SPE 68763 Cost and Risk Reduction Through Innovation: Remotely Actuated Completion Equipment for Deepwater and

Extended Reach Wells

James King, Baker Oil Tools

Copyright 2001, Society of Petroleum Engineers Inc. This paper was prepared for presentation at the SPE Asia Pacific Oil and Gas Conference and Exhibition held in Jakarta, Indonesia, 1719 April 2001. This paper was selected for presentation by an SPE Program Committee following review of information contained in an abstract submitted by the author(s). Contents of the paper, as presented, have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material, as presented, does not necessarily reflect any position of the Society of Petroleum Engineers, its officers, or members. Papers presented at SPE meetings are subject to publication review by Editorial Committees of the Society of Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this paper for commercial purposes without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O. Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.

Abstract Eliminating intervention during well completion reduces operating expense and risk. In deepwater, horizontal and extended-reach applications, remote actuation systems for setting completion tools are reducing well intervention and completion time without compromising reliability or safety. This paper will detail the operation of two commercially successful technologies that permit remote actuation. This paper will also examine the reduction of risk and rig time expense through the use of remote actuation systems and outline the selection process for determining the correct technology for a given application. Introduction Throughout the offshore oil and gas industry, focus is turning toward the prolific but challenging area of deepwater. Waters greater than 1,000 feet are home to the largest growth segment of the industry. The technologies that will exploit this growth economically are those that will enable improvements in operational reliability, flexibility and cost effectiveness. One phase of well construction that has shown improvement is well completion. A common conventional completion practice is to set a retrievable or permanent production packer to isolate and control pressure and fluids from the producing zone. To enhance efficiency, the preferred packer setting method is a one-trip

hydraulic system. The packer is run in on the production string in a single trip. The tubing is plugged by landing a wireline or coiled tubing-conveyed blanking plug into a seating nipple below the packer. The packer is then set using hydraulic pressure.1 The one-trip hydraulic system requires well intervention, which can consume from 12 hours to two days of rig time, and introduces the risk of losing the wireline or coiled tubing and associated tools in the well. A more fit-for-purpose setting system would include all the features of the existing one-trip hydraulic system, but would eliminate both the need to plug the tubing and the associated well intervention. These capabilities currently exist in two innovative, one-trip, remotely actuated, hydrostatic-set completion systems. One of these systems relies on pressurepulse communication for actuation; the other relies on absolute well pressure. Both are currently being used in the Gulf of Mexico, the Atlantic Frontier, the North Sea, and southern Argentina; other wells are scheduled for completion in Brazil and the Philippines. Pressure Pulse Telemetry, Wireless Remote Actuation System System Basics. The pressure-pulse, wireless and control lineless, remote actuation system is based on one-way fluidconveyed communication. The system consists of a surface module, a communication medium, which is the fluid column in the completion string, and a downhole completion device (i.e., a packer). The surface modules function is to transmit a preprogrammed frequency of pressure pulses. The fluid column carries the pulses to the electronically enhanced packer or other completion device, which is preprogrammed to actuate upon receiving the correct frequency of pulses.2 Pulses may be transmitted through the tubing or the annulus. (Figure 1) Component Descriptions. The surface module consists of a computer controller, an interface box with manual controls, and a computer-controlled pulse-generating unit. The pulsegenerating unit transmits a discreet pressure pulse of specific

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amplitude and frequency through the tubing fluid. Its components include two piston accumulators, an air-driven water pump, and two pneumatic actuator-operated valves that control discharge of fluid into and out of the well. The surface unit also includes gages that monitor the charging of the accumulators, and bleeder valves that purge air from the system. The interface system is manual. The frequency of the pulse transmission is automatically controlled through a laptop computer. The downhole module consists of an electronically enhanced packer fitted with a frequency detector, an onboard electronic controller, an electromechanical actuator, and a battery power pack. The frequency detector, which is mounted on the packers body, constantly measures pulses traveling through the fluid column. The onboard electronic controller is preprogrammed to register the pressure pulses. When the controller acknowledges receipt of the proper profile and frequency of pulses, a preprogrammed time delay begins. After the time delay, the electromechanical actuator receives power from the battery pack and sets the packer via hydrostatic pressure. Operational Procedures. Just