Revista E&P - Junio 2011

E P MAG.
COM
J U N E 2 0 1 1
Unconventional
Resource
Development
Advances in
Mooring Systems
Testing and
Production
Management
Frontier
Exploration
LWD/MWD
Special Report:
BRAZIL
Unconventional
Resource
Development
Advances in
Mooring Systems
Testing and
Production
Management
Frontier
Exploration
LWD/MWD
Special Report:
BRAZIL
Unconventional
Resource
Development
Advances in
Mooring Systems
Testing and
Production
Management
Frontier
Exploration
LWD/MWD
Special Report:
BRAZIL
991-994 HEPcoversJUNE_Layout 1 5/22/11 12:19 AM Page 991
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UNCONVENTIONAL
RESOURCE DEVELOPMENT
Poland poised for productive shale
development
Unconventional gas 2.0: Unlocking a
global potential
FRONTIER EXPLORATION
True Volume interpretation improves
subsurface understanding
PSDM yields accurate pore pressure prediction
LWD/MWD
Real-time azimuthal gamma ray LWD logs
optimize sweet spot detection
LWD tool provides reliable shear slowness
measurements
TESTING AND PRODUCTION MANAGEMENT
New monitoring tool provides subsea
reassurance
DUG 2011 Q&A
Operators, analysts weigh in on unconventional
resources
ADVANCES IN MOORING
New software brings GoM infrastructure to light
Hybrid systems to change the shape of
deepwater mooring lines
IndustryPULSE:
Supply disruptions push
US toward a green future
Natural gas is a natural bridge from hydrocarbons
to alternative energy.
EXPLORATION & PRODUCTION
W O R L D W I D E C O V E R A G E
JUNE 2011
VOLUME 84 I SSUE 6
A HART ENERGY PUBLI CATI ON www. EPmag. com
COVER STORY
34
New technology
enhances downhole
performance
Downhole innovation brings new
twists to standard technology.
6
WorldVIEW:
Brasoil seeks growth
in Brazil
The fledgling company has found success through
farm-ins, farm-outs, and technical savvy.
10
Unconventional: Monterey
Monterey shale
Californias sleeping giant?
Its young, thick, and structurally and lithologically
complex. But the Monterey shale is quickly moving
past the science project stage.
42
48
52
56
58
60
65
74
70
84
SPECIAL REPORT: BRAZIL
76
80
01-4 TOC_June_01-4 TOC_June 5/22/11 11:40 AM Page 1
AS I SEE IT
Theres an app for that 5
MANAGEMENT REPORT
The war for engineering talent rages on 14
DIGITAL OIL FIELD
Tear down the silos 19
Ill take oil field analytics for $100, Alex 25
EXPLORATION TECHNOLOGY
EM tool ready for commercialization 29
WELL CONSTRUCTION
Automation: A drillers best friend? 31
PRODUCTION OPTIMIZATION
A new solution for old wells 33
TECH WATCH
CSEM identifies new prospectivity in an explored basin 82
TECH TRENDS
Innovations and new releases 90
INTERNATIONAL HIGHLIGHTS
Operators display global reach 89
ON THE MOVE/INDEX TO ADVERTISERS 91
LAST WORD
Setting the standards 92
E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston, Texas 77057.
Periodicals postage paid at Houston, TX, and additional mailing offices. Subscription rates: 1 year (12 issues), US $149; 2 years (24 issues), US $279. Single
copies are US $18 (prepayment required). Advertising rates furnished upon request. POSTMASTER: Send address changes to E&P, 1616 S Voss Road, Suite 1000,
Houston, Texas 77057. Address all non-subscriber correspondence to E&P, 1616 S. Voss Road, Suite 1000, Houston, Texas 77057; Telephone:
713-260-6442. All subscriber inquiries should be addressed to E&P, 1616 S Voss Road, Suite 1000, Houston, TX 77057; Telephone: 713-260-6442 Fax: 713-
840-1449; custserv@hartenergy.com. Copyright Hart Energy Publishing, LP, 2011. Hart Energy Publishing, LP reserves all rights to editorial matter in this maga-
zine. No article may be reproduced or transmitted in whole or in parts by any means without written permission of the publisher, excepting that permission to
photocopy is granted to users registered with Copyright Clearance Center/0164-8322/91 $3/$2. Indexed by Applied Science, Technology Index and Engineering Index
Inc. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $25,000 for violations.
DEPARTMENTS AND COMMENTARY
ABOUT THE COVER The main photo shows Schlumbergers PowerDrive
Archer high build rate rotary steerable system (RSS), a technology helping to maxi-
mize reservoir exposure and increase potential hydrocarbon recovery in North
American shale plays (Photo courtesy of Schlumberger). On the left, oil seeps are
obvious in portions of the Monterey shale in California (Photo by Lowell Georgia;
courtesy of Oil and Gas Investor; cover design by Laura Williams)
COMING NEXT MONTH The July issue of E&P focuses on unconventional wells in North
America and presents technologies that improve the quality and rate of production. Other highlights
in the issue include logging and formation evaluation, land rig advances, surface systems, offshore
construction and installation, and a look at the Niobrara shale in the western US. We continue our spe-
cial report on Brazil with an examination of presalt exploration and showcase the winners of the E&P
Meritorious Award for Engineering Innovation.While youre waiting for the next copy of E&P, remember
to visit www.EPmag.com for news, industry updates, and unique industry analysis.
01-4 TOC_June_01-4 TOC 5/22/11 2:15 PM Page 2
ONLINE CONTENT JUNE 2011
Kosmos hits 90-ft pay zone in
deepwater Ghana block
Newly public Kosmos Energy reported an oil,
condensate, and gas discovery at the #2-
Teak deepwater exploration well in the West
Cape Three Points block offshore Ghana.
PREMIUM CONTENT Subscribe @ EPmag.com/explorationhighlights
Zavannas horizontal Middle
Bakken producer flows 1,320 b/d
Zavanna LLC flowed oil at a restricted rate
of 1,320 b/d from the #1-14H Rodney well
during flowback operations in North
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AVAILABLE ONLY ONLINE
Fast-track frontiers
By Mark Thomas, International Editor
East Africa has been transformed in little more
than a year from wildcat deepwater province
to world-class exploration hotspot with major
multi-Tcf gas field development plans in the
pipeline.
Will drillers get the boot as
automation takes over?
By Nancy Miller, Associate Editor
As drilling supervision continues to transform
with technological advances, one truism
remains drilling is a human enterprise.
Industry encourages best,
brightest to be part of the solution
By Ashley E. Organ, Associate Editor
Developing talent worldwide will be
critical to continued deepwater
development.
R
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Statoil estimates volume of Barents
Sea discovery at 150-250 MMboe
A Statoil discovery on the Skugard prospect
in production license 532 in Block 7220/8 has
a proven gas column of 33 m and a 90-m oil
column.
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Dielectric Scanner
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here are many in the oil and gas industry
who do not have an iPhone or an iPad,
but that number is dwindling rapidly. These
portable devices viewed by some as noth-
ing more than interesting gadgets when
they arrived on the scene are on their way
to becoming standard equipment. Part of
the reason for this is that they can access
information wirelessly and can store an
enormous volume of data.
It is becoming more important to find
and retrieve information in real time and
on demand, which explains why Internet
use, which was far from commonplace
within the industry a mere decade ago,
now is a daily necessity. It also explains why
many companies are investing in ways to
deliver the information they produce in as
many useful formats as possible.
Hart Energy is no exception. In addition
to considerable investment in the com-
panys websites, there has been investment
in new ways to deliver information to sub-
scribers. The newest of these is the Hart Energy app. And it will be available soon
on iTunes.
The new app will allow users to download E&P magazine to an iPhone or iPad.
Once downloaded, the magazine is resident on the device, which means it is accessi-
ble whether there is an Internet connection or not so it can be read anywhere and
at any time.
As individual Hart Energy files are downloaded, they are added to a bookshelf,
a display that looks like a series of shelves, with each product appearing on its own
shelf. So when the Hart Energy app is used to download magazines like E&P,
Midstream Business, or Oil and Gas Investor, the bookshelf display shows a shelf for
each subscription. In short, it is an archive of Hart content that is easy to view and
easy to read. Once downloaded, each item can be
opened at a touch. As Hart Energys library
expands, so does the users.
Readers know the value of their Hart Energy
subscriptions. With the introduction of the Hart
Energy app, subscribers will be able to carry that
value with them wherever they go.
As I
SEE IT
EPmag.com | June 2011
1616 S. VOSS ROAD, STE 1000
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TEL: +1 713.260.6400
FAX: +1 713.840.0923
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Theres an app for that
5
Read more commentary at
EPmag.com
JUDY MURRAY
Editor
jmurray@hartenergy.com
Editor JUDY MURRAY
jmurray@hartenergy.com
Senior Editor RHONDA DUEY
rduey@hartenergy.com
Senior Editor TAYVIS DUNNAHOE
tdunnahoe@hartenergy.com

