program.” wells, which in turn would accelerate the
al hydrocarbon-rich benches of the Vaca learning curve on drilling, production
Muerta, not all have been proven. The use Pan American Following Suit techniques, and logistics.
of microseismic and chemical tracer tech- Pan American Energy, BP’s Argen- If there were also more service com-
nologies should help narrow the target tine subsidiary, is among those com- panies and technology vendors, Espina
list down, said Sergio Cuervo, a geoscien- panies working through many of the said it would give operators even great-
tist on Chevron’s Vaca Muerta asset team. same challenges outlined by YPF and er leverage to lower costs. “For exam-
The challenges in this come back to the Chevron’s experience. ple, the companies who provide sliding
relatively low number of wells that have After drilling about 90 vertical wells sleeves for fracturing, we only have a cou-
been drilled thus far. “We are going to in a tight sand gas area of the Vaca Muer- ple of them—while in the United States,
need a lot more wells to confirm our the- ta, the company now has at least 10 hor- you have many, many people working on
ories,” said Cuervo. “If I identify a bench izontal wells completed there. Part of that,” he said.

36 JPT • MAY 2017


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EOR Project in the Vaca Muerta
Shale Gives Water for Oil
Trent Jacobs, JPT Digital Editor

N ew research from Argentina is


trying to see if the Vaca Muerta
shale formation is a viable candidate for
The chance to prove these benefits
attracted shale explorer Pan American
Energy to the project last year through
which showed that multiple sections of
Vaca Muerta reservoir rock are prone to
imbibition. In fact, Tuero believes the lab
enhanced oil recovery (EOR). The labo- a joint venture with VYP. The operator, a tests may represent the first time crude
ratory and field experiments completed subsidiary of BP, granted VYP access to a oil was effectively extracted from shale
so far are promising, which in itself is a 4-year-old well in the Vaca Muerta where purely through an imbibition process.
notable development since there have the most recent testing took place. There are a couple of important factors
been very few breakthroughs on this Tuero is withholding the details of that at play here, one of them being that there
front for the shale sector. test, but indicated that the initial signs may be many areas of the Vaca Muerta
The companies leading this work, were positive. “What we can conclude is that are water-wet as opposed to oil-wet.
Buenos Aires-based VYP Consultores that imbibition was taking place, and was This means when more water is intro-
and InLab, are using a simple huff-and- taking place very quickly,” he said. duced, the formation will naturally allow
puff approach to shale EOR that involves The full results will be presented in it to be absorbed into the matrix. “And
injecting produced water back into a July at the SPE/AAPG/SEG Unconven- what comes out when the water goes in
well for a soaking period of 30 days. tional Resources Technology Confer- has to be oil or gas,” Tuero explained.
During this time, with the well shut in, ence being held in Austin, Texas. Perhaps “That process is done at a ratio of 1:1—
the formation does most of the work the most important thing to be revealed so it’s very effective.”
through imbibition; i.e., the water goes is whether the improved recovery was The other critical enabler for EOR in
into the formation, and exchanges plac- worth the 30-day wait; in other words, this case is the strength of the capillary
es with hydrocarbons. will it be seen as a commercially viable forces that are understood to be a strong
“If we can take advantage of these EOR method? influencer of how shale formations pro-
imbibition forces, then we can really Tuero said the research team has gone duce oil and gas.
change the way shales are looked at,” through a series of validation exercises in This capillary dominance is the result
said Fernando Tuero, the president of the lab and the field that were complet- of the extremely tight permeability of
VYP, a firm that prior to this research ed prior to this latest experiment, all of shale rocks, and importantly, Tuero said,
has been known more for its work on in certain circumstances it is a more
secondary recovery projects in Argenti- powerful force than the typical drivers of
na’s mature oil fields. The company has conventional reservoirs—the viscosity of
been working jointly with InLab, a well- the hydrocarbons and gravity.
established petrophysics laboratory in And though this effect is something
Argentina, to validate its EOR approach. that has been studied for years by petro-
Tuero said based on the lab experi- physics academics, capillarity is rarely
ments and modeling, it is thought that up cited as a production driver by operators.
to 15 huff-and-puff cycles could increase Tuero said the topic is worthy of greater
the hydrocarbon recovery by as much as investigation since so many operators in
40% before diminishing returns kick in. Argentina and North America routinely
Replicating anything near that figure in observe only small fractions of the water
the real world would be quite extraor- used in hydraulic fracturing treatments
dinary since most people peg primary returning to the surface.
shale recovery between 3 and 7%. “That was the first anecdotal evidence
The potential to increase shale pro- that nobody could explain,” he said, not-
ductivity by such margins would mean ing that some people have argued that
that oil and gas producers could not the stimulation water is just going into
The light crude shown in this
just benefit from higher long-term out- sample is thought by researchers in
fractures very far from the well. How-
put, but they could also be more com- Argentina to be the first oil extracted ever, in the early days, “Very few people
petitive with how they value prospective from a tight shale rock via imbibition. mentioned capillarity as a reason for the
drilling locations. Source: VYP Consultores/InLab. water disappearing.” JPT

38 JPT • MAY 2017


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India Asks Big Oil Companies
“Where Do You Want To Drill?”
Stephen Rassenfoss, JPT Emerging Technology Senior Editor

I ndia is putting its aggressive program to


sharply reduce oil and gas imports over
the next 5 years to the test with an upcom-
The country is trying to reach the goal
set by India’s Prime Minister Narendra
Modi to reduce oil and gas imports by
tion,” said Dharmendra Pradhan, the
minister in charge of the Ministry of
Petroleum and Natural Gas, India, dur-
ing bidding round aimed at winning back 10% by 2022. ing a presentation at the recent IHS
international oil companies with the skills To increase the odds of getting bids, Markit CERAWeek conference in Hous-
and money to make major discoveries. operators have been asked to choose the ton. At the conference, the government
Last year’s discovered small fields blocks they want included in the bid- announced the bidding round at a meet-
auction by state oil firm ONGC attract- ding round to be held later this year. The ing drawing top executives from inter-
ed strong bidding from smaller Indian contracts are based on revamped energy national companies.
players, many new to the business. policies designed to eliminate the regu- Indian energy officials need the
But “this is much more ambitious,” lation that limited international interest exploration help as domestic produc-
said Atanu Chakraborty, director gen- in the past. tion falls further behind the explod-
eral of India’s Directorate General of “The government is not in the busi- ing level of demand. The percentage of
Hydrocarbons (DGH). ness of trying to micromanage produc- imported oil has risen from nearly 77%
about 3 years ago to 82% in the current
fiscal year, Pradhan said, according to a
recent report.
Given the time needed for large
exploration and production (E&P) proj-
ects, a 10% reduction in 5 years is a
stretch. Adding to the difficultly is rapid
demand growth due to the 7%-plus
annual increase in India’s gross domes-
tic product.
“There is skyrocketing demand in
almost every energy sector,” said Charles
Ebinger, senior fellow at the global ener-
gy center of the Atlantic Council, during
a panel session at the conference.
There is oil and gas potential there.
DGH estimates it has produced only 3%
of its proven natural gas reserves and
around 5% of its proven oil reserves.
While it is not a big oil and gas produc-
er, the 115 drilling rigs working there in
mid-February were just behind the 120
rigs drilling in Saudi Arabia, according
to the Baker Hughes rig count.
E&P is dominated by the national oil
company ONGC, with other govern-
Category-I Basin Category-II Basin Category-III Basin
(Proven commercial productivity) (Identified prospectivity) (Prospective basins) ment-owned companies and some local
Category-IV Basin Pre-Cambrian Basement/ Deepwater Areas independents working as well. But in a
(Potentially prospective) Tectonized Sediments within EEZ country with more than 3 million km2 of
The proven producing oil and gas basins in India (orange) cover a fraction sedimentary basins, where gas discover-
of the area with gas and oil exploration potential (pink, yellow, green). ies have been more common, it imports
Source: Directorate General of Hydrocarbons. 50% of its gas.

40 JPT • MAY 2017


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Curious explorers can look for oppor-
tunities on DGH’s recently opened
National Data Repository. It holds 160
terabytes of seismic surveys, well logs,
and production reports. Most of the data
were gathered within 500000 km2 in
India’s 26 sedimentary basins. “We hope
the data will attract investment by reduc-
ing risks,” Chakraborty said.
Maps showing where the data were
gathered indicate that are from parts of
India with concentrations of past discov-
eries, with little coverage on the frontiers.
The repository fills a gap in India
where seismic data have not been readily
available to international companies con-
sidering exploration there. Chakraborty
said it will be available for a nominal fee.
Indian energy officials have also been
publicly pushing the biggest national
oil companies to expand their seismic
data collection and make that available
The areas covered by seismic and well data held in India’s National Data
through the repository. Repository largely coincide with where there is oil and gas production.
The repository holds hundreds of Source: National Data Repository.
onshore and offshore seismic surveys as
well as well and log data from thousands cessful auction. That round sold 31 of and interests have strong Indian ties,
of wells according to a summary sheet 46 blocks offered, with the strongest Chennakrishnan said
that suggests that it will grow significant- interest onshore (23 of 26 blocks award-
ly over time. But it does not offer any pro- ed onshore, and 8 of 20 awarded off- More Pipelines
duction data. shore). The 31 awarded blocks were mar- An advantage India can offer is an
“India does not have an open data pol- ginal discoveries, most of which were enormous base of potential custom-
icy,” said Balaji Chennakrishnan, found- surrendered by ONGC. Interest was ers nearby, but major construction is
er and chief executive officer of Telesto strongest onshore. required to deliver gas to them.
Energy, an energy consultant with an Of the 19 private companies submit- “There are 15000 km of gas pipe-
analytics operation based in India. “DGH ting winning bids, 15 of them were new lines now. We are working on doubling
is the custodian of data in India but still to the sector. New rules eliminated strict that, and adding a big LNG regasification
ONGC and other companies do not part limits on bidding by those without past facility,” Pradhan said.
with complete data.” experience as an operator. Most of the There are “prodigious challenges”
rest of the acreage went to government- associated with executing that plan,
Discovered Fields owned entities and, in one case, a pub- Ebinger said. He explained that oil com-
The directorate is trying to build on the lic-private partnership. While there was panies learned in the past that “land
success of last year’s discovered fields one winning bidder listed as foreign, acquisition is hard, just knowing who
round, which showed it could run a suc- South Asia Consultancy, its ownership owns it can be a challenge.”
A survey of risks facing investors in the
Indian oil sector last year gave less than
The auction process laid out in a DGH flow chart includes the following:
a top mark in only one area: potential
◗ A company can apply for a production contract giving 8 years to explore a
block, or a reconnaissance contract providing 3 years to study a block, with
problems associated with executing proj-
an option to switch to a production contract.
ects. Chakraborty responded that the
◗ If interested, a bidder proposes a block to the DGH, which decides if it will “project risk is about what it would be
be offered. anywhere else in the developing world.”
◗ A list of available blocks will be published before the auction. While Ebinger talked about the many
◗ A production contract offer requires a revenue-sharing offer as well as details obstacles to modernizing the Indian
about the operator’s experience, work plan, and financial resources. energy sector, he added that based on
◗ Online bids are evaluated—those proposing blocks receive an incentive—and what is he has seen on many visits going
a  winner is declared. back decades, “India is on the cusp of a
◗ Based on the timeline, the process takes 23 weeks.  major transformation.” JPT

42 JPT • MAY 2017


SPE Board Announces Nominees
2019 President and 2018 Directors
Sami Al-Neaim is the nominee for 2019 SPE President. He and eight others make up the slate
of nominees recommended for positions open on the SPE Board of Directors.
Joel Parshall, JPT Features Editor

2019 SPE President Before joining Concord, Cantrell was chief executive officer
Sami Al-Neaim has been with Saudi of Kerns Petroleum in San Antonio. She previously held various
Aramco for 30 years, where he has worked engineering positions with Samson Resources in Tulsa and with
in reservoir engineering, production engi- Chevron in Houston and Midland, Texas.
neering, research and development, and at Cantrell is a registered professional engineer in Texas and
the upstream computer center. He currently has given many years of service to SPE. She received the Region-
serves as manager, Petroleum Engineering al Service Award in 2010 and is currently chair of the SPE
Application Services, where he has full Balcones Section. She has a BS degree in petroleum engineering
responsibility for providing technical information technology cum laude from Texas A&M University.
support to all upstream operations, including exploration, drill-
ing, production, reservoir engineering, and facility design. A Management and Information Technical Director
current area of focus is reservoir simulation of giga cells and Birol Dindoruk is a principal technical
giga models using Saudi Aramco’s GigaPOWERS simulator. expert and team leader in international res-
Al-Neaim has a long history of service to SPE and is cur- ervoir engineering for Shell. He is an adjunct
rently a member of the SPE Middle East Board of Directors. faculty member at the University of Hous-
He has won several local, regional, and international awards, ton department of petroleum engineering
including the SPE Regional Service Award for the Middle East and a consulting professor at the Stanford
in 2010 and the SPE Distinguished Service Award and SPE Dis- University energy resources engineering
tinguished Member in 2011. He currently serves on the society’s department. He is a global consultant for fluid properties (pres-
DeGolyer,  Rand, and McConnell Awards Committee and the sure/volume/temperature) and miscible/immiscible gas injec-
2017 SPE Annual Technical Conference and Exhibition Execu- tion enhanced oil recovery and reservoir simulation.
tive Advisory Committee. Before joining Shell in 1997, Dindoruk worked at the Amoco
He has published a number of technical papers, holds sever- Tulsa Research Center on compositional simulator develop-
al patents related to well performance, and teaches petroleum ment projects.
engineering at King Fahd University of Petroleum and Miner- Dindoruk is a recipient of the SPE Cedric K. Ferguson Medal
als (KFUPM). Al-Neaim serves on the petroleum engineering (1994) and Lester C. Uren Award (2014). He was selected
departments’ advisory boards at KFUPM and King Saud Univer- this year as a member of the National Academy of Engineers.
sity. He is a key figure in the Saudi and Middle Eastern energy Dindoruk has served SPE in various capacities, including as co-
and media sectors, having published more than 300 articles on Executive Editor of the Formation Evaluation/Reservoir Engi-
oil and gas and energy in Saudi newspapers. neering Journal (2004–2006) and as a Distinguished Lecturer
Al-Neaim obtained BS and MS degrees from KFUPM, and a for 2010–2011.
PhD degree from the University of Texas at Austin, all in petro- He holds a BS degree from Istanbul Technical University, an
leum engineering. He completed the Wharton Executive Man- MS degree from the University of Alabama, and a PhD degree
agement program at the University of Pennsylvania and the from Stanford, all in petroleum engineering, and an MBA
Advanced Asian Business and Culture Program from the Cen- degree from the University of Houston.
ter for Global Business Studies at Pennsylvania State University.
South, Central, and East Europe
Southwestern North America Regional Director Regional Director
Elizabeth J. Cantrell is executive vice presi- Jean-Marc Dumas is the founder of PCMC,
dent and chief operating officer at Concord an international consulting and engineering
Oil Company and affiliates in San Antonio, contractor in Paris, France, that has special-
Texas. She has held leadership positions ized in energy since 1998.
with independent and major companies, Dumas began working for Total in the
having managed projects in many United Middle East and then in Asia as a develop-
States basins and internationally. ment engineer. In 1983, he joined Coflexip

JPT • MAY 2017 43


(now TechnipFMC), where he was in charge of export sales pro-
motion. Dumas subsequently worked for Perrotin Corporation How SPE Board Members
(now Reel Group) as a plant and sales manager. Are Selected
He has spent much of his career in international and execu-
tive positions that have included technical responsibilities in SPE is governed by a Board of Directors comprising
the petroleum production, development, research, and refin- 28 member representatives from around the world.
ing sectors. Each SPE region and board-endorsed technical
Dumas founded the SPE France Section in 1984 and held discipline is represented by a director. These
various positions, including leader of the industry advisory directors, together with one at-large director, a
committee, editor of the monthly magazine La Lettre de la director of academia, the president, president-elect,
SPE France, and section chairman. He is a recipient of the SPE immediate past president, and vice president of
South, Central, and East Europe Regional Service Award (2010) finance, constitute the Board.
and the SPE Distinguished Member Award (2016). Dumas was Here is a look at the nomination and election
elected Honorary President of SPE France in 2016. processes for Board members.
He earned a BS degree in mechanical engineering from Ecole
Nominating a Candidate
Nationale d’Ingénieurs Tarbes, an MS degree in metallurgy and
The nomination period opens in September each year
welding from Ecole Supérieure du Soudage et des Applications
and ends on 1 December for the position of president
Paris, and an MBA degree from IFG Paris.
and 15 December for the other open positions.
Any SPE member may nominate a candidate
Health, Safety, Security, Environment, for a position on the Board. The process involves
and Social Responsibility Technical Director submitting an online nomination form and supporting
Johana Dunlop has worked for Schlum- documents, such as a curriculum vitae, résumé, and
berger for the last 25 years, most recently as letters of support.
director of sustainability integration. She is
deeply committed to the importance of the The Election Process
industry being recognized for its critical Candidate nominations submitted online are reviewed
role in the quality of life globally, while it by the SPE Nominating Committee. Chaired by the
simultaneously raises its standards of envi- immediate past president, the committee meets in
ronmental and social performance to the point of achieving the January to make recommendations for the available
full integration of sustainability factors in decision-making, positions. These recommendations are submitted
performance accountability, and innovation for the future. to the SPE Board of Directors for approval at the
Since 1998, Dunlop has focused on supporting Schlum- Board’s meeting in March. This year, the meeting was
berger in advancing and accounting for its sustainable devel- held on 26 March in Bangkok, Thailand.
opment performance, in particular for local content, social
risk management, human rights, greenhouse gas emissions, Following Board Approval of Nominees
SPE members will have the opportunity to review the
community outreach, and issue management. Previously,
Board-approved nominees’ biographical information
she was the risk manager for the wireline, seismic, and data
in JPT and on www.spe.org.
management businesses.
Nominees approved by the Board stand as elected
For the past 10 years, Dunlop has actively served SPE and the
unless SPE members nominate additional candidates
International Petroleum Industry Environmental Conservation by 1 June. Additional nominations require a petition
Association. She led the development of the SPE sustainability from at least 1% of SPE membership. For regional
strategy and is the chair of the SPE Sustainability Technical Sec- director nominations, the petition must be signed by
tion. With a colleague from Total, Dunlop cofounded a profes- at least 1% of the region’s membership, and no more
sional network for women in sustainability and business. than 75% of the petitioners may come from any one
She has an MS degree in management, a BA degree with hon- section within the given region. A ballot election
ors in the liberal arts, and a professional Associate in Risk Man- will be held if any qualified petitions are received
agement designation from the Institute of Risk Management. by 1 June.

