PRIMER OF OFFSHORE DRILLING OPERATIONS An Introduction to Transocean Offshore Drilling and Operations

Were Never Out of Our Depth.

MAJOR TOPICS

Company Overview
Transocean Heritage and Legacy Assets (People and Equipment)

Drilling Offshore Wells

Arrival on Location Primary Drilling Equipment Offshore Well Construction Life Offshore

The Transocean Advantage

What makes Transocean THE PREMIER OFFSHORE DRILLER

MISSION STATEMENT Our mission is to be the premier offshore drilling company providing worldwide rig-based, wellconstruction services to our customers through the integration of MOTIVATED PEOPLE, QUALITY EQUIPMENT AND INNOVATIVE TECHNOLOGY, with a particular focus on technically demanding environments.

WHO IS TRANSOCEAN

1996

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2003

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SEDCO FOREX SONAT TRANSOCEAN ASA FALCON READING & BATES CLIFFS DRILLING TRANSOCEAN

The Transocean we know today is the result of the merger of six (6) legacy companies. Literally thousands of man-years experience in offshore operations.

COMPANY OVERVIEW Industrys largest offshore contract driller 13 Fifth-Generation Deepwater Floaters capable of 7,000+ feet water depths

15 Other Deepwater Floaters capable of 4,500-7,000 feet water depths

4 Other High-Specification Floaters capable of harsh environ. operations

3 ultra-deepwater rigs in construction, 2 deepwater DP upgrades

LARGEST OFFSHORE RIG FLEET

(1)

90 80 70 25 60 50 40 30 20 10 0
Transocean

Semisubmersibles & Drillships

Jackups

Other MODU's

78

59

54
3

45
45 53 32 13 41

45
3

44

28 43

24

24 14
(2)

13
Noble Diamond

14 1
Pride Ensco Rowan

GlobalSantaFe

(1) (2)

Excludes ownership in barges, MOPUs, platform rigs, land rigs, equity ownership positions and new rig construction Excludes a drillship utilized in a research mode

Source: SEC Form 8-K filings

DIVERSE GEOGRAPHIC DISTRIBUTION

Total Fleet 80 Rigs Market Cap. - $31 Billion (1) Total Assets - $10.6 Billion (2)
(1) As of July, 2007 (2) As of June 2006

TRANSOCEAN TECHNOLOGY FIRSTS

1954: 1963: 1971: 1972: 1977: Worlds First Offshore Jackup Drilling Rig Rig 51 Worlds First Turret-Moored Drill ship Discoverer I First Dynamically Positioned Drill ship Sedco 445 First DP Exploratory Well (1,300 Ft WD Brunei) Sedco 445 Worlds First Dynamically Positioned Semi-submersible Sedco 709 Worlds First Fourth-Generation Semi-submersible Polar Pioneer First Rig To Drill Year-Round In The Barents Sea Transocean Arctic First Rig Capable Of Year-Round Operations West Of Shetland Deeper Than 4,000 Ft WD Transocean Leader First 10,000ft water depth Drill ship Deepwater Pathfinder First Ultra-Deepwater Dual-Activity Drill ship Discoverer Enterprise First Fifth-Generation Semi-submersible Rig Sedco Express

1985:

1986:
1996: 1999: 1999: 2000:

OFFSHORE LEADERS

Hold 19 of the past 23 Drilling Records:

World Record Water Depth (Discoverer Deep Seas) World Record Subsea Completion (Deepwater Millennium) World Record Moored Operations (Deepwater Nautilus) Deepest Oil & Gas Wells 34,189 ft. measured (Discoverer Spirit) 32,613 ft. vertical (Deepwater Nautilus)

10,011 ft. 8,960 ft. 8,951 ft.

Drilled 80% of deepwater wells >30,000 ft. 50% of the wells > 25,000 ft

HOW DEEP IS ULTRA-DEEP?