International Editor MARK THOMAS
mthomas@hartenergy.com
Associate Editor NANCY MILLER
nmiller@hartenergy.com
Corporate
Art Director ALEXA SANDERS
asanders@hartenergy.com
Senior Graphic
Designer LAURA J. WILLIAMS
lwilliams@hartenergy.com
Production Director
& Reprint Sales JO LYNNE POOL
jpool@hartenergy.com
Senior Editor/Manager
Special Projects JO ANN DAVY
jdavy@hartenergy.com
Executive Editor
Online RICHARD MASON
rmason@hartenergy.com
Online Editor REBECCA TORRELLAS
rtorrellas@hartenergy.com
Director of
Business Development ERIC ROTH
eroth@hartenergy.com
Group Publisher RUSSELL LAAS
rlaas@hartenergy.com
Vice President, Digital Media
RONS DIXON
Senior Vice President, Consulting Group
E. KRISTINE KLAVERS
Executive Vice President and CFO
KEVIN F. HIGGINS
Executive Vice President
FREDERICK L. POTTER
President and Chief Executive Officer
RICHARD A. EICHLER
05 AsISeeIt_05 AsISeeIt 5/21/11 11:05 PM Page 5
HART E E R
June 2011 | EPmag.com
6
industry
PULSE
Supply disruptions push US
toward a greener future
Natural gas is a natural bridge from hydrocarbons to alternative energy.
C
ontinued unrest in the Middle East has amplified
concerns over Americas heavy reliance on foreign
oil to satisfy growing energy needs. Until recently, the
reality of a prolonged international crisis and its impact
on the US oil market was an afterthought for many
industry experts. Over the past few months, supply fears
have played out in the markets, where crude oil prices
returned to their highest levels since 2008, surpassing the
US $120/bbl mark. And gasoline prices, which are near-
ing the $5 mark in some areas of the country, have put a
hefty price tag on global supply issues for US consumers.
Experts agree that limited oil exports from the Middle
East are fueling the rise in crude oil prices, which are
likely to rise even more as summer approaches. Due to
supply interruptions in Libya, Saudi Arabia is increasing
its oil production to more than 9 MMbbl/d, a rate that is
unlikely to remain sustainable, especially if interruptions
continue to spread throughout surrounding countries.
Although oil remains a primary source of energy
worldwide, these heightened supply fears spurred by
recent disruptions in production have increased the
urgency for the US to find both short- and long-term
solutions to an oil shortfall.
During the March CERA (Cambridge Energy Research
Associates) Week conference, industry executives dis-
cussed US supply concerns and the significant pressure
prolonged production interruptions have on the global
oil industry. They also addressed the longer term implica-
tions: that oil supply over the next 30 years is unlikely to
match the 50% increase seen over the past 30 years. This
could pose a considerable problem for the global energy
industry because worldwide demand is expected to
increase by 40% over the next 20 years.
Attempts to increase supply
In the past decade, the industry focused
on deepwater drilling as a short-term solu-
tion to the threat of an oil shortfall. At the
outset, CERA experts predicted an addi-
tional 800,000 b/d to be extracted from
deepwater wells by 2013. The Deepwater
Horizon incident in 2010 has raised major
questions about the risks affiliated with
the industrys expanding frontiers, specifi-
cally in deep water. The US E&P industry,
which prior to the spill produced only 8%
of the oil used nationally, is now operat-
ing at only 81% of capacity.
Over the past year, the US has taken
a series of steps to lessen its oil reliance
and move the country in a self-sustainable
direction. In his State of the Union
address, President Obama outlined a
clean energy standard that aims to have
80% of the countrys electricity needs sat-
isfied by clean energy sources like solar, wind, nuclear,
and natural gas by 2035. Energy executives agree that
moving the country toward clean energy is a step in the
right direction; however, this process is expected to take
at least two to three decades to implement and build the
appropriate infrastructure necessary to meet the greater
needs of the US population.
The 23-year time horizon of green energy infrastruc-
ture development presents a significant hurdle for the
industry. Oil and gas companies face shareholder and
Libyas state-owned oil company controls most of the countrys production, but for-
eign oil companies help sustain its output through joint ventures. This graph shows
the production of top international companies in thousands of barrels per day.
(Images courtesy of BDO USA)
Charles Dewhurst, BDO USA
06-9 IndPULSE-JUNE_06-9 IndPULSE-JUNE 5/21/11 11:05 PM Page 6
Drilling & Production
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46
8
investor pressures to produce immediate returns, and
long-term green energy projects are not seen as economi-
cally viable for many companies at this point. Upfront
investments could remain unrealized for decades, and
production costs alone can run up to quadruple what a
company would spend on traditional energy.
Among solar, wind, and nuclear, nuclear ranks highest
in price with expensive construction and overhead costs.
Solar has its own cost barriers, as producing energy from
photovoltaic panels costs four times as much as energy
from coal and twice as much as wind power. Power gen-
erated from offshore wind is far more expensive than
power produced by coal, natural gas, or even onshore
wind sources. While some companies like Google are
funding their own renewable energy initiatives, industry
representatives understand that many of these projects
need to be heavily subsidized to purchase new equip-
ment and to encourage companies to invest in these
evolving technologies.
There also are public concerns associated with renew-
able energy most significantly with regard to nuclear.
The recent nuclear explosion at the Fukushima Daiichi
plant in Japan has exacerbated these fears, causing the
American public to rethink the former push to reinvest
in a US nuclear energy policy. And while nuclear proj-
ects are already under way at US plants like Comanche
Peak and those owned by Exelon Corp., the industry
knows that it must focus on innovative safety techniques
to help mitigate risk.
Focus on natural gas
While the US invests in developing its nuclear, wind,
and solar energy output, industry experts have identi-
fied natural gas as one possible bridge between heavy
reliance on foreign oil and a greener future. Addition-
ally, shifting the focus onto shale and natural gas could
alter geopolitics, reducing the power of Middle
Eastern states by downgrading the demand for
their oil and aid in complying with climate
change regulation.
Congress also is considering the New Alter-
native Transportation to Give Americans Solu-
tions Act (or the Boone Pickens bill as it is
colloquially known), which would create tax
incentives in the way of $1 billion per year for
five years to encourage manufacturers to begin
building heavy-duty trucks powered by natural
gas instead of diesel. The US imports approxi-
mately 20 MMbbl/d of oil, 70% of which goes
toward transportation fuel and 23% of that
goes to fuel the 8 million heavy-duty trucks on
the roads. By taking advantage of the countrys
leading natural gas reserves, this initiative has
the potential to cut US OPEC imports in half.
Looming budget cuts make such tax breaks
unlikely in 2011; however, this is an example of
the type of action the US energy industry may
be able to take in the coming years.
Natural gas shows promise as a short-term greener solu-
tion, but it is not without its own unique set of environ-
mental concerns and extraction challenges. Hydraulic
fracturing remains a controversial practice due to reports
that rivers and aquifers near drilling sites have been pol-
luted with chemical byproducts from extraction and that
greenhouse gases are regularly released into the atmos-
phere. Even so, industry executives are committed to
developing environmentally respectable harvesting tech-
niques to tip the scales more in favor of natural gas.
The push to move away from foreign oil reliance is
growing as crude oil prices remain volatile and the cost
for gasoline continues to increase on a weekly basis. As
a result, economists are citing a rule of thumb that for
each $10 increase in the price of a barrel of oil, the GDP
of the US falls 0.2 to 0.3%. And while some blame specu-
lators for inflating fears over an oil shortfall and contend
it may never happen, industry experts reinforce the fact
that supplies are continuing to decrease and a true oil cri-
sis could come to fruition. In the meantime, expect the
US to begin seriously investing in a sustainable energy
future by focusing on alternative energy and relying upon
natural gas as an intermediary solution.
industry
PULSE
Oil prices have been on a steady increase since July 2009.
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(t
VNAT.ONAL OILWELL vaRco
SK
.,
Brasoil seeks growth in Brazil
The fledgling company has found success through farm-ins, farm-outs, and technical savvy.
B
razil might not seem like the easiest place to launch
a new offshore oil company. Prices are high, off-
shore activities have timing risk, and it is imperative to
choose ones partners wisely.
In addition, the energy market is dominated by
Petrobras.
But the founders of Brasoil do Brasil were not
deterred. They acquired a portfolio of assets from
Queiroz Galvo in 2006 and secured financing in 2007.
The initial deal was closed in December 2007, and the
company has not looked back, according to Don Parker,
president, CEO, and director for Brasoil.
Brasoil is a private company engaged in the produc-
tion, development, and exploration of oil and gas in
Brazil. It has a portfolio of assets that includes a produc-
ing gas field, undeveloped oil and gas projects, and
highly prospective exploration acreage. It has developed
strong operating ties with its partners, including Petro-
bras, Queiroz Galvo, and Panoro Energy.
Since receiving Agncia Nacional do Petrleo (ANP)
approval in 2007, Brasoil has been active in shallow
water offshore Brazil. The company
acquired a 50% interest in three shallow-
water blocks in the Santos Basin in
Brazils Round 9 licensing round and
has since conducted a successful 3-D
seismic survey. Earlier this year, Brasoil
farmed out its Round 9 blocks to Vanco
Brasil Explorao e Produo de
Petrleo e Gas Natural Ltda., a sub-
sidiary of Vanco Overseas Energy Ltd.,
for a well commitment on each block, a
15% carried interest, and recovery of
sunk costs.
The assets
Brasoil acquired blocks S-M-1036, S-M-
1035, and S-M-1100 in the Round 9 bid-
ding round. According to Parker, the
company originally identified two
prospects from existing 2-D seismic data.
After the round and with further exami-
nation of the data, a third prospect was identified,
Parker said. The company then acquired a 302-sq-mile
(783-sq-km) 3-D survey in 2009. Drilling is anticipated
later in 2011 or in 2012.
While the shallower parts of the basin are relatively
unexplored, a number of commercial oil and gas discov-
eries have been announced. The play concept is to look
for areas that have salt windows or faults that will permit
oil to migrate from deep source rocks to shallower reser-
voirs, Parker said, noting that several discoveries have
been made around Brasoils blocks.
Additional assets include a 10% stake in Manati, one
of Brazils largest non-associated gas fields. The field,
operated by Petrobras, nets Brasoil about 24 MMcf/d
of gas. Manati consists of six offshore natural gas wells
located in 131 ft (40 m) of water. The wells are tied to a
production platform 6 miles (10 km) offshore. Brasoil
also has partial ownership in the processing facility and
the 76-mile (125-km) pipeline that delivers the gas to
the Bahian market and beyond.
Brasoil has entered into a long-term natural gas con-
tract with Petrobras, with a fixed price indexed to infla-
tion, at over US $6.00/Mcf. This has provided the
company with a stable revenue stream, Parker said.
Further development is scheduled
for 2012 or 2013 and will include an
additional well and compression facil-
ities. The infrastructure can support
additional deliverability, making the
Manati field a low-risk growth area,
Parker said.
Brasoil also holds a 10% interest in
the Camarao Norte gas discovery just
south of Manati. This field will be
developed later to backfill regional
demand for gas, he said. In the
meantime, efforts are under way to
unitize this field with El Pasos inter-
ests off blocks that have also encoun-
tered gas.
In the Santos Basin, Brasoil has a
15% interest in two development
projects, Coral and Cavalo Marinho.
According to Parker, Brasoil intends
to develop these fields in conjunction
Don Parker is president and CEO
of Brasoil do Brasil. (Images courtesy
of Brasoil do Brasil)
Rhonda Duey, Senior Editor
10
world
VIEW
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with other discoveries in the area, with first produc-
tion expected in 2015. Parker expects his company
to net an additional 5,000 boe/d.
Plans going forward
With a solid portfolio of production along with
exploration and development potential, Brasoil has
hit its stride as a shallow-water player offshore
Brazil. It has plenty to keep it occupied.
The farm-out of the Round 9 blocks has been
submitted to the ANP for approval, Parker said.
It is anticipated that the approval will be received
later this year and that we will be ready to drill by
1H 2012. Brasoil, in addition to its carried 15%
interest, has an option to participate for another
5% in each of the three wells. The wells could take
as long as 90 days to drill, which will keep us quite
busy for most of the balance of 2012.
He added that the companys near-term production
target is 4,000 boe/d throughout the second half of
2011 and beyond.
Right now Parker is happy to stay close to the coast.
Deep water, he said, is not a great fit for us at the
moment, but we will be paying close attention to how
the opportunities with regard to the presalt and the
equatorial margin plays in NE Brazil will unfold.
As far as becoming an operator, Brasoil has been qual-
ified to operate onshore and in shallow water in previ-
ous bid rounds. The companys current asset mix allows
it to be an active participant at operating and technical
committees. We would be looking for operatorship in
certain situations where it makes good sense going for-
ward, he said.
The company also is evaluating future offerings
onshore. We believe it is vital to get scale to bring the
economies onshore in line with what we see in the shal-
low water, Parker said.
As for operating outside Brazil, it is still early days,
Parker said, but the acreage needs to be available to
keep our full attention there. We believe the opportuni-
ties in Brazil are extensive as it is still very early in the
countrys exploration life cycle, so we continue to look
hard there.
Brasoil is very encouraged that the government in
Brazil has agreed to proceed with an offshore round
later this year. The bid area includes sectors of the NE
Brazil underexplored equatorial margin play that will
generate significant interest by both seasoned local play-
ers and international new entrants. We are investing in
new proprietary prospect generation by acquiring and
interpreting extensive 2-D seismic data and tying it into
regional geological architecture models in preparation,
he said.
Five-year plan
Over the next five years, Parker hopes to increase the
companys production base through additional leasing
and working interest agreements. He also hopes to
expand the companys exploration portfolio.
One huge step might be to take the company public.
Such a step could be necessary to achieve his final
goal to create a multi-billion dollar E&P company
in Brazil.
Manati
Camaro
Camamu-Almada
Basin
S-M 1035, 1036, 1100
Coral
Cavalo Marinho
Santos Basin
12
world
VIEW
Brasoil holds a 10% stake in Manati, one of Brazils largest non-associ-
ated gas fields.
This map shows Brasoils assets
offshore Brazil.
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T
he expression War for Talent was first coined in the
late 1990s by Steven Hankin of McKinsey & Co. to
refer to the increasing competition to recruit and retain
talented employees. This concept emphasized the impor-
tance of talent to the success of organizations. Significant
then, it is perhaps even more relevant today, particularly
for the E&P sector, as it faces an unprecedented shortage
of engineering talent. The
dramatic shortage of engineers worldwide is unlike any
talent shortage the industry has ever seen.
Numerous studies over the past 10 years warn
that there are too few experienced engineers for the
demands of the market. A recent report by Schlum-
berger Business Consulting (SBC), 2010 SBC Oil &
Gas HR Benchmark, March 2011, claims one of the
biggest challenges facing the upstream sector is the
Big Crew Change, the transition from an older work-
force to a younger one. Although global recruitment
of engineering graduates continues to increase, experi-
enced petrotechnical professionals (PTPs) will decrease
in the next five years, the report says.
According to the SBC report, The labor market for
experienced PTPs will be tight, and these staffing issues
will have serious consequences on
projects and production capacity.
The survey also states that technol-
ogy, process improvements, and out-
sourcing will be key to mitigating
these staffing issues.
Waging the war
Organizations with the ability to
acquire talent better and faster than
their competitors will have a major
advantage in the competition for
multi-billion dollar projects. The
challenge for the industry is to find a
way to bridge the talent gap. Experi-
ence takes time to build, and the
lack of available personnel repre-
sents a tremendous challenge for
both major and independent compa-
nies. The impact of this environment on the E&P sector
is that vacancies translate directly to lost revenue. Com-
panies with unfilled positions lose billable hours every
day, and the people shortage could jeopardize project
delivery.
In this environment companies must compete like
never before to recruit from the shrinking pool of expe-
rienced professionals. To win the War for Talent, organi-
zations must develop greater speed and agility in their
recruitment processes.
The art of recruiting
The answer is more complex than simply becoming bet-
ter at recruiting. To survive in the cutthroat E&P recruit-
ing environment, organizations must harness an entire
supply chain of the best recruiters and best recruiting
agencies. Leveraging multiple recruiting sources is the
greatest challenge and one that very few organizations
do well.
The competition for engineering talent is extreme, and
the competitive landscape across the recruiting industry is
unlike anything seen in other job markets. E&P compa-
nies looking to create an effective human resource strat-
egy must complement their internal recruiting efforts
with help from the best outside agencies and must create
an environment that enables those agencies to succeed.
The war for engineering talent rages on
A new approach to addressing the problem of the engineer shortage applies supply chain
management principles.
David J. Lee, Covelo Group
14
management
REPORT
This graph, which shows the percentage of degreed engineers in the US compared by
age, illustrates the talent gap. (Source: Society of Petroleum Engineers - January, 2010)
14-18 MgtReport_14-18 MgtReport 5/21/11 11:05 PM Page 14
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Using third-party agencies remains pivotal because they
provide extensive global recruitment reach that would be
cost-prohibitive for a company to build or develop inter-
nally. Due to the extremes of market supply and demand,
agency recruiters that identify top candidates have a nar-
row window of time to place those individu-
als at a client company. This is why good
agencies are reluctant to waste their
time working with clients that either
are slow to respond or have processes agencies cannot
trust. Recruiting agencies know that their top candidates
will get hired somewhere if not by one client, then by
the next.
Supply chain management principles
One way to address the recruiting problem is to use the
supply chain management (SCM) system for engineer-
ing labor. Covelo is a company that works as a central-
ized hub that all external recruiting activities flow
through. Client hiring managers specify the needs of
their departments at one end, while an exclusive group
of agencies deliver talented candidates on the other
end. Covelo combines a proprietary web platform with
an account manager on site at each client location. The
account managers technical background provides qual-
ity assurance, while the technology streamlines the
process and facilitates a continuous loop of communica-
tion to all of the necessary parties.
This system promotes continuous learning, and since
every aspect of the workflow is measured, identifying
(and rewarding) the top performers becomes system-
atic. The web platform is used only as a tool. It is the
constant push and pull of information (and learn-
ing) through the processes that adds significant value
to the supply chain management model.
Vendor neutrality is integral to Covelos SCM system.
Conflict of interest becomes obvious when an individual
or group that has a role in recruiting is tasked with man-
aging other recruiting sources. This is why programs
managed by an agency acting as a master vendor or
programs managed by an internal recruiting depart-
ment that has its own recruiting responsibilities has
rarely (if ever) succeeded in this space. Programs that
are not implicitly vendor neutral are
simply unable to instill the trust neces-
sary to engage top agencies.
The impact of automation
and best practices
This SCM solution can have significant
impact on a client companys recruit-
ment processes. The effect of imple-
menting this program at one of the
Top 10 international design engineer-
ing firms has led to faster hiring,
reduced turnover of new hires, and
hard cost reductions in administrative
personnel.
Covelos solution has reduced
time-to-hire cycles by as much as 50%, enabling the
client to meet project demands more quickly and effec-
tively. In addition, newly hired employees (and contrac-
tors) have had greater retention rates.
The same client has experienced other significant cost
reductions and improved services as well. Offloading
agency management activities to Covelo has allowed the
streamlined HR team more time to focus on retention
and other core HR issues. Similarly, improved efficien-
cies in invoicing have yielded labor savings through
faster processing and elimination of errors. By automat-
ing what was once a complex and labor intensive
accounts payable process requiring reconciliation of
hundreds of timesheets and invoices from multiple ven-
dors, the client now receives one electronic invoice for
all agency expenditures.
Efficient billing shortens the time to pay agencies,
which delivers value in a world where agencies can
choose where to send their best talent. Ensuring that
agencies are paid accurately and quickly provides a
strong incentive for them to work through a Covelo-
driven program.
management
REPORT
One way to address the recruiting problem is to use the
SCM system for engineering labor. (Image courtesy of
Covelo Group)
We
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re on it.
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ver since the concept of the asset team first took root
in the oil and gas industry, personnel from different
disciplines have been forced to talk to one another and
work together collaboratively on projects. It has not always
been easy.
One of the primary stumbling blocks has been timing. It
takes a long time to acquire, process, and interpret seismic
data, whereas drilling engineers are often making on-the-
spot decisions as they steer their wells. They do not have
the luxury of time to go back to the drawing board and
reiterate their models.
Landmarks DecisionSpace Desktop aims to solve that
problem. Launched in 2010, it has recently been updated
with a well planning module that can do in minutes what
used to take months. The deceptively simple user interface
is backed by the brainpower of dozens of scientists who
have been intimately involved in the system development,
what Landmark refers to as High Science Simplified.
Simplifying science
High Science Simplified is not really a process; its our
commitment to what we deliver, said Nick Purday, direc-
tor of geosciences and reservoir technologies for Land-
mark. We embed high science in the technology and
present it in an easy-to-use, accessible manner.
This has been achieved by incorporating domain spe-
cialists who know what customers want out of their tech-
nology. Historically the industry has had great technology
that is inaccessible because its only for the specialists, its
difficult to use, and therefore its locked up with a few
people, Purday said. With DecisionSpace Desktop, the
usability is high, and the underlying technology has fantas-
tic science. Were embedding the knowledge and experi-
ence of 25- and 30-year experts so that somebody coming
along today doesnt have to take the seven- to 10-year
learning curve like they did 30 years ago.
Somebody coming in today can pick this up and be
productive and offer value to companies very quickly.
Part of this ability to learn quickly comes from a feature
that allows users to capture workflows and knowledge. As
users work through their data, the system establishes a
workflow that can be monitored and documented. If
your boss walks in and says, What have you been doing for
me today? heres that information, said Purday.
He added that originally Landmarks geophysical and
geological products were integrated at a data level. The
new product is integrated at an application level one
environment that spans all of those disciplines. The Deci-
sionSpace Desktop workspace is the entire system and pro-
vides the unified workspace where multiple data sources
can be interpreted and analyzed in a collaborative manner.
Two types of data that are not traditionally employed in
geoscience interpretation software but are integral to this
system are GIS data and geological cross-sections. The soft-
ware can bring geographic and cartography information
straight from the ESRI ArcGIS database into the interpre-
tation environment. This helps correct for mismatches
between different types of maps. The GIS images are han-
dled by OpenWorks, Landmarks database, so there is no
concern about which copy of the data is being used.
Geological cross-sections can be imaged in three dimen-
sions, and interpretations can be done on these cross-sec-
tions. If you had no seismic data, you could still do an
interpretation, said Purday. Were trying to take the non-
digital and make it digital.
The end result of the original offering is what Land-
mark calls a Dynamic FrameWorks to Fill. That means
digital
OIL FIELD
Tear down the silos
True data integration has everyone talking the same language.
Rhonda Duey and Tayvis Dunnahoe, Senior Editors
Both 2-D and 3-D views of multilateral well plans in an unconven-
tional field are shown in relation to the surface topology using
satellite imagery and the subsurface reservoir based on horizon
interpretation. (Images courtesy of Landmark)
19-24 DOF-Landmark_19-24 DOF-Landmark 5/21/11 11:05 PM Page 19
Change Multiple
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that the interpretation is consistent, its sealed together into a topological
model a live model that well update as we add interpretation, he explained.
The system can be updated on the fly and scales easily from a well scale to a
full basin scale. Thats no small thing, said Gene Minnich, vice president of
Landmark. To take the vertical resolution of wells, for which you have very
good detail, and extend it with seismic, to make that interpretation automatic
its a big differentiator.
Well planning
The 3-D FrameWork-based system is optimized for geosteering new informa-
tion encountered while drilling can be updated in the model immediately. In
geosteering applications, rapid updates are critical.
Usually FrameWork updates would take a couple of days, Purday said. With
the DecisionSpace Desktop, you can now model, look ahead, and feel confident
that youll stay in the zone.
Added Minnich, If you leverage information in real time so you dont have
to stop operations to help make adjustments in performance or optimization,
and if youre measuring information in real time and sending that back to
update your models, you have an opportunity to redirect the operations.
New additions include the ability to do petrophysical interpretation on well
logs. For instance, a log calculator recently has been added that links directly to
the environment. With this system, weve built a calculator directly into the
desktop so that the geologists can complete the log analysis in real time, he
said, adding that the calculations are industry-standard computations for things
like porosity, permeability, and water saturation but can be custom-tailored for
each companys preferences.
The system also allows for the use of images of paper log sections such as
raster logs, very common for onshore plays in mature basins.
digital
OIL FIELD
Both 2-D and 3-D views of GIS data in the DecisionSpace Desktop include 2-D lines,
lease blocks, vertical images, satellite imagery, pipelines, etc. The GIS data have
been draped on a key geologic marker, enabling accurate analysis of the block
boundaries and tectonic elements on subsurface prospects.
W
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digital
OIL FIELD
This well-based information is combined with geophysi-
cal data to populate the reservoir model with attributes.
For instance, users can look at the porosity within the
reservoir that has been computed by the log calculator in
three dimensions. This helps to validate the property dis-
tribution with the geological interpretation.
The next step is to start planning the wells. The drilling
engineer is brought in to help plan the wells with the inter-
preters, who have already identified sweet spots from the
attribute distributions. The geologist picks the targets, and
the drilling engineer provides parameters of what can actu-
ally be drilled with the rig on hand. When the wells are dis-
played in the red-line section view, it is easy to see if any of
the drilling parameters have been exceeded. If so, the well
path can be dragged around until it meets the parameters.
Based on the well plan, the system also can predict the
total development cost, and it factors in surface issues that
