VOLUME 04 ISSUE 03-APRIL 2011

OILFIELD TECHNOLOGY MAGAZINE APRIL 2011 www.energyglobal.com

 April 2011 Volume 04 Issue 03 ISSN 1757-2134

contents

| 03 | EDITORIAL COMMENT | 49 | THE CASE IN QUESTION

Scott Beattie, Weatherford International Ltd, USA, looks at
the benefits of a subsea drilling-with-casing system.
| 05 | WORLD NEWS
| 53 | FIGHTING FATIGUE
Kenneth Bhalla, Stress Engineering Services, USA, explains the
| 10 | BACK ON TRACK importance of riser and subsea fatigue damage monitoring.
Gordon Cope, Oilfield Technology Correspondent, explains how
technological innovations have opened up new plays in North America
| 57 | GREAT INTEGRATIONS
and expanded old ones; but environmental concerns and other factors
complicate the future of this sector. Vincent Vieugue, Emerson Process Management, Norway, explains
the growing need for greater integration and intelligence in subsea
operations.
| 18 | DEEP WATER AHEAD?
John Wishart, GL Noble Denton, USA, examines the future of the oil
| 61 | PIPE DREAMS BECOME REALITY
and gas industry and the challenges that lie ahead.
Cobie Loper and Mark Kalman, DeepFlex Inc., USA, introduce a new
generation of lightweight, corrosion resistant flexible pipes.
| 24 | SEAS OF OPPORTUNITY
Luke Davis, Infield Systems Ltd, UK, considers the prospects of the
| 64 | CHECKLIST FOR PRECOMMISSIONING
offshore wind sector and its implications for the offshore oil and gas
industry. Richard Shirley and Dan Vela, Mustang Engineering, USA, run through
the process of precommissioning offshore facilities.

| 29 | AN ILLUMINATING EXPLORATION...
| 69 | SWITCHING TO ELECTRIC
Duane Dopkin, Paradigm, US, points out how full azimuth
decomposition, imaging and illumination enhances deepwater Jon Robertson, Saab Seaeye, UK, looks at the benefits of electric
exploration. ROVs in comparison with hydraulic vehicles.

| 33 | IMPROVED IMAGING | 73 | ELIMINATING THE GAPS IN US OFFSHORE REGULATIONS

Gary Rodriguez, Sherry Yang and Laurie Geiger, TGS, USA, present Jogen Bhalla (USA) and Stephen Gale (UK), AMOT, and Ian Harrison,
a project to improve imaging in a low velocity trench area in the Pyroban, UK, highlight the importance of ignition source elimination
Gulf of Mexico. and the differences in approach across the world.

| 38 | THE ROAD TO RECOVERY | 78 | COMPANY NEWS

Brian Skeels, FMC Technologies, and Lars Farestvedt, MPM, US,
consider solutions for maximising reservoir recovery in this issues
cover story.
| 80 | AD INDEX

| 44 | LIFTING EXPECTATIONS
Ian Anderson, Camcon Oil, UK, explains how artificial gas lift can
assist in developing a long term strategy for subsea extraction.

Oilfield Technology is audited by the Audit Bureau On this months cover >>
of Circulations (ABC). An audit certificate is
available on request from our sales department.

FMC Technologies subsea well intervention system (RLWI) onboard the Island Wellserver in
the North Sea. Workers connect a control umbilical to a well control package while the wireline
lubricator is suspended in the foreground. This system enables subsea workovers at half the cost
and in half the time of the traditional method performed from a rig.

Copyright Palladian Publications Ltd 2011. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or

transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the
copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the
publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK.
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 comment
James Little
Managing Editor

J
ust in case anyone was in any doubt, recent events
have once again provided a poignant illustration of the
signicance of crude oil and its indisputable position as
the worlds most important traded commodity. The increasingly
ne balance between supply and demand, driven by a number
of rapidly expanding Asian economies, most notably China
and India, coupled with a deep seated fear of supply disruption
amongst energy traders, mean that any event that risks an
outage, inevitably leads to a marked upswing in the price of
crude. With much of the world still struggling to regain its feet
after the recent global recession, an escalation in the price of
crude oil has exerted considerable pressure on the fragile global
economic recovery. Brent crude stood at US$ 122 at the time of
writing, up from just below US$ 95 at the close of 2010.
This pattern is of course not unfamiliar. Lets not forget,
crude prices rose rapidly over a very short timeframe on the
back of increasing Asian demand in 2008 to a high of US$ 147.
However, events of the past year have been akin to a perfect
storm for the energy industry. From the Deepwater Horizon
drilling rig explosion on 20 April 2010, and the ensuing
moratorium on drilling in the Gulf of Mexico, to the ongoing,
and far from resolved, chaos in the Middle East, and nally the
devastating earthquake, tsunami and nuclear catastrophe in
Japan, the energy industry has been thrown into an acute state
of uncertainty and governments are being forced to re-evaluate
their energy policies.
Whilst Opec has been able to compensate for the
1.6 million bpd of lost crude production from Libya, its overall
spare capacity is fast being eroded. It is also struggling to match
the high quality light crude that Libya was producing causing
more pain for reners who are forced to compete for scarcer
resources. If problems within the region persist and spread to
other nations across the Middle East and North Africa, then
Opecs available reserves will quickly dwindle. Saudi Arabia,
Opecs largest producer and source of the majority of
crude reserves, looks vulnerable at present with developing
disturbances among many of its near neighbours including
Bahrain, Jordan, Oman, Yemen, Syria and Jordan. So far, Saudis
solution to internal strife has been the populist measure of
providing hand outs to its citizens and boosting public spending.
An action that will cost Saudi Arabia a total of US$ 129 billion or
the equivalent of half of the countrys 2010 oil revenues. Whether
this works remains to be seen, but without doubt it will lead
to higher oil prices as Saudi seeks to nance this huge public
expenditure, plus there is the danger of less investment in future
production capacity, again leading to higher prices.
Price rises have not been limited solely to crude oil, with
signicant increases being seen in natural gas rates as Japan,
the worlds largest buyer of LNG, has boosted imports following
the damage to its Fukushima nuclear facility. With radiation
still leaking from the plant, this crisis remains critical and has
potentially set the nuclear industry back years. Germany, the US
and even China have each put their nuclear programmes on hold
which can only put more pressure on future oil and gas prices.
An end to the turmoil in the Middle East is vital to a stable
oil price. Why? Because according to the IEA, the Middle
East and north African region will contribute 90% of crude oil
production growth over the course of the next 10 years, and if
crude oil is the worlds most important traded commodity, then
this region holds the key to crude production. For the rst time,
Opec, largely comprised of members from the region, will amass
US$ 1000 billion this year in export revenues if the price of crude
remains above US$ 100 a barrel. My guess is that it will achieve
this milestone and more. Lets just hope that the edgling global
economic recovery can withstand the pressure of an extended
period of higher oil prices. O T

itor: Ja mes Little

Managing Ed hnology.com
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// CGGVeritas // Opens new centre in Oman
CGGVeritas has inaugurated a new
open processing and imaging centre
in Muscat, Oman, at a ceremony
attended by clients and a delegation
from the Omani Ministry of Oil and
Gas. The new centre complements
the companys activity in the country
and offers clients access to the latest
processing and imaging technology
and services.
Tailored to address the geologic
challenges of the region, services are
focused on the CGGVeritas unique
3D land seismic portfolio, including
ultra high-resolution wide-azimuth
technologies.
The centre also operates as a
CGGVeritas University training centre,
developing and delivering training
initiatives with the Sultan Qaboos
University, the Omani Ministry
// Cuadrilla Resources // UK shale fracking
The first UK shale gas fracking
operation is now under way at the
Preese Hall shale gas well, near the
seaside resort of Blackpool in North
West England.
Cuadrilla Resources, an
independent UK energy company
undertaking the project, has said
that fracking will take place in bursts
throughout April, after which time the
company will look to study how much
gas subsequently flows from the test
well.
Cuadrilla has asked to carry out
operations at five sites, and has
not required a permit for its current
of Oil & Gas and international
training organisations. In this
way, CGGVeritas will step up its
participation in the development
of highly qualified Omani
professionals; a key national
programme.
Colin Murdoch, Executive Vice
President, Processing, Imaging
and Reservoir, CGGVeritas, said:
With over 35 years of experience
in Oman, CGGVeritas has
considerable knowledge of the
regions E&P challenges. Our new
open centre will provide training and
services of the highest standard,
customised to help our clients
maximise the return on investment
they are currently making in very
high-channel-count exploration and
reservoir optimisation programmes.
fracking operations, because there is
not deemed to be any possible risk
to water supplies. Campaigners have
raised concerns that the extraction
process can contaminate local
ground water, but an inquiry into
possible risks at the site found that
no unacceptable risks were being
taken.
France has imposed a moratorium
on shale gas drilling, while the
German state of North Rhine
Westphalia has asked ExxonMobil
to cease fracking work until later
this year while an expert opinion is
prepared on possible impacts.
world news
inbrief
USA
Dow Oil & Gas, a business unit of
The Dow Chemical Company, has
introduced UCARSOL Shale H-100,
a specialty amine blend designed
specifically for treating natural gas from
the Haynesville shale. This is the first in
a series of new specialty amine blends
Dow Oil & Gas is developing for the
treatment of shale gas in North America.
ANGOLA
VWS Westgarth, a subsidiary of
Veolia Water Solutions & Technologies
(VWS), has been awarded a multi-million
dollar contract by Daewoo Shipbuilding
& Marine Engineering Co. (DSME) for
the design, supply and delivery of an
Ultrafiltration system and a Sulphate
Removal Package (SRP) system. The
two treatment units, designed for
DSMEs Floating Production Storage
and Offloading vessel (FPSO), will be
installed in the Cravo-Lirio-Orquidea-
Violeta (CLOV) Fields, located Offshore
Angola. The project completion is
expected in January 2012.
IRAQ
Petrofac, the international oil and gas
facilities service provider, can confirm
it has been awarded a contract, in
excess of US$ 240 million by Shell
Iraq Petroleum Development B.V. for
developments in the Majnoon Field,
Southern Iraq. Under the competitively
tendered contract, Petrofac is providing
engineering, procurement, fabrication
and construction management services
for the development of a new early
production system comprising two
trains each with capacity for 50 000 bpd
of oil, along with upgrading of existing
brownfield facilities. Work on the project
began in mid-2010 and is expected to
complete during the fourth quarter of
next year.
OILFIELD TECHNOLOGY
April 2011
05
 world news

diarydates
2 - 5 May
// ExxonMobil // Vietnam oil exploration
OTC
Houston, TX, USA
E: registration@spe.org ExxonMobil is likely to start oil other countries to exploit the reserves
www.otcnet.org exploration off the central coast of in these offshore oilfields. Other close
Vietnam towards the end of this month, by nations, such as Malaysia, Brunei,
23 - 26 May according to a recent statement from Taiwan and the Philippines all hold
EAGE Conference and Exhibition state-run oil firm PetroVietnam. claims in the region. Worryingly, it has
Vienna, Austria The company has worked with the been claimed that Chinese patrol boats
E: eage@eage.org authorities of Danang city on safety often harass and intimidate explorers
www.eage.org issues surrounding the drilling and will in the area, having laid claim to the
begin work at Block 119 off Danang city. South China Sea and the area in which
The drilling will be part of an agreement ExxonMobil intends to explore. However,
15 - 16 June
signed between ExxonMobil and US Defense Secretary, Robert Gate, has
World Drilling Conference and Exhibition
PetroVietnam in 2007. voiced his objection to any intimidation
Copenhagen, Denmark
PetroVietnam has previously formed of US energy companies operating in the
E: peggy.kersten@iadc.com
partnerships with Russia and several region.
www.iadc.org

30 August - 1 September
3P Arctic 2011
Halifax, Nova Scotia, Canada // Statoil // Oil and gas discovery in Norway
E: 3p@oesallworld.com
www.3parctic.com

After a few recent dry well exploration
6 - 8 September
failures in Norway, Statoil and Eni SpA
SPE Offshore Europe
have potentially made Norways biggest
Aberdeen, Scotland
oil and gas discovery in 10 years at the
E: oeteam@reedexpo.co.uk
Skrugard prospect in the Barents Sea.
www.offshore-europe.co.uk/palladian
With as much as 250 million bbls of
recoverable reserves, this discovery may
25 - 28 September prove bigger than the current holder of
MEOS 2011 Norways largest find title Goliat. by 30% since 2000. The Norwegian
Bahrain Tim Dodson, Executive Vice
E: jwebster@oesallworld.com President for exploration at Statoil, has
www.meos2011.com been quoted as saying: This opens
a new oil province that can provide
4 - 8 December additional resource growth, adding
20th World Petroleum Congress that the find was the most important
Doha, Qatar exploration event in Norway in 10 years.
E: info@20wpc.com It is hoped that this new find will
www.20wpc.com help meet targets to maintain Norways
output and make the development of
a second gas hub in the Norwegian
Sea more likely. Statoil plans to drill a
delineation well in the area in 2012, as
well as another exploration well in the
same license. The company is currently
considering the possibility of drilling
more wells in the area this year.
The overall production of oil and gas
in Norway is expected to decline from
2015 onwards, and has already fallen
Petroleum Directorate estimates that
only 40% of the oil and gas on the
Norwegian shelf has been produced,
and that in 20 years time 40% of
the production on the Norwegian
continental shelf will come from
resources that are as yet undiscovered.
In the North Sea, half of the oil and gas
has been produced; in the Norwegian
Sea less than a quarter; while Snhvit
currently operates to exploit the
resources in the Barents Sea.

OILFIELD TECHNOLOGY
06 April 2011
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 world news
// Technip // Awarded North Sea contract
Technip has been awarded a full
EPIC contract by RWE Dea, for the
Clipper South gas field development
in the North Sea. The field is located
70 km northeast of the Bacton gas
terminal in 25 m of water.
The contract covers full project
management, detailed pipeline
design, installation and tie-in of a
15.5 km 12 in. production line and
3 in. methanol piggyback line from
the new Clipper South platform to
the existing LOGGS (Lincolnshire
Offshore Gas Gathering system)
platform.
// Suncor //
Investment in oil sands
Canadian energy company, Suncor,
has received all requested approvals
needed to finalise its strategic alliance
with Total E&P Canada Ltd. The
company aims to more than double
its oil sands production in the next
decade.
Suncor will receive approximately
US$ 1.75 billion from the transaction,
and has acquired a 36.75% working
interest in the Total-operated Joslyn
joint venture with Total now holding
38.25%.
ConocoPhillips will also move
towards a focus in oil sands
production in Canada. In response to a
long period of relatively low natural gas
prices, ConocoPhillips, the third largest
natural gas producer in Canada, cut
the number of new gas wells it plans
to drill and will shift investment into
increasing its oil sands output.
OILFIELD TECHNOLOGY
08 April 2011
The contract builds on past experience
with RWE: in 2008 Technip provided pipelay
and umbilical installation for the Topaz field
development, located in the Southern gas
basin.
Technips operating centre in Aberdeen
(Scotland) will execute this contract, which
is scheduled to be completed in the fourth
quarter of 2011. Genesis; a Technip Group
company providing upstream oil and gas
consultancy services, will also play a part in
executing the contract through the provision
of detailed pipeline design. Vessels from the
Technip fleet will be used for the offshore
installation campaign.
// UK and Saudi Arabia //
Discuss supply/demand
UK and Saudi energy ministers have met
recently to call on international energy
markets to recognise that the high price of
oil does not reflect the realities of supply
and demand in the market.
In his first visit to the Middle East
since taking office, UK Energy and Climate
Change Secretary Chris Huhne met with
Saudi Oil Minister Ali Ibrahim Al-Naimi.
Mr Huhne said: There could be no more
important time to be in Saudi Arabia,
whose response to events in recent months
has been crucial for keeping the market
supplied to meet global demand. There is
no shortage of supply, and yet the price
has remained high. International energy
markets should understand that the current
price of oil does not reflect the realities
of supply and demand. Building greater
understanding between consumer and
producer countries is more important than
ever in these present circumstances.
// Cupet // Expanding
Cuban exploration in the
Gulf of Mexico
Cuba currently depends on Venezuela
for approximately 100 000 bpd of oil
imports, and produces in the region of
21 million bbls a year of domestic oil,
which supplies around half of its energy
needs every year. After a long established
position of energy dependency, Cuba has
announced plans to drill five deepwater oil
wells in the Gulf of Mexico beginning this
summer, expressing confidence that its
effort in exploration will be rewarded with
major new hydrocarbon discoveries.
Were about to move to the drilling
phase, said Manuel Marrero, an official
with the government authority tasked
with overseeing Cubas oil sector. Were
all really hopeful that we will be able to
discover large reserves of oil and gas,
said Marrero, who added that the ventures
would be undertaken with the help of
unspecified foreign companies.
He said the deepwater wells were
to be drilled between 2011 and 2013,
and would be in waters ranging in depth
between 400 m and 1500 m. State oil firm
Cupet has said that the country is currently
awaiting a platform constructed in China
for one of its offshore projects, and has
made assurances that any offshore well
development will be handled with safety
at the forefront. Cubas economic zone
in the Gulf is geographically very close
to the US state of Florida, and is divided
into 59 blocks. 20 blocks are ventures
with Repsol (Spain), Hydro (Norway), OVL
(India), PDVSA (Venezuela), Petrovietnam
and Petronas (Malaysia). Petrobras (Brazil)
recently pulled out and Sonangol (Angola)
recently signed on.
Studies estimate Cuba has probable
reserves of between 5 and 9 billion bbls
of oil in its economic zone in the Gulf of
Mexico.
 Nantes, France
sales.nantes@sercel.com

Houston, USA
sales.houston@sercel.com
www.sercel.com

A N Y W H E R E . A N Y T I M E . E V E RY T I M E .
 Gordon Cope, Oilfield Technology Correspondent,
explains how technological innovations have opened
up new plays in North America and expanded old
ones; but environmental concerns and other factors
complicate the future of this sector.