Discoverer Enterprise in 8,100ft Water Depth

8,100 ft just gets to the sea floor so drilling can begin Water pressure is about 3,500 psi (237atm)

Riser Joints are 75-ft long, so 108 joints are needed

Everything is done through a 21-in. diameter pipe

PEOPLE ON THE RIG

Company Man
Client Representative onboard the rig

Offshore Installation Manager (OIM)

Responsible for all operations onboard the rig

Toolpusher
Responsible for all drilling-related activities

Driller/Assistant Driller (AD)

Runs the drill floor. The AD is the eyes and ears of the driller outside the drillers cabin

Derrickman
Stands back pipe at the finger board and looks after the mud processing

Roughneck
The rig floor laborer, performs all types of tasks on the drill floor

Barge Supervisor
Responsible for the marine operation, manages cranes and deck crew

Roustabout
General laborer, material handling

Maintenance Supervisor
Manages the maintenance and upkeep of the installation

ASSETS Jackup Rigs (25 Units)

Water Depth Range: 25-ft to 350-ft Exploration (open water) or platform locations

Bottom Founded (3) or (4) legs which elevate the hull above the water while drilling.
Spud cans attached to the bottom of the legs are supported by the soil.

Drilling Package cantilevers off the stern of the hull for drilling while operating.
Worldwide operations (West Africa, India, SE Asia, Middle East)

ASSETS SEMI SUBMERSIBLES

Moored and/or Dynamically Positioned Similar Water Depth Capability to Drill Ships Improved Motion Response over Monohull Drill Ships Harsh Environment Operations Generally less payload than Drill ships

ASSETS DRILL SHIPS

Self-propelled, dynamically positioned - no mooring system or anchor handling required Ultra-deep water depths (10,000-ft and beyond) Very high deck load (carrying capacity) Moderate Environment drilling and completions Well-suited to exploration drilling programs, high deck load allows for operations in remote areas with limited re-supply Hydrocarbon storage capabilities for extended well testing (on the larger ship classes)

ASSETS OTHER RIG TYPES

Self-Erecting Tender

Swamp Barge

Platform Rig

Self-Erecting Tender Monohull barge with heavylift crane for erecting the drilling package on each platform drilling location (W.D.
Kent shown working offshore Sarawak, recently sold by Transocean)

Swamp Barge (Also called a Posted Barge) for very shallow sheltered water locations, swamps and river deltas (Searex 6 shown
working Niger River Delta)

Self-Contained Platform Rig Has its own quarters, power generation, all erected on the platform, typically for platform development drilling (Cliffs Drilling 1 shown offshore Hianan, China sold by
Transocean)

JACKUP HAZARDS Severe Weather

Jackup rigs are most vulnerable when afloat and under tow Hurricane/Cyclone damage while elevated

Punch-through
Sudden failure of the soils while preloading

Blowout

FLOATING VESSEL HAZARDS Hurricane Damage

Loss of station due to overload of mooring system Grounding Topside wind damage

Loss of Buoyancy
Collision Uncontrolled Flooding

Well Control (subsea blowout)

Blowout can cause build-up of sediment onboard, causing loss of stability

MAJOR TOPICS

Company Overview
Transocean Heritage and Legacy Assets

Drilling Offshore Wells

Arrival on Location Primary Drilling Equipment Offshore Well Construction Life Offshore

The Transocean Advantage

What makes Transocean THE PREMIER OFFSHORE DRILLER

RIG TRANSPORT Wet Tow

Historically the most common method of moving a rig Common for field moves and short transits Slow speed, usually less than five knots

Dry Transport
Expensive, but makes good sense considering reduced transit time Increasingly common for long transits Speeds around eleven knots Limited availability of suitable vessels

ARRIVAL ON LOCATION - JACKUP Positioning the Unit on Location

Unit is towed to the location by one or more tugs Legs are lowered as the unit approaches the drilling coordinates Positioning Company (Racal, Theos) used to position the rig exactly on coordinates Legs engage the seafloor (pinning on location Operator (client) approves the position Anchors are run (Platform Locations)

ARRIVAL ON LOCATION - JACKUP

Preloading and Jacking
Hull is elevated to zero air gap (bottom of the hull at the water surface)
The legs penetrate as the soil beneath the can fails until there is sufficient soil strength to support the weight of the rig.