Director for Academia The Board Takes Office


Ramona M. Graves is the dean of the Col- If the Board slate is elected, the person nominated
lege of Earth Resource Sciences and Engi- as president would take office as president-elect at
neering and a professor of petroleum engi- the close of the SPE Annual Technical Conference
neering at the Colorado School of Mines in and Exhibition. This year, the conference will be held
Golden, Colorado. She has an extensive during 9–11 October in San Antonio, Texas.
background in multidisciplinary reservoir
characterization, rock mechanics, environ-

44 JPT • MAY 2017


mental issues in petroleum development and production, and ter’s degree in business administration from the INALDE Busi-
high-power-laser-rock-fluid interaction. ness School at the Universidad de La Sabana.
Graves has taught industry short courses on these topics
throughout the United States, South America, Australia, Rus- South Asia and the Pacific Regional Director
sia, the Far East, and Europe. She is a Distinguished Member of Tapas Kumar Sengupta is director (off-
SPE. She serves on SPE’s Academic Advisory Committee and is shore) at ONGC and is based in New Delhi,
a member of the Research and Development Technical Section. India. He has more than 36 years’ experi-
Graves has a doctorate in petroleum engineering from ence spanning a wide variety of upstream oil
the Colorado School of Mines and a bachelor’s degree in and gas functions, including well services,
mathematics and physics from Kearney State College. She facility engineering, deepwater develop-
also holds an honorary doctorate from the Mining Univer- ment, asset management, and joint-venture
sity of Leoben, Austria, which was awarded in recognition of operations. Sengupta has been involved in in many high-value
her scientific achievements and contributions to the field of offshore and onshore projects in India and internationally.
petroleum engineering. Representing ONGC’s overseas interests, Sengupta held the
position of general manager at the Greater Nile Petroleum
Russia and the Caspian Regional Director Operating Company in Sudan, where he was responsible for
Aizhana Jussupbekova is the Satellites production operations from oil fields in the country’s Heg-
reservoir engineering lead at the North lig area. He also heads ONGC’s marketing, joint ventures,
Caspian Operating Company (NCOC), and business development groups and is director in charge
Atyrau, Kazakhstan. Her work experience of ONGC Petro Additions, which is a mega-petrochemical
includes dynamic model building, reservoir joint venture.
simulation, depletion and development Sengupta has participated in various SPE events in India and
planning, reserves estimation, and project abroad as a panel speaker, session chair, and keynote speaker.
coordination. Before being seconded to NCOC at Astana, He was recognized as an SPE Distinguished Member in 2012. He
Kazakhstan, she worked as a reservoir engineer for ExxonMobil has chaired the SPE Mumbai Section since 2014.
in Houston. He holds a bachelor’s degree in chemical engineering from
Jussupbekova joined SPE in 2006 while at Texas A&M Univer- Jadavpur University, a diploma in management from Indira
sity. She served as a student chapter officer in 2007, cofounder Gandhi National Open University, and certificates in leadership
and programs chair of the Astana Section in 2013, a member of management from EACP, Paris, and the International Manage-
the global Energy Information Committee in 2015–2017, and ment Institute, New Delhi.
SPE Caspian Conference and Exhibition co-chair and chair in
2014 and 2016, respectively.
She holds a master’s degree in petroleum engineering from The nominated directors will serve on the Board of Society of
Texas A&M, and bachelor’s and master’s degrees in chemistry Petroleum Engineers (SPE), Inc. along with these continuing
from Kazakh National University. directors who are also confirmed as nominated and elected:
Adeyemi Akinlawon (2016–2018), Regional Director, Africa;
South America and Caribbean Regional Director Tom Blasingame (2016–2018), Technical Director, Reservoir
César Patiño is a technology specialist Description and Dynamics; Roger Hite (2016–2018), Region-
in  enhanced oil recovery at Ecopetrol al Director, Gulf Coast North America; Janeen Judah (2016–
and  an  expert adviser on oil and gas 2018), 2017 President; Erin McEvers (2016–2018), Regional
sector innovation. Director, Rocky Mountain North America; Jennifer Miskimins
Patiño’s experience includes oil develop- (2016–2018), Technical Director, Completions; Roland Moreau
ment project work in Chad, leadership of a (2016–2018), Vice President, Finance; Andrei Popa (2016–
formation evaluation team, and field oper- 2018), Regional Director, Western North America; Phongsthorn
ations management in Venezuela. He has held assignments Thavisin (2016–2018), Regional Director, Northern Asia Pacif-
throughout Africa, Europe, and Latin America. ic; Khalid Zainalabedin (2016–2018), Regional Director,
He founded an SPE young professionals group within the Middle East.
Colombian Section and a chapter of the Society of Petro- Joe Frantz (2017–2019), Regional Director, Eastern North
physicists and Well Log Analysts, as well as starting various America; Karl Ludvig Heskestad (2017–2019), Regional Direc-
social and technology initiatives to support the integration tor, North Sea; Chris Jenkins (2017–2019), Regional Director,
of academia and industry in Latin America. He has served on Mid-Continent North America; Cam Matthews (2017–2019),
numerous conference and workshop program committees in Regional Director, Canadian; Jeff Moss (2017–2019), Techni-
the region. cal Director, Drilling; Hisham Saadawi (2017–2019), Techni-
Patiño was awarded the SPE regional Formation Evaluation cal Director, Production and Facilities; Darcy Spady (2017–
Award in 2012. He holds a bachelor’s degree in petroleum engi- 2019), 2018 President; and Helena Wu (2017–2019), Director
neering from Universidad Industrial de Santander and a mas- at-Large. JPT

JPT • MAY 2017 45


MANAGEMENT

Sustainability: A Business Imperative,


Not a Moral Sacrifice
Behrooz Fattahi, The EnerTrain Institute, SPE, AIME

In recent years, sustainability has complicating problems such as depth us and the future. Through our syner-
emerged as perhaps the most critical and tight and thin formations; develop- gies, we can then transform from the cur-
imperative of this century. As our lives ment and application of leading-edge rent incremental pace into a fundamental
are being altered by advancing technol- technologies; and a multitude of envi- shift in the ways we incorporate sustain-
ogy in ways that we never imagined just ronmental considerations and regulato- ability into our operational framework.
a few short years ago, our awareness and ry issues. Our task is to extend the life of At first glance, the notion of sus-
understanding of the complexities in the industry by improving the success of tainability may seem intimidating. The
utilization of the nature and the impact finding new discoveries in frontier and petroleum industry, however, has been
of the footprint that we leave behind remote basins, increasing the ultimate focusing on the concept or its compo-
must lead us to a fundamental shift in recovery from existing fields, as well as nents for a long time, but under differ-
the way we manage our individual and the need to find ways to tap into uncon- ent descriptive terms such as optimiz-
professional lives. ventional resources. At the same time, ing production, maximizing reserves,
The petroleum industry in concert we must intensify our focus on sustain- reducing cost, cutting waste, increasing
with the rest of the world is finding ability, which calls for meeting human- efficiency, optimizing processes, min-
that sustainability presents both risks ity’s needs without harming future gen- imizing footprint, maximizing safety,
and opportunities for its business, thus erations. How are we to accomplish this reducing environmental impact, and
the need for incorporating sustainabil- goal of meeting energy demand in a sus- increasing corporate social responsibili-
ity as a business imperative and not a tainable way? Technology has always ty. We have spent considerable efforts—
moral sacrifice. been the enabler for our industry to heavy investments of time and capital or
Within the next 30 minutes as you meet demand for the last 150 years. But human resources—in achieving these
are reading this article, our planet will now more than ever, the need for quick goals. For our industry, the gap between
be travelling roughly 40,000 miles in development and rapid deployment of what we have been doing and what we
space around the sun, more than 8,000 technologies in the field is paramount. need to do is much narrower than what
babies will be born on this planet, and it is perceived to be.
our oil and natural gas industry will sup- Shared Responsibility The petroleum industry’s sustainabil-
ply nearly 2 million bbl of oil in response Today we are concerned about these ity mindset, however, was more formal-
to the increasing demand for energy. The challenges and, more importantly, we are ized after two critical events. The first
important question is how we can keep realizing that there is only a small win- was in 1988, when an explosion and
up with the many new and unique chal- dow of opportunity for us to act. How- fire destroyed an oil production plat-
lenges posed by this fast-paced change. ever, these are not a single industry chal- form in the North Sea killing 167 men
The oil and gas industry faces a very lenge. Regardless of who we are, where and resulting in a loss of USD 3.4 bil-
challenging future. Energy demand we live, and what we do, we are shar- lion. An ensuing report into the disaster
continues to grow, while our mature ing a ride on this beautiful planet in the made more than 100 recommendations
fields are declining. Out of the 1.2 tril- vast dimensions of time and space. And about how safety should be improved.
lion bbl of proved oil reserves, roughly because this is our only home, we all have The second event was a mid-1990s deci-
two-thirds are extremely challenging to to collaborate, share a responsibility to sion to decommission and dispose of an
develop and produce due to a variety of maintain its balance, and preserve it for oil storage platform in the deep waters
of the North Sea. Although permitted
by the British government, public and
Behrooz Fattahi retired from Aera Energy, an affiliate of Royal Dutch Shell and
political opposition caused a reconsid-
ExxonMobil, in 2014 after a 37-year career in the oil and gas industry. His last
eration and resulted in a more inno-
position at Aera was as learning advisor, where he taught several internal company
technical courses. Fattahi was president of SPE in 2010, and was president of the vative and sustainable approach of re-
American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME) in using much of the main structure in the
2014. He holds PhDs in aerospace engineering and mechanical engineering from construction of new harbor facilities
Iowa State. near Stavanger, Norway.

46 JPT • MAY 2017


Today, sustainability is an essential ingredient of our indus-
try’s activities, a diverse concept of many elements that are
embedded into the fabric of our daily operation. We practice
it, and we create value by integrating sustainability into our
strategies and business models. In pursuing better perfor-
mance, we master sustainability. Yet, we may not have been
too mindful of its true meaning in the past. It is only in recent
years that the concept of sustainability has moved from the
background into the limelight.
Host Supported By
The petroleum industry ranks as one of the largest inves-
tors in low- and zero-carbon technologies, as well as in car-
bon capture and sequestration technologies. To create a sus-
tainable future, from 2000 to 2014, the oil and gas industry
invested roughly USD 90  billion in carbon emission tech- FORGING TIES, DRIVING GROWTH
nologies. This is more than the automotive, electric utility,
and agriculture processor sectors combined (API 2015) and
amounts to 30% of total US investment.
An API study (2012) showed that since the early 1990s,
“the US oil and natural gas industry had invested more than
USD 252 billion to improve performance of its products, facili-
ties, and operations.” Almost 65% of that was directed toward
clean air and water. This expenditure exceeds that of the fed-
eral government at USD 43 billion for the same period, and
equals the rest of private industry combined. Today, 20% of
all the investments in alternative energy technologies come ADIPEC 2016 FAST FACTS
from the petroleum industry.

NPC Study
135,000 96,374 25
Gross sqm Attendees Country
Governments have also recognized sustainability as a key issue Pavilions
for future security. As the 2010 president of SPE, I served on
the US National Petroleum Council (NPC) from 2009 to 2012.
2,034 162 850+
Exhibiting Conference Expert
In September 2009, in a letter addressed to the NPC, US Sec- Companies Sessions Speakers
retary of Energy Steven Chu requested the NPC “to reassess
the North American resources production supply chain and 10,009 21 15
Delegates NOCs IOCs
infrastructure potential, and the contribution that natural
gas can make in a transition to a lower carbon fuel mix. Your
study should describe the operating practices and technolo-
gies that will be used to minimize environmental impacts, and WHY ADIPEC?
also describe the role of technology in expanding accessible Purchasing Power - Over US $9 billion of contracts were signed
resources. Of particular interest is the council’s advice on pol- during the 4 days of ADIPEC. With 81% of attendees either a
decision maker, purchaser or influencer, ADIPEC delivers real
icy options that would allow prudent development of North business opportunities.
American natural gas and oil resources consistent with gov-
Knowledge Exchange - With over 750 speakers from around
ernment objectives of environmental protection, economic the world and over 160 sessions, ADIPEC provides one of the
growth, and national security.” most comprehensive conference programmes in the world.
After a 2-year study involving more than 400 experts from International Perspective - 21 NOCs, 15 IOCs and 25
diverse backgrounds and organizations, of which about 60% international country pavilions along with 2,000+ exhibiting
were employed by organizations around the nation outside of companies make ADIPEC unrivalled.
natural gas and oil companies, the council prepared two major
reports, titled “Future Transportation Fuels” and “Prudent
Development of North American Natural Gas and Oil Resourc- BOOK YOUR STAND NOW
es” (2011). In the latter report, the council recommended the adipec.com/bookastand
following five core strategies for governments and companies.
1. Support prudent development and regulation of natural
gas and oil resources through such measures as councils Host City Official Media Partner Conference Organiser ADIPEC Organised By

of excellence covering environmental, safety, and


health practices, corporate and regulatory commitment

JPT • MAY 2017


to advancing environmental remain sustainable in many aspects of als who are learners, able to inspire
performance, engaging affected their operations. While these are impor- and motivate, and display leadership
communities, reducing methane tant, taken individually, such undertak- behaviors regardless of their position
emissions, and structuring policies ings are too fragmented, and a more col- in the organization. The great Ameri-
to support prudent development of lective approach is needed. Since 2010, can author, Eric Hoffer said “in times
and access to resources. SPE has played a significant role by facil- of change, the learners will inherit the
2. Better reflect environmental itating such opportunities. SPE’s Com- earth, while the knowers will be beau-
impacts in markets and fuel/ mittee on Sustainability has provided tifully equipped to deal with a world
technology choices by recognizing a platform for discussions on sustain- that no longer exists.” In our changing
that the US will find it difficult to ability through defining a role and strat- times, augmentation of our capabilities
reduce greenhouse gas emissions egy for SPE in addressing sustainabil- through learning sustainability is ever
further without a mechanism for ity, encouraging a methodical approach so more important.
putting a price on greenhouse gas for the petroleum industry, identifying The concept of prudent development
emissions that is economywide, needs and describing opportunities, and of our natural gas and oil resources
market-based, predictable, fully participating in global sustainabili- means development, operations, trans-
transparent, and part of a global ty discussions as an enthusiastic partici- port, and delivery systems must achieve
framework; keeping options pant and contributor. an acceptable balance of econom-
open for carbon capture and SPE’s leadership in the area of sus- ic growth, environmental stewardship
sequestration; and developing tainability is very much in line with its and sustainability, energy security, and
information and methodologies on mission of capturing and disseminat- human health and safety.
environmental footprints and full ing technical information for the public We, in the petroleum industry, under-
fuel cycle impacts. benefit. It is also consistent with its core stand that integration of sustainability
3. Enhance the efficient use of energy values of innovation and social responsi- in our decisions is a business impera-
through policies that support bility. Such efforts will help members to tive, and not a moral sacrifice. We want
continued progress to adopt cost- realize that sustainability is just anoth- to be an important and effective part-
effective efficiency standards er way of thinking about what we have ner in this new world. We recognize the
for buildings and appliances; already been doing, and that is consid- wisdom of the Native American prov-
remove the disincentives for eration of people, profit, and planet in erb that says, “The frog does not drink
utilities to deploy efficiency every business decision that we make. up the pond in which it lives.” This is
measures; and eliminate barriers In positioning SPE as a leading forum for a simple, yet a compelling statement.
to combined heat and power as a collaboration on sustainability, it will be It describes what sustainability is all
way to increase the efficiency of at the forefront of the related issues as a about. It shows us the path forward in
electricity production. leader among various engineering dis- shaping our future. JPT
4. Enhance the functioning of ciplines, will significantly contribute to
energy markets through policies improving petroleum industry’s public References
and regulations that improve image, and will be in an excellent posi- 1. API. 2015. “Oil and Gas Industry’s
mechanisms for utilities to manage tion to influence the direction of global $90 Billion Investments are a
the impacts of price volatility; research and discussions. ‘Driving Force’ in Emissions
harmonize market rules and Reduction,” Oil & Gas 360,
service arrangements between Conclusion http://www.oilandgas360.com/
the wholesale natural gas and Current incremental changes toward api-oil-and-gas-industrys-90-billion-
wholesale electric markets; and sustainability are not sufficient—we investments-are-a-driving-force-in-
increase environmental regulatory need a fundamental shift in the way we emissions-reduction, 23 September.
certainty affecting investments make business decisions. Sustainabil- 2. API. 2013. “Oil and Natural Gas
and fuel choices in the power ity must become the principle moral Industry Spent $252 Billion Since
sector. and business imperative in our lives. 1990 On Environmental Protection,”
5. Support the development of We must fully understand the complex Shale Industry News and Shale
a skilled workforce through interdependencies of nature, societal Information, 4 January.
increased public and private obligations, and the way we conduct 3. National Petroleum Council
financial support for educational our business. Committee on Resource
and training activities. Forward-looking companies see that Development. 2011. Report:
Many companies have developed increasing collaboration in the devel- Prudent Development: Realizing
measures and key performance indi- opment and rapid implementation of the Potential of North America’s
cators to satisfy their corporate social sustainability technology solutions will Abundant Natural Gas and Oil
responsibility, and to ensure that they require a new generation of profession- Resources.

48 JPT • MAY 2017


TECHNOLOGY FOCUS

Deepwater Projects
Morten Iversen, SPE, Well Integrity Section Head, Karachaganak Petroleum Operating

The oil-price downturn has domi- Despite near-term concerns, Eni’s Zohr gas discovery in the Medi-
nated the news cycle during the past terranean offshore Egypt and Exxon-
18 months  and is expected to dictate the long-term fundamentals Mobil’s Liza discovery off Guyana, which
the fate of many deepwater develop- for deepwater activity are capital-intensive but provide large
ments. In addition, the prices have potential returns on investment.
challenged the economic viabili-
remain strong. In line with this growing trend, Royal
ty of many future deepwater proj- Dutch Shell has categorized deep water
ects, resulting in cancellations and de- technology, will continue to drive as one of its growth priorities for the
ferred sanctioning. deepwater expenditure. next 5 years.
Optimism about a possible recovery Deepwater exploration-and-production From now until 2020, growth in the
of oil prices has picked up recently in the activities are driven by a variety of deepwater market is expected to be con-
offshore energy industry, but I believe supply- and demand-side factors: strained as low oil prices increase pres-
that 2017 and 2018 are going to be com- ◗ The need to offset declining sure on project economics. Operators,
plicated and that this optimism may production from onshore and subsea manufacturers, and rig owners
be premature. shallow-water basins are likely to find the next few years to
Despite near-term concerns, the long- ◗ The potential discovery of large be difficult as project delays continue
term fundamentals for deepwater activ- hydrocarbon reserves, with East through the forecast period.
ity remain strong. Africa a clear example However, decreasing drilling and
The need to offset declining produc- ◗ Economic viability of deepwater equipment costs may provide a limited
tion from mature basins, as well as the developments upside for sanctioning. JPT
ability of international oil companies Despite the prolonged low oil prices,
to access larger reserves with the use there are some fast-track development
of new exploration-and-production plans for large deepwater fields such as Recommended additional reading
at OnePetro: www.onepetro.org.
OTC 27161 Floater and SURF Combined
Morten Iversen, SPE, graduated from the University of Stavanger and Optimized Solutions by Blaise Seguin,
in 1981 and has worked throughout the world for different opera- Subsea 7, et al.
tors and for several service companies. He works as the Well
OTC 27260 Progress in the Development
Integrity Section head for Karachaganak Petroleum Operating. of Test Methods and Flexible Composite
Iversen holds several patents, including a patent for a tubing- Risers for 3000-m Water Depths
conveyed perforating-shot detection system and a deepwater- by T.A. Anderson, GE, et al.
blowout-preventer system for riserless light well intervention
SPE 179056 Deepwater Riserless
(RLWI). He has worked on implementing the RLWI technology Operations With Coiled Tubing in the Gulf
from its infancy in the late 1980s and later as a global subsea adviser for Welltec, of Mexico: An Innovative, Safe, and Efficient
optimizing the use of RLWI technology to increase well recovery in subsea wells. Plug-and-Abandonment Technique
Iversen serves on the JPT Editorial Committee and can be reached at ivermi@kpo.kz. by Renny Ottolina, Coil Tubing Services, et al.

JPT • MAY 2017 49


Deepwater-Structure-Installation Challenges
Offshore Australia

T his paper provides an insight


into the challenges encountered
and overcome during installation of
landing-speed limitations; exceeding
these might cause overstress within
the structures. On the Gorgon project,
Pennant-Deployment Methods. This
system uses the main crane for the lower-
ing operation, with the addition of mul-
20 subsea structures, some close to the landing speeds were limited to less tiple pennants. For the Gorgon project,
1000 t in weight and in water depths than 0.3 m/s. because of water depths greater than
of up to 1350 m, for the Gorgon project Initial structure-landing analysis 1350  m, this would require more than
offshore Western Australia. showed that the prescribed landing ve- 20 pennants to be installed in series to
locities would be difficult to achieve reach the seabed. The structure would be
Introduction without further heave compensa- lifted off the barge, lowered through the
The Gorgon project development com- tion because the sea-state limits would splash zone, and hung off on a purpose-
prises the Gorgon and Jansz-Io gas fields be too low to be realistically achiev- built hang-off frame. A pennant would
located off Australia’s northwest coast, able given the prevailing weather con- then be installed on the rigging; the load
in water depths of 200 and 1350 m, ditions at the site. Because the main is taken on the crane and removed from
respectively. Ten structures were in- crane of the Sapura 3000 is not fit- the hangoff. By use of the installed pen-
stalled in 20 separate lifts, using the ted with a heave-compensation sys- nant, the structure is lowered the length
multipurpose heavy-lift and pipe- tem, a passive heave compensator of the pennant and hung off again. This
laying vessel Sapura 3000. Tight angu- (PHC) was introduced in the lift-rigging is repeated until required water depth
lar tolerances and low landing speeds model to achieve better installation is achieved, at which point the structure
were required to meet the structures’ sea states. can be landed out on the seabed with the
design criteria. Each of the 20 Gorgon and Jansz-Io main crane. The pennants would then be
All structures were loaded onto cargo structures required different PHC stiff- recovered by performing the lowering
barges and towed to site for installa- ness and damping because of their indi- process in reverse. The pennants could be
tion. Liftoff and deployment through vidual properties such as mass, rigging steel, synthetic, or a combination of both.
the splash zone were performed with properties, perforated areas, and asso-
the Sapura 3000 main crane. Depend- ciated drag effects. New-Build DLS. The DLS comprises a set
ing on the size of the lift and the instal- Lift-off analysis from the cargo barge of winches, wires, and associated con-
lation water depth, the structures were was performed for the sea states identi- trols. The DLS was fastened to a grillage,
either deployed directly to the seabed fied by the governing installation step and the grillage was then pinned and
using the crane (in the Gorgon field (landout). To achieve sea-state limita- welded to the vessel deck (Fig. 1). The
only) or transferred to a deepwater low- tions, different PHC settings (stiffness structure to be lowered was transferred
ering system (DLS). Structure founda- and damping) were required for struc- to the system by the main crane, at which
tions were either skirted mud-mat types tural liftoff. point the load was hung off by the spe-
(deep water, soft-seabed locations) or cially designed connector to the deep-
suction piles, and were all fitted with Installation Aids water lowering beam (DLB). The DLB
fixed guideposts to assist with module- Lowering-System Design. A purpose- is capable of lowering structures in ex-
landing operations. built DLS was chosen for the Gorgon cess of 1000 t to water depths of greater
project. The system was developed than 1350 m.
Installation Analysis and engineered to reduce risks asso- The main components of the DLS
Subsea-structure foundations and ciated with deepwater installation of include the following:
modules are typically designed with heavy structures. ◗ Grillage
◗ Traction winch
◗ Storage winch
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
◗ Right-angled level wind
of paper OTC 26720, “Structure Deepwater-Installation Challenges—Northwest ◗ Outrigger sheave assembly
Shelf, Australia,” by Trent Broadway, SapuraAcergy, and Vincent Tachoires, ◗ Wire-rope assembly
Subsea 7, prepared for the 2016 Offshore Technology Conference Asia, Kuala Lumpur, ◗ Hydraulic-power unit
22–25  March. The paper has not been peer reviewed. Copyright 2016 Offshore ◗ Controls
Technology Conference. Reproduced by permission. ◗ DLB and connector

The complete paper is available for purchase at OnePetro: www.onepetro.org.

