IBP1451_12 WELL SUCCESSFULLY DRILLED WITH HIGH PERFORMANCE WATER-BASED FLUID SANTOS BASINS, OFFSHORE BRAZIL Frank C.

. Fornasier1, Juan P. Luzardo 2, M. L. Bishnoi3

Copyright 2012, Instituto Brasileiro de Petrleo, Gs e Biocombustveis - IBP This Technical Paper was prepared for presentation at the Rio Oi & Gas Expo and Conference 2012, held between September, 17-20, 2012, in Rio de Janeiro. This Technical Paper was selected for presentation by the Technical Committee of the event according to the information contained in the final paper submitted by the author(s). The organizers are not supposed to translate or correct the submitted papers. The material as it is presented, does not necessarily represent Brazilian Petroleum, Gas and Biofuels Institute opinion, or that of its Members or Representatives. Authors consent to the publication of this Technical Paper in the Rio Oil & Gas Expo and Conference 2012 Proceedings.

Abstract
Santos Basin is a 352,260 square kilometers (136,010 sq mi) offshore pre-salt basin. It is located in the South Atlantic Ocean, some 300 kilometers (190 mi) South East of So Paulo, Brazil. One of the largest Brazilian sedimentary basins, it is the site of several recent significant oil fields, including Tupi and Jupiter. The criteria for drilling fluid selection is based upon the following factors: maximum cost efficiency, environmental friendliness, optimum borehole stability, and ease of use. The recommended drilling fluid formulation takes into consideration the experience gained during the drilling of wells in the Santos Basin area. The operator wanted to use a high-performance water-based fluid (HPWBF) that could provide shale inhibition, wellbore stability, lubricity and improved rate of penetration (ROP) as an alternative to syntheticbased drilling fluids to present value in terms of economics and environmental friendliness. The HPWBF consists of three synergistic products: a hydration suppressant, a dispersion suppressant, and an accretion suppressant. The system is formulated based on customized solutions for managing the clay reactivity. High logistics costs require drilling fluids that can be prepared with sea water and discharged to the sea without environmental impact. The HPWBF is a clay-free system designed for maximum shale inhibition in highly reactive formations. The system can provide wellbore stability, high rates of penetration, and acceptable rheological properties over a wide range of temperatures, with the added benefit of allowing cuttings discharge based upon water base environmental restrictions. Since no oil is used in the formulation, the HPWBF eliminates the need for cuttings processing and monitoring equipment, and exceeds the environmental requirements by achieving an LC50 value of 345,478.22 ppm in comparison with the minimum requirement (LC50 > 30,000 ppm in 96 hr), permitting use and discharge to the sea. The HPWBF selected takes into consideration four quadrants aspects: technical, logistical, economical, and environmental considerations. In addition, it was used to successfully drill the 8- interval with no NPT during horizontal drilling operations, tripping, running casing and cementing. No bit balling was observed, and it allowed excellent performance as demonstrated by wellbore conditions while tripping. The drilling fluid was left in hole for around 4 months. Only circulating and minimum treatments, like alkalinity agents and biocides, were applied. Throughout this period, the drilling fluids properties remained stable, and the caliper log presented excellent quality

. 1. Introduction
Santos Basin is a 352,260 square kilometres (136,010 sq mi) offshore pre-salt basin. It is located in the South Atlantic Ocean, some 300 kilometres (190 mi) South East of So Paulo, Brazil. One of the largest Brazilian sedimentary basins, it is the site of several recent (2007-08) significant oil fields, including Tupi and Jupiter. Between 25 and 40 billion barrels can be in the Sugar Oil Field. The drilling operation in Santos Basin presents big challenges from the beginning; therefore, efforts were concentrated to obtain a better drilling performance, forced by the high daily rental rates of drilling rigs. It was decided to look for a high-performance water-based fluid (HPWBF) with a suitable formulation to increase the drilling performance, also looking for solutions to increase the rates of penetration (ROP) in the reservoir, section, as these rocks have shown extremely low rates of penetration in previous experiences. To overcome these challenges some aspects were prioritized:

______________________________ 1 Technical Professional Sr HALLIBURTON 2 Technical Manager HALLIBURTON 3 Drilling Manager ONGC

Rio Oil & Gas Expo and Conference 2012 shale inhibition, wellbore stability, lubricity, rate of penetration (ROP), economics and environmentally-friendliness. The objective was to achieve the desired characteristics with a HPWBF as an alternative to synthetic-based drilling fluids.

