Beruflich Dokumente
Kultur Dokumente
COM
J U LY 2 0 1 2
Intelligent
Operations
Cost & Risk
Management
Land Seismic
MWD/LWD
Production
Logging
Construction
& Installation
REGIONAL
REPORT:
Mediterranean
Interest
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drop by
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RAGO
Make it happen.
INTELLIGENT OPERATIONS
44
J U LY 2 0 1 2
VO L U M E 8 5
ISSUE 7
w w w. E P m a g . c o m
48
54
56
LAND SEISMIC
60
64
32
Shales ripple
effect goes global
Shale has been making the biggest noise heard
in the oil and gas industry for some time, with
North Americas pioneering role to the fore. But
a global picture is starting to emerge.
MWD/LWD
68
72
40
PRODUCTION LOGGING
76
78
88
90
MERITORIOUS AWARDS
FOR ENGINEERING
INNOVATION WINNERS
98
REGIONAL REPORT:
MEDITERRANEAN
Technology aids
fracturing success
The growing emphasis on completion
technology in North American E&P could
be a double-edged sword
84
IndustryPULSE:
12
WorldVIEW:
Value-driven strategy
starts to deliver results
Faced with declining reserves,
Mexicos national oil company gets
serious about exploration.
80
Unconventionals:
Niobrara
School is out, but Niobrara
operators are still learning
Although it is early days for the Niobrara,
this liquids-rich Rocky Mountain play has
operators and analysts abuzz.
Ml51,
DEPARTMENTS AND COMMENTARY
AS I SEE IT
Weve got our work cut out for us
MANAGEMENT REPORT
ESP startup takes new approach to US artificial lift market
I
I
16
18
20
EXPLORATION TECHNOLOGY
Simultaneous sources move offshore
:4
25
WELL CONSTRUCTION
What goes around comes around
k
27
PRODUCTION OPTIMIZATION
Light well intervention systems perk up maintenance market
29
OFFSHORE ADVANCES
Meeting the challenges of our
customers has always been
the focus of our work , and it
continues to be the measure
of our success today.
The relationships we build
with operators have helped
M-I SWACO people keep a
close eye on the issues faced
during drilling, completion and
production.
Our collaborative approach
has generated a number of
technical innovations to meet
the changing needs of our
customers such as exploiting
unconventional resources and
defining industry best practice.
When you need solutions
and technologies to address
your next challenge-from
advanced fluid systems ,to
individual tools and equipment ,
to modeling software-you
know where to look.
Mi SWACO
A Schlumberger Company
www.miswaco .slb.com
31
TECH WATCH
Gas hydrates mapped using marine CSEM methods
92
TECH TRENDS
94
INTERNATIONAL HIGHLIGHTS
ON THE MOVE/INDEX TO ADVERTISERS
102
106-107
LAST WORD
Curbing perception by telling the truth
COMING NEXT MONTH
108
The August issue of E&P takes a close look at national oil companies
and their important role in the global energy mix. Other features will examine production quality
improvement, rock physics, water management, downhole systems, and EOR, while regional features will
focus on the North Sea and the Granite Wash shale play. As always, while youre waiting for the next copy
of E&P, remember to visit EPmag.com for news, industry updates, and unique industry analysis.
ABOUT THE COVER Worldwide shale resources are abundant, and countries
around the globe are encouraging shale oil and gas development, though at a less
frenzied pace than in North America. On the left is Santorini Island in the
Mediterranean Sea. Companies like Noble Energy have had tremendous success in
the Eastern Mediterranean. (Cover design by Laura J. Williams)
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, PO Box 5020, Brentwood, TN 37024. 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, 2012. Hart Energy Publishing, LP reserves all rights to editorial matter in this magazine. 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
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industry
PULSE
Faster fracing
Plug and perf (PNP) is the traditional method of executing a multistage stimulation program. This method
involves cementing in production casing in the lateral section of the well. The section to be fractured is isolated by
setting bridge plugs via wireline or coiled tubing (CT).
Next, the casing is perforated, and the frac fluid is
pumped into the well. This process is repeated until each
stage is fractured. Finally, CT is used to drill out the plugs
and open the well bore for production.
RE A
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E M E R S O N . C O N S I D E R IT
SOLVED`.
industry
PULSE
Baker Hughes has turned to nanotechnology and developed In-Tallic dissolving frac balls. The balls consist of
microscopic particles of magnesium, aluminum, and
other alloys that are bound together but dissolve in brine.
The result is a light but strong material that can be
shaped into perfectly round balls, provide a seal downhole, and then completely dissolve in a few weeks. The
company also is developing a holster made of the same
material to eliminate the need for drill out post-stimulation. Schlumberger offers a competing system that uses
a dissolvable dart to activate sliding sleeves within its
nZone system.
Proppants lighten up
New proppant technology includes ultra-lightweight polymer proppants with specific gravities approaching water.
The settling rate of the ultra-lightweight proppants is much
10
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COLLEGE OF EARTH&ENERGY
THE UNIVERSITY OF OKLAHOMA
world
VIEW
Value-driven strategy
starts to deliver results
Faced with declining reserves, Mexicos national oil company gets serious about exploration.
Greater efficiency
Currently, there are too many cooks in the kitchen of
Pemex for it to be run effectively as a company, he said.
Each of these cooks is following their own recipe, and
there is no accountability. Surez Coppel is alluding to
the fact that under current legislation, the government is
still responsible for approving Pemexs annual budget,
while Mexicos 2008 Energy Reform created the Comisin
Nacional de Hidrocarburos (National Hydrocarbons
Commission), Mexicos upstream regulator that Surez
Coppel said has a poorly defined mandate and as a result
is interfering too much in the running of Pemex.
What every company needs to do is choose one cook,
agree on the menu, agree on the budget for that menu,
and then see how successful it is, he said. If no one is coming to your restaurant after two weeks, then you need to
hire a new cook. At Pemex, we need to move from a proce12
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VIEW
Going abroad
Since President Caldern visited Cuba
in April this year, speculation has been
rife that a deal would soon be completed for Pemex to work on Cuban offPemex seeks partners not only to invest in existing fields such as the Sonda de
shore oil projects. One of the biggest
Campeche but also to target new exploration opportunities.
questions today is whether things would
move faster if international companies
However, now that the Brazilian government has realwere able to come to Mexico. Why not reverse this logic?
ized the tax revenues that could come from the oil and gas
There is no reason why Pemex should not be able to work
industry, things are actually starting to look more like the
in other countries to speed up the learning process instead
Mexican model year by year.
of butting our heads against the political system, Surez
Coppel said. We are currently looking at opportunities in
Getting the lay of the land
the US Gulf of Mexico, and as soon as we are ready, we are
Mexicos 2008 Energy Reform opened the door for
certain we will go there. We also are interested in looking
Pemex to award contracts based on incentives for the first
at shale gas and tight oil opportunities in the US.
time in its history. Surez Coppel explained that while
The final sentiment that Surez Coppel shared is the
international oil companies find operating environments
fact that he is not keen on the eventual privatization of
that match their technological capabilities, Pemex has to
Mexicos oil and gas industry. Our vision is that liberalizadevelop the skills required to fully exploit the resources on
tion should not be a critical decision for Mexico to make,
Mexicos geological map. The company has a number of
he said. Having a national oil company has its advantages.
different contracts available to act on its mandate.
To depend on the whims of international operators is a
The first is contracting for certain activities, such as
dangerous game, and an NOC can mitigate this risk.
drilling or well completion. We also can contract field labI do not mean to imply that national oil companies are
oratories where we bring in a partner to systematically try
the only way to run an industry, but at Pemex we would
new technologies in a given block over a two- to four-year
like to run things so efficiently that liberalizing the indusperiod, he said.
try fades as a critical decision.
The third type of contract is the integrated service contract, through which we pay our partners a percentage of
Mexico Oil & Gas Review outlines the most important and relecost recovery plus a fee per barrel. These contracts were
vant issues currently impacting the oil and gas industry in Mexdesigned for field development but with the right changes
ico. Featuring exclusive interviews with Mexicos main opinion
can equally be used for higher risk projects.
leaders and key industry stakeholders across the public and private
He went on to explain that although the new intesector, this annual publication examines in detail the events and
grated service contracts have so far only been used for
strategies that shaped the year in the industry and analyzes the
bringing companies in to boost production at mature
biggest challenges currently facing the country in terms of regulafields, he hopes that through finding a way to share some
tion, technology, and energy policy. For more information, visit
exploration risk, the contracts also will be used to make
mexicooilandgasreview.com.