A C K
B track
on

10
T
he oil and gas sector is sending
a clear message: North America
is back on track. In the US,
full year oil production for 2010
averaged 5.49 million bpd, compared
with 5.36 million bpd in 2009. In
2011, operators are expected to drill
44 714 wells, up from an estimated
43 038 wells in 2010. Service company
Baker Hughes predicts that active US
rotary rigs will average 1620 rigs per week
this year, up from 1515 in 2010 and 1087
in 2009.
In Canada, the Conference Board of
Canada noted that oil company prots
jumped to C$ 8.5 billion in 2010, up from
C$ 1.7 billion in 2009, and will continue
a healthy growth into the C$ 20 billion
range by 2014. Albertas lease sales
netted C$ 2.38 billion in 2010, exceeding
the record set in 2005, and more than
tripling the level from 2009. Husky, based
in Calgary, raised its 2011 capital budget
more than 20%, to C$ 4.86 billion. The
Petroleum Services Association of Canada
expects a total of 12 250 wells to be drilled
in 2011, up from 11 350 in 2010.
In addition to a recovered economy,
the oil and gas sector is riding high on
the benets of two major advances in
technology; horizontal drilling and hydraulic
fracturing. Thanks to advances in horizontal
11
 The Macondo tragedy
On 20 April, 2010, the worlds largest man made oil spill
occurred in the Gulf of Mexico. Transoceans Deepwater
Horizon semi-submersible rig, situated approximately
40 miles off the Louisiana coast, had just nished drilling an
18 000 ft well into BP Explorations Macondo prospect in
the Mississippi Canyon block. Suddenly, a large volume of
gas and oil raced uncontrollably up the riser, resulting in an
immense explosion and re. 11 crew members were killed,
and over a dozen injured. The stricken rig eventually sank,
crashing to the ocean oor 5000 ft below.
The blowout preventer (BOP), a 25 t, ve story device
designed to prevent runaway wells, failed to close. Around
50 000 bpd of thick crude began to spill out onto the
seaoor and make its way to surface, threatening wildlife,
beaches and protected habitats. BP, state and federal
authorities launched a massive clean-up campaign. BP also
tried to staunch the well. After several failures (including
attempts to activate the BOP, massive containment caps,
and the injection of debris and mud), the well was nally
sealed on July 15, 87 days after it rst began to spew.
US government agencies estimate that approximately
4.1 million bbls of oil escaped.
In the wake of the tragedy, President Obama imposed a
drilling moratorium on all federal leases at depths exceeding
500 ft. Thousands of employees were temporarily laid off.
Lease sales were also cancelled, and lawsuits were brought
against BP, rig operator Transocean, and service company
Halliburton. While the oil clean-up proved mercifully short,
the legal repercussions to the industry are expected to
reverberate through the courts for several years.
The Macondo tragedy has resulted in a new focus
on personnel safety, environmental and regulatory
compliance in the offshore sector. Formerly, the MMS
had been responsible for promoting offshore oil and gas
development, enforcing safety regulations, and maximising
revenues from oil and gas to the Treasury. Secretary of the
Interior Ken Salazar reorganised the Department of the
Interiors Minerals Management Service (MMS), into the
Bureau of Ocean Energy Management, Regulation and
Enforcement (BOEMRE).
After the reorganisation, revenue collection was assigned
to the Ofce of Natural Resources Revenue (ONRR).
Offshore oil and gas development duties were assigned
to the Bureau of Ocean Energy Management (BOEM).
Regulatory enforcement was assigned to the Bureau of
Safety and Environmental Enforcement (BSEE).
The new structure will allow the agencys permitting
engineers and inspectors greater independence, more
budgetary authority, and clearer senior leadership focus.
It will also allow several new and enhanced compliance
strategies, including inspection of rigs to ensure safe
and environmentally responsible operations, real-
time monitoring of the highest risk operations, such as
deepwater drilling, and better inspections and enforcement
tools to increase inspection coverage and efciency.
A separate Energy Safety Advisory Committee (Safety
Committee) will advise BOEMRE on a variety of issues
related to offshore energy safety, including drilling and
workplace safety, well intervention and containment, and
oil spill response.
OILFIELD TECHNOLOGY
12 April 2011
OT_10-17_April2011.indd 12
well technology, for instance, the average length of wells in
Canada has grown 33% in the last three years, from 1200 m
to 1600 m. And the number of fractures in some plays has
advanced from one or two per well to over a dozen, dramatically
increasing the ultimate expected recovery per well. Not only
does this mean more hydrocarbons at less unit cost, it also
opens up uneconomic plays that were once thought marginal
due to economics.
Shale gas
Nowhere is this more evident than in shale gas. Geoscientists
have long known that the dense, black rocks found throughout
most basins in the world contain copious amounts of gas -
often more than 100 billion ft3 per square mile - but that the
impermeable nature of shale made it very difcult to produce
economically. Less than a decade ago, however, exploration
companies in Texas managed to combine a number of
technologies, including horizontal drilling and hydraulic
fracturing, in order to economically release the gas from the
Barnett shale underneath Dallas, Fort Worth. According to
the US Geological Survey, the success of the technology has
more than doubled the 1300 trillion ft3 of existing reservoirs in
North America, adding 1200 trillion ft3 of shale gas in the US and
500 trillion ft3 in Canada.
The Barnett shale play has plateaued at around
5 billion ft3/d, but several other new plays are gaining traction,
including Louisianas Haynesville shale, the Fayetteville shale of
Arkansas, and Pennsylvanias Marcellus shale. Shell agreed to
acquire the business of privately owned East Resources Inc. for
US$ 4.7 billion in a deal that includes a major land position in
the Marcellus shale play. ExxonMobil Corp. paid US$ 41 billion
in an all-stock acquisition of XTO Energy Inc. Chevron acquired
Atlas Energy and its extensive Marcellus gas play holdings for
US$ 4.2 billion. By 2035, the EIA estimates shale gas could
make up as much as 25%, or 16 billion ft3/d, of the countrys
expected 64 billion ft3/d production.
Canada is just beginning to produce from shale gas.
Petroleum companies are building infrastructure to handle
up to 1.8 billion ft3/d from the Horn River Ordovician Muskwa
formation and the Montney shale, located in northwest Alberta
and northeast British Columbia. The Canadian Society for
Unconventional Gas (CSUG) estimates that the entire countrys
shale gas production could reach 5.3 billion ft3/d by 2020.
Shale oil
Shale oil, the cousin of shale gas, is also growing into a major
unconventional source of hydrocarbons. The Bakken shale rests
in the Williston basin that straddles North Dakota, Saskatchewan
and Manitoba. The USGS estimates there are 3.65 billion bbls of
recoverable crude oil in the Bakken. Thanks to rotary steerable
systems (RSS), operators can target thin, high-grade veins
that run for thousands of metres laterally. Hydraulic fracturing
then releases the oil to the wellbore. With the current pace of
drilling, the US Department of Energy predicts that North Dakota
will soon overtake Alaska as the leading producer in the US,
pumping up to 700 000 bpd by 2017.
The Eagle Ford shale formation in South Texas runs north from
the US/Mexico border for several hundred miles. The average
thickness of the shale is about 475 ft. The formation produces
gas, gas condensate and oil, but it is the latter liquids that have
made the Eagle Ford one of the hottest plays in North America.
08/04/2011 09:27
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Apache, EOG, Petrohawk, ExxonMobil and Chesapeake are all
investing heavily in the region. Drilling permits in the Eagle Ford
jumped from 94 in 2009 to over 1000 in 2010, and the torrid pace
is expected to continue through 2011. International companies
are eager to invest. Chinas CNOOC paid US$ 1.1 billion for a
33% stake in Chesapeakes Eagle Ford acreage, and Indias
Reliance spent US$ 1.3 billion to buy acreage and form a joint
venture with Pioneer Natural Resources Co.
Oil sands
The oil sands are another major unconventional play beneting
from advances in technology. With over 170 billion bbls of
recoverable bitumen, the oil sands of Alberta form one of the
largest deposits of crude in the world. For the last several
decades, oil companies have spent tens of billions to boost
production to current levels of 1.65 million bpd. Traditionally,
the majority of production has been through open-pit mining,
where the mix of sand, clay and tarry bitumen is dug up,
separated with warm water, then upgraded to high quality
synthetic crude. Mining is only good where the bitumen
rests within 75 m of the surface, however. Around 80% of
recoverable bitumen requires in-situ methods of recovery.
Over the last decade, thermal processes have come to the
fore.
Steam assisted gravity drainage (SAGD) involves two
horizontal wells being drilled, one above the other. Steam
is injected into the top well to melt the bitumen, which then
drains into the lower well and is pumped to surface. Advanced
horizontal drilling using RSS allows extremely precise placing
of the wells, maximising steam patterns and optimising
recovery. Currently, mining production stands at 856 000 bpd
and thermal in-situ at 794 000 bpd. By 2021, CAPP expects oil
sands to produce 3 million bpd, (1.277 million though mining
and 1.724 million through in-situ).
Problems
In spite of recent successes, the North American oil and gas
sector faces a spectrum of challenges. In 2010, the worlds
largest man made oil spill occurred in the Gulf of Mexico when
the Transocean Deepwater Horizon semi-submersible rig
suffered an immense explosion and re (see sidebar).
Environmental concerns also remain front and centre. Over
the last 150 years, the amount of greenhouse gases (GHGs) in
the atmosphere has risen from 280 ppm to 384 ppm, primarily
due to the burning of fossil fuels. The UNs Intergovernmental
Panel on Climate Change (IPCC), an international consortium
of environmental scientists, has concluded that this is causing
global warming.
Most nations around the world signed the Kyoto protocol,
agreeing to an emissions reduction to 6% below 1990 levels
by 2012, and have since agreed to pursue more ambitious
plans. The US, however, has followed its own path. Over the
last several years, numerous bills in the Congress and Senate
have come up with various targets, including instituting a cap
and trade system to reduce emission by as much as 80% by
2050. Although the prospects of comprehensive environmental
legislation have abated since the Republicans gained control
of Congress, regulatory strength against emissions has been
growing. Empowered by a Supreme Court ruling that GHGs
fall under the jurisdiction of the Clean Air Act, starting this
year, the Environmental Protection Agency (EPA) is requiring
OILFIELD TECHNOLOGY
14 April 2011
new power plants and reneries to consider GHG-reducing
technologies, as well as major modications to existing ones.
The growth of shale gas faces public concerns over
hydraulic fracturing. During the process, several million litres
of water are forced at high pressure down the wellbore and
into the shale to create a network of tiny fractures that allow
the gas to escape. In order for the water to penetrate further,
it is treated with proprietary chemicals that decrease its
viscosity. Some of the chemicals have been associated with
cancer, and ofcials are worried that they may contaminate
adjacent aquifers and drinking supplies. In August, acting
under a directive from Congress, the EPA requested chemical
lists from nine major service companies, including Halliburton
and Schlumberger. There have also been calls to regulate
hydraulic fracturing under the federal Safe Drinking Water Act.
In Pennsylvania, protestors are organising to seek curtailment
of shale gas activity in their state.
The oil sands are also under heavy pressure. Mining
projects require large amounts of water in order to ush bitumen
from a matrix of sand and mud. It taxes the hydrological
system in the region, creates large tailing ponds, and threatens
residents with trace toxins. Recently, Syncrude was ned
C$ 3 million after 1600 ducks died in a tailing pond. Aboriginal
groups situated downstream from the development have
also long complained of higher incidences of rare diseases.
Environmental groups have dogged provincial politicians and
invaded facilities, claiming that it is dirty oil due to the energy
needed to clean and upgrade the bitumen. Various lawsuits are
lodged against proposed pipelines designed to carry oil sands
production south to the US and west to Asia.
But one of the major concerns is the persistent low price
for natural gas. For the last several years, gas has consistently
lingered around US$ 4/ million BTU, well below the replacement
level of US$ 6 - 7 for many exploration regions. Unless
production decreases or demand increases, the price outlook
for the next several years is bleak.
The future
Energy suppliers are looking for ways to reduce GHG
emissions. One such technique is carbon capture and
sequestration (CCS) in which large carbon emissions from
stationary facilities, such as power plants, reneries and oil
sands upgraders, are tted with equipment that gathers CO2
so that it can be shipped to underground storage facilities for
permanent isolation. The government of Alberta, for instance,
has established a C$ 2 billion fund to help develop major CCS
facilities that will capture and sequester up to 5 million tpy
by 2015. Shells Quest project will see the Scotford oil sands
upgrader in central Alberta capture 1.2 million tpy of CO2,
transport it 10 km, and inject it 2300 m underground as part of
an enhanced oil recovery (EOR) programme.
In the US, the Department of Energy will provide
US$ 350 million to support the Texas Clean Energy Project,
which will capture up to 2.7 million tpy of carbon from a
proposed electric power plant near Midland-Odessa, Texas, and
transport it to the Permian basin, where it will also be used in
EOR.
In order to address concerns regarding hydraulic fracturing,
the Pennsylvania Independent Oil & Gas Association (PIOGA)
and the American Petroleum Institute (API) have formed a
Marcellus shale public education alliance to provide facts about
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the tight shale gas resources energy and economic potential. gas can compete with coal on a price basis for baseload
The API is also working with industry groups and states to demand. Some shale gas production is protable within this
create a state-based voluntary chemical registry of hydraulic range, and operators would have the option of locking in large
fracturing chemicals that would ensure effective regulation while volumes of production for extended periods.
protecting trade secrets. Switching to gas also reduces a utilities carbon footprint;
Oil sands operators are striving to reduce environmental coal produces approximately twice as much CO2 per unit of
impact. Shell introduced a technique called atmospheric electricity than gas. The main roadblocks to GTP growth are the
nes drying that reduces the drying time for tailings pond state commissions that have the power to set electricity pricing.
material from decades to weeks. Canadian Natural Resources If a long term contract is more expensive than spot market
Horizon oil sands plant is injecting CO2 into its tailings pond prices, regulators may not pass the cost on to consumers, and
water, which causes the silt to separate much faster. The clear the utility company takes the loss.
water is then recycled back into the plant, reducing freshwater Thanks to a conuence of new technologies, massive
takeaway from the nearby Athabasca River. Syncrude has unconventional resources and a renewed economy,
installed three large centrifuge machines, much like those North Americas oil and gas sector faces a promising future.
already used in sewage treatment plants. The centrifuges But the challenges that remain, including carbon reduction,
separate clean water from the tailings ponds, producing an environmental protection, regulatory restrictions and legislative
earth-like clay-cake. oversight, guarantee that the next few years will be replete with
Some oil sands producers are moving toward water-free many a twist and turn in oilpatch fortunes. O T
extraction processes. Petrobank Energy & Resources,
Calgary, has received approval for large scale
production of in-situ bitumen using toe-to-heel air
injection (THAI). The process involves igniting air that
has been injected into the toe of a long horizontal well.
Unwanted portions of bitumen partially ignite, warming
higher grade bitumen, which is then collected at the
heel of the well and pumped to surface.
Firming up the price of natural gas will be one of
the greatest challenges. Producers could simply shut
in uneconomic wells, but the recent global recession
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The second option is to drill for less new gas.
Companies with oil plays are focusing their budgets
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for the shale gas play has left many companies
with commitments to drill or lose exploration rights.
Industry groups estimate that at least 150 rigs would
have to be retired from the current 950 US rigs
dedicated to gas drilling in order to bring long term
gas production into line with demand.
There are several opportunities to increase
demand. Gas could be exported as LNG.
Cheniere Partners recently announced it is negotiating
a long term contract with a Chinese rm to add
liquefaction facilities to its terminal in Sabine Pass,
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 Figure 1. Healthy investment:
the GL Noble Denton
sponsored report predicts
healthy investment in new
exploration and marketing
opportunities over 2011.

18
F
ollowing a year of slow economic
recovery, unstable price uctuations
and damaging incidents in the
Gulf of Mexico and China, the oil and
gas industry is predicting healthy
investment in new exploration and
market opportunities over the next
12 months, according to a new report on
the future of the sector published by the
Economist Intelligence Unit and sponsored
by GL Noble Denton.
Despite concerns over tougher industry
regulation and increased operating costs,
the 194 board-level executives and
policymakers from some of the industrys
leading international companies that were
surveyed for the report are optimistic
that 2011 will be a key turning point
for the industry, as operators prepare
to drill deeper in new geographies.
Indeed, 76% of respondents to the
Economist Intelligence Units research

19

Figure 2. Challenge: rising demand for energy resources means
companies are increasingly having to develop resources in more
challenging environments, such as the deepwater offshore.
described themselves as either highly or somewhat condent suggesting that their safety record will become a more
about their companys business outlook, compared with only
8% describing themselves as highly or somewhat pessimistic.
This renewed condence in industry growth is largely
thanks to a period of relative price stability, particularly in
North America and the fast-growth economies in Asia. The
largest proportion of industry executives surveyed (32%) saw
South East Asia as offering the greatest opportunities for their
business in 2011, while nearly a third (30%) of respondents to
the Economist Intelligence Units research saw North America as
the most signicant region. Additionally, emerging regions such
as China and Brazil are underpinning oil demand as a result of
their robust markets, with strong growth also predicted for India
and the Middle East this year.
Uncertainty over regulation
It is positive to see that the industry still values the potential
of North American production and, for larger oil companies in
particular, the US Gulf of Mexico remains an attractive province,
according to the Economist Intelligence Units report. As we
face the rst anniversary of the Deepwater Horizon incident,
the potential impact of the regulation following the biggest oil
disaster in US history continues to feature heavily in industry
debate, and the results of the Economist Intelligence Unit survey
reinforce the industrys feeling of uncertainty towards the effect
of future legislation.
OILFIELD TECHNOLOGY
20 April 2011
According to the report, the oil and gas industry recognises
that increased regulation will follow the Macondo incident,
but respondents to the Economist Intelligence Units survey
seem unclear when new legislation will appear and what effect
it will have. A very large proportion (72%) of respondents to
the research said that they expect regulation to become more
stringent in North America in particular, while a substantial
majority (68%) expects cost increases in general.
During a round-table discussion on the ndings of
the Economist Intelligence Units report, organised by
GL Noble Denton in London recently, European industry
leaders voiced concern over how the increased cost of
post-Macondo regulatory compliance may price smaller
operators out of the market. A senior representative from
an international oil company suggested that potential
new regulation put into place after Macondo might have a
pendulum effect, where operating costs will start off high
before settling to a more manageable level.
The report also acknowledges that rising costs are likely to
be more problematic for smaller E&P rms. Nearly two thirds
of production in the Gulf of Mexico is accounted for by such
companies, and proposals to raise the US$ 75 million cap on
liabilities related to offshore oil spills will most likely hit them
hardest as insurance becomes impossible or too costly to
obtain.
Rising demand for energy resources means that
companies are also increasingly required to develop resources
in more challenging environments, such as the deepwater
offshore. Reserves in these areas are becoming an increasingly
prominent feature in global oil and gas production. With
20% of major oil rm portfolios now coming from deepwater
positions, this will clearly have an additional impact on
spending.
The longer term impact of Macondo however, looks set
to be on companies operational strategy, with the report
important factor in gaining access to global reserves.
Participants in the recent round-table discussion felt
that a non-prescriptive approach to legislation would be
preferable to a rigid regulatory response to Macondo from the
US government, helping operators to reduce risk through more
effective mitigation processes.
Following the Piper Alpha disaster in the North Sea in
1988, the UK governments response was to separate the
regulator from the Department of Energy and ask operators
to identify and reduce risks to as low as reasonably
practicable, in addition to justifying their actions to the UK
Health and Safety Executive (HSE). This regulatory model
was subsequently adopted in Australia and West Africa, but
it seems that debate continues over whether it would work in
the US.
Natural gas: a global game changer?
Natural gas has gained a reputation as a relatively low-carbon
transition fuel in recent years. The global demand for LNG
has grown as countries in Asia and Europe have sought to
increase their supply options.
According to the Economist Intelligence Units report,
the emergence of large reserves of unconventional gas in
North America has proved highly attractive to oil and gas
companies looking to replace declining production and,
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Figure 3. Natural gas: fast emerging as an attractive option for oil and gas companies
looking to replace declining production - but is natural gas a global game changer?
instead of an anticipated decline in the region, extraction has
increased dramatically as new technologies have helped to
unlock vast tight gas resources.
But some of the industrys key players have disagreed with
the reports ndings, which dub natural gas as an industry game
changer. They suggest that companies may nd that the cost
of extracting unconventional gas from reserves such as those in
the US will result in a weaker return on investment than originally
expected.
The regulation of energy sources such as shale gas may also
add cost to the process of extraction, with concerns being raised
by some around the best practice for the controversial process
of hydraulic fracturing. Currently regulated in North America
by the individual states, the report highlighted the concerns
of those worried that the potential addition of a further federal
layer of regulation could slow operations in addition to resulting
in subsequent price rises. The report also notes that there is an
expectation for closer scrutiny of the environmental impact of
unconventional gas, due to the fact that the techniques required
to access it are still not fully understood.
Overall, the majority of the industry executives polled by the
Economist Intelligence Unit expect a modest shift upwards in
natural gas prices; especially as global demand is forecast to
increase steadily over the next decade. Nearly one half (48%)
expect an increase of at least 10% in gas prices, compared with
just 7% who think prices will fall by 10% or more. Most of the rest
(35%) expect prices to uctuate around the current price range.
Developing the next generation
The increasing shortage of technical skills across the
industry is another topic close to the hearts of many oil
and gas professionals, and was raised among sector
leaders at the recent round-table discussions on the
Economist Intelligence Units report. Now we are faced with a
period of investment and expansion, there is an overall feeling
that the sector will come against challenges as a result of its
failure to attract, recruit and retain highly talented people.
There are a number of reasons why the oil and gas industry
is likely to experience a skills decit within the next 15 years; the
success of the nance industry - pre-credit crunch - to recruit
OILFIELD TECHNOLOGY
22 April 2011
talented graduates through the promise of high
salaries and quick career progression have
been detrimental to the oil and gas industrys
recruitment of fresh blood. The negative
impact of the Macondo disaster on the industry
has also played a role, alongside scepticism
over the oil and gas industrys efforts to support
more environmentally friendly approaches to
energy production and distribution among
younger generations.
Before the recent economic crisis, when
investment into the oil and gas industry was
last at its peak, initiatives were implemented
by players from across the industry, who
came together to introduce and develop
emerging talent in a co-ordinated manner.
Alongside the economic downturn came
sweeping budget cuts and this good work
has likely been halted, but if a period of
investment comes to pass, as forecast by
the Economist Intelligence Unit report, the
industry could soon nd itself returning to a situation in which
demand for technical resource outweighs supply.
Participants in the round-table discussions agreed that the
industry needs to work more closely together to address the
skills problem, rather than trying to pursue each others technical
staff. One industry association leader felt that the sector had
lost its appeal to university graduates over the last 20 years,
and while a number of oil and gas companies operate graduate
programmes, the industry needs to do more to educate students
at an even younger age about the innovations being developed
to drive the sector forward.
Technical consultancies such as GL Noble Denton were also
recognised as becoming increasingly important to the industry,
in that they are able to provide the industry with consistent
knowledge and advice during periods of talent decit. Emerging
nations such as India and China may also be depended upon
more heavily to provide resource where more mature regions
have difculties in generating new industry talent.
With activity set to rise in the sector, companies need to
focus on recruitment now, ensuring that the right talent is in
place for the right price.
Cautious optimism
It is clear from the Economist Intelligence Units report, and the
debates that its ndings have sparked since its publication that the
oil and gas industry is extremely focused on its future challenges. It
understands very well the need to nd more innovative solutions to
operating more safely, sustainably and efciently.
Its encouraging to see that industry executives expect to see
an upturn in investment into the sector, despite fears of tougher
regulation and a more costly operating environment. But it is
also clear that the industry still has hurdles to overcome if it is to
realise the full potential of that market growth.
The demand for energy is taking the exploration, production
and distribution of oil and gas to tougher extremes of geography
and climate; pushing the boundaries of the industrys technical
knowledge to its very limits. The success of key players in the
industry in nding more innovative solutions to mitigate risk while
remaining resourceful and sustaining activity will dene their
position and reputation in the market this year. O T
 ,
D avis d, UK,
e t
Luk tems L spects
l d Sys he pro ind
t
Infi iders hore w ations
e
s s c
con the off s impli l and
of
a n d it ore oi
tor fsh y.
sec the of ndustr
for gas i

24
E
ver since oil and gas exploration and
production activities kicked off in the harsh
waters of the North Sea during the late
1960s, the region has been a major part of the
global offshore energy supply chain. Indeed, with
the demanding needs of North Sea operators as
the primary driver, contractors have established
themselves as leaders in their respective elds and,
over the last 40 years of operation, generated a
wealth of knowledge and skills within the region.
Today, oil and gas production in the North Sea
is in decline and though E&P activities are set
to continue apace, driven in no small part by
the rising oil price, the offshore wind industry is
beginning to make the headlines.
This article discusses the prospects for the
offshore wind sector and the competition and
opportunities that exist between this nascent
industry and its older, more mature cousin, the
offshore oil and gas industry.