Figure 1. Map of the Santos Basin

[Pre-salt area in blue / exploration blocks in green] (Source: Petrobras)

2. High Performance Water-Based Drilling Fluids

The high-performance water-based fluid (HPWBF) type of system selected provides maximum shale stabilization in highly reactive clays, with proven high performance in deepwater operations. Engineered for reliable inhibition and maximum drilling performance, this system can provide wellbore stability, high rates of penetration, and acceptable rheological properties over a wide range of temperatures. The system remains stable from 30F to 300F (from -1C to 148C) at densities up to 16.5 ppg, unusual for a clay-free, low-solids, non-dispersed polymer drilling fluid system. Developed in response to the need for a water based fluid that would approach the operational performance of invert emulsion fluids, the unique polymeric design show to perform equal or similar to synthetic based fluids on several parameters, including clay inhibition, lubricity, and hole stability. Ideal for use in environmentally sensitive areas, the HPWBF offers several environmental and safety advantages over oil- and synthetic-based fluids, making it ideal for use in environmentally sensitive areas. With the benefit of allowing cuttings discharge based upon environmental restrictions, the HPWBF delivers economic value in deepwater, shelf, and inland waters or on land. Since no oil is used in the formulation, the system eliminates the need for cuttings processing, monitoring equipment, and extra personnel, reducing overall drilling costs. The operator wanted to use a high-performance water-based fluid (HPWBF) that could provide shale inhibition, wellbore stability, lubricity and improved rate of penetration (ROP) as an alternative to synthetic-based drilling fluids. The HPWBF also presented value in terms of economics, environmental friendliness, and logistic issues in the Santos Basin. High logistics costs in that area require drilling fluids that can be prepared with sea water and discharged to the sea without environmental impact. Further, the drilling fluid needs good lubricity for the horizontal section and the ability to minimize non-productive time (NPT). The HPWBF consists of three synergistic products: a hydration suppressant, a dispersion suppressant, and an accretion suppressant. The system is formulated based on customized solutions for managing the clay reactivity. 2.1 HPWBF characteristics: Low colloidal content Highly inhibitive Non-dispersed Shear thinning rheology Water-based fluid A clay-free system Stable up to 163C, with good return permeability data (>86%) 2

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2.2 HPWBF advantages: Developed in response to the need for a WBF that would approach the operational performance of invert emulsion fluids For use in environmentally sensitive areas Helps minimize low gravity solids content Colloidal solids are commercially flocculated and removed (SCE>85%) The unique polymer combination provides a well lubricated gauge wellbore Designed for maximum shale inhibition in highly reactive formations Helps eliminate or reduce many problems caused by gumbo-like clay 2.3 Key Components of the HPWBF: CLAYSEAL PLUS shale stabilizer is used to inhibit hydration of reactive clays and shale formations. It is effective in most water based drilling fluids from fresh water to high salinity brines and is suitable for use up to 400F (204C). CLAY-SYNC II shale stabilizer is a non-ionic, 100% active, dry polymer used as a clay inhibitor in waterbased drilling fluids. It adheres to the surface of reactive clays which helps reduce dispersion and hydration while improving cuttings integrity. FILTER-CHEK filtration control agent is a modified natural polymer that reduces filtrate loss in most waterbased drilling and drill-in fluids up to 300F, also be used to encapsulate drill cuttings & exposed wellbore formations to reduce particle dispersion & reactive clay/shale formation swelling BDF-293 (BDF-467) high molecular weight, non-ionic 100% active polymer is for use in water-based drilling fluids. This polymer is a flocculant and a clay encapsulator. Its unique polymer chain is used to stop shale dispersion and help stabilize shales in the wellbore.