14
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PERFORMANCE
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management
REPORT
16
Growth on track
Initial customer response following the opening of the
Midland facility suggests the company is on pace to
achieve its North American goals. While assuming its core
customer base initially would comprise the smaller independent operators, Kenner said Summit executives were
pleasantly surprised with myriad opportunities presented
by super majors, including potential major industry R&D
programs.
Following the opening of the Wyoming facility later
this year, further expansion plans include the establishment of a physical presence in Alberta, Western Canada,
and South America.
17
digital
OIL FIELD
A host of challenges in oil and gas pressure pumping operations has led to a convergence of computing power requirements at hydraulic fracturing well sites. (Images courtesy of
Lime Instruments)
Reducing risk
At a well location, the wellsite leader is the most visible
safety leader, so proactive planning by management
helps workers understand the risks and establish priorities for ensuring safety. One approach to minimizing
risks is to prevent operators from coming into contact
with moving machinery, high-pressure areas, and tools.
Through an advanced control and monitoring platform,
personnel are removed from the danger zones. The
National Instruments (NI) LabVIEW and CompactRIO
platform provides high-performance embedded processing coupled with rugged hardware capable of withstanding the harsh, remote environments of a well site. The
benefit to service companies is having the user interface
and embedded logic in one platform, which is traditionally not an option. Because embedded logic such as
field-programmable gate array (FPGA) code can be
stored on the control device, operators are able to monitor frac pump operations from the safety of the data van.
Essentially, the FPGA-based control platform provides
flexible hardware through software-defined, reprogrammable circuitry. FPGAs have been used for more than 30
years as digital glue logic between different components
July 2012 | EPmag.com
digital
OIL FIELD
on the same printed circuit board (PCB). The reconfigurable logic within the FPGA fabric has been ideal for
implementing complex state machines and applicationspecific digital circuitry that operate independently
from processor clock cycles, with higher reliability and
determinism. Over the years, the performance of FPGAs
has increased dramatically, with significant reductions in
power and cost. For this reason, the use of FPGAs in
embedded measurement and control designs has
expanded from simple glue logic to handling signal processing tasks such as custom digital filters, fast Fourier
transforms, and logic for proportional integral derivative control. A primary benefit of FPGAs for processing
is that several algorithms can now run in parallel, unlike
the sequential architecture of a processor.
Through a FPGA-based control platform, oilfield service companies can provide a step-function of safety for
applications in the oil patch, thus putting their safety
programs in the best position for reducing risks. Using
proven digital computing technology, advanced control
systems serve as autonomous control devices for wellsite
jobs that historically pose safety-related risks. In addition, an integrated control and monitoring platform is
able to address a host of applications, including pump
frac control.
19
digital
OIL FIELD
Data volume, velocity, variety, and value will force the energy
industry to adopt a new paradigm for data management.
20
,III
9-1
DRAGON
Make it happen
We're Changing
Mindsets
Weatherford's Tactical Technology and flexibility can change
the way you think about your service needs.
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Our Tactical Technology and services span the life cycle of a well:
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W
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your well.
Real-time management
People want the information they need and they want it now, Karren said.
Thats one of the reasons that Oracle is now a hardware and a software
company. We want everything in one box. It makes it easier for operators
because it lowers their total cost of ownership.
The company plans to spend US $4 billion to $5 billion a year on R&D, he
said, to make that integrated stack accessible to the end-user.
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production
OPTIMIZATION
The new light well intervention vessel will be the first of this
design, according to Eide Well Intervention. (Image courtesy
of Eide Marine Services)
SCOTT WEEDEN
Senior Editor,
Production Technology
sweeden@hartenergy.com
Read more commentary at
EPmag.com
Subsea Technologies, stack solution.
Statoil estimates it will be able to reduce well intervention costs by 60% with these vessels, which is
important with mature fields.
Performing these types of conventional jobs on
subsea wells with low volumes of oil in place is expensive, explained Oystein Arvid Haland, Statoils head
of drilling and well servicing. The LWI vessels ensure
both cost-efficient and safe operations.
Having more and new vessels of this category also
helps increase recovery from fields onstream by opening new zones in the well and stopping water production downhole, he said.
Jon Arnt Jacobsen, Statoils chief procurement officer, added, We have great ambitions and a long-term
perspective on the NCS. Using purpose-built rigs and
vessels in our operations is an important part of Statoils rig strategy.
The high number of subsea wells will require maintenance, and we are securing capacity in order to
meet this need, he explained.
Another LWI system being introduced in the North
Sea is from the Expro Group. The AX-S system uses a
vessel of convenience for well maintenance.
The company recently completed its final commissioning test on a subsea well in a fjord in Norway. All
the subsea packages were fully deployed twice in a
complete stack-up. Thirty-four tool runs were performed including calipers, production
logging, casing collar logging, gamma
ray, deep-set plug, crown plugs, and
wireline tractor.
29
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ADVANCES
MARK THOMAS
Senior Editor, Offshore
mthomas@hartenergy.com
Read more commentary at
EPmag.com
31
COVER STORY:
GLOBAL SHALE OIL REPORT
COVER STORY:
GLOBAL SHALE OIL REPORT
Shales
ripple
effect
goes
global
Unconventionals changing
global energy landscape
The impact of shale and other unconventionals such as
oil sands internationally was recognized earlier this year
by Saudi Aramco.
CEO Khalid al-Falih said in a speech earlier this year
that the level of unconventional oil being produced had
removed much of the debate from several years ago about
acute resource scarcity and the Saudi role. He further
highlighted the industrys new emphasis on unconventional liquids and the fact that shale gas technologies also
are being applied to shale oil.
Unconventional oil developments are dominated by
the oil sands of the US and Canada, with 2011 global
production amounting to 2.3 MMb/d.
This was a major factor in persuading Aramco not to
increase its oil production capacity significantly in the
mid-term (it was thinking about raising it to around 15
MMb/d), especially with additional rising conventional
output from countries including Brazil (from its giant
presalt reserves) and Iraq.
OPEC expects global output of unconventional oil to
rise to 3.4 MMb/d by 2015, mostly dominated by oil
sands; to 5.8 MMb/d by 2025; and to 8.4 MMb/d by
he rest of the world has been watching with interest and envy
as the US and Canada have hit the ground running with their
efforts to access huge shale reserves in a remarkably quick and efficient fashion. Despite the public debates still swirling around the
use of hydraulic fracturing, the amount of gas and unconventional
oil being recovered from major shale formations such as the Barnett, Marcellus, Haynesville, Bakken, Eagle Ford, Utica, Mississippi
Lime, and other areas is astonishing, as is the level of drilling activity
required. US oil production from shale has grown to more than
500,000 b/d since 2009 and could reach 3 MMb/d by 2020.
This tremendous push by the upstream industry to unlock its
unconventional reserves, much of it focused on gas, also has revealed
and made accessible resources of shale oil that a couple of years ago
were considered almost irretrievable thanks to advances in drilling and
production technology.
These oil resources have real economic value, especially when the price of
oil is compared to natural gas, making the latter far less profitable.
32
COVER STORY:
GLOBAL SHALE OIL REPORT
Siberian shale
In Russia, meanwhile, there has been growing political as
well as industry awareness of the rise of shale oil and gas.
Watching the shale revolution from Moscow, President
Vladimir Putin is well aware of Russias own huge potential
shale plays. Western Siberia already is a mature conventional producing oil and gas province, but estimates have
put one tight oil play the Bazhenov as having the
potential to hold much more in terms of reserves than
North Dakotas Bakken, for example.
The Bazhenov play itself covers 2.3 million sq km
(888,030 sq miles), which is basically the size of Texas and
the Gulf of Mexico put together. With such a large potential play to explore, many see this as one of the strategic
reasons why western players such as ExxonMobil and Statoil made their technical agreements with Rosneft, which
currently estimates reserves of 18 Bbbl on its own
Bazhenov acreage.
With Russia already producing around 10 MMb/d, the
Bazhenov has the potential to add a further 1 MMb/d to
the total by 2020 if the country can prove the play and
bring in enough rigs. The beauty of the area is, of course,
that there is already a very established pipeline network
for the whole Siberian area.