50 JPT • MAY 2017


Spreader-Bar Supports. The spread- Specifications included the following: Structure Orientation and Control
er bars were heavy, with large rigging, ◗ Safe working load—700 t in single During Landout. Rotation of structures
and they also were positioned directly configuration or 1400 t in double can be problematic during lowering.
above the structures during lifting. The configuration This was the case on Gorgon, where the
weight of each spreader would typically ◗ Stroke—maximum 4.5 m structure is supported by two indepen-
be greater than 12 t, and the shackles/ ◗ Weight—38 t (for each 700-t unit). dent lifting points and where rotation
slings would typically be greater than Note that the stated weight is the may cause wires to twist and entangle,
10  t. Their weight and position above weight of the PHC only. causing damage.
the structures introduce a number of To achieve the same sea-state limi- A purpose-built 1300-t safe-working-
risks. Where hook height allowed, rig- tations in each of the different deploy- load swivel was designed and fabricated
ging arrangements were modified to one ment stages, the PHC stiffness had to be to support the full weight of the struc-
central spreader bar so that the spread- adjusted throughout the installation op- tures while using the 1400-t PHC. The
er is well clear of both riggers and the eration to accommodate the change in Jansz-Io field structures were required
structure before the rigging becomes lift-system properties at each stage. to be installed within a radius of ±2.5 m
taut for liftoff and well clear of the re- The PHC was designed to provide two and to a heading tolerance of ±1.5°.
motely operated vehicle (ROV) and the settings, one based on landing-speed In addition, it was necessary to land the
structure once the rigging has become requirements and the other based on structures accurately the first time be-
slack at landing. On Gorgon, this was providing an average efficiency in re- cause any disturbance of the soil may
feasible for approximately half of the ducing dynamics at structure liftoff have prevented a second attempt. The
structures, and the majority of the re- and dynamics in the splash zone, and ROV may be used to initially orient the
maining structures required double eliminating resonance effects through- structure to the desired heading, and, for
spreader bars. out the water column. Each 700-t final positioning, a flying clump weight
PHC was designed and equipped with was used to hold the structure in place
PHC Unit. There was no known PHC that an ROV interface panel to control and before and during landout.
was large enough to support the Gorgon- monitor valves that, when opened, re-
project structures. Therefore, a suitable leased charged gas from three accu- Operational Feedback
PHC had to be designed and built with mulators into four accumulators to Structure Deployment. Before the lift-
functionality to remotely modify stiff- increase the volume and therefore re- ing of the first structure, a trial lift was
ness and damping during installation. duce stiffness. performed on the DLS. This was a signif-

CJENERGY.COM
CJENERGY.COM
icant undertaking because of the lack of Wire Storage DLS Mezzanine
availability of a suitably sized load that Reels Deck
could be used for this purpose.
To resolve this problem, the test Hydraulic-
Power Unit DLS Main Deck
weight used was a combination of 3-in.
chain (approximately 9 km in length)
and crane counterweights. To under-
take the load test, sheltered water at a
depth of approximately 60 m was locat-
ed off Batam, Indonesia. This depth pro-
vided minimal clearance to seabed below Traction
the crane counterweight when hanging Winches
on the DLB. The test weight was as-
sembled on a barge that was brought Upper Sheave
Blocks
alongside, then picked up by, the vessel
crane and transferred to the DLB. The Lower Sheave
applied test load was 975 t submerged Blocks DLB
(1114.6 t in air).
The DLS system was used safely and Outrigger
Platform Hang-Off
reliably to lower the Gorgon-project Connector
structures to the seabed in 1350-m water
depth. The transfer of the structures
from the main crane hook to the DLB
worked smoothly, with rigger interven-
tion limited to stripping out the head-
sling from the connector top shackle.
Following the transfer of the connector
to the DLB, there was no requirement for
rigger intervention.

Fig. 1—General arrangement of the DLS.

PHC Operability. Although the PHC reducing the motion on the structures
was initially planned to be used only for liftoff, lowering through the splash
for structures that approached design- zone, and landout. There were no res-
landing-speed limitations, the PHC onance effects on the structure while
was ultimately used for all 20 struc- using the crane master.
tures. The effort placed on procuring a
purpose-built upending frame was nec- Orientation and Landing on Sea-
essary because of the size of the PHC bed. The installation aids used (PHC
units and rigging attached to each end for heave control and orientation clump
of the units. The pressure switch was weight for heading control) worked as
effective at increasing the accumula- planned and proved to be very reliable
tor volume from three to four cylin- throughout the installation campaign.
ders at the planned depth, with no asso- The use of dowel pins on all deepwa-
ciated downtime. ter mud-mat structural foundations
The time that it takes to charge and (Jansz-Io field) combined with the effect
bleed the PHC units with nitrogen is a of the PHC allowed the structure posi-
constraint and was taken into account. tion to be checked and confirmed before
If the installation sequence is changed, proceeding with the final landout. Ulti-
then additional nitrogen may be re- mately, all structures were installed well
quired. The PHC was very effective at within tolerances. JPT

52 JPT • MAY 2017


Deepwater Hydraulic Well Intervention:
A Creative Hybrid Solution

T his technical paper describes


the planning and execution of
a multiservice-vessel (MSV) -based
monitoring of pressure, temperature,
and rate-estimate profiles.
Over the 1–2 years following attain-
startup and early-life operations phases,
which brought about the onset of water
injection. Water injection specifically
hydraulic-intervention campaign in ment of peak production, results of targeted the primary M-XX reservoir,
Chevron’s Tahiti field in the US Gulf of routine well tests showed noticeable and introduced the concept of scaling
Mexico. The five-well campaign was productivity-index (PI) declines on risk to the production wells. However,
executed incident-free during 2015, several wells, and pressure-transient- given the varying proximities of M-XX
delivering a total treatment volume analysis evaluations revealed significant production and injection wells, only a
of almost 30,000 bbl, resulting in skin increases. By the time of mobili- subset of the producers are considered
8,500-BOPD gross initial production zation on the subject-well intervention to be at risk. Engineering efforts were
uplift and cost savings of 85% in campaign, skin values on the candi- initiated toward an MSV-based deploy-
comparison with traditional rig- date wells would range from 36 to 212, ment system and related subsea hard-
based methods. with PI values as low as 3 to 30% of ware specifically suited for application
original levels, and one well (Well 2) for the Tahiti infrastructure.
Introduction was pre-emptively shut in to preserve
The Tahiti reservoirs comprise stacked productivity/injectivity in order to Front-End Engineering
turbidite sandstone deposits. The three allow successful hydraulic intervention. and Design
major reservoirs are M-XX, M-YY, and A dedicated initiative to integrate The rigless subsea-well-intervention sys-
M-ZZ, which account for approximate- specific field data, laboratory data, tem for this project would ultimately be
ly 82, 9, and 9% of proved reserves in and simulation modeling led to the di- required to deliver multistage chemi-
the field, respectively. The M-XX res- agnosis of fines migration as the pri- cal treatments to five existing subsea-
ervoir, of which all intervention candi- mary contributor to skin issues. Acid production wells located in approximate-
date wells are a subset, is further sepa- stimulation became the identified solu- ly 4,200 ft of water. Key early decisions
rated into two distinct pay intervals, tion, thus initiating detailed core test- included the choice of an MSV as the
the M-XXA and the M-XXB. Tahiti pro- ing, fluid-compatibility testing, and pumping and equipment-deployment
ducers are installed as cased-hole frac- materials-compatibility qualification platform, a stimulation vessel as the
packed completions, with stacked frac regimes to qualify a suitable formula- treatment-fluid carrier, open-water coiled
packs and commingled production tion. Ultimately, a combination organic- tubing as the delivery conduit, and en-
the norm for these M-XXA and M-XXB acid/mud-acid formulation was select- hanced subsea choke inserts as the tree/
wells. Of the six “first-oil” production ed. With this key qualification milestone wellbore injection access method. On this
wells, there are two exceptions to this achieved, and presented with a single- basis, a dedicated front-end-engineering-
norm; one well (Well 2) was completed well acid-stimulation opportunity that and-design (FEED) study was sanctioned.
in the M-XXA interval only, and another was enabled by a rig-availability slot Several critical components of the pro-
well (Well 5) was completed as a single- and a candidate well that was known to posed system drew the majority of the
trip frac pack across the two M-XXA and be beyond the pressure rating of avail- focus during FEED, given that the expect-
M-XXB intervals. able subsea-well-intervention systems, ed operational conditions were untested
All Tahiti wells are installed with a rig-based early acid-stimulation job or undocumented relative to their design
downhole gauges, which, in conjunction was performed in late 2014. basis, or their original design basis was
with subsea trees and topside instru- Phase Two of Tahiti’s staged field de- being modified. These components in-
mentation, allow continuous real-time velopment successfully maneuvered the cluded the following: coiled-tubing-riser
analysis, coiled-tubing fatigue, subsea-
foundation analysis, emergency discon-
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
nect system, and barrier philosophy.
of paper OTC 26984, “Deepwater Hydraulic Well Intervention in Tahiti: A Creative These components are described in de-
Hybrid Solution,” by J. Beard, J. Boiteau, R. Chauvin, B. Conner, C. Courtois, and tail in the complete paper.
T. Theall, Chevron, prepared for the 2016 Offshore Technology Conference, Houston, The outcome of the FEED study was
2–5 May. The paper has not been peer reviewed. Copyright 2016 Offshore Technology the validation of a subsea hydraulic well-
Conference. Reproduced by permission. intervention system. The MSV used for

The complete paper is available for purchase at OnePetro: www.onepetro.org.

JPT • MAY 2017 53


Finally, it is worth noting that the
Tahiti host facility (a spar platform)
maintained control of the candidate
SSPTs across all operational phases by
a central control room using a project-
specific communications plan.

Well-Treatment Operations
Low-pressure vessel-to-vessel fluid
transfer was selected as the means of
managing treatment fluids during the
project (Fig. 1). In the preferred so-
lution, high-pressure pumps were sta-
tioned on the MSV and were fed fluid
that had been transported to location
on the stimulation vessel. Transfer from
vessel to vessel was performed by a 4-in.
flexible hose, featuring attached buoy-
ancy modules to provide flotation of the
hose between vessels. Hose cradles were
fastened on both vessels to allow for
hose security during operations, reduc-
ing the chance of exceeding minimum-
bend-radius constraints.
Upon connection of the low-pressure
hose to the MSV components, the stim-
ulation vessel was positioned to suit the
weather conditions at the commence-
Fig. 1—Vessel-to-vessel configuration with the low-pressure transfer hose
deployed. ment of pumping operations. In prac-
tice, this typically meant an optimal
this campaign was a 340-ft-long, dynam- 10,000-ft water depth. Each flow side of standoff between both vessels of ap-
ically positioned vessel with a 130-ton the module houses a ball valve for flow proximately 400 ft, which ensured ad-
subsea crane. It offered two fully inte- isolation, and has the capability to be equate flexibility to withstand some
grated remotely operated vehicles (ROVs) completely ROV-operable. The acous- degree of changing conditions before
with a heave-compensated launch and tic (active) and deadman (passive) con- position adjustments were required. The
recovery system, a deck area of 8,000 ft2, trol features enable automatic shut-in by campaign was preplanned to move from
and an integrated moonpool. Four accumulator pressure activation under each of the five candidate wells sequen-
high-pressure pumps were installed on emergency-disconnect circumstances. tially and back-to-back, thus leveraging
the MSV. With the selected hybrid inter- a single instance of MSV mobilization/
While pressure-boosting capacity was vention system decoupling the riser demobilization efforts and cost.
provided from the MSV, the large treat- connection/stimulation module from The same, qualified acid-treatment
ment volume of each job warranted a the subsea production tree (SSPT), design was pumped on all five wells, this
separate stimulation vessel as the fluid- jumper hoses were required to span the being an organic-mud-acid system. On
inventory carrier. Premixed treatment distance from the suction-pile locations the basis of learnings and results from
fluids, for one well at a time, were trans- to the candidate trees. Two-inch flex- the sole prior acid stimulation in the
ferred at low pressure during treatment ible hoses with hotstab end connections field (that being the preceding year’s
operations through a 4-in. hose from the were used, with lengths on the order of rig-based job), two changes were made
stimulation vessel to the MSV. The trans- 100 to 200 ft depending on the well. The to enhance the acid effectiveness, those
fer hose was self-buoyant, allowing visual tree end of the jumper hose ultimately being an increase in the concentration
monitoring and management through- mated with the valve module that was of hydrofluoric acid (from 1 to 1.5%)
out each job, and a breakaway connec- landed on the choke at the SSPT. The and the addition of formic acid to the
tor was installed in a midline position. final retrievable components of the in- main treatment stage.
To ensure attainment of optimal treat- tervention system’s subsea-equipment Total volume pumped across the
ment rates, two independently deployed package were the enhanced choke in- entire campaign was approximately
coiled-tubing risers were used to deliver serts, which had been preinstalled in 30,000 bbl, and a consistent average of
treatment fluids to the subsea wells. the candidate trees by MSV before mo- approximately 4 bbl/min was achieved.
The MSV-deployed stimulation mod- bilization of the MSV-based interven- Surface pump pressures throughout
ule was rated for 10,000 psi and a tion spread. the campaign ranged from 4,500 to

54 JPT • MAY 2017


7,300 psi, with pumping durations rang-
ing from 12 to 60 hours.
Monoethylene glycol was used in the
leading fluid to assist in hydrate preven-
tion during initial contact with hydro-
carbons and in the displacement fluid
for well turnaround to begin flowback College of Engineering
operations, which are detailed in the
complete paper. Head, Department of Petroleum Engineering
The Harold Vance Department of Petroleum Engineering at Texas A&M University invites
Campaign Performance applications for the position of department head. The department head reports directly to the
Summary dean of the College of Engineering and holds an appointment as a tenured professor and
the endowed Stephen A. Holditch ‘69 Department Head Chair. Candidates should be able to
In response to early-life well- articulate and communicate a clear vision for the future of petroleum engineering education
productivity-decline challenges caused and research requirements at large public universities to a constituency that includes academia,
by fines migration and scaling risk, a government, industry, alumni, and students. This position requires strong leadership capabilities
creative, hybrid approach to stimulate and it is expected that the successful candidate will lead the faculty and its programs to a higher
level of excellence.
and protect well productivity was de-
veloped and executed successfully. Five The Harold Vance Department of Petroleum Engineering at Texas A&M University’s College of
Engineering has consistently been ranked among the top departments in the United States at
candidate wells were identified for both undergraduate and graduate levels as noted by the National Research Council and U.S.
treatment, with post-job success high- News and World Report. The outstanding faculty are globally recognized for the quality of
lighted by more than 100,000 incident- their research and teaching, and their leadership in the profession. The department has well-
free offshore man-hours, which is a established laboratories, consortia and research programs in the areas of deepwater drilling,
nano-technology, oilfield chemistry, multi-phase flow, high-resolution imaging, gas hydrates,
credit to the comprehensive FEED study enhanced oil recovery, reservoir simulation, and integrated reservoir characterization. The
and the on-site diligence of the opera- department houses the Crisman Institute for Petroleum Research, which collaborates with the
tions personnel. Berg-Hughes Center for Petroleum and Sedimentary Systems in the Department of Geology
Project success was also underscored & Geophysics. The department has 27 tenured and tenure-track faculty members and 14
academic professional faculty. The current student enrollment is 626 undergraduate students
by a projectwide increase in production and 399 graduate students. This is the largest graduate petroleum engineering program in the
of 52%. U.S. Applicants should consult the department’s website to review its academic and research
programs (http://engineering.tamu.edu/petroleum).
Lessons Learned Texas A&M is located in the twin cities of Bryan and College Station, with a population of more
Though the project experienced suc- than 175,000, and is conveniently located in a triangle formed by Dallas, Houston and Austin.
cess, several observations may allow in- Texas A&M has more than 55,000 graduate and undergraduate students enrolled. Research
expenditures at Texas A&M total more than $820 million annually, ranking in the top tier of
creased success on similar projects in universities nationwide. With an endowment valued at more than $5 billion, the university ranks
the future. fourth among U.S. public universities and 10th overall. Texas A&M is aware that attracting and
◗ Treatment-diversion techniques retaining exceptional faculty often depends on meeting the needs of two careers and having
are likely a natural enhancement policies that contribute to work-life balance. For more information visit http://dof.tamu.edu/
Faculty-Resources/CURRENT-FACULTY/Faculty-Work-Life. With over 400 tenured/tenure-track
to future hydraulic-intervention faculty members and more than 13,900 students, the College of Engineering is one of the
campaigns, especially given the largest engineering schools in the country. The college is ranked seventh in graduate studies
stacked-reservoir setting in the and eighth in undergraduate programs among public institutions by U.S. News & World Report,
Tahiti Field. with seven of the college’s 13 departments ranked in the Top 10. The College is also ranked
10th in the Academic Ranking of World Universities compiled by Shanghai Jiao Tong University.
◗ The ROV workload included The American Society for Engineering Education ranks the College of Engineering second in
more flow-intensive activities research expenditures.
than originally anticipated, Applicants must have an earned doctorate in petroleum engineering or a closely related
and additional ROV-tooling engineering or science discipline, or a terminal degree in an appropriate field, and have a
optimization could shorten critical- proven record of scholarly achievement and administrative leadership in academia, industry
path ROV activities significantly. or government. The position requires dedication to excellence in undergraduate and graduate
education and commitment to the diversity of faculty and students.
◗ Low-cycle fatigue was the
Applicants should submit a cover letter, curriculum vitae, and a list of 5 references (including
predominant factor in coiled-
postal addresses, phone numbers and email addresses) by applying for this specific position
tubing-fatigue-life consumption. at www.tamengineeringjobs.com. Applicants should also submit a two-page statement
◗ The designed system possibly summarizing his/her personal vision and goals for the Department of Petroleum Engineering’s
included too many levels of fail- education and research, as well as his/her philosophy of academic leadership for achieving
those goals. The search committee will begin reviewing applications upon arrival. Full
safe mechanisms and nominated
consideration will be given to applications received by August 1, 2017. Applications received
barriers; the acquired confidence after that date may be considered until the position is filled. It is anticipated that the appointment
in the system may enable will begin January 1, 2018 or earlier.
streamlined philosophies in this Communications should be addressed to the chair of the Petroleum Engineering Head Search
regard for future campaigns, with Committee, Dr. Reza Langari, J. R. Thompson Department Head Chair, Engineering Technology
a view to improved operational and Industrial Distribution, Texas A&M University, TAMU 3367, College Station, TX, 77843-
3367; rlangari@tamu.edu.
efficiency. JPT
The members of Texas A&M Engineering are all Equal Opportunity/Affirmative Action/Veterans/Disability employers
committed to diversity. It is the policy of these members to recruit, hire, train and promote without regard to race, color,
sex, religion, national origin, age, disability, genetic information, veteran status, sexual orientation or gender identity.
JPT • MAY 2017
Sustainable Building Blocks for
Cost-Effective Deepwater-Field Development

T o survive the current economic


scenario, the deepwater industry
needs to rethink the way projects are
carried out. This paper reviews clusters
of information that will be termed
“building blocks” for deepwater-field-
development planning, discussing how
they are currently used and exploring
more-affordable, but technically
robust, alternatives.