3. Well Objectives and Challenges 12- Section

3.1. Interval Information: 12 Hole Diameter Top of Interval: 2,347m Bottom of Interval: 4,631m Drilling Time: 172 days Days off (HPWBF left in hole: 137 days

3.2. Formations: Marambaia (shale, sandstone and siltstone) Jureia (shale with sandstone stringers, sandstone with siltstone and shale) Itajai-Acu (shale with possible limestone stringers) 3.3. Objectives 12 Interval: Drill 12-" hole section to 4,631 m TD. Take MWD survey at section TD. Inclination around 1 degree. Achieve maximum ROP, minimizing cuttings build up in annulus. Improve hole cleaning practices / capabilities. Drill the interval without incidents and as planned within cost and time estimates. Zero accidents, incidents, near misses or spills. Provide proper hydrostatic necessary to maintain the wellbore stability, minimizing lost circulation incidents. Excellent mud inhibition to drill highly-reactive clays and shales. Successfully run wireline logs and 9-5/8" casing, and good cement job. 3.4. Key challenges 12 Interval: Hole stability and Lost Circulation: Hole conditions dictated the correct mud weight for the section, ultimately drilling operation in this section was expected to encounter reactive formations, thus inhibition and mud weight were the focus in terms of hole stability. 3

Rio Oil & Gas Expo and Conference 2012 Hole Cleaning: Pump rates, pipe rotation, low end fluid hydraulics as well as sweeps had to be used as the main drivers for good hole cleaning. SCE: It was essential that maximum use were made of all available with efficiency.

3.5. Key Drilling Fluid Properties 12 Interval: Density: 11.5 12.5 ppg. From offset well data and Baroids general experience in the Santos Basin, the above mud weight range was proposed. Increases in mud weight higher than those above would be based on hole conditions and would be confined by the fracture gradient and LOT achieved at the casing shoe. Rheology: Plastic Viscosity: ALAP Yield Point: 20 25 lb/100ft Monitoring hole cleaning on a daily basis via Baroid computer software DFG & DrillAhead Hydraulics. Pump rates, pipe rotation, as well as sweeps were used as the main drivers for good hole cleaning. API Filtration: Max. 6.0 ml The API fluid loss had to be controlled below 5.5mL/30min. pH: 8.5 9.0 pH control was required to maintain polymers effectiveness. MBT: Max. 25.0 ppb MBT control was required to prevent low ROP and increases in density and rheological values, and to prevent excessive dilution.

Figure 2. MBT (ppb eq.) vs. Depth (m)

(Source: WELLSIGHT 2000 Well Recap)

As shown in Figure 2, the MBT values measured while drilling stayed in the planned range, according to the program. High performance encapsulating polymers were added to flocculate fine solids and facilitate their removal by SCE. This was achieved even when the fluid was left in the hole for an extended period. 3.6. Performance treatments 12 Interval The low gravity solids content (LGS % v/v) and MBT were controlled with continuous additions of BDFTM-293 (special flocculant) to the HPWBF while drilling, in conjunction with the shale shaker and mud cleaner performance, thus minimizing the mud volume for dilution. However, a centrifuge was randomly utilized in order to keep dilution requirements to a minimum. Closely monitoring of KCl concentration was performed to keep integrity of the cuttings over the shale shakers. The HPWBF, showed high inhibition of the cuttings, without evidence of bit balling. The drilling fluid properties were maintained by premix dilution/consumption volumes to ensure minimal fluctuations and for maximum solubility and hydration of products. High inhibition properties were maintained to ensure hole stability all times while drilling and circulating. Calcium was treated out with soda ash to maintain concentration below 600 mg/L. 4