34
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COVER STORY:
GLOBAL SHALE OIL REPORT
Tax incentives
Incentives are needed, of course, and this is where Putin
revealed his long-term plan by announcing the tax incentives for tight oil earlier this year in Western Siberia.
The president mentioned a target figure of 2 MMb/d by
2020 from Western Siberia, and to achieve this Rosneft will
have to employ the multistage fracing and infill drilling
expertise of companies such as ExxonMobil and Statoil via
their cooperative partnerships.
As part of Rosnefts deal with ExxonMobil, its independent subsidiary, RN Cardium Oil, acquired 30%
of the majors stake in the Harmattan acreage in the
Cardium formation of the Western Canada basin in
Alberta, Canada. The Cardium formation is an active
unconventional oil play in which ExxonMobil has a significant acreage position, and this is likely to be a vital
source for the development of technologies for Russias
unconventional oil reservoirs. Crucially, ExxonMobils
deal specifically states that it enables the companies to
jointly develop tight oil production technologies in
Western Siberia and that it also will enable them to
later discuss undertaking joint projects to explore
and develop prospective areas with unconventional
oil potential in Russia, according to their official
statement.
From Rosnefts perspective, the associated program of
technical and management staff exchanges agreed to by
the companies and their affiliates includes positions in
geology, geoscience, field development, well drilling,
finance, logistics, and HSE.
Statoils cooperation agreement is similar, covering both
large offshore Arctic areas in the Barents Sea and the Sea
of Okhotsk but also onshore, including conducting joint
technical studies on two Russian land assets.
The joint studies will focus on the North-Komsomolskoye heavy oil field in Western Siberia and the shale oil
play in the Stavropol area in southwestern Russia, where
Statoil can bring its unconventional experience from the
US to the benefit of this proven but unappraised play.
The Stavropol area is run by Rosnefts unit Stavropolneftegaz, which is currently exploring and developing
around 40 licensed blocks. As the majority of its conventional fields are significantly depleted, the company extensively employs enhanced recovery techniques to ensure
stable production efficiency, according to Rosneft officials.
COVER STORY:
GLOBAL SHALE OIL REPORT
WETA L L I [
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T,
37
COVER STORY:
GLOBAL SHALE OIL REPORT
with Rusa Resources earlier this year for shale gas exploration covering more than 38,000 sq km (14,670 sq miles)
near the Dampier and Bunbury natural gas pipelines, and
Tap experts indicate that Devonian shale oil also will be
targeted in the development.
Falcon Oil & Gas focuses on opportunities outside of
North America and recently highlighted the Beetaloo
basin in Australias Northern Territory, which is equivalent in size to the net acreage of the Bakken play in
North Dakota. Falcon has four licenses covering the
majority of the basin and drilled one well, Shenandoah1, with estimated recoverable reserves of 18 Bbbl of oil
and 64 Tcf of gas.
Falcon has a joint venture deal with Hess for the
majority of its acreage, with a seismic program currently
under way and an option to drill five wells in 2013.
Australian independent Exoma Energy Ltd., meanwhile, is pushing its central Queensland permits. It went
on record late last year saying that testing of core recovered from one well had confirmed the Toolebuc shale is
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COVER STORY:
GLOBAL SHALE OIL REPORT
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This annual publication , available in print . iPad . eBook and online editions , gets to the heart of the issues
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A GA S RF V I FW
COVER STORY:
GLOBAL SHALE OIL REPORT
ties are making headway in expanding regional producWith Ecopetrol looking to produce more than 25,000
tion capacity.
b/d from its unconventional shale fairway by 2015, the
Conventional and unconventional areas on the table
Middle Magdalena basin could prove to be a boon for
in Round 2012 will be awarded to the successful bidders
global shale players.
in November, and contracts will be signed the following
Triple play in Neuqun basin
month. Meanwhile, Ecopetrol said it plans to spend
The substantial oil and gas potential of the Vaca Muerta
approximately US $8.5 billion in 2012, with $1.4 billion
shale play, said to be three times as thick as the Eagle
earmarked for new exploration.
Ford and relatively permeable, has created a buzz over
A month following news of Colombias bid round,
Argentine shale development. According to the
Calgary-based Canacol Energy Ltd. reported
US Energy Information Administration,
that subsidiary Carrao Energy Sucursal
Argentina has more than 774 Tcfe of
Colombia had entered into a farmcombined shale resources, the
out agreement with ExxonMobil
worlds third-largest of such
Exploration Colombia Ltd. to
reserves.
explore 126,000 net acres
The Neuqun basin is
with exposure to a potenone of four major Argentially large unconventine shale basins that
tional shale oil play.
bears particularly favorExxonMobil would
able properties for oil
earn 50% of Canacols
and gas production
40% interest in a nonand has historically
operated asset in
produced the largest
Colombias Middle
share of the countrys
Magdalena basin, with
conventional hydrocarExxonMobil expected
bons, according to Hart
to carry the cost of
Energy Research Groups
drilling and testing up to
Apache operates in the arid Patagonian plateau
Argentine shale: Assessthree wells targeting conin the Neuqun Basin of Argentina.
ment and outlook to 2030.
ventional and unconven(Photo courtesy of
The basin contains three
tional prospects in the La
Apache Corp.)
organic-rich shale formations:
Luna and Rosablanca formathe deeper Mid-Jurassic-age Los
tions. Both of these are proven oil
Molles formation, overlain by the Late
source rocks in the area, Canacol said
Jurassic/Early Cretaceous-age Vaca Muerta,
in a public statement. The first two wells will
and the Early Cretaceous-age Agrio formation.
be drilled vertically and the third as a horizontal multiJurassic and Cretaceous sedimentary sequences occur
stage fractured well. According to the companies, total
at depths ranging from less than 2,134 m (7,000 ft) near
potential investment on the block is approximately $50
the south basin to more than 4,572 m (15,000 ft) at the
million.
basin center and up to 1,000 m (3,000 ft) in thickness.
According to Canacol, the VMM 2 E&P contract in
According to the report, the organic shale of the Vaca
which ExxonMobil will participate is one of three adjaMuerta formation is considered to be the Neuqun
cent contracts that expose the company to a promising
basins primary hydrocarbon source rock. The shale is
shale oil fairway in the thick Cretaceous La Luna and
found at depths greater than 2,743 m (9,000 ft) in the
Rosablanca formations, which the company says is analobasin center, where it is more than 213 m (700 ft) thick,
gous to the South Texas Eagle Ford formation. Vertical
and while thinner than the Los Molles shale, it has
La Luna wells drilled in the Totumal and Butarama
higher total organic content and a wider areal extent,
fields in the Middle Magdalena basin have tested rates
the report notes. More significantly, the Vaca Muerta
up to 900 b/d of light oil, the press release notes.
has a productive area of approximately 60,088 sq km
The La Luna shale play also is considered the primary
(23,200 sq miles), over half of which is in the oil window
source rock found in Venezuelas Maracaibo basin,
around the shallower basin margins, according to Hart
which reportedly contains more than 250 Bbbl of
Energy Research.
recoverable oil.
42
COVER STORY:
GLOBAL SHALE OIL REPORT
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INTELLIGENT
OPERATIONS
any of the companies at the forefront of the intelligent energy revolution have now reached a point
where they have, to a large extent, achieved what they
originally set out to do. But all readily admit there is still a
very long way to go.
BP has taken a lead role from the beginning with its
Field of the Future technology flagship, with the companys digital oilfield program having now run for more
than 10 years. The program now routinely supports more
than 80% of the operators top producing wells more
than 1 MMboe/d of net production.
BP outlines its activities so far into two distinct phases
and says the characteristics of these phases also apply
more generally within the industry.
Phase 1, covering years 2000-2005, dealt with demonstrating the validity and potential of the digital oilfield
concept. This phase dealt with engaging asset and major
project teams in understanding the potential value in new
ways of working by accessing real-time operational information. In an R&D sense, Phase 1 was about developing
and integrating a diverse set of tools to support technology trials and prove the concept.
Value delivery
44
INTELLIGENT
OPERATIONS
that we have made a huge step forward in the way we can operate our assets. We
therefore conclude that we are at or close to the end of Phase 2 and a complete
impact model cycle and need to consider if and how an equivalent step change
might be achieved over the next 10 years, he said.
The range of industry experience raises an interesting question about options
for the next phase of activity, however. These, he said, range from a focus on
embedding the success to date as business as usual to targeting the next class of
difficult problems or operational risk reduction. Using the skills and experience
from Phase 2 could unlock even greater value and further transform the work of
energy companies.