Building Blocks
Advantages of Building Blocks. The use
of conceptual “building blocks” during
concept definition and concept selection
is not new; they have been used in field-
development planning for more than 3
decades. The field-development build-
ing blocks are a very versatile and pow-
erful tool and are relatively simple to de-
fine and to use. They may be tailored to Fig. 1—Schematics of typical arrangements of subsea wells.
the case under investigation, providing
a higher-level view or more-detailed in- the semisubmersible; the spar; the building block. In some geographical
sight, and can enable rapid generation tension-leg platform; and other fixed or areas, the FPSO would necessarily have
of several development options. They floating platforms. to be disconnectable; this requirement
also offer the possibility of producing Even a limited number of initial build- would affect the definition of the build-
simplified sketches representing field- ing blocks can generate a remarkable ing blocks to be used.
development options (Fig. 1). number of field-development options.
The key components of a future off- To manage the potential complexity of Potential Limitations of Building
shore field development are repre- the building-block approach, the quan- Blocks. The building-block approach
sented by predefined, project-specific tity and type of building blocks to be does have potential limitations that
building blocks that are combined in a used are generally defined in an early are worthy of mention. The field-
methodical way (often automated) to stage of the project. Specific building development-planning building blocks
generate multiple development options blocks may be added to ensure that proj- offer a static snapshot of the techni-
to be further ranked and screened. A ect challenges are addressed properly. cal and nontechnical aspects consid-
typical building block is the type of host Building blocks may be purely quali- ered by the project team at a given time
required in an offshore-field develop- tative or may provide some quantitative and may not take into account the sorts
ment. Multiple alternatives are possi- information. In some cases, there might of changes sometimes seen during the
ble, such as the floating production, be multiple combinations of technical course of such projects (i.e., tophole lo-
storage, and offloading (FPSO) vessel; and nontechnical features for a single cations or length of flowlines). In addi-
tion, the building-block approach may
not be able to adequately represent the
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
technical feasibility of certain field-
of paper SPE 181707, “Truly Sustainable Building Blocks for Deepwater-Field development options. Another pos-
Development: Need for Strategy Redefinition in a Persistently Low-Oil-Price sible limitation of field-development-
Scenario?,” by Francesco Beltrami, Energo Engineering, and Kevin Hansen, planning building blocks is the unclear
Granherne, prepared for the 2016 SPE Annual Technical Conference and Exhibition, definition of the readiness level of some
Dubai, 26–28 September. The paper has not been peer reviewed. technologies. Finally, building blocks

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

56 JPT • MAY 2017


may not adequately represent future ◗ I interface with an 18¾-in. produced fluids”) might be added to
subsea wells and equipment, leading to wellhead with a given profile and specific building blocks. Operational re-
improper sizing of the facilities. given casing hangers; I need to be quirements also might be added to the
connected to a vertical subsea tie- building blocks to ensure that nonpig-
Building Blocks Redefined in system (interface information). gable components are “aware” that they
A New Start? The field-development- ◗ My weight and size are limited must be protected adequately by the
planning building blocks used currently by the moonpool of the mobile proper chemical-injection strategy.
are predetermined and static elements offshore drilling unit (MODU) that This also introduces the concept of
to be combined and recombined several will install me (project-specific being able to identify earlier and quan-
times without losing their initial iden- information). tify better the risk and uncertainty be-
tity and without being contaminated by ◗ I am a subsea vertical tree cause there will be development con-
adjacent building blocks. (company standardization of cepts that may be of lower (or higher)
To create more value during the subsea equipment). overall risk.
field-development-planning exercise, it ◗ I am equipped with certain The idea of smart building blocks may
might be advisable in the future to use components that are in accordance seem unconventional and may gener-
so-called “smart” building blocks that with my company technical ate objections to the practicability of
convey information and are in some way specifications (operator’s technical the solution proposed here, in particu-
aware of their neighbors. Smart build- requirements). lar regarding whether it is worth adding
ing blocks might maintain their simple A smart building block also may be complexity to the early stages of field-
appearance but could easily store key created to be aware of the environmen- development planning. A more-detailed
technical data, interface information, tal conditions in which it is expected description of the new building blocks
project-specific information, and com- to operate and of the interactions with may help to clarify this matter and is
pany technical requirements. For ex- the other building blocks that surround included in the complete paper.
ample, the building block representing it. Warnings about the technical readi-
a subsea tree might convey messages ness of a component (i.e., “As a flex- Field-Development Strategy
such as these: ible riser, I cannot work in this water Currently, during concept definition
◗ I am a 10,000-psi, 5×2-in. subsea depth”) or regarding interactions with and selection, concepts are generated,
tree; I am not designed for sour other blocks (“I am a large flowline, but ranked, and screened. A few concepts
service (key technical data). can handle only a prefixed flow rate of are then shortlisted for prefront-end-

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engineering design (FEED), and ulti- optimistic and expensive. Optimizing
mately one concept is selected for FEED. (i.e., defining the best sizing) may re-
If FEED is concluded successfully, the duce capital expenditure and avoid fu-
® project moves to execution. During the ture brownfield work (and consequent
execution phase, the equipment will be deferred or lost production).
designed and manufactured. Detailed Smart building blocks might also be

e
Nr w engineering work will likely require
changes in orders and rework owing to
modifications to the project scope, in-
terfaces not properly defined, and as-
ideal containers for key lessons learned.
For example, the smart building block
for the subsea tree might provide a
warning about the subsea-well accessi-

fo
sumptions made during early stages of bility by an anchored MODU. The build-
the project that have proved incorrect. ing blocks for flowlines and umbilicals

!
Use of more-detailed, information- should also provide a similar warning to

20 1 7 rich building blocks requires perform-


ing deeper and more-accurate prelimi-
nary engineering in the early stages of a
project, enabling the project team to ob-
ensure that the final routing is compat-
ible with the anchor pattern of a typical
MODU re-entering the subsea wells in
the field. Failing to do so may result in
tain a better-defined, more-quantitative a subsea field layout that will be forced
description of the equipment and facili- to use a dynamic-positioning MODU to
ties that are required for an offshore de- carry out a workover on an existing
velopment. A robust review of the tech- subsea well. A drillship is likely to be
January 2017
nical feasibility of the concepts under more expensive than a semisubmers-
examination will reduce the risk of re- ible MODU.
work or scope changes at a later stage. Other areas in which smart building
Moving some of the engineering work blocks might be useful include artifi-
2017 to the front end would not be unprec- cial lift and subsea processing. Thanks
edented, but moving more engineering to a suite of blocks representing com-
work to concept definition and concept ponents and activities, it will be pos-
January 2017

selection may be a debatable step. How- sible to determine what has to be done
ever, the deepwater industry is changing on the seabed and what on the topside.
because of the persistent low-oil-price Flow rates, pressures, and temperatures
scenario. If the earlier involvement of will be tracked and recorded constantly.
an installation contractor may be ben- Possible changes to the process will be
eficial to a deepwater project, earlier documented. The effect of possible al-
engineering work and longer pre-FEED ternative decisions will be assessed im-
The Journal of Petroleum and FEED stages also may be beneficial. mediately. For example, it will be rel-
Technology® (JPT) website atively simple to discuss whether gas
Design Optimization lift is compatible with subsea boosting.
has a new look and feel. The Smart building blocks might be used Smart building blocks can also simpli-
redesigned site is mobile- during the optimization of the design of fy the comparison of different compo-
a subsea production system and other nents proposed for the same service.
friendly and offers exclusive offshore facilities. These building blocks There are multiple configurations for
can improve visualization of some rela- the electrical submersible pumps used
online-only content. JPT
tionships among components that are for subsea boosting; different types
will continue to provide not immediately evident. of rotoaxial pumps are also possible.
Smart building blocks might also Smart building blocks containing in-
authoritative briefs and store key information generated by dif- formation on the technical features of
features on E&P technology ferent disciplines and required to make these pumps, as well as pump charts,
decisions about the development stag- technology-readiness reporting, and
advancements, oil and gas es of a project and the related sizing similar data, will ensure that only com-
industry issues, and news of the facilities; this is a critical task ponents fully qualified for the intended
that often determines the outcome of a service are selected.
about SPE and its members. project. Designing only to produce the The complete paper describes several
first-phase wells may be a conservative specific examples that clarify how smart
assumption that can limit future pro- building blocks may be beneficial to a
duction; at the same time, designing for better definition of the project scope
Check out the new website all the present and future wells since the and to the consequent allocation of in-
and sign up for the initial production stage might be too vestment funding. JPT
eNewsletter today at
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TECHNOLOGY FOCUS

Intelligent Fields Technology


John Hudson, SPE, Principal Production Engineer, Shell

In the early days of intelligent fields, As with most industries, which might seem threatening if you
we tended to see the game as more are a Kasparov. Unlike chess players,
data, more control, more models, and the oil industry is ripe we have a much larger endgame, and
more integration. All these aspects, of for automation of the type our effective mastery of these technolo-
course, are still key components to the gies can help us sustain and deliver in
system solutions that are now emerg-
that is likely to trivialize an environment of intense competitive
ing. However, the most-competitive much of what consumes pressures. The body of knowledge and
emerging systems blend artificial intel- our days as engineers … . practice in this area is large and growing
ligence to bring better efficiency to the quickly, and some of the recommended
human work that results in good busi- articles in this section are examples of
ness decisions. As a result, we waste event was the only surprise. That a com- the current state of the art. JPT
less time and fewer resources find- puter could beat the best human chess
ing and manipulating data and focus player at some point was certain long
more on complex engineering judgment before it happened. Recommended additional reading
and building richness into the bases of As with most industries, the oil indus- at OnePetro: www.onepetro.org.
our decisions. try is ripe for automation of the type
When Deep Blue beat Kasparov, it was that is likely to trivialize much of what OTC 26509 Limitations of Using
Smart Wells To Achieve Waterflood
a watershed event, but the timing of the consumes our days as engineers today— Conformance in Stacked Heterogeneous
Reservoirs: Case Study From Piltun Field
by Harsimran Khural, Shell, et al.
John Hudson, SPE, has more than 25 years of experience in flow SPE 180165 DAS/DTS/DSS/DPS/DxS—
assurance, production-system design, and technology develop- Do We Measure What Adds Value?
ment. He has held technical and managerial positions in Shell at by Kousha Gohari, Baker Hughes, et al.
locations in Europe and North America, providing consultancy to SPE 181110 Optimal Field Development
a diverse set of assets globally. His activities have included the and Control Yield Accelerated, More-
development of a model-based, cloud-computing solution that Reliable Production: A North Sea Case
was deployed to gas-production systems with combined capac- Study by M. Haghighat Sefat, Heriot-Watt
ity in excess of 10 Bcf/D. He is currently a principal production University, et al.
engineer at Shell and the product manager for Shell’s PetroSigns Flow simulator and SPE 181435 Machine-Learning
integrated reservoir and asset simulation platform. Hudson holds a PhD in chemical Approach for Irregularity Detection
engineering from the University of Illinois. He serves on the JPT Editorial Committee in Dynamic Operating Conditions
and can be reached at www.linkedin.com/in/hudsonjohnd. by Mohamed Sidahmed, BP, et al.

60 JPT • MAY 2017


Pseudodensity Log Generation
by Use of Artificial Neural Networks

T he challenges of reservoir
characterization can be overcome
accurately and efficiently by the use of
obtained from density logs. In this
study, a three-step approach was pro-
duced. First, the authors apply prepro-
singular-value decomposition. PCA al-
lows the reduction of the dimensionality
(number of the columns) of the well-log
computer-based intelligence methods cessing of the log data by use of stan- data but retains most of the variability
such as neural networks, fuzzy logic, dardization and dimension reduction of those data.
and genetic algorithms. This paper [principal-component analysis (PCA)].
will describe how one integrates Second, they apply clustering [model- Well-Log-Data Mining
a comprehensive methodology of based clustering (MBC)] to recognize Though well logs are a record of rock
data-mining techniques and artificial specific patterns and interpret strati- and formation properties vs. depth, they
neural networks (ANNs) in reservoir- graphic information. Finally, a simi- are not a straightforward representa-
petrophysical-properties prediction lar pattern is chosen as input to gen- tion of the formation, and the amount of
and regeneration. erate a target pseudodensity log by well-log data is usually extremely large.
use of ANNs. In addition, stratigraphic interpreta-
Introduction tion and classification are necessary to
ANNs—machine-learning models that Well-Log-Data Preprocessing select appropriate wells for data post-
provide the potential to establish multi- Normalization. Well-log data are con- processing. Data mining is the computa-
dimensional, nonlinear, and complex structed in a matrix form whereby each tional process of discovering patterns in
models—can be powerful tools with row represents the depth record and large data sets, and it involves methods
which to analyze experimental, indus- each column is the different type of well at the intersection of artificial intelli-
trial, and field data. log. Each well constructs one well-log gence, machine learning, statistics, and
It is crucial to find the optimal data matrix, and one field that has multiple database systems.
from one well to build the model with wells constructs a big data set. The ini-
ANNs for pseudowell-log generation of tial step in the first stage is to normalize Lithofacies and Electrofacies. A litho-
a target well. Manual stratigraphic in- well-log data. This normalization is nec- facies is a body of rock with specified
terpretation, though labor-intensive, is essary because different types of well- characteristics. Different types of litho-
regarded as one approach. Data-mining log data have different units. For in- facies have an internally different sig-
techniques are another applicable ap- stance, the spontaneous-potential log is nal response on well logs. For example,
proach, involving the automatic pro- given in millivolts, whereas the gamma a gamma ray log of sandstone can re-
cessing of data associated with non- ray log is given in an API unit. flect the clay content. If a gamma ray log
linearity by use of a statistical method of sandstone is used to build a model,
to discover data patterns. One applica- PCA. This is a statistical procedure that and subsequently that model is used to
tion in petrophysics is facies (or electro- uses an orthogonal transformation to predict the gamma ray log of shale, se-
facies) classification, which is widely convert a set of well-log vectors (attri- vere mismatch problems arise that will
used to divide well-log data to obtain butes) of possibly correlated variables ensure prediction failure. It is there-
target information. Clustering analysis, into a set of values of linearly uncor- fore of paramount importance to have
an adjunct to artificial intelligence, can related variables called principal com- correct lithofacies. Lithofacies iden-
determine electrofacies and categorize ponents. Then, principal components tification is classified into three gen-
lithological profiles quite efficiently. construct a new matrix, which has much eral approaches:
Porosity, one of the more impor- lower dimensions than the original. In ◗ Core-data analysis
tant petrophysical properties, can be this paper, the authors propose to use ◗ Knowledge-based well-log analysis
by the expert system
◗ Electrofacies
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
Compared with the first and second
of paper SPE 180439, “Pseudodensity-Log Generation by Use of Artificial Neural methods, electrofacies analysis is rela-
Networks,” by Wennan Long, University of Southern California; Di Chai, University tively inexpensive and more efficient.
of Kansas; and Fred Aminzadeh, University of Southern California, prepared for
the 2016 SPE Western Regional Meeting, Anchorage, 23–26 May. The paper has not Gaussian Mixture Model (GMM). It
been peer reviewed. is assumed that one well-log matrix is

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

JPT • MAY 2017 61


one mixture model, from the statistical cies after applying MBC. Before using that are massively interconnected. Feed-
point of view. A mixture model is a prob- MBC, it is necessary to change well- forward backpropagation is a common
abilistic model representing the pres- log matrix to combined-well-log ma- scheme for training the network.
ence of a subpopulation within an over- trix, which comprises the data from
all population. Here, the subpopulation all wells of interest. However, a seri- Field Application and Results
is well-log data from the specific type of ous problem for well correlation could In the case study covered in the com-
rock. The mathematical expression and exist because of the low efficiency of plete paper, there are eight wells in one
calculation of the GMM are described in the expectation-maximization algo- field, each of which has 38 different
detail in the complete paper. rithm. For this paper, the authors pro- types of well logs. After the data-mining
posed two steps to solve the problem: process, an ideal well is available to use
MBC. The foundational assumption of (1) sampling and (2) discriminant analy- as a training tool for the artificial neu-
MBC is that the data are generated by a sis (DA). In the sampling part, the size ral model; the trained-neural-network
mixture of probability distributions (or of the sample should be determined, model is used subsequently to gener-
mixture models) in which each part is a and then, on the basis of the strati- ate a density log from the target well.
different cluster or model. In the GMM, graphic property of the formation, the The momentum is an added parameter
the number of clusters has to be defined systematic-random-sampling method is to the generalized delta rule, to prevent
by the user. However, this might not used to select sample points. the learning process from converging to
be the case, because one rarely has the The MBC method can then be imple- a local minimum. It normally varies be-
advantage of accessing accurate rock mented to generate electrofacies from tween zero and unity.
properties before processing the well- sampling data. For the rest of the data The learning speed of a neural net-
log data. Therefore, the easy way to set set, the use of DA is suggested to put work is decided by the parameter of
this imperative parameter in GMM is data into the existing electrofacies gen- learning rate. In most cases, the num-
to add two components: (1) four basic erated from the previous step. ber of PEs in the input and output layers
models of the covariance matrix and DA is a classification method where- is given by the number of each dimen-
(2) the agglomerative algorithm. The in groups or clusters from populations sion. But the number of hidden layers
new upgraded method is the main struc- are known to exist a priori, and other and number of PEs in each one of them
ture of MBC. new observations are classified into one is somewhat arbitrary. One rule states
Before applying these two compo- of these on the basis of the measured that the number of hidden-layer neu-
nents, the likelihood function must be characteristics. DA assumes that differ- rons should be approximately 75% of
extended into multivariate form; then, ent classes generate data on the basis the input variables. Incorporating that
the log likelihood is concentrated. of different Gaussian distributions. For tenet with trial and error, the authors
The four basic models are scenarios this study, quadratic DA was chosen, in decided to use one-hidden-layer archi-
that have four related criteria and the which the covariance matrix can be dif- tecture and specified 40 neurons for
following characteristics: ferent for each class. The sample is then that single hidden layer.
◗ The first model has diagonal and classified into the groups that have the After data preprocessing, the input
equal covariance matrices and the largest quadratic score function. and output numerical values are nor-
same value in diagonal elements. malized within −1 to 1. Initially, weights
◗ The second model has diagonal Well-Log-Data Post-Processing of inputs are assigned randomly but are
covariance matrices but the same In this process, the optimal well for updated after each iteration.
value in each diagonal element of building a model by use of the ANN has A weighted sum of input variables at
the individual covariance matrix. been selected. An ANN is a biological- each PE is then modified by the hyper-
◗ The third model has equal ly inspired dynamic computation sys- bolic tangent sigmoid transfer function.
covariance matrices that have tem that processes data and learns in The data set introduced into the neural
nonzero off-diagonal elements. an inherently parallel and distributed network is divided further into training
◗ The fourth model’s covariance fashion. It is capable of extracting and subset, validation subset, and test sub-
matrices can vary among recognizing the underlying dominant set to avoid overfitting during the train-
components. patterns and structural relationships ing process. The ratio for each is 0.7,
The agglomerative algorithm is imple- among data. Once properly trained, the 0.15, and 0.15, respectively.
mented by use of single linkage, which is network can implicitly classify new pat- After building up the model, the
the similarity of the closest pair. If two terns and generalize an output on the next critical task is prediction or
clusters are close enough, the two will basis of the learned patterns. pseudowell-log generation by use of an
be merged. Typically, ANNs are arranged into existing model.
three types of layers: input, hidden, and Finally, a comprehensive prediction
Well Correlation. Well correlation output. Each layer comprises a different based on the obtained well-log data
is enabled by generating electrofa- number of processing elements (PEs) is implemented. JPT

62 JPT • MAY 2017


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© 2015 National Oilwell Varco | All Rights Reserved


Cointerpretation of Distributed Acoustic
and Temperature Sensing for Inflow Profiling

W ith the availability of


more-complex smart-well
instrumentation, immediate evaluation
The complete paper contains a de-
tailed discussion of the theory behind
new aspects of the analysis and summa-
By looping through all time/depth
blocks, the whole table can be populated
and changes in speed of sound as a func-
of the well response is possible as rizes the DAS flow-profiling procedure. tion of time and depth are able to be visu-
changes in the reservoir or well occur. alized. Resulting speed-of-sound values
Most current work in distributed Example—Inflow Profiling were in the range of 3000 to 3500 m/s,
measurements looks at distributed- With DAS which is expected from this type of oil at
acoustic-sensing (DAS) or distributed- Well A produces single-phase oil because the wellbore temperature. There is an ex-
temperature-sensing (DTS) data it is operating above the bubblepoint ception around the ICV locations because
individually, which limits inferences pressure with no water. The well has high-frequency noises dominate the sig-
about multiphase-flow problems. The a cased-hole completion with junctions nal at these depths. A shift in the speed
objective of this work was to look at that connect it to two laterals and a main of sound is observed at approximate-
these two types of data together and bore. The main bore and laterals were ly 6,100 ft. This change is not caused
determine what improvements can be left open hole to allow flow from their by any phase change but by a change in
achieved in multiphase-flow problems whole length. Three ICVs were installed the tubing radius and the correspond-
compared with the conventional in the well to control inflow from each ing change in temperature and pressure
methods of looking at DAS and lateral. The fiber line was run along the at that depth.
DTS alone. annulus between the tubing and casing. To address quantification of measure-
The three ICVs provide the operator with ment uncertainty, speed-of-sound results
Introduction the capability to run different production can be taken at a single time instance and
Two prominent tools that provide scenarios to study the effect of changing the integral values for all depths can be
compartmental-monitoring and con- an ICV position. Three different produc- plotted. At each depth, the highest inte-
trol capabilities of horizontal wells are tion scenarios were analyzed, with fully gral value is denoted as the most proba-
fiber-optic distributed measurements open, half-open, and fully closed valves. ble speed-of-sound value and confidence
and inflow-control valves (ICVs). The Once a new valve setting had been ap- limits are calculated. These limits dictate
combination of both tools provides an plied to the well, DAS data were collected uncertainty in the speed-of-sound calcu-
opportunity to adjust well production for 3 minutes after the surface flowmeter lation based on the slope line visibility in
by choking valves on the basis of ob- had shown a stabilized flow. the frequency/wave-number plot, which
servations made in real time, to hinder Acoustic data were segmented into is reflected on the spread of the integral-
production of unfavorable fluids. Chang- several blocks to calculate the speed of value curve.
ing downhole conditions provide new sound at that instance in time and at that These results are then used to calcu-
production data, and this management particular depth. The overall procedure late the fluid velocity by use of the Dop-
loop can be closed with an effective starts from well-data collection until a pler shift. Because the wellbore diam-
production-optimization algorithm. flow-rate measurement from the well is eter is known, velocity can be converted
In this paper, the authors present the acquired. For each time/depth block, the easily to a flow rate. Some outliers that
basic procedure to use DAS measure- 2D Fourier transform is applied. Then, resulted from uncertain speed-of-sound
ments for inflow profiling. The analy- the speed-of-sound line is fitted by find- measurements were removed from the
sis encompasses calculation of fluid-flow ing the maximum integral value. The re- plot. Because the well has three main
rate and fluid composition. The current sult for a block is inserted into a speed- entry points (against the ICVs), flow-
profiling algorithm is limited to analyz- of-sound table before moving to the rate changes are expected only at these
ing a two-phase fluid mixture. next block. depths. This was not always the case,
however, which might be because of the
distance required to achieve a stabilized
This article, written by JPT Technology Editor Chris Carpenter, contains highlights flow in the pipe after the inlet. Anoth-
of paper SPE 180465, “Cointerpretation of Distributed Acoustic and Temperature er artifact is observed at approximately
Sensing for Improved Smart-Well Inflow Profiling,” by Ahmed Bukhamsin and 4,000 ft and above, where the flow rate
Roland Horne, Stanford University, prepared for the 2016 SPE Western Regional tends to zero. This depth coincides with
Meeting, Anchorage, 23–26 May. The paper has not been peer reviewed. the buildup section from vertical to hori-