Rio Oil & Gas Expo and Conference 2012 The drilling operation had to be suspended due to local environmental agencies requirements, and the fluid was left in hole for 137 days. The well was circulated 2-3 hours every 2 days, adding chemical treatments for mud alkalinity and adding biocide to avoid fluid degradation due to bacteria. During the drilling of this interval 4,128 hours were worked without lost time due to drilling fluid issues. Additionally, other KPIs met were: no HSE incidents and conformance with environmental regulations in place. Safety meetings and environmental agencies audits were attended. Table 1. HPWBF Key Components / Concentrations for 12- Section.
(Source: WELLSIGHT 2000 Well Recap)

Material CLAYSEAL PLUS CLAY-SYNC II FILTER-CHEK Potassium Chloride - Salt

Average (Kg/m3) 13.15 6.84 5.18 37.04

Minimum (Kg/m3) 6.23 2.71 1.94 31.47

Maximum (Kg/m3) 14.86 7.72 8.44 41.14

Table 2. HPWBF 12- Section Properties Programmed vs. Actual.

(Source: WELLSIGHT 2000 Well Recap)

Programed Min. Mud Weight , ppg Plastic Viscosity, cPs Yield Point, lb/100ft API Filtrate, ml KCl, Kg/m3 MBT, ppb pH 20 30.0 8.5 11.5 ALAP 25 6.0 25.0 9.0 Max. 12.5 Min. 10.7 16 13 2.3 31.47 5.0 8.3

Actual Max. 11.4 32 32 8.2 41.14 22.5 9.0

Figure 3. Cost Breakdown

(Source: WELLSIGHT 2000 Well Recap)

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4. Well Objectives and Challenges 8- Section

4.1. Interval Information: 8- Hole Diameter Top of Interval: 4,622m Bottom of Interval: 5,528m Drilling Time: 38 days

4.2. Formations: Itajai-Acu (shale with possible limestone stringers) Guaruja (limestone) 4.3. Objectives 8- Interval: The main objective in this interval was to successfully drill the reservoir section minimizing formation damage with a HPWBF fluid design that was stable throughout this section to TD. 4.4. Key challenges 8- Interval: Reduced Formation Damage: The chosen HPWBF essentially had to be less damaging to the reservoir and had to contain an optimized concentration of specialized bridging particles designed to plug reservoir pore throats without penetrating them. The particle size distribution of these acid-degradable particles, along with the concentrations of each of the other fluid products, had to be designed to provide low fluid invasion of the reservoir rock to help preserve the productivity of the pay zone. Hole stability and Lost Circulation: This section required a mud weight of 10.5 ppg minimum to stabilize it. It was possible that mud weights of 11.7 ppg range were required to stabilize shale strings, if present. Hole conditions and potential for losses would dictate the correct mud weight for the section, ultimately this section was not supposed to encounter reactive formations, thus mud weight would be the main focus in terms of hole stability. Also, the use of a special lost circulation material, a resilient graphitic carbon (rgc), and marble-sourced calcium carbonate, along with ECD and Hydraulics Management were also critical in this section.

4.5. Key drilling fluid properties 8- Interval: Density: 10.7 11.5 ppg. The mud system from previous section, left in the hole would be displaced to 10.7 ppb fluid while (or right after) drilling out of the 9- shoe track. The system would be added and weighted up with marble-sourced sized calcium carbonate prior to entering the reservoir formation. Rheology: Plastic Viscosity: ALAP Yield Point: 20 25 lb/100ft Optimum rheology was essential to maximize hole cleaning for this section. Too low a rheology profile would have a negative impact on mud carrying capacity and therefore, hole cleaning. Too high a rheology profile would have a negative impact on ECD, flow rates and therefore, hole cleaning. KCl Content: Concentration kept within 10.5 - 25 ppb A minimum of 3% by wt potassium chloride was recommended to provide adequate inhibition for any drilled shale strings within the reservoir. This level was based on offset well data on blocks in the area and would be sufficient. Every effort had to be made to monitor potassium concentration on a daily basis through testing, in order to verify depletion and assure the above recommended concentration was maintained. The cuttings had to be observed on a regular basis to ensure integrity. Any signs of soft and highly dispersible cuttings would require increased inhibition. pH: 9.0 10.0 pH control was required to maintain polymers effectiveness. Solids Content: LGS < 5% v/v and MBT < 10.0 ppb eq. 6