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Performance breakthroughs
Behind all this is the fact that the resource base of the industry, although large, is
finite. BP expects resources to increasingly come from fields that are challenging
to produce, both technically and geographically.
Within its own resource base, the expected mix will comprise increasing
amounts of unconventional oil and gas in future years. Taken together, these factors lead to a demand for continuously improving efficiency in what is essentially a
commodity business, requiring appropriate technology to enable performance
breakthroughs. The digital oil field has become a key element of the toolkit across
the industry for meeting these challenges, according to BP.
But while the concept of digital oil fields is held in common across multiple
upstream operators and their suppliers, there has been difficulty in producing an
agreed industry definition of what constitutes a digital oil field or associated corporate program, Roberts said.
Reasons for this include the fact that different companies:
have asset portfolios that drive different priorities and focus areas for development and application;
set out with different relative strengths and weaknesses in their operating and
technology competencies;
might have often created their initiatives by bundling largely preexisting programs; and
typically have an individual business context and organizational design that
impacts the ability (positively or negatively) to progress a visionary and multidisciplinary technology concept through to sustained adoption and application.
He also pointed out that the digital oil field is a broad, cross-functional concept
with potential to fundamentally alter the way the industry operates oil and gas fields.
Its implementation is complex, and business cases can be very varied, he said.
The underlying technology stack has numerous components from sensors
through communication buses to complex analytical algorithms to digitally automated actuator valves. This means the technical permutations for creating value
coupled with the workflow improvement opportunities are numerous.
Decomposing the concept into tractable pieces in order to make progress presents any company with a potentially bewildering array of choices from the total
potential technical and workflow scope. These choices have been made by each
operator such that, to the best of their knowledge and ability to predict, they will
maximize the likelihood of achieving a successful, sustained value-adding outcome.
Conventional
isdom says
at multiple-zone
frac systems
are only for
open holes.
At NSC-Tripoint,
we do things
a little
unconventionally.
INTELLIGENT
OPERATIONS
INTELLIGENT
OPERATIONS
Completion Tools
Service Tools
TCP/DST Tools
331.330.8180
www .NSCTripoint.com
NSC-Tripoint TM
The way completions should be
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eople are committed to
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tered in previous drilling. Offset well information was limited, which increased potential risks and uncertainties.
Eni teamed up with Schlumberger Data & Consulting
Services (DCS) to conduct a detailed predrill pore pressure study. It was important not only to predict the presence of overpressure but also to better understand its
cause. Following a thorough audit of all available well and
seismic information, specialists generated pore pressure
models for each offset well using two independent methods to increase confidence. One method, described by
Eaton (1975), uses a normal compaction trend line. The
other, described by Bowers (1995), involves establishing
seismic velocity and effective stress.
Base shale pressures were estimated using seismic velocities and offset well data. Models were calibrated against
direct measurements of formation pressure, leak-off tests,
and pore pressure-related drilling events observed in
drilling reports and logs. Then predrill pore pressure models were constructed for each of the four planned well locations using different methods for shales and permeable
formations and taking into account the buoyancy effect of
gas. Finally, Eni and Schlumberger engineers and geoscientists agreed on predrill fracture gradients and pore pressure
estimates to guide casing design, mud weight programs,
and contingency plans.
The T2 exploration well in the Tarakan basin proved the
most challenging well in the campaign. According to seismic interpretation, target reservoirs in the T2 were laterally continuous with gas-charged sands in an offset well.
The offset well had a safe mud weight window up to 2
lb/gal. While measured formation pressure was elevated in
the offset well, the predrill study predicted additional overpressure of nearly 1.5 lb/gal in the planned T2 well due to
gas buoyancy. Since this well was drilled at a water depth of
825 m, low fracture gradients were estimated, which further constrained the mud weight window.
54
There is more
to the story
READ MORE ONLINE
EPmag.com
Post-drill review
Enis drilling campaign began with rather limited information on pore pressures and fracture gradients. The predrill
study had established that overpressures in target reservoirs
EPmag.com | July 2012
UNITED ELECTRIC
UE CONTROLS
55
During the Libyan crisis, companies found that having an established security framework in place along with appropriate training gave employees options to choose from during the crisis and
helped ease their concerns. (Photos courtesy of AKE)
many hazards, be it unrest, pipeline bombings, abductions, or rising crime. In response to these ongoing problems, the energy sector has continued to lead the way in
developing safe working practices for its staff, building on
the strong culture of HSE practices first implemented for
employees in the North Sea.
What is important to note is that risk mitigation does
not simply help prevent accidents or harm. It also can save
or help earn money. For instance, staff who have undergone risk mitigation training are more confident at work56
Libyan crisis
A destroyed tank in Libya is a stark reminder of the security
dangers that oil and gas industry personnel face in areas of
domestic upheaval.
New
Tech
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8-10 October
San Antonio,
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fracline com
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Statoil
dmg :: events
Armed motorcades
In 2003, as the dust settled in post-invasion Iraq, a plethora
of security companies sprang into action, recruiting ex-military personnel and amassing droves of armored vehicles
to escort clients around in convoys.
Many of these armed and high-profile motorcades were
characterized as driving aggressively and were perceived as
taking a shoot first, ask questions later approach. The
subsequent congestion, car accidents, and horrific civilian
casualties that came about as a result of their actions
stoked massive resentment from the Iraqi public.
This in turn resulted in a rise in militant attacks against
both the security contactors and their clients. More than
300 civilian contractors were killed in Iraq between 2003
and 2011. Evidently, if a company responds to a risk by
SEPTEMBER
WORLD
HEAVYOIL
10-13, 2012
ABERDEEN , UK
- - L L LL A _ J I G
D' , d LGF, L
'J L L I F i L
world heavyoilcongress.com
REGISTER TO ATTEND Enter reference code EPMAG
July 2012 | EPmag.com
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LAND
SEISMIC
Weight-drop system
After studying numerous low-impact sources, the team
landed on the idea of a man-portable weight-drop system.
While weight drops are an old concept, it is actually a challenge to design light-weight, portable, and safe weight-drop
devices. After many iterations, a significant number of
improvements were incorporated into designs. In the latest
designs, the device is a 3-m to 3.6-m (10-ft to 12-ft) PVC
pipe mounted on a standing frame. The top of the PVC
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For processing,
the very high spatial sampling provided superior results for refraction statics, linear noise removal, and migration. Data obtained via
this type of acquisition at oil shale depths are nearly as
high-quality as those obtained via stronger sources.
Given results from the initial tests, a follow-up experiment at Shells Freezewall pilot was undertaken. This was a
tomographic experiment to evaluate properties in the
vicinity of the freezewall. The weight-drop source was
deployed at a very fine scale at the surface and recorded
into several downhole geophone deployments. The experiment was a success in measuring tomographic arrival
times and obtained observable changes in rock velocity
under the process of freezing. This experiment could not
have been performed with dynamite or vibroseis in the
very tight confines of the operational environment.
Finished processing exhibits oil shale data quality comparable with viobroseis acquisition. However, it must be
stressed that the weight-drop system is a weak source.
Under no circumstances will the data quality data exceed
that of stronger sources with identical acquisition geometries. For now, a decision to use a weight-drop/cableless
system should be based on trade-offs in data quality for
lowered cost, lowered safety risk, and lower permit restrictions. This trade-off is compelling for shallow objectives
such as oil shale.
Acknowledgements
Key support and contributions were made by Shell geophysicists Jorge
Lopez and Patsy Jorgensen. The authors wish to thank primary contractor RII under direction of Harold Merry and Jim Roy for continued assistance in development of the man-portable source. Other
suppliers also were instrumental to results, including Ascend-Geo
and Oyo-Geospace. This paper is based on a presentation given at
the 2011 Society of Exploration Geophysicists annual meeting and
has been reprinted with permission from the authors.
The ultradense freezewall tomography test was able to observe
changes in rock velocity during freezing.
62
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ION is driven to solve the toughest problems in unconventional reservoirs. For one operator
t.
looking to optimize well locations in the Niobrara, ION conducted a new wide azimuth
seismic survey combining ION's expert survey design and planning, data acquisition , and
advanced data processing from GX Technology. As a result, the client was able to quickly
and efficiently locate and complete three new horizontal wells, achieving a 5-10x increase
AREAS OF EXPERTISE
- Unconventional Reservoirs
Challenging Environments
Complex Geologies
in productivity relative to previous wells in the area. Look to ION for unique innovations
Basin Exploration
Reservoir Exploitation
,
.