could affect the placement of a pad or platform. And
through microseismic monitoring of hydraulic fracturing
jobs, field development plans can be changed on the fly to
stay perpendicular to the fractures, which may be propa-
gating in directions that were not predicted prior to com-
pleting the well.
Based on all of this information, current and future frac
jobs can be planned to better optimize completions within
the field.
In all, the goal is to provide actionable information in a
reasonable time frame to enable efficient decision-mak-
ing. We need to integrate as much as possible, Purday
said. Its been a slow process, and our customers have
been telling us its a slow process. They wanted to plan out
these fields, and they wanted to get through multiple sce-
narios. But they couldnt. Bringing well planning into the
geosciences environment was one of those processes that
was ripe for integration.
Added Minnich, Even though people recognize
the challenge, its taken a long time for the cultural
change to occur. Part of it is enabling technologies that
get people into a room together collaborating on the
same datasets.
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I
BM was so sure that it had something special that it
invited the makers of Jeopardy! to set up a stage at its
research center and invite their two top scorers to tape a
series of episodes of the popular game show. The third
player was Watson, IBMs latest innovation.
Watson is the result of the work of 25 IBM research sci-
entists, who spent four years developing a system that can
evaluate the equivalent of about 200 million pages of con-
tent, written in natural
human language, to find
answers to questions. It is
powered by 10 racks of IBM
POWER 750 servers running
Linux and uses 15 terabytes
of RAM and 2,880 processor
cores. And it is capable of
operating at 80 teraflops.
The choice to showcase
Watson on Jeopardy! was not
merely a carnival trick. The
shows trivia-style format is
an enormous task for a com-
puter as most computers do
not understand natural lan-
guage. It also requires a
great deal of speed and,
according to IBM literature,
the ability to decipher clues
with subtle meanings, irony,
riddles, and other language
complexities.
The research obviously paid off because Watson walked
away with the game. Now IBM faces the challenge of
introducing Watson to the real world, a world where
businesses are drowning in an overwhelming amount
of data and rely on business analytics to try to make sense
of it all. The oil and gas industry is a prime target.
Information overload
The oil and gas industry has proven to be quite adept at
finding ways to take more and more measurements in
exploration, drilling, and production. It is having a
harder time figuring out what to do with all of that infor-
mation. According to John Brantley, IBM worldwide
manager, Chemicals and Petroleum, Watson can help.
Watson will allow you to have the information within
the machine, Brantley said. We then build out different
algorithms over time that allow you to go in and get dif-
ferent information. This information could include les-
sons learned and best practices related to drilling analogs,
extraction procedures from certain types of reservoirs,
etc. You can rapidly go after the information within a
matter of seconds and also put a percent of confidence
level on the information thats being provided, he said.
Already IBM is in talks with a number of oilfield
clients, and Brantley said that one area of interest is seis-
mic interpretation. To the extent that you can teach
interpretation to Watson and have access to that infor-
mation, it also helps with the aging of the workforce and
the requirement that you have to continue to do more
exploration, he said. Watson does have the ability to
learn over time.
He added, Our issue is not finding the demand.
digital
OIL FIELD
Ill take oil field analytics
for $100, Alex
After taking on Jeopardys top winners, Watson sets its sights on the digital oil field.
Jeopardys top winners vie against Watson, an English-speaking computer system. (Images
courtesy of IBM)
25-28 DOF-IBM_25-28 DOF-IBM 5/21/11 11:06 PM Page 25
It
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local
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From well completion, wellbore
maintenance and workovers to
p
lugging and abandonment, Basic
provides a comprehensive range of
well servicing tasks pe?formed b
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peop
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digital
OIL FIELD
A computer that talks back
The biggest difference between Watson and other com-
puters is its ability to understand human language. Brant-
ley said this ability allows companies to put volumes of
written data into the system, so that analytics can be per-
formed on the written word as well as numbers.
It is, in fact, so adept at language that it can pick up
context clues to understand the true meaning of a word
that can be used in multiple ways. For instance, if Wat-
son is told that a person is running for president, it can
understand that the word running means for office,
not in a race.
Brantley said when IBM came out with its first PC in
the early 1980s, computers knew with 95% accuracy
about 5,000 words. The major difference with Watson is
that it understands 100 billion words, he said. Thats
the big breakthrough opening up the human lan-
guage and being able to interact with a computer the
way we interact with other humans.
While Watson is currently queried via a keyboard, the
next step is voice recognition. IBM also is examining
multi-language skills. I know English is supposed to be
the global language, but the ability for a question to get
answered in ones native tongue would allow people to
collaborate better, he said.
Watson also can gauge the probability that the answer it
comes up with is correct. It allows you to go off into your
database in multiple areas and try to string together a
thought and then come back with the probability of suc-
cess, Brantley said. If that probability is high, you want
to check it. I dont think anyone is ready to turn the
world over to a system, but again it allows you to make
better use of your data.
Brantley sees a great future for Watson in the area of
streaming computing, where data is coming in from the
field in real time 24/7. Watson could be trained to mon-
itor all of the data and look for potential problems, not
like a simple alarm system but a system that can recognize
patterns and offer suggestions for action or improvement.
It is these high-value areas that should be Watsons
first challenge, Brantley believes. What were talking
about with customers is in the exploration and produc-
tion space, he said. The gains are huge, and the costs
can be high if it doesnt work out.
Watsons future
Watson has tremendous potential in industries like oil
and gas and medicine, Brantley said. In a sense, these
will be easier challenges than a quiz show. The algo-
rithms in Watson were specifically written around Jeop-
ardy!, which is very broad, he said. Youre not too sure
what the question is, or the context. But once you go
into an industry where the terminology and nomencla-
ture is smaller, then youre working with more of a
known universe.
Eventually Watson wont require a large room
equipped with multiple racks. John Kelly, head of IBM
Research, claims that within 10 years the power of Wat-
son will be available in a handheld device.
But the time to start experimenting is now. This is a
toolbox that builds on itself over time, Brantley said,
adding that Watsons Jeopardy! fame is creating some
competition among oil companies wanting to be the
first to try out the new technology. We are pushing cus-
tomers not only on Watson but also around streaming
computing instead of storing data that gets produced
from wells, actually doing something with it as its com-
ing in. Were very excited about the analytics-based
work, and the next part of that is to tie it into a Watson-
based system.
Overall, the future is very exciting indeed. I believe
this is going to change the way very complex systems like
E&P take place, Brantley said. Were just on the cusp.
Its very exciting stuff.
Dave Ferrucci, IBM scientist and Watson project director, shows
the brains behind the system.
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John Smith 123 78
MembWSinM20J
I
t started with a young mans promise. Inspired by his
bride-to-bes dexterity with a dowsing rod, Franz Van
de Kop boldly announced that some day he would
build her an electronic version to snoop out aquifers.
Fast-forward several years, and Van de Kop has kept
his promise to wife Bridget and has developed a tool
that functions as a direct hydrocarbon indicator in the
process. Called the EM Locator, the system consists of
a battery-operated source that sends pulses into the
ground with electrodes or a loop. The return signals
are collected by a sensor, amplified, digitized, and
transferred to a laptop for further processing. It can
be controlled from a vehicle or on the ground.
The concept behind EM Locator is that the pulses
cause liquid molecules in the subsurface to generate a
charge. This in turn creates an electromagnetic (EM)
wavelet that returns to the surface with enough voltage
to be picked up by the sensor.
Van de Kop said that, in addition to impressing his
wife, his inspiration to build the system came from
a lifelong quest to design and improve equip-
ment. But the dream had to be put on the
back burner while he worked 60-hour
weeks in the oil and gas industry. After I
started working 40 hours a week for the
government, I started investigating pos-
sibilities and building the system, he
said. Every year we got another 1,000 ft
(305 m) in depth. I knew it was working.
He received a patent in 2001, and the
couple has spent the past several years proving
the concept. It initially was designed to find
aquifers, but other uses became apparent over time.
When we exhibited at the SEG (Society of Exploration
Geophysicists) and AAPG (American Association of
Petroleum Geologists), they said, Were not interested
in finding water; we want to find oil and gas, he said.
We had been testing close to an abandoned well, and
we found a faint signature that wed never seen before.
We got the logs from the well, and at practically the
same depth there was a layer of gas. We were delighted.
Further testing on public land near Denburys
acreage confirmed that the new signature was indeed
natural gas, and after continued tests, the system now
can identify oil, gas, brine water, freshwater, and even
the presence of underground caves.
As with any unusual concept, convincing a black box-
shy industry that this really works has not been easy.
The first couple of years, people looked at us as if we
were from Mars, Van de Kop said. But now its been
proven without any doubt.
Remarkably, it was only recently that he learned how
the tool worked. My background is in electrical engi-
neering, so I didnt have the physics training to under-
stand what was happening with the EM and the
non-solids. A gentleman at a trade show
finally explained the physics behind the
measurement to him.
The Van de Kops have taken the EM
Locator concept as far as they plan to.
Increasing the size of the power source
would increase the depth of investiga-
tion, but that would come at a price.
This is a comfortable weight for us to
carry, he said. A bigger power source
would weigh 80 or 90 lb. The geophysical com-
panies have their field hands, but in this case, we
are the field hands.
So the hope is to find a company interested in pur-
chasing the technology and the patent. The Van de
Kops only have one prototype, but larger versions could
be used to search for deeper oil and gas pockets, and
smaller versions that would fit in a backpack could be
used to find aquifers in countries desperate for water. A
few companies have expressed interest, but they still are
waiting for one to step forward.
Weve never given up, Van
de Kop said. Weve had a mar-
velous time.
EM tool ready for commercialization
The new EM Locator holds great promise for oil and gas exploration. It just
needs a good home.
EPmag.com
RHONDA DUEY
Senior Editor
rduey@hartenergy.com
29
exploration
TECHNOLOGY
As with any
unusual concept,
convincing a black
box-shy industry
that this really
works has not
been easy.
29-30 ExpCOL_29-30 ExpCOL 5/21/11 11:06 PM Page 29
29-30 ExpCOL_29-30 ExpCOL 5/21/11 11:06 PM Page 30
r
.?
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lenging shale plays are reaping the
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CONSTRUCTION
A
ccording to John Kozicz, technology manager,
Transocean, Drilling automation is not new, or
particularly novel. As early as 1932, companies such as
Westinghouse and General Electric began patenting
methods for automating portions of the drilling process.
The question of automation in todays drilling envi-
ronment revolves around the role of the driller. SPEs
Gulf Coast Section held its annual Drilling Sympo-
sium titled, The Changing Role of Rig Supervision
(Do We Need the Driller?) in Houston in late April.
Among the panelists were a number of operating and
service companies presenting the current status of
drilling automation and its possible developments in
years to come.
Absolutely, we need a thinking person, said Paul
Pastusek, drilling mechanics advisor, Drilling Technical
Group, ExxonMobil. We can automate the things we
know, but not the learning process, he said.
For Shell, automation is about performance, not
reducing staff per se, said Mark Anderson, drilling
mechanics technologies manager, Shell. Without
automation we are not taking full advantage of known
best practices for both routine and non-routine oper-
ations and we are continually paying for the ineffi-
ciency associated with the wide range of experience
and skill level of available personnel in our industry,
and entering our industry, he said.
The technology to implement drilling automation
has kept pace with advances in hydraulic, electronic,
and computer systems,
Kozicz said. The
majority of auto-
mated systems
innovations has
been applied off-
shore where
manpower and
deck space are
both in lim-
ited supply,
but some automa-
tion is at work on
land. Weve seen
limited deploy-
ment of drilling automation on land rigs, Kozicz said.
Drilling automation on land is helping to lower
development cost in a number of North Americas
shale plays, such as the Eagle Ford in South Texas.
Next-generation AC rig designs are paying off for
Anadarko, said Mark Sundland, drilling engineering
manager, Anadarko. Of the companys 48 rigs cover-
ing the lower 48 states in the US, 85% are next-gen
AC rigs with 32 of these working exclusively in the
companys horizontal developments in Eagle Ford,
Marcellus, Haynesville, Niobrara, and Bone Spring. Is
it cost-effective? Yes, Sundland added, and not only in
terms of time savings. The automation available in the
land rig market has improved safety by lowering both
the occurrence and severity of incident rates.
In the Eagle Ford alone, Anadarko has drilled 153
wells and more than 2 million feet in the past 12
months. Its spud-to-rig release record stands at 8.5 days,
and the company has outpaced industry averages in the
local Eagle Ford structural window with a drilling cycle
time of 12 to 13 days compared to 24 to 28.
We need the driller, but we really need a better
informed driller, Pastusek said. The consensus of the
panel was that the driller should remain a crucial part
of the process. As automation becomes more fluid at
the rig site, skill sets will become more advanced.
Rather than fade away, it is more likely that the driller
will benefit from a more central role developed
around varying degrees of knowledge on a variety of
tools and systems. Drilling is
really a people business, Sund-
land said. Automation is
efficient; however, the busi-
ness performance is still
driven by the people.
Automation: A drillers best friend?
A recent symposium says, yes.
EPmag.com
TAYVIS DUNNAHOE
Senior Editor
tdunnahoe@hartenergy.com
31
We need a
thinking person;
we can automate
the things we know,
but not the
learning
process.
31-32 WellConstruction_31-32 WellConstruction 5/21/11 11:06 PM Page 31
31-32 WellConstruction_31-32 WellConstruction 5/21/11 11:06 PM Page 32
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Toll, , r
W
hen a well and its infrastructure must be dis-
mantled, it is critical to ensure they pose no
safety or environmental threats. Poorly abandoned
wells can lead to non-compliant status with regulatory
agencies, so the technological innovations that tackle
this challenge are increasingly in demand.
Weatherford International is one of the companies
working to address this industry need. Its Well Inter-
vention Unit, used for plugging and abandonment
(P&A), is a case in point. It is a compact rigless
hydraulic pulling-and-jacking unit that delivers
powerful capability with lightweight, modular
operating systems in minimal footprints.
Traditional P&A equipment often is problematic
in price-sensitive and safety-conscious abandonment
operations. Jackup rig installations can be not only
very expensive but can increase exposure to safety
issues, and snubbing units require a lot of assembly
time and are difficult to move from well to well.
P&A in the GoM
A six-pile platform in the Gulf of Mexico was damaged
by Hurricane Katrina, leaving it leaning at approxi-
mately 15. Before the storm it was fully operational,
with 10 producing wells and one partially drilled
conductor; so the platform drill deck was loaded with
production equipment. Inspections determined the
structure was acceptably stable, although one corner
leg had penetrated the support shale. All of the well
conductors were bent at or below the mud line. Because
the platform was leaning, snubbing units and jackup
rigs had been eliminated as viable P&A options.
The operator secured the platform, installing a sec-
ond four-pile platform at the leaning corner of the
structure. Laser surveying was conducted to establish
exact relations of the wellheads to the new structure.
Due to the damage, exact weights were critical to
ensure the total equipment load on the structure fell
within the weight parameters allowing for an overpull
of approximately 100,000 lb. The operator needed a
solution that would meet its specific weight require-
ments, skid easily from well to well, and have a minimal
footprint because deck space was limited.
Weatherfords pulling-and-jacking unit averaged less
than one hour moving from one well to another. Its
load capacity and compact design enabled efficient
retrieval and tubular laydown. And by cutting well cas-
ings approximately 15 ft (5 m) below the mud line by
effectively tripping 3-in. OD drillpipe with cutting
assemblies into the wells, sensitive work was accom-
plished without incident.
All of the work was completed two months ahead of
schedule, resulting in significant cost savings. The
unit spent 299 days on location, with 2,276
job safety and environmental
impact analyses conducted
and no recordable injuries
or incidents.
production
OPTIMIZATION
A new solution for old wells
A rigless intervention unit takes the guesswork out of P&A.
EPmag.com
MARK THOMAS
International Editor
mthomas@hartenergy.com
33
Weatherfords rigless
well intervention unit
won the remediation
category in E&P mag-
azines Meritorious
Awards for Engineer-
ing Innovation.
(Image courtesy
of Weatherford
International)
33 PRODcol_33 PRODcol 5/21/11 11:06 PM Page 33
34
W
ell construction techniques remain static to some
degree. When necessary, engineers look for ways
to enhance and improve current technology to provide
lower cost and less risk in a variety of drilling applications.
From spud to stimulation, several companies are look-
ing at the full drilling cycle to develop tools that can pro-
vide a seamless approach to the well construction process.
Engineering RSS performance
For any horizontal well, the payzone begins after the
curve is built. Achieving a successful, efficient high dogleg
severity (DLS) can exponentially improve the perform-
ance and payout of an individual well. Limitations to high
build rates include increased friction, bending of tools,
and added stress on costly bottomhole assembly (BHA).
When being rotated through these high build rate sec-
tions, BHAs experience large bending moments. Fatigue
life reduces exponentially with increasing build-rate.
This can reduce the life of standard BHA components
to a matter of hours. Without a method of modeling
and tracking fatigue, catastrophic failure and twist-off
of BHA components could occur.
The Schlumberger PowerDrive Archer high build-rate
rotary steerable system (RSS) provides the means to drill
well profiles with high dogleg severity in order to maxi-
mize reservoir exposure and increase the potential for
hydrocarbon recovery and combine this with the tradi-
tional RSS benefits of increased effective drilling effi-
ciency and superior wellbore quality.
Field trials began in 2008, and the functionality and reli-
ability of the service proved to be very robust. Due to this
systems unique capability in terms of dogleg provision a
second stage of field testing was necessary. This supple-
mentary stage was to design and ensure that any BHA
used did not impact the build rate capabilities of the
PowerDrive Archer system and that any extra fatigue
generated through rotating a drill string through a
high dogleg wellbore could be managed.
For the first time we are bringing fully rotating BHAs
to high build rate well profiles, said Richard Hawkins,
product champion, Schlumberger.
The PowerDrive Archer is a fully rotating system. As
with the entire PowerDrive RSS family, anything exposed
to the wellbore rotates at drillstring rpm as a minimum,
Hawkins said. This rotation reduces drag, improves ROP,
decreases the risk of differential mechanical sticking, and
achieves superior borehole cleaning and conditioning.
This reduced friction is especially important when drilling
horizontal sections, as the total length that can be drilled
is potentially extended. Running casing is also significantly
less problematic due to a smoother and cleaner wellbore.
Borehole quality is fundamental for drilling optimiza-
tion. This includes maximizing borehole cleaning and
minimizing tortuosity and wash-outs. With openhole com-
pletions, a smooth borehole leads to less chance of bore-
hole problems and key seating.
For cased hole completions, a smooth wellbore with a
constant DLS leads to much easier deployment of comple-
Tayvis Dunnahoe
Senior Editor
34-41 COVERstory-JUNE_34-41 COVERstory-JUNE 5/21/11 11:07 PM Page 34
EPmag.com | June 2011 35
COVER STORY:
DOWNHOLE SYSTEMS & TOOLS
35
tion equipment than with the typically tortuous slide-
rotate profile delivered with motors. In the Eagle Ford,
we have seen up to a 20% reduction in wellbore tortuos-
ity, Hawkins said.
The company has performed comprehensive finite ele-
ment analysis and detailed strain-based fatigue studies on
all the components in the PowerDrive Archer BHA to
understand the effects on them when subjected to high
doglegs. We are using fatigue-resistant
materials and have a predicted fatigue life
for all the BHA components, Hawkins
said. Tracking this fatigue life is extremely
complex. The companys Perform Toolkit
data optimization and analysis software
is provided to automatically track tool
fatigue and substantially reduce the risk
of failure.
The full rotation is a key feature of the
service and is achieved through an
advanced control system, which allows
the electronic assembly inside the tool to
be held geostationary while everything
exposed to the wellbore rotates. Effec-
tively, we measure the exact rotating
speed (rpm) of the external drill collar
and then use a control system to hold an
internal valve at a constant toolface,
Hawkins said. We then divert a small
percentage of the mud flow through the
valve to activate the system at the
required toolface.
In field trials, PowerDrive Archer delivered up to 17
deg/100 ft (17 deg/30.5 m), both from vertical or many
other inclinations. We accurately measure magnetic tool
face, so the wellbore trajectory can be kicked off on the
desired azimuth even from vertical, Hawkins said. The
tool can drill out the shoe, come off a whipstock or
cement plug, stay perfectly vertical, ream or back ream,
and then kick off accurately with high build rates. The
tool can then continue to drill whatever well profile is
needed and do this all in a single run. PowerDrive Archer
is a drilling system, one that incorporates bit and BHA
design, Hawkins said.
Hybrid tool provides steerability
The bottom line for high-end RSS systems is high cost.
The application of RSS in the field has proven its advan-
tage in terms of reducing drilling times and gaining access
to the reservoir; however, reluctance to drill with RSS
reigns for wells having a high risk of lost-in-hole outcomes.
For conventional directional drilling the use of a mud
motor and sliding often provides the means by which
operators can control the trajectory of any well. While
these tools are reliable and proven through a long history
of field use, they come with limitations for complex well
trajectories. Nevertheless, additional drilling time is prefer-
able to lost time resulting from a stuck RSS tool.
Weatherford International has developed its Motary-
Steerable tool as a bridge between mud motors, rotary
steerables, and MWD. The hybrid system outperforms a
motor-only approach while providing less risk than an
advanced RSS system. At the low end of the tool box are
conventional mud motor tools and directional control sys-
tems, and the high end includes traditional rotary steerable
tools like Revolution, said Chris Maranuk, new product
launch manager, Weatherford International. MotarySteer-
able is a tool that essentially combines MWD and mud
motor technology to create a low-angle assist tool.
According to Maranuk, the combination of MWD,
drilling motors, and RSS experience within a single group
of engineers was critical to conceiving this product. The
biggest challenge to making MotarySteerable work was to
overcome the barriers between each of the drilling prod-
ucts and remove individual objectives in favor of a greater
goal, Maranuk said.
In traditional oriented drilling, a bent sub is used to point
the bit and then turned by the drilling motor to drill the
Baker Hughes FracPoint EX-C provides
the ability to fracture up to 40 stages in series with
continuous pumping operations using
1
16-in. increments
in ball and seat sizes. (Image courtesy of Baker Hughes)
The PowerDrive Archer RSS delivers well profiles previously only possible with motorsyet
with the ROP and wellbore quality of a fully rotating RSS. (Image courtesy of Schlumberger)
34
W
ell construction techniques remain static to some
degree. When necessary, engineers look for ways
to enhance and improve current technology to provide
lower cost and less risk in a variety of drilling applications.
From spud to stimulation, several companies are look-
ing at the full drilling cycle to develop tools that can pro-
vide a seamless approach to the well construction process.
Engineering RSS performance
For any horizontal well, the payzone begins after the
curve is built. Achieving a successful, efficient high dogleg
severity (DLS) can exponentially improve the perform-
ance and payout of an individual well. Limitations to high
build rates include increased friction, bending of tools,
and added stress on costly bottomhole assembly (BHA).
When being rotated through these high build rate sec-
tions, BHAs experience large bending moments. Fatigue
life reduces exponentially with increasing build-rate.
This can reduce the life of standard BHA components
to a matter of hours. Without a method of modeling
and tracking fatigue, catastrophic failure and twist-off
of BHA components could occur.
The Schlumberger PowerDrive Archer high build-rate
rotary steerable system (RSS) provides the means to drill
well profiles with high dogleg severity in order to maxi-
mize reservoir exposure and increase the potential for
hydrocarbon recovery and combine this with the tradi-
tional RSS benefits of increased effective drilling effi-
ciency and superior wellbore quality.
Field trials began in 2008, and the functionality and reli-
ability of the service proved to be very robust. Due to this
systems unique capability in terms of dogleg provision a
second stage of field testing was necessary. This supple-
mentary stage was to design and ensure that any BHA
used did not impact the build rate capabilities of the
PowerDrive Archer system and that any extra fatigue
generated through rotating a drill string through a
high dogleg wellbore could be managed.
For the first time we are bringing fully rotating BHAs
to high build rate well profiles, said Richard Hawkins,
product champion, Schlumberger.
The PowerDrive Archer is a fully rotating system. As
with the entire PowerDrive RSS family, anything exposed
to the wellbore rotates at drillstring rpm as a minimum,
Hawkins said. This rotation reduces drag, improves ROP,
decreases the risk of differential mechanical sticking, and
achieves superior borehole cleaning and conditioning.
This reduced friction is especially important when drilling
horizontal sections, as the total length that can be drilled
is potentially extended. Running casing is also significantly
less problematic due to a smoother and cleaner wellbore.
Borehole quality is fundamental for drilling optimiza-
tion. This includes maximizing borehole cleaning and
minimizing tortuosity and wash-outs. With openhole com-
pletions, a smooth borehole leads to less chance of bore-
hole problems and key seating.
For cased hole completions, a smooth wellbore with a
constant DLS leads to much easier deployment of comple-
Tayvis Dunnahoe
Senior Editor
EPmag.com | June 2011 35
COVER STORY:
35
tion equipment than with the typically tortuous slide-
rotate profile delivered with motors. In the Eagle Ford,
we have seen up to a 20% reduction in wellbore tortuos-
ity, Hawkins said.
The company has performed comprehensive finite ele-
ment analysis and detailed strain-based fatigue studies on
all the components in the PowerDrive Archer BHA to
understand the effects on them when subjected to high
doglegs. We are using fatigue-resistant
materials and have a predicted fatigue life
for all the BHA components, Hawkins
said. Tracking this fatigue life is extremely
complex. The companys Perform Toolkit
data optimization and analysis software
is provided to automatically track tool
fatigue and substantially reduce the risk
of failure.
The full rotation is a key feature of the