Offshore wind

Market potential and hurdles

Thanks to a number of meteorological and
oceanographic characteristics, the North Sea and
the adjoining Baltic and Irish Seas are among
the best suited and extensive offshore wind
development regions in the world. Indeed, when
examined on the global level, the regions vast

25

Figure 1. Northern European offshore wind cumulative growth
forecast (Ineld Systems).
Figure 2. Offshore wind versus oil and gas: Northern European
infrastructure capex forecasts (Ineld Systems).
areas of shallow waters with high, sustained wind speeds
make the area quite remarkable.
Today, the European offshore wind industry is poised for
rapid and sustained growth. Bound by ambitious renewable
energy targets, EU member states have placed considerable
emphasis on the rollout of offshore wind to derive 20% of its
energy from renewable sources by 2020. Indeed, backed by
government subsidies and incentive mechanisms, current
developer aspirations and announced project plans are
indicative of surging growth within the industry. Ineld Systems
cumulative installed capacity forecast highlights the rapid
expansion of offshore wind going forward to 2015. Initially
slow to take off, with little growth between 2000 and 2007, the
industry is now gathering a strong head wind.
Quantitatively speaking, offshore wind offers enormous
opportunities; in the UK alone there is currently a pipeline
of projects nearing 50 GW, consisting of over 6500 potential
turbines and supporting infrastructure spread across
36 developments. In Europe, this gure rises to over 150 GW,
equating to over 25 000 turbines.
The capital required to deliver offshore wind on such a
scale is staggering. Indeed, by 2015, Ineld estimates an
industry capex of around US$ 20 billion in Northern Europe
alone. However, despite this robust outlook, the industry
remains constrained by supply chain limitations and a lack
of preconstruction nance. Given the youth of the offshore
wind industry and the lack of condence in the long term
performance of the market, such constraints are not
OILFIELD TECHNOLOGY
26 April 2011
surprising. However, these bottlenecks may also be attributed
to the relatively low exposure to offshore wind of those
players servicing the market. Indeed, many contractors realise
a far greater proportion of their revenue from the oil and gas,
civil marine and telecommunications industries compared to
offshore wind.
Competition
Offshore wind vs. oil and gas
In many respects, the offshore wind industry sits at the same
stage of development as North Sea oil and gas did during the
late 1960s and early 1970s. However, the wind sector may
benet from the decades of accumulated knowledge that the
oil and gas industry has produced. Concurrently however,
with oil prices breaking the US$ 100/bbl mark and E&P
activity starting a new up-cycle, offshore wind may also nd
itself in direct competition with the industry that holds the key
to unlock the barriers to growth the sector is facing.
Indeed, many of the contractors servicing the oil and gas
and wind industries are exposed to both markets. This is of
particular signicance for substructure fabrication, power
cable manufacturing and offshore construction assets such
as cable laying, heavy lift and transport vessels. Moreover,
demand for these services in the Northern European oil and
gas markets is expected to increase. The capex forecast
illustrated in Figure 2 highlights the growth in both industries
up until 2015.
The forecasted growth in demand for offshore oil and
gas services given in Figure 2 excludes the requirement for
decommissioning work. Given the vast network of ageing oil
and gas infrastructure in Northern Europe, decommissioning
demand is expected to coincide with increased demand for
wind farm installation services, creating further competition
for heavy lift vessels between the two industries.
Offshore construction and installation services should be
regarded as one of the key bottlenecks in the offshore wind
industry. The substantial capital required to increase capacity
for offshore vessels, combined with a lack of condence in
the long term performance of the offshore wind industry,
has made investors cautious in nancing newbuild vessels
targeted to offshore wind, nevertheless the success of
contractors such as Seajacks and MPI Offshore is noteworthy.
To date, this has meant that wind farm developers have
often used oil and gas assets, such as those operated by
Seaway Heavy Lift and Heerema, for installation services;
however, competition for suitable vessels has been tough.
As a result of this stiff competition, developers have
sought to vertically integrate in order to secure capacity
within the supply chain. This has been achieved through the
acquisition of contractors, such as DONG Energy acquiring
A2Sea in 2009, or through the construction of assets such as
RWE building its own installation vessels. Further down the
supply chain, Scottish and Southern Energy bought a 15%
stake in BiFab, the UK based fabricator of offshore structures.
A developers access to guaranteed construction capacity
will make projects more attractive to third party investors and
increase the developers chance of securing preconstruction
nance for the project.
Aside from competition for assets within the supply chain,
the two industries will go head to head in a battle to attract
and retain a skilled and experienced workforce. The presence
of a skills gap in the oil and gas industry is certainly nothing
new. Indeed, it is a key constraint that will be exacerbated
by the development of the offshore wind industry. The
wind sector is acutely aware of this potential shortfall and
programmes such as the Beluga Offshore Training Academy
are being developed to address the issue. This is of particular
importance as contractors in the wind industry may struggle
to compete with the deeper pockets found in the oil and gas
sector.
Synergies and opportunities
Oil and wind in harmony
Despite the competition for services, the petroleum industry
will undoubtedly play a pivotal role in the development
of offshore renewables. The oil and gas inuence is rst
observed at the operator level. Oil companies are not only
developing wind farms, they are also one of the major driving
forces behind innovation in the industry. Indeed, companies
such as DONG Energy, RWE, E.ON, Vattenfall and Centrica
have all invested signicantly in both offshore wind and
upstream E&P. Moving further down the supply chain, these
synergies continue with a host of contractors including
engineering rms, fabrication yards and offshore construction
companies having the knowledge and expertise to drive the
industry forward.
An excellent example of oil and gas inuence within
the offshore renewables market can be found in Statoils
development of the Hywind project. Inaugurated on
8 September 2009, Hywind is the worlds rst, full-scale
deepwater oating wind turbine. The project epitomises
the synergies between oil and gas and offshore wind on a
number of levels. To begin with, the project was conceived
READ about the latest
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gas sector on Energy Global
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and developed by an international oil company, Statoil,
whilst substructure engineering, fabrication and installation
was undertaken by the subsea engineering contractor,
Technip. Moreover, the technology employed for Hywind is
a traditional oating platform design transferred from the oil
and gas industry. The so called Spar hull was fabricated
at Technips Pori Yard in Finland, the same yard that has
developed large oil and gas platforms including the Tahiti,
Mad Dog and Holstein spars that have been installed in the
US Gulf of Mexico.
Statoil is not the only oil company spearheading the
development of offshore renewables; Shell has made
a valuable contribution having developed the wind
and solar powered Cutter platform, while Talisman and
Scottish and Southern Energy completed the far-from-shore
deepwater Beatrice wind farm. The former showcases
the opportunities to marry the world of renewable energy
and offshore E&P in the economic recovery of marginal
hydrocarbons, while the latter underscores big oils ability
to push the operational boundaries of offshore wind energy.
Technological pushes from the oil and gas industry
do not stop at the operator level. Indeed, the wealth of
operational expertise that has been nurtured in the oil and
gas sector during decades of offshore E&P activity provides
a solid platform on which offshore renewables can be
developed.
Indeed, Technip has recently launched a programme
to develop a vertical-axis wind turbine. Known as
Vertiwind, the project will see Technip, alongside Nenuphar,
Coverteam and EDF, develop a vertical-axis oating wind
turbine. This innovative project has the potential to reduce
the cost of oating wind energy due to the simplistic design
that negates the requirement for a large tower, nacelle,
yaw system, pitch system and gearbox. Moreover, the
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 design would allow the entire turbine and substructure to be
assembled in the yard, thus reducing offshore construction
time. With the Hywind project successfully completed,
Technip is positioning itself as a major player in the oating
wind energy market and signicantly contributing to the
sectors development.
There is also signicant opportunity for existing
technologies to be transferred from the oil and gas industry
to the offshore wind sector. Indeed, as wind farm developers
move into deeper waters, the traditional monopile foundations
will be replaced by jackets, tripods and trusses. Demand
for these structures will create opportunities for oil and gas
contractors from initial design through to fabrication and
installation. Contractors such as the UKs BiFab and the
Netherlands Heerema have already taken advantage of these
opportunities. BiFab was initially involved in the development
of the Beatrice project and has since won a 12 million
contract to design and manufacture two substation foundation
structures for RWEs Gwynt y Mor wind farm offshore Wales.
The yard has also secured an agreement with Scottish and
Southern Energy to rollout at least 50 jacket substructures for
wind turbines on an annual basis from 2014 onwards.
Conversely, offshore wind could stimulate the
development of the oil and gas industry. One example is
the cogeneration of offshore wind and gas assets. Such a
project would involve the development of traditional thermal
generating capacity, albeit in a marine environment, alongside
offshore wind. In such a scheme the wind farm would provide
the infrastructure, and hence the economic incentive, to
develop a marginal gas eld, the product of which would re
an offshore gas turbine. Power generated from both assets
would be exported to shore via the wind farms transmission
system. Cogeneration of this nature would tackle one of
the key problems with wind energy; resource intermittency.
An example of such a scheme, but one that fell by the
wayside was Eclipse Energys Ormonde project. Ormonde
cogeneration plant was to be developed
in the East Irish Sea but the project was
re-evaluated, and subsequently reverted to

Because Your Drill Pipe Deserves the Best a traditional wind farm following Vattenfalls
acquisition of Eclipse Energy in 2008.
Opportunities also exist to reuse existing
offshore oil and gas structures within

DurabandNC the renewables industry. Indeed, such

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structures have the potential to become
integral components of the offshore wind
TuffbandNC infrastructure. Existing oil and gas platforms
could be used as supply bases, operation and
Hardbanding Alloys maintenance platforms or substations for a
North Sea grid. The reuse of these structures
would have obvious benets to both parties.
Conclusion
The rollout of offshore wind at the pace
desired by EU nations will create stiff
competition for supply chain capacity and
skilled workers within the oil and gas industry.
100% Rebuildable Head to head battles for engineering,
fabrication and offshore construction services
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At the same time, however, the oil
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and their contractors are highly experienced
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www.hardbandingsolutions.com
 An illuminating exploration...
Duane Dopkin, Paradigm, US, points out how full azimuth decomposition,
imaging and illumination enhances deepwater exploration.
F
aced with replacing critical oil and gas reserves,
energy companies are focusing exploration
efforts in areas of challenging operational and
technical complexity. To conduct successful seismic
programmes in these areas, substantial investments
are being made to acquire wide and rich azimuth
seismic data. These rich azimuth acquisitions, in
turn, are combined with the latest seismic imaging
technologies (e.g. Reverse Time Migration) to
improve prospecting and return on investment for
these costly seismic programmes.
Geophysicists ask a lot from their seismic data.
Subsurface structures (e.g. salt, basalt) can be the
genesis of multiple wave types (e.g. converted waves,
multiples) and complex wave phenomena which
distort the seismic image to the point where many
iterations of velocity model building and seismic
migration are required before selecting defensible
prospects and drilling targets. In the deepwater
regions such as the Gulf of Mexico, this imaging
problem is compounded by salt geometries that
are highly irregular in shape in three dimensions.
These salt bodies may be overlain or truncated by
shale sequences that give rise to additional imaging
problems as they often introduce a directional
velocity dependency referred to as anisotropy. Proper
lateral and depth positioning of reected seismic
events below these anisotropic generators require
advanced velocity procedures to measure and model
these parameters.
In the past decade, the industry has made huge
investments in planning and acquiring seismic
acquisitions that are both rich and wide in azimuth.
These acquisitions are needed as geoscientists seek
better reservoir denitions in deepwater regimes
impacted by the geologic conditions described
above. Benets from these rich acquisitions
have been acknowledged and documented, and
29
integrity and are limited in their capacity to
extract subsurface attributes with azimuthal
dependency.
Although there are many ways to
decompose recorded seismic data,
ray-tracing procedures provide a vehicle to
simulate the subsurface camera. However,
unlike traditional ray tracing procedures
that are carried out from the acquisition
surface, we need a rich ray tracing engine
that can be initiated from any or every
image point in the subsurface. This rich
ray tracing shoots rays in all angles and
all directions so that we can capture and
preserve seismic data in an azimuthally
continuous manner. It is carried out in a
special reference system, referred to as
the Local Angle Domain (LAD). By carrying
out the ray tracing in this domain, we
can decompose seismic data into two
independent but complementary sets
of full azimuth gathers. The rst set of
gathers (reection) contains a continuous Figure 2. Comparison of conventional seismic depth image (left) and seismic depth image
(360) sampling of reectivity (amplitude) generated with full azimuth decomposition, imaging and specular weighting.
information as a function of reection
(opening) angle. These gathers provide
the data structure to detect and measure
velocity anisotropy, to predict lithology,
to detect stress directions, and to update
velocity models. The second set of gathers
(directional) contains a continuous azimuthal
sampling of the total scattered energy as
a function of the dip and azimuth of local
reecting surface. Since the total scattered
energy contains both continuous (specular)
and discontinuous (diffracted) energy, we are
able to easily differentiate and create images
that emphasise these two components
(Figure 1).
The combination of the two angle
gathers, together with the ability to handle
the full azimuth information in a continuous
manner, enables the generation and
extraction of high resolution information
about subsurface angle dependent
reectivity in real 3D space. The complete
set of information from both angle gather
types expands our knowledge about
Figure 3. Point-diffraction ray tracing from a subsalt reection image point. See text for
both continuous structural surfaces and
expanded explanation.
discontinuous objects, such as faults and
small-scale fractures, leading to accurate,
high-resolution, high-certainty, velocity directivity originating from local heterogeneities such as
model determination and reservoir characterisation. channels and fractures. The ability to decompose the specular
and diffraction energy from the total scattered eld allows for
Enhancing deep reflectors the creation of enhanced feature images from the fully recorded
Full azimuth directional angle gathers represent a seismic waveeld.
decomposition of the total scattered energy waveeld into dip/ In the deep waters of the Gulf of Mexico, for example,
azimuth angle bins at all subsurface points. These gathers the interpretation of subsalt reectors is often challenging
contain information about both specular and diffraction energy. because of wave interference (e.g. multiples, converted waves),
Specular energy is associated with reectors from continuous attenuation, ambiguities in velocity model denition, and
interfaces. Diffraction energy is associated with non-specular complex wave phenomena. To compensate, we can use the