( n
LAND
SEISMIC
Land technology
surpasses expectations
New acquisition system handles harsh environments.
Binu Joy and Tim Hladik, INOVA
eophysical service providers rely heavily on equipment manufacturers for integrated solutions that can
support the smallest 2-D projects to the largest, most complex 3-D high-productivity Vibroseis (HPVS) operations.
BGP, a subsidiary of China National Petroleum Co. (CNPC)
and the worlds largest land seismic contractor, continually
seeks cutting-edge seismic technology to maintain its competitive edge for providing high-quality data acquisition
services. BGPs numerous seismic crews operate across the
globe in all types of challenging terrains and extreme
weather conditions and require a stable, easy-to-use recording system that can perform in tough seismic programs.
Nearly two years ago INOVA Geophysical was launched
as a new entrant in the land seismic equipment market.
A strong working relationship between BGP and INOVA
has combined operational excellence with technological
innovations to develop advanced products to meet the
growing demands of the seismic industry. In addition,
BGP evaluates INOVAs new equipment and conducts
extensive field tests to make sure the products meet its
standards of excellence before making an investment in
new seismic systems.
In 2011, BGP Domestic agreed to test INOVAs new
G3i cable-based acquisition system in the Turpan-Hami
(Tuha) basin in the eastern part of the Xinjiang Uygur
Autonomous Region in China. The Tuha basin is the
G3i components are crafted from stainless steel, aircraftgrade aluminum, and high-strength polycarbonates.
(Image courtesy of INOVA)
The system
With its ruggedized ground electronics manufactured
from high-strength polycarbonates, aircraft-grade aluminum, and stainless steel, the G3i system easily can
operate in harsh environments. Power-down-the-line technology eliminates the need for large quantities of batteries
and provides seismic crews a significant reduction in the
amount of ground equipment required. Using fiber-optic
baselines, the system delivers more than 100,000 channels
in real time.
The G3i systems architecture consists of a single software platform supported on multiple central recording
system options for optimal operational flexibility. Its
box-cable-box architecture also allows operators to easily
locate and resolve field faults. In the event of a remote
acquisition module, fiber tap unit, or power supply unit
failure, trained crew technicians with proper equipment
can repair the unit. Furthermore, the integration of
INOVAs Vib Pro source controllers and Connex Vib
navigation system with G3i provides greater efficiency
during HPVS operations. Advanced Vibroseis techniques have been widely accepted by energy companies
for achieving densely sampled, high-quality data acquisition more cost-effectively.
Results
BGP planned to deploy approximately 5,000 channels
to administer two separate tests, the first beginning in
November 2011 and the second in February 2012. With
a stringent test plan in place and new G3i equipment,
INOVA was well positioned to start the joint field test program. Since the BGP crew was unfamiliar with the G3i
64
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LAND
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LAND
SEISMIC
Collaboration
pays benefits
This joint collaboration and successful
testing of the G3i system benefited both
companies. BGP engineers were pleased
with the results of the
field tests and acknowlG3i has been rigorously tested around the world in regions such as Canada and China to assure high-quality edged the performance of INOVAs G3i
data acquisition. (Image courtesy of INOVA and BGP)
system. After completing the tests, the company formally accepted G3i and
While performing aggressive slip-sweep with 28-second
purchased 10,000 additional channels for its upcoming
sweep time, 5-second listen time, and 5-second slip time,
seismic projects in Western China later this year. Having
the G3i central system handled multiple overlapping
INOVAs high-performance G3i acquisition system as
shots without computing delays. In all, BGP executed
part of its equipment portfolio offers BGP an advantage
more than 22,000 vibrator points and achieved 100% effiin winning project bids from global oil and gas explociency levels during the HPVS tests since there were no
ration companies.
delays in vibrator starts or file output between vibe starts.
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These rock properties give a clear vision of the behavThe tool processes the different waveforms from the varior of the formations in the reservoir, allowing the geolious receivers downhole while drilling and saves them to
ogist and the geophysicist to complete their modeled
the tool memory, which is later retrieved with the drill
picture on the behavior of the rocks to outside and
string and delivered to the operator. This gives a comlocalized stresses. These data also help in quantifying
plete picture of the waves and how coherent these are to
the production plan for the entire cluster to start with
each other, which is called semblance.
and the whole field at the end.
As shown in Figure 2, the far right
track (coherence track) is the semblance variable density log (VDL). The
coherent arrivals are then processed by
the engineer generating the compressional slowness curve (DTC) and the
shear slowness curve (DTS), which are
plotted in white on top of the coherence image.
The VDL is a 3-D chart of slowness in
microseconds per foot versus depth,
which, together with the color intensity,
shows the coherence percentage.
On the other hand, the tool firmware
compresses the semblance image for
efficient real-time transmission to the
surface even with the limited bandwidth
of the LWD mud-pulse telemetry. The
surface software then decompresses the
dataset and enhances the contrast in the FIGURE 2. A generic example showing the semblance VDL (dark blue column on the far
right) together with the DTC and DTS slowness curves traced in white (DTC left on black
image, providing an output of a realtime semblance VDL log that is reliable and red and DTS right on black and red).
and continuous.
The operator used the Youngs modulus values to calcuThe field engineers use the high-quality VDL data
late the load-versus-strain relationship, the overburden
along with the software interactive tools to generate the
pressure, and the force the rocks exert under specific
coherence arrivals and compressional and shear slowstrain in that particular reservoir. Knowing the localized
ness curves. Important formation properties such as
stresses of the sweet spot facilitates the modeling of the
porosity, pore pressure, and rock mechanical properties
frac jobs and thus optimizes the production planning for
can then be computed from the measured DTC and
the entire field. And the operator used Poissons ratio and
DTS values.
shear modulus as stiffness measurements to determine the
South American well measurements
horsepower needed to frac the reservoir rock.
An operating company in South America was drilling in
All these rock characteristics provide a clearer picture to
a new area and needed to improve its reservoir knowlthe reservoir engineers and the geologists on how the
edge and geomechanical field information. The comrock will behave under different conditions, and many
pany decided to use the Weatherford ShockWave sonic
results can be obtained from them. These data aid in
tool to obtain this information for every first well in
proper reservoir analysis and modeling as well as future
each cluster of wells.
planning of new wells.
The properties of the formation required in this particThe South American operators results included
ular case included Youngs modulus (E), Poissons ratio
improved production planning for the new field and
(), bulk modulus (K), and shear modulus (G). These
also optimization of its reservoir model. The company
would provide a better production evaluation picture and
was able to cut the number of wireline trips by using
also help evaluate the formation mechanical strength to
the sonic LWD tool and get rock mechanical data
guide the production planning of the entire field.
while drilling.
70
C-A4L5 FDR T
Expanding
The Eag le Ford shale is rapidl y moving into the top tier of U.S. shale
plays, propelled by excellent well results across its dry gas, rich gas
and oil-prone areas. Now, the Pearsall shale play is growing in south
Texas which expands the region 's activities. The Eag le Ford also is
spreading out to the Olmos and Escondido , primarily fractured
through sandstone and the Austin Chalk .
Timothy L. Dove
do 141
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Bruce H. Vincent
President
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The 2012 DUG'" Eagle Ford Conference & Exhibition will focus on
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75
PRODUCTION
LOGGING
System provides
flow profiling on demand
New DAS, DTS measurements provide better reservoir illumination.
Sudhendu Kashikar; Silixa
along the entire length of the well. The acquired data can
be used for production optimization with detail that
would be not possible using conventional point sensors.
characteristics along the well bore. In addition, the propagation of the acoustic energy along the well bore can be
analyzed in space-frequency domain to determine the
speed of sound and measure the fluid composition and
velocity.