Preloading is the process of testing the foundation beneath the rig against predicted storm loads
Accomplished by adding ballast water to the weight of the hull to simulate the loads the legs would see during a storm encounter As water ballast is loaded onboard, the legs sink further into the soil. Full Preload is held for 6 hours to test foundation at final penetrations

ARRIVAL ON LOCATION - JACKUP

Prepare for Drilling Operations
The hull is elevated to operating air gap The cantilever is unlashed and skidded out over the well

Operations Commence
Trident 15 Exploration Location

Simultaneous Operation, Platform Skid-off and Platform Load-Sharing with 2 Jackup MODUs

Roger Mowell Platform Location

ARRIVING ON LOCATION MOORED

Different Moorings for Different Water Depths

ARRIVING ON LOCATION MOORED

Running Anchors

Wire Chaser

The rig passes a chaser pendant wire to the anchor handling boat.

J-Lock Chaser

ARRIVING ON LOCATION MOORED

Running Anchors

As the boat moves away from the rig to the anchor position, the rig pays out chain or wire. The anchor is suspended behind the boat

ARRIVING ON LOCATION MOORED

Running Anchors

15-tonne Vryhof Anchor

The anchor handling tug lowers the anchor to the seafloor on a work wire. The rig hauls in chain or wire to set and tension the anchor.

ARRIVING ON LOCATION MOORED

Running Anchors

Anchor Handling Tug/Supply Vessel

The pendant and chaser are stripped back to the rig and passed back via rig crane.

ARRIVING ON LOCATION DP Units

Position Reference Staying on Location

Input:
Environmental Loads and Direction
Senses Wind Speed and computes force to resist

Acoustic Signal
Beacons placed on seafloor and monitored by hydrophones onboard

Satellite Positioning (DGPS)

Multiple Satellites at same time

Output:
DP system allocates thrusters to resist external force and maintain station

Correction signal
Reference Station

PRIMARY GROUPS OF DRILLING EQUIPMENT

HOISTING ROTATING CIRCULATING WELL CONTROL AND RISERS TUBULAR HANDLING POWER MANAGEMENT DRILLING CONTROLS
Drilling ahead on the Discoverer Enterprise

HOISTING EQUIPMENT
The Drilling Derrick

The predominant structure on the drilling rig, used for hoisting of heavy loads in and out of the hole... Several Types:
Conventional Derrick Drilling Mast Dual Activity Derrick Ram Rig Tri-Act Derrick

HOISTING EQUIPMENT
The Drawworks

The primary hoisting machine, located on the drill floor used to hoist loads into and out of the hole Several Types:
Conventional Electric Hoist Active Heave Compensating Drawworks

National AHD1000 Active Heave Compensating Drawworks

Power
varies from 2000 to 6000hp Hoisting from 500-tons to 1250-tons
Continental Emsco Electrohoist Drawworks

HOISTING EQUIPMENT
Traveling Assembly
Blocks

Traveling Block

The sheave cluster around which the drill line is reeved to provide necessary lifting capacity

In-line Drill String Compensator

Drillstring Compensator

Prevents vessel heave (vertical) motions from being transmitted to the bottom of the drill string Several types In-line, which hangs from the blocks, and crown-mounted, positioned on top of the derrick

Hook

Hook

Not all rigs have hooks, but where fitted, the top drive bails are connected to the traveling assembly
Crown-Mounted Compensator

Play Oilwell Drilling Series Vol.5, Motion Compensator

HOISTING EQUIPMENT
Cranes and Material Handling

Cranes
Used extensively for moving materials on, off and around the rig
Tubulars Risers General Handling Offloading Work Boats

Air Tuggers
Used to move equipment, tools and materials around the rig
Drill Floor Cellar Deck Moonpool area Manriding