OILFIELD TECHNOLOGY
April 2011
31

Figure 1. Decomposition and imaging in the local angle domain. Ray tracing reference (left), full azimuth
reection angle gather (centre) and full azimuth directional angle gather (right).
include improved multiple suppression, noise suppression
and illumination of target areas. However, while the resulting
seismic images inherit many of the benets of rich and wide
azimuth acquisitions, the application of current seismic imaging
technology can fall short in exploiting the full potential of these
acquisitions.
While advances in seismic imaging continue at a rapid pace,
most of the solutions are limited in their ability to properly deal
with the rich azimuthal sampling of data recorded at the surface.
What is needed is a solution that allows us to better qualify
and even quantify the expenditures that we make in seismic
acquisition and imaging. The solution should assist us not
only in understanding the implications of our assumptions and
simplications in dealing with wide and rich azimuthal data, but
also help us assess where we can make changes that will have
the most impact on our seismic programmes.
To achieve this objective, we need to give proper attention to
the issue of mapping rich azimuthal data recorded at the surface
to image points in the subsurface. Recognising the full potential
of rich and wide azimuth seismic data acquired in deepwater
exploration areas requires a signicant upgrade to our seismic
imaging, characterisation and interpretation technologies. Much
like a camera equipped for continuous recording at all angles
and directions, this upgrade would provide a comprehensive
decomposition of the recorded seismic data into physical
domains that recover and preserve subsurface illumination in all
orientations and angles in a continuous manner. If successful,
we will introduce new seismic data representations that allow
us to better understand subsurface illumination, to better qualify
seismic images, to reduce the non-uniqueness of the seismic
method, and to better describe the critical parameters of the
velocity model.
Limitations of azimuthal sectoring
Much like the benets of capturing images from a continuously
revolving and pivoting camera, the benets of sampling the
subsurface with continuous azimuth are well understood.
Azimuthal sampling of seismic data allows us to better detect
and measure velocity anisotropy, to identify and separate
OILFIELD TECHNOLOGY
30 April 2011
different wave types, to
predict lithology from
more meaningful seismic
signatures, to detect stress
orientations and intensity,
and to understand the
dependency of seismic
acquisition on image quality
(illumination). However,
unlike the camera analogy,
capturing seismic data at
every subsurface point in
all angles and directions
(azimuths) is much more
problematic. Computational
and operational barriers often
limit the solution to surface
acquisition interpolation
schemes followed by course
acquisition sampling of
surface azimuths (sectoring)
rather than the desired
decomposition and imaging of seismic data to continuous
subsurface azimuthal datasets.
Although intuitively attractive, the surface sectoring
approach has severe drawbacks. Sector decisions (size and
number) are often taken independently without consideration
given to the subsurface. Instead, decisions are often taken out of
convenience to accommodate project deadlines and application
limitations of dealing with multi azimuthal data. More importantly,
sectors formed over a range of surface azimuths lack the
resolution and accuracy to properly use the entire recorded
waveeld to uncover the information and data listed in the
previous paragraph. This is particularly true when long offsets
are involved. Finally, while easy to create, sectored datasets are
processed independently and subsequently must be analysed
and interpreted. Extracting a holistic interpretation from the
analysis of these independent datasets is not straightforward.
To resolve these issues, we introduce a new seismic
decomposition procedure that replaces images constructed
from sectored source to receiver offsets and azimuth with
data structures and images constructed from in-situ angle and
azimuth data at any or all subsurface image points. The rich
information from all angles and azimuths ensures more reliable
analysis and signicantly reduces reector position uncertainty.
The solution is designed to deliver a complete set of data
containing accurate subsurface velocity models, structural
attributes, medium properties, and reservoir characteristics.
A new seismic perspective
All seismic imaging methods decompose seismic data into
organised domains of subsurface data that provide the pathway
for other data analysis procedures including velocity analysis,
AVO(A), and other seismic characterisation solutions. These
organised data domains (pre-stack gathers) can take many
different forms with vertical sampling in time or depth, and
spatial sampling in surface offset or subsurface angle. There are
other representations of pre-stack gathers depending on the
seismic imaging technology being used. However, other than
forming gathers with the sectoring approach described above,
all of these pre-stack gathers carry no directional (azimuth)
 prospects selected on the
basis of amplitude or amplitude
continuity.
Illumination analysis is
routinely carried out with ray
tracing procedures. Here, the
rich bottom-up ray tracing
procedure described earlier
is used to secure a uniform
illumination of the subsurface
and establish a mapping of
subsurface angle parameters to
surface geometry parameters.
The result of this ray tracing
procedure is a rich set of
illumination factors (angle
dependent) and physical ray
parameters (e.g. geometric
spreading, reliability factors)
that are essential for quality
control of imaging results,
especially below complex
structures such as salt bodies.
Figure 4. Rose diagrams of ray-pair illumination intensity captured at acquisition surface (top) and Figure 3 shows an example of
subsurface image points (bottom). See text for expanded explanation. point-diffraction rays traced
from a subsalt reection point,
energy values computed from the full azimuth directional angle where only a subset of the rays arrive to the surface within the
gathers as weighting factors in the creation of the nal image. given aperture (green rays).
The high energy values associated with the specular directions The full benet of this type of illumination can be
sharpens the image of the deeper reectors (Figure 2) at the appreciated by the generation and evaluation of illumination
expense of the scattered or non-specular energy in the data. Rose diagrams. Figure 4 (top) shows the ray-pair illumination
Additionally, the focusing of the specular energy we observe in intensity from three subsurface image points arriving at the
the directional gathers serves as an indicator of velocity model surface from different distances and azimuths. The narrow
error and accuracy. This full azimuth subsurface decomposition azimuth acquisition geometry is clearly noted. Figure 4
of the recorded waveeld into directional gathers provides the (bottom), on the other hand shows the same ray-pair
means to more precisely unite the elds of seismic imaging and illumination intensity, this time at the subsurface, as a function
interpretation in areas of complex wave phenomena. of opening angle and azimuth. Note the poor correlation of
orientation at crossline 325, reecting a large translation in
Resolving anisotropic ambiguities azimuth as rays pass from the surface through the salt. This
Modelling anisotropic velocity behaviour in deepwater provides a strong visual argument against using surface
exploration basins is critical for a more accurate lateral and azimuthal sectoring as a procedure to deal with wide azimuthal
depth positioning of reected events beneath the anisotropic data.
generating formations as well as for the creation of more
interpretable seismic images. Full azimuth reection angle Conclusions
gathers allow geoscientists to visualise the inuence of Full azimuth decomposition, imaging, and illumination provide
anisotropy on the moveout of reection amplitudes sampled deepwater exploration professionals an additional and powerful
continuously over all azimuths. The analysis of anisotropic tool to evaluate subsurface complexities. The full power of the
behaviour can be visualised in three dimensions so that the solution is realised in its ability to decompose the recorded
sources of anisotropy can be better understood and the strength seismic waveeld into the physically meaningful domains of
of anisotropy better appreciated. When coupled with the reection angle and reection dips over a full and continuous
information and data contained in the full azimuth directional range of azimuths. The solution is a well needed complement
angle gathers, geoscientists are better able to differentiate to a portfolio of existing deepwater seismic imaging
between different types (e.g. VTI and TTI) of anisotropy. technologies that collectively remove imaging uncertainty and
improve the non-uniqueness of the seismic experiment. O T
Resolving illumination ambiguities
Subsurface illumination analysis is a widely used technique References
1. Koren, Z., I. Ravve, E. Ragoza, A. Bartana, and D. Kosloff, 2008, Full
in deepwater exploration areas to better understand the
Azimuth Angle Domain Imaging: 78th Annual International Meeting,
dependency of the seismic image on the seismic acquisition SEG, Expanded Abstracts, 2221-2225.
and velocity model description. When used properly, it can 2. Zvi Koren and Igor Ravve, Full-azimuth subsurface angle domain
wavefield decomposition and imaging, Part 1: Directional and reflection
deliver information about imaging reliability, help dene optimum image gathers, Geophysics, Vol. 76, No. 1 January-February 2011; P.
imaging parameters, enhance acquisition geometry, and validate S1S13.

OILFIELD TECHNOLOGY
32 April 2011
 IMPROVED IMAGING
Gary Rodriguez, Sherry Yang
and Laurie Geiger, TGS, USA,
present a project to improve
imaging in a low velocity trench
area in the Gulf of Mexico.
H
igh quality seismic imaging is a key to successful
hydrocarbon hunting. The creation of such
images can be especially challenging in
geologically complex areas. This article presents a
case study of an anisotropic prestack depth migration
(APSDM) project that used high resolution, shallow
tomography and anisotropic model building to solve
complex imaging challenges for a large depth migration
project in the Gulf of Mexico. Compared to previous
processing in the area this enhanced work ow resulted
in higher quality images and more accurate placement
of events. The project consisted of approximately
553 OCS blocks of data in the Mississippi Canyon,
South Timbalier, Ewing Bank, Grand Isle, Grand Isle
South Addition and Ship Shoal South Addition areas
(Figure 1).
The goals of this project were to improve the imaging
of steep dips, salt boundaries and subsalt events, and
produce a more accurate velocity model that would
enhance event placement. A solution to the problems
posed by the low velocity South Timbelier trench was
critical to the success of the project. To this end the
trench area, which was addressed in previous processing
efforts with refraction statics, was modelled using high-
resolution tomographic velocity inversion to produce a more
accurate shallow velocity eld. Additionally, APSDM was
employed to better tie the seismic events with well information.
Background
The survey is located in an area of the Gulf of Mexico with
many complex surface structures and geologic challenges.
To overcome these challenges, the previous processing used
long period refraction static corrections and short period
surface consistent static corrections applied in the time
domain prior to migration. Figure 2 shows the bathymetry of
the data area, with the trench area highlighted by the white
box.
Traditional refraction statics solutions use static shifts
to address the time delays caused by shallow velocity
anomalies. However, the refraction solution causes sags in
the resultant seismic image due to the longer travel times
through the slow velocity layer. The refraction solution solves
the travel time delay induced by the layer and applies a
static shift to the traces so as to minimise the resultant time
33
 sag. While these static shifts generally produce much improved
time images deeper in the section, the time static applied is
not kinematically correct for depth migration. In particular, this
could lead to velocity distortions when solving for the depth
velocity eld. These distortions could affect the entire velocity
model.
Therefore, when planning the velocity modelling approach for
this project, it was decided that a high resolution tomographic
inversion would be attempted to more correctly model the
velocities in the South Timbalier trench area. If correctly
modelled, a more stable velocity eld and a more accurate depth
image should be expected.
Since tomography cannot resolve the high frequency
component of the shallow velocity variation, this part of the static
solution, which derives from surface consistent residual statics,
was retained.
The other key enhancement to the previous processing ow
was the use of APSDM. Through the use of abundant check
shot velocity information and anisotropic parameter estimation,
well-calibrated velocities were used for migration. The use of a
calibrated velocity eld should ensure better well ties with the
seismic data.

Initial anisotropic model building

Figure 1. Project area.
Figure 2. Water bottom showing trench area within the white box.
A total of 539 check shots were analysed for use as a starting
point for building the initial velocity model. The check shot
velocity functions were analysed and spurious trends edited.
These edited check shot velocities were gridded, interpolated
and smoothed to generate the initial vertical velocity model (Vz).
An isotropic Kirchhoff migration was run using the Vz model.
The resultant image gathers were used in a two-parameter
semblance scan. The semblance cube that was generated had
three axes: depth, epsilon and delta (two of Thomsens weak
anisotropic parameters)1. The maximum semblance on each of
the depth slices occurs at the epsilon and delta values that best
atten the gather at that depth. A semblance cube was generated
for each of the key well locations. The semblance cubes were
automatically scanned to estimate the optimal epsilon and delta
trends. These epsilon and delta values were then smoothed,
interpolated and gridded to populate the 3D model. To verify the
integrity of the epsilon and delta elds, these elds were used to
remigrate the data, this time using anisotropic Kirchhoff prestack
depth migration. Gather atness, event focusing and well ties were
checked. Another iteration of parameter estimation was run to
rene the epsilon and delta elds, after which the initial anisotropic
sediment model was complete.

High resolution trench tomography

Figure 3. Map view of residual curvatures over low velocity trench.
The resultant Vz, epsilon and delta elds were then used as a
starting point for tomographic velocity updating. A full volume
high resolution anisotropic prestack depth migration was
run over the trench area. Typical model building runs output
10 m depth steps with 300 m between output offsets (input
offset increment of 150 m). In order to correctly derive residual
curvature estimates for the shallow data, a ner offset and
depth sampling were deemed necessary. Consequently, for
these iterations a depth step of 5 m was used, and the output
offset increment was 150 m. Furthermore, the tomography
inversion cell size was decreased compared to that of a typical
work ow. Additionally, these early iterations were limited in
depth to 4 km.

OILFIELD TECHNOLOGY
34 April 2011
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 The APSDM gathers were scanned for residual curvature.
Figures 3 and 4 show the auto-picked residual curvature
estimates that were put into the tomography velocity inversion.
Over time, the deep trench, as shown in Figure 2, was lled
in with slow velocity mud. The red residual curvature values
in Figure 3 relate to positive move-out (increase in reection
depth with offset), implying that a velocity decrease is needed
in this area. The curvature values along with derived dip elds
were input into the rst tomographic inversion. In evaluating the
residual curvature picks it was noted that there was a strong
correlation between areas of positive residual curvature and the
previously derived refraction statics solution. A positive residual
curvature requires a slowdown in velocity in order to atten
Figure 4. Inline view of residual curvatures through low velocity
trench.
Figure 5. Velocity update output from tomography.
Figure 6. Prestack depth migration with initial model.
OILFIELD TECHNOLOGY
36 April 2011
gathers. A shallow slow velocity region is exactly what one
would expect in the unconsolidated Timbalier trench area.
Figure 5 shows the velocity perturbation that was output
from the tomographic update. The green region of this display
is an area of negative velocity updates (velocity slowdown).
Figure 6 shows the seismic data migrated with the initial velocity
model. The white circle indicates the trench area. This correlates
well with the regions of negative velocity updates that are shown
in Figure 5.
Figure 7 shows the result of migrating with the updated
velocity model. Below the trench area much better event
continuity is evident. Faults are better imaged and reectors
appear more geologically realistic. The red arrow seen in
Figure 6 highlights an event sag that is induced by the slow
velocity anomaly. The red arrow in Figure 7 shows the same
area after tomographic velocity updates. The sub-trench events
do not have this velocity sag. This is contrasted with the image
obtained by migrating with the data that had refraction statics
applied before migration and velocity updates. This image is
shown in Figure 8. The original migration using refraction statics
appears to have false structures induced by distortions in the
velocity model.
Velocity model updating
The anisotropic sediment model was further updated with two
passes of grid based tomography. These iterations went to a
total depth of 12 km and were output with a 10 m depth step
and a 300 m offset increment. For each of the tomography
iterations, 3D anisotropic prestack Kirchhoff depth migration
was run, and residual curvature analysis was performed on
the resulting image gathers. Automatic dip estimation was
performed on the stack volume for use in the tomography
ray tracing steps. A new dip eld was created for each of the
iterations that were run. Any rays travelling through salt were
not used in the tomography matrix solution. Vz was updated
from the inversion results, and well ties was rechecked and
recalibrated. After recalibration of the velocity eld, the epsilon
and delta elds were then adjusted in order to preserve both
atness of the resultant gathers and the ties to the check shots.
Accounting for the shallow trench area allowed for better
imaging and placement of events around this region. Because
the imaging was more accurate, sub-trench structures, including
Figure 7. Prestack depth migration after shallow, high resolution
tomography.
salt, were more correctly shaped and positioned. This in turn
allowed for a more accurate dip eld. All of these improvements
led to a more accurate migration in the shallow region, which,
in turn, resulted in better tomographic velocity updates and
improved imaging below the trench and throughout the project.

Salt model building

The salt geometry was quite complex. In order to correctly
dene salt overhangs, the salt geometry was dened using four
passes of APSDM. Initially, top of salt was picked on the image
produced by migration with the nal supra-salt sediment velocity
eld. At this stage, salt boundaries interpreted from the seismic
images were checked against top salt events picked from well
data. Vz, epsilon and delta were then adjusted accordingly
in order for salt tops to image at the proper depths, while
simultaneously preserving the image gather atness.
The rst base of salt was interpreted on seismic images Figure 8. Previous isotropic WEM with refractions statics.
produced after APDSM using the recalibrated salt ooded
velocity model. A migration was then run with the rst top and
base of salt inserted into the model, and second (deeper or References
1. THOMSEN L., Understanding Seismic Anisotropy in Exploration and
overhung) salt tops were interpreted. Next, APSDM was run,
Exploitation, 2002 Distinguished Instructor Short Course, Number 5,
which ooded below the second top salt. The second base salt SEG, Tulsa, OK, USA.
was then interpreted, and the nal salt model was constructed
using these four surfaces. The data was then migrated with the Bibliography
s RODRIGUEZ G., YANG, S., YANG, D., ZHANG Q., and HIGHTOWER, S.,
interpreted salt geometry.
Anisotropic Depth Migration and High Resolution Tomography in Gulf
of Mexico: A Case History, 72nd EAGE Conference and Exhibition,
Subsalt velocity model updates Expanded Abstracts, 2010.
s RODRIGUEZ G., YANG, S., YANG, D. , ZHANG, Q., and HIGHTOWER, S.,
A nal tomography pass was performed for the subsalt areas. In Improved Imaging through Anisotropic Depth Migration and High
this iteration, sedimentary regions of the model, both under salt Resolution Shallow Tomography In Lieu of Refraction Statics in South
Timbalier Trench Area of Gulf of Mexico: A Case History, 79th Annual
and away from salt, were updated. Tomography inverted for the International Meeting, SEG, Expanded Abstracts, 2009.
velocity updates, which were subsequently added back to the s WOODWARD, M., FARMER, P., NICHOLS, D., and CHARLES, S.,
Automated 3D tomographic velocity analysis of residual moveout
previous sediment model. Salt was inserted back into the nal
in prestack depth migrated common image point gathers: 69th SEG
sediment model to produce the nal salt velocity model. Expanded Abstracts, 1218 - 1221,1999.
The nal imaging step was run with the anisotropic prestack
Kirchhoff depth migration using an increased aperture. Turning
rays were also used in the migration to better image steep dip
salt anks.
0Z`V\Y
0U[YVK\JPUN(76336MYVT*HTJVU6PS

Conclusion
The enhanced workow for this project included using a
well-tied anisotropic sediment model, anisotropic prestack NHZSPM[
Kirchhoff depth migration, modelling of salt bodies with

ZVS\[PVU
overhangs, and iterations of both supra-salt and subsalt
tomography, including two shallow, high resolution iterations.
This methodology resulted in a high quality image with more

NP]PUN`V\
accurate event placement and geologic structures. Salt
boundaries and steep or overturned events were imaged much
better than in previous processing. Deep structures and subsalt

HSS[OL
events were more geologically sensible and had increased
continuity. Addressing the slow velocity zone using tomography
rather than using a refraction statics solution resulted in better

SPM[`V\
focused shallow faults and more realistic structures in the
Timbalier trench area and beyond. O T

Acknowledgments
The authors would like to acknowledge Diane Yang, Quincy Zhang
and Steve Hightower who worked on this project. The authors ULLK&
would like to thank those who helped review this paper, including
Simon Baldock, Michael Ball, Connie Gough, Bin Wang and
Zhiming Li. Thanks also to TGS for allowing this work to be
;OLYZ[+PNP[HS0U[LSSPNLU[(Y[PJPHS3PM[+0(3ZVS\[PVU
published.  4VYL3PM[
 *VU[YVSSLK3PM[
 +LLWLY3PM[
 +\HS*VTWSL[PVU3PM[
=PZP[^^^JHTJVUVPSJVT[VUKV\[TVYL
 [COVER STORY]
The road to recovery
F
or offshore oil and gas elds, well intervention and
drilling sidetracks are methods to increase the
oil production from existing wells. Operators can
signicantly improve offshore hydrocarbon recovery from
both greeneld and browneld reservoirs by installing
subsea processing systems. Subsea processing
presents signicant potential for cost savings by moving
some of the traditional topsides uid processing to
the seabed. Subsea separation and local re-injection
of produced water and/or gas to the reservoir or to a
38
dedicated disposal zone will allow owlines and topside
processing equipment to be used more efciently.
Subsea gas/liquid separation and liquid boosting can
increase the production rate in low energy reservoirs.
Treating the production ow at the seabed provides
many opportunities to achieve more effective exploitation
of oil reservoirs around the world. Subsea separation
and boosting allows marginal reservoirs to be developed
economically, and in some cases, can eliminate the
need for surface host facilities. This is important as
 Brian Skeels, FMC Technologies, and Lars Farestvedt, MPM, US, consider
solutions for maximising reservoir recovery in this issues cover story.

the industry must turn to reservoirs that are not easily
accessible in order to maintain energy supply.
The focus is now on addressing the challenge of how
to cost-effectively produce oil and gas from offshore
elds located in deeper waters and more remote areas.
The traditional way of improving asset value using
subsea processing has been through installing a
multiphase pump close to the well. Subsea multiphase
pumping is an effective means to improve the economics
by reducing back pressure on the reservoir, which
increases well ow rates and total recoverable reserves.
However, it has been limited to applications in shallower
water with shorter tieback distances. This is primarily
because of the limitations in the pumping technology
itself.
As offshore production moves to deeper, harsher
environments, the use of surface structures is becoming
prohibitive due to complexity and cost. This has led to
subsea processing, which has created a new emerging
market for processing equipment.