Field testing
To test the system, field surveys were conducted on several
wells offshore Norway. These multizone completions featured existing fiber installations for downhole permanent
FIGURE 2. The data array processing shows the ridge corresponpressure and temperature gauges. Acoustic measurements
ding to the acoustic waves propagating through the fluid.
were made along the preexisiting surface and downhole
fiber infrastructure. During this trial, the existing downhole sensors were disconnected from their topside instrupling. The determined flow speed varies with depth in the
mentation. Neither a dedicated installation of fiber nor
well, corresponding to the change in hydrostatic pressure
any optimization of the cable construction or connectors
for a section of tubing with a uniform inner dimension
was performed. The surveys in this study all were perand a gradually sloped well trajectory. The instantaneous
formed on single-mode fibers.
and locally determined flow is roughly within +/- 0.3
The system measured the phase of the acoustic signal
m/sec (1 ft/sec) [that for this well is 10%] of the actual
coherently along the fiber-optic cable. Therefore, it was
flow speed.
possible to use a variety of methods to identify the presFuture diagnostics
ence of propagating acoustic waves. Digital signal processAs demonstrated, the iDAS can detect the acoustic field
ing helped transform the time and space data into a
in the variety of oil wells surveyed and use its ability to
diagram showing frequency and wavenumber in the spacecapture the true acoustic field to enable detailed analysis
frequency domain. Frequency-independent propagation
of the acoustic signal. There is a sufficient signal to allow
caused a line in that domain.
further processing of the recorded acoustic field. The
Figure 2 shows the time and space signal and the corredemonstration of clear dispersion diagrams demonstrates
sponding space-frequency domain space. Using the lower
both the quality of the recorded signal and the presence
figure, the speed of sound can be calculated. The freof propagating acoustic signals that can be used to quanquency band over which the speed of sound can be detertify distributed composition and flow velocity along the
mined is more than sufficient for compositional and flow
well bore. The signal quality also holds potential for develcharacterization. With the system, the speed of sound can
oping other diagnostics techniques in the future.
be evaluated over a large section of the well and, therefore,
can measure the distributed variations of the flow
composition and characteristics along the well.
The technique is particularly powerful for
determining the fluid composition of the flow.
For example, gas has a speed of sound of around
600 m/sec (1,987 ft/sec), whereas water has a
speed of sound around 1,500 m/sec (4,920
ft/sec). This analysis is facilitated by the systems
ability to determine the full acoustic signal
(amplitude, frequency, and phase).
The two lines in the first and third quadrants
correspond to the speed of sound traveling up
and down the well. These two lines can be analyzed to reveal the Doppler-shifted sound speeds
for upward and downward propagating sound
within the fluid of interest. Figure 3 shows the disFIGURE 3. The Doppler shift between the upgoing and downgoing speed of
tributed flow determined in a gas injector based
sound provides fluid velocity measurements.
on Doppler shift measurements for a 30-sec samEPmag.com | July 2012
77
PRODUCTION
LOGGING
HP/HT logging
challenges equipment
E&P activity increasingly involves operations in HP/HT downhole conditions. Engineers are
developing advanced designs and are using new materials to address these challenges.
Joseph Edone, Scientific Drilling International
Tool improvements
Application of hybrid circuitry (hc) in tools has
expanded temperature limits. The circuits use ceramic
substrate instead of typical polyimide materials. Each
company using this technology has created proprietary
methods of attachment for individual components.
Hybrid circuits are used in the quartz-based pressure
transducer for very high accuracy and reliability.
Typically, companies put conventional logging tool electronics in Dewar flasks. This helped meet the early challenges of HP/HT environments. As logging expands into
more extreme environments that push beyond the safe
operating envelope achieved with flasks, new technology
is needed to meet the ever increasing demands.
New developments in elastomer technology have
allowed operations up to 321C (610F). Parfluor Ultra
material (PTFE) is used exclusively for these temperatures. The use of metal seal technology has expanded
this upper limit to more than 427C (800F) for limited
times downhole.
Qualification
Special qualification is needed on all components and
modules used in the production logging string. Heat qualification is needed for all tools prior to running in the
well. Clear operations plans are needed to limit the time
in the well at elevated temperatures. It is very important to
78
Tubing that was exposed to H2S failed at HP/HT. (Images courtesy of Scientific Drilling International)
work together and make sure all limitations are understood. The detrimental effects of temperature can be seen
when the electronics of a new tool are compared with a
previously used circuit board. Rigorous job preparation is
critical to success in HP/HT logging.
Intensive post-job maintenance is needed for all HP/HT
equipment. Many sensitive components, though in working order, are routinely replaced to ensure optimum performance on subsequent logging jobs since temperature
cycling often results in failure. High temperatures are particularly wearing on O-rings and seals, so all are replaced
before the tools are reassembled and tested.
PRODUCTION
LOGGING
HT applications
Operations in the geothermal environment are considered to be in the ultra-HP/HT or even HPHT-hc classifiEPmag.com | July 2012
HP/HT tools can be organized into three categories, selected according to commonly encountered technology thresholds. Classification system
boundaries represent stability limits of common
well-service tool components, elastomer seals, and
electronic devices.
79
UNCONVENTIONALS:
NIOBRARA
A Noble endeavor
The companies that are willing to follow this checklist
are encountering considerable success. One company
that seems to do no wrong these days witness its success in the Mediterranean Sea is Noble Energy.
Ted Brown, a senior vice president at Noble, provided
the opening address at DUO. He talked about the companys current position in the play and its plans to ramp
up production.
The company has plans to drill more than 150 wells
this year in the Niobrara. It is testing longer laterals,
expanding the play to the northeast, and studying
well spacing.
UNCONVENTIONALS:
NIOBRARA
A Marathon position
With about 1 million net acres across four unconventional plays in North America, Marathon Oil Corp. has a
resource base that should provide more than 1 Bbbl of
incremental reserve bookings over the years, said James
Bowzer, vice president, North American production
operation, Marathon.
The company entered the Niobrara about 18 months
ago. We picked up about 200,000 acres in this play,
Bowzer told DUO participants. We have about 144,000
EPmag.com | July 2012
Weve got two rigs running right now. We are focusing largely in Weld County at this point in time. Were
looking at additional spacing tests during 2012.
For us, we have consistently said that school is still out
on the Niobrara. There is no doubt there are going to
be sweet spots. The Wyoming portion of the play in the
northern portion of the basin doesnt look as good. There
are portions of the Colorado play that look really good.
As you go further into the Wattenburg field, it gets
pretty gassy, he explained. Given where gas and NGL
prices are in the Rockies, thats not our target.
The real issue is going to be how to find the sweet
spots, he said. We havent eliminated or defined anything. I think it took us over a year in the Bakken to get
that kicked off.
There are quite a few targets to test here. Clearly, there
is not as much oil in place as in the Bakken. But you dont
need a Bakken to make a good play. So we dont let that
fool us when making our decisions, he added.
UNCONVENTIONALS:
NIOBRARA
Whitings expansion
The first time Denver-based Whiting Petroleum Corp. presented at one of Hart Energys conferences, its market cap
was about $500 million. By May 2012, the company had
grown to about $6 billion.
With solid success in the Bakken, Whiting has
expanded its operations in the Niobrara, where it
brought in a couple of wells at 400 boe/d.
There are a great many opportunities facing us,
Chairman and CEO Jim Volker told DUO attendees.
We have about 6,000 potential locations to be drilled
horizontally for unconventional oil in the US. We are
really going to get after it in the next couple of years.
Today, Whiting is producing about 80,700 boe/d, a
82
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CONSTRUCTION
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we can bring the whole thing over from the Far East,
topsides and all, rather than do the hull there and the
topsides in the West, he said. This further adds to the
time-saving and earlier revenue-generating advantages
of using this vessel for such jobs.
He added that a future option might be for FPSOs
which are just a big box to be built without engines
instead being transported by the Vanguard to its location
for mooring.
The offshore industrys requirement to deploy increasingly large and heavy floating production units (FPUs),
not only FPSOs but tension-leg platforms, semisubmersible platforms, and spars, is what drove Dockwise
to brainstorm and eventually go ahead with its Type 0
Super Vessel. With many such facilities weighing more
than 50,000 metric tons, the vessels are well beyond the
capabilities of the existing fleet of self-propelled semisubmersible transport carriers.
Until now this has led to these FPUs being shipped in
segments and then integrated at their destination. For
spars, for example, their own size has been limited by the
size of our vessels, said Erickson.
Being able to transport larger integrated structures has
the benefit not only of saving time in terms of hookup
and commissioning, but it also reduces risks and insurance costs as well as bringing forward first oil or gas.