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

64 JPT • MAY 2017


0 0 30

25
0.2 0.2
Gas Volume Fraction
20
0.4 0.4
15

0.6 0.6
10

0.8 0.8
5

1 1 0
0 0.2 0.4 0.6 0.8 1 0 0.2 0.4 0.6 0.8 1
(a) Water Cut (b) Water Cut

0 0 5

4.5

0.2 0.2 4

3.5
Gas Volume Fraction

0.4 0.4 3

2.5

0.6 0.6 2

1.5

0.8 0.8 1

0.5

1 1 0
0 0.2 0.4 0.6 0.8 1 0 0.2 0.4 0.6 0.8 1
(c) Water Cut (d) Water Cut

Fig. 1—(a) Gas- and (b) oil-holdup errors when solving the nonlinear system of equations using a least-squares
optimization problem. Parts (c) and (d) show improvement in results when an informed initial solution is specified.

zontal. After accounting for flow from those provided by the fiber and ICV, reached by looking solely at the reservoir
the three ICVs, the total flow rate from respectively. To ensure that this setup and well pressures, which makes it diffi-
DAS was largely consistent with results is functional, the Joule-Thomson coeffi- cult to detect gas breakthrough by moni-
from the surface flowmeter. cient was calculated for all three single- toring only reservoir and well pressures.
phase fluids. For the three cases, the co- With the presumed availability of res-
Integrating DTS Analysis efficient from the two methods matched ervoir and well temperatures and pres-
With DAS within 1%. sures, the gas holdup is calculated. The
A simple radial reservoir-simulation To test if the qualification holds for outcome from this exercise can be com-
model was constructed to test this two-phase flow, a gas cap was placed pared with the simulator gas-holdup
inflow-profiling methodology. Diam- above the reservoir and the simulation values (representing surface-flowmeter
eter of the first ring was set to 0.1 ft was run for 1 year. This provides a wide measurement) from this production seg-
higher than the wellbore diameter to range of gas volume fractions, starting ment. It can be seen that the gas hold-
read the sandface temperature. The well from dry-oil production and then reach- up resulting from this approach follows
was defined as a multisegment well to ing a gas-dominated flow by the end of simulated values closely. The biggest ab-
track temperature variation along the the run. Reservoir and well temperatures solute difference between the two values
wellbore. The model contains 40 1-ft behave as expected. The effect is gradual- at any timestep is 5%. The difference is
layers to provide temperatures with a ly reduced as more gas is produced, and mainly caused by neglecting the casing
resolution similar to that of DTS. With reservoir temperature becomes higher thermal conductivity in the derivation.
this setup, simulation temperature and than that of the wellbore by the end of Both of the inflow-profiling approach-
pressure values would be considered as the run. The same conclusion cannot be es discussed were capable of characteriz-

66 JPT • MAY 2017


ing two-phase flow. For three-phase flow, relative to the simulation phase fractions. The algorithm developed was extended
however, an underdetermined system Errors were less than 5% in most cases by concurrently analyzing temperature
exists because there are more unknowns except when the gas volume fraction was data, which can amend some of the draw-
than equations. between 0.35 and 0.6. In those high- backs of using only acoustics for inflow
The least-squares method was used to error areas, it is clear that the optimizer profiling. Contrary to DAS, producing
find a solution that minimizes the resid- became stuck in a local optimum. Such a gas actually helps to solve DTS equations
ual of the system of nonlinear equations. plot helps to identify regions where an because of the cooling effect associated
Hundreds of reservoir-simulation runs indeterminate system exists. This issue with adiabatic thermal expansion of gas
were performed in which the gas volume can be alleviated by providing the opti- (whereas liquid thermal expansion has
fraction and water cut were varied by ad- mizer with some information about the a heating effect). This makes tempera-
justing fluid-contact depths in the reser- initial guess instead of selecting it ran- ture an effective complement to acous-
voir. DAS speed-of-sound measurements domly. In a real production case, this tic measurements to achieve three-phase
were represented by simulator output by information can include historical pro- inflow profiling.
considering the produced-fluid density duction data or simulation results. For These improvements were accom-
and bulk modulus. Likewise, DTS mea- this study, however, this was achieved by plished by deriving an equation-of-state
surements were represented by substi- selecting the preceding solution of the expression for the Joule-Thomson co-
tuting reservoir and well temperatures nearest gas-volume fraction and water- efficient. Moreover, a simple well-
and pressures. The end result is a solu- cut combination as an initial guess. Re- completion configuration was suggested
tion for the in-situ three-phase fractions sult improvements from this modifica- to capture a measurement of the coeffi-
as a function of speed of sound and Joule- tion are illustrated in Figs. 1c and 1d. The cient through temperature and pressure
Thomson coefficient. maximum observed error for this case drops between the reservoir and the well-
For each fluid composition and simu- was less than 5%. bore. Through thermal reservoir simula-
lated value of speed of sound and Joule- tion, the general solutions for this equa-
Thomson coefficient, a random initial Conclusions tion were found for a wide range of gas
guess was provided for the optimization In this paper, the authors have present- and oil fractions in the mixture. The two-
algorithm. Figs. 1a and 1b show absolute ed a work flow to analyze acoustic data phase and three-phase solutions were
errors from the least-squares optimizer that are distributed in time and space. accurate for all gas-fraction values. JPT

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Recompletions Solutions
Efficient Optimization Strategies for
Developing Intelligent-Well Business Cases

T he complete paper evaluates


optimization techniques to develop,
or support, business cases for intelligent or
have physical control and whose values
one wishes to optimize by maximizing
the objective function. Properties such as
to a level appropriate for the stage of the
analysis, and for the decision required
from the results.
smart wells. Recommendations are made oil price, permeability, and porosity are
for the methods most appropriate for large not control variables because one does Control Variables and
or small numbers of flow-control valves not have control over them. They can, Sensitivity Variables
(FCVs) and other parameters. Closed-loop however, be treated as uncertainty vari- In single-reservoir units where multiple
and model-based methods are compared ables to understand their effect on the FCVs are used to control fluid flow, the
in terms of  computational cost. project economics and the optimal solu- choice of the number of FCVs is an impor-
tion. In an intelligent-well-optimization tant decision. In most cases, one FCV will
Introduction problem, the control variables will often be used per compartment or partition. A
Downhole FCVs that are surface or re- include some or all of the following: compartment is defined here as being a
motely controlled were introduced in the ◗ Number and location of FCVs specific fraction of the reservoir that is
late 1990s to allow operators to control ◗ Location of packers directly connected to the well. Two pack-
fluid flow downhole without the need for ◗ Flow area of the FCVs ers usually bound a compartment. As
interventions. Their use and industry ac- The majority of FCVs installed today such, the number of packers theoretical-
ceptance have grown to the point at which, are multipositional devices with closed, ly required will usually equal the number
in certain locations, a significant fraction fully open, and choking positions. To of FCVs plus one or perhaps two if a sepa-
of the wells completed include downhole maximize the value of these devices and rate production packer is used.
flow control and are therefore considered to get closer to the optimal solution, it is While the number of FCVs or reservoir
to be intelligent or smart wells. necessary to optimize their flow area vs. partitions can, theoretically, be includ-
To determine whether a well is to be time. When the flow area of an FCV is a ed as a control variable, it is more prac-
completed as an intelligent well can be control variable, a separate control vari- tical to consider it as a sensitivity vari-
a complex process. A key component of able is required for each optimization able. This reduces the number of control
that process is determining the financial step. For example, to optimize a single variables and allows each case to be op-
implications associated with the alterna- FCV’s flow area annually for 5 years, five timized separately. Plotting the optimal
tives. Reservoir simulation is commonly control variables are required for that objective-function values vs. the number
used to determine the production pro- FCV. In practice, a set of control variables of FCVs allows the data to be easily ana-
files used in economic calculations. In are defined, and each affects the FCV lyzed and incorporated with other deci-
certain cases, such as ones in which an only for a specific period of time and is sion factors that may not be quantified in
intelligent well replaces two or more con- inactive for the remaining time. the objective function.
ventional wells, the requirements for res- For this methodology, the number of The location of the packers can be
ervoir simulation may be relatively sim- control variables will be the sum of the set as an optimization variable. This
ple. However, when the intelligent well number of optimization steps for each is particularly important where high-
is expected to facilitate the control and FCV. It is obvious that this can quickly permeability streaks or fractures inter-
optimization of produced fluids vs. time, lead to a large number of control vari- sect the wellbore and will quickly cause
more-complex modeling is required. ables. The number of simulation runs the breakthrough of unwanted fluids.
to optimize a problem increases rapid-
Control Variables ly with the number of control variables. Selecting the Number and
Control variables or decision variables It is, therefore, important to try to con- Location of FCVs
are the properties over which one may strain the number of control variables Traditionally, the number of FCVs and
packer locations are chosen manually on
the basis of well logs. Clustering algorithms
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of can automate this process to minimize
paper SPE 181062, “Efficient Optimization Strategies for Developing Intelligent-Well the permeability variance within a num-
Business Cases,” by Adam Vasper, Jon Endre Seljeset Mjos, and Tran Thi Thuy Duong, ber of well compartments or partitions.
Schlumberger, prepared for the 2016 SPE Intelligent Energy International Conference This method provides an intuitive divi-
and Exhibition, Aberdeen, 6–8 September. The paper has not been peer reviewed. sion of the wellbore into compartments.

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

68 JPT • MAY 2017


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the maximum, minimum, and start point
for each control variable. In an example
of the process used to develop a neural-
network proxy model for a problem with
five control variables, the optimizer first
runs a simulation with each control vari-
able set to the start value. Thereafter, in
Simulation Runs 2 through 6, a sequence
is followed in which four of the five con-
trol variables are set at the start value and
the remaining or calculated control vari-
able is set to a defined value.
The initial N+1 runs are used to train
the neural network before the optimi-
zation process begins. Properly defined
and constrained control variables will
Fig. 1—Reservoir Model 1.
make the training process and subse-
A more-advanced method is to use is located 35 ft below the top of the res- quent optimization significantly more
streamline simulations and water- ervoir and produces at a constant liquid effective. The authors demonstrate this
breakthrough or gas-breakthrough times rate of 4,000 STB/D. Three FCVs are in- with an example in the complete paper.
in the algorithms. The breakthrough or cluded in the well, one in each zone.
arrival times from the streamline simula- A second reservoir model, and its Conclusions
tion are processed to generate an arrival- associated analysis results, is provided When results (detailed in the complete
time log. The log is used to partition the in the complete paper. paper) of the two strategies determined
well, again considering the appropriate by use of the reservoir model are com-
constraints. This method is superior to Objective Function pared, the closed-loop optimization
the permeability-based method because it The authors define a simple objective strategy provides a fast method of op-
is based directly on the properties that are function, expected net present value, to timizing intelligent completions in a
detrimental to and implicitly beneficial to allow the optimizers to rank different reservoir-simulation model. The number
the economics. The higher-permeability outcomes and seek the best solution. The of control variables does not increase with
or earlier-breakthrough compartments objective function uses fixed values for the number of optimization timesteps.
are choked back proactively or reactively produced oil and the cost of handling and This makes it particularly useful for wells
or in a combined manner to maximize the treating water. The revenue and produc- with a large number of FCVs or in cases
objective function. tion costs of gas are considered equal and where limited computing power or time
thus are not included in the calculation. restraints exist. It is recommended to
Reservoir Model 1 A discount factor converts the cash-flow group FCVs on the basis of common flow
Reservoir Model 1 is 4,100 ft long, stream into present-day terms. Because characteristics and then define and opti-
2,600  ft wide, and 100 ft thick; it con- the primary intention of the paper is to mize the control variables per group.
tains 52,800 active grid cells (Fig. 1). compare the efficiency of different opti- The model-based optimization strate-
The cell sizes average 46 ft in the X- mization strategies, the costs of equip- gies are computationally more expensive
direction (along the well) and 87 ft in the ment were not included in the objective than the closed-loop solutions and typi-
Y-direction. The grid-cell sizes are small- function. The objective function is de- cally require between N and 2N simula-
est near the well, increasing in size with fined in the complete paper. tion runs to reach an optimal value. In
distance from the well. The resolution in wells with a significant number of FCVs,
the Z-direction is 5 ft. The top of the res- Optimization Strategies the number of optimization timesteps
ervoir is at 6,000 ft, and the oil/water The authors use two classes of optimi- must be restricted, which may reduce the
contact is at 6,100 ft. zation strategy: a closed-loop strategy quality of the results. One possible meth-
The model has constant porosity and based on the produced-phase ratios and od is to use the closed-loop strategy to
horizontal permeability. It has a 700-ft- a proactive or model-based method, both develop start points for the model-based
wide zone of high vertical permeabil- described in detail in the complete paper. strategy, though this was not investigated
ity and an active aquifer maintaining a To maximize the efficiency of the op- by the authors.
constant reservoir pressure. The zone timization process, it is necessary to The importance of properly con-
of high vertical permeability splits the understand the methods used to ex- straining the control variables was
reservoir into three zones. No capillary plore the optimization space or to build demonstrated for both strategies. The
pressure effects are included. proxy models. The methods used obvi- proposed methodology significantly re-
Production was simulated using a ously vary with the choice of optimizer duced the simulation runs required to
2,566-ft-long horizontal well with a tub- and software platform. In the software reach optimal values by use of only sim-
ing internal diameter of 4.56 in. The well used in this study, the authors define ple calculations. JPT

70 JPT • MAY 2017


TECHNOLOGY FOCUS

Multilateral/Extended-Reach Wells
Bernt S. Aadnøy, SPE, Professor of Petroleum Engineering, University of Stavanger

In a previous issue of JPT, I read an inter- During the last decade, mous systems are being developed with
esting comment. A petroleum engi- more-precise control functions. A related
neering department had visitors. One wells such as horizontal group of tools includes water-stop mech-
of them was asked to draw a well on wells, long-reach wells, anisms. Water production is a consider-
the chalkboard, and she instinctive- able challenge for the oil industry, from
ly drew a horizontal well. She obvious-
and multilateral wells production, cost, and disposal perspec-
ly considered horizontal wells as com- came to be considered tives. At present, there exist many useful
mon. This illustrates that, during the last mature technologies. completion technologies for inflow con-
decade, wells such as horizontal wells, trol and for workovers and stimulation
long-reach wells, and multilateral wells purposes. New and improved function-
came to be considered mature technolo- alities open up for more-detailed reser-
gies. Another aspect is that the techni- field recovery. Multilateral wells expose voir analyses that ultimately will result
cal level has increased significantly dur- more reservoir and improve reservoir in higher field recovery.
ing this development. Currently, in well drainage, whereas long-reach wells The featured papers all show improved
engineering, there are also many activi- often increase drainage from existing solutions for constructing multilateral
ties designed to stretch limits, improve platforms. Up to 80% of long horizon- and long-reach wells. They show the
processes, and make solutions more tal wells may have inflow-control tools. dynamics of a continuous striving for
competitive economically. The most common is the inflow-control- improvements. These well types are very
The main objective of multilateral device orifice to control the water/oil important tools in the search to maximize
and extended-reach wells is improved contact, but more-advanced autono- recovery from petroleum fields. JPT

Bernt S. Aadnøy, SPE, is a professor of petroleum engineering at


the University of Stavanger, specializing in all aspects of well Recommended additional reading
engineering, including geomechanics. He worked for major at OnePetro: www.onepetro.org.
operators in the oil industry from 1978 until 1994, when he transi- SPE 180445 Increasing Performance of
tioned to academia. Aadnøy has published more than 150 papers, Multilateral Wells Using Oil Fingerprinting
holds several patents, and has authored or coauthored five by M.D. Jensen, ConocoPhillips, et al.
books, among them Modern Well Design, Petroleum Rock SPE 183422 Korchagina P-108: Breaking
Mechanics, and Mechanics of Drilling. He was also one of the edi- ERD Records Offshore North Caspian
tors of the SPE book Advanced Drilling and Well Technology. Aadnøy holds a BS Sea—A Case Study by Vasily Zvyagin, Lukoil,
degree in mechanical engineering from the University of Wyoming, an MS degree in et al.
control engineering from The University of Texas at Austin, and a PhD degree in petro- SPE 184608 Reducing Well Costs and
leum rock mechanics from the Norwegian Institute of Technology. He was the recipi- Extending Field Life With Intelligently
ent of the 1999 SPE International Drilling Engineering Award and is also an SPE/AIME Controlled Trilateral and Quadrilateral
Honorary Member (2015) and an SPE Distinguished Member (2015). Aadnøy is a TAML Level-5 Multilaterals by Mark Glaser,
member of the JPT Editorial Committee and can be reached at bernt.aadnoy@uis.no. Halliburton, et al.

JPT • MAY 2017 71


A Methodology
for Multilateral-Well Optimization

M ultilateral wells with smart


completions controlled by
different flow-control technologies
for different inflow-performance condi-
tions, such as different rate-dependent
GOR curves at different operational
pressure drop of the flow from the res-
ervoir into the wellbore. The Vogel type
curve was selected for all cases as the
offer great operational flexibility, conditions. The model was created as a most representative for the high-GOR
with each lateral able to be operated black-oil model. In each lateral, the flow crude in the case study.
and optimized independently. and pressure drop through the reservoir
Understanding the contribution of are determined in the horizontal section, Outflow Curve. The outflow curve rep-
each lateral in the complexity of the as well as the annular flow between the resents the pressure drop across the
system was a major objective of this casing and tubing. Each ICV is represent- completion. Because the node for all the
study. In order to optimize the system ed with a choke model. cases has been selected at the reservoir
and predict results under different The primary method for validat- layer, the outflow represents the pres-
operational conditions, a multilateral- ing a model is to match it to an ob- sure drop for different rates from the
well-modeling methodology was served production well test. This val- reservoir layer to the wellhead.
developed. This methodology covers idation includes the requirement to
two main factors affecting multilateral represent flow and pressure at different Operating Equilibrium Point. The op-
productivity—a flow-dependent gas/oil operational conditions in order to pre- erating equilibrium point is the inter-
ratio (GOR) and interference between dict operational conditions. section between the inflow and outflow
the laterals. A nodal analysis of a well model con- curves, which represents the produced
sists basically of two different curves— oil rate at a certain flowing bottomhole
Wells Overview an inflow curve that represents the flow pressure. Matching actual observed rate
The study was based on multilater- rate and flowing bottomhole pressure at and modeled output rate at the opera-
al wells complete with inflow control different conditions and an outflow curve tional conditions during the well test is
valves (ICVs). As a general description, that represents the behavior of the pres- then performed.
the wells are completed with three to sure drop at different flow rates through In order to generate a representative
seven laterals and each lateral is isolated the completion. model, two main variables need to be
by packers and controlled by an ICV, as The intersection of the inflow and considered—GOR and interference fac-
shown in Fig. 1. outflow curves determines the op- tor (IF).
erational point and is the point that GOR. In most of the nodal analysis
Multilateral-Well Modeling needs to be matched at different models, there are two variables that are
A multiphase surface system flow simu- operational conditions. considered constant in each flow rate or
lator that is able to optimize production The following work modeling process operational condition. These two vari-
from wells and networks as an integrated is proposed in order to obtain a repre- ables are water cut and GOR.
system was adapted to generate and op- sentative model and obtain good results In this case, water cut was considered
timize the subsurface multilateral-well when running optimization scenarios: as a constant variable or even as zero as
flow behavior. This simulator is used ◗ Inflow curve per the production, but it is not the same
mainly for surface network modeling and ◗ Outflow curve for GOR. For some wells, the GOR in-
optimization, but the complex subsurface ◗ Operating equilibrium point creases as oil rate increases.
well system was modeled with this appli- ◗ Production optimization This phenomenon is called rate-
cation. This complex simulation model dependent GOR, meaning that, if there
resolves and finds the optimal ICV pres- Inflow Curve. The inflow-production- is a change in the production rate and
sure drop and diameter for each lateral relationship (IPR) curve represents the pressure conditions, the GOR will also
change. It is very important to capture
this phenomenon in the model because
This article, written by Special Publications Editor Adam Wilson, contains highlights the GOR value will be affected by the pro-
of paper SPE 183004, “A Methodology for Multilateral-Well Optimization—Field duced oil rate and will significantly affect
Case Study,” by Ivan Cetkovic, SPE, Majed Shammari, SPE, and Talal Sager, Saudi the pressure drop across the system.
Aramco, prepared for the 2016 Abu Dhabi International Petroleum Exhibition and IF. In the typical production-test pro-
Conference, Abu Dhabi, 7–10 November. The paper has not been peer reviewed. gram, the first flowing test is of the en-

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

72 JPT • MAY 2017


Fig. 1—Multilateral-well completion (ICV).