ROTATING EQUIPMENT
Making the drillstring turn to the right
Rotary Table
The rotary table turns the bit and drill string while drilling Uses a bushing which turns a square or hexagonal joint of pipe called a kelly which transmits torque into the bit Today, the rotary is used primarily to orient drill string while drilling directionally with downhole motors Rotates the drill string from the top Allows drilling one a full stand (3 joints) of pipe between connections Keeps the rotating drive train above the floor
Top Drive Drilling

Rotary Drilling

Top Drive System

DRILL STRING
Drill Bits
Various designs for different formations Fixed and rolling cutters Fluid jets from the bit and up the annulus

Bottom Hole Assembly

Drill collars are heavy, thick wall drill pipe added above the bit to help set the weight of the bit on-bottom

Drill Pipe
Most drilling operations are conducted with drill pipe Delivers drilling fluid to the bottom of the hole Landing strings help lower casing and tubing to the sea floor

Play Oilwell Drilling Series Vol.1, Drill Bits

CIRCULATING SYSTEM
Drilling Fluid (mud) is pumped down-hole by high pressure pumps Fluid jets out of the bit and returns to the surface through the riser Mud is conditioned:
Shale shakers sift out the large cuttings by running the returned fluid over vibrating screens Degassers remove any small gas bubbles entrained in the fluid Desanders, Desilters and Mud Cleaners remove the fine silts and cuttings from the fluid using hydrocyclones

Circulating mud is used to: Bring the cuttings generated by the bit to the surface, Keep the hole open while drilling to allow casing to be run and cemented in place, and

Prevent loss of pressure control in the well.

Mud is returned to the active mud pits, to be pumped down-hole again

Play Oilwell Drilling Series Vol.4, Overiew, Mud Systems

CIRCULATING SYSTEMS
Mud Pumps

2200hp reciprocating slush pump:

375GPM at 7500psi 960GPM at 3500psi Change out fluid end liners to modify flow rate Creates pulses in the fluid flow and pressure from reciprocating motion

New Technology HEX Pump

No fluid pulse No liner changes Consistent flow rates and pressures

MUD PROCESSING EQUIPMENT

Gumbo Conveyors
Gumbo (sticky clay) can clog mud systems and is removed before the shale shakers

Shale Shakers
Separate large cuttings from the drilling fluid with vibrating screens

Degassers
Remove gas from the drilling mud before returning to the active pits

Desanders and Desilters

Remove smaller sediments from the liquid mud

Mud Cleaners
Combines the function of the shaker, desander and desilter in one machine
Photos courtesy Derrick Equipment Co.

WELL CONTROL
Blowout Preventers

Surface Blowout Preventer Stack 13-5/8-inch, 10,000psi

Subsea Blowout Preventer Stack 18-3/4-inch, 15,000psi

Play Oilwell Drilling Series Vol.2, Pressure Control

WELL CONTROL
Choke and Kill Manifold
Manage Gas and Fluids coming out of the well under high pressure
Choke Orifice through which high pressure gas and fluids can be bled off the well under control Kill Ability to pump heavy fluid (pills) down the hole to suppress the high pressure gas/fluids in the wellbore

Skid-mounted, vertical choke and kill manifold

Blowout What happens when pressure control is lost

MARINE DRILLING RISER

Connecting the Rotary to the Sea Floor
Acts as a conduit for returning cuttings and mud to the surface Drilling operations are conducted inside the riser pipe Auxiliary lines for well control, mud boost and hydraulics for BOP controls Flex joints at the top and bottom allow rotation of the riser At the top, the riser is connected to the rig with a telescopic joint Riser tensioners cancel out vesssel heave similar to drill string compensators Many joints have foam buoyancy modules attached to reduce the in-water weight and reduce required tension
Slick Marine Drilling Riser Joint

Running a riser joint, using the gimbaled spider

Play Oilwell Drilling Series Vol.2, Subsea BOPs

TUBULAR HANDLING
Pipe Handling Equipment
Historically, pipe was manhandled into and out of the hole with a combination of air-powered tuggers and muscle