service and is achieved through an
advanced control system, which allows
the electronic assembly inside the tool to
be held geostationary while everything
exposed to the wellbore rotates. Effec-
tively, we measure the exact rotating
speed (rpm) of the external drill collar
and then use a control system to hold an
internal valve at a constant toolface,
Hawkins said. We then divert a small
percentage of the mud flow through the
valve to activate the system at the
required toolface.
In field trials, PowerDrive Archer delivered up to 17
deg/100 ft (17 deg/30.5 m), both from vertical or many
other inclinations. We accurately measure magnetic tool
face, so the wellbore trajectory can be kicked off on the
desired azimuth even from vertical, Hawkins said. The
tool can drill out the shoe, come off a whipstock or
cement plug, stay perfectly vertical, ream or back ream,
and then kick off accurately with high build rates. The
tool can then continue to drill whatever well profile is
needed and do this all in a single run. PowerDrive Archer
is a drilling system, one that incorporates bit and BHA
design, Hawkins said.
Hybrid tool provides steerability
The bottom line for high-end RSS systems is high cost.
The application of RSS in the field has proven its advan-
tage in terms of reducing drilling times and gaining access
to the reservoir; however, reluctance to drill with RSS
reigns for wells having a high risk of lost-in-hole outcomes.
For conventional directional drilling the use of a mud
motor and sliding often provides the means by which
operators can control the trajectory of any well. While
these tools are reliable and proven through a long history
of field use, they come with limitations for complex well
trajectories. Nevertheless, additional drilling time is prefer-
able to lost time resulting from a stuck RSS tool.
Weatherford International has developed its Motary-
Steerable tool as a bridge between mud motors, rotary
steerables, and MWD. The hybrid system outperforms a
motor-only approach while providing less risk than an
advanced RSS system. At the low end of the tool box are
conventional mud motor tools and directional control sys-
tems, and the high end includes traditional rotary steerable
tools like Revolution, said Chris Maranuk, new product
launch manager, Weatherford International. MotarySteer-
able is a tool that essentially combines MWD and mud
motor technology to create a low-angle assist tool.
According to Maranuk, the combination of MWD,
drilling motors, and RSS experience within a single group
of engineers was critical to conceiving this product. The
biggest challenge to making MotarySteerable work was to
overcome the barriers between each of the drilling prod-
ucts and remove individual objectives in favor of a greater
goal, Maranuk said.
In traditional oriented drilling, a bent sub is used to point
the bit and then turned by the drilling motor to drill the
Baker Hughes FracPoint EX-C provides
the ability to fracture up to 40 stages in series with
continuous pumping operations using
1
16-in. increments
in ball and seat sizes. (Image courtesy of Baker Hughes)
The PowerDrive Archer RSS delivers well profiles previously only possible with motorsyet
with the ROP and wellbore quality of a fully rotating RSS. (Image courtesy of Schlumberger)
36
hole directionally. During rotary drilling, two sources of
rotation are available, but directional control is lost; the
bend orientation becomes irrelevant due to the rotation of
the drill string, and the rotational energy is used to drill the
hole. Weatherfords MotarySteerable tool uses targeted bit
speed (TBS) to reverse this approach by directly controlling
the drilling motor speed to target orientation. The bend is
turned continuously with the drill string while motor speed
is varied as a function of bend orientation to change the
rate of penetration as a function of bend position. This is
the same approach as oriented drillingpoint the motor
and drill aheadwith the exception that it is done once
per revolution of the drill string, Maranuk said.
A key feature of MotarySteerable system is the ability
to change from TBS to sliding without tripping out of the
hole. The ability to use TBS to change directional control
has always been a key requirement for this particular sys-
tem, Maranuk said. As the system has undergone testing,
Weatherford has developed selective updates to enhance
the tools functionality.
One of the more interesting capabilities is the auto inc
feature that allows the user to download a desired inclina-
tion and let the system self-correct downhole, Maranuk
said. The tool automatically turns on when the inclination
starts to wander out of its preset limits and turns off when
not required. The tool can be turned off or on through a
variety of methods including downlinking through tradi-
tional surface-initiated pressure pulses or by using various
rotational sequences. Of course, the key benefit of pro-
viding the capacity to change from a sliding oriented
string to a full 3-D directional rotating string from the
surface is the flexibility in terms of operator drilling
practices, Maranuk said.
The MotarySteerable system takes advantage of two
proven technologies, mud motors and MWD, to create
a very reliable robust system. In drilling environments
where the system is unable to obtain the desired build
rates, one can always stop, orient, and then slide using
conventional directional drilling techniques, so it offers
a very low-risk technology. One can expect lower lostin-
hole costs than traditional rotary steerable tools. The key
advantage over traditional oriented directional drilling
techniques is its ability to offer full 3-D directional control
while continuously rotating.
Not every operator who drills a well in the US needs a
high dog leg rotary steerable tool with a full quad combo
LWD to drill and evaluate their well, Maranuk said. We
see a need for this type of service to help compliment
those customers who might need a more economical
solution with less system performance but yet full 3-D
continuous rotation directional control.
Longer laterals, more frac stages
As drilling operations come to a close, completions opera-
tions take effect. Fracing technology has undergone a
multitude of advances in recent years, and companies
continually engineer this process to provide further per-
formance not only in execution but also in outcomes.
Baker Hughes Inc. recently completed a record-setting
40-stage frac job in North Americas Williston Basin, which
is known for extremely long lateralssome in excess of
9,000 ft. (2,743 m).
The Baker Hughes FracPoint multistage open hole
fracturing system is currently used to complete an
average of 19 stages per well in the US, which is up from
five stages in 2006. With the introduction of this latest
generation system, we expect this average number to
approach 30 by year end, said Matthew Kebodeaux, vice
president Completions, Baker Hughes. The companys
latest achievement was delivered with its FracPoint EX-C
system. Operators performing plug and perf operations
to achieve their desired number of stages can now switch
over to openhole multistage fracturing, which is more
cost-effective because of the rig time savings.
COVER STORY:
The MotarySteerable System takes advantage of two centerlines of
a mud motor to target bit speed to provide full 3-D rotating (direc-
tional) control. (Image courtesy of Weatherford International)
34-41 COVER!or#-JUNE_La#o"! 1 5/22/11 12:44 AM Page 36
The best ideas never happen in a vacuum. They're the result of
listening, understanding, and getting to the heart of your challenge.
From reservoir planning through every phase of recovery and
processing, we
'
ve found that working with the people we
'
re working
for is essential to crafting a fit-for-purpose solution and delivering
flawless performance. Because when we're all on the same team,
we 're pretty hard to beat.
vu
BAKER
HUGHES
peopl
Baker Hughes.
d we're know
George Vassilellis , Lead Reservoir Eng ineer
As part of our new Reservoir Development
Services group, George works with
customers like you in evaluating their
unconventional h
y
drocarbon assets to hel
p
them improve efficiency and increase
recovery. Learn about his model for shale
resources at www.bakerhug hes.comi george
www.bakerhughes.com
i 2011 Baker Hughes Ir1:orporated. All Rights Rese rve d. 31651
Aill)
MM
Even though every shale formation is different, there
is a growing consensus in the industry that more stages
equal more production, so our clients are continually
requesting increasing numbers of stages per well to
shorten the frac spacing interval, improve fracture effi-
ciency, and increase their production on a per well basis,
Kebodeaux said.
Baker Hughes latest version of the FracPoint EX-C
provides the ability to fracture up to 40 stages in series
with continuous pumping operations using
1
16-in. incre-
ments in ball and seat sizes. In addition, the FracPoint
EX-C system does more than just increase the number
of available stages; it also allows the use of larger ball seats
on wells that do not require a full 40-stage system, which
allows for increased pump rates during the frac and
reduced pressure losses during production.
The FracPoint EX-C system uses a combination of
patented features, which
include double barrel seats
and collapsible ball seats. The
double barrel seat has two
parallel bores that permit a
substantial increase in flow
rate over a single ball seat
when deploying smaller size
balls. The collapsible ball seat
allows the contact area of the
seat to change once the ball
lands, which in turn increases
the load carrying capacity of
the seat and allows the system
to meet the pressures ratings
required. Baker Hughes has
been deploying 24-stage Frac-
Point EX-C systems since Sep-
tember 2009, so the concept
and functional performance
of the tool is proven, Kebodeaux said.
The results of the first completions performed with the
40-stage FracPoint EX-C system have been very favorable.
The company is embarking on its next improvement of
this system with the release of its IN-tallic Frac Balls, using
controlled electrolytic materials technology, which is an
engineered material that provides high strength while
disintegrating in a controlled manner in the presence
of brines and acids.
The company expects to deploy FracPoint EX-C tech-
nology in every basin where high-quantity openhole multi-
stage completions are used. As the industry trends toward
longer laterals, providing more frac stages in less time has
become the goal of service companies like Baker Hughes.
While these initial 40-stage FracPoint jobs have saved our
clients an estimated 5 days per completion over a 40 stage
plug and perf job, the key to delivering real value for our
clients is in increasing lateral lengths and improving frac-
ture efficiency, thereby reducing the spacing between
wells, Kebodeaux said.
Beyond status quo
When Packers Plus began doing openhole fracturing in
2001, the industry believed that 5-8 fracture treatments
could effectively drain a 4,000 ft (1,000 m) horizontal
well, said Dan Themig, President and CEO, Packers Plus.
The companys StackFRAC HD is an innovative approach
that challenged the status quo on what is required to effec-
tively drain tight gas and oil resource plays. The industry
has quickly applied this technology to move to 20 fracture
treatments per well, but the HD systems from Packers
Plusincluding its newly launched QuickFRAC system
are now moving to 30-60 fracs, a number unfathomed
four years ago. We believe this is the future of develop-
ment for shale gas and oil, Themig said.
This technology also applies to conventional plays,
where historically the approach has been downspacing
in drilling patterns from 640 acres to (eventually) 10
acres. StackFRAC HD allows 10-acre drainage patterns
with fewer wells at surface, greatly improving economics,
but also greatly reducing water usage and environmental
concerns.
Unlike conventional cemented casing completions,
which plug natural fractures and attempt to restore con-
nection to the formation with fracturing, the StackFRAC
HD system is designed to allow stimulation of openhole
horizontal wells. This allows the rock to produce from
38
COVER STORY:
Packers Plus QuickFRAC multi-stage batch fracturing system enables simultaneous stimulation of mul-
tiple stages (group) with a single fracture treatment at surface. (Image courtesy of Packers Plus)
w
,
?
?J
^?Tnr
A
V
-4
Our record is undisputed.
At Downhole Products , fai l ure is not an option
because we know you need the right well
completion equipment to get the j ob done the
first time . We re committed to providing better
tools that deliver premium performance and
unparalleled reliability. With vi rtual l y no product
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speaks for itself. Our Zero Fail Commitment
means we will not tolerate failure - and neither
should you. Ensure successful well completion
every time by going with a proven winner.
Downhole Products
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Badentoy Rd
Portlethen, Aberdeen ,
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United Kingdom
+44 1224 784411
U.S.
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Parkway #160
Houston, TX 77032
+1 281 272 6000
www.Downhole .org/zerofail
Asia Middle East
Unit B-10-12
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Megan Avenue II Jebel Al i
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50450 Kuala Lumpur +971 4371 3309
+60 126 85 82 83
Dependability as promised.
TA
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wVl
lI
1'
I
,
40
COVER STORY:
both natural and induced fractures. Production compar-
isons on the two methods show that openhole comple-
tions (StackFRAC) outperform cemented completions
from 25 to 70%, not just in initial productivity, but also
similarly improving ultimate recovery, Themig said.
In cemented completions, the fracture is forced to initi-
ate at perforations, rather than allowing them to initiate in
natural weakness of the rock. StackFRAC HD allows the
fractures to both initiate at a weakness in the rock rather
than at perforations. Thus, it allows the fracture to initiate
and propagate at the same point, greatly reducing tortuos-
ity. In addition, StackFRAC HD allows for accurate dis-
placement of proppant without overdisplacing. We are
seeing a massive shift and acceptance that openhole frac-
turing produces much better ultimate recovery of
resources and in many cases can allow the reduction of
water usage by as much as 50% per stage, Themig added.
StackFRAC HD also greatly reduces the time required to
stimulate a well. Instead of utilizing wireline pump-down
bridge plugs and coiled tubing, resulting in excessive time
to perform fracturing, StackFRAC HD allows a ball to be
launched and pumped downhole on the fly, seamlessly
moving from stage to stage. QuickFRAC has allowed for
even more time savings by fracturing multiple isolated
stages with a single fracture treatment from surface. Our
record using QuickFRAC technology has seen 23 stages
pumped in less than 10 hours, Themig said. Conven-
tional methods treating 2-3 stages per day, would have
taken 7-10 days.
Looking ahead
At the end of the day, there are countless opportunities to
cover the many advances that occur in downhole technol-
ogy. The systems discussed here represent a fraction of the
output from a multitude of engineering teams. By observ-
ing both older and newer ways of improving drilling
efficiencies, the industry will continue to hone current
technologies to improve on very specific parts of the
process and to provide the widest range of applications
throughout the worlds oil and gas producing regions.
a 1 Ret ecfo
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Fundamentals of Drilling Engineering
SPE Textbook Series
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Robert F. Mitchell and Stefan Z. Miska
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42
UNCONVENTIONAL
F
or the past several years, the expression interna-
tional shale development has resided solely in the
lexicon of the analyst. Now, international shale develop-
ment is rapidly moving into the operations sector, with
exploitation efforts under way in South America, Aus-
tralia, Asia, and Europe.
In Europe, Poland is the front runner for unconven-
tional gas production. The success of the shale gas mar-
ket in North America has the worlds attention, and in
Poland there are moves to transfer North American
know how to what could be a boon for the European
gas market.
The prospect
As with any resource play, geology is an important early
indicator of success. In Poland, concessions under devel-
opment are in the Baltic Basin.
According to Lars Hubert,
exploration manager for San
Leon Energy Poland in War-
saw, The Paleozoic shale has a
simple tectonic setting with a
complex burial history. In a
presentation at the Shale Gas
Eastern Europe Conference in
Warsaw in early April, Hubert
characterized the makeup of
Polands unconventional
resource as having a total
organic content (TOC) of 0.7
to 9.9% with a favorable silica
content of 25 to 63% and
porosity ranging from 4 to 8%.
Much of what is known about Polands shale is drawn
from cores and well logs collected more than 30 years
ago in Soviet-era drilling operations. While these have
been useful in determining early potential for uncon-
ventional gas in Poland, the answers garnered from this
data remain somewhat inconclusive. The latest drilling
activity in Poland has focused primarily on science wells
to acquire new logs and core samples from which to
devise further development plans.
The key for most operators in Poland is data, and
BNK Petroleum is no exception, according to CEO Wolf
Regener. All we wanted was fresh rock, Regener said.
We went into this telling Polands Environment Min-
istry we just wanted to drill wells and get samples of the
rock. The only modification we had was that we shot
some cross seismic lines to avoid faults so we could actu-
ally get the samples of the rocks. The company recently
completed coring efforts on its Lebork S-1 well on one
of its Saponis blocks near Gdansk in northern Poland.
Poland poised for
productive shale development
International shale development moves from abstract to concrete.
Tayvis Dunnahoe, Senior Editor
With a number of players ramping up
in Poland, there have been five verti-
cal wells drilled targeting shale in the
Baltic Basin. (Map and images cour-
tesy of BNK Petroleum)
42-47 UnconResource-Poland_42-47 UnconResource-Poland 5/21/11 11:07 PM Page 42
PP
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VALLOUREC & MANNESMANN TUBES
J
Later this year BNK plans to drill on the Starogard
block, offsetting Lane Energy and ConocoPhillips sec-
ond well.
Drilling has gone quickly in Poland. We were at
core point in 22 days. The drilling has been great,
Regener said.
BNK holds an interest in six concessions in Poland,
which total 1.6 million gross acres (1.1 million net)
through its previously held, wholly owned subsidiary
Saponis Investments Sp. z o.o. and wholly owned sub-
sidiary Indiana Investments Sp. z o.o. The company has
drilled two wells and is currently in the process of per-
mitting a third, and ConocoPhillips and Lane Energy
have drilled two wells. PGNiG, Polands state-owned
operating company, also has drilled several wells.
While Poland serves as a test case for European shale,
it remains one option of many. I dont think there is
anything unique here, Regener said. This is another
shale basin; it just happens to be in Poland.
BNK has its own philosophy for moving into Europe.
We want to get into multiple different basins because
we dont know which ones are going to work, he said.
Were just really early in the whole thing, added
Doug Bentley, unconventional resources manager Conti-
nental Europe, Schlumberger. The difference in
Poland compared to North America is if you just look at
the Barnett when they started, you had about 5,000 sq
miles (13,000 sq km) in the Barnett, and you had 11,000
gas wells, he said. Thats before you even really looked
into producing shale. You had all this information read-
ily available.
In the US, shale development occurred more as an
exploitation event, which did not require vast amounts
of exploration to figure the plays out. What we did is
basically went in, drilled wells, and experimented, Bent-
ley said. The issue in Poland is that in the Baltic Basin,
you have five wells and more than 38,600 sq miles
(100,000 sq km). So there is really no data.
The older stratigraphic wells in Poland produced
cores across the shale, and they have been evaluated
with newer technology. The wells, however, were evalu-
ated using Russian 1950s-version log data, which had no
sensitivity to the analysis that companies are attempting
today. We have drilled five new wells since last summer,
Bentley said. With the evaluation of these new wells
ongoing, the impact of new technology in Poland is
starting to show value. With the newest logging tools
and the benefit from new core evaluation we have inte-
grated this data and are now in the process of calibrat-
ing these defined attributes to seismic volumes at this
44
UNCONVENTIONAL
Frac equipment sits on location in Poland.
(Image courtesy of Halliburton)
time. The goal here is to understand how we can define
the best locations to drill, Bentley said.
In North America, shale plays have benefitted from
more than a century of drilling that penetrated many
of these formations in search of conventional oil and
gas resources. The Eastern European craton holds about
15 million potentially prospective acres for shale, which
is roughly five times the size of the Barnett shale in cen-
tral Texas. Until ConocoPhillips started drilling last
summer, a sum total of 20 wells had penetrated the
shale in the region, said James Elston, director, Palla-
dian Energy Ltd. and former CEO of TSX-V-listed
Realm Energy International Corp., another Poland
shale explorer.
For now, shale development in Poland is focused on
acquiring more data.
Drilling present and future
There is a lot of noise around shale in Eastern Europe,
but we are really in an exploration phase right now,
said Mark Swift, area manager for Continental Europe,
Halliburton. The majority of the drilling in the region is
represented as science wells and through efforts to
maintain lease obligations. From a technology stand-
point, it is very similar to what you see back in North
America, or anywhere in the world, when you are doing
exploration, Swift added.
For the next 12 to 18 months, drilling activity will
focus mostly on evaluation. Much of the drilling will
kick off in Q4 with the remainder being done in 2012
and into 2013, Swift said.
For now, drilling equipment has been accessible for
the low level of drilling activity in the region. Equip-
ment is coming this year because theres more activity,
Bentley said.
Poland currently has three partially state-owned
drilling contractors Jaslo, Cracow, and Nafta Pila, with
Nafta Pila providing most of the unconventional rigs.
Canada-based Ensign is planning to move two rigs to
Poland, and MND, based in the Czech Republic, has a
rig working in Poland.
Were using Nafta Pila, which is a local contractor, for
drilling the well, and then just the support services that
we need for shale gas analysis, really, Regener said.
There are enough rigs around to drill these science
wells here in Europe.
As Poland moves into development mode, the demand
for modern, North American-standard rigs that are
built to EU specs should increase. That is how we are
approaching it. Were looking for a small-footprint type
rig that can drill multiple wells from a single pad,
Regener said.
One benefit inherent to Polands future development
exists in the size of individual concessions. You do not
have any lease boundary issues; you have got large leases
so you can orient your laterals, Regener said.
The ability to drill long laterals should make for effi-
cient operations using todays modern rigs. Compared to
US drilling operations such as in Oklahoma where an
operator is constrained to a 640-acre plot, Polands con-
cession size allows for more extension in the well plan-
ning phase. Even though some of the costs are a little bit
higher here, I think eventually we can drill longer laterals
and hopefully get that cost down, closer to what we do in
the US, Regener said.
According to Bentley, Bringing new drilling technol-
ogy into the country has definitely impacted Polands
unconventional development. The first two wells drilled
in the region beat the estimated drilling time by 30%.
Those wells were back-to-back, and they set records for
drilling in Poland in terms of time, he said. Establishing
a new standard in drilling operations has been one of the
key benefits being transferred from North America in
Poland. The drilling technologies implemented in
Poland to date have definitely made a step change in
the delivery of well bores, Bentley said.
45
UNCONVENTIONAL
BNKs Lebork S-1 well performs a coring operation. (Image cour-
tesy of BNK)
Both record-setting wells were drilled to about 10,800
to 11,200 ft (3,300 to 3,400 m) in less than 30 days as
vertical pilot holes where full cores were taken. This is
roughly the same depth of deeper Barnett wells, which
were initially drilled in 30 to 35 days. The individuals
who came to Poland bringing this US standard did it
very well with a very smooth transition, Bentley said,
and not only on a performance basis. These wells were
drilled safely; there was no nonproductive time and no
environmental incidents whatsoever.
The big question for Poland is what rig availability will
look like in a development phase.
I cant speak for operators, but I believe that rig avail-
ability could be a more constraining factor than hydraulic
horsepower down the road, Swift said. With the current
activity, operators have managed to coordinate their
efforts with available rigs, but as the analysis of cores
comes closer to fruition, rig availability could be squeezed.
If the rocks work in Poland, it changes the country,
Elston said. The big challenge lies in drilling. I think
that presents a tremendous opportunity for North Amer-
ican and native European entrepreneurs because the
great thing about drilling is it is not really IP-dependent,
or maybe not as much as the other downhole services
such as wireline and fracing, etc. The accessibility of
drilling to entrepreneurs who are capable of navigating
the regulatory framework for operating equipment in
EU countries makes this sector an attractive investment
should European shale take off in a big way.
I think there are high hopes across the board, but
Poland will be a tremendous opportunity for North
American drillers who can address the different chal-
lenges that exist in Europe, Elston said. Entrepreneur-
ship on the drilling side will be very important.
The road to first gas
While activity is obviously picking up, the question
of when Poland will see first gas remains a subject of
debate. Estimates range from two years to 20, and many
of those in the field prefer not to share an opinion.
In terms of large volumes of gas from shale, perhaps
2020 is a good number, Elston said. There are three
to five years of solid exploration appraisal and drilling
even before the region sees much in the way of its first
pad drilling.
With the prospect of development drilling on the hori-
zon, the question arises about the availability of pumping
equipment for completions work that will be needed.
On the equipment side, I dont see any constraints at
the moment, Swift said. Were this market to take off in
terms of North American-style shale development, then
equipment might become a problem. According to
Swift, there is about 100,000 horsepower available today.
For the moment, the situation is fine, he said. With
nearly 40% of the available horsepower in Europe, Hal-
liburton does not foresee a problem supporting stimula-
tion efforts during Polands exploration phase.
For Schlumbergers part, the company is bringing one
additional operational stimulation fleet (20,000 hp) into
Poland in July. Well be working both crews in the sec-
ond quarter, Bentley said.
As with most of the major service companies, Hallibur-
ton, Schlumberger, and Weatherford are setting up bases
of operation in Europe in preparation for the potential
increase in demand for equipment and manpower as
shale development picks up. The key is flexibility. While
Poland is one of the first to ramp up, there are a number
of targets for shale development in Eastern Europe.
For us it is a corridor because we really dont know
where things are going to happen; its too early, Bentley
said. Warsaw lies in the middle of the corridor. You can go
north, east, or west; you can cover everything from here.
46
UNCONVENTIONAL
Nafta-Pilas Mass
5000 DE drills BNKs
Lebork S-1 well.
(Image courtesy
of BNK)
42-47 UnconResource-Poland_42-47 UnconResource-Poland 5/22/11 12:54 AM Page 46
47
UNCONVENTIONAL
Building for the future
With the land game pretty much complete in Poland,
it is now a question of capital and expertise being
applied. Polands government has made it clear to
companies like BNK that it wants natural resources
to be developed domestically. This has been shown
through a fairly low cost of entry and minimum work
requirements. Perhaps more than manpower and
equipment, the true test for Polands unconventional
shale will be the ease with which companies will be
allowed to operate and do business.
Operations have been smooth in Poland to date. You
are in a different country, so you just have to go through
the learning curve of what you do, Regener said. We
hope that in the future, Polands government can stream-
line things more because it is a longer timeframe.
From an industry standpoint, Polands limited history
of finding and developing oil and gas leads to an unin-
tended benefit of having fewer things to unlearn.
Indeed you do have a blank sheet of paper, Elston
said. This extends to a shortage of infrastructure such as
roads that will be important for transporting equipment.
But the climate in Poland is favorable to paving the way
to a healthy, productive environment.
From an environmental perspective, companies like
BNK are leading the way along with Polands govern-
ment to develop its gas in the safest way. We have made
it clear that we are trying to go about doing things the
right way in terms of environmental standards and try-
ing to do everything that they want and then some,
Regener said. Using best practices and finding ways to
improve on these with each new operation has instilled
confidence in future development. Poland has not man-