tire well, so all the laterals are produced Multilateral-Well-Test Design dependent skin, wellbore storage, frac-
at the same time and then, afterward, Work Flow ture geometries, and interference from
each lateral is tested separately to de- To identify oil, gas, and water produc- the other laterals can be accomplished.
termine the specific productivity and tion properly under different operational
fluid behavior of each lateral. Both conditions for each lateral under com- Well Model. Generating a well model
total-well and lateral-by-lateral produc- mingled production, four steps need to before the production well test is per-
tion tests are produced typically under be followed in order to obtain the best- formed will give the engineer the tools
several different operational conditions quality data and results: to have a better understanding of the
(i.e., choke sizes). ◗ Well-test planning and coordination results and to analyze, validate, and
The total production the well produces ◗ Well-test design optimize them in real time or during
from all laterals is typically less than the ◗ Well model the well-test period. Generating a well
sum of the individual-lateral production ◗ Well-test program model with previous well-test data will
rates. This is because of the interference help the engineer to understand the well
effect between the laterals. Well-Test Planning and Coordination. productivity for each lateral and the in-
An IF was generated to match the re- During the well-test period, pressure, teraction of each lateral during commin-
duction in production observed from the temperature, and rates need to be ob- gled production.
total well and match the model under tained on a real-time basis under the
different operational conditions. same operational conditions. For this Well-Test Program. The well test is pro-
The IF is still under study and needs reason, it is very important to have close posed in these types of wells to be di-
more technical and testing development. coordination during the test operation vided into three different stages—low
The actual proposal is simple in that it in order to ensure that the required in- drawdown, high drawdown, and build-
is related only to the productivity index formation is obtained during the test. up. The program for the well test will be
of each well, although other parameters In order to calculate productivity index, defined mainly to obtain the following
(e.g., well distance, distance between drawdown, GOR, and water cut under information about the well:
laterals, lateral length and diameter, stable and representative conditions, all ◗ Reservoir pressure
drainage-area shapes) will have different the previous variables, rates, and pres- ◗ Productivity index of each lateral
effects on the productivity index. sures need to be obtained and analyzed ◗ GOR and water-cut rate
in real time. dependencies for individual laterals
Production Optimization. The main and commingled
objective of production optimization Well-Test Design. The main objec- ◗ Operational conditions (inflow
in this study is to identify the optimal tives of the well-test design through a and outflow curves) for individual
oil and gas rates on a well and field pressure-transient-analysis application laterals and commingled
basis. On a well basis, the objective is are to define and optimize the flow-after- A well-test program designed to obtain
to obtain optimal production to avoid flow and shut-in periods in order to ob- this information for multilateral wells
high water cut or high GOR. On a field tain representative data from the system. can be defined as a number of flow-after-
basis, the objective is to identify the op- With the combination of an analytical flow stages (depending on the number of
timal field rate that satisfies operational and a numerical model, a better un- laterals) at a low and high drawdown fol-
well constraints. derstanding of productivity index, rate- lowed by a buildup test. JPT

JPT • MAY 2017 73


Overcoming Challenges and Optimizing
Liner Deployment in Long Laterals

A North Sea field development


included installation of long
4½-in. completion liners in the
starting logging, the tool can log for 36
days continuously, enabling multiple in-
stallations on a single battery package.
Over the course of the project, the
logging tool recorded
◗ Downhole data of up to 10,486-psi
horizontal reservoir sections of each absolute pressure
well. To minimize overall risk, the Logging Tool Description ◗ Differential pressures of up to
operator planned to use managed- The tool consists of three major compo- 3,814 psi
pressure drilling (MPD). Despite the nents—a main body, housing, and a tool ◗ Axial loads of up to 82 tons of
expected positive effects of MPD, a joint. The main body (inner mandrel) compression
strong understanding of the downhole contains the electrical package with sen- ◗ Tension of up to 63 tons
dynamics during deployment of the sors. The housing protects the electrical ◗ Torque values of up to 15,000 lbf-ft
lower-completion liner was needed. package and is installed on the outside of ◗ Temperatures as high as 116°C
To address this challenge, the operator the main body. The tool joint is mounted
installed a newly developed work-string- on the lower section on the main body. Key Log Data
dynamics logging tool directly above the Axial loads on the tool are transferred The key log data recorded during the
liner-hanger-running tools. through the main body and the tool joint; campaign were torque, axial loads,
the housing is not exposed to axial loads. and pressure.
Logging-Tool Torque is transferred through a robust Torque modeling is performed to un-
Technology Overview spline system. derstand effective torque transfer from
The logging tool is a compact and robust surface to downhole and to ensure that
memory-based surveillance tool made Results operations do not jeopardize the integ-
for drillpipe-conveyed well operations. The logging tool was placed directly rity and functionality of any downhole
It is designed, manufactured, and main- above the liner-hanger-running tool in connections or tools in the well.
tained to be used without being a weak the installation string on seven liner de- Accurate and detailed axial-load data
point in the string. The tool is equipped ployments in this campaign. For all instal- near the liner-top tools confirmed the
with an electronics package consisting of lations, both the primary logging tool and successful and unsuccessful setting of
sensors, batteries, and memory. the backup were started at the base be- liner-top packers.
The logging tool records fore shipment to the rigsite. This allowed Pressure is often used to manipulate
◗ Axial loads (tension and for testing and field verification of the and operate downhole tools in various
compression) tool’s memory and battery lifetime. After ways. Often, operators are reliant on sur-
◗ Torque (left/right) completion-liner installation, the opera- face pressure readings and manipulation
◗ Pressures (absolute internal tor recovered the deployment string to of rig pump rates to achieve the desired
pressure, absolute external surface with the logging-tool memory pressure to operate these tools. How-
pressure, and differential pressure) sub, which was then shipped back to the ever, other pressure variations occur
◗ Temperature workshop onshore. The vendor then downhole without a means of monitor-
The logging tool is typically shipped downloaded the data for analysis. ing at the surface. Closed-end displace-
to the rigsite ready to be run in the well. In total, the logging tool had more than ment, piston effects from pipe move-
The rig crew treats the tool as though it is 27 days of operational time in the well ment, and varying fluids with differing
a standard drillpipe pup joint, eliminat- for this project. On several of the jobs, specific gravities result in pressure varia-
ing the need for dedicated field personnel the tool returned with full memory after tions at depth. These variations can in-
and increased personnel on board. After having logged data for 36 days. fluence liner installations in unexpected
ways. In the operator’s project, this phe-
nomenon was observed when differen-
This article, written by Special Publications Editor Adam Wilson, contains highlights
tial pressure downhole resulted in lost
of paper SPE 181288, “Overcoming Challenges, Improving Understanding, and seal rings on the lower-completion liner-
Optimizing Liner Deployment in Long Laterals,” by Kim Daniel Mathisen, SPE, hanger-running tool.
Tore Sørheim, SPE, and Tom Rune Koløy, SPE, Trican, and Neil Decker, SPE, Hess,
prepared for the 2016 SPE Annual Technical Conference and Exhibition, Dubai, Rotating the Liner. In this project,
26–28 September. The paper has not been peer reviewed. downhole data were applied to evaluate

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

74 JPT • MAY 2017


actual liner-top torque when the liner Completion-Liner-Deployment Performance—Achieving Planned Total Depth

Campaign Wells
needed to be rotated and worked to its 00-A

Development-
2000 to 2010
final depth. Liner connections and down- 00-B
00-C 62.3%
hole completion tools have limited ro- Success Rate
00-D Actual
bustness, and the operator performed Plan
modeling to determine maximum allow- 00-E

able surface torque so as not to jeopardize 10-A

liner integrity. The downhole data at the 10-B

Development-Campaign Wells
Rotated Completion
liner top provided valuable input to refine 10-C

this modeling when it became necessary 10-D Rotated Completion

2010 to 2016
to rotate the liner and work it to bottom. 10-E
10-F Attempted to Rotate—No Go
Packer-Setting Signature. In this proj- 10-G

ect, downhole data acquisition provided 10-H


98.9%
10-I Success Rate
detailed axial-load data, which helped Rotated Completion
10-J
identify how much compression is set
10-K
down on the packer during the opera-
tional sequence to set the liner-top pack- 0 500 1000 1500 2000 2500 3000
er. Setting a liner-top packer results in Completion-Liner Length (m)
a distinct and repeatable load and pres- Fig. 1—Comparison of development-campaign completion-liner-deployment
sure signature. This signature can be performance.
useful in providing confirmation that the
packer has been set properly. ◗ Managing differential pressure to depth. Only one of the floated comple-
prevent running-tool seal damage tion liners required rotation to achieve
Lost Packoff Seals. The ability to ana- and potential fishing operations planned total depth.
lyze downhole pressure variations was
helpful in troubleshooting why seal rings Conventional vs. Floated Liner De- Conclusion
were lost from the packoff-seal stack on ployment. Load data provided addition- A work-string-dynamics logging tool can
the liner-running tool. The cause was al input for friction-factor tuning and provide greater insights than common
differential pressure across the seals refinement of torque-and-drag model- surface parameters into the forces actu-
when the liner-hanger-running tool was ing efforts. The initial wells in the cam- ally experienced by tools at depth in wells
released from the lower completion. paign all deployed the liner convention- during deployment of the lower comple-
ally, filling the deployment string as the tion and liner-hanger system. Addition-
Overall Campaign Results. Downhole liner was run in hole. This worked rea- ally, the use of a downhole logging tool in
data captured by the logging tool helped sonably well for the first six wells in multiple wells allows operators to com-
quantify and refine torque-transfer mod- the campaign, although half of them pare loads and pressures experienced
eling, allowing for a more aggressive rota- required rotation and  working down of during these operations across several
tion of the completion liner while remain- the completion liner. wells. This incremental detail is helpful
ing within the design limitations of the After a particularly challenging liner for optimizing operations and trouble-
equipment. This was an important use of deployment halfway through the cam- shooting challenges. Because downhole
these data because one-third of the wells paign, the project team realized it would data help in quickly understanding op-
in this campaign required rotation of the be necessary to implement the con- erational challenges and identifying root
completion liner during deployment. tingency option of floating the lower- causes, failure investigations are stream-
The logging-tool data were also valu- completion liner. lined and the time to develop counter-
able in troubleshooting unexpected re- Conventional and floated liner de- measures to mitigate against repeat fail-
sults, determining root causes quickly, ployment resulted in very different axial ures in upcoming wells is shortened.
and developing rapid mitigations in sub- loads and pressure responses. Hav- In combination with drilling-and-
sequent wells. ing a logging tool in the deployment completion design improvements on the
Downhole data helped the opera- string allowed for a comparison of front end of the project, the improved
tor improve operations continuously these approaches. understanding of the downhole dynam-
and prevent failures and nonproductive After the initial floated liner deploy- ics related to liner deployment played an
time through ment was proved successful, floating the important role in the success of the re-
◗ Renewing a focus on prevention liner was adopted as a best practice on cent 11-well field-development campaign
of premature liner-running-tool all subsequent wells of the campaign. In in the North Sea. On average, this pro-
release total, five wells used floated liner deploy- gram achieved 98.9% of the planned
◗ Optimizing the packer-setting ment and achieved greater operational completion-liner total depth, a substan-
operational sequence to prevent efficiency and a 1% improvement in ac- tial improvement from the previous cam-
failures tual liner depth relative to planned liner paigns, as shown in Fig. 1. JPT

JPT • MAY 2017 75


Next-Generation High-Torque
Connection for Extended-Reach Wells

L ong laterals (>6,000 ft) are


generating industry challenges
that do not exist with shorter lateral
Dovetail Self-Locking Thread
• Double radius to reduce stress concentration
• Variable-width threaded portions for extreme
Internal Metal-to-Metal Seal
• Internal-gas-pressure resistance
• External-gas-pressure resistance
high torque • Radius-on-cone contact for stability
wells (2,000–5,000 ft). These longer
lateral wells require connections
to be exposed to extreme torques,
bending, and rotational loads that
may render some commercially
available connections ineffective in
Fig. 1—Diagram and basic thread and seal design of high-torque threaded-and-
getting the string to location and could coupled connection.
compromise sealability. This paper
demonstrates how the latest generation bular need to be able to withstand the ◗ Sealability performance
of those connections has been tested high torque level and the connection ◗ Structural performance
and validated to extreme loads before needs to maintain its mechanical and
being installed in the wellbore. sealability performance. Make-and-Break Performance. Make-
and-break performance is one of the key
Introduction Methods aspects of connection performance be-
Extended-reach drilling (ERD) has exist- Connection Basics. The innovative con- cause the connection needs to be able to
ed since the 1970s, and continuous devel- nection presented in this paper was de- withstand field running environments at
opment has pushed the lengths of the lat- veloped to meet the increasing challenges extreme high torque.
erals. One of the main challenges in ERD of ERD. The connection uses a threaded- The make-and-break performance of
is the drag friction force, mainly because and-coupled design that allows for maxi- all sizes of connector was validated suc-
of the string weight during its deployment mum tensile efficiency along with maxi- cessfully on the basis of American Pe-
in deviated sections and long horizontal mum torque capacity (Fig. 1). The thread troleum Institute (API) Recommended
laterals. As a consequence, conventional design is a self-locking dovetail concept Practice (RP) 5C5 for casing applications.
standard running practices are not effec- that has excellent torque capacity. The To validate the high-torque performance
tive for running the casing and liner. seal design is a single internal metal-to- of the connection, all make-and-break
To cope with this and reduce drag, one metal seal with radius-to-cone contact instances were performed at maximum
technical alternative used by operators is surfaces. This provides stable seal con- torque with sealability (MTS).
string rotation for casing and production tact during all loading sequences and ro- In addition to MTS, maximum torsion-
liners and even for lower completions. bust make-and-break performance. al value was also considered and was rep-
Torque-and-drag analysis is one of the resentative of the maximum torque that
key factors to success on such projects. Finite-Element Analysis. The finite- could be applied to the string while main-
The longer the horizontal lateral depar- element method (FEM) was used across taining structural performance.
ture, the higher the probability of requir- the product line to evaluate the per-
ing high torque. Torque also can be used formance and criticality of each size of Sealability Performance. The connec-
to improve cementing quality, by use of connector. The FEM helped in the eval- tion was validated to API RP 5C5 Connec-
string rotation during cementation. uation and refinement of connector de- tion Application Level IV.
Because high torque is required for signs with respect to
ERD, both the connection and the tu- ◗ Makeup curve Elevated-Temperature Performance.
The connection was validated for tem-
peratures up to 356°F using yellow-rated
This article, written by Special Publications Editor Adam Wilson, contains highlights
thread compound with combined-load
of paper SPE 183415, “Development of Next-Generation High-Torque Oil-Country- test sequences.
Tubular-Goods Premium Connection for Extended-Reach Wells,” by Jerry Buster
and Justin Perkins, VAM, and Leonardo Azeredo, Vallourec, prepared for the Bending Performance. Bending in par-
2016 Abu Dhabi International Petroleum Exhibition and Conference, Abu Dhabi, ticular is a critical aspect of the connec-
7–10 November. The paper has not been peer reviewed. tion performance related to shale-play

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

76 JPT • MAY 2017


ERD and was specifically validated. In all Performance History eral section of the well, the load dynamic
cases, the maximum bending of 40% (up As the number of horizontal wells in- of the wellbore and the torque and drag
to 42°/100 ft) was applied to the connec- creases, operators require validated con- created by the well geometry typically
tion during elevated-temperature tests. nections and quality pipes able to sustain will require the string to be rotated to
high-load conditions during the oper- reach the target depth. Oil-based mud is
Fatigue Performance. Six specimens ational frequencies throughout the life used in the wellbore to assist in the in-
were used to characterize the fatigue of the well. stallation. A connection with extreme-
performance of the new connection. Solutions for these well applications high-torque capability can help the pro-
Stresses were applied to each specimen include connections that have high- cess be manageable and efficient.
in the form of bending, with a minimal tension, -bending, and -compression fea- The type of connection detailed in the
amount of internal pressure (100 psi) tures. The connection and pipe in this complete paper, designed with extreme-
applied for leak detection to confirm application are subjected to high fatigue torque capability, has contributed to the
when the samples fail. Three different loads, testing the maximum capability of ability for these strings to be installed.
bending levels were tested, and the con- connections on the market today. The installation process reduces time
nection performed very well. The common size range for the and cost levels that could make drilling
production-casing string is 4½ to 5½ in. these wells uneconomical.
Rig Test. To confirm the robustness and Some isolated cases have seen operators The evolution of deeper and longer lat-
performance during installation at the run liners and then a tieback with 7-in. erals has tested the limits of most con-
wellbore, a rig-running simulation was casing, to reduce fracturing pressure; nections. Well design and analysis de-
performed on 10 joints of pipe that were however, approximately 80% of shale termine that the torque required to land
produced on the production lines. The gas wells have 5½-in. production casing. these production strings may be in excess
following conditions were tested: The 5½-in.-production-casing in- of 20,000 lbf-ft. Tighter-clearance well-
◗ Fast makeup speed stallation process is standard until the bores and sticky shale also contribute to
◗ Misalignment casing-shoe joint enters into the curve concern over the installation of the pro-
◗ Triple stand or build section (typically at a build rate duction casing.
◗ High torque up to 10°/100 ft) of the wellbore. It is not The development of this innovative
The connection performed very well uncommon for the casing string to be in- premium connection has contribut-
during the trial, with no anomalies stalled in the range of 25 to 30 joints per ed to successful completion of longer
encountered. hour. As the string is installed in the lat- extended-reach laterals. JPT

Unmanned Systems
Technical Section
SPE has formed a Technical Section for members This section seeks to:
to promote the exchange of information and • Develop capability through workshops and
technology, as well as develop understanding of and conferences
competence in the area of unmanned systems.
• Transfer knowledge through meetings,
This new technical area covers remotely operated and communication, and PetroWiki®
autonomous vehicle systems, software solutions, and
power systems for marine, air, and land environments • Promote safety, professionalism, and social
such as ROVs and drones. responsibility through ethics, certification, and
HSSE-SR
Deepen your learning and share your insights with
other SPE members on the subject both virtually and • Provide public education through STEM
face-to-face. volunteering and student competition engagement

Learn more and join today at connect.spe.org/unmannedsystems.

JPT • MAY 2017 77


TECHNOLOGY FOCUS

Cementing/Zonal Isolation
Gunnar DeBruijn, SPE, Principal Instructor, Schlumberger

The terms “cement” and “isolation” are Enhancing performance ing zonal isolation in increasingly chal-
used interchangeably in the oil field. Stat- lenging environments, including deeper
ing the obvious, cement is a material in cementing is a necessary water, long-reach wells, and wells sub-
that is mixed as a slurry, pumped into component of challenging, jected to large temperature and pres-
place, and then predictably turns into sure cycles throughout the life of the
an impermeable (very low permeability)
and improving, the costs well. Every geographic location presents
solid. Despite cement’s remarkable prop- of drilling a well. unique challenges.
erties, the search continues for enhance- As engineers in the drilling industry,
ments in the areas of cost and isolation we also continue to look for verifica-
performance. Several themes are evi- especially related to strength and flex- tion that isolation has been achieved.
dent throughout the sessions and papers ibility. However, we have yet to find a sys- Programs, laboratory tests, real-time
that were presented at SPE events this tem that exceeds both the economic and monitoring, and post-job documentation
year. Efficiencies and enhancements have the technical performance of cement in all contribute to a holistic approach to
been explored even to the point of replac- today’s wells for zonal isolation. As we cementing and barrier verification. The
ing cement with other materials. Along continue to search for new isolation sys- featured papers, along with the addi-
with each improvement, verification of tems, we also continue to enhance our tional reading, explore new materials,
zonal isolation has been investigated. existing processes and materials. improved techniques, and optimized
Replacements for cement systems, Enhancing performance in cementing performance for zonal isolation. JPT
such as geopolymers and resins, are inves- is a necessary component of challeng-
tigated in a number of papers. Geopoly- ing, and improving, the costs of drill-
mers have promising long-term strength ing a well. New components, updates Recommended additional reading
and bonding properties. Resins also have to additives, and specifically designed at OnePetro: www.onepetro.org.
desirable performance characteristics, cement systems are enablers to provid-
SPE/IADC 184672 High Assurance
on Barrier Placement and Evaluation for
Deepwater Wells in Brazil by V. Reveth,
Gunnar DeBruijn, SPE, is a principal instructor for Schlumberger Schlumberger, et al.
Well Integrity (Cementing). He has 27 years of experience work- SPE 180344 Relating Cement-Additive
ing in the oil industry, mostly in cementing. DeBruijn has worked Performance to Mix-Water Composition
across North America and in deep water around the world, sup- for Deepwater and Salt-Zone Applications
porting cementing and well-integrity initiatives. His current by B.R. Reddy, Aramco, et al.
focus is on training and competency development for the world- SPE/IADC 184675 True Self-Healing
wide cementing population. DeBruijn also regularly contributes Geopolymer Cements for Improved
to industry standards. He holds a BS degree in mechanical engi- Zonal Isolation and Well Abandonment
neering from the University of Alberta. DeBruijn serves on the JPT Editorial by Xiangyu Liu, The University of Texas at
Committee and can be reached at gunnar1@slb.com. Austin, et al.