39

Figure 1. Through Tubing Rotary Drilling (TTRD) system makes it
possible to enter a well and drill a sidetrack from the parent well
without having to pull the tubing.
Figure 2. MPM 3D Broadband technology detects accurately and
rapidly to determine how the liquid and gas is distributed throughout
the pipe.
Riserless light well intervention
With the rising number of ageing subsea wells in the North Sea,
the demand for efcient subsea light well intervention service
continues to grow. Such service has been in operation in
the Norwegian sector for the past six years and is currently
experiencing exponential growth with the addition of several
more intervention systems spurred by continued long term
commitments.
FMC Technologies second generation Riserless Light Well
Intervention (Mark II) makes interventions feasible in deeper
water by reducing weight, optimising the size of pressure
control and closure devices, and upgrading the control
systems. It uses a compact, electric, ROV-style optic-electrical
umbilical cable that can be disconnected quickly and safely
without ROV assistance and stands up to rigorous heave
compensation winches. Reconguration between wells and/or
tasks is much easier and more efcient than it used to be.
Principles from the rst generation were largely maintained
for well barriers and overall system philosophy. To improve
OILFIELD TECHNOLOGY
40 April 2011
operational efciencies, the control system architecture was
updated, mitigating the possibilities of time lost due to handling
of the large diameter IWOCS electro-hydraulic umbilical.
The approach was to remove on-deck based surface power
generation equipment while replacing the maze of hydraulic
hoses and ttings associated with the cumbersome IWOCS
umbilical with the ROV-style cable. The subsea IWOCS
controls powered by the cable feature the same distributed
control architecture found on newer work class ROVs, taking
advantage of IP routing and control.
Field operators have concluded that the intervention
cost for individual production wells is paid back in less than
20 days of increased production. With strong HSE focus,
comprehensive planning and training and the right technology,
the RLWI operations have proven to be a cost-efcient
increased oil recovery tool, which enhances the value of the
operators assets in subsea elds.
Mark II has experienced success in water umbilical
management, safer deck handling, efciency from remote
in-situ uid delivery and hydrate control. Improved well control
barrier equipment now accommodates a third longer length
wireline tools, as well as electric powered control system
architecture by using the ROV-style cable. Autonomous grease
injection capability, subsea monitored chemical injection
and uid exchange/ushing capabilities have reduced uid
wastage and contingency tankage requirements. These
accomplishments are all due to the recommendations and
lessons learned from rst generation RLWI systems.
Through tubing rotary drilling
As the number of elds drilled with subsea developments
increases and the need to increase production remains ever
present, innovative technology to help operators produce more
hydrocarbons out of existing reservoirs remains one of the
industrys top priorities.
FMC Technologies Through Tubing Rotary Drilling (TTRD)
system makes it possible to enter a well and drill a sidetrack
from the parent well without having to pull the tubing. A
sidetrack well can be drilled from deep within the current well
through the installation of a whipstock at the selected depth
and the milling of a window in the liner. Since sidetracks
are drilled below the production packer with the drill pipe
conducted through the tubing, neither the tubing nor the
Christmas tree needs to be removed.
Both the whipstock installation and the window milling can
be achieved in one run. The TTRD system conguration allows
drilling, well testing and completion to be performed through
one system, compared to traditional methods that require the
installation of two individual systems. The TTRD conguration
consists of a tree adaptor, lower riser package, emergency
disconnect package, Merlin riser, surface BOP, marine riser slip
joint and surface ow tree.
Once the TTRD rig is mobilised, both TTRD and well
interventions can be performed. The new stack conguration
opens the door for improvements in other operational
sequences and may also adapt to new drilling techniques in
the future.
In subsea wells, damage to horizontal subsea trees has
been a persistent problem. The TTRD system features
t-for-purpose protection sleeves for the seal areas in the
completion, non-abrasive hard banding, bottom-hole assembly
 on e l y ?
L Turn to page 47...
 measurement range for multiphase
meters for topside and subsea
applications. The self calibrating
feature implemented in the MPM meter
is a step change from conventional
multiphase meters. This new feature
is achieved through implementing
salinity measurement functionality
in combination with the in-situ uid
property verication. The MPM meter
works equally well for multiphase
and wetgas applications, for gas void
fractions of 0 100% and water cut of
0 100%. The 3D Broadband
technology is employed to accurately
and rapidly determining how the liquid
and gas is distributed throughout the
pipe, while at the same time determines
precise ow rates of oil, gas and
water. For slugging ow regimes, the
MPM meter will automatically switch
up to ve times per second between
the multiphase and wetgas modes,
bridging a gap previously not covered
by multiphase meters. The MPM subsea
multiphase meter has been qualied
through the stringent DNV RP-203
qualication process to an impressive
15 000 psi working pressure and 480 F
working temperature. The MPM meter
has also been designed for 11 500 ft
water depth.
MPM Subsea Multi Phase Meters
utilise patented (seven patents)
technology achieving signicantly
improved real-life measurement of oil,
gas and water on the seabed. Through
using the DualMode automatic
switching between multiphase and
wetgas measurements, one meter can
be used for the full eld life even if the
wells change from predominantly oil to
predominantly gas, and as the water
cut increases from close to zero to
Figure 3. Riserless Light Well Intervention makes interventions feasible in deeper water. close to 100% in late life. The meters
unique self calibration functionality
furthermore automatically measures and
designs that are not aggressive to the completion, and the compensates for changes in the water salinity, eliminating the
Christmas tree and a crown plug with elastomer. need for costly subsea sampling to calibrate the meter.
Typical costs for a new subsea well can range from The MPM meter allows the operators to improve reservoir
US$ 40 50 million. The new drainage points created monitoring and increase recovery. Measuring miniscule
for one FMC customer using TTRD are estimated to cost amounts of water in gas wells extremely accurately (down to
US$ 10 million. Smaller reserve pockets are suddenly more 0.002%), the operator can optimise and signicantly reduce the
economical and existing wells will have a longer life and a amounts of chemicals injected to mitigate hydrate formation.
longer revenue stream. Additional benets of TTRD include With its signicantly lower sensitivity to uid property changes
reduced fatigue exposure to the wellhead and more efcient and the in-situ self calibration functionalities found in the
operations with less handling of heavy equipment. MPM meter, the operator can reduce and often eliminate the
need for subsea sampling. Not having to bring a sampling
Multiphase meters bomb to the surface from a 10 000 ft deep high pressure
The MPM multiphase meters employ tomographic technology subsea well not only signicantly reduces cost, but also
to signicantly improve measurement accuracy and removes a potential safety hazard. O T

OILFIELD TECHNOLOGY
42 April 2011
The low-hanging fruit is long gone. Every day its more of a challenge to increase oil and gas
recovery and production from aging, under-producing elds and complex new ones: arctic
and ultradeep subsea elds; tight sands, shale and thermal oil sands; HP/HT, long distance,
deepwater complex pre-salt or lower tertiary formations. Whatever the need, we have
the technology rigorously proven in the worlds toughest situations to raise your
recovery factor and production to unprecedented heights. Not some day. Now.

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sets new remote intervention standards
with 1-hour maintenance, industry-leading
stability and position control accuracy.
 n, C am co n Oil, U K , explains
Ian Anderso st in d eveloping
lift can as si
how artificial gas a ex traction.
teg y for sub se
a long term stra
Lifting
expect ations
T
here is little doubt that too often over the past
two decades, subsea oil and gas production
strategies have been guided by short-term
decision making predominantly by uctuating oil and
gas prices.
It is, of course, vital to ensure that production in
elds adheres to strict economic criteria. There is no
sense, for example, in operating a eld for many years
that has reached its economic limit - namely when the
production rate no longer covers the expenses incurred
extracting the hydrocarbons.
Operators, however, are often quick to leave existing
elds when they have reached recovery rates of around
30% (the recovery factor being the ratio of producible oil
reserves to total oil in place for a given eld), sacricing
these elds in the relentless search for new oil. And
this is not helped by their economic limit being a
44
moving target uctuating due to the inuences of
worldwide supply and demand.
The North Sea is an example of operators not doing
enough to maximise their assets. How often has it been
said over the past few years that North Sea oil is running
on empty? And that we are dealing with the very dregs
of the reservoir.
Yet, despite this, the last few years have seen
renewed interest, albeit often from smaller players.
According to the Norwegian Petroleum Directorate
(NPD), there were 16 new discoveries on the
Norwegian Continental Shelf (NCS) in 2010, with the
NPD estimating that more than 50% of oil remains in
Norways elds.
The same is the case on the UK Continental Shelf
(UKCS) where the latest 26th licensing round led to the
largest number of bids since the rst round in 1964.
Oil and Gas UK, the trade association for the UK offshore
oil and gas sector, believes that up to 25 billion bbls
remain to be won from the UKCS.
It is these kinds of gures that leads one to the
conclusion that many of the larger operators were
premature when deciding to take leave of the North Sea
in search of richer potential assets elsewhere mainly due
to a short term production strategy. It is also possible that
incidents, such as the Macondo spill, may turn out to be
an example of fast-tracking the search programme and
pushing out the boundaries of oil and gas exploration too
quickly.
The focus on EOR
The last few years have seen more operators looking
to next generation enhanced recovery techniques as
a means of trying to meet and then alter the economic
limit of their elds. With new frontier regions increasingly
remote, geologically complex and expensive, there is also
an element of needs must.
In the North Sea, Norwegian operator, Statoil is a
good example of how recovery rates can be signicantly
improved. The company has a target recovery factor of
65% for platform operated elds and 55% for
subsea-operated elds and is starting to make good on
these goals.
Similarly in the Middle East, ambitious targets are
being set. Saudi Aramcos President and CEO,
Khalid A. Al Falih, has released a target recovery rate
of 70% from its major existing elds and in Oman, oil
production has actually increased by 17% over the last
two years with much of this due to EOR techniques.1
Yet there is clearly more to do and few are satised
with the current, albeit improving, levels of recovery.
45

Figure 1. Key internal elements of Camcons digital articial lift
solution.
Figure 2. The Camcon digital articial lift solution APOLLO.
Even in Norway, which boasts some of the highest recovery rates
in the world, there is a concern over the inability to maximise oil
and gas reserves. Bente Nyland, Director General of the Norwegian
Petroleum Directorate, said in a recent press release: We are still
not satised. If we manage to recover just 1% more, this would
mean revenues in the hundreds of billions for Norway.
And these potential windfalls of enhanced recovery are
clear worldwide. According to Oil & Gas Journal, an increase
of 1% in recovery rates would replace three years of global oil
consumption.
Closing the subsea information gap and
countering well instability
So how can effective oil recovery strategies be employed, while still
increasing these rates?
In answering this question, it is also important to tackle another
issue the widening recovery gaps between topside and subsea
wells, with the latter generating average recovery rates of up to
15% less than their topside counterparts.
The high costs and risk proles of subsea intervention are major
contributors to this gap as are two ongoing threats - well instability
and the lack of information on subsea wells.
Well instability can be due to a number of reasons, including
water breakthrough; slugging the accumulation of water, oil or
condensates in the pipeline; or increased pressures in the well.
While well instability rarely results in catastrophic scenarios, it can
still be a major impediment to reservoir performance and recovery
rates.
OILFIELD TECHNOLOGY
46 April 2011
Linked to this is the lack of information from which many
operators suffer, with regard to their subsea wells and key variables,
such as temperature, gas ow or the amount of water or sand
in the production ow. This information gap often translates into
a production gap. The twin themes of well instability and the
importance of generating vital, real-time information will be constant
themes throughout the rest of this article.
Improving oil recovery strategies
There are a wide variety of technologies on the market today trying
to address oil recovery challenges technologies normally coming
into effect once primary and secondary recovery methods have
been exhausted.
These include chemical injection, where chemicals such as
alkaline or caustic solutions, are utilised; thermal injection where
techniques are used to heat crude oil to reduce its viscosity; and
newer technologies such as microbial injection.
Probably the most common form, however, is gas injection,
where gases, such as CO2, natural gas or nitrogen, are injected into
the reservoir in order to either push gases through the reservoir or
decrease viscosity within the oil. Probably the most common form
of gas injection is articial gas lift.
The importance of artificial gas lift
Articial gas lift consists of injecting gas into the production tubing
to reduce the impact of the hydrostatic pressure where the reservoir
pressures are not sufcient to force the hydrocarbons to the
surface. By reducing the density of the columns, reservoir liquids
can enter the wellbore at higher ow rates. Articial gas lift normally
sits beside other forms of articial lift, such as beam pumping,
electric submersible pumps, and hydraulic pumps.
Whereas in the past, it might have been considered a
secondary or tertiary technique, today, articial gas lift can be, and
often is, employed at any time during the productive life of the elds
sometimes even from the outset.
10% of wells in the US, for example, use some form of
articial gas lift2 and in Bahrain, 60% of oil wells use some form of
articial lift to generate 50% of the Kingdoms total oil production.3
Spears & Associates estimated that the total global articial lift
market was worth US$ 6.9 billion in 2008.
While there are clear benets to what has become an
established technology, there are also limitations to articial gas lift,
many of which come back to the lack of information.
Operators usually have very little information on pressure and
temperatures at the point of gas injection, as well as no control or
exibility to alter injection rates as production variables change.
The primary method of gas injection is still to be found in the
side pocket mandrel congured completions, where wireline
interventions are used to change the operating valve when injection
rate changes are necessary. Such interventions can be a long and
cumbersome process, leading to damage to existing infrastructure
(if the wire snaps, for example) and the halting of production as a
new side mandrel unit is installed. These side mandrel tools also
have no instrumentation onboard.
This lack of information and exibility means that rather than
providing more control of the stability of wells, articial gas lift can
actually cause greater instability.
This is due to the potential for articial gas to increase the
probability of dramatic ow uctuations, unpredictable surges in
liquid and gas production rates, and increased concerns over the
integrity of the casing and tubing, leading to burst or collapsed
is easy

Energy Global
Bringing you the power of information

Figure 3. Digital lift can be deployed in a wide variety of challenging
geologies.
Figure 4. A comparison of the optimum performance of the dial
solution compared to a side pocket mandrel system.
casing strings and, in the worst case scenario, oil or gas
migrating vertically towards the surface along the outside of the
casing. While these issues could be dealt with if the articial gas
lift process was closely monitored at the point of gas injection
onwards, the fact that the operator is ying blind increases the
risk.
Whereas in the past, incremental changes might have been
suggested to meet these limitations, it seems clear that there is
a genuine industry need for greater operator control over articial
gas lift operations. Operators need to have access to variable
operating valve combinations, where decisions and modications
can be made in real time without intervention and without threats
to well stability.
So if there are clear limitations here, why are companies not
surfacing with new technologies?
One slightly conspiratorial answer is that this is exactly how
the large integrated oil service companies like it reduced risks
and expenditure and a focus on developing their current business
lines rather than embracing innovation. The results are products
that simply squeeze better performance from an existing concept
for short term gain and increased market share without tackling
the fundamental long term challenges.
It is reasonable to conclude, however, that the opportunity
to use old technology solutions in different, new ways has now
been exhausted.
Digitising artificial gas lift
It is against this global context and against some of the industry
limitations already described, that Camcon Oil is in the process
OILFIELD TECHNOLOGY
48 April 2011
of developing a digital articial lift solution that addresses many of
the issues described above. Figure 1 provides an overview of the
system, while Figure 2 outlines the product.
The solution is based around binary actuation technology (BAT),
a technology that has been developed over the last few years and
which also has applications for the automotive, manufacturing and
life sciences industries. Central to the technology is a low energy
pulse control that signals to switch an actuator between two stable
positions to digitally operate a valve. Particular benets include high
switching speed and low power consumption.
This technology has now been customised for articial gas
lift and, as Figure 3 illustrates, can be deployed in a wide variety
of challenging geologies and a wide variety of completion string
geometries far more than for a conventional gas lift.
The actuator is coupled to a gas ow control valve to enable
that valve to be opened or closed remotely. This eliminates
the need for side mandrel units and wireline intervention and is
particularly important in bringing digital technology to articial gas
lift. Trials of the new solutions are currently taking place with a major
oil operator who is providing support and access to its rig and
multiphase test facilities.
The series of digitally operated valves enable the real time
setting of injection rates and the extremely low power consumption
ensures that all control signals are at low voltage. The technology
can also be tted straight into the tubing so it can be deployed far
more exibly in sh-hook wells or where there are highly deviated
sections. In this way, it can go where side mandrels cannot, as well
as being superior in operation.
What the solution therefore achieves is to allow operators
to vary injection rates in real time without wireline or slickline
intervention, meaning no lost uptime, continuous production and
reduced risk for operators. Figure 4 shows this comparison with the
traditional side pocket mandrel.
As opposed to conventional gas lift, where operators have no
knowledge of operating conditions at the point of injection, the
live information allows operators to optimise extraction conditions,
minimise gas usage across the reservoir, enhance oil recovery, and
protect the wells from instability.
Taking into account the reduced cost of well interventions, the
loss of production, wireline and slickline intervention incidents, and
optimal usage of gas and associated compressor equipment, it
should be possible to deliver an ROI of at least 20, and potentially
increase recovery from individual wells by up to 30%.
The ability to alter conditions remotely and without intervention
should have the capability to address the performance gap
between topside and subsea wells. A digital articial lift installation
in a subsea well can have the downhole conditions remotely
monitored, and injection conditions altered without the need to
touch the wellhead. The result is a huge increase in operating
exibility.
This article has described just one element of a sustainable
enhanced oil recovery strategy for the future. It is by embracing
these new technologies that information gaps can be closed and
recovery rates increased. Operators can also have more control of
their subsea wells, and elds can become more economically viable.
It is advances such as these that may lead to the future operators
focusing on the long term development of resources. O T
References
1. EOR Enhanced Oil Recovery Worldwide, SBI Reports, April 2010.
2. www.rigzone.com.
3. Inauguration of 2009 Middle East Artificial Lift Forum.
The case i
n question Scott Beattie,
Weatherford
the benefits o International
f a subsea dril Ltd, USA, loo
ling-with-casi ks at
ng system.

D
etermining operational
and economic success
in deepwater wells is
dependent upon shallow hazard
mitigation. The industrys rst
subsea drilling with casing
(DwC) system provides a
unique solution to shallow
hazards in deepwater drilling by
expanding an already proven
technology. Operators drilling in
subsea environments can now
effectively manage typical
top-hole issues such as caverns,
collapsed holes, uid losses,
Figure 2. The SeaLance
system extends the wellbore ledges and rubble zones.
construction advantages of the With testing complete and
DwC system to the physical subsea operations at hand,
and economic extremes of the commercial introduction of
subsea operations. Weatherfords SeaLance DwC
system is generating interest
across global deepwater basins.
The system enables a 20 in.
casing string and its high pressure
wellhead housing to be drilled to
depth, cemented and released in
a single run.
In doing so, the system
extends the wellbore construction
advantages of the DwC system
to the physical and economic
extremes of subsea operations.
Because the system has the
ability to drill through trouble
zones, it offers signicant value
in costly deepwater applications.

49
In this environment, where the SeaLance system is aimed at
mitigating multiple hazards in the upper portion of the well, the
rewards include signicantly reduced risk, improved efciency
and lowered costs.
Mitigating drilling hazards
As the industry takes on increasingly challenging reserves,
with most easy prospects having already been drilled, the
approach must be altered. At times, newer technologies must
be deployed to minimise non-productive time (NPT) and make
these reserves economically viable.
In areas where hole instability, loss zones or sloughing
shales are a concern, DwC technology has been implemented
to mitigate these problems that are expected with
conventional methods. Having the casing constantly on
bottom while drilling creates an environment where there is
a mechanical smearing of cuttings against the wellbore by
the large surface of the casing, thus reducing the previously
Figure 1. The worlds rst subsea DwC system mitigates shallow hazards in deepwater environments.
mentioned hazards.
An estimated 10 40% of expenditures are still spent
drilling trouble zones. It has been proven, however, that
trouble zones can be drilled, and sometimes avoided, if new
drilling practices are used. To be successful, drilling hazards
and associated potential risks must be understood.
Concept development
The company entered a technology agreement with ENI in
2007 to collaborate on the development of a new deepwater
technology with the unique capacity to mitigate shallow
hazards. Such a technology would mean major improvements
in the cost and capabilities for subsea drilling. It is a new
mindset, a new way of doing things.
The project began as an endeavor to explore the idea
of applying DwC in subsea application. Early development
prospects for the system were supported by more than
1000 jobs and 10 years of DwC deployments in land, platform
and other surface applications where performance has shown
a 20 50% reduction in drilling time. But subsea operations
offered signicantly different demands on the technology.
OILFIELD TECHNOLOGY
50 April 2011
The process began with internal brainstorm sessions
and consultations with ENI to pull the concept together.
Continued collaboration and a signicant investment in
research and development greatly matured the design
and brought it to the point of creating a prototype. The
subsequent subsea solution the company produced is
a promising multifaceted enabler for drilling deepwater
prospects.
System components
The systems design draws on a diverse scope of
resources. It combines proven DwC drill bit technology
with an innovative running tool that enables deployment
of the system below the rotary table for the rst time and
a retractable shoe joint (RSJ) adapted from the companys
cementing products.
The drillable casing bit is a proven technology frequently
applied in land and shelf-type wells where a surface blowout
preventer (BOP) is used. This bit enables cement operations
to begin almost immediately after bottomhole casing-setting
depth is reached. Building a drive mechanism for the subsea
system involved creation of a running tool.
This resulted in the rst DwC system that can be
deployed below the rotary table. Much like a liner hanger
system, the tool locks into a dedicated setting sleeve below
the wellhead, helps maintain casing tension and creates a
torque path from the drillpipe through the casing to the bit.
This process enables the entire string to be rotated to make
the hole.
The RSJ enables the wellhead housing to be soft landed
without rotation. This process is important because the hole
must be drilled before the wellhead housing can be set.
With surface DwC systems, the hole is drilled to total
depth (TD) with the casing and wellhead separate. Once on
bottom, the string is pulled back and a joint or two of pipe is
laid down. Then a joint with the wellhead is picked up, made
up to the string, run and cemented.
In subsea operations, the same process does not work.
The string would have to be pulled back to surface 1000 m
or more, and pulling casing out of the wellbore defeats a major
reason for drilling with casing in the rst place.
To gain room at the bottom of the hole for landing the high
pressure wellhead housing, the subsea DwC system required a
means of drilling to TD and then somehow collapsing the string
below the housing.
Applying the RSJ provided a starting point for approaching
this obstacle. If ll or some other restriction is encountered a few
feet from bottom, the RSJ can collapse a land without having to
ream or disturb the sediment.
The outcome of these combined components extends
beyond putting together a few widgets - it introduces a new
way of drilling subsea wells that reduces risk and improves
efciency. In deepwater drilling, the tendency is to apply the
same methodology used in a conventional well - a very limiting
approach.
Global deepwater solutions
In 2010, the systems trials were successfully completed in a test
well at the Weatherford Technology & Training Centre in Houston,
Texas, USA. Plans are now being made for trials in deep water.
Prospects range from the Gulf of Mexico to the
South China Sea, and offshore Africa, Brazil and Australia. The
scope is broad because every deepwater basin has potential
applications.
Subsea advantages
While changing the drilling methodology for subsea wells
presents challenges, the system is already attracting attention
with some unique incentives and opportunities in the form of
well integrity enhancements and cost savings.
While batch drilling may not be an instinctive technique
in deepwater development, the system provides some strong
new capabilities for achieving signicant savings. Combined
with the advantages of shallow hazard mitigation, this approach
is ideal for reducing the overall costs of subsea development
programmes.
Shallow hazard mitigation capabilities cover several
problems that have long vexed subsea drillers. These top-hole
issues include caverns, collapsed holes, uid losses, gas and
water ows, ledges and rubble zones. The system ensures the
ability to land a long 20 in. string and have a better cement job
as a result of being able to rotate it. By drilling, cementing and
landing the high pressure wellhead housing in a single trip, NPT
is reduced and the general integrity of the well is improved.
The system also promotes safer operations. By eliminating
dangerous operational steps such as tripping pipe, personnel
safety is enhanced. Since its design allows the surface casing
and high pressure wellhead housing to rotate during subsea
deployment, the system provides an inherently safer cement
barrier, enhancing the foundation of the well.
Moving the DwC system into the subsea environment
provides advantages in exploration and development
applications. The new SeaLance system is designed for
mitigation of shallow drilling hazards that signicantly reduce
the risk and NPT to help control costs and enhance well
integrity. The result is a new way of looking at deepwater
operations and economics. O T