dated specific practices, so most operators are using
their North American expertise to carry out drilling
operations safely.
I have said in Germany and I am saying it in Poland
from day one: Small footprints, be a good neighbor, do
it the right way, and water-wise, try to conserve as much
as possible. We understand Europe, Regener said.
42-47 UnconResorce-Poland_La!ot 1 5/23/11 9:18 AM Page 47
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48
UNCONVENTIONAL
U
nconventional gas presents the world with an oppor-
tunity and a challenge. Conventional sources of gas
supply are declining while demand is taking off, driven
by burgeoning emerging markets and the recognition
that gas is a low-cost, low-carbon energy source. Collec-
tively, these dynamics act to increase import dependency
and limit supply security for certain regions.
Unconventional gas, which has helped the US over-
come a similar challenge, is an abundant resource with
tremendous international potential. Companies have
embarked on a global land grab for prospective explo-
ration acreage from Argentina to Poland to China
in an attempt to replicate North Americas success.
Exporting a business model
Unique challenges exist outside of North America.
Higher competition from alternative gas sources puts
pressure on unconventional gas project economics.
Regions such as Europe and Asia have more options,
such as piped gas or LNG from multiple supply points.
Also, economics are challenging due to structural cost
differences, lack of scale, and a limited learning curve.
Spatial constraints make land access a major obstacle.
This is linked to population density. In promising regions
such as Europe (116 people/sq km) and China (140
people/sq km), population density is a lot higher than
in the US (31 people/sq km). Higher population densi-
ties also limit water resources, which are critical for
hydraulic fracturing.
The E&P model adopted in North America will not
always be practical overseas. Operators need a different
modus operandi that includes optimizing drilling and
completions, ensuring environmental sustainability,
and adopting an integrated, flexible, and inclusive
business model.
Optimized drilling and completions
A key determinant of success will be how operators
reduce their footprint by drilling only the highest quality
wells. Optimal well placement can be achieved through
better reservoir characterization that incorporates both
reservoir and completion quality models. A reservoir
quality model relies on petrophysical, petrological,
geophysical, and geochemical data.
Completion quality relies on mechan-
ical rock property, horizontal stress,
and natural fracture data. A combina-
tion of these models across the field
ensures identification of optimal well
locations and trajectories, which ulti-
mately reduces the number of wells
drilled and completed, alleviating
land access constraints, and improv-
ing economics while retaining pro-
duction targets.
Another way to overcome challeng-
ing economics is to increase drilling
efficiency by using technologies that
reduce drilling time and increase
Unconventional gas 2.0:
Unlocking a global potential
Unconventional gas has changed the landscape in North America and could do
the same internationally. However, this new phase brings challenges that require
a different mindset and operating model focused around efficiency,
environmental sustainability, and integrated business planning.
Muqsit Ashraf and Hermes Alvarez, Schlumberger Business
Consulting. Francois Dubost, Christopher Hopkins,
and Cyrille Levesque, Schlumberger
Improved drilling efficiency has significantly reduced the drilling days of two early
unconventional gas wells in Europe. Each of these wells has seen a significant improve-
ment of 30-40% in actual time versus planned time. (Image courtesy of Schlumberger)
48-51 UnconResorce-SLB_La!ot 1 5/22/11 12:56 AM Page 48
reservoir contact by lengthening the wellbore, by apply-
ing logging technologies that ensure optimal placement
in the target zone, and by using drill bits optimized for
shale reservoirs.
Environmental sustainability
Optimal water sourcing and produced water manage-
ment will become a strategic imperative for developing
unconventional gas abroad. This requires innovative
techniques that reduce sourcing needs or allow for
alternative sourcing options to ensure security of supply
by avoiding competition with municipalities. In addi-
tion, produced water must be managed appropriately
through technologies that minimize produced water at
the surface, allow for greater reuse, and provide for
appropriate disposal.
The potential for aquifers to be contaminated by
leaked natural gas or by stimulation chemicals is proba-
bly the biggest fear on the minds of local communities
and regulators. Well design must guarantee that no nat-
ural gas leak occurs and that
aquifers will not be contaminated.
Well integrity can be achieved by
selecting cementing solutions that
constitute a lasting barrier between
the annulus and the formation and
by evaluating the integrity of this
barrier long after the well is drilled
and stimulated.
Lastly, operators need to employ
fracturing fluids that are fully dis-
closed, fully formulated, and fully
functional to meet the technical
reservoir ranges for effective fractur-
ing while complying with regula-
tions. Operators also will need to
employ eco-friendly chemical formu-
lations that assure regulators of the
environmental robustness of opera-
tions. Best-in-class operators will find
the right balance between econom-
ics and sustainability.
Integrated business model
Success in the next phase of global
unconventional gas development
also will hinge on the operators -
ability to manage a business model
that engages several stakeholders
and balances technology, environ-
ment, and economics.
Operators must employ an inclusive approach that fos-
ters relationships with stakeholders. Collaboration with
other operators and service companies will become
increasingly important as activity shifts to more prospec-
tive, higher-risk plays. Collaboration allows operators
flexibility to respond better to uncertainties, to quickly
move up the learning curve, to realize economies of
scale, and to configure the right technology and capabil-
ities. Managing relationships with regulators and local
communities will be critical as well. It will pay to engage
regulators to assure them that operations are environ-
mentally robust. Operators also will have to address local
community concerns by engaging them early in the
process and outlining the extent of operations. Gaining
regulatory and local buy-in will pave the way for long-
term unhindered resource development.
In addition, operators will have to maintain opera-
tional flexibility by establishing internal and external
triggers that allow them to detect economic variations
of their plays. Variations can be driven by factors such as
49
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48-51 UnconResorce-SLB_La!ot 1 5/22/11 12:57 AM Page 49
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geological characteristics, market evolu-
tion, and supply chain constraints. The
management system has to evolve to
ensure flexibility and transparency across
functions, enabling collaborative plan-
ning and execution.
New mindset
Unconventional gas has been the biggest
breakthrough in the oil and gas industry
over the past decade. The world has
found an abundant resource that can
offer competitive economics, supply
security, and a practical opportunity to
materially reduce global carbon emis-
sions. The model needed for succeeding
on a global level will require operators to
rise to the challenge and adopt a new
mindset that balances technology, envi-
ronment, and economics.
UNCONVENTIONAL
Challenges exist that will create hurdles for operators trying to develop unconven-
tional gas abroad. A new approach is needed that balances technology, environ-
ment, and economics. (Image courtesy of Schlumberger Business Consulting)
INVITATION TO BID
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in Santa Rosa and Okaloosa Counties in the western pan-
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SOLICITATION DOCUMENT: The entire solicitation docu-
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52
FRONTIER
EXPLORATION
T
o meet the demands in todays industry for interpret-
ing more data in more detail in less time, technologies
have been developed to move 3-D interpretation from
tools that support viewing the data in 3-D and interpreting
it in 2-D to tools that enable data interpretation in 3-D
True Volume interpretation.
True Volume interpretation enables direct all at once
interpretation of complete 3-D surfaces representing not
just horizons and faults but also salt bodies, channels, fans,
and other geologic surfaces. The result is an interpreta-
tion that is much more accurate and complete since all of
the data in the 3-D volume representing a given structural
or stratigraphic feature are used simultaneously to obtain
the result. It also takes substantially less time required than
traditional methods. This style of interpretation is sup-
ported by a combination of new workflows, new processes,
and new interpretation tools to enable the interpretation
of complete 3-D surfaces in the data volume.
Advances in structural interpretation
The order in which structural elements are interpreted
depends on the geology that is represented in the data
and upon the interpreters understanding of geological
relationships. In all cases, the workflow begins with the
identification of the type of geologic feature of interest
followed by processing to create an attribute volume that
optimizes the imaging and visualization of that type of
feature in the volume. The imaging step is followed by a
3-D surface interpretation step that employs technology
that can range from 3-D autotracking to direct 3-D surface
definition and editing.
Since certain structures can impact the accuracy of
interpretation of other features in a volume, the workflow
initially focuses on the boundaries of salt bodies (if pres-
ent), as these truncate faults and horizons. Voxel process-
ing is applied to the seismic volume to isolate the imaging
of the salt boundaries. The interpreter quickly creates an
initial 3-D surface inside the salt. This initial surface is
then inflated or expanded interactively until it stops on
the imaged salt boundary.
Fault surfaces are imaged primarily as discontinuities
within the seismic data. Automated fault extraction (AFE)
uses a discontinuity or coherence volume as input and cre-
ates a fault probability volume. Faults are imaged in the
fault probability volume with sufficient resolution and sig-
nal-to-noise level to support automatic interpretation of
the fault surfaces. The AFE workflow begins by creating a
discontinuity volume (in this case an edge stack volume)
from the seismic data. AFE is then used to create a fault
probability volume from the edge stack volume. The faults
in the resulting volume are imaged with sufficient resolu-
tion and signal-to-noise ratio to allow the interpreter to
either automatically extract major faults from the volume
or selectively autotrack faults from the volume.
The final step in the structural workflow is horizon iden-
tification. The end result of structural interpretation is
that along with the seismic volume, several attribute vol-
umes and a structural interpretation exist.
Advances in stratigraphic interpretation
The initial interpretation of the structural features in a vol-
ume is necessary to enable imaging and interpretation of
stratigraphic features and depositional systems in the data.
The problem with trying to recognize and interpret depo-
sitional systems in the original seismic volume is that the
structural effects on the seismic data make the deposi-
True Volume interpretation
improves subsurface understanding
New technology allows interpretation in three dimensions.
Geoffrey A. Dorn, TerraSpark Geosciences LLC
FIGURE 1: The green oval in this time slice from the seismic volume
contains an indication of a fluvial channel that intersects the time
slice. Most of the channel cannot be seen because it crosses seven
fault blocks as it crosses the survey. (Images courtesy of TerraSpark)
52-55 Frontier-Terraspark_La!ot 1 5/22/11 1:02 AM Page 52
52-55 Frontier-Terraspark_52-55 Frontier-Terraspark 5/21/11 11:07 PM Page 53
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tional features quite difficult to recognize and interpret.
Figure 1 shows a time slice from the seismic volume with a
segment of a 0.6-mile (1-km) wide channel apparent on
the time slice. Although the channel extends across the
entire volume, it is difficult to interpret and put the pieces
back together because it extends across seven fault blocks
that are shifted and rotated with respect to one another.
This can be remedied with domain transformation.
Domain transformation
The concept of domain transformation is, at its heart,
quite simple. First, the data are interpreted for structural
elements. It is the presence of the structure in the data
that has distorted and displaced the original depositional
systems. These structural elements are then processed to
remove noise. Horizons are trimmed and sealed to faults
and salt surfaces, closing the structural interpretation.
Next, the distortions caused by the structural elements are
removed from the volume, producing a stratal volume
where every horizontal slice represents a paleo-deposi-
tional surface.
Once calculated, the domain transformation can be
used to transform any co-located seismic or attribute vol-
ume into the stratal domain. To illustrate this, a transform
was used to create stratal volumes of seismic amplitude
and three attributes instantaneous amplitude, frequency,
and phase. An edge stack process (an attribute in the
same class as coherence) was applied to the stratal volume
of seismic amplitude to create a stratal volume imaging
the boundaries of fluvial channels. Figure 2 is a single
slice from four co-rendered stratal volumes, where:
Instantaneous amplitude is rendered in blue intensity;
Instantaneous frequency is rendered in green intensity;
Instantaneous phase is rendered in red intensity; and
Edge stack controls the lighting on the surface.
Interpreting depo-systems
The resultant stratal volume clearly images any depositional
systems present in the volume. Channels and fan com-
plexes that were not previously visible in the faulted and
dipping seismic volume become immediately obvious and
can be easily captured in the stratal volume by the same sur-
face imaging and interpretation processes used to define
salt bodies. The interpreted boundaries of these dipping
channels are then transformed back into the structural
domain, restoring the depositional features to their proper
location in the seismic amplitude volume (Figure 3).
Less time, better product
True Volume interpretation delivers fully integrated 3-D
seismic visualization and interpretation at every step of
the interpretation workflow. Enabling direct 3-D surface
interpretation of all structural elements helps geoscientists
work better and more efficiently. Through domain trans-
formation, True Volume enables much more rapid and
thorough recognition and interpretation of depositional
systems and other stratigraphic features. As a result, it sub-
stantially reduces the cycle time of interpretation while
improving the accuracy and detail of the final interpreta-
tion. All of the data volume is used to create complete 3-D
surfaces that most accurately represent all of the geology
represented in the 3-D seismic volume.
FRONTIER
EXPLORATION
FIGURE 2: Below, a stratal slice from a
co-rendered volume of four attributes
instantaneous amplitude, frequency,
phase, and edge stack illuminates
the sharp edges of the channels and
the variation in the channel fill.
FIGURE 3: The image above shows the combined result of inter-
preting the structure and the depositional systems. The 3-D bound-
aries of the channels were interpreted in the stratal volume and
then inverse-transformed back to the structural domain, putting all
of the structural effects back in the interpreted channel bound-
aries so they are properly located in the original seismic data.
52-55 Frontier-Terraspark_La!ot 1 5/22/11 1:03 AM Page 54
52-55 Frontier-Terraspark_52-55 Frontier-Terraspark 5/21/11 11:07 PM Page 55
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FRONTIER
EXPLORATION
S
urface seismic velocities from compressional (P)
wave energy are influenced by the compaction of
clastic sediments. Pore pressure affects the compaction;
therefore, changes in formation velocity can be cali-
brated to changes in pore pressure, assuming there is
no change in lithology. Velocities derived from surface
seismic data can provide an indirect way to predict pres-
sure in the subsurface before drilling.
Two scenarios applied this concept. In Area 1, five
wells with logs of varying quality were available to cali-
brate the velocity from 3-D prestack depth migration;
however, pressure prediction profiles were needed
closer to these wells. Area 2, approximately 36 miles
(60 km) northwest of Area 1, has no available well data.
Pressure prediction from well data
The initial step checks the behavior of the sonic log veloc-
ities encountering the pore pressure in existing wells. All
of the available well data of interest in Area 1 were col-
lected for the initial pore pressure calculation. The first
step was to establish the vertical stress or overburden gra-
dient (OBG) from integrating the available density logs.
The vertical stress for the first 1,640 ft (500 m) below the
mudline was calculated using the Miller empirical for-
mula. Pore pressure prediction for the initial input wells
was calculated using calibrated pressure models employ-
ing the velocity-effective stress relation.
The matrix stress ratio is determined from the leak-off
test measurements for calculating the fracture gradient.
These values normally are estimated from the pressure-
versus-time graph. This method makes calibration more
difficult because of the calculation procedure. In this
project, the sonic log data were used as an alternative.
Depth migration velocities
The final velocity model from prestack time processing
was used as the initial model-building process for the
tomography inversion of the prestack depth migration.
The velocity model output of the last iteration from the
tomography inversion was used as input to the residual
move-out analysis.
A high-density simultaneous velocity analysis technique
was used to pick a high-density V
RMS
and (effective eta)
field. This helps flatten the events to a higher incidence
angle than the output from a second-order stacking veloc-
ity correction. This automated velocity analysis was per-
formed using a grid of eight inlines by eight crosslines at
300 ft by 300 ft (100 m by 100 m). An angle mute of 50
degrees was applied on the input gathers.
Automatic velocity-picking processes generally are
noisy because of high-frequency picking, so geostatistical
filtering is required for pore pressure prediction. To
remove the noise in the velocity cube, the velocity vol-
ume is decomposed into two components. The low-fre-
quency component or trend cube should preserve the
structural component of the velocity, and a residual
cube should preserve the fine-scale variations and noise.
Such decomposition has the following advantages:
The residuals are stationary, which is suitable for the
condition to perform factorial kriging; and
PSDM yields accurate
pore pressure prediction
In a case study from the Caspian Sea, accurate and detailed velocity analysis
from a prestack depth migration was adapted to calculate accurate
pressure prediction in an undrilled area.
Hazim H. Al-Dabagh, Lukoil Overseas UK; and
Norbert van de Coevering, CGGVeritas
The seismic velocity pressure prediction compares to the log pre-
dictions in the old wells in Area 1. (Images courtesy of Lukoil)
56-57 Frontier-Lukoil_56-57 Frontier-Lukoil 5/21/11 11:08 PM Page 56
The structural component of the velocity is preserved.
Factorial kriging was performed on the residuals to remove the noise.
The final filtered velocity cube is the sum of the filtered residuals and the
trend cube.
Interval velocity computation
The seismic velocity field (RMS) has to be converted to interval velocity to be
used for pore pressure prediction. Normally, the regularly sampled velocity
field (in time) is converted using the Dix approximation. This technique is
known to produce some instability; to preserve as much information as possi-
ble, a small sample rate has to be used. This new final interval velocity cube
in time domain was considered as an attribute that preserves the velocity vari-
ations due to pressure influence. It was converted to depth using the same
average velocity field from prestack depth migration that was used for the
depth conversion of the newly imaged seismic data. In this way, the consis-
tency of the depth information remains the same for the velocity attribute
and the seismic interpretation.
Velocity calibration, pressure prediction
New seismic interval velocities were cross-plotted with the velocities from the
sonic logs of the wells in Area 1. Velocities from the wells with stability prob-
lems deviate dramatically from the regression line. The regression was
improved by removing the problem wells. To improve the correlation further,
the residuals between the seismic and well velocities were computed and
kriged in 3-D. These residuals then were added to the initial seismic velocity
field. This method was tested using a kriging radius of three and six miles (5
and 10 km). One well was dropped from the kriging process to serve as a blind
well test to give more confidence in the process. The good correlation with the
blind test was the basis for applying the kriging with a radius of three miles.
A calibrated Gardner relation was derived based on the well data to esti-
mate the density from the P-wave velocity. This new calibrated interval veloc-
ity cube was converted to density after a first-order regression was applied in
the correlation between the wells density logs and the derived density. The
resulting equation then was applied to the seismic density cube to perform
a residual calibration. Subsequently, the OBG was calculated. The correlation
of the OBG from seismic and OBG from calibrated seismic density at the
wells was examined. This final residual calibration improved the fit to the
OBG from the original well densities as well as the OBG from the composite
density function of the stability problem wells. This volume was used in the
final pressure volume calculations.
The normal compaction curve (NCT) was computed on the same criteria
observed from the well logs. The interval velocity cube was scanned to cali-
brate the NCT curves on a defined grid and interpolated to cover the whole
final volume grid. This scanning process consists of extracting the velocity
trace at the selected locations and defining the best lambda parameter for
the Miller equation.
Good seismic data quality combined with good data processing and
understanding of the geological model can achieve accurate pore pressure
prediction in frontier areas. A robust and powerful workflow for velocity
model building for pore pressure computation predicts pore pressure in
such areas.
EPmag.com
READ MORE ONLINE
There is more
to the story
57
56-57 Frontier-Lukoil_56-57 Frontier-Lukoil 5/21/11 11:08 PM Page 57
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58
LWD/MWD
F
or developers of US shale plays, economic viability
depends on technologies and methods that can, not
only enhance understanding of complex, self-sourcing
reservoirs, but also maximize operational efficiencies at
each stage of development. Accurate, real-time data from
logging while drilling (LWD) can play an important role
in identifying stratigraphic sweet spots, placing the well
within the target interval and positioning frac stages to
maximize production rates and recovery.
Unique attributes drive unique approach
Shale plays are unique in that they serve as both the
source rock and reservoir rock for hydrocarbons. They
tend to cover large areas and lack the gas- and oil-water
contacts that characterize conventional reservoirs. They
exhibit lower permeability and a larger content of organic
matter. Unlike conventional reservoirs, where matrix
porosity is the primary mechanism for gas storage, shale
reservoirs also contain significant amounts of gas adsorbed
onto the organic matter (kerogen) and mineral surfaces.
While the presence of hydrocarbons in organic shales
often is pervasive, the challenge is to identify the so-called
sweet spots, where favorable parameters such as thickness,
porosity, permeability, organic content, mineralogy, brittle-
ness, natural fracturing, thermal maturity, and gas content
come together, and then match those parameters to the
right drilling, completion, and stimulation methods and
technologies to optimize economic production.
The depositional environment of most organic shales
results in considerable textural, compositional, and geo-
mechanical heterogeneity. The thinly-bedded nature of
the deepwater deposits and the tectonic forces applied
during the subsequent burial often result in significant
petrophysical and geomechanical anisotropy. Abrupt
changes can occur over short vertical and horizontal
distances, resulting in localized changes in permeability
and brittleness that can help explain significant differ-
ences in production rates between adjacent wells.
For these reasons, defining and understanding the dif-
ferences between (and even within) shales is more impor-
tant to successful development than identifying their
similarities. This understanding requires that conventional
formation evaluation technologies be enhanced with spe-
cialized systems and services. Whereas geology, petro-
physics, and geophysics comprise typical formation
evaluation methodologies for conventional reservoirs,
analyses of mineralogy, geomechanical, and geochemical
properties must be added to the mix for shale plays to
increase understanding of critical properties such as rock
strength, stresses, total organic content (TOC), and ther-
mal maturity. Many geoscientists concur that, in shale
plays, geometry is as much an issue as gas content, natural
storage capacity, and the rocks deliverability.
Learning from LWD
Economically viable shale development requires a deli-
cate balance between controlling costs and optimizing
production over the life of the reservoir. While the pri-
mary focus of well construction is on wellbore placement
and optimizing the completion, success depends on
Real-time azimuthal gamma ray LWD
logs optimize sweet spot detection
LWD improves recovery and economics at each phase of shale development.
Doug McGregor, Weatherford International Ltd.
Real-time azimuthal gamma ray LWD logs and borehole
images help determine dip angle and detect bed boundaries
that enable geosteering engineers to keep the well in the
sweet spot throughout long lateral sections. (Images courtesy
of Weatherford International)
58-59 LWD-Weatherford_58-59 LWD-Weatherford 5/21/11 11:08 PM Page 58
understanding the geological, geomechanical, and petro-
physical properties of the reservoir and how these impact
drilling, completion, and stimulation operations.
LWD is used to help characterize potential reservoir tar-
gets and to provide critical information for optimizing well
placement and evaluating rock properties for fracturing.
The real-time nature of LWD measurements means criti-
cal information can be provided to well teams as they are
drilling, thus making it crucial for geosteering through
the sweet spot and keeping it there, while reducing non-
productive time (NPT).
A conventional triple-combo LWD suite consists of
gamma ray, resistivity, azimuthal density, and neutron
porosity sensors. The data from these sensors are used to
determine petrophysical properties such as lithology and
porosity, while real-time borehole images provide forma-
tion dip information and facilitate proactive geosteering
to place the wellbore in the optimum stratigraphic posi-
tion. LWD is integrated into the bottomhole assembly with
a rotary-steerable system (RSS) for geosteering.
In a number of shale plays, such as the abundant Mar-
cellus and Eagle Ford, challenges exist that cannot be
properly addressed with basic sensors. The Marcellus, for
example, is approximately one-half the thickness of the
Barnett, with lower gas content. It is highly folded and
faulted, and poses additional challenges by its proximity to
large population centers in the northeast US. Local varia-
tions in mineralogy, TOC, clay type, and thermal maturity
also impact drilling performance, well placement, and
fracture design. The Eagle Ford in south Texas is unique
in that it produces natural gas, oil, and condensate. Its
geology and geochemistry are highly variable, particularly
with regard to pore pressure, degrees of natural fractur-
ing, and brittleness, which increases significantly across
the play in relationship to local increases and decreases in
clay and calcite content.
Enhancing understanding
Achieving the degree of geological and petrophysical
understanding necessary to sustainably develop prolific
but highly complex plays like the Marcellus and the Eagle
Ford requires additional information with advanced LWD
sensors, such as spectral azimuthal gamma ray and sonic.
Real-time azimuthal gamma ray LWD logs and borehole
images help determine dip angle and detect bed bound-
aries that enable geosteering engineers to keep the well in
the sweet spot throughout long lateral sections. As the
industrys only spectral azimuthal gamma ray LWD sensor,
Weatherfords SAGR tool also provides potassium, ura-
nium, and thorium measurements for real-time TOC eval-
uation, as well as clay content and typing. The common
correlation of LWD-measured uranium content with kero-
gen volume, TOC, and gas-in-place provides a new real-
time dimension for steering horizontal wells into the most
productive part of the formation and evaluating the pro-
duction potential of lateral shale wells. With this advanced
petrophysical information, well trajectories can be pin-
pointed to enable successful selective zonal fracturing
that can reduce stages and costs.
Sonic LWD sensors such as the ShockWave sonic tool
provide real-time seismic time-depth correlation and pro-
vide rock mechanical properties, including Poissons ratio
and Youngs modulus, which are key to positioning frac
stages for optimum results, planning the hydraulic frac-