78 JPT • MAY 2017


Real-Time Monitoring of Piezoresistive
Smart Cement To Verify Operations

A field well was designed, built, and


used to demonstrate the concept
of real-time monitoring of the flow of
admixtures are used with cement, ten-
sile and flexural properties are modified.
Also, admixtures will have an effect on the
Smart
Cement

drilling mud and smart cement and the rheology, corrosion resistance, shrink-
hardening of the cement in place. A new age, thermal conductivity, specific heat,
method has been developed to measure electrical conductivity, and absorption

Higher-Swelling Clay
the electrical resistivity of the materials (heat and energy) properties of cement.
with the two-probe method. Using the A smart cement has been developed Strain
new concept, it has been proved that that can sense any changes going on in- Gauge
resistivity dominated the behavior of side the borehole during cementing and
drilling fluid and smart cement. during curing after the cementing job.
The smart cement can sense the changes Probes
Introduction in the water/cement ratio, different addi-
Elevation
With reported failures and growing in- tives, and any pressure applied to the ce-
terest in environmental and economic ment sheath in terms of piezoresistivity. Water Table
concerns in the oil and gas industry, in- The failure compressive strain for the

Lower-Swelling Clay
tegrity of the cement sheath is of major smart cement was 0.2% at peak compres-
importance. Oilwell cement serves many sive stress, and the resistivity change is on
purposes in cemented oil and gas wells. the order of several hundreds, making it
Foremost among these is to form a seal- more than 500 times more sensitive.
ing layer between the well casing and the
geological formation. Theory and Concept Thermocouple
In order to characterize the cement Impedance Model. Equivalent Circuit.
and cement concrete in various appli- It is important to identify the most ap- Elevation
cations, electrical-resistivity measure- propriate equivalent circuit to represent
Smart
ment has been used by many researchers. the electrical properties of a material to Cement
Studies have also examined the piezo- characterize its performance with time. Instrumentation
Casing
resistive behavior of modified cement- In this study, different possible equiva- 0.8-in.-
based and polymer composites. One con- lent circuits were analyzed to find an ap- Diameter
clusion is that the change in resistivity propriate equivalent circuit to represent Plain View Tube
has the potential to be used to determine smart cement and drilling fluid. Strain
the integrity of the materials. Thermocouple Probes
Gauges
Resistance and Resistivity. After years
Smart Oilwell Cement of studies and on the basis of the current Fig. 1—Schematic of the field well
with instrumentation.
Cement-slurry flow and stability are the study on well cements and drilling muds,
major requirements in well cementing. electrical resistivity was selected as the evaluate the performance of cement and
Oil- and gas-well cements are usually sensing property for both cements and drilling muds. Hence, two parameters (re-
made from Portland cement clinker or drilling muds. This is unique in that the sistivity and change in resistivity) will be
from blended hydraulic cements. When same monitoring system can be used to used to quantify the sensing properties.
Resistivity of the materials to the
changes (composition, curing, stress,
This article, written by Special Publications Editor Adam Wilson, contains highlights
fluid loss, and temperature) have been
of paper OTC 27060, “Field Test for Real-Time Monitoring of Piezoresistive Smart
quantified. Correlating the changes, such
Cement To Verify Cementing Operations,” by C. Vipulanandan, M. Ali, B. Basirat, as composition, curing, stress, cracking,
A. Reddy, N. Amin, and A. Mohammed, University of Houston; S. Dighe, SPE, fluid loss, and temperature, to the resis-
Baker Hughes; and H. Farzam, Cemex, prepared for the 2016 Offshore Technology tivity and change in resistivity will sup-
Conference, Houston, 2–5 May. The paper has not been peer reviewed. Copyright 2016 port the monitoring of the materials’ (ce-
Offshore Technology Conference. Reproduced by permission. ment and drilling fluid) behavior.

The complete paper is available for purchase at OnePetro: www.onepetro.org.

JPT • MAY 2017 79


Test Site correlated to the resistivity (measured The cementing was started after 30
The selected site had swelling clays with with the digital resistivity device) to de- minutes. The resistance of Probes A1 and
fluctuating moisture conditions (an ac- termine a “K factor” for a time period ini- A2 reduced to approximately 20 ‰ after
tive zone), which represents nearly the tially of 5 hours of curing. This K factor 35 minutes, indicating that cement has
worst conditions that could be encoun- was used to determine the resistivity of reached Vertical Level 2. Rising of the ce-
tered when installing oil wells. the cement with the curing time. ment lowered the resistances. In approxi-
Piezoresistivity Test. In this study, a mately 80 minutes, the cement reached
Instrumentation. It has been shown that compression test was used to characterize Vertical Level 11 and the resistance
two probes with alternating current (AC) the piezoresistivity of the smart cement. dropped to 20 ‰. The electrical-resistance
can be used to determine the electrical- Piezoresistivity describes the change in changes observed during the placement
resistance changes in the smart cement electrical resistivity of a material under of the drilling fluid and cement were very
and drilling fluid. It was important also to stress. Because oilwell cement serves as a similar to those of the laboratory-model
use other standard tools for measuring the pressure-bearing part of oil and gas wells test. Cement was displacing the drilling
changes in the cement sheath to compare in real applications, the piezoresistivi- fluid at the top of the borehole, and the
with the resistance changes. As shown in ty of smart cement with different water/ vertical resistance dropped from 1,000
Fig. 1, probes were placed at various ver- cement ratios was investigated under to 200 ‰, indicating that drilling fluid has
tical depths. Vertically, the probes were compressive loading at different curing reached Level 13 after 40 minutes.
placed at 15 levels. Also, eight probes were times. During the compression test, elec-
placed horizontally at each level. Nine trical resistance was measured in the di- Conclusions
strain gauges and nine thermocouples rection of the applied stress. To elimi- On the basis of resistivity monitoring of
also were included in the instrumentation. nate the polarization effect, AC resistance the field test, the following conclusions
measurements were made with an LCR have been drawn:
Materials and Methods. In this study, meter at a frequency of 300 kHz. ◗ The two-probe method was effective
polymer drilling fluid and smart cement in measuring the bulk resistance of
were used. Results and Discussion the drilling fluid and smart-cement
Polymer Drilling Fluid. Polymer-based Piezoresistive Relationship. Collected slurry. It will be possible to identify
drilling fluids are used to drill through re- cement samples were cured under dif- the fluid rise in the well borehole
active geological formations. Because in ferent conditions and compressive load- on the basis of the changes in
this study the drilling was to be conduct- ing after 45 days to determine the piezo- resistance measurements.
ed through swelling soft montmorillonite resistivity. On the basis of experimental ◗ The field test demonstrates the real-
clay, polymer drilling fluid was used. It is results, a quantitative model was modi- time monitoring of the wellbore
less reactive with the clay formations and fied to predict the change in electrical re- with drilling fluid and smart-cement
also controls fluid loss into the formations. sistivity of cement vs. applied compres- slurry during the installation of the
Smart Cement. Cement slurry was sive stress for 45 days of curing. field well.
prepared using a water/cement ratio of ◗ On the basis of the concept
approximately 0.6, making the mixing Installation. During the initial 20 ft of developed in this study, it was
and pumping easier in the field. The ce- drilling, no drilling fluid was used. In possible to use the K factor to
ment was modified with an addition of order to stabilize the borehole, polymer predict the changes in the resistance
0.075% conductive filler by total weight drilling fluid was used to drill the rest of of the hardening smart cement. The
of the cement slurry. The initial resistiv- the hole. The total length of the borehole predictions agreed well with the
ity of the cement slurry was in the range was approximately 38 ft. The steel casing experimental results.
of 1.20 to 1.24 ‰•m. Forty-two samples with external instrumentation was low- ◗ The smart cement used to cement
were collected to characterize the smart- ered into the borehole, and monitoring the field well was piezoresistive,
cement behavior. Commercially available of the changes in resistance was begun. very sensitive to the applied
conductivity probes and digital resistiv- The vertical resistance between the adja- pressure. Using a nonlinear
ity meters were used to determine the re- cent probes was on the order of 1,000 ‰. quantitative model, the change in
sistivity of the cement. The resistance between Probes A1 and A2 electrical resistivity of smart cement
Resistivity of Smart Cement. An LCR reduced to approximately 200  ‰ when was related to the applied pressure
meter, which measures inductance (L), Probe A2 was reached by the drilling fluid. in the casing.
capacitance (C), and resistance (R), was Similarly, the resistance between other ◗ Models have been developed to
used to measure the impedance (resis- adjacent probes reduced when the probes represent the curing of the cement
tance, capacitance, and inductance) in were submerged in the drilling fluid. In under various conditions. It is
the frequency range of 20 to 300 kHz. 20 minutes, Probes A10 and A11 reduced possible to predict the pressure
On the basis of the impedance and fre- to 200 ‰, indicating the rate of lowering in the casing and the stress in the
quency response, it was determined that the casing over the 38 ft. These sudden cement sheath by use of equations
the smart cement was a resistive mate- changes in the resistance clearly showed provided in the complete paper by
rial. Hence, the resistance measured at the level of the casing as it was lowered measuring the change in resistivity
300 kHz with the two-probe method was and submerged in the drilling fluid. of the smart cement. JPT

80 JPT • MAY 2017


Saltel External
Casing Packer
EXPANDABLE STEEL, HIGH-PRESSURE
PACKER FOR ANNULUS INTEGRITY

A Saltel external casing packer, part of a casing string that became


stuck in a well, was rotated, pushed, pulled, and abused for several
hours before being freed and returned to surface. After washing and
inspection, the packer was run back into the well and set as planned.

Ensure successful cementing and reliable


annular isolation integrity
Preventing crossflow or gas channeling is essential for successful primary cementing. Cement support and
annular isolation are necessary for successful stage cement jobs. Achieve both requirements with Saltel
external casing packers. Robust enough for the rigors of running into the well and setting, Saltel external
casing packers can set and seal in mud, water, or cement, even after intense handling.

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*Mark of Schlumberger. Copyright © 2017 Schlumberger. All rights reserved. 17-CO-275548

Saltel ECP Ad for JPT May 2017 17-CO-275548 AD.indd 1 4/12/17 11:26 AM
Investigating the Benefits of Rotating-Liner
Cementing and Impact Factors

E ffective primary cementing in the


wellbore is critical to achieving
positive wellbore isolation. This paper
discusses an expandable-liner-hanger
(ELH) system that provides liner
rotation during the liner deployment
and the cementing operation while
providing a hydraulically energized
liner-top seal upon setting. The
case histories of the wells using the
system verify the key consideration
factors presented in this paper, which
help improve the quality of the liner
cementing bond.

Liner-Hanger System
The ELH system incorporates bonded
elastomeric sections. The elastomeric ele-
ment provides the hanging capacity for Cement Displace Expand Expansion— Drill Out
the liner and a gas-tight seal. The liner- Liner Plug Liner Complete Release
hanger/packer body contains no setting Hanger From Liner
mechanism or external components, such
as slips, hydraulic cylinders, or pistons. Fig. 1—Cementing and ELH-installation sequence.
The hydraulic setting mechanism is con-
tained in the setting-tool assembly and Liner-Hanger Operation cementing. No liner reciprocation during
is retrieved, eliminating potential leak The key to a successful liner deploy- the cementing operation was planned be-
paths in the flow stream. This running/ ment is prejob planning. As part of the cause of rig limitations. In addition, ro-
setting-tool-assembly system provides preplanning, several iterations of the tation was preferred over reciprocation
the necessary expansion mechanics, ce- torque-and-drag analysis are simulated because the liner must be in the position
menting pack-off seals, a collet assem- with software to determine the ideal run- across the zones of interest at all times
bly to carry the liner weight and transfer in-hole solution. and prevent any potential operational
the liner weight to the drillstring, and an The ELH system is run much like con- risk (e.g., stuck pipe or liner set high). The
end-of-expansion indicator assembly. As ventional liner-hanger systems, with min- ELH standard setting/running tool has a
required, the liner system can be rotated imal differences. The key difference is torque rating limitation of 15,000 lbf-ft.
and reciprocated when incorporated with that the liner with the ELH system is ce- Consequently, it was deployed as a non-
an ELH high-torque running/setting tool mented before setting the hanger because rotational liner hanger. The ELH high-
and high-torque liner connections. The the hanger provides hydraulic isolation torque running/setting tool, with a torque
liner system can be rotated and recipro- when it is set. Cementing before setting rating of 39,071 lbf-ft, was used with the
cated while running in the hole or during the liner hanger enables rotation and re- rotational liner-hanger system. During
cementing operations (Fig. 1). ciprocation, which should improve the the cementing operation, the liner string
was rotated at 10 to 20 rev/min. The next
step is to set the hanger, which is per-
This article, written by Special Publications Editor Adam Wilson, contains highlights
formed hydraulically after releasing a set-
of paper SPE 180578, “Investigating the Benefits of Rotating-Liner Cementing and ting ball. After the hanger is set, the liner
Impact Factors,” by Quek Khang Song, SPE, Hao Wang, and Weicun Dong, top can be washed using conventional or
Halliburton, and Roger Bradshaw, SPE, Wei Cui, and Johnson Njoku, ConocoPhillips, reverse-circulation techniques. The tools
prepared for the 2016 IADC/SPE Asia Pacific Drilling Technology Conference and are then retrieved from the wellbore, and
Exhibition, Singapore, 22–24 August. The paper has not been peer reviewed. the well is ready for completion.

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

82 JPT • MAY 2017


Cement-Slurry Design bond. BR values between 0.5 and 0.8 section. The centralized string will help
The cement-slurry designs were sim- denote medium cement-bond quality. provide a good flow path for cement
ilar for each cementing operation for To perform a cement-quality compari- pumping and placement. One rigid cen-
these wells. The cement systems were son among the various wells, the cement tralizer is installed for each casing joint
designed and evaluated for compatibility. BR on the sand-control-completion sec- for all of the wells. The standoff value is
The cement design was then formulated tion was analyzed and an RBR was deter- calculated from a simulation performed
to achieve the desired slurry properties mined. RBR values of 0.5 and above show during preplanning. On the basis of the
for the well condition. In general, the an acceptable cement-bond quality. case study, the low standoff (poor cen-
cement-slurry recipes were designed for Of 30 cementing jobs, 10 were per- tralization of the liner string) without
11.67-lbm/gal cement weight. With this formed with the ELH high-torque rotating the liner during the cement-
lightweight cement slurry, full returns liner-hanger-running/setting tool, and ing operation results in overall poorer
during cementing were achieved for 83% the liner was rotated during the cement- cement-bond quality. Under the same
of the wells. ing operation. The result shows that standoff condition, rotating the liner
nine of these wells achieved an accept- during the cementing operation helps
Cement-Bond-Quality able cement-bond quality, and three improve the cement-bond quality.
Evaluation of these wells achieved an excellent
The quality of the cement bond is mea- cement bond. Displacement Rate. The displacement
sured with a bond ratio (BR). The equa- In the remaining 20 wells, the rate is a key operational parameter
tion used to establish the BR can be found standard-torque-rating ELH liner- during the cement-pumping process.
in the complete paper. hanger-running/setting tool was used The optimized displacement rate en-
An attenuation value is derived from without rotating the liner during the ce- ables the cement to fill the annulus
the segmented bond-tool data with a menting operation. However, only 11 and reduce channeling. A cement dis-
variable-density log (VDL) and cement of these wells obtained an acceptable placement rate of 6 to 7 bbl/min was
map that are performed after the cement cement-bond quality, with six wells observed to provide a better cement
is set. The relative BR (RBR) for each sec- showing excellent cement-bond quality. bond. The result indicates that 77% of
tion of the openhole wellbore was con- the jobs within this displacement rate
solidated. A BR value of more than 0.8 Effect Factors achieved an acceptable BR, whereas
denotes a good cement bond; a BR value The standoff is defined as the central- 10% of the jobs achieved a good BR. By
of less than 0.5 denotes a poor cement ization of the string in the horizontal applying the same displacement rate,

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JPT • MAY 2017 83


rotating the liner during the cement- Dogleg Severity (DLS). The DLS ranged circulation potential in the well. The ro-
ing operation helps to achieve a better from 0.5°/30 m to 2.2°/30 m. The high tating string also helps reduce the ECD
cement-bond quality. DLS affects the cementing flow path and when attempting to break circulation
causes poor cement sheath. The data in- on static fluid. Because the liner hanger
Openhole Inclination. The openhole dicate that smaller DLS values provide is set after the cement pumping opera-
inclination for the case study ranges better cement bonding in nonrotating tion, the cement has a less tortuous flow
from 22 to 65°. The result shows that the liner-hanger operations. The data also path around the liner hanger, assisting in
cement-bond quality improved when the show that some of the operations in reducing surge and ECD.
openhole inclination is reduced. The re- which the liner hanger was rotated
sult also shows that rotating the liner achieved good cement-bonding quality. Conclusions
during the cementing operation helps ◗ Liner rotation during cementing
improve the cement-bond quality in Benefit of Rotating the Liner operations helps enhance the
high-inclination openhole wells. The data demonstrate that the cement- cement-bond quality that provides
bond quality was significantly improved good zonal isolation and wellbore
Openhole Exposure Time. The open- by rotating the liner during cementing integrity and withstands stresses
hole exposure time refers to the dura- compared with not rotating the liner through the life of well.
tion of openhole exposure to the drilling during cementing. Liner rotation dur- ◗ The ELH high-torque liner-hanger-
mud before the cementing operation. ing cementing operations enhances the running/setting tool and its ability
The result shows that shorter duration primary cement bonding. Good primary to rotate while running in hole
of borehole exposure to the drilling mud cement bonding in the wellbore mini- enabled the liner to be rotated and
helps improve the cement-bond qual- mizes risks to wellbore integrity during reamed through tight spots and be
ity. The data also show that rotating the stimulation and production. set at the desired setting depth. The
liner during the cementing operation The data also show that, in four of reliability of the system reduces
achieved acceptable and good cement the five wells with lost circulation, the operational risk that would result
bonding. The liner rotation contributes standard-torque ELH running/setting in additional rig time and remedial
to improved mud removal and displace- tool or nonrotating liner system had been operations.
ment around the liner and borehole, deployed. Rotating the string is believed ◗ Rotating the liner system helps
subsequently improving the cement- to help reduce the equivalent circulating reduce the ECD and reduces the
sheath quality. density (ECD), thus reducing the lost- chance of lost circulation. JPT

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24-26 JULY 2O17 • AUSTIN CONVENTION CENTER, AUSTIN, TEXAS

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84 JPT • MAY 2017


Cement Placement With Tubing Left in Hole
During Plug-and-Abandonment Operations

O ne way to reduce costs during


plugging and abandonment is
to leave most of the production tubing
a way that satisfies long-term abandon-
ment criteria, a significant restriction
to cost-efficient plugging and abandon-
The tubing rested on the casing wall.
The  tubing collars created an offset of
11  mm, corresponding to a downward
in the well. A major concern with such ment is overcome. eccentricity of 7.8%.
an approach, however, is whether the This paper presents full-scale tests that In the cementing process, a
cement will displace the original fluid confirm the possibility of obtaining good 1.92-specific-gravity (SG) conventional
improperly because of lack of tubing cement placement when the tubing is Dyckerhoff Class G cement slurry dis-
centralization and possible unfavorable left in the hole. This is the case both with placed a 1.2-SG brine.
flow dynamics in the annulus. This and without control lines attached to The assemblies were provided with
paper presents full-scale tests that show the tubing. pressure sensors, which measured
it is possible to obtain good cement the internal pressure at different plac-
placement when the tubing is left in Experimental Equipment es along the casing annulus and on
the hole. and Methods the tubing stub. The sensor ports also
Full-scale tests, with several assemblies served as channels for water injection or
Introduction of 7-in. tubing cemented in 9⅝-in. cas- leakage measurement.
The fundamental goal of plugging and ing, were performed to determine the After approximately 1 week of curing,
abandonment is to restore caprock func- sealing ability of annulus cement when flow tests were performed on the assem-
tionality to maintain well integrity per- tubing is left in hole. Tests were per- blies. After the pressure tests, both as-
manently. Normally, these operations formed with both conventional cement semblies were cut open for visual inspec-
are conducted by removing completion and expandable cement, and with and tion of cement-placement quality.
equipment and placing a series of ce- without control lines present.
ment plugs. One way to reduce costs is The quality of the cement placement Tests With Expandable Cement. For
to leave most of the production tubing in was determined by pressure tests with the tests with expandable cement, three
the well, which would save significant rig water—where leakage rates and pressure assemblies (A, B, and C) were used, and
time. A major concern with such an ap- drops over the test sections were record- all were 12 m long. As with the tests
proach, however, is whether the cement ed—and by visual inspection after cutting with conventional cement, the assem-
has displaced the original fluid prop- the test assemblies at different places. blies were inclined to 85°.
erly in the annulus outside the tubing This time, control lines were strapped
where the plug is planned. Poor cement Tests With Conventional Cement. For to the high side of the tubing and cable
quality there may result from design- the tests with conventional cement, two clamps were not used. The eccentricity of
ing the original cement job with insuf- assemblies were used, A and B. Both the tubing in the casing was the same as
ficient cement slurry, from a lack of tub- assemblies were 36 m long, consisting if the tubing had rested on the bottom of
ing centralization, or from unfavorable of three casing lengths. The assemblies the casing (i.e., the 11-mm standoff, cor-
flow dynamics in the annulus. Regard- were inclined to 85° off vertical. Cable responding to 7.8% downward eccen-
less of the equipment used for the op- clamps on tubing collars created an off- tricity, was defined by the diameter of the
eration, the most economical way is to set of 26 mm, corresponding to an up- tubing collars). Assemblies B and C had
leave as much of the tubing as possible ward eccentricity of 6.0%. Assembly A broad, flat control cables stretched along
in the well. If tubing can be left in hole in had no control cable or cable clamps. the top side of the annulus, while Assem-
bly A had no cable.
This article, written by Special Publications Editor Adam Wilson, contains highlights As with the previous tests, the ce-
ment was pumped relatively slowly
of paper IADC/SPE 178840, “Cement Placement With Tubing Left in Hole During
through the assemblies, at approximate-
Plug-and-Abandonment Operations,” by Bjarne Aas, Jostein Sørbø, and Sigmund
ly 300 L/min, and 1.92-SG cement dis-
Stokka, SPE, IRIS/DrillWell; Arild Saasen, SPE, Det Norske Oljeselskap; Rune placed 1.0-SG water. The amount of ce-
Godøy, SPE, Statoil; Øyvind Lunde, ConocoPhillips; and Torbjørn Vrålstad, SPE, ment pumped corresponded to setting a
SINTEF Petroleum Research/DrillWell, prepared for the 2016 IADC/SPE Drilling 100-m-long plug.
Conference and Exhibition, Fort Worth, Texas, USA, 1–3 March. The paper has not Pressure tests were performed after
been peer reviewed. waiting 3 weeks for the cement to cure,

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

JPT • MAY 2017 85


tially restricted relative to the water tests,
probably because of capillary effects.