Triple eccentric
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www. zwick-valves.com
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 Under the patronage of His Royal Highness Prince Khalifa bin Salman Al Khalifa
Prime Minister of the Kingdom of Bahrain

10th Middle East Geosciences Conference and Exhibition

Bahrain International Exhibition Centre

4 7 March 2012

The Middle East's Premier Geoscience Event

www.aeminfo.com.bh
 FIGHTING
Kenneth Bhalla, Stress Engineering Services, USA,
explains the importance of riser and subsea
fatigue damage monitoring.
A
s offshore drilling and production facilities are
pushed to operate in deeper waters, the equipment
used in these facilities is exposed to harsher
environments. Moreover, as reservoirs with high pressure
and temperatures are being developed, it is of the utmost
importance that the integrity of each system used to drill
and produce any eld be maintained.
Given these concerns, accurate assessment of the
present operating state and future life of equipment
in these environments is essential for site safety and
operation. Stress Engineering Services (SES) recently
developed a data acquisition instrument - the subsea
vibration data logger (SVDL), specically to monitor
dynamic structural response and fatigue in deepwater
applications.
Providing assurance
Vibration, and hence fatigue monitoring of drilling risers,
completion risers, production risers, owlines, jumpers,
manifolds and wellheads are critical and can provide
assurance that ongoing and future operations can be
performed safely.
Vibration can be in the form of wave-induced motions,
vessel induced motions, vortex induced vibration (VIV), or
ow induced vibration (FIV).
When performing drilling from mobile operating drilling
units, such as semi-submersibles and drill ships, a wave
fatigue assessment is performed by using requirements in
API RP 16Q,1 which limits the signicant dynamic stress
range. In this case, no actual wave fatigue analysis is
performed. VIV analysis or assessment may be performed
to determine the damage rates on the drilling riser system
from high currents; mitigation usually involves pulling more
tension on the drilling riser or even utilising fairings.
Fatigue design and assessment for production risers are
based on requirements in API RP 2RD,2 API RP 1111,3 and
API RP 2A.4 Similarly, other API codes are utilised for the
completion risers, wellhead, and subsea equipment.
53
 A fatigue assessment is based on metocean data (wind,
wave, current); statistical analysis is performed to determine
annual and extreme events. However, if a location experiences
an active storm, hurricane or loop current season; then it would
be prudent to reassess the metocean data. If the metocean data
is modied, then any previous fatigue assessment or design
must be re-evaluated.
Figure 1. Subsea jumper.
Figure 2. Subsea manifold.
Figure 3. Modal deection of a jumper system.
OILFIELD TECHNOLOGY
54 April 2011
Additionally, fatigue design includes conservatism. Excessive
conservatism can result in reduced operational windows and
shorter service life, leading to increased operational costs and
lost revenue.
Safe operation
Additional inspection costs can be mitigated by vibration
monitoring and fatigue damage estimation from vibration
measurements. Vibration measurement ensures safe operation
by allowing monitoring of fatigue critical components, especially
during inclement/extreme conditions, and allows rig crews
to make prudent decisions based on actual fatigue damage
estimates of a component. It is not sufcient just to take data
using instrumentation. In addition, it is prudent to perform
an analysis that predicts the expected mode shapes and
fundamental frequencies of the system prior to deployment of
the instrumentation. The instrumentation must be t for purpose
and packaged so that it will measure the expected/appropriate
response without excess noise or offsets.
After deployment, proper data interpretation is a key
component in understanding the quality of the collected data.
Thorough data processing techniques and data quality checks
have been developed by SES.
High quality data
SES has developed a number of accelerometer and strain gauge
based tools to measure and assess fatigue damage. The SVDL
is a new tool in the SES suites of solutions; it was developed
to service the emerging need to collect high quality vibration
data for extended periods under increasingly stringent subsea
environments.
Housed inside the unit is a high quality tri-axial
accelerometer. The accelerometer is constructed using a
state-of-the-art MEMS process to achieve unprecedented
sensitivity and resolution. Signals are passed through an
aggressive low-pass analogue lter prior to being digitised by a
high resolution analog-to-digital converter. In addition to signal
ltering, oversampling techniques are employed to maintain the
highest digitised signal quality. The long battery life, low power
consumption, and large memory storage are well matched to
maximise the deployed logging duration.
The data logger and clamping devices feature a low mass
and high mechanical impedance structure. This ensures that
the vibration signals collected by the logger are not distorted
Figure 4. Instrumented riser joint.

Figure 5. Subsea vibration data logger.
Figure 6. SVDL data logger clamp.
by the mechanical characteristics of
the logger system itself, even at high
measurement frequencies of 50 Hz or
greater.
Through a suitably designed
clamping device, the SVDL may be
mounted by an ROV to any structure
of interest. Figure 6 shows an example
of a low moment-of-inertia clamp
developed for jumper pipe monitoring
applications.
The data logger specications
include:
x Sensors and electronics fully
enclosed in a one-atmosphere
aluminium subsea housing with
redundant o-ring seals at each
closure.
x Depth rating: 10 000 ft seawater.
x Exterior dimensions: 3.1 in dia.
x 18.25 in. long (24 in. long
including ROV handle).
x Mass: less than 10 lbm.
x Weight in seawater: less than
6 lbf.
x All exposed aluminium surfaces
hard-anodised.
x Sensor is hard mounted to
housing end cap to maximise
coupling stiffness to measured
structure.
x Ported for nitrogen back-ll;
includes pressure relief valve.
SES is in the process of developing
a real-time fatigue monitoring system
that will provide immediate assurance
of operations; this system will be
operational in autumn this year. O T
References
1. API RP 16Q, Recommended Practice
for Design, Selection, Operation and
Maintenance of Marine Drilling Riser
Systems, 1st edition, November 1993.
2. API RP 2RD, Design of Risers for
Floating Production Systems (FPSs) and
Tension-Leg Platforms (TLP), 1st edition,
June 1998.
3. API RP 1111, Design, Construction,
Operation and maintenance of Offshore
Hydrocarbon Pipelines, 3rd edition, July
1999.
4. API RP 2A, Recommended Practice for
Planning, Designing and Constructing
Fixed Offshore Platforms Load and
Resistance Factor Design, 1st edition,
July 1993.
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Great integrations
Vincent Vieugue,
T
here is little doubt that operators have a great deal

Emerson Process Management, to think about it when it comes to subsea operations

today.
Norway, explains the growing There is the remoteness and challenging conditions of
need for greater integration and the elds themselves conditions that are often underlined

intelligence in subsea operations.

by highly complex subsea production systems. The growth
in popularity of smaller and older elds in the North Sea,
which are often tied into existing infrastructure with long
distance tiebacks, are one example of this increased
complexity.
Other examples of challenging conditions include the
deepwater elds of offshore Africa and Brazil with production
and geological challenges, such as high pressure, high
temperatures and sub-salt; the sour gas elds of the
Middle East; and the rise in increasingly complex ownership
structures with commingled streams and royalty allocations
that must be measured by subsea systems.
Finally, there are the age-old threats to production and
well control of water breakthrough, hydrates, sand erosion
and corrosion challenges that, if anything, are increasing.

Information and integration

The level of investment in subsea operations over the last
few years has been steadily increasing. Industry analysts
Douglas Westwood forecast back in 2007 that US$ 25 billion
will be spent annually in deepwater capital expenditure by
2012, with Africa accounting for 40%, North America 25%
and South America 20%.

57
 In terms of more specic subsea operations,
Douglas Westwood predicted that more than 1000 additional
multiphase meters many of them subsea will be deployed
by 2015 and, in another report, that annual expenditure on ROV
operations is likely to reach US$ 3.2 billion by 2014. According to
one of the authors of the report, this is mainly down to ROV being
a more mature and advanced technology.
While such levels of investment and recent technology
advances should be encouraged, the sheer amount of data derived
from subsea instrumentation has meant that some operators are
reeling from the amounts of reservoir data that are produced.
According to IBM Global Services, a single oil or gas eld can
generate up to one terabyte of data per day1 - data that must be
collated, interpreted and used as input into further decision making.
And yet, while some levels of the reservoir are producing
gigabytes of data, there are other important
areas of the reservoir where the operators are
quite literally ying without instrumentation.
For example, the detection of sand in the well
stream is often based on approximations and
guesswork around ow rates, pressure drops
and temperature distributions.
There are also other areas of the subsea
production system that are no go areas to
operators, once production is underway. One
such example is the B annulus within the
casing of an oil well, which is not accessible
following the sealing and cementing of the
casing.
Undetected high pressure behind the
casing can lead to poor or deteriorating
cement sealing and a loss of casing integrity
which, in a worst case scenario, can result
in oil or gas migrating vertically towards the
surface and increasing the risk of a shallow
blowout. To compensate for this, operators
have spent millions of dollars shutting down
wells, mainly due to their lack of information
on pressures and inability to verify the barrier
integrity.
Too often, the very technologies that Figure 1. Roxar subsea chemical
injection valve.
are supposed to bring control to subsea
production are viewed as commodities,
procured in an ad hoc manner, and with no strategy as to
where they t in with other activities. Whether it is the downhole
monitoring of wells, hydrate inhibition strategies, corrosion or sand
erosion, or ow measurement, there is often a lack of integration
across subsea production systems.
So how can we restore the balance and bring greater control
to subsea production? How can we better manage the information
that is created, yet ensure that there are no blind spots? And
how can we ensure a more intelligent and integrated approach to
subsea production?
While these may appear lofty ambitions, there is cause
for optimism in areas such as hydrate control and corrosion
monitoring, downhole monitoring, the management of information,
and intelligent metering.
Hydrate control and corrosion monitoring
Hydrates the crystals that are formed in high pressure and low
temperature gas ows where water and natural gas are present
OILFIELD TECHNOLOGY
58 April 2011
are a signicant obstacle to production control. They can cause
blockages in tubing, ow lines or pipelines.
The rise in deepwater wet gas elds, with high pressures and
temperatures and deposits, such as methane-based hydrate
deposits in the Gulf of Mexico, also means that hydrates are on the
rise.
The good news is that there are tools to combat hydrates,
principally thermodynamic inhibitors such as methanol and ethylene
glycol (MEG) and low dose hydrate inhibitors (LDHIs).
These inhibitors require a subsea system that tells the operator
when the field is vulnerable - when there is a water production
in the wet gas well, for example and also provides an effective
distribution system for their accurate injection. The latter is essential
LDHIs, for example, work at very low injection rates, whereas
thermodynamic inhibitors tend to require higher injection rates and
concentrations. Get the dosage wrong and there
is even a danger of increasing the likelihood of
hydrate formation.
To this end, Emerson is paving the way for
a greater integration between Roxar subsea
multiphase and wet gas meters, which can
detect the early onset of formation-water
production in the gas ow, and injection valves,
responsible for the ow and chemical dosage
rates of hydrate inhibitors. The result is an
integrated subsea production system and
greater subsea control. Figure 1 shows a photo
of the latest chemical injection valve.
There is also a need for greater integration
of corrosion monitoring. Corrosion can lead to
production losses, metal loss (which reduce the
life of production and storage equipment), or
safety and environmental setbacks, due to the
corrosion of key infrastructure.
Today, Emersons corrosion monitoring
activities, such as the companys intrusive
(probes and coupons installed with ow lines)
and non-intrusive solutions (which are directly
installed on the pipe walls) are also integrated
with sand monitoring, pig detection and other
downhole measurements instruments.
One example is Statoils Heidrun eld on the
Norwegian continental shelf, where, according
to the Norwegian Petroleum Directorate (NPD), continuous efforts
are being made to nd new methods to increase oil recovery.
The eld makes extensive use of both intrusive corrosion
probes and intrusive sand/erosion probes and also has a few
locations with combined corrosion and sand/erosion probes. With
a recent increase in sand production, Emerson has been working
with Statoil to increase the elds sand monitoring capabilities
through a new sand management module. The module will allow
Statoil to respond faster to changes in sand production conditions
and establish maximum sand free production rates for production
optimisation.
An intelligent downhole network
These hydrate and corrosion monitoring solutions are part of an
increase in predictive intelligence and integration across reservoir
production monitoring.
Emersons Roxar downhole monitoring systems are now
deployed in production, injection and observation wells, as well as

Figure 2. Roxar third generation multiphase meter, the MPFM 2600.
Figure 3. A real-time multiphase measurement and subsea sensor
system.
in conjunction with the instrumentation of highly complex
multi-zone intelligent wells.
Emersons intelligent downhole network, for example, allows
operators to install 32 instruments on a single cable, with the
network acting as a hub for downhole choke position indicators,
additional third party sensors, and for the transmission of power
and data. In this way, downhole reservoir monitoring can provide
crucial information not only on temperature, pressure and water
cut, but also gas fraction, sand rate, and ow velocity.
Multiphase meters are another example (Figure 2). Such meters
are not only an effective alternative to well testing, providing critical
real-time information on a wells capabilities during production, but
they can also have a signicant impact on reservoir management
across production operations. When integrated with gauges,
sensors and other intelligent devices, the multiphase meter has the
OILFIELD TECHNOLOGY
60 April 2011
potential to become a critical component in measuring ow and
production rates, and contributing to real-time decision making.
Decisions such as choke setting and articial lifts, for example,
can then be based on all the necessary information.
Emerson recently installed its Roxar subsea multiphase
meter on the Cascade and Chinook elds in the Gulf of Mexico.
These meters will work alongside combined sand erosion
and pressure and temperature sensor systems to provide
the operator, Petrobras, with accurate and continuous online
monitoring and valuable, real-time production information on the
reservoir. Figure 3 shows an example of a real-time multiphase
and subsea measurement system.
Improved information management
No matter how well an operator integrates their instrumentation,
they still need a system that not only brings all the information
together, but also provides the necessary analysis tools to
rigorously interpret that data.
With this goal in mind, Emerson has developed a
Windows-based eld monitoring system, which comes with a
series of modules that cover many facets of operators subsea
production systems, including ow assurance, sand and
erosion, corrosion, simulation, production control, and virtual
ow metering.
At the heart of the new system is a server that consists of
algorithms and models for data validation, data conditioning,
smart alarm handling and virtual instruments. Real-time sensor
data is then fed and converted into visualisation tools for viewing
and analysis.
The software provides an interface to all the instrumentation
and the scalable architecture also allows remote connectivity,
enabling multiple users to draw upon the same data and
instruments. In this way, the operator can gain access to
everything from individual data series from an instrument to
complex expert guidance for choke settings.
The eld monitoring system is also proving an important
means of bringing greater intelligence to instrumentation. For
example, through the self-diagnostics application within the
eld monitoring system, operators can congure ow meters,
monitor status and alerts, troubleshoot from the control room,
perform diagnostics, and manage calibration from a single
application.
Another recent solution that has reached the testing stage,
and which could be integrated into a eld monitoring system
in the future, is a wireless instrument that tracks pressure in
the B annulus inside the well casing in subsea production
wells. Through the eld monitoring system, operators can track
pressure, confront potential threats to well integrity, and ensure
that no area of a subsea production system is a no go area.
While this article has covered a number of different elements
of the reservoir management and production process, there is
one clear, overriding message that there is a growing need for
greater integration and intelligence in production operations.
It is encouraging that, while the subsea challenges continue
to remain challenging, progress is indeed being made towards
these goals, putting the operator where they should be in even
greater control of their production operations. O T
References
1. Meeting the Challenges of Todays Oil & Gas Exploration and Production
Industry, IBM Business Consulting Services.