Rio Oil & Gas Expo and Conference 2012 Dilutions with fresh HPWBF and maximum use of solids control equipment would be required to maintain this level. Shakers were to be dressed with 140/145 mesh screens throughout the horizontal interval to prevent the coarser solids being stripped out of the HPWBF, thus causing formation damage by fines. High performance flocculants were to be added and good SCE required to achieve this goal. Fluid Loss: API Filtrate: < 6.0 mL/30min. HPHT Filtrate (@100C): < 16 mL/30min. Low fluid loss was required to prevent formation reaction with the HPWBF components, and more importantly, to create a thin, low permeable, stable and lubricated filter cake to avoid formation damage and provide a lubricated hole section. Table 3. HPWBF Key Components / Concentrations for 8- Section.
(Source: WELLSIGHT 2000 Well Recap)

Material

Average (Kg/m3) 8.99 6.55 6.82 28.35

Minimum (Kg/m3) 7.19 5.52 4.26 24.07

Maximum (Kg/m3)

CLAYSEAL PLUS CLAY-SYNC II FILTER-CHEK Potassium Chloride - Salt

15.04 6.94 8.71 34.22

Table 4. HPWBF 8- Section Properties Programed vs Actual.

(Source: WELLSIGHT 2000 Well Recap)

Programmed Min. Mud Weight , ppg Plastic Viscosity, cPs Yield Point, lb/100ft API Filtrate, ml HPHT Filtrate, ml KCl, ppb MBT, ppb pH 20 30 8.5 10.8 ALAP 25 6.0 16.0 10 9.5 Max. 11.5 Min. 10.7 16 13 2.3 8.0 24.07 2.5 8.5

Actual Max. 11.4 32 42 8.2 9.0 34.22 7.5 9.9

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Figure 4. Cost Breakdown

(Source: WELLSIGHT 2000 Well Recap)

4.6. Performance Metrics 8- Interval: After solving the environmental issues, drilling was resumed. A preventative mud treatment to drill out cement was performed, to homogenize the mud below cement plug. Good stability and properties of mud were observed after two months at static conditions in hole below cement plug. The LGS and MBT were controlled with continuous additions of high performance flocculants while drilling, in conjunction with shale shaker and mud cleaner performance, minimizing mud dilutions required for conditioning. High inhibition properties and good hole stability were maintained at all times while drilling and circulating. The bottom hole temperature reached 300F without affecting mud properties. Good rheology profile and excellent fluid loss control were observed. No lubricant additions were required. Hole conditions and potential for losses had to dictate the correct mud weight for the section. Ultimately, drilling operation for this section would not encounter reactive formations, thus mud weight would be the main focus in terms of hole stability. Minimum of 3% by wt potassium chloride was recommended to provide adequate inhibition for any drilled shale string within the reservoir. This level was based on offset well data on blocks in the area and would be sufficient to provide adequate inhibition. Every effort had to be made to monitor potassium concentration on a daily basis through testing, in order to verify depletion and assure the above recommended concentrations were maintained. Cuttings would be observed on a regular basis to ensure a high integrity. Any sign of soft and highly dispersible cuttings would require further inhibition. Total operating time for this interval was 912 hours. No lost time due to HSE incidents or near misses were observed. Full conformance with environmental regulations in place was kept and strict attendance for safety meetings adhered to.

5. Environment
The HPWBF exceeded environmental requirements by achieving an LC50 value of 345,478.22 ppm in comparison with the minimum requirement (LC50 > 30,000 ppm in 96 hr), permitting use and discharge to the sea. The formulation tested included saturated brine and a specific gravity of 1.92 and product concentrations as shown in Table 3. Results for Toxicity Tests are shown in Table 5.