A grand scale
The sheer scale of the Vanguard is impressive, with a carrying capacity of 117,000 metric tons, a length of 275 m (902
ft), and a beam of 70 m (230 ft). This vessel is the largest
semisubmersible ever built and can easily carry ships that
are giants in themselves. Erickson pointed out that Dockwise also is in negotiations with the US Navy over possible
applications, including the transportation of aircraft carriers. It also has a 50% larger lifting capacity and 70%
greater deck area than the currently largest active heavy
lift ship, the Blue Marlin, another Dockwise vessel.
The Dockwise Vanguards movable casings mean it is able to
carry fully integrated structures with overhang available on all
sides. The vessels first contracted job at year-end 2012 will be to
transport the Jack/St. Malo semisubmersible platform for Chevron
from South Korea to the GoM. (Images courtesy of Dockwise)
84
I
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-
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Seaway Heavy Lifting
Seawa y Heavy Lilting Contracting Lid.
Lophihs Business Centre II , 237, 28th October Street , 3035 Limassol , Cyprus
Phone : +35 725 029 090 - www shl .com .cy
CONSTRUCTION
& INSTALLATION
To put the scale of the vessel into perspective, the Vanguards first job scheduled for December this year after its
handover from South Koreas Hyundai Heavy Industries
is to transport Chevrons large Jack/St. Malo semisubmersible platform hull from South Korea to the Kiewit
yard in the US. Erickson said the platform was well
within the capabilities of the vessel.
The second contract currently in 2013 is to transport
Enis circular Sevan 1000-design Goliat floating production platform (with fully integrated topsides) from South
Korea to Norway, while its third at present will be to transport Statoils Aasta Hansteen spar platform in the first
half of 2015 to Norway. The latter spar buoy, with an
approximate length of 200 m (656 ft), diameter of 50 m
(164 ft), and weight of 45,000 tonnes, is close to the
maximum capacity of the Vanguard, Erickson said.
275 m
Breadth
Depth
Draft submerged
Water depth
above main deck
Deadweight
Max. Speed
Propulsion
70 m
15.5 m
31.5 m
Total power
86
16 m
117,000 metric tons
14.5 knots
Two diesel-electric main
propulsion trains and two
retractable azimuth thrusters
27 MW
guard and FPSO will be able to weathervane around the production systems turret.
shore dry-docking concept. A unique feature of the drydocking option is that both the anchor lines and the flow
risers will remain connected to the FPSOs internal or
external turret mooring system, enabling the combined
vessels to freely weathervane around the FPSO turret
mooring system.
Regarding the revolutionary design of the Vanguard,
there is no bow that is more striking, allowing an FPSO
for example to overhang beyond both the bow and stern.
Its navigation bridge, accommodation area, and lifeboats
are situated on the starboard edge of the ship (although
the captain also is able to steer from a portable module
on the port side if necessary).
The whole design was done with the aim of maximizing
cargo space and also features repositionable casings that
give it greater flexibility in terms of its cargo-carrying
options. Specialist shipbuilding engineering agency
DeltaMarin of Finland designed the vessel in detail.
Overall, it allows for large amounts of water to flow
along the entire deck of the vessel without there being
any chance of water entering the confines of the Vanguard
itself. With the ability to sink itself in the water to allow up
to 16 m (52 ft) of water above its deck, this first-of-its-kind
vessel has a maximum submerged draft that is 3 m (10 ft)
more than the existing largest vessel, the Blue Marlin,
allowing even larger structures to simply float on before
the vessel is raised again.
As the offshore industry continues its journey into
deeper waters and remote regions with little nearby
infrastructure, other mega-carriers are likely to emerge.
Dockwise itself may well opt for a second similar vessel in
due course. The cost is not inconsiderable the Vanguard
will cost the company a total of US $240 million. But the
rewards, with around $100 million in contracts already
received for the vessel and more in the pipeline, are likely
to be substantially more.
July 2012 | EPmag.com
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Aft
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CONSTRUCTION
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There is more
to the story
READ MORE ONLINE
EPmag.com
MERITORIOUS AWARDS
FOR ENGINEERING INNOVATION
the Drilling Fluids category. From left to right are Lee Conn, Steve Orr, Rhonda
Thomas.
Halliburton received an
honorable mention in
the Drilling Fluids
category for its Tuned
Spacer V spacer fluid.
From left to right are
Dr. Sam Lewis, Rhonda
Duey, and Paul Boddy.
TESCO Corp. received an award for its XCD3 Casing Drill Bit in the Drill Bits
category. From left to right are Bryan Dudman, Robert Utter, Julio Quintana,
Tayvis Dunnahoe, Dietmar Neidhardt, and Paul Lonsdale.
90
Baker Hughes received an award for its Vision Web-Based Monitoring System in the Intelli-
gent Systems & Components category. From left to right are Tommy Denney, Luis Mon-
cada, Michael Gagner, Scott Weeden, Rustom Mody, Carl Osborn, and Darrin Willauer.
MERITORIOUS AWARDS
FOR ENGINEERING INNOVATION
Halliburton received an award for its CleanStream service in the HSE cate-
gory. From left to right are Greg Neal, Wesley Warren, Rhonda Duey, Jorunn
GasFrac Energy Services received an award for its Waterless LPG Gel in
system in the Drilling Tools category. From left to right are Nick Gee,
the Stimulation category. From left to right are Kyle Ward, Doug McMil-
lan, Larry Burleson, Scott Weeden, Steve Batchelor, and Daniel Purvis.
category for its Liner-Conveyed Gravel Pack System. From left to right
are Gary Geoffroy, Colby Ross, Chris Steadman, Rhonda Duey, Jerry
ION Geophysical received an award for its under-ice seismic data acquisi-
tion technology in the Arctic/Deepwater category. From left to right are Curt
Schneider, Shawn Rice, Rhonda Duey, Joe Gagliardi, and Tim Dudley.
91
tech
WATCH
This illustration shows the gas hydrate stability zone and seismic
BSR. (Images courtesy of Steven Constable)
Hydrate resistivity
Gas hydrate has long been known to be electrically resistive, determined both from well logs and from qualitative
laboratory measurements. Recently, laboratory work was
extended to quantify the electrical resistivity of pure
methane hydrate and showed it to be 20,000 ohm at 0C
(32F) and about 40% less resistive at 10C (50F). The
addition of sediment and pore fluid makes resistivity relationships much more complicated, and a great deal of
laboratory work remains to be done.
In spite of the complications, gas hydrate will present
a viable target to electrical prospecting methods, and
researchers are using marine controlled-source electro-
92
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93
tech
TRENDS
Conventional (above) versus IsoMetrix (below) data are exhibited in a North Sea time slice. (Image courtesy of WesternGeco)
tech
TRENDS
Software advances
seismic interpretation workflow
ffAs flagship product, GeoTeric, has been certified on
the NVIDIA Maximus technology platform. The company said its new generation of seismic interpretation
software can remove weeks from the interpretation
workflow by providing simultaneous visualizations on
one system.
According to ffA, the GeoTeric seismic interpretation
software directly translates geophysical data into geologiEPmag.com | July 2012
cal information while accelerating tasks such as interpretation and extracting from large 3-D seismic datasets.
Its high performance is driven by the NVIDIA Maximus
technology, which combines the visualization and interactive design capability of Quadro and Tesla GPUs in a
single workstation maximizing engineering simulation
computation and seismic visualization. Large model visualization can be conducted and GPU-based computations
made simultaneously on the interpreters desktop without
the need for multiple systems or performing tasks at different times, the company said. ffa-geosciences.com.
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HART E N E R G Y
REGIONAL REPORT:
MEDITERRANEAN
he turnaround in the Mediterranean regions fortunes is almost entirely due to the massive surge of
interest in the Mediterranean Seas eastern margins,
thanks to giant discoveries made in the previously sleepy
backwaters offshore Israel and Cyprus.
The proximity to neighboring Egypts productive offshore and onshore sectors, where western operators
such as BG Group, Eni, BP, and others have had substantial success in finding and producing onshore, shal-
Noble Energy has drilled six out of six consecutive discoveries offshore
Israel and Cyprus, three of which are world-class in terms of size. (Map
courtesy of Noble Energy)
98
REGIONAL REPORT:
MEDITERRANEAN
99
REGIONAL REPORT:
MEDITERRANEAN
Mediterranean momentum
he impressive discovery rates achieved so far by
companies exploring in the eastern Mediterranean
have spurred others into action.
Another US explorer becoming increasingly active is
ATP Oil & Gas, which was due to spud its first well in
the region in June targeting a prospect in the Shimshon
license immediately south of Noble Energys Leviathan
and Tamar fields.