ture operation, and modeling production behavior, even
in acoustically and mechanically anisotropic formations.
Balancing cost and technology
As with other oil and gas play types, economic viability and
sustainability of shale plays is a balancing act. The differ-
ence is shales have lower margins than other play types.
Shale play economics also are impacted by the fact that
development programs must not only enable prolific ini-
tial production rates, but also must foster transition to
maximum EUR from low-decline producing wells with
typical life expectancies that can exceed 30 years.
Sustainability requires continuous efforts to improve
efficiencies in drilling, completion, and fracturing opera-
tions while reducing NPT. LWD is proving to be a key
enabling technology for creating and maintaining the
shale cost-technology balance.
The SAGR
LWD sensor provides
potassium, uranium, and
thorium measurements for
real-time TOC evaluation, as
well as clay content and typing.
LWD/MWD
59
58-59 LWD-Weatherford_58-59 LWD-Weatherford 5/21/11 11:08 PM Page 59
60
LWD/MWD
T
he acoustic properties of rock formations, such as the
velocity and rate of attenuation of different modes of
sound waves, are closely related to rock type and forma-
tion fluid and can provide useful information for reser-
voir evaluation. This information can be provided using
sonic logging. Obtaining acoustic measurements while
drilling, combined with real-time drilling geomechanics
evaluation, provides additional benefits, including corre-
lation with surface seismic and monitoring of pore pres-
sure anomalies. Sonic LWD was introduced in the 1990s,
enhancing real-time support of the drilling process and
also making sonic data more available in highly deviated
wells where wireline logs can be difficult to obtain.
Multipole sonic measurements
Early sonic LWD tools used omni-directional monopole
transmitters and receivers to measure compressional (P-
wave) slowness. Monopole sonic tools also can deliver
shear (S-wave) slowness data in a fast formation but are
unable to make such measurements when formation
slowness is lower than mud slowness, as is often the case
when drilling soft sediments in deep water. In such situa-
tions, a quadrupole tool is needed to provide shear
measurements while drilling. The SonicScope multipole
sonic-while-drilling service from Schlumberger com-
bines high-quality monopole and quadrupole meas-
urements to deliver robust compressional and shear
slownesses in any environment.
Robust real-time compres-
sional and shear slownesses are
fundamental to pore pressure
monitoring and wellbore stabil-
ity evaluation, especially impor-
tant for deepwater drilling. This real-time geomechanical
evaluation helps to properly evaluate the pore pressure
window so that mud weight can be adjusted to mitigate
the risks of wellbore instability and kicks. The same robust
real-time data can be used for sonic-to-seismic ties (if the
seismicVISION tool is in the same BHA) that allow bit-on-
seismic positioning and minimize well placement and cas-
ing positioning uncertainty. In addition, a while-tripping
mode provides multi-pass analysis and top-of-cement
(ToC) evaluation. Reliable measurements of compres-
sional and shear velocities (V
p
and V
s
) are useful in cali-
brating advanced seismic processing and interpretation
techniques, such as amplitude versus offset (AVO) model-
ing and estimating V
p
/V
s
and Poissions ratio, which can
indicate the presence of gas.
The use of quadrupole acoustic logging to determine
shear velocities in slow formations uses an inversion
method that takes into account the dispersion of the
quadrupole mode, including the effects of the tool pres-
ence, which are largest in smaller boreholes where the
tool takes up the largest percentage of hole volume. The
quadrupole shear inversion involves careful and well-vali-
dated modeling of the tool acoustics.
At work in the GoM
The 4.75-in. multipole sonic tool was used while drilling
a deepwater US Gulf of Mexico (GoM) well where shear
slowness ranged from 150 to above 250 s/ft (Micro sec-
onds/feet) and, consequently, monopole shear meas-
LWD tool provides reliable shear
slowness measurements
A robust inversion methodology applied to high-quality wideband quadrupole LWD
waveforms from a GoM well provides useful information for reservoir evaluation.
Jean-Marie Degrange and David Scheibner,
Schlumberger; Ferdinanda Pampuri and
Mauro Pelorosso, Eni E&P
A schematic of the multipole sonic tool shows the different types
of measurements made possible by the SonicScope tool.
(Images courtesy of Schlumberger)
60-64 LWD-SLB_60-64 LWD-SLB 5/21/11 11:08 PM Page 60
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62
urements were only possible in limited depth intervals.
The well was drilled using the PowerDrive rotary steer-
able system with a 5.75-in. PDC bit and heavy (15.7 ppg)
oil-based mud to mitigate a challenging pore pressure
environment. The well had 7-in. liner to 15,073 ft (4,597
m) measured depth (MD). ROP was generally 20-40
ft/hr (6-12 m/hr), and drillstring rotation was 90-120
rpm. The logged interval started at an inclination of 23
degrees, dropping to 9 degrees at TD.
In addition to the SonicScope 475 tool, the bottomhole
assembly included an ImPulse integrated survey, gamma
ray, resistivity, and telemetry MWD tool; VISION pressure-
while-drilling (VPWD) sub; and a 7-in. reamer to increase
the well control. The reamer was placed just above the
multipole sonic-while-drilling tool, which increased noise
in the logging environment; however, proper modeling of
the drilling assembly and parameters mitigated the effects
of this noise and enabled high-quality P and S data to be
measured. The target was a Lower Pleistocene delta-
sourced sand that had re-deposits into previously cut
channels or depressions on the outer slope. The predom-
inant reservoir rock types were laminated, moderately
well sorted, and characterized by inter-bedded silty-sand-
stone facies. The interval above the reservoir was predom-
inantly shale.
Data acquisition
The multipole sonic-while-drilling tool had a single
wideband transmitter in four quadrants to enable mono-
pole or quadrupole firing. The receiver array consisted
of 48 sensors in a 4 x 12 arrangement with four sensors
around the tool 90 degrees apart at each of the 12 spac-
ings. The nearest receiver station was 7 ft (2 m) from
the transmitter, and the inter-receiver spacing was
4 in. To provide the best acoustic quality, the collar
structure was designed to provide as much uniformity
and azimuthal symmetry as possible between the trans-
mitter and receivers and along the receiver array.
Received signals were digitized at the receiver sensors
to reduce electronic noise and crosstalk. Small inter-
receiver spacing, clean acoustics, and electronic noise
reduction all enhance the ability to provide real-time
monopole compressional and shear slowness. The
monopole slowness-time-coherence (STC) plane peaks
were sent uphole, providing a real-time QC capability.
These continuous compressional data were used to
enable pore pressure monitoring and remote support
by a team of drilling and engineering experts in a
Schlumberger Operations Support Center (OSC.)
The downhole system included 1 GB of waveform
recording memory. After more than 10 days of opera-
tions, drilling more than 1,800 ft (548.5 m) in one bit
run, the recorded multipole data were analyzed and
processed by data services experts.
P and S slowness
The monopole compressional data were clear and
coherent, ranging from 90 to 110 s/ft. By contrast, the
monopole shear data were weak and highly attenuated
across the array, even in the fastest intervals near 165
s/ft and missing in much of the upper section of the
log. Shear slowness was accessible for only 25% of the
1,800-ft (550 m) interval with monopole mode.
Quadrupole data showed high-signal quality,
and the shear measurements as slow as 250
s/ft were more continuous and coherent
than from the monopole. The quadrupole
shear slowness compared well to the monopole
where monopole shear was available. The com-
bination of high-fidelity monopole and quadru-
pole LWD sonic acquisition and dispersive
processing produced a continuous shear log
where the monopole shear was weak or absent.
An important component of the quadrupole
processing was a suite of QC logs that allowed
aspects of the dispersive processing results to
be critically evaluated. In addition to helping to
LWD/MWD
This image shows gamma ray and monopole and
quadrupole sonic data acquired over a 1,800-ft inter-
val while drilling.
evaluate the slowness estimates,
the dispersion plots helped pro-
vide evidence of tool eccentering
and near-borehole slowness alter-
ation when present in isolated
intervals. The real-time compres-
sional data were used for real-
time pore pressure monitoring,
well correlation, and quick-look
formation evaluation analysis. P
and S memory slowness were
used to calibrate seismic AVO
analysis and help compute the
mechanical earth model (MEM)
to assist completions design.
ToC evaluation
In addition to delivering reliable P
and S data, the multipole sonic-while-drilling service has
a fast-logging multimode for multipass analysis and ToC
evaluation. It can be run while drilling and pulling out
of hole in all acquisition modes at up to 1,800 ft/h
(548.5 ft/h) with 6-in. sampling. ToC identification is
achieved by qualitatively processing the casing arrival
amplitude. If the casing or liner is not properly
cemented, the poor bonding results in acoustic ringing
of the casing, causing higher amplitude. Under correct
bonding conditions, the casing vibration is acoustically
transparent, and the formation compressional data is
measurable. While not as accurate as wireline cement
bond logging quantitative services, this LWD technology
allows extreme conditions such as free or well-bonded
pipe to be logged qualitatively.
ToC identification was provided for the GoM well at
no additional rig time cost while pulling out to surface
after drilling the openhole section. The tool was
switched to a fast acquisition rate using a dedicated
downlink command. The data were then analyzed to
provide casing amplitude and associated interpretation.
New insights
The new multipole sonic-while-drilling service provides
multipole measurements to deliver compressional and
shear data. Robust strategies for handling and process-
ing acoustic data, coupled with extensive modeling,
ensure a predictable response in the sand-shale forma-
tions. The information delivered by the new service pro-
vides insights for improving drilling optimization,
formation evaluation, and completion design.
Acknowledgements
This article is based on a paper presentation at the SPWLA
51st Annual Logging Symposium held in Perth, Australia,
June 19-23, 2010. The authors thank Eni for permission to
publish the data used in this study.
63
LWD/MWD
ToC analysis was performed while pulling out recorded with a fast acquisition rate.
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ti I
1
T
he ability to see downhole in subsea production wells
to monitor and measure pressure and temperature
could potentially prevent a catastrophic event, as well
deter sub-optimal gas lift design.
For operators, the ability to have an eye in the well
annulus where previously it was not possible to provide
positive confirmation of the pressure barriers integrity
online is something that in todays ultra-sensitive industry
environment can be a welcome addition to the portfolio.
It is also something that government regulatory agencies
are likely to pay particular attention to with increased
global focus to improve well integrity and meet tighter
safety and environmental protection requirements.
This solution is the result of a long-term development
project to produce an instrument that measures online
and in real time previously inaccessible pressure and
temperature information behind the casing in subsea pro-
duction wells and injection wells. The Roxar Downhole
Wireless PT Sensor System Annulus B was launched at
this years Offshore Technology Conference in Houston.
Emerson Process Managements new Roxar downhole
sensor system, developed over several years as part of a
joint industry project with Statoil, could represent a signifi-
cant step forward in protecting well integrity.
A better solution
Conventional land wells and offshore wells with a dry
wellhead have valves that provide operators with easy
access to the B annulus to check the pressure and make
any necessary adjustments. Not only is this useful for gas
lift purposes, it is a simple way to ensure no gas is leak-
ing into the annulus from the formation or because of
poor cementing.
This is of course not an option on subsea wells, where
there often is no access to the B annulus following the
landing of the casing hanger and sealing and cementing
of the casing. This is due to specifications for subsea
wells with a
requirement not
to breach a pri-
mary well bar-
rier (i.e ISO
13628-4 and
API17D).
This can result
in potentially
hazardous
TESTING AND PRODUCTION
MANAGEMENT
New monitoring tool
provides subsea reassurance
A downhole sensor system that monitors temperature and pressure in the
B annulus will help detect gas leaks.
Mark Thomas, International Editor
65
The Roxar Downhole
Wireless PT Sensor
System Annulus B will
be able to directly
measure pressure and
temperature behind the
casing in subsea pro-
duction wells. (Image
courtesy of Emerson
Process Management)
65-67 Testing-Roxar_65-67 Testing-Roxar 5/22/11 12:21 AM Page 65
situations, especially during workover operations, where
uncontrolled gas can escape at the surface. In a worst-
case scenario, failed barriers in the casing systems could
result in a shallow gas blowout with significant safety
implications.
Instruments capable of regularly monitoring online
and detecting any variations in pressure behind the cas-
ing can provide early warning of these conditions and
allow intervention and other remedial actions to be
planned and implemented in a timely manner. The
instrument also has an HSE application in verifying the
integrity of the B annulus. Subsequent completions can
benefit from a more accurate model prediction.
The tool also will negate the sometimes excessive over-
dimensioning of casings that takes place to compensate
for worst-case scenarios.
Additionally, the sensor system can provide operators
with significant cost savings previously incurred in shutting
in wells due to a limited ability to verify barrier integrity.
Protecting subsea well integrity
The new wireless PT Sensor System and its permanent
monitoring capabilities will give added certainty to the
well integrity monitoring process as well as valuable input
during well trouble-shooting.
Terje Baustad of Emerson Process Management
described the system as representing a real step change
in protecting subsea well integrity, as it tracks pressure in
an area which was previously off limits for all operators.
The new wireless instrument attaches to the same cable
as the reservoir monitoring gauges and can detect varia-
tions in pressure behind the casing string. It will provide
early warning of these conditions and allow intervention
or other remedial actions to be planned and implemented
in a timely manner, he explained.
For oil and gas operators planning subsea production
or injection wells and looking for improved well integrity
monitoring, and for government regulatory agencies over-
seeing safety and environmental protection, the Roxar
Downhole Wireless PT Sensor System represents a mile-
stone moment, Baustad said.
The system monitors the B annulus pressure and tem-
perature without any degradation to the original barrier
element consisting of the A casing system and can be
retrofitted to the monitoring system design of current
subsea systems.
The system consists of an integrated downhole network
that carries signals from the wellbore to the monitoring
system with a downhole network controller card placed in
the subsea structure and connected to a -in. electrical
cable coupled to a tubing hanger penetrator and up to
32 sensors distributed through the completion string.
Other key components of the system include a wireless
reader, a wireless PT transponder and antennae to moni-
tor activity in the B annulus, and a transponder and
reader carrier. The system is accurate to +/- 2.5 psi -
+/- 0.18F.
It also is qualified to last for a minimum of 20 years at
temperatures up to 302F (150C) and pressures up to
10,000 psi.
Based on an electronic wireless system, where the signals
and power are transmitted using induction technology
applying electromagnetism, the system ensures a long life.
This lifespan is far longer than battery-based solutions,
which also have temperature restrictions. Because of the
passive nature of the meter module, the unit can be
turned off to prolong its operational life.
The power is transferred from a section in the produc-
tion tubing. All that is required during installation is a part
on the casing that is run like a regular casing joint. The
66
MANAGEMENT
Outstandi
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completion with the receiver in the tubing is run like
any other regular completion.
B Annulus project work scope
and conclusions
The scope of the project was to
address well integrity issues and pro-
vide an instrument that could moni-
tor the B annulus pressure and
temperature without degradation to
the original barrier element consist-
ing of the A casing system. The pro-
posed instruments also had to be
able to greatly increase the opera-
tors ability to verify the integrity of
the barriers throughout the well life.
Due to the position of the device as
part of the casing string, several
other issues had to be addressed:
The components and the system
had to be qualified to last for a
minimum of 20 years at tempera-
tures to 302F (150C) and pres-
sures to 10,000 psi;
The system could not make the
well barriers less reliable;
It had to be possible to retrofit
the monitoring system to the
present designs of subsea systems;
The system needed to be able to
monitor pressure and tempera-
ture in both the A and B annuli;
It had to be possible to read the
sensors at any time; and
It had to be possible to install or
retrofit the system without mak-
ing any changes to the existing
control systems.
Phase 1 was a feasibility study in
2005, followed by a development
agreement in 2007.
A steering committee was also set
up to sponsor the process, which
included representatives from
Roxar, Statoil, and other sponsors
and a representative from Det
Norske Veritas, who acted as
observer. Regular meetings took
place throughout the design and
qualification process, and all mem-
bers are currently involved in seek-
ing/selecting suitable pilot wells for installation follow-
ing a rigorous qualification process.
Final qualification testing for the new tool will take
place this year, and further longevity testing will con-
tinue into 2012.
MANAGEMENT
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68
UNCONVENTIONAL:
MONTEREY
I
ts not unusual for explorers to chase a prolific
onshore play offshore. In the case of the Monterey
shale in California, the opposite occurred companies
producing from the shale offshore decided to chase it
onshore.
Thus began the exploitation of what is arguably the
largest shale play in the US the Monterey shale.
The Monterey is not an unknown concept. Production
from the shale actually began in the Santa Maria Basin
in 1900. But its potential as a source rock outshone its
reservoir rock potential for decades as companies began
developing such mammoth fields as Midway-Sunset, Bel-
ridge South, Kern River, Cymric, and Elk Hills. It is esti-
mated that 38 Bbbl has been produced from fields
relying on the Monterey as source rock.
Now operators are starting to take a serious look at the
Monterey and at California, which has a tremendous
amount of undeveloped potential. The reasons for this
lack of development are many, according to Michael G.
Edwards, vice president of corporate and investor rela-
tions for Venoco Inc. For one thing, California is proba-
bly the only state in the Lower 48 to be dominated by
the majors. These companies still operate fields like
Midway-Sunset, Belridge, and Kern River, but they
havent been doing much wildcatting in their fields to
tap deeper targets. California also doesnt have a lot of
public land, which makes leasing much more difficult.
And it has a bit of a reputation.
I think theres a perception that California is at
least a different place to operate if not a difficult place,
Edwards said. That perception keeps a lot of independ-
ents away.
Not your average oil-prone shale
The Monterey shale is rather atypical of the types of
shales found elsewhere in the country. For one thing,
its much younger, only about five to 17 million years old
compared to other shales that are around 300 million
years old. This means that the shale is in the peak oil
generating window.
Its also quite thick and not at all homogeneous. Its
been characterized as a large deposit of diatomaceous
material. At shallower depths it has very low permeabil-
ity and needs stimulation to recover oil. Further down,
as temperature and pressure increase, the shale
becomes more brittle and contains more natural frac-
tures. Ultimately it evolves into a quartz phase, and any
part of the shale may contain sandstones as well.
Monterey shale
Californias sleeping giant?
Its young, thick, and structurally and lithologically complex. But the Monterey shale
is quickly moving past the science project stage.
MONTEREY SHALE
Quick Facts
Thickness 500-6,000 ft
Depths 7,000-14,000 ft
Porosity 13%-29%
Oil saturation 61%
TOC 5%
Original oil in place 84 MMbbl/section
EUR 3.1 MMbbl/section
Monterey Operators
Occidental: 873,000 net acres
Venoco: 158,000
Plains Exploration: 86,000
Newfield Exploration: 14,000
Berry Petroleum: 6,500
Field Production
Sockeye offshore: 17 MMbbl
South Ellwood offshore: 72 MMbbl
Orcutt onshore: 175 MMbbl
Elk Hills: 86 MMbbl
North Shafter: 13 MMbbl
Source: UGcenter.com
Updated 03/29/2011
68-73 Uncon-Monterey_68-73 Uncon-Monterey 5/21/11 11:08 PM Page 68
Characterizing this hodgepodge
of lithologies is further compli-
cated by the fact that the Mon-
terey shale is in a very tectonically
active area. The plus side here is
that this provides the potential for
more hydrocarbon traps.
Because of its age and thick-
ness, Edwards said there really
isnt an analogous shale else-
where in the country. It was
right on the coast, so there was
erosion and runoff intermixed in
the beds, he said. There are
also some barriers like small
islands that kept some of the sed-
iment from going farther, so
beyond that is almost pure
diatoms raining down and form-
ing the structure. Theres defi-
nitely some variability depending
on where the organic matter was
deposited.
The Monterey is not likely to
see the types of multi-stage fracs
performed in other shale plays,
with operators preferring large-
volume hydrofluoric acid jobs. Edwards said that Occi-
dental Petroleum (Oxy) published a white paper several
years ago stating that its engineers didnt see an eco-
nomic benefit to hydraulic fracturing. Weve tried some
fracs, he said. We havent concluded that the model
doesnt work, but we believe acid jobs will yield better
results overall.
Overall, the Monterey shale is estimated to contain
more than 400 Bbbl of original oil in place.
Tapping the potential
Edwards said that Venoco has been producing from the
Monterey horizon offshore since 1997. In its Sockeye
field it produces from a deeper part of the Monterey
called the M4.
We decided that wed do some recompletions in
those wellbores into a zone called the M2, he said. We
tested anywhere from 30 to 80 bbl per day from the ver-
tical recompletions. We then decided to drill a horizon-
tal into that interval. We had IPs of 150, 600, and 800
bbl per day. These were unstimulated, open-hole com-
pletions, he added.
Not surprisingly, these IPs piqued the companys inter-
est. Our geologist said, If you like those results, you
can find that rock in lots of places onshore. This
kicked off an investigation of available acreage.
Venoco had several criteria for choosing which
acreage to lease. We wanted areas that are easy to oper-
ate in, Edwards said. The LA Basin has a lot of poten-
tial, but there are 10 million reasons why you dont want
to spend your time there.
Another requirement was to find lighter oil, not the
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Basi ns
Sour ce: Adapt ed f r om Venoco I nc.
69
A world-class source rock and a pro-
ducing reservoir, the Monterey shale
is present in Californias Santa
Maria, Ventura, Los Angeles, and
San Joaquin basins. (Map courtesy
of Oil and Gas Investor)
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heavy oil thats being steam-flooded in the Kern
River field. The team studied well data from some of
the 17,000 wells that have been drilled in the region.
From this information it was able to map the top and
to some extent the thickness of the structure and to
identify areas that were likely to have lighter oil, above
25 gravity.
Another criterion was to be close to infrastructure. In
the San Joaquin Basin, Edwards said, Venocos opera-
tions are close to infrastructure in terms of pipeline
availability and disposal wells.
Venoco also looked for acreage that included a struc-
tural component. We think we have a better chance of
finding accumulations where we can identify some struc-
ture, Edwards said, adding that Venoco and Oxy are
jointly funding a 500-sq-mile (1,295-sq-km) 3-D seismic
survey, the largest survey ever conducted in California.
It expects to have all of the data in-house early this
summer.
That is going to help us as far as having more control
over where we put our wells and where there might be
faults or dipping beds, he said. We also think we have a
good chance of identifying some conventional opportu-
nities with that seismic, both above and potentially
below the Monterey. He added that about 86,000 of
Venocos acres are within the survey boundaries.
Finally, reservoir depth is an issue. Edwards said the
company is looking for enough reservoir pressure to
move the oil through the rocks, so it looks for acreage
in which the Monterey lies 6,000 to 12,000 ft (1,830 to
3,660 m) below the surface. This is not as easy as it
might seem Venocos offshore platforms drill the
Monterey at 3,000 to 5,000 ft (915 to 1,525 m),
but less than 3 miles away, in the Santa Bar-
bara Channel, the Monterey outcrops.
Success to date
Venoco raised some eyebrows last fall when it
announced that one of its Monterey wells was
deemed uneconomic due to high water cut.
Yet it remained bullish, planning to spend US
$100 million, or 50%, of its 2011 capital
budget on the play.
According to its 1Q 2011 conference
call, the company began actively drilling its
onshore Monterey acreage in early 2010 and
at press time had spudded 18 wells, 12 vertical
and six horizontal; set casing on 13 wells, nine
vertical and four horizontal; used two vertical
wells as pilot holes to start horizontal wells;
and is drilling two vertical wells. It also is con-
tinuing to build on its acreage position, cur-
rently at 240,000 gross and 159,000 net acres.
An additional 60,000 gross and 46,000 net
acres with Monterey shale production or
potential are held by production.
As the industry watches Venocos efforts,
company officials seem optimistic that theyre
putting their money in the right place. In the
1Q press release, founder, chairman, and CEO
Tim Marquez noted, While to date we have
not seen significant cumulative production as
71
UNCONVENTIONAL:
MONTEREY
Significant onshore seeps can still be found in
Carpinteria as well as Gioleta, Calif. Early Americans
used the oil to waterproof their canoes. (Photo by
Lowell Georgia; courtesy of Oil and Gas Investor)
72
UNCONVENTIONAL:
MONTEREY
a result of our drilling in the onshore Monterey, we have
been encouraged by the scientific information collected
thus far. After extensive logging, coring, and testing, we
have accumulated sufficient data from our vertical wells
to announce discoveries in our Sevier prospect in Kern
County and in our Salinas Valley prospect. Marquez
added that reserves estimates for Sevier are about 90
MMbbl on 20-acre spacing, while Salinas Valley reserves
are about 44 MMbbl on 40-acre spacing.
Other players
In addition to Venoco, other players are chasing the
Monterey (see box). Oxy is by far the largest lease-
holder, and in its 1Q 2011 earnings report it announced
that the 26 wells drilled in the shale in 2010 proved
up 200,000 acres on 10-acre spacing with 400,000 boe
per well.
During the April 28 conference call, Steve Chazen,
Oxy president and COO, said the companys program in
California is proceeding with satisfactory results,
although permitting has been an issue. During the ques-
tion and answer session, Chazen fielded additional ques-
tions about Oxys progress in the play.
The exploration program is slightly stalled from the
permitting process, he said. We hope that the back half
of the year we can catch up. We are getting better
results from the completions than we were historically
because we probably figured out how to do it better.
Other potential Monterey players include Plains
Exploration, Newfield Exploration, Berry Petroleum,
Canadian Natural Resources Ltd., Western Energy Pro-
duction, Zodiac Exploration, and Gasco Energy.
Time and experience will tell whether the Monterey
can live up to expectations. But for those who like to go
exploring, nows the time.
This play needs competition, Western Energys Man-
aging Director Steven Marshall said at Hart Energys
2010 Developing Unconventional Oil conference. Its
been landlocked for a long time, and a lot of people did-
nt have their exploration hats on.
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74
DUG 2011
Q&A
A
ctivity in US shale plays is taking off from the Mar-
cellus to the Monterey. The US Department of
Energy estimates total US shale resources of 6 trillion
barrels of oil, while the Federal Energy Regulatory Com-
mission estimates 742 Tcf of gas. Against this backdrop,
unconventional resource experts, industry players, and
shale play hopefuls gathered in Fort Worth April 18-20,
2011, at Hart Energys sixth annual Developing Uncon-
ventional Gas (DUG) Conference & Exhibition to exam-
ine the latest developments, issues, and challenges.
With at least 22 major shale plays in the US, uncon-
ventional resources have the potential to play a signifi-
cant role in meeting increasing global energy demands.
More than 2,400 DUG participants came to the confer-
ence with questions about shale gas operations, financial