Discussion
Figs. 1 and 2 show that the lack of tub-
ing centralization does not prevent
cement placement in the annulus. They
also show that the cement is well-placed
around the control lines. In other words,
the experiments show that it is possi-
ble to obtain good cement placement
Fig. 1—Cut test assemblies with conventional cement. Without control lines outside tubing when the tubing is left
(left) and with control lines (right). in hole. Although the results for mea-
sured flow and calculated microannu-
which allowed the expandable cement Results li show that there are leakages through
time to expand. Tests With Conventional Cement. The the assemblies, the measured flow rates
Flow tests were performed with cement had cured for only 8 to 9 days are relatively low and should not have
injection-pump pressures at approxi- when the flow tests were performed. significant practical consequences in a
mately 70 and 120 bar. After the pres- After a few more weeks, the cement could real well with several hundred meters of
sure tests, Assemblies A and B were cut have shrunk more and larger micro- cemented annulus.
open for visual inspection of cement- annulus gaps could have been seen. Measured flow results also show
placement quality. Assembly C was left After finishing the flow tests, the as- that the test assemblies with expand-
uncut to enable further tests. After the semblies were cut through crosswise at able cement provided better sealing
water-flow tests on Assembly C, flow tests different places at the ends and mid- than the test assemblies with conven-
were continued with light oil to determine dle of the assemblies. Fig. 1 shows that tional cement. This is probably caused
the effect of fluid type on sealing ability. there seems to be complete cement dis- by the expanding nature of the expand-
placement, including around the control able cement, as opposed to conventional
Calculation of Effective Microannuli. lines. Similar results were observed for cement, and the authors conclude that
During the pressure tests, the fluid flow Assembly B. expandable cement provides better seal-
through the assemblies was measured ing than conventional cement.
at different pressures and any result- Tests With Expandable Cement. After It should be noted, however, that the
ing microannuli were calculated from finishing the flow tests on Assem- use of the expanding agent is not the
these measurements. This calculated blies A and B, the assemblies were cut only difference between the test setups
“effective microannulus” is defined as crosswise through at different places for these two cases. The assemblies with
the concentric, uniform microannu- at the ends and middle of the assem- expandable cement were heated exter-
lus that would give the measured pres- blies. Fig.  2 shows that there seems nally and kept at a temperature of 90°C,
sure drop at the measured flow rate. It to be perfect cement displacement, whereas the assemblies with convention-
translates pressure-drop and leakage- including around the control lines. al cement were not heated and, thus,
rate measurements into a coarse geo- Similar results were observed for all were exposed to the ambient tempera-
metric measure for the space available three assemblies. ture of approximately 10°C during cur-
for leakage between the cement and Assembly C was also tested with light ing. Comparing the temperature devel-
the steel wall. oil as the leak fluid. The flow was substan- opment in the samples shows that the
assemblies with conventional cement
experienced an internal temperature
difference of approximately 60°C dur-
ing cement curing, whereas the assem-
blies with expandable cement experi-
enced a temperature difference of only
approximately 20°C. It is possible that
this large temperature difference for the
conventional-cement assemblies result-
ed in casing expansion during cement
curing, thereby contributing to micro-
annuli formation at the cement/casing
interface. The observed differences be-
tween the assemblies, therefore, should
Fig. 2—Cut test assemblies with expandable cement. Without control lines not be attributed solely to the use of
(left) and with control lines (right). expandable cement. JPT

86 JPT • MAY 2017


PEOPLE

CLAUDIO DESCALZI, SPE, was nominated 2014. Descalzi was the COO of Eni’s E&P division during 2008–
as chief executive officer (CEO) at Eni for a 2014 and held the position of the chairman of Eni UK from
second 3-year term by the Italian govern- 2010 to 2014. He was awarded the Charles F. Rand Memorial
ment. The nomination was to be confirmed Gold Medal in 2012 by SPE and the American Institute of Min-
by shareholders in a meeting in April. Des- ing, Metallurgical, and Petroleum Engineers for distinguished
calzi has been Eni’s CEO since May 2014. He achievement in mining administration. Descalzi is a Visiting
joined Eni in 1981 as an oil and gas field pe- Fellow at the University of Oxford. In 2015, he was made a
troleum engineer and became project manager for the develop- member of the Global Board of Advisors of the Council on For-
ment of North Sea, Libya, Nigeria, and Congo. In 1990, he was eign Relations. Descalzi graduated in physics from the Univer-
appointed head of reservoir and operating activities for Italy. sity of Milan.
Descalzi then held several managerial positions at Eni, includ-
ing managing director of Eni’s subsidiary in Congo; vice presi- PHANEENDRA KONDAPI, SPE, was ap-
dent and managing director of Nigerian Agip Oil Company, an pointed founding director of engineering
Eni subsidiary; executive vice president for Africa, Middle programs and professor of subsea engi-
East, and China; and executive vice president for Italy, Africa, neering at the University of Houston Cullen
and Middle East. In 2005, he was the deputy chief operating of- College of Engineering Katy Campus.
ficer (COO) of the exploration and production (E&P) division of Kondapi was previously director of subsea
Eni and was the president of Assomineraria from 2006 to engineering and professor of practice at

In Memoriam
This section lists with regret SPE members who recently passed away. If you would like to report the passing of a family
member who was an SPE member, please write to service@spe.org.
James G. Ballard, Shreveport, Louisiana, USA Robert R. Polk, Santa Fe, Texas, USA
Titus J. Colaco, Spring, Texas, USA Harvey Lee Ratliff Jr., Amarillo, Texas, USA
Jesse B. Graner, Signal Hill, California, USA James Scott, Ponca City, Oklahoma, USA
Gore Kemp, Kilgore, Texas, USA Derry D. Sparlin, Springfield, Virginia, USA
John W. Kenneday, Houston, Texas, USA O.E. Trechter Jr., Tampa, Florida, USA
Eduardo G. Loreto Mendoza, Mexico City, Mexico

NOEL D. RIETMAN, SPE, died 4 March. Rietman had a long career with Maxus Energy Corp., for-
He was 83. Rietman was the SPE Presi- merly known as Diamond Shamrock Corp. He joined the
dent in 1987 and the president of the company in 1957 and advanced to supervisory positions
American Institute of Mining, Metallurgi- within the company, being named chief production engi-
cal, and Petroleum Engineers in 1994. neer, manager of production operations, general manag-
Much like the current year, Rietman’s er of production, vice president and general manager of
year of SPE presidency saw the industry the company’s northern region, and staff vice president of
go through a downturn, with oil prices dropping steeply in property acquisitions. He was elected senior vice president,
1986. In the May 2016 JPT issue, 2016 SPE President Nathan North American exploration and production in 1987 and re-
Meehan said, “Taking a trip down memory lane, I reviewed tired from Maxus in 1991 as senior vice president production
copies of JPT from the downturn in the late 1980s. Noel and continued to work as a consultant.
Rietman, 1987 SPE president, focused on how SPE was re- A recipient of the SPE Distinguished Service Award, Riet-
sponding, member benefits, company support, and the rel- man was involved with SPE committee activities through-
evance of SPE to members who had been laid off—all very out his career and held section officer positions in Denver
familiar topics from the past year of SPE Board of Directors and Amarillo sections early on. He authored and presented
discussions.” Under Rietman’s leadership, SPE formed an technical papers at conferences and wrote articles in indus-
ad hoc committee that provided SPE with guidelines to cut try publications. One of his legacies was being a mentor
costs while minimizing the reduction of member services to young professionals both from his company and other
and the impact on the reserve fund. Over the years, leader- organizations, with many of his mentees reaching senior
ship such as his has helped SPE sustain and thrive through management positions later. Rietman held BA and BS de-
the decades, both in good times and in downturns, and grees in petroleum engineering and geology, respective-
continue to serve its members. ly, from Texas Tech University, and an MS in mathematics
from West Texas State University. He was also a member of
American Association of Petroleum Geologists.

JPT • MAY 2017 87


Texas A&M University. He has more than 20 years of experi- Assurance Technical Section. He also leads the Offshore Tech-
ence in the industry including with FMC Technologies and KBR nology Conference Subsea Processing Sessions steering com-
in engineering and consulting projects worldwide. Kondapi has mittee. Kondapi is a founding member of the American Insti-
been recognized for his work in designing and developing tute of Chemical Engineers’ Upstream Engineering and Flow
university-level curriculum in flow assurance and subsea engi- Assurance Forum and was a past chair of its program commit-
neering and for his innovative teaching methods. As the KBR tee. In 2013, he received the Outstanding Alumnus Award from
adjunct professor of subsea engineering at the University of Andhra University College of Engineering in India and the SPE
Houston, Kondapi helped develop the first subsea engineering Faculty Innovative Teaching Award. Kondapi holds a PhD from
program in the US. He is the chair of the SPE Faculty Innovative Tennessee Technological University, and BS and MS degrees
Teaching Awards Committee and past chair of the SPE Flow from Andhra University, all in chemical engineering.

SPE EVENTS

WORKSHOPS Profitability, Performance, Efficiency, 13–14 September ◗ Midland—SPE Liquids-


and People Rich Basins Conference–North America

9–10 May ◗ Aberdeen—SPE Realizing Cost 24–25 October ◗ St. John’s, Newfoundland 9–11 October ◗ San Antonio—SPE Annual
Savings in Oilfield Scale Management and Labrador—SPE Well Integrity Life Technical Conference & Exhibition
Cycle Management for Subsea Field
15–17 May ◗ SPE/SEG Reservoir 15–18 October ◗ Mishref—SPE 3rd Kuwait
Development
Engineering and Geophysical Monitoring Oil and Gas Show & Conference
Technologies for EOR Applications 30–31 October ◗ Kuala Lumpur—
SPE/NACE Corrosion Management for 16–18 October ◗ Moscow—SPE Russian
16–17 May ◗ Leoben—SPE Data Enabled Petroleum Technology Conference
Upstream Oil & Gas Production Assets
Operational Excellence—The Value of
Information in Oilfield Operations 7–8 November ◗ The Hague—SPE North
Sea & Europe Area Stimulation SYMPOSIUMS
16–17 May ◗ Abu Dhabi—SPE Added Value
with Coiled Tubing 20–21 November ◗ Kuala Lumpur—
9–10 May ◗ Abu Dhabi—SPE Intelligent Oil
SPE Data Science and Analytics for
16–17 May ◗ Cairo—SPE Optimization and Gas Symposium
E&P Projects
and Economics
4–6 October ◗ Lexington—SPE Eastern
16–18 May ◗ Austin—SPE Shale Regional Meeting
CONFERENCES
Development Optimization—How Can We
Drive Dollars to the Bottom Line through 7–8 November ◗ Kuala Lumpur—SPE Asia
Efficiency and Technology? 8–10 May ◗ Abu Dhabi—SPE Reservoir Pacific Production Enhancement and Cost
Characterization and Simulation Optimization
7–8 June ◗ Budapest—SPE European Conference and Exhibition
Formation Damage 28–30 November ◗ Banff—SPE Thermal
17–19 May ◗ Buenos Aires—SPE Latin Well Integrity & Design
13–14 June ◗ Calgary—SPE Thermal America and Caribbean Petroleum
Drilling and Completions Engineering Conference FORUMS
13–14 June ◗ The Woodlands—SPE 12–15 June ◗ Paris—SPE Europec featured
Application of Integrated Diagnostics for at 79th EAGE Conference and Exhibition 5–9 November ◗ San Antonio—SPE
Unconventional Resource Development
“Waterless Fracturing”—Reducing Fresh
20–23 June ◗ Macaé—Brasil Offshore
15 June ◗ Calgary—SPE Life Cycle Asset Water Use for Reservoir Stimulation in a
Management for Unconventional Field 27 June ◗ London—Oil and Gas Industry Future Water-Constrained World
Development in a New Epoch

29–31 August ◗ Denver—SPE Distributed 17–20 July ◗ Houston —Carbon CALL FOR PAPERS
Fiber-Optic Sensing for Well, Reservoir, Management Technology Conference
and Facilities Management
24–26 July ◗ Austin—SPE/AAPG/SEG IADC/SPE Drilling Conference and
14–15 September ◗ Santa Cruz, Bolivia— Unconventional Resources Technical Exhibition ◗ Fort Worth
SPE HSE and Sustainability—The Conference (URTeC) Deadline: 26 June
Cornerstone for Efficient E&P Operations
5–8 September ◗ Aberdeen—SPE Offshore SPE Hydraulic Fracturing Technology
26–27 September ◗ Abu Dhabi—SPE Asset Europe Conference & Exhibition Conference ◗ The Woodlands
Integrity Management—How to Improve Deadline: 14 August

Find complete listings of upcoming SPE workshops, conferences, symposiums, and forums at www.spe.org/events.

88 JPT • MAY 2017


SPE NEWS

Comments Invited on New Resources


Management System

SPE is inviting comment on a draft pro- completed a draft, which establishes resources-management-system.php.
posal of a new resources management technically based capacity and resourc- The authors invite members to critically
system. In March 2016, the SPE Board es evaluation standards. While ideally, review the proposed system, and submit
of Directors approved moving for- national reporting and regulatory dis- comments representing your organiza-
ward with work on a Geologic Stor- closure agencies would reference these tion’s consolidated opinion by 31 May
age Resources Management System by standards, they do not replace those 2017. To participate in this public com-
a subcommittee of the Carbon Dioxide currently required by these agencies. ment period, please send your name,
Capture, Utilization, and Storage Tech- The document is posted on http://www. company name, and detailed comments
nical Section. The subcommittee has spe.org/industry/geologic-storage- to ogr@spe.org.

SPE Creates New Technical Section


The newly launched Unmanned Systems ing and inspections. In the near future, cations of these technologies in his Oil
Technical Section will provide a central autonomous cars, trucks, ships, and air- and Gas Facilities column, “Unmanned
hub for questions, answers, discussion, craft will change the logistics landscape Vehicles and Robotics Gain Momentum,”
collaboration, and networking around in ways we can only begin to imagine. posted on http://www.spe.org/ogf.
unmanned marine, air, and land vehicle Ultimately, it’s not the hardware or soft- The technical section officers include
systems, software solutions, and power ware, but the solution that these exist- Daniel De Clute-Melancon, Weatherford,
systems for the oil and gas industry. ing and new technologies bring to the oil first chair and community webmaster;
Unmanned systems include remotely and gas industry to improve safety and Susan Nash, American Association of
operated, autonomous surface, auton- the efficiency of operations. Petroleum Geologists, program chair;
omous underwater, unmanned under- Unmanned systems are used in subsea Chris Mentzer, Southwest Research
water, unmanned aerial, and autono- well construction and support, terrain Institute, administrative chair; Trey
mous aerial vehicles. mapping, inspection of rigs and facili- Mebane, Chasm Visions, membership
Remotely operated vehicles have ties, nondestructive evaluation of pipe- chair; and Ed Tovar, InTechSys, treasurer
been used by the oil and gas industry lines, transportation, surveillance and and sponsorship chair. Balaji Ramachan-
for approximately 40 years for subsea security, and facility planning and moni- dran, Nicholls State University, serves as
operations. Over the last several years, toring. Hisham Saadawi, SPE Production academic director. The Unmanned Vehi-
drones are just starting to be used for a and Facilities Technical Director, wrote cles Technical Section welcomes inter-
number of applications such as survey- about the latest developments and appli- ested SPE members.

New SPE Asia Pacific Advisory Council Holds First Meeting


The SPE Asia Pacific Advisory Council In addition, council members exchanged ing evolved from the SPE Asia Pacific
held its inaugural meeting on 25 March ideas on how SPE could expand its pro- Regional Board, and is represented by
in Bangkok, Thailand, discussing how gram scope to include other industry senior executives from across the Asia
SPE can further benefit members and the sectors such as the logistics/supply chain Pacific region and industry value chain.
wider oil and gas industry in the region. and the finance and investment commu- The council is chaired by Datuk Mohd
Participants discussed the variety of nity; how it could provide more content Anuar Taib, executive vice president and
programs and benefits provided to the surrounding the industry’s digital trans- chief executive officer (CEO), upstream,
region, including events, the Energy4Me formation; and how to support areas such Petronas; and is co-vice-chaired by
education initiative, the PetroWiki as gas advocacy and regulatory dynamics Phongsthorn Thavisin, SPE Northern
knowledge resource, as well as dues waiv- with fact-driven content and events. Asia Pacific regional director and chief
ers and event open access days for mem- The SPE Asia Pacific Advisory Coun- operating officer, production asset and
bers affected by the industry downturn. cil was formed in January 2017, hav- operations support group, PTTEP; and

JPT • MAY 2017 89


Salis Aprilian, South Asia and Pacific Following the meeting, the council met
regional director and CEO, PT Badak with the SPE Board of Directors in Bang-
NGL. Currently, the council comprises kok, providing feedback and insights into
20 executives from 20 companies and the opportunities and challenges faced
eight countries. Its objective is to pro- by industry, and how SPE can continue to
vide guidance on regionalization and engage and foster volunteerism among
localization of SPE activities, identify its current and potential members.
regional technical content needs, and The Asia Pacific region is home to
support initiatives to further SPE’s mis- more than 30,000 SPE members spread
sion of technology transfer. across 34 countries.

Volunteering
looks good
on you.
In the new SPE League
of Volunteers, giving
back suits you well.
As a volunteer for SPE, you
provide the energy that makes
our Society work. When you
Among the attendees at the meeting between the advisory council and the
join and give back, you are SPE Board of Directors were front row, left to right: Nathan Meehan, 2016 SPE
supporting your peers and president; Salis Aprilian, SPE South Asia and the Pacific director, co-vice-chair of
SPE Asia Pacific Advisory Council and chief executive officer (CEO), PT Badak
the future of E&P. You are also NGL; Datuk Mohd Anuar Taib, chairman of the SPE Asia Pacific Advisory Council
enhancing your leadership and and executive vice president and CEO, upstream Petronas; Phongsthorn Thavisin,
SPE Northern Asia Pacific regional director, co-vice-chair of SPE Asia Pacific
collaborative skills and expanding Advisory Council, and chief operating officer, production asset and operations
your professional profile as you support group, PTTEP; Janeen Judah, 2017 SPE president. Second row, from left:
Darcy Spady, 2018 SPE president; Rao Abdullah, council member and region vice
showcase your knowledge and president–Asia Pacific, Halliburton; Do Van Khanh, council member and chairman
talents to the industry. of the board of directors, PV Drilling; See Kok Yew, council member and chairman
and president, ExxonMobil E&P Malaysia; Tammi Morytko, council member and
vice president, Asia Pacific Operations, Baker Hughes; Visal Leng, council member
Engage. Support. Contribute. and CEO, Asia Pacific, GE Oil & Gas. Third row, from left: Christophe Malaurie,
Learn more and join us at council representative and senior vice president, onshore-offshore, Asia Pacific,
TechnipFMC; Mark Rubin, SPE CEO; Bill Bullock, council member and president,
www.spe.org/volunteer. Asia Pacific and Middle East, ConocoPhillips; Javier Rielo, council member and
senior vice president, Total E&P Asia Pacific; Roland Moreau, SPE vice president–
finance. Fourth row, from left: Stephen Graham, SPE chief operating officer;
Datuk Iain Lo, council member and chairman, Malaysia, Shell; Zhao Zhiyong,
council member and vice president, Asia, Hess; TK Sengupta, council member and
director, offshore, ONGC; and Maen Razouqi, council member and vice president,
South East Asia, Schlumberger.

Share your story: #SPElov


JPT • MAY 2017
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JPT • MAY 2017 91


PRA Tarek Ahmed & Associates Ltd.
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ADVERTISERS IN THIS ISSUE


ADIPEC 2017 Nissan Chemical America Corporation (NCA) Tendeka
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Advanced Technology Valve SpA OneSubsea, a Schlumberger company Texas A&M, Petroleum Engineering
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KAPPA Engineering
Cover 4 ADDRESS CHANGE: Contact Customer Services at 1.972.952.9393 to notify of
address change or make changes online at www.spe.org. Subscriptions are USD 15
LEUTERT per year (members). JPT JOURNAL OF PETROLEUM TECHNOLOGY (ISSN 0149-2136)
Page 52 is published monthly by the Society of Petroleum Engineers, 222 Palisades Creek
Drive, Richardson, TX 75080 USA. Periodicals postage paid at Richardson, TX, and
National Oilwell Varco additional offices.
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POSTMASTER: Send address changes to JPT, P.O. Box 833836, Richardson, TX 75083-
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92 JPT • MAY 2017


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