ATP will operate the well with a 40% working interest
through its ATP East Med B.V. subsidiary, with its domestic partner being Isramco Negev. With preliminary
results expected in 3Q 2012, the US independent is hoping to confirm an independent reservoir engineering
evaluation from Lockwood & Associates that estimates
gross potential natural gas resources at Shimshon could
be as high as 3.4 Tcf, with a best estimate of 2.3 Tcf.
Using the Ensco 5006 rig, the well will be drilled in
1,100 m (3,600 ft) water depth, with a planned target
depth of 4,500 m (14,764 ft).
T. Paul Bulmahn, ATP chairman and CEO, recently
said in a company press release that of ATPs 26 invention and system patents and pending applications, 16
deal with deepwater natural gas development methods
and facilities, giving ATP an advantage if it secures an
exploration success with this well.
100
REGIONAL REPORT:
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international
HIGHLIGHTS
For additional
information on
these projects
and other global
developments:
EPmag.com
AFRICA
ceous fan sands (the same play type as the Jubilee field)
and pre-rift Lower Cretaceous rotated fault blocks (the
same play type as the Espoir and Baobab oil fields). To
date several prospects and leads have been mapped and
have unrisked prospective resources of more than 3 Bbbl.
Anadarko ups Mozambique reserves by 20 Tcf
Anadarko Petroleum has increased its recoverable reserves
for its giant field complex offshore East
Africas Mozambique
by up to another 20
Tcf of gas. The company reported that the
deepwater Golfinho
exploration well discovered a new, major
natural gas accumulation approximately 32
km (20 miles) northwest of the Prosperidade complex in the
Rovuma basin. The
discovery well hit more The Golfinho discovery well was
drilled to 4,537 m (14,885 ft) TD in
than 59 m (193 net
approximately 1,000 m (3,000 ft)
feet) of gas pay in two
water depth. (Map courtesy of
high-quality
Oligocene fan systems. Anadarko Petroleum)
The Golfinho discovery, which is entirely contained within the Offshore Area 1
block, has added an estimated 7 Tcf to more than 20 Tcf of
incremental recoverable resources over a significant areal
extent, according to Bob Daniels, Anadarko senior vice
president, worldwide exploration.
Giant ultra-deepwater find in offshore Mozambique
Eni has confirmed another giant ultra-deepwater gas discovery in the East African exploration hotspot of Mozambique, extending its estimated total reserves in place for
the Mamba complex to as much as 52 Tcf of gas. The operator said the Coral-1 exploration well in the southern part
of Area 4 is estimated to contain 7 Tcf to 10 Tcf of gas in
place. With these new results at Coral-1, the company also
estimates resources exclusively in Area 4 range between 15
Tcf and 20 Tcf of gas in place, which further increases the
total potential of Enis Mamba complex in the offshore
Rovuma basin to between 47 Tcf and 52 Tcf of gas in place.
The well, which is 65 km (40 miles) off the Capo Delgado
coast in 2,261 m (7,418 ft) water depth, reached TD of
4,869 m (15,975 ft) and encountered a total of 75 m (246
ft) of gas pay in single, high-quality Eocene sand.
July 2012 | EPmag.com
international
HIGHLIGHTS
MIDDLE EAST
SOUTH AMERICA
international
HIGHLIGHTS
NORTH AMERICA
Spartacus loses battle
An exploration well drilled on Anadarko Petroleums
Spartacus prospect in Walker Ridge Block 794 in the Gulf
of Mexico (GoM) has come up dry. Ernie Leyendecker,
vice president, exploration, told analysts in an energy webcast that the companys net cost was approximately US $20
million, so (its) exposure was relatively small. The well
was targeting subsalt layers near the operators Lucius
project, which is currently under development. Anadarko
is planning to drill up to eight exploration and appraisal
wells in the GoM by year-end 2012.
TGS kicks off WAZ shoot
TGS is acquiring a 3-D multiclient wide azimuth (WAZ)
survey covering more than 3,500 sq km (1,351 sq miles) in
the deepwater GoM. The survey, Independence WAZ 3-D,
continues the companys Constitution group of WAZ projects, including Freedom, Liberty, and Justice, which
together total 27,622 sq km (10,664 sq miles) in the GoM.
The new seismic data are being acquired by a four-vessel
WAZ fleet and will be processed by TGS, with preliminary
products expected to be available in 4Q 2012 and a final
processed product expected in 2013.
Central GoM sale lined up
At press time, Central GoM Lease Sale 216-222 was
expected to take place June 20, making available all
unleased areas in the planning area offshore Louisiana,
Mississippi, and Alabama, including 7,276 blocks covering
38.6 million acres. The Bureau of Ocean Energy Management (BOEM) estimates the sale could result in the production of more than 1 Bbbl of oil and 4 Tcf of natural
gas. The blocks are located from 5 km to approximately
370 km (3 miles to 230 miles) offshore in water depths
ranging from 3 m (9 ft) to more than 3,400 m (11,115
ft). BOEM also has increased the minimum bid in deepwater from US $37.50/acre to $100/acre to ensure taxpayers receive fair market value for offshore resources and to
104
EUROPE
Premiers Carnaby catch in UKCS
Premier Oils latest North Sea exploration well has hit oil,
with the find likely to be part of the operators overall
development plans for its Catcher field. The Carnaby
exploration well 28/09-5A (Premier stake 50%) reached
1,431 m (4,695 ft) TD and encountered 15 m (51 ft) of net
oil in the main Tay sandstone within an estimated 26-m
(86-ft) oil column. A core was taken and confirmed oil in
excellent-quality sandstones, according to Premier. Pressure data and sampling indicate the oil is 24API and of
similar quality to that established at the nearby Catcher discoveries. The well will be plugged and abandoned ahead of
the rig moving to drill the high-risk Coaster prospect on
Block 28/10a, immediately east of the Catcher acreage.
Record number of UK block bids received
Bids were received for more than 400 blocks in the UKs
27th offshore licensing round from oil and gas companies
looking to bolster their UK North Sea portfolios amid government efforts to improve the sectors fiscal terms and
stability. There was substantial interest in frontier licenses,
most of which are in the West of Shetland area. A total of
224 applications were submitted to the UK government,
with applications covering 418 blocks out of the 2,800
offered in the round. The number of applications is the
highest ever received for an offshore round in the UK
since the licensing process was launched in 1964. The bidding round saw 192 applications for traditional licenses;
25 for promote licenses; and seven for frontier licenses,
which can be licensed for six or nine years.
North Sea survey expands to West of Shetland
TGS has started the acquisition of a 3-D multiclient survey
covering 3,210 sq km (1,239 sq miles) in the Erlend basin,
West of Shetland. This is the first multiclient survey in the
basin and builds on the improved imaging shown by the
reprocessed TGS North Sea Renaissance 2-D data. The survey also covers open blocks that were offered in the UKs
27th licensing round. The new 3-D data expands on TGS
Northern North Sea 3-D survey, making a total contiguous
volume exceeding 10,000 sq km (3,861 sq miles). The contractor has chartered the M/V Polarcus Samur vessel for the
first phase of the acquisition. The remaining acquisition
will be completed during the 2012 season by the M/V Polar
Duchess, already on charter to TGS. Processed data will be
available for delivery and licensing in 2Q 2013.
July 2012 | EPmag.com
HART E N E R G Y
HARTENERGYSTORE .com
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III- 7_ 1
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Advances in
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People
John Tintera, former executive director of the Texas Railroad Commission,
has joined the Texas Alliance of Energy
Producers regulatory compliance team
in Austin, Texas, as an environmental
and technical consultant.
UniversalPegasus International has named Philip
Luna (left) CEO. Interim
CEO Bob Deason will
remain as executive chairman of the board.
The board of RigNet Inc. has elected
James H. Browning as nonexecutive
chairman.
Geokinetics has appointed David J.
Crowley to the position of president
and COO.
Earl Sebring has assumed the role of
interim president at Cross Border
Resources Inc.
Recovery Energy Inc. has elected D.
Kirk Edwards to the companys board.
Expansions
Castrol Offshore has begun offering
regionally managed branded products,
expertise, and specialized resources
on the
MOVE
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107
last
WORD
Curbing perception
by telling the truth
It is time to have an honest conversation with the environmentalists.
Eli Gruber, Ecologix Environmental Systems
108
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