U
nbonded exible pipes with steel pressure and
tensile reinforcement have been in operation for over
30 years but are facing serious challenges in deep
and ultra-deepwater as well as corrosive environments due
to top tension limitations and corrosion fatigue. DeepFlex
has developed a unique composite reinforced exible pipe
technology that overcomes these issues and supports
subsea developments as they move to more demanding
environments. Testing and qualication of an expanding
operating envelope, in addition to proven eld performance,
will address the future challenges of the industry. In offshore
project developments, Flexible Fiber Reinforced Pipe
(FFRP) is a lightweight, composite reinforced solution that
offers reduced risk, capital and operational costs.
A typical FFRP pipe structure includes the following pipe
layers:
x Liner: smooth bore conduit for conveying internal fluids.
HDPE, PA 11, PA 12 or PVDF thermoplastic materials are
employed for the liner, with the selection based on the
application and temperature.
x Anti-extrusion layer: prevents liner from deforming into
gaps in the overlying non-interlocked hoop strength layer.
x Hoop strength layer: provides internal pressure hoop
resistance, external hydrostatic collapse resistance and
resists radial compression installation loads. Either glass
or carbon bre composite reinforcements are used for
this layer, also selected based on the application and
temperature.
x Anti-wear layer: prevents wear of composite reinforcement
due to contact/relative movement between adjacent
layers. The innermost anti-wear layer may also provide a
conduit for the ow of permeated gases to a vent at the
end tting.
x Membrane (intermediate sheath): prevents seawater
intrusion into underlying layers, allowing the hoop strength
layer to bear the external hydrostatic pressure. HDPE,
PA 11 or PA 12 are employed for this layer, depending on
the application and temperature.
x Tensile reinforcement: provides tensile capacity; two
layers wound in opposite helical directions assure
torque balance. Either glass or carbon bre composite
reinforcements are used for this layer.
x Jacket (outer sheath): protects the FFRP structure
against abrasion and mechanical damage. HDPE for static
service and PA 11 or PA 12 for dynamic service.
Value proposition
The FFRP value proposition in the development of deep and
ultra-deepwater harsh environments includes:
An enabling technology allowing more cost-effective
development of deep and ultra-deep water oil and gas
reserves. The composite exible pipe products offer the
necessary resistance to both internal and external pressures,
as well as the structural capacity to resist tension and bending
in deep water. The pipes lightweight and high tensile strength
combine to allow installation in water depths up to and
beyond 3000 m. The reduced weight offers signicant project
61
savings for oating production systems including reduced cost
of new build FPSOs, relocating shallow water FPSOs to deep
water, disconnectable turret optimisation and low payload on
existing deep water hubs allowing for more production within
tension capacity limits.
Table 1. Planned test programme
Burst - straight
Burst - bent to minimum OBR
Axial tension with internal pressure
Collapse
Crush strength
Combined bending with tension
Bending stiffness
Torsional stiffness
Axial compression
Dynamic test - topside jumper loads
Dynamic test - FPSO catenary riser loads
Figure 1. The Afren Okoro Setu project.
Figure 2. The Urugua project.
OILFIELD TECHNOLOGY
62 April 2011
Lowers installation costs and reduced project schedule risk.
The FFRP provides a signicant weight advantage over steel
reinforced products. This weight advantage reduces the size and
capacity of the equipment on the deck of the installation vessel,
particularly the equipment known as top tensioners, which
supports the weight of the pipe and controls its movement as it
is lowered into the water. Larger top tension equipment requires
larger installation vessels, which are fewer in number and have
Quantity of tests substantially higher operating costs. The lighter weight solutions
1 allow for a greater number of potential installation vessels and
1 a wider range of opportunities to secure a more cost-effective
1 vessel at the required time. The greater number of vessels
5
allows project exibility and reduces schedule risk in the event of
project delays.
5
Resistance to corrosion fatigue that reduces full life-cycle
1
costs. Steel reinforced exible pipe is susceptible to corrosion
1
fatigue due to seawater ingress into the steel reinforcement
1 layers especially when combined with the presence of H2S and
2 CO2 that permeate through the inner thermoplastic layers. If the
1 outer sheath of a steel reinforced exible pipe is damaged in the
1 splash zone, where cathodic protection is ineffective, the tensile
armour reinforcement will corrode very rapidly, requiring rapid
replacement of the pipe. With proper material selection, veried
by comprehensive testing, the FFRP composite reinforcement is
resistant to seawater and the annulus environment resulting from
permeated gases condensing in the annulus, and can lower full
life-cycle costs relative to competing steel-based pipe.
Technology development
Technology development is focused on the following three key
areas to support the development and qualication of the FFRP
for deep and ultra-deepwater offshore production environments:
x Composite material development and testing.
x Pipe structure qualication testing.
x Model development and calibration.
x Technology development is reviewed by an independent
verication agency.
x Composite material development and testing.
FFRP has been successfully deployed in applications where
DeepFlexs berglass reinforcement is qualied including low/
moderate pressure and temperature applications. A comprehensive
material testing programme is being executed to expand the
operating envelope of materials for high pressure and high
temperature. Fiberglass and carbon bre composites are being
tested to verify the characteristic resistance values, verify the partial
safety factors used in the pipe design calculations, and address
the potential failure modes and mechanisms based on the loads
and environments that the material may be subject to over the
FFRP service life. In order to develop the test plan to qualify these
materials, DeepFlex used the following approach:
x For each FFRP composite layer, load cases are identified. For
each load case, the environment (fluid), temperature, loads,
operating condition and layer stresses are determined.
x Based on the previous point, and the guidelines in section 6
of DNV OS C501,1 and the layer geometry, construction and
materials employed, dene the potential failure modes and
mechanisms that might be experienced as a result of those
loads and environments.
x Based on the previous point, and the guidelines in section 4
of DNV OS C501,1 dene the tests needed to evaluate the
material performance against the failure mechanisms.
 Laboratory tests are performed Table 2. DeepFlex projects
on unidirectional composite strips Project name Customer Deployment Pipe size Design pressure Water depth Deployment
and laminates, and on anti-extrusion region (in.) (psi) (m) year
tapes. The general approach is to: Petronius Chevron Gulf of Mexico 4 5000 N/A 2006
x Perform a variety of tests on Bourbon Opale Maritima de Bay of 3 5000 N/A 2006
unexposed samples. Ecologia SA Campeche
x Expose to uids that are Genesis Chevron Gulf of Mexico 2 5000 N/A 2007
representative of uids for Mardi Gras BP Gulf of Mexico 2 5000 800 2007
offshore production for durations Okoro Afren Nigeria 4 5000 14 2008
at design temperatures.
Okoro Afren Nigeria 6 5000 14 2008
x Test the exposed samples and
Okoro Afren Nigeria 8 5000 14 2008
analyse the results.
Arthit EMAS Thailand 8 2500 80 2008
The analysis results are used to
verify resistance of the composite Lyell CNR North Sea 4 5000 146 2008

reinforcement to potential failure Aries Swan Crossmar Mexico 4 5000 150 2008
Workover Vessel
modes, and update and validate the
characteristic resistance and partial J Ray McDermott Petro SA South Africa 4 1250 120 2008

safety factors used in the design Urugua Saipem
methodology, and fatigue data to Genesis Chevron
be used in the service life analysis
methodology.
Pipe structure qualification testing
The FFRP has been successfully deployed in shallow water
operating environments and deepwater temporary applications.
Qualication testing for these applications includes burst, collapse,
tensile and bend tests. In addition, small-scale tests and
mid-scale tests, which simulate the combined loading experienced
in the critical anti-extrusion layer and hoop strength layer, are being
conducted.
To expand DeepFlexs operating envelope, a detailed
qualication programme to API RP 17B2 is being executed to
qualify deep and ultra-deepwater owlines and risers for high
temperature and high pressure applications. The programme will
qualify the FFRP for 7 in. 5000 psi owlines and riser in water
depths of 2000 m and temperatures up to 90 C. The testing
programme is highlighted in Table 1.
Model development and calibration
Part of the overall qualication process for exible pipes is the
ability to accurately predict the mechanical and physical properties
of the structure. These models are developed in-house and are
calibrated by small scale, mid scale and full scale testing. Design
methodology verication goals include:
x The pipe performance and associated failure mode are
predicted by the design methodology.
x Potential failure modes based on expected in-service loads
and environments are addressed in the design methodology.
Field deployments
The FFRP has been successfully deployed in all major offshore
operating basins around the world. Some of the key applications
are summarised in Table 2.
Two of the most demanding project deployments are the
Afren Okoro Setu and Saipem Urugua projects. Some key elements
of the projects follow:
Afren Okoro Setu
FFRP risers have been successfully operating for over two and
a half years in extreme dynamic service on the Afren Okoro Setu
project offshore Nigeria. The eld architecture for Okoro Setu
Brazil 3 2900 1500 2009
Gulf of Mexico 2 4000 N/A 2010
includes a well head platform connected to an FPSO with DeepFlex
product.
The 4, 6 and 8 in. internal diameter dynamic risers connected
to the FPSO are operating in a double wave riser conguration in
a water depth of 19 m. Production at Okoro Setu has averaged
17 841 bpd and total gross cumulative production from the
eld (since start-up) at 30 June 2010 is 11.4 million bbls. During
this period, a process uptime of 99.6% has been maintained,
reecting the excellent operational efciency of the owlines and
risers.
Saipem, Urugua
The Urugua project included the successful deployment by Saipem
of a downline solution for the commissioning of an export pipeline
offshore Brazil. The FFRP delivered to Saipem was used in the
commissioning of the 174 km, 18 in. Urugua export pipeline 160 km
off Brazil in the Santos basin.
The FFRP downline offered a unique lightweight solution for
this challenging deepwater commissioning project by lowering
deployment costs and reducing operational risk. The 3 in. internal
diameter downline was deployed in 1500 m of water by one of
Saipems installation vessels, the Norman Cutter. The downline was
connected to a subsea commissioning structure for over 40 days
and operated successfully in very challenging weather conditions
including seas of 5 7 m.
Conclusion
The FFRP solution offers substantial value for deep and
ultra-deepwater environments. The light weight and corrosion
resistance of DeepFlex pipe offers project and operational
cost savings. The product has been proven in demanding eld
conditions and a comprehensive material and full scale test
programme is ongoing to expand the operating envelope. The
product offers a new tool to the design kit of subsea engineers to
meet the challenges of deep and ultra-deep water offshore eld
development. O T
References
1. DNV OS C501, Composite Components.
2. API RP 17B, Recommended Practice for Flexible Pipe.

OILFIELD TECHNOLOGY
April 2011
63
 CHECKLIST FOR
PRECOMMISSIONING

Figure 2. The precommissioning team is

vital to maintaining project schedule.

64
 Richard Shirley and Dan Vela, Mustang Engineering, USA, run
through the process of precommissioning offshore facilities.
E
ffective precommissioning (PC) planning
and initiation of PC activities provide a
necessary bridge between earlier project
execution phases, including mechanical
completion, and the nal commissioning and
startup of the facility. PC can be an essential
mark between the transition from a
discipline-based approach, to one that veries
the functionality of systems, regardless of
their location on the facility. The planning
required for an efcient PC of an offshore
facility is typically started during the early
stages of detail design and commences
immediately after mechanical completion (MC)
has been achieved, which itself follows the
engineering design and construction phases.
Prior to initiating the PC actual work stage, the
supervisor of the MC phase creates a formal
document transferring the complete dossier
of all activity of the system for handover to
the PC team, along with a register or punchlist
that indicates any remaining MC work that still
needs to be completed or closed out.
Systems driven
Whereas mechanical completion includes the
non-functional testing of equipment to conrm
the integrity of its fabrication and installation to
the intended design, PC veries the mechanical
completion, the functionality of the system
as well as calibration of the instrumentation
to the facilities controls and control systems.
65

Figure 1. Precommissioning addresses readiness by system rather
than by individual pieces of equipment.
Figure 3. Deck space and personnel management are critical parts
of offshore PC activities.
While MC is completed by area or discipline, the PC phase will
be turned over to specialists who can address conrmation
by system, ensuring that it is complete and ready for nal
commissioning and startup. This phase can best commence
efciently after all of the components are in place so that
systems, rather than individual pieces, can be veried. The PC
contractor also engages the design engineering rm, vendors,
manufacturers and operating personnel for support and their
expertise. During the PC effort, there can be many activities
completed during the onshore phase and then moved offshore
for completion of the system checkout. Where practical, piping
should be power ushed and dried; communication systems
tested to the fullest extent possible; instrument and electrical
loops will be veried; instruments will undergo initial and nal
calibration; pumps can be operated where possible; motors
veried for proper rotation and can be run and tested (burned
in); and rotating equipment can receive initial (cold) alignments.
The PC phase is vital to schedule adherence of the project
and a necessity in helping to minimise cost overruns. Ideally,
PC activities should be planned as part of the construction and
earlier project execution strategy so there can be a smooth
transition from structural, mechanical, electrical, instrumentation
and controls fabrication to systems checks where scheduled
work is maximised. This point in the project is when potential
aws of construction, uncompleted tasks and system
inadequacies can come to light and be addressed early enough
to minimise schedule delays. Without a thorough PC effort,
OILFIELD TECHNOLOGY
66 April 2011
potentially time-consuming and expensive modications can go
undone onshore, only to be addressed in a much more difcult
offshore environment.
Organisation and planning are key
The selection of a PC team is one of the most important
milestones that will need to be addressed. The team will be
responsible for planning and supplying the critical support and
leadership during this project phase. The leadership, as well
as team members, should, therefore, be experienced with the
planning, tasks, schedule and project drivers regarding startup,
as well as its complexities.
After the project has determined the scope of work, the
overall project schedule and startup drivers, an organisation
chart needs to be established, dening the overall hierarchy of
how the PC team ts within the overall project management
team. Additionally, a roles and responsibilities matrix required
for the upcoming activities should be established. There will
need to be separate designators in organisational charts created
indicating location for the onshore and offshore PC work due to
potential differences in contractual arrangements, transportation,
personnel housing, parts availability and numerous other issues.
Only after the scope of work and organisational plan is in place
can the initial schedule be prepared, establishing the critical
milestones for handing off systems to the commissioning and
operations teams. These milestones are often how the PC team
and their progress will be measured.
The responsibility matrix is important to complement the
organisation denitions. The level of the matrices vary from
broad to detailed, but its main use is to identify not only the
scope of work and supply, but also the responsibility and
simultaneous operations (SIMOPs) that may occur. For the
purpose of this discussion, getting to the matrix level of PC
and MC interface, along with the other SIMOPs is wise early
enough to best identify any potential holes during the different
phases of work. As discussed previously, identifying the location
of the PC work plays an important role in the responsibility of
certain activities and interfaces. For example, due to contractual
limitations as well as schedule drivers, the onshore MC work will
take priority and the facility where the work is being performed
would be the driver. Whereas offshore the MC work may still
be the priority, the driver would be the operator. The matrix,
therefore, can identify not only the task, but the responsibility of
the work, whereas the details of the work are identied within
the PC procedures and tracking database.
In the initial planning of the PC stage, a critical path should
be evaluated to establish the procedures that will be optimal
to success. Although the best laid plans always have their
obstacles, a plan must be established as a starting point.
A detailed list of required activities would be created by the
PC team and coupled with the data developed earlier in the
project by engineering and managed through an electronic
project information management system. The PC contractor
is responsible for maintaining the database, tracking progress
critical for adhering to schedule and determining the status of
the various activities.
Reference data provided by engineering and the other
delivery teams will need to be organised by the PC contractor
according to the identied systems and should reside in a
location accessible to all who will be utilising it. Data includes,
but is not limited to, PFDs, P&IDs, mechanical, electrical motor

Figure 4. Successful PC work relies on detailed planning and dened responsibilities.
and ISA data sheets, instrument and electrical loop drawings,
wiring plans and elevations for skids and modules, as well as
the manufacturers nal data manuals for purchased equipment.
A potential shortcoming is in not obtaining the interface data
from outside of the topsides delivery team, e.g. subsea, export
pipeline, communications, hull fabricators equipment. The key
will be to provide a conscious effort to close these gaps early
within the project so as not to impact the planned startup date.
The PC work normally is broken down into discreet,
manageable systems. The systems are separated according to
the logical process ow, rather than by a package vendor. For
example, a heat media system might include a red unit, heat
recovery unit, storage unit and pumps, along with interconnect
piping, instrumentation, controls and electrical, all of which have
likely been supplied by different vendors and reside on separate
skids. This systems breakdown is the logical process to verify
construction, conrm the integrity of the design, and prepare the
system for handover to operations as the phase goes forward.
The organisation also allows for the commissioning of
sub-systems within a system, without having to initiate work on
the entire system. This avoids having to work around a nish
to start on a system scenario, thus pushing the overall startup
schedule past the desired outcome. The PC of utility systems is
typically the rst to be addressed and completed. This allows life
support for the offshore personnel in addition to minimising the
need for additional components to PC the process systems later.
It is essential that good record keeping and a detailed
preventative maintenance plan be initiated and carried out
through handover to operations during the PC phase. A job
or activity card system is an output of the existing database
system, resulting as an archive to the work performed as an
as-built record. Task sheets record the subsystems and systems,
which have been completely precommissioned and ready for
handover to be integrated into the facilities operating systems.
In the overall PC work plan and prior to initiating the PC
work, a meeting schedule should be established so that
overall planning and progress can be regularly discussed and
understood by all parties. Each of the participants should have
a schedule that can be owned by them, reviewed intermittently
OILFIELD TECHNOLOGY
68 April 2011
by the team and adjusted accordingly, so that
progress coincides among all team members.
The critical path should be reviewed at least
weekly and recovery plans generated or
updated as necessary.
POB management
An important consideration in
precommissioning is planning for the required
number of personnel needed to undertake
the offshore PC activities, the transportation
requirements for the crews and their supplies,
and the allocated personnel onboard (POB)
space to accommodate them. While working
during the onshore phase space is somewhat
unlimited with the exception of interfaces
with construction, offshore work presents a
whole different set of challenges. Offshore,
the PC team will have to work closely with
all of the different work scopes onboard
to understand each others schedules and
manpower requirements. These would
include topsides hookup and commissioning
(HUC), subsea owline installation and testing contractors,
and the export pipeline installation and testing contractors, as
well as third party vendors, communications personnel and
operations. During the offshore phase, depending upon timing
and the hull type, a habitability inspection will be conducted by
the US Coast Guard or similar regulatory body. The work plan
will include in the overall schedule identifying work onshore,
work offshore, work to achieve quarters habitation, Temporary
Certicate of Inspection (TCOI), Final Certicate of Inspection
(COI), and Handover to Operations. A variety of systems must
be carefully planned for and put in place in order for approval
of these various milestones. For TCOI these may include
sufcient living quarters; temporary power generation; re
ghting, re detection and suppression equipment; emergency
evacuation equipment; potable water and sewage treatment
provisions; and communications equipment. Planning for and
precisely scheduling manpower is critical. If sufcient facilities
are not available on the platform, oatels or other means
for housing personnel might be required at a signicant extra
cost. The critical nature of the work being performed offshore
compared with the other activities along with the schedule must
be evaluated in depth to determine the cost/schedule benet
and work plan for utilising a oatel. This also means weather
limitations and transfer of personnel risks must be evaluated.
Similarly, working space and delivery areas must be closely
planned to accommodate the simultaneous operations (SIMOPS)
being conducted during the precommissioning and subsequent
commissioning operations.
Conclusion
In order for the PC segment to be successful, a good and
detailed precommissioning/commissioning plan should be
developed as early in the project as possible and good interface
between all groups must be established. An experienced team,
equipped with the necessary tools, database, organisational
structure, dened responsibilities and procedures, can assure
that the precommissioning segment is efcient and can keep
costs and schedule in-line with expectations. O T
 Switching to electric
Jon Robertson, Saab Seaeye, UK, looks at the benefits
of electric ROVs in comparison with hydraulic vehicles.

S
marter and more powerful electric ROVs are increasingly
taking on the work of hydraulic vehicles. They bring signicant
savings to the oil and gas industry because they cost less,
require less deck space, fewer crew, are easier to use, and quicker
to deploy. Driving this development are signicant breakthroughs in
electric ROV technology - power has been boosted, and control and
redundancy have been enhanced. This means more power intensive
tasks can be tackled because power is cleverly divided between
thrusters and tooling, without loss of power to either. This is an
advantage over hydraulic vehicles that can typically only use one or
other at full power, but not both.
More power means that a new generation of electric ROVs has,
for instance, enough tooling power to run a Merlin excavator on
maximum load, while still operating its thrusters at full force, keeping
the vehicle steady while driving it along.
For such a cable-laying dredging task,
an operator would typically need a 150 HP
hydraulic ROV that would take up twice
the deck space.
A doubling of thruster power on top of
the range electric vehicles means that the
newest generation of vehicles are serious
competitors to the hydraulic ROV systems
and they can also operate to depths
greater than 6000 m.
through a three phase electric motor to hydraulic power, then back
to rotary power before turning the propellers a process that loses
over 30% of shaft power. Power in electric ROVs is not shared and is
therefore available in full to thrusters and tooling at all times. The use
of high efciency brushless DC motor technology also means there is
no signicant loss in the transfer of electrical power to thrust.
The hydraulic vehicle also needs more power to counteract its
high mass, and the higher drag on its meatier tether.
Performance
With a lift capacity of 240 kg, an electric work ROV can do all the
tasks of 100 or 125 HP hydraulic, except heavy construction,
although it can still play a valuable support role during such work.
Routinely, tasks carried out by electric work ROVs may include:
hot stab connection and disconnection, dual point docking and
free ying stab-plate connection, pre and post drilling site survey,
guidance and orientation for BOP and riser connection, depth and
orientation of wellhead and BOP stack, cleaning wellhead and bulls
eyes, and changing out AX wellhead gaskets. It is ideal for IRM as
access is easier; and for survey work, results can be more accurate
when compared to using an acoustically noisy hydraulic work
vehicle.