opportunities, and environmental and regulatory issues.
They were privy to beyond-the-Powerpoint information
on company strategies, activities, and more
during Q&A sessions that followed the pre-
sentations. Recurring talk-points included
collaboration on technology and industry-
wide recognition of the importance of edu-
cating the public and respecting
community concerns.
Financial opportunity
Opening keynote speaker Steven Trauber,
vice chairman, global head of energy, Citi-
group, said there is potential for a record
number of initial public offerings this year.
In addition to the 13 IPOs were currently
mandated on that are scheduled to come
this year, therere probably another 10 or
11 that were actively pitching that will
likely come this year. Theres a tremendous
amount of equity to be raised in the energy
sector, he said.
The deals include upstream, midstream,
and services transactions. Small companies
who have grown because of commodity
prices or because of continued develop-
ment of their reserves seek capital, Trauber
said. The equity capital markets are very
open to upstream companies today, particu-
larly growth-oriented companies, which
many of these are.
Drilling and completions
At the root of the explosive development
of unconventional resources are advance-
Operators, analysts weigh in
on unconventional resources
Industry players get one-on-one insights from the experts.
Jo Ann Davy, Senior Editor
ABOVE: President and COO
Richard Stoneburner pre-
sented Petrohawk Energy
Co.s activities in the Eagle
Ford and Haynesville shales.
RIGHT: Olivier Lazare, vice
president, new business
development, Shell Explo-
ration and Production,
described his companys
success in the Marcellus
and Eagle Ford plays at
DUG 2011. (Photos courtesy
of Alexander Rogers)
74-75 DUG Q&A_74-75 DUG Q&A 5/21/11 11:09 PM Page 74
ments in horizontal drilling and hydraulic
fracturing, which have dramatically
improved the industrys ability to eco-
nomically recover natural gas from
shale rock.
In the Q&A session with Richard
Stoneburner, president and COO of
Petrohawk Energy Corp., one of the
questions was about well spacing in the
Eagle Ford. Were going to have a tighter
spacing in the Eagle Ford than we are in
the Haynesville, Stoneburner said,
because the gas-in-place numbers are
equal to or greater than the Haynesville,
but the recoveries per well are not nearly
as high. We do have one section thats
fully developed. We cant really project a
whole lot from that. Its got seven wells on
it, which would be about 90-acre spacing.
That feels about right to the engineers, and
weve got a bunch of models that suggest that that might
be about right.
In response to an inquiry about when the balance will
shift from holding leases to decisions based on profitabil-
ity, Stoneburner replied, We dont complete lease cap-
ture in its total in the Haynesville until about mid-2012,
but its a very nominal amount relative to what weve
been spending. When we get to about the same time in
2012, (the) Black Hawk (field) is totally discretionary.
Discretion in Black Hawk means you ought to drill as
much as you can. Then you have Hawkville. It has leases
held, but a continuous development clause is kicking in
all across the board, and these large leases have very sig-
nificant continuous development clauses.
Regulatory, environmental
and social concerns
Olivier Lazare, vice president, new business develop-
ment, Shell Exploration and Production Americas,
explained his companys view on community concerns
in the regions where shales are being developed. Each
location has its own challenges, he said. Its one thing to
get permits but another to get local society acceptance
because most of the time thats where issues come up.
Engaging people by informing them of potential dis-
turbances such as truck traffic and then trying to reduce
or eliminate it is one example of a mitigation measure,
Lazare said. Its so important to be really, really good at
this game. We also need to be very good in terms of our
operational capabilities. You cant have blowouts in
neighborhoods and not expect issues.
Lazare said the industry needs to do more to be trans-
parent and establish its credibility before issues occur.
He commended the industry on its good work in terms
of advocacy. There are initiatives like the disclosure on
the hydraulic fracing fluids that make a lot of sense.
Youre not going to win an argument by saying, trust
me, these things are not hazardous. You have to step
ahead of that and be more forthcoming.
You will not win some battles, but you can win the war
by being very consistent, up front, and willing to engage.
Moving forward
Lee K. Boothby, chairman, president, and CEO of New-
field Exploration Co., is convinced that collaboration
will pave the way and is excited about what is going on
in the wet gas condensate and oil plays today. Despite
the hurdles that have to be negotiated, there are a lot
more resources underfoot than any of us realized just a
few years ago, he said. I think that the industrys got
the talent in both the upstream and downstream sides to
solve this puzzle. Theres a lot more to be learned and
done, and well get there quicker if we work together.
The challenges that lie ahead make the future more
exciting, Boothby said.
The neat thing to me in watching the industry is that
its still exploring for
opportunities, he said.
It still comes down to
individuals and specific
companies being willing
to take a chance.
EPmag.com
READ MORE ONLINE
There is more
to the story
Following his luncheon keynote address at the DUG Conference & Exhibition
in Fort Worth in April, Bush sat down with Oil and Gas Investors Editor-in-Chief
Leslie Haines to share his thoughts on energy, being Commander-in-Chief, and
his advice for E&P professionals.
75
74-75 DUG Q&A_74-75 DUG Q&A 5/21/11 11:09 PM Page 75
76
ADVANCES
IN MOORING
W
hen an operating company wants to drill a well
with a moored mobile offshore drilling unit
(MODU) in the Gulf of Mexico (GoM), the first step is
to secure a permit. Part of that process is to evaluate the
risk of damaging infrastructure in the area. While this
sounds like a straightforward proposition, it can become
labor intensive and time consuming because of the diffi-
culty in obtaining accurate well, pipeline, and platform
production data.
The desire to facilitate and improve this process has
led InterMoor to develop a software system that can
access publically available information from the Bureau
of Ocean Energy Management, Regulation and Enforce-
ment (BOEMRE) and provide a visual understanding of
the infrastructure within any defined area in the GoM.
Necessity leads to invention
According to David Cobb, InterMoor vice pres-
ident of business development, the company
had several reasons for pursuing the creation
of the product called MoorVision, a database
application intended to facilitate the risk
assessment process recommended in the
American Petroleum Institutes (API) Gulf
of Mexico MODU Mooring Practice for
Hurricane Season.
We wanted to create a tool that helped
streamline risk assessments for the moored
rig permitting process, Cobb explained. We
wanted to develop something that would take
a collaborative approach to permitting and
save time and money for BOEMRE, rig owners,
and operators.
Data gathered by the former Minerals Man-
agement Service (and now collected by
BOEMRE) includes GoM well locations and
production rates as well as the placement of
pipelines, platforms, and other subsea struc-
tures. We saw the benefit in developing some-
thing that queried the BOEMRE database to give a real-
istic view of production rates and consequence factors,
Cobb said. The result is a tool that can quickly take a
broad view of critical infrastructure to help our clients
with planning and can potentially provide BOEMRE
with additional information that can be used to help
keep the database it maintains up to date.
Visualizing infrastructure, production data
According to software developer Regan Miller, staff engi-
neer at InterMoor, MoorVision allows users to quickly
collect and organize publically available infrastructure
information that can be imported to the Consequence
Assessment workbook that was developed by the Ameri-
can Bureau of Shipping (ABS) for the MODU Mooring
Strength & Reliability Joint Industry Project. MoorVi-
sion also facilitates the visualization of that data in
Google Earth.
Kent Longridge, principal engineer, explained the
function of the Consequence Assessment workbook.
New software brings
GoM infrastructure to light
A tool developed to access well, pipeline, and platform data in the GoM could facilitate
and improve the BOEMRE risk assessment and MODU mooring approval process.
Judy Murray, Editor
When an area in the GoM is identified, everything that appears in Google
Earth is clickable, which means for every element visible, there is a pop-up
box that displays current information such as the owner, pipeline diameter,
status, and throughput. (Images courtesy of InterMoor)
76-79 Mooring-Intermoor_Layout 1 5/22/11 11:59 AM Page 76
76-79 Mooring-Intermoor_76-79 Mooring-Intermoor 5/21/11 11:09 PM Page 77
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This Microsoft Excel work-
book is a tool that allows the
user to estimate the conse-
quence of a mooring failure
by evaluating subsea infra-
structure that is close to a
MODU mooring spread and
estimating the cost impact of
damaging the assets and los-
ing their production. It also
contains a simplified reliabil-
ity based risk model and presents risk data, the probabil-
ity of failure and consequence of damage, for each asset
on a graphical Whitman (Farmer) diagram.
According to Miller, the original purpose of Inter-
Moors program was to fill out the Consequence
Assessment workbook automatically. We were actually
78
ADVANCES
IN MOORING
Pop-up boxes viewable in
MoorVision allow the user to
see how much oil and gas is
being produced from an asset
or area.
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working on a project where we needed to draw out a tow route in Google
Earth. We realized that you can draw lines in Google Earth and that the lines
show additional information when you click on them, so that was the inspira-
tion. It really came about through serendipity more than anything else.
Once Miller recognized the potential of using Google Earth to visualize
data, he went to work creating the code within MoorVision that would gener-
ate Google Earth infrastructure files. The information is already available in
the BOEMRE database, he said. It contains a wealth of information, all of
which can be displayed on screen.
Today, MoorVision generates Google Earth files that display a portion
of the information available. The Google Earth files show infrastructure
within a 15-nautical-mile radius of any location, Miller explained. Clicking
on any of the boundary circles displays the total volume of oil and gas flow-
ing within the circle as a percentage of the reported oil and gas output in
the entire Gulf of Mexico. The minimum input required by MoorVision is
the latitude and longitude at the center of the area of interest. It just needs
the location and a mooring radius, Miller said.
Once the coordinates are entered, it takes 10-15 seconds for Moor-Vision
to query the database and return the data. More complex queries can take
30 seconds or so, Miller explained. Data are provided in two formats, one
that is ready for import into the Consequence Assessment workbook and a
second file for visualizing the infrastructure and its data in Google Earth.
When the area is identified, everything that appears in Google Earth, even
the circle that shows the 15-nautical-mile boundary, is clickable, which
means for every element visible, there is a pop-up box that displays current
information such as the owner, diameter, status, and throughput.
The inner circle quantifies infrastructure within the radius of the moor-
ing system while the larger circle quantifies the infrastructure within the
15-nautical-mile radius, Miller explained. The pop-up boxes allow the user
to see how much oil and gas is being produced from an asset or area. These
numbers are calculated from reported meter readings at the wells feeding
into the pipelines running through an area. These are not just theoretical
maximum production volumes, Miller said, but what is actually being pro-
duced based on historical data.
Having accurate data is important to determining the true risk. There are
a lot of platforms that have been producing at 20 to 30% capacity for a very
long time. There are very few that are reported as actually producing at
100% of what theyre capable of, Miller said.
Knowledge is power
Its clear that if you can see all this stuff and access it visually, quickly, and
easily with tools like MoorVision and Google Earth, then thats a huge bene-
fit toward increasing our understanding of the risk associated with mooring
a rig near local infrastructure, Longridge said.
InterMoor is planning to meet with the BOEMRE to demonstrate the soft-
ware before actually rolling it out. We are scheduled to do that in May, Lon-
gridge said, and I imagine that if they like it which I hope they will they
may want to see additional information displayed. Consequently, InterMoor
anticipates there will be enhancements to the current version of the software
both before and after MoorVision is made available to the public on Inter-
Moors website, www.intermoor.com.
ADVANCES
IN MOORING
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Vv?
T
he recent decision by Brazilian oil and gas producer
Petrobras to use high modulus polyethylene (HMPE)
mooring lines on deepwater mobile offshore drilling
units (MODU) has breathed new life into the technical
and practical issues surrounding the deployment of
hybrid lines for permanent moorings at water depths
beyond approximately 6,500 ft (2,000 m).
Lankhorst Ropes is supplying the synthetic mooring
rope with Dyneema to Petrobras. The Gama 98 rope
construction, developed by the company specifically for
deepwater mooring, is being used on a number of major
deepwater projects in the Gulf of Mexico (GoM). This
will be the first time the 630-metric-ton minimum break-
ing load (MBL) rope with Dyneema (comprising 12 sub-
ropes of SK78 yarn) has been used for MODU mooring.
HMPE MODU moorings
HMPE for MODU moorings first underwent trials 10
years ago. Early results were promising, said Sergio
Leite, technical director at Lankhorst Ropes Offshore
Division, However, subsequent problems with creep
prevented its use as a deepwater MODU mooring rope.
A decade later things have changed with the develop-
ment of SK78 by DSM Dyneema.
According to Leite, the rope has a creep rate maxi-
mum of 0.5% per year at 61F (16C). This, together
with advances in predictive modeling for creep rate
and elongation to estimate creep lifetime, are giving
HMPE the edge over polyester in ultra-deepwater
MODU mooring.
Beyond 6,500 ft (2,000 m) water depth, the elasticity
of the polyester rope becomes a problem. A 6,500-ft
(2,000-m) polyester line can have 130 ft (40 m) of verti-
cal movement. A line of approximately 9,800 ft (3,000
m) would allow 197 ft (60 m) under the same condi-
tions, creating greater horizontal offsets, which could
exceed the limits of drilling risers.
HMPE is a stiffer yarn than polyester; so its elasticity is
significantly less, making it smaller and more riser friendly.
A polyester deepwater rope with an MBL of 1,907 metric
tons has a diameter of 254 mm and weighs 43 kg/m. An
HMPE rope with the same MBL is only 190 mm in diame-
ter and weighs 16 kg/m. For Petrobras in particular, this
has important installation benefits because the MODUs
could be 124 miles (200 km) offshore. The smaller and
lighter HMPE rope allows more rope per reel (approxi-
mately 2,950 ft (900 m) HMPE vs. 1,970 ft (600 m) poly-
ester) and a considerable reduction on reel dimensions
13-ft (4-m) diameter end flanges with polyester are
80
ADVANCES
IN MOORING
Hybrid systems to change the shape
of deepwater mooring lines
Riser friendly HMPE mooring lines lighter, smaller, and with a higher MBL
than traditional polyester rope are ready to move into deep water.
David Owen, First Subsea Ltd.
The Gama 98 rope construction for deepwater mooring is being
used on a number of major deepwater projects in the GoM.
(Images courtesy of Lankhorst Ropes Offshore Division)
80-81 Mooring-Lankhorst_Layout 1 5/23/11 9:05 AM Page 80
ADVANCES
IN MOORING
81
reduced to 10 ft (3 m) with HMPE, allowing more reels
per vessel. The weight of the rope-laden reel also is
reduced from 19 metric tons for polyester to 7 metric tons
for HMPE. Since fewer reels are needed, the reels can be
handled more readily by an anchor-handling vessel. Fewer
lighter-weight reels will permit MODU mooring lines and
anchors to be installed in one trip. And the lighter HMPE
rope makes installation quicker, which is significant given
that the MODU mooring lines could be deployed and
recovered as many as 20 times over a 5-yr period.
Hybrid mooring lines
Although HMPEs creep performance prevents its use for
permanent deepwater mooring, Dave Rowley, director at
single point and deepwater mooring specialist Offspring
International, believes a polyester/HMPE hybrid moor-
ing system offers the best permanent mooring solution
beyond 6,500 ft (2,000 m).
As water depth increases, polyester moorings will not
have sufficient stiffness by themselves to maintain a vessel
on station and prevent over stressing the risers, Rowley
said. HMPE has the stiffness but not the creep perform-
ance. So hybrid mooring lines that combine polyester
rope segments and HMPE to give a hybrid stiffness that is
neither too stiff nor too soft, may offer the best solution
from both the perspective of mooring system perform-
ance and cost of deployment.
The speed of HMPE creep is a function of temperature,
mean load, and loading time. Higher temperatures mean
higher rates of creep; so in general, the preferred hybrid
rope configuration is to use the stiffer HMPE rope in
cooler water close to the seabed and polyester rope in
warmer water close to the vessel. The percentage of
HMPE to polyester line lengths used in the hybrid moor-
ing configurations changes as water depth increases:
50%-50% HMPE/polyester at 6,000-ft (~1,800-m)
water depth;
water depth; and
water depth.
Jorn Boesten, segment manager offshore, DSM
Dyneema BV, pointed out it is a common misconception
that all HMPEs are the same. This is most definitely not
the case, he said. Yes, creep rate is dependent upon
temperature, load range, and time, but the quality of the
feedstock is critical. Different feedstocks can give you dif-
ferent creep performance hence the importance of
developing our predictive modeling tool that allows us to
predict creep rate and creep elongations and to estimate
creep lifetime for Dyneema. Today it is possible to guaran-
tee the lowest HMPE creep rate over a 15-yr period using
SK78, he said.
Hybrid mooring system
From a rope designer and manufacture perspective, poly-
ester and HMPE rope construction is the same. Accord-
ing to Leite, the only difference is the rope diameter.
The principle benefit of hybrid PE/HMPE ropes is the
ability for the mooring system designer to engineer the
mooring lines stiffness and use the lengths of polyester
and HMPE segments to provide the stiffness needed to
handle peak loads during station-keeping, while ensuring
sufficient elasticity to withstand storms.
Storm survivability rose to the top of the mooring
agenda following hurricanes Ivan, Katrina, and Rita,
which swept through the GoM, casting adrift deepwater
MODU moorings with polyester lines.
Where previously the requirement by the then Miner-
als Management Service (now BOEMRE) was for MODU
moorings to withstand worst case 10-yr storm conditions
peak loads, it is now 50-yr storm conditions, Rowley said.
In permanent deepwater moorings, the requirement is
now 1,000-yr storm peak loads compared with 100-yr
storm previously.
Faced with the need to meet these more demanding
storm conditions, researchers at DSM Dyneema BV based
on the more severe post-Katrina American Petroleum
Institute (API) storm conditions in the GoM showed that
an HMPE MODU mooring system can be engineered to
have similar performance and survivability as a polyester
system in deepwater moorings.
Research results are promising, according to Boesten.
Weve successfully addressed the issue of storm surviv-
ability and station keeping with HMPE and reduced the
creep rate to match industry expectations on creep
requirements for MODU mooring systems.
The preferred hybrid rope configuration is to use the stiffer HMPE
rope in cooler water close to the seabed and polyester rope in
warmer water close to the vessel.
80-81 Mooring-Lankhorst_80-81 Mooring-Lankhorst 5/21/11 11:09 PM Page 81
82
New tool permits rigless retrieval,
redeployment of conventional ESPs
Conventional electric submersible pumps (ESPs) up to
562 series can be retrieved and redeployed without a rig
using the Zeitecs Shuttle through tubing by means of stan-
dard oilfield wireline, rod, or coiled tubing technology.
According to Zeitecs, operators can increase hydrocarbon
recovery, optimize production, and lower operating
expenditure throughout field life at substantially lower
HSE exposure and risk to staff for live or subhydrostatic
wells. The technology also allows faster well production
recovery as a result of unscheduled ESP system failure.
Additional benefits of the tool include:
Increased production through lower deferment;
Fewer hoist-supported workovers; and
Increased well value.
The Shuttle can provide independent surveillance
of the ESP and the reservoir. Operators can include
deepset packers, surface-controlled subsurface safety
valves, and chemical injections in their completions.
www.zeitecs.com
Linear position sensors ensure accuracy,
reliability downhole
Macro Sensors linear variable differential transformer-
based (LVDT) linear position sensors can be used for
position feedback control of downhole drilling equip-
ment, such as bore scopes that measure the ID of the
drilled hole. The sensors are built to survive HP/HT
conditions and are rated for pressures to 20,000 psi in
electrically nonconductive, chemically benign media at
temperatures to 400F (204C), which is achieved using
special high melting-point soldering. To accommodate
high pressures, the sensor case is vented to equalize
pressure inside and outside of the sensor.
Offering a compact
3
8-in. diameter design, the AC-
operated sensors can operate in devices with tight
space restrictions. A lightweight low mass core also
makes the sensors ideal for applications with high
dynamic response requirements. Units operate with
any conventional differential input LVDT signal condi-
tioners to provide position feedback to operators at
the surface. www.macrosensors.com
Portable analyzer improves
lateral well positioning, safety
Fugro Robertson has introduced RoqSCAN, a portable
rock properties analyzer that analyzes wellbore cuttings
in high resolution and generates fully intuitive, highly
quantitative mineralogical and textural datasets within
one hour of cuttings delivered to the rigsite unit.
RoqSCAN datasets can facilitate decision-making at
the well site. For each sample, data provided include
bulk mineralogy, lithology, mineral types and ratios,
grain size, etc. all measured against depth. For uncon-
ventional wells, data are used to support the placement
tech
TRENDS
The RoqSCAN system analyzes wellbore cuttings in high resolu-
tion and can facilitate decision-making at the well site. (Image
courtesy of Fugro Robertson)
In one offshore application, the Shuttle saved more than US $3
million in operating costs proportional to production rate com-
pared to an ESP system deployed on conventional tubing in an
offshore well. It also helped to avoid four workovers during a 15-
year life cycle. (Image courtesy of Zeitecs Inc.)
82-83 TechTrendsJUNE_82-83 TechTrendsJUNE 5/21/11 11:09 PM Page 82
83
of fracing stations for artificial reservoir stimulation.
When drilling lateral wells, the data also are used to
help keep the drill bit in its target zone and for
improved drilling management and safety
performance. www.fugro-robertson.com/roqscan
Solution improves shale well
wastewater treatment
In the Marcellus shale play, hydraulically fracturing a sin-
gle well can require more than 3 million gallons of water.
Aquatech has introduced the MoVap unit, a solution for
wastewater treatment that allows water that is fully treated
with a proprietary solution to be reused or returned to
the environment in compliance with National Pollutant
Discharge Elimination System permits.
The solution delivers consistent water quality and pro-
motes safety at the well pad, and the high-quality treated
water simplifies water management. Easily transported,
the MoVap unit can be used in conjunction with other
mobile and modular treatment solutions, the company
said. www.aquatech.com
Seismic sensing system
acquires more lower-noise data
Shell and HP have advanced the capability of their jointly
developed inertial sensing technology to shoot and
record seismic data at much higher sensitivity and at
ultra-low frequencies. The inertial sensing technology
enables a new class of ultra-sensitive, low-power micro-
electromechanical sensor accelerometers that can deliver
high-precision data capture at ultra-low frequencies.
Integrating the devices within a complete system that
encompasses numerous sensor types, networks, stor-
age capabilities, and computation and analysis tools
that monitor the assets and HSE generates a new level
of awareness, the companies said. The sensing tech-
nology has a noise floor of 10 nano-g per square root
Hertz (ng/rtHz), which is equal to the noise created
by the earths ocean waves at the quietest locations, as
defined by the Peterson Low Noise Model.
www.hp.com/go/sensingsolutions
Knowledge environment
provides productivity gains
The Petrel Studio E&P knowledge environment
enables substantial productivity gains. Like Google,
Studio Find lets users search, browse, and select data
in context, providing an efficient way to search across the
data environment and extract information. Comprehen-
sive usability studies to understand mouse movements,
interactions, and navigation has resulted in a number of
usability improvements such as tabbed windows and tear
menus. Petrel 2011 features a new flexible well section
window that enables viewing and interacting with 2-D well
data, including raster logs, with seismic fences and grid
model objects for improved well correlation and cross-sec-
tion workflows. The new attribute player combined with
geobody isolation capabilities provides potent new tools
for stratigraphic trap identification.
For a step change in spatial accuracy, Petrel 2011
includes a patent-pending positioning and visualization
method that was implemented for moving or merging well
and 3-D seismic data. New and improved interpretation
tools include automatic fault tracking, 3-D seismic flatten-
ing, and additional modes for detailed interpretation.
The software applications new stair-step gridding
has the ability to correctly model complex faulted reser-
voirs for a robust sealed structural framework that is
optimal for property population and fluid flow simula-
tion, Schlumberger said. Local model updates with
new well data, properties, and markers preserve history
matching for existing wells as well as achieving faster his-
tory matching. Users can evaluate parameter sensitivity,
optimize simulation input, and use local model updates
to work directly on problem areas and run new scenar-
ios. Finally, property modeling advances honor target
fractions for multipoint facies simulation.
www.slb.com/services/software/geo/petrel.aspx
tech
TRENDS
Similar to the Google search engine, the Studio Find tools allow users to
interactively search, find, and transfer result data into Petrel projects.
(Image courtesy of Schlumberger)
82-83 TechTrendsJUNE_82-83 TechTrendsJUNE 5/21/11 11:09 PM Page 83
84
SPECIAL REPORT:
BRAZIL
I
n the late 16th century, a Portugese explorer wrote that
he felt ashamed to describe the riches of Brazil out of
fear that they were too immense to believe. Yet he never
could have imagined the nature of the riches discovered
offshore Brazil 400 years later that have placed it once
again as a frontier of new world exploration.
While recent oil discoveries in the presalt layer of the
Santos basin approximately 186 miles (300 km) offshore
southeastern Brazil have put the country on the global
energy map, the fortunes and performance of Brazils oil
sector have been evolving for more than a decade. In
1997, management of Brazils energy sector was reformed,
and national oil company Petrobras was partially priva-
tized. Since then, production has rapidly expanded largely
due to the development of substantial deepwater reserves
in the prolific Campos basin.
Brazils oil, gas revival
Over the last 10 years, Brazils crude oil production has
doubled to more than 2 MMbbl/d, making the country
not only self-sufficient in oil but a net oil exporter. The
development of deepwater gas assets and associated gas
from presalt fields also will enable Brazil to reduce its
dependence on gas imports, which have come primarily
from neighboring Bolivia. Today, Brazil stands on the cusp
of an exciting new era.
Brazils oil production growth has gathered momentum
with the development of major deep- and ultra-deepwater
fields in the Campos basin. Infield Systems data show
these larger fields include:
Roncador, in 6,079 ft (1,853 m) water depth, which
produced 2.9 Bboe;
Marlim, in 2,740 ft (835 m) water depth, which pro-
duced 2.542 Bboe;
Marlim Sul, in 3,543 ft (1,080 m) water depth, which
produced 1.466 Bboe;
Marlim Leste, in 3,543 ft (1,080 m) water depth, which
produced 269 MMboe; and
Albacora Leste, in 4,068 ft (1,240 m) water depth,
which produced 824.4 MMboe.
In 2010, Phase Two of the Jubarte field (572 MMboe)
came onstream and is forecast to reach peak production
of 100,000 boe/d. Further development of the Marlim Sul
and Roncador fields is expected in the near term as well as
start-up of the Brava field (60,000 b/d in 2,126 ft or 648 m
water depth). Brava is a Marlim-area satellite field with
start-up expected in the next few years.
The Campos basin is the source of more than 80% of
Brazils crude oil production. The Esprito Santo basin,
north of the Campos basin, hosts the Golfinho and
Golfinho Southwest developments, with 500 and 150
MMboe in reserves, respectively, in approximately 4,547 ft
(1,386 m) water depth. Production from these fields has