Many rigs today are equipped with one (or more) automated pipe racking machines which minimize the need for human interference with the operation

TUBULAR HANDLING
Pipe Handling Equipment

Drillpipe Tongs, Spinning and Torque Wrenches

Manual drillpipe tongs are used to make up or break out torque connections when running or retrieving pipe
The spinning wrench quickly threads or unthreads the connection The combination tool (also called a Hawkjaw) can do both operations
Drillpipe Manual Tongs Combination Wrench

Spinning Chain

Spinning Wrench

TUBULAR HANDLING
Pipe Handling Equipment

Iron Roughneck
Automates the spinning and torque functions of making and breaking tubular connections Travels in and out from the well center Elevates to sense the height of the tool joint

CONTROLS AND INSTRUMENTATION

Making it go when you push the button
Engines, Generators and Thrusters Drilling Systems Well Control Systems Todays control systems are highly sophisticated, computer controlled networks.

Conventional Drillers Console

BOP Control Console

Dynamic Positioning Console

VICIS Drillers Chair

POWER AND PROPULSION

Power Generation is a crucial rig function
Propulsion/Stationkeeping Drilling equipment Hotel/Auxiliary Loads

Primary Components
Diesel Generators Switchgear Transformers Variable Frequency Drives SCR Drives (DC Motors)

7,000HP Thrusters, Discoverer Enterprise

Power System redundancy is crucial to stationkeeping for DP vessels

Diesel Generators

WELL CONSTRUCTION
Typical Drilling/Casing Program
The conductor, or surface casing is typically jetted into the sea floor. 26-inch hole is drilled to pre-set depth.

20-inch casing is run and cemented in place. Wellhead is installed.

17-1/2-inch hole is drilled to pre-set depth. 13-3/8-inch casing is run (hangs from the wellhead) and cemented in place. 12-1/4-inch hole is drilled to preset depth. 9-5/8-inch casing is run and cemented in place. 8-1/2-inch hole section is drilled to preset depth 7-inch production liner (hangs at the bottom of the 9-5/8 casing is run.

Offshore Living - Basic, but Comfortable

Offshore Living - Basic, but Comfortable Offshore living standards have improved steadily. Remote operations mean longer hitches This is also home for half of every year.

MAJOR TOPICS

Company Overview
Transocean Heritage and Legacy Assets

Drilling Offshore Wells

Arrival on Location Primary Drilling Equipment Offshore Well Construction Life Offshore

The Transocean Advantage

Looking to the Future:

NEXT GENERATION TOP DRIVE

Modular Derrick Drilling Machine
Project launch 2004 1250T lifting capacity 10-year life between major overhauls Robust & Reliable, NPT target < 0.1% No critical path shutdown maintenance while operating Modular design for quick change-out of major components Implemented on newbuilds

ARCTIC SOLUTIONS
Drilling in a Technically Demanding Environment

Design Imperatives
Extended Season Off-Season Marketability Operating Efficiency VDL for Multi-Well Campaign

Dual-Acting Hull

DP and Turret Moored Deepwater capable in offseason Dual Activity Operating Displacement 65k MT

DEEPWATER CONVERSIONS
Breathing New Life into Old Steel

SEDCO 702 and 706

Vintage mid-1970s, 2nd Generation Moored Floaters Water Depths up to 1500-ft

New Capabilities:
Dynamically Positioned, ABS DPS-2 Class 6500-ft Water Depth Moderate Environments Enhanced Variable Load Leading Edge Power Systems

Sedco 702 Before Conversion

NEWBUILD DRILLSHIPS
Clear Leader Class DP Drill Ships
Water Depth 12,000ft

Drilling Depth 40,000ft Length Beam Hull Depth Draft Disp VDL 837 ft 125 ft 62 ft 43 ft 100,000 MT 20,000 MT

Dynamically Positioned

Dual Activity
Zero Discharge Facility Crude Storage Capability
Discoverer Clear Leader under construction at DSME Shipyard, Okpo, South Korea

TRANSOCEAN
Were never out of our depth.

Questions and Comments