Power myth
All this contests the myth that only 100 HP
and above hydraulic vehicles have the
power for work class operations, whereas
the truth is that the power rating relates only
to the shaft power of the prime mover, not
the power available to both thrusters and
tooling, and so useful
power is overstated
on a hydraulic vehicle
when compared with an
electric vehicle.
Hydraulic propulsion
is also very inefcient
as the electrical power
delivered to the hydraulic
ROV needs converting

69
 Resident power and intelligent control means that the electric
ROV can be tted out with a host of tools and systems. These include
a seven function position feedback manipulator and heavy duty
ve function grabber, a uid injection skid, hydraulic hot stab, linear
actuator override tool, quad actuator tool, torque tool, ying lead
orientation tool, AX/VX ring change out tool, single or dual point TDU,
Figure 1. Smart and powerful electric work ROVs like the
SaabSeaeyeJaguar are taking on the work of hydraulic vehicles.
Figure 2. Thruster touchscreen page. An interface for control,
conguration, statistics and diagnostics of a thruster. Statistical and
diagnostic information is accessible remotely.
Figure 3. Primary ight screen. Gives the pilot feedback on
navigation, auto-pilots, primary sub-systems and any critical errors or
faults.
OILFIELD TECHNOLOGY
70 April 2011
6 in. rotary or 4 in. anvil cutter, HP water jet or cleaning brush tools, zip jet
suction tool, along with custom tooling as required.
Reliability
When comparing electric and hydraulic ROVs, reliability is a key issue:
there is less to go wrong with electric. Typically, the top end electric ROVs
also have dual redundancy systems. This means the whole system is
duplicated and should one complete system fail, it is backed up by a
second complete system, meaning the ROV can be kept working, and
recovered safely afterwards. Self-diagnostics clearly display to the pilot
any fault and the necessary remedial action to be taken.
Thinking for itself
It is possible to congure intelligent electronic devices such that they can
be interrogated remotely over the internet. This concept has been added
to the latest fully distributed control system for electric vehicles, branded
Intelligent Control of Nodes (ICON) by engineers at Saab Seaeye.
ICON allows each device within an ROV to think for itself and talk
remotely to operators and engineers through a gateway into the heart
of the vehicle. It means that through an enabled remote web interface,
operators across the world can manage diagnostics, software upgrades
and system inventory directly onboard the ROV wherever it is located.
Engineers can also remotely interrogate devices onboard, and help the
ROV operator resolve conguration issues in live time.
Buddying
Electric and hydraulic ROVs are not mutually exclusive. Each has a role
to play and they often work together. In particular, a growing trend is to
buddy a smaller electric ROV with a heavyweight work ROV. An operator
can use the nippier electric ROV to swim about to give a clear view of
the back and sides of the working area, adding to the safe and efcient
completion of the task in hand. Additionally, it can act as a standby,
low-cost resource, ready to help recover the work ROV should it get into
trouble. It can guide a recovery strop, or untangle a snagged umbilical,
and possibly complete or contain an interrupted task while the stricken
ROV is repaired. This could bring considerable savings in time and cost
by avoiding the need to outsource an expensive ROV/vessel for recovery
of the hydraulic vehicle or completion of the task.
As a bonus, the operator gets a small yet powerful and intelligent
resource that can also be used for a variety of other tasks including
observation, manipulation, cleaning, inspection, mapping, proling and
monitoring.
Launch and recovery
Safe launch and recovery of the ROV in various sea-states is vital during
operations. Also, it is essential that under the waves, equipment does not
get tangled up. This is especially true when the ROV is operating from a
tether management system (TMS) and other ROVs are sharing the same
patch of seawater. The current can cause problems: it can drift the TMS
about until, when the ROV is due to return to the TMS, everything is the
wrong way round. This problem has been solved by tting the TMS with
its own thrusters, along with a management system that controls the
position of the TMS and also ensures it remains orientated to the ROV as
it ies about its task.
A signicant benet is that multiple ROV systems can be launched
from a single vessel without the fear of entanglement.
Vital role
The vital role that electric ROVs now play in the industry means that
growing operational demands will continue to extend their capability
through innovation and increasingly intelligent power resources. O T
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ELIMINATING THE GAPS IN
US OFFSHORE REGULATIONS
H
igh levels of uncertainty require larger margins
of safety. The potential combinations of fuel-
hydrocarbons, oxygen-air, and energy-ignition are
highly complex, making exact predictions of what is safe and
unsafe, difcult and often impractical. The science needed to
prove conclusively if combinations near explosive limits will be
safe is not yet available.
The elimination of ignition sources is a well-known
strategy to protect people, investments and the environment
from re and explosions because without the energy to ignite
ammable gases, a hydrocarbon release (HCR) incident is far
less likely to develop into a catastrophic failure situation.
This is not to say that ignition source elimination strategies
should act alone. Indeed, elimination of ignition sources must
form part of an overall safety strategy, which would also
include gas detection, emergency shutdown protocols and
evacuation strategies.
The objective of this article is to highlight the importance
of ignition source elimination and the differences in approach
mandated by law in different jurisdictions around the world.
Jogen Bhalla (USA) and
Stephen Gale (UK), AMOT,
and Ian Harrison, Pyroban, UK,
highlight the importance of
ignition source elimination
and the differences in approach
across the world.
The physics of how an explosion or re is initiated cannot be
disputed: simply put, fuel + oxygen + sufcient energy will
lead to a re. The elimination of the energy (ignition source)
can avoid a serious hydrocarbon release becoming a re and
explosion. Current proven technologies can greatly reduce
this risk. These technologies have been employed by leading
oil and major companies outside the US both onshore and
offshore for decades, but no effort has been initiated within
the US.
Every organisation involved in the upstream oil and gas
industry is responsible for ensuring its knowledge of and
adherence to the most current applicable regulations and
standards, wherever it conducts operations. Regulatory
compliance, however, only represents a starting point for
improved safety regarding res and explosions. The real
requirement is for a constructive means of ensuring that
practical improvements and preventative measures are
adopted.
Following the events of the Deepwater Horizon
catastrophe, the oil and gas industry, particularly within the
73
US, must evaluate its current principles, processes, policies and where the approach should be applied on an oil platform and
practices and determine how they can be improved. what type of equipment requires protection varies signicantly
Deepwater Horizon accident investigation hearings clearly dependent on geographical location, country, the oil company or
indicated that a catastrophic loss of containment leading to a even the oil platform.
large hydrocarbon release was likely to have been ignited by the
primary diesel generators located on the platform. Current practices for the determination of
The elimination of ignition sources is a well known approach hazardous areas offshore
used in an overall safety strategy to protect people, investments Strategies to reduce hydrocarbon releases have been applied
and the environment from re and explosions offshore. However, admirably throughout the world for the last 15 - 20 years with
some effective results; however, the reality within the oil and gas
Table 1. Area classification
industry is that signicant releases still occur.
Area classication is applied to offshore platforms to
US IEC/EN
determine the probability of an explosive atmosphere developing
Division 1 Zone 0 high probability of an explosive atmosphere
from hydrocarbon releases (i.e. determining hazardous area
Zone 1
zones (IEC) and divisions (US)) and consequently where explosion
Division 2 Zone 2 lower probability of an explosive atmosphere proof equipment requires installing. Areas outside of these zones
are dened as non-hazardous, while classications in the US
Table 2. Ignition hazard protected diesel engine requirements and rest of the world differ in terminology (Table 1), as does the
Typical Typical
denition of what equipment is deemed necessary to provide
US European protection, the fundamental principles of classication remain very
(EN 1834-1) similar.
X Exhaust flame traps 9 Exhaust flame traps The main limitation of area classication is the general
X Exhaust spark arrester 9 Exhaust spark arrester exclusion of the type of event that occurred on the
X Exhaust temperature 9 Exhaust temperature
Deepwater Horizon, as it is considered a catastrophic,
monitoring monitoring unforeseeable or unpredictable release.
X Exhaust gas cooler 9 Exhaust gas cooler These kind of low probabilities and high consequence events
in many cases have the potential to propagate the migration of
X Water-cooled turbo 9 Water-cooled turbo
charger charger ammable gases and vapours beyond classied areas where
ignition sources are not controlled, hence the potential for
X Coolant temperature 9 Coolant temperature
monitoring monitoring
ignition is high; a particular concern in these circumstances
is the continued operation of internal combustion engines. In
X Water-cooled exhaust 9 Water-cooled exhaust
manifold manifold
these circumstances, many jurisdictions, particularly Europe,
employ legislation to implement platform re and explosion risk
X Explosion protected 9 Explosion protected
electrical components electrical components management strategy. This determines the required level of
active and/or passive protection to ensure equipment does not
9 Engine overspeed 9 Engine overspeed
monitoring and shutdown monitoring and auto- present an ignition hazard. However, the US federal regulations
shutdown and associated enforcement agencies have not demonstrated
X Anti-static fans, blades 9 Anti-static fans blades the commitment to cover offshore platform safety in these
and belts and belts situations.
X Explosion proof inlet 9 Explosion proof inlet
manifold manifold Differences in standards of equipment
X Inlet flame arrester 9 Inlet flame arrester Throughout the world, the types of equipment requiring ignition
9 Inlet shutdown valve 9 Inlet shutdown valve protection within hazardous areas can vary from country to
country. Explosion protection regulations and standards in the US
are very similar to European equivalents for electrical installations
but largely ignore risks associated with non-electrical ignition
sources. Thus, in Europe and other parts of the world:
x Both electrical and non-electrical equipment must be
considered.
x The principle of ignition risk assessment of equipment within
a legislative framework rather than compliance with standards
allows best available technology and processes to be applied
to equipment, providing safer solutions for industry.
x Differences in the standards can be further claried by
focusing on the standard of ignition hazard protected diesel
engines in the US, compared to the standard provided in
many other locations throughout the world.

Typical European installation

Figure 1. Reduced ignition sources on a typical European installation. Currently within the US Federal Regulations, explosion protected
equipment standards and particularly major incident re and

OILFIELD TECHNOLOGY
74 April 2011
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Figure 2. Engine with manual plastic slide valve (push to close)
currently permitted in the US.
Figure 3. US-made spark arrestor test.
explosion risk management strategy falls considerably behind
Europe and many other oil producing countries around the world.
Diesel engines located in a non-hazardous area are thought
to be the likely ignition source for the explosion(s) onboard the
Deepwater Horizon platform. An uncontrolled engine overspeed
was reported just before the explosion in the generator room.
Internal combustion engine protection for hazardous area
applications in the US does not afford the same level of protection
as other best available technology standards applied throughout
Europe, and many other locations throughout the world. Current
EU regulations (EN 1834-1) require automatic engine overspeed
shutdown protection for maximum safety in all offshore areas and
other dened hazardous zones.
For the US offshore regulations, several standards were
written around 1988 and are still in current use, to cover
modication of diesel engine air intakes under the following MMS
(now BOEMRE) sections of 30 CFR Ch II;
x 250.405: for engines on drilling rigs (2/20/03).
x 250.510: for engines on well completion platforms (9/14/09).
x 250.610: for engines on well-work over structures (5/29/98).
A study of current US offshore regulations
250.405 regulation states that: you must equip each diesel
engine with an air intake device to shut down the diesel
OILFIELD TECHNOLOGY
76 April 2011
engine in the event of runaway; (a) for a diesel engine that is
not continuously manned, you must equip the engine with an
automatic shutdown device.
However, some gaps exist in this regulation: almost all
engines on a platform or rig are not continuously manned, so for
improved safety, all engines on an offshore platform should be
classied this way.
Paragraph (b) states: for a diesel engine that is continuously
manned, you may equip the engine with either an automatic or
remote manual air intake shutdown device.
The limitations of this part of the regulation include:
x The decision as to what equipment is continuously manned
is open to various interpretations, resulting in machines such
as diesel welders being fitted with manual valves, where the
welder operator could be working on a different deck or at
considerable distance from the stop control.
x Any manual method of stopping an engine that is accelerating
towards destruction is inherently unreliable, as it completely
relies on a nearby operator to decide that when they hear the
racing of the engine, they should approach it and push or
pull a control. Esso Research rejected that option in 1970 due
to the unpredictable result.
x US Federal offshore regulators fail to recognise that a
runaway diesel engine, depending on the richness of the
environment, can explode within 30 seconds and so manual
shutdown is not a safe solution.
x Human nature for machinery operators would be to run away
from the runaway engine to reduce their risk of death or
personal injury due to imminent engine explosion.
x Unlike ATEX, the US does not have an agency to test
and approve products for the offshore industry. As such,
contractors and rental companies usually select the least
expensive solution for the diesel engine overspeed shutdown
system and spark arrestors, and this further compromises
safety. It is disturbing to see plastic slide type valves (as
used for sh tanks or RV toilet pipes) have been installed
and apparently, up until now, accepted by the US offshore
inspectors (Figure 2).
Recommendation
All of these high risk situations that come from permitting manual
devices would be quickly eliminated if the existing US offshore
regulations were amended to require the benet of automatic
shutdown.
The US offshore regulators should immediately issue a safety
alert that states:
x All diesel engines operating on the offshore platforms must
have an approved air intake device to automatically shut
down the diesel engine in the event of runaway. Manual
devices are no longer permitted and must be removed and
replaced with automatic shutdown system.
x A remote control must be tted to allow demonstration of
the device in a running condition without over-speeding the
engine. Operators are required to check the safe function of
the shutdown system once a month.
The lessons of the Deepwater Horizon accident investigation
show that a runaway diesel engine is not only an ignition
source, but a potential detonation source and can occur at low
concentrations of gas. Existing US offshore standards for diesel
engines are now outdated and are subject to misinterpretation. It
would be a relatively simple and low cost process for companies
supplying equipment to the US offshore oil and gas industry to
upgrade their equipment to meet the International variations
proposed revisions. Classied areas determine what level
The resultant step change in engine of ignition-protected equipment is
safety would be seen as the rst required within these areas. Throughout
step towards effectively eliminating the world, the types of equipment
the potential source of ignition that requiring protection can vary from
currently exists. country to country. Historically within
the US, only electrical equipment
Diesel engine exhaust and some specic products currently
spark arrestors require protection under existing
All diesel engines emit dangerous standards.
sparks produced by the combustion This approach within the US
process or the ignition of carbon promotes misunderstanding and
buildup within the exhaust system. confusion with respect to what type
The technology of spark and standard of equipment requires
arrestors was originally developed for protection, or even whether equipment
agriculture and forestry, adopted by requires protection at all. Diesel
the military and more recently by the engines offshore fall into this category
petrochemical sectors, with various and protection requirements are further
different designs such as screens, confused due to the requirement being
collection traps and cyclones available. dened by location on the platform
However, the requirements and test not by the probability of the engine
procedures for the different products coming into contact with an explosive
and the different requirements of atmosphere.
different industries mean that not all By contrast, within Europe and
products are suitable for the more Figure 4. Cyclone spark arrestor with certications. many other parts of world, particular
severe applications. For example, emphasis is placed on the ignition risk
the oil and gas industry recognised assessment of the equipment covering
that when there was a gas concentration exceeding the lower both electrical and non-electrical ignition sources. This approach
explosive limit (LEL) a single low energy spark could detonate a is supported by product specic standards for high ignition hazard
gas cloud, whereas the forestry industry is concerned with larger equipment. Diesel engines are covered by EN 1834-1, which is
higher energy sparks. applied offshore throughout Europe and many locations throughout
Over time, various organisations such as the the world. No such approach or standard is applied to diesel
US Forestry Service, OCMA, British Standards and later the engines offshore in the US.
European ATEX Directives, were developed with test procedures Major hazard events, such as the hydrocarbon releases that
to determine the acceptable methods that would quench all occurred on the Deepwater Horizon, are considered throughout
sparks and cool them to be ejected at a safe size and energy Europe by integrated re and explosion risk management
state. strategies. This may determine equipment such as diesel engines
While some equipment currently working in US offshore located outside of a classied area requiring ignition hazard
waters has been tted with spark arresters, these have usually protection to reduce the risk of a major release being ignited,
been of the agricultural variety. Recent tests of one of the most therefore reducing the potential consequences of an incident.
popular types currently used (Figure 3) have revealed that not This approach has been mandated through European offshore
all sparks are cooled adequately before totally safe emission in legislation.
an offshore environment where hydrocarbons are easily ignited. While US regulators have moved towards an approach
To achieve elimination of exhaust sparks, the current rules with safety and environmental management systems (SEMS),
for engines must be amended to state that diesel engine which addresses lessons learned from previous events, there
exhaust systems must be tted with a spark arrestor designed still appears to be a signicant void with respect to the rigor
and tested to emit no sparks during engine operation. Products afforded to European installations. These variations in international
certied as approved for international hazardous zones, standards and approach cause confusion, particularly in the US,
including zone 2, should be allowed. The spark arrestor must be to the extent that platform safety is compromised; the standard
inspected monthly and replaced if any perforation of the body is of ignition protection related to diesel engines is a clear example
detected. of this. Best available technology for these products is known
Equipment with spark arrestors that do not meet this and well understood and applied throughout Europe and many
requirement should be removed or replaced as they are a safety locations throughout the world, yet they are rarely applied to US
hazard and can cause re or explosion. offshore installations.
Exhaust sparks can be eliminated though the addition of an This situation provides a need and opportunity for
effective spark arrestor that will not perforate due to corrosion. collaboration between US regulators and the oil and gas industry
It is relatively simple for engines working offshore to have this to create a globally accepted standard for these products. Then,
addition to remove this dangerous condition. Stainless steel through strong regulation and enforcement ensure the requirement
cyclone type spark arrestors (Figure 4) are effective in preventing is implemented to reduce the ongoing risks of such events as the
both sparks and corrosion. Deepwater Horizon catastrophe ever occurring again. O T

OILFIELD TECHNOLOGY
April 2011
77
 company news
// Kudu Pumps // Making progression possible
O T
PCP systems are engineered to handle light to heavy
oil, coalbed methane and de-watering applications.
K
udu, like many other service companies, has felt the
brute force of the oil industrys ups and downs. After
all, how many companies get a national award and
then face insolvency in the same month? Kudu found itself
in this position in early 1998 after the crash in oil price.
It is one of those Alberta entrepreneurial success
stories that everybody loves. Two decades ago, a father
and son team of gear-heads, Robert and Ray Mills, took
Progressing Cavity Pumps for the oil patch from a residential
garage in Calgary, Alberta, Canada, to the worlds second
largest PCP manufacturer and distributor.
Robert started investigating PCP in the late 1970s
and patented a novel PCP drive system in 1982. He was
a pioneer in using PCP technology in sand laden heavy oil
wells and high water cut (95% +) oil wells. His rst install was
in the rst horizontal oil well in Wabasca, Alberta, Canada
during a blizzard in 1988 for CS Resources. They were
going through a conventional pump jack per week due to
OILFIELD TECHNOLOGY
78 April 2011
news
high sand cut, Robert says, whose PCP install ended up lasting
over 12 years.
The Mills next hurdle was distribution. Initially an oil
company could only purchase a PCP through a supply store.
These supply stores refused to sell Kudu products so Robert
and Ray ended up selling directly to the customer, which was
unheard of at the time. We were told it would never work,
says Ray. The Mills started peddling their wares and ended up
redening how PCPs were distributed in Canada.
Selling direct to the customer had another advantage; Robert
and Ray learned rst hand the challenges their customers
were facing pumping oil. This led to Kudu heavily investing in
developing new technology to solve customer problems. Kudu
has maintained the technological lead ever since.
My father and I have always been intrigued by nding a
better solution to a problem, whether its using our existing
equipment or sitting down with our customers and coming up
with a new approach, says Ray.


Volume 11 Number 04 - April 2011

VOLUME 04 ISSUE 03-APRIL 2011

Energy Global
www.energyglobal.com

Volume 16 Number 4 - April 2011

A supplement to Hydrocarbon Engineering

Spring 2011
 company news

A direct supply chain made the old distribution scheme less
viable and prompted competitors to follow Kudus lead and stop
selling to supply stores. Ray was doing the majority of installs at
the time and Kudu was quickly gaining a reputation for being the
knowledgeable PCP company and the go to guys for difcult
well applications.
Kudu has always gone up against much larger and
entrenched competitors, says Ray. This holds true today.
Kudus largest Canadian competitors have now been bought
out by even larger multi-national oil service companies. But
we have always put a lot of effort into being an authentic
service company. Meaning a collaborative relationship with our
customers is key to our success.
Soon, Robert and Ray moved from the garage to a small
plant and then to a bigger plant shortly after. Business was
good.
In 1998 the oil price plummeted and Kudu was shouldering
high inventories and bumping up against its credit line. The
business at that time was 95% in Canada and suddenly 60% of
the business went out the door.
At the end of this dark tunnel, Robert saw
Lean Manufacturing which encompasses low debt and low
inventory levels, geographic sales diversity, wider awareness
of economic and industry cycles and a culture of employee
engagement. Give employees the tools and empowerment to
succeed. They have valuable ideas on how to improve their area
of expertise Ray says.
These changes vastly improved Kudus prospects by
increasing annual sales, enabling three acquisitions, reducing
stock outs by 98% and eliminating bank debt all in the space
of four years. They have grown to have 13 service centres in
Alberta and Saskatchewan along with ofces located in Russia,
Romania, Kazakhstan, Oman, the USA and Australia. Perhaps
most importantly, the company now conducts more R&D work in
its eld than any other, holding over 20 patents dealing with PCP
technology in the articial lift eld. O T

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