been disappointing so far, with the Capixaba floating pro-
duction, storage, and offloading vessel already relocated to
the nearby deepwater Cachalote field.
Except for the Marlim field, which began producing in
1991, these Petrobras-operated deep- and ultra-deepwater
fields in the Campos and Esprito Santo basins came
onstream between 2000 and 2008.
Petrobras passes the salt
As Petrobras developed its deepwater discoveries, it estab-
Brazil to headline BRICs Act
in offshore production
Brazil turned the corner with its flagging oil and gas sector in the late 1990s with a shake-up
of Petrobras and the development of deepwater fields. One decade later, Brazils prolific
presalt reserves put the country on the cusp of even faster production growth.
Peter Kiernan and Roger Knight, Infield Systems
By raising offshore production, particularly in deep water,
Brazil has moved from a net oil importer to a net oil exporter.
(Source: Energy Information Administration)
84-86 Brazil-infield_84-86 Brazil-infield 5/21/11 11:10 PM Page 84
lished itself as the leading deepwater oil producer in the
world. In recent years, its presalt discoveries, mainly in the
Santos basin, have positioned the company to become an
even more prolific deepwater oil and gas producer.
Petrobras first discovered oil in the presalt layer offshore
southeastern Brazil in the Parati block
of the Santos basin in 2005. Since
then, further substantial discoveries
have been made. Estimates suggest
Brazils presalt reserves eventually
could amount to tens of billions of
barrels.
Some of the major presalt fields that
have been discovered since 2005
include the Lula (formerly Tupi),
Jubarte, and Baleia Franca fields. Test
production began at the Lula field in
May 2009. Petrobras expects output to
reach 100,000 b/d in the near term
when the first pilot well is in place.
Production also has begun in the pre-
salt layers of the Jubarte and Baleia
Franca fields in the northern Campos
basin.
By the middle of this decade, several
of Brazils largest presalt fields are
expected to begin production. The
impact on Brazils production outlook
likely will be quite dramatic provided
that the technological and financial
challenges of extracting presalt oil can
be met. By 2020, Petrobras expects
presalt production to reach more than
1 MMbbl/d. The full extent of Brazils
presalt reserves is not yet known.
What can be understood is that
Brazils oil and gas production has
been increasing due to development
of fields in deeper and deeper waters.
Infield data show that of the top 20
fields by reserve size that have come
onstream in Brazil since 1995, only
one is in shallow water (less than 1,640
ft or 500 m). This trend likely will con-
tinue as larger field discoveries are
made in deeper water environments.
According to Infields Deep and
Ultra-Deepwater Market Report to
2015, while 28 deepwater fields came
onstream between 2006 and 2010 in
Brazil, this is expected to increase to
42 fields during 2011-2015. Not all fields expected to
come onstream between 2011 and 2015 are presalt fields
operated by Petrobras (Brazilian independent OGX is
expected to feature prominently in field development, for
example); however, the company is forecast to be the
85
SPECIAL REPORT:
BRAZIL
14
Jason
'
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Detail from RockMod prestack geostatisticai inversion
Fugro-Jason's RockMod offers unparalleled insight into your
reservoirs by integrating geologic knowledge with well log and
seismic data.
As is often the case, a new well based on the results of this study
was the best well ever drilled in this basin. RockMod results are
also excellent input to static models for reservoir simulation.
Visit our wehsite to download the Use History paper on this project.
1
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JASON
Vol of Discovery
driver of deepwater capital expenditure in the country.
Petrobras is expected to invest more than US $54 billion
in deepwater activity between 2011 and 2015; total deep-
water investment in Latin America during that time is
expected to be $62 billion. Major international companies
such as Shell, ExxonMobil, BG Group, and Chevron,
along with independents such as Anadarko Petroleum
Corp. and El Paso, are expected to contribute to develop-
ing Brazils offshore assets, although not to the same
extent as Petrobras.
Brazils resource nationalism
Petrobras central role in the development of Brazils pre-
salt reserves recently was confirmed by legislation that
guarantees the company a minimum 30% equity share in
presalt field developments for unlicensed blocks. Partici-
pation from companies other than Petrobras would
involve negotiating production-sharing agreements. A
further law that was passed created a new government
authority, Pr-Sal Petrleo SA, to manage Brazils presalt
assets. Both the state and Petrobras will play a central role
in developing presalt fields.
The financial cornerstone of Petrobras investment
plans was the initial public offering in September 2010
that raised $70 billion, potentially the worlds largest pub-
lic stock offering. This offer included a $43 billion oil-for-
shares swap agreement with the Brazilian government that
will give Petrobras development rights to 5 Bbbl of oil in
exchange for a larger share of state ownership of the com-
panys shares. To date, Petrobras has acquired 3.1 Bbbl
from the Franco field, while the Iara and Florim fields will
account for another 1.07 Bbbl each. Petrobras also will
receive rights to develop oil at the Lula Northeast and
Guara East fields.
Petrobras has set an ambitious oil and gas production
target. It aims to reach total oil and gas production of 3.9
MMbbl/d by 2014 (for both Brazilian and international
operations), of which 241,000 b/d will come from presalt
fields. The companys total oil output in Brazil is targeted
to reach 3 MMbbl/d in 2014 and 3.9 MMbbl/d in 2020,
with presalt oil output alone to reach 1.1 MMbbl/d by
2020. Petrobras also plans to increase domestic natural gas
production from 384,000 boe/d in 2010 to 623,000 boe/d
in 2014, and to 1.1 MMboe/d in 2020, mostly by the cap-
ture of associated gas in its already producing and newly
developing oil fields.
In the last decade, Brazil has been able to transform
its stagnant oil and gas sector by raising offshore espe-
cially deepwater production. As this decade proceeds,
developing presalt oil reserves likely will build on this
growth and make Brazil one of the major oil producers
in the world.
86
SPECIAL REPORT:
BRAZIL
Larger field discoveries have been made in deepwater environ-
ments since the mid-1990s. This suggests the size of oil fields
will continue to increase as discoveries are made in deeper
water environments. (Charts courtesy of Infield Systems)
The size of gas fields by reserve size suggests production will
continue to increase as larger field discoveries are made in
deepwater environments.
The Lula/Lula Southwest field has the largest reserve size of all
of Brazils major presalt discoveries.
87
SPECIAL REPORT:
BRAZIL
I
n 2009, Brazil was proven to hold 12.6 Bbbl of oil
reserves (Agncia Nacional do Petrleo, or ANP, esti-
mated this to have risen to 14 Bbbl in 2010), second
largest in South America after Venezuela. The offshore
Campos and Santos basins on the countrys southeast-
ern coast contain the vast majority of Brazils proved
reserves. According to the BP Statistical Review 2010, in
2009 Brazil produced 2.2 MMbbl/d of oil, of which 90%
was crude oil.
Going deeper
The bulk of offshore reserves are thought to be in deep
water. This fact has been a driving
factor for innovation and has led
Petrobras to become a global pio-
neer in its use of offshore produc-
tion technology most notably in
the subsea and floating production
system (FPS) sectors.
The water depth distribution of
the Brazilian FPS fleet shows a very
marked trend toward deepwater pro-
duction. The first deployment of an
FPS in water depth greater than
1,640 ft (500 m) occurred in 1983
with Petrobras seventh floating plat-
form installation, the P-15, which served the giant
Pirauna field. Since then, deepwater installations have
dominated and will continue to do so.
The majority of FPSs operating offshore Brazi are con-
versions, and some units have been upgraded and rede-
ployed several times. Most of these vessels are owned by
Petrobras, although in recent years the operator has
shown a willingness to take the leasing option to fulfill
its FPS requirements.
The countrys oil and gas industry was opened up to
international players in the late 1990s, and this has
allowed foreign and domestic firms to take up a pres-
ence in Brazilian waters via joint-venture arrangements
with Petrobras or by acquiring concessions in the coun-
trys licensing rounds, which have been held annually
since 1999. Most foreign entries to date have been in
blocks that are still in the early phases of exploration.
This explains why Petrobras will dominate development
activity off the country to 2015, with 78% of the 40
prospective FPS installations.
Investing in FPSs
Over the next five years, should all prospective FPS
installations go ahead, investment of more than US $22
billion would be required, of which more than $18 bil-
lion would be directly attributed to Petrobras-led devel-
opments. This accounts purely for visible prospects
additional FPS prospects for fields in the early stages of
planning or conceptual design could account for addi-
tional (or alternative) solutions.
Floating production, storage, and offloading vessels
(FPSOs) dominate, accounting for 36 of the 40 prospec-
tive installations. Requiring lower
capital, conversions often are the
preferred economic choice but
can be limited by the quality of
tankers and other vessels available
for conversion.
Many of the prospective installa-
tions are redeployments i.e., the
movement of a unit from one field
to another. While FPS units typically
enjoy a field life of 20 or more years,
they can be placed on fields for
shorter durations and can be used
for extended well testing programs
or as short-term replacements for other production
facilities. This is particularly relevant to leased FPSOs,
which are designed to be more economically flexible.
Redeployed vessels account for 18% of the prospective
installations for the 2011-2015 period.
Petrobras
Of Petrobras 31 installation prospects, 26 are related
to FPSO projects, two installations are related to an
FPSO with drilling capabilities (PIPA Dynamic Producer
FPDSO), and two are floating production semisub-
mersibles (FPSSs) namely the P-55 for Roncador and
the Jupiter FPSS. Only one prospect is a tension-leg plat-
form (TLP) the P-61 dry tree TLP for Papa Terra.
While the vast majority of Petrobras FPS prospects are
in deep water, there are a number of units that are set to
be installed in shallower water. One such prospect is an
Brazil primed for offshore investment
With Petrobras leading the way, several companies plan significant projects in the coming years.
Michael Robertson, Douglas-Westwood
Most of the
foreign entries to
date have been in
blocks that are still
in the early phases
of exploration.
87-88 Brail-DW_Layout 1 5/23/11 10:32 AM Page 87
88
FPSO for the Tiro and Sidon fields in the Santos basin
in 820 ft (250 m) water depth. The EPC contract for the
FPSO was awarded to Teekay, and the Cidade de Itajai
FPSO (formally ARCII) is currently being converted in
the Jurong shipyard for use on this field. Installation is
expected in 2012.
Other players
Brazilian independent OGX has four prospective FPS
installations scheduled from 2011 to 2015. FPSOs are
expected to be installed on the Etna, Pipeline, Vesuvio,
and Waimea fields.
Three foreign operators have prospects for the 2011-
2015 period Anadarko, BG Group, and Shell. Statoil
also is involved in the Brazilian FPS sector and in April
of this year saw the commencement of production from
its Peregrino field. This development has 37 wells tied
back to two wellhead platforms and an FPSO, which is
leased from Maersk Oil. Sinochem holds a 40% interest
in the field.
Anadarko is considering an FPSO for its deepwater
Wahoo field in the Campos basin, where start-up is
scheduled for 2014.
BG Group has partnered with Petrobras on the Corco-
vado project. Discovered in 2009, the field lies in 2,684 ft
(818 m) water depth in the Santos basin. Production is
expected to begin in 2014 with an FPSO development
plan under consideration.
Shell is involved in two FPS projects in Brazil a sec-
ond FPSO for the companys Parque das Conchas devel-
opment and a possible TLP for the Atlanta and Olivia
fields.
Deep water
Two key features of Brazilian deepwater reservoirs their
giant size and their large lateral expanse have meant
that development generally has
involved a phased process. Typically,
this begins with a pilot or early pro-
duction phase using a single FPS,
followed by the deployment of addi-
tional units in subsequent develop-
ment phases. Thus, some fields are
multi-FPS developments, the lead-
ing example being Marlim field,
which currently has nine floaters in operation (five FPSOs
and four FPSSs).
A new regulatory framework for presalt reserves was
released in August 2009, under which Petrobras would
act as operator and maintain a 30% stake in each devel-
opment. Some believe the new framework will slow
development and increase the governments profits
beyond acceptable limits.
Brazil has seen numerous deepwater projects move
into the production phase, including:
Cidade de Sao Mateus FPSO testing on the Lula
(Tupi) field in May 2009;
Frade FPSO on the Frade field in June 2009;
P-53 FPSO on the Marlim Leste field in December
2008;
P-51 FPSO on the Marlim Sul field in January 2009;
Cidade de Niteroi FPSO on the Marlim Leste field in
March 2009;
Espirito Santo FPSO on the Parque das Conchas project
in July 2009;
Cidade de Santos FPSO on the Urugua field in July 2010;
Capixaba FPSO on the Cachalote field in June 2010;
Cidade de Angra dos Reis FPSO on the Lula (Tupi) field
in October 2010;
P-57 FPSO on the Jubarte field in December 2010;
and
Cidade de Sao Vicente FPSO extended well test on the
Lula North East field in April 2011.
The trend toward deeper developments is likely to con-
tinue into the future as fields in the Campos and Santos
basins are further developed. Out of the 40 prospective
FPS installations, only nine are scheduled for installation
in more than 1,640 ft (500 m) water depth. There also is
an increasing number of ultra-deep (deeper than 6,600 ft
or 2,000 m) developments, notable projects being Franco,
Guara, and Lula (Tupi).
SPECIAL REPORT:
BRAZIL
Prospective installations by unit type
indicate the anticipated level of activ-
ity offshore Brazil through 2015. (Graph
courtesy of Douglas-Westwood)
87-88 Brazil-DW_87-88 Brazil-DW 5/21/11 11:10 PM Page 88
89
international
HIGHLIGHTS
Africa
Cameroon catch for Bowleven
Bowleven Energys Sapele-1ST well in the Douala basin
offshore Cameroon in West Africa has encountered 75 ft
(23 m) of net hydrocarbon pay in the Omicron objec-
tives. The Noble Tommy Craighead jackup drilled the well
to 11,923 ft (3,634 m) total vertical depth in approxi-
mately 82 ft (25 m) water depth.
Circle squares Moroccan discovery
Circle Oil has discovered gas with the KSR-11 exploration
well in the Sebou permit in the Rharb basin in Morocco.
The company perforated 59 ft (18 m) of the Intra Hoot
zone at 5,778 to 5,837 ft (1,761 to 1,779 m) measured
depth (MD). The Intra Hoot has a calculated net gas pay
of 39 ft (12 m) which flowed 4 MMcf/d. The well reached
the Base Guebbas zone at 5,367 to 5,492 ft (1,636 to 1,674
m) MD, which has 20 ft (6.0 m) of net gas pay. The Mid
Guebbas zone was encountered at 4,803 to 4,879 ft (1,464
to 1,487 m) MD with 13 ft (4.0 m) of net gas pay.
Tweneboa appraisal joy for Tullow
Tullow Oils Tweneboa-4 appraisal well encountered 59
ft (18 m) of net gas condensate in good-quality sand-
stone reservoirs in the Deepwater Tano license offshore
Ghana. Transoceans Deepwater Millennium drillship
drilled the well to a total depth (TD) of 13,146 ft (4,007
m) in 4,711 ft (1,436 m) water depth.
Central Asia
Reliance hits gas in Cauvery-Palar basin
Reliance Industries Ltd. has hit gas and condensate with
its first well in block CY-PR-DWN-2001/3 (CYPR-D6) in
the deepwater Cauvery-Palar basin offshore India. Dis-
covery well Dhirubhai-53 was drilled to a target depth of
12,516 ft (3,815 m) in 3,917 ft (1,194 m) water depth
and flowed 37 MMcf/d of gas and 1,100 b/d of conden-
sate from a 230-ft (70-m) thick zone.
South America
Brava EWT under way offshore Brazil
Petrobras has begun an extended well test (EWT) of the
Brava area in the presalt Campos basin in the produc-
tion concession area of the Marlim field offshore Brazil.
The test will be conducted for up to two years. Well
6-MRL-199-RJS is expected to produce approximately
6,000 b/d of oil to the P-27 platform, which is produc-
ing the Marlim field.
Falkland Islands appraised
A significant oil column was reported by Rockhopper
Exploration Plc in appraisal well #14/10-4 in the Falkland
Islands. The company reported well #14/10-4 encountered
108 ft (33 m) of net pay in good quality reservoir with 20%
average porosity. The well was drilled to 9,190 ft (2,803 m)
and found the oil-water contact level at 8,127 ft (2,480 m).
Petrobras tests Guara presalt
Petrobras has completed a formation test in the first
extension well on the Guara field in the presalt Santos
basin, confirming the ultra-deepwater accumulations
high productivity estimates. During the test on well #3-
SPS-69 (3-BRSA-788) in block BM-S-9, flow rates of
approximately 6,000 b/d of 30 API oil were confirmed,
limited by the capacity of the equipment used. Initial
production potential is approximately 50,000 b/d of oil.
Europe
Grosbeak appraisal under way
Premier Oil has spudded an appraisal well in license PL
378 offshore Norway. Songa Offshores Songa Delta semi-
EPmag.com
READ MORE ONLINE
The Sapele-1ST well is in block MLHP-6 offshore Cameroon.
(Image courtesy of Credit Suisse Energy Summit)
89-90 HighlighsJUNE_La"o! 1 5/23/11 10:35 AM Page 89
submersible drilled the well to test previously discovered
oil accumulations in Jurassic reservoir rocks in the license.
Marathon signs for Poland shale sale
Marathon Oil Corp. has signed an agreement with a
wholly owned subsidiary of Nexen Inc. that states Nexen
will acquire a 40% working interest in 10 of Marathons
concessions in Polands Lower Paleozoic shales at
depths between 8,000 and 18,000 ft (2,400 to 5,500 m).
Marathon plans to acquire 2-D seismic in 1H 2011 and
could drill a well by 4Q 2011. Seven to eight wells are
planned for 2012.
Middle East
Marathon hits oil in Kurdistan
Marathon Oil Corp. subsidiary Marathon Petroleum
KDV BV has drilled the Atrush-1 discovery well, approxi-
mately 55 miles (89 km) northwest of the city of Erbil in
the Kurdistan region of Iraq. The well was drilled to a
total depth of approximately 11,000 ft (3,353 m) and
encountered 400 ft (122 m) of net pay in Jurassic zones,
flowing more than 6,000 b/d of oil from three horizons.
Pacific Rim
Beach raises Butlers pay
Beach Energys Butlers-2 appraisal well has encountered a
16-ft (5-m) oil column in the Namur sandstone reservoir
in the Western Flank of the Cooper basin in Australia.
The discovery will increase recoverable oil reserves from
the field to approximately 1.5 MMbbl gross.
Premier strikes Vietnam oil
Premier Oil has completed appraisal sidetrack well CRD-
2X-ST in block 07/03 offshore Vietnam. Diamond Off-
shores Ocean General semisubmersible drilled the well to
10,958 ft (3,300 m) TD in the Miocene section and
intersected 59 ft (18 m) of net oil pay.
North America
Workover successful in West Cameron
An offshore Louisana workover completion by
LLOG Exploration Co. on West Cameron Block 31
was tested flowing 2.86 MMcf/d of gas from Miocene
at 12,446-12,476 ft (3,796-3,805 m). The #1 State Lease
18949 was drilled in 2006 to 14,807 ft (4,516 m) from
a surface location in the northern portion of irregular
Block 31.
New well adds spice to Tabasco
According to Oil and Gas International, a new onshore
discovery has been reported by Pemex in Tabasco, Mex-
ico. The #1-Pareto exploratory well was drilled to 23,374
ft (7,124 m), hitting hydrocarbons between 20,008 and
23,394 ft (6,100 and 7,130 m) in Lower Cretaceous lime-
stone and Upper Jurassic dolomites. Flow testing con-
firmed the initial production rate will be 3,700 b/d of
oil and 8 MMcf/d of gas.
Gulf of Mexico
Contango makes Swimmy discovery
The Houston-based operator Contango Oil & Gas
Co. has located gas and condensate with the Swimmy
prospect in Vermilion Block 170. The #1 OCS G33596
well is expected to be brought online this fall at a rate
of 15 MMcf/d of gas equivalent net to the operator.
Proved reserves at the site total 48 Bcf of gas and 1.2
MMbbl of condensate.
Cuba plans exploratory wells
The first of five deepwater exploratory tests have been
planned in the Cuban sector of the Gulf of Mexico.
According to Oil and Gas International, the director of
Cubas Ministry of Basic Industry said the wells will be
drilled between 2011 and 2014 in water depths between
1,312 and 4,922 ft (400 and 1,500 m). Cupet, the Cuban
national oil company, and Repsol YPF of Spain will
cooperate in the drilling program.
90
international
HIGHLIGHTS
Marathon Oil and Nexen are partnering to develop shale
acreage in Poland. (Image courtesy of Marathon Oil Corp.)
89-90 HighlighsJUNE_La"o! 1 5/23/11 10:47 AM Page 90
ADVERTISER INDEX
on the
MOVE
91
Former Governor of Pennsylvania
Ed Rendell has joined the board of
directors of OwnEnergy Inc.
Sun River Energy Inc. has appointed
Dr. Steven R. Henson to its board of
directors, Judson F. Hoover as CFO, and
James E. Pennington as general counsel
and secretary.
Logan International
has named David S.
Jones (top left) COO
and senior vice presi-
dent, downhole tools, and
Lawrence D. Keister (bottom
left) CFO and vice president of
finance. Andrew Buzinsky
(right) has been named president of
Logan Completion Systems operations.
Noreco has appointed Ellen Sandra
Bratland COO.
Michael Jardon has been appointed
COO of Expro.
Fugro Multi Client Services has
named Tim Addington (right)
chief geophysicist.
Christopher D. Heath has joined
Radiant as executive vice president
of corporate finance.
Aggreko has appointed Ana Amicarella
vice president of the North Business
Unit and member of the executive
team.
Equal Energy Ltd. has named
Terry Fullerton senior vice president,
exploration.
Curt Watson has joined Mustang as sen-
ior vice president of global business
development and marketing.
ABB Turbo Systems LTD . . . . . . . . . . . . . . . . . 15
Baker Hughes Incorporated . . . . . . . . . . . . . 37
Basic Energy Services . . . . . . . . . . . . . . . . . . 26
Beatty & Wozniak, P.C. . . . . . . . . . . . . . . . . . . 18
Cameron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
CNPC Greatwall Drilling Co. . . . . . . . . . . . . . 55
Delmar Systems, Inc. . . . . . . . . . . . . . . . . . . . 78
Department of Agriculture
and Consumer Services . . . . . . . . . . . . . . . . . 50
Downhole Products . . . . . . . . . . . . . . . . . . . . . 39
Dragon Products, Ltd. . . . . . . . . . . . . . . . . . . . 32
E&P . . . . . . . . . . . . . . . . . . . . . . 28, 41, 51, 64, 73
Escondido Resources II . . . . . . . . . . . . . . . . . 50
Expro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Fugro Robertson . . . . . . . . . . . . . . . . . . . . . . 67
Fugro Jason . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
GE Oil & Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
GEA Westfalia Separator Group . . . . . . . . . . 79
GEFCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Louisiana Economic Development . . . . . . . . 22
M-I Swaco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Momentive . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
National Oilwell Varco . . . . . . . . . . . . . . . . 9, 23
Newpark Drilling Fluids . . . . . . . . . . . . . . . . 30
OTC Brasil . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
P2 Energy Solutions . . . . . . . . . . . . . . . . . . . . 24
Packers Plus . . . . . . . . . . . . . . . . . . . . . . . . . IBC
Petris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Schneider Electric . . . . . . . . . . . . . . . . . . . . . 11
Sercel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Schlumberger . . . . . . . . . . . . . . . . . . . . 3, OBC
Society of Exploration Geophysicists . . . . . 61
Society of Petroleum Engineers . . . . . . . . 40, 47
Stallion Oilfield Services . . . . . . . . . . . . . . . . 17
Tetra Technologies, Inc. . . . . . . . . . . . . . . . . IFC
Unit Liner Company . . . . . . . . . . . . . . . . . . . 63
Vallourec & Mannesmann USA . . . . . . . . . . . 43
Viking Moorings . . . . . . . . . . . . . . . . . . . . . . 77
Weatherford International Ltd. . . . . . . . . 20, 21
WesternGeco . . . . . . . . . . . . . . . . . . . . . . . . . 57
Group Publisher
RUSSELL LAAS
Tel: 713-260-6447
rlaas@hartenergy.com
Associate Publisher
DARRIN WEST
Tel: 713-260-6449
dwest@hartenergy.com
United States
Canada / Latin America
1616 S. Voss Road, Suite 1000
Houston, Texas 77057 USA
Tel: 713-260-6400
Toll Free: 800-874-2544
Fax: 713-627-2546
Regional Sales Manager
JULIE B. FLYNN
Tel: 713-260-6454
jflynn@hartenergy.com
Advertising Sales Representative
HENRY TINNE
Tel: 713-260-6478
htinne@hartenergy.com
Sales Manager
Eastern Hemisphere
DAVID HOGGARTH
Tel: 44 (0) 7930 380782
Fax: 44 (0) 1276 482806
dhoggarth@hartenergy.com
Advertising Coordinator
CAROL NUNEZ
Tel: 713-260-6408
cnunez@hartenergy.com
Subscription Services
E&P
1616 S Voss Road, Suite 1000
Houston, Texas 77057
Tel: 713-260-6442
Fax: 713-840-1449
custserv@hartenergy.com
List Sales
MICHAEL AURIEMMA
Venture Direct
212.655.5130 phone
212.655.5280 fax
mauriemma@ven.com
MARKETING | SALES | CIRCULATION
91 Onthemove_Layout 1 5/22/11 2:09 PM Page 91
E
P
92
A
According to a survey conducted by the Interna-
tional Association of Oil & Gas Producers (OGP)
Standards Committee, the average upstream oil and gas
company has 816 internal company specifications.
These include technical specifications, company
standards, and individualized design and engineering
practices all prepared by the company itself for its
own repeated use. In some of the companies surveyed
(accounting for more than one-third of the worlds oil
and gas production), such technical specifications total
more than 2,000.
The committees newly published report, Bench-
marking on the use of internal technical specifications
and external standards by some oil & gas companies,
points to this as a situation for some concern. According
to the report, large numbers of specifications require a
lot of company resources to maintain and to keep cur-
rent. Moreover, Large groups of company specifications
for mechanical equipment (including rotating machin-
ery, tanks and vessels, piping, and valves), maintenance
and inspection, electrical, instrumentation, HSE and
process disciplines may suggest lack of, or an inappro-
priate level of, external standards in these areas.
The result is that companies with many specifications
and standards invest more peoples time to create these
guidelines than they would to evaluate and implement
external standards.
Ironically, most internal specifications quote external
standards, the report finds. In total, 5,237 different
standards titles have been recorded from eight of the
survey respondents These standards come from as
many as 132 different standards-making organizations.
And, despite affirmations of a great interest in interna-
tional standardization and potential benefits including
cost reduction, reconciling technical differences, and
minimizing the number of company specifications the
survey also revealed a significant disparity in the level of
participation for operating companies in external stan-
dardization work. The report found that, Some majors
carry a heavy burden, while other operating companies
are happy to make use of the standards and harvest their
benefits, but they are not at all present in the standards
development process.
The report concludes with suggested actions to
involve more operating companies in developing inter-
national standards.
The committee argues that resources currently dedi-
cated to developing and maintaining company specifica-
tions could be better shared with others in developing
international standards, particularly in areas where
international standards activities are limited or non-exis-
tent. And further, if company specifications largely refer
to external standards, project developers might have a
clear basis on which to build their needs and could
achieve more.
Commenting on the survey, OGP Standards Manager
Alf Reidar Johansen said the findings bear out the associ-
ations commitment to universality. We have always
argued the benefits of global standards used locally world-
wide, and this report argues in favor of that approach.
The report is available to download from the publica-
tions page of OGPs website at: www.ogp.org.uk
Setting the standards
Are companies overburdening themselves with in-house specs?
On behalf of the International Association
of Oil & Gas Producers (OGP)
last
WORD
Companies with many specifications and standards invest
more peoples time to create these guidelines than they
would to evaluate and implement external standards.
92 LastWord_92 LastWord 5/21/11 11:10 PM Page 92
991-994 HEPco!ersJUNE_La"ot 1 5/22/11 1:14 AM Page 993
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991-994 HEPcoversJUNE_991-994 HEPcoversJUNE 5/21/11 11:11 PM Page 994
20 stops...14 cities...17 degrees. PowerDrive Archer is on the road.
To learn more, use a QR reader app to scan code with smart phone, or visit:
www.slb.com/ArcherTour
Schiumberger

Revista E&P - Junio 2011

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Revista E&P - Junio 2011

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Copyright:

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E P MAG.

1/4 ms Sample Rate

Standard Wireline De lo men www.sercel.co

June 2011 | EPmag.com

Effective vs. Reference

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Revista E&amp;P - Junio 2011

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Información del documento

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¿Le pareció útil este documento?

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Copyright:

Formatos disponibles

Revista E&amp;P - Junio 2011

Cargado por

Copyright:

Formatos disponibles

E P MAG.

1/4 ms Sample Rate

Standard Wireline De lo men www.sercel.co

June 2011 | EPmag.com

Effective vs. Reference

También podría gustarte

Revista E&P - Junio 2011

Revista E&P - Junio 2011