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Table 5. HPWBF Toxicity Test Products Water Soda Ash Sodium Chloride CLAYSEAL PLUS stabilizer Caustic Soda Potassium Chloride BDF-293 stabilizer CLAY-SYNC II stabilizer BARAZAN D PLUS agent FILTER-CHEK agent PAC-L agent Calcium Carbonate Barite Physical-Chemical Properties Specific gravity, g/cm3 Salinity, mg/l Cl pH Toxicity Acute Toxicity LC50 Chronic Toxicity CENO ppm CEO ppm VC ppm 62.500 ppm 125.000 ppm 88.388 ppm 345.478,22 ppm
-

Function Continuous Phase Calcium renoval Salinity Shale stabilizer Alkalinity agent K+ Source for inhibition Flocculant Shale stabilizer Suspension Agent Filtrate control Filtrate control Bridging agent Densifier

Concentrations As required 1,43 Kg/m3 211.3 Kg/m3 22,86 Kg/m3 1,43 Kg/m3 51,43 Kg/m3 2,86 Kg/m3 12,86 Kg/m3 5,71 Kg/m3 17,14 Kg/m3 11,43 Kg/m3 142,86 Kg/m3 790,0 Kg/m3

1,92 188.675 9,3

6. HPWBF Value Added

The HPWBF fluid system showed excellent performance while drilling and excellent cuttings integrity with no tendency of erosion and/or disintegration. Caliper Logs exhibited excellent quality The HPWBF fluid system provided reliable stability to the wellbore and all cuttings could be discharged to sea, according to environmental regulations for water based systems Mud properties remained stable and the wellbore exhibited good stability during a long static period in open hole.

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7. Logistics
The logistic for Santos Basin is difficult and complex. This HPWBF is a water based system that can be implemented with advantages in logistics and costs, compared to SBF. HPWBF can be formulated with sea water as continuous phase, which eliminates significant logistics issues associated with SBF, such as paraffin cost and the supply of boat services. Other logistics costs related to SBF arise from waiting time at rig. Also, the ability to discharge fluid and drill cuttings into the sea eliminated the use and cost of services and logistics related to cuttings boxes.

8. Conclusions
The HPWBF was used to successfully drill the 12- and 8- intervals with no NPT, no-problem trips, casing running and cementing, and no bit balling issues. The drilling process was suspended by local environmental agencies for 137 days. The well was circulated 2-3 hours every 2 days, adding chemical treatments for mud alkalinity and biocide to avoid the fluid degradation by bacteria. Reductions fluid costs due to logistics and cuttings disposal were achieved by using the HPWBF as an alternative to SBF commonly used in the area. The low gravity solids content (LGS) and MBT were controlled with continuous additions of BDFTM-293 (special flocculanting polymer) to the HPWBF while drilling, in conjunction with shale shaker and mud cleaner performance; minimizing mud dilutions. KCl concentration was closely monitored and high integrity of the cuttings over the shale shaker observed. The HPWBF showed very high inhibition of the cuttings, and no bit balling issues.

9. Acknowledgements
The authors would like to thank ONGC for its permission to publish this work, in particular to Mr. M. L. Bishnoi for his valuable contribution to collect the data needed for completeness. Also, an extended recognition goes to the Halliburton-Baroid Team for all the effort to accomplish a successful job.

10. References
IVAN AREVALO, ANDRE MENDONCA and FRANK FORNASIER Horizontal Well Successfully Drilled with High Performance Water-Based Fluid in Marlim Leste, Campos Basin Deepwater Brazil. SEFLU-CEMPO 2010. Purto Ordaz Venezuela. 2010. J. MARIN, F SHAH, M. SERRANO, A. JARAMILLO, C. MARIN, W. AREVALO, and G. PRIANDI: SPE-120768: First Deepwater Well Succesfully Drilled in Colombia with a High-Performance Water-Based Fluid. SPE Latin American and Caribean Petroleum Engineering Conference 2009, Cartagena, Colombia. 2009. TOM ANDERSON, and GARY WEST New High-Performance Water-Based Fluid Benefits in Santos Basin Operations with Excellent Inhibition and Drilling Efficiency Rio Oil & Gas Expo Conference 2004, Rio de Janeiro, Brazil. 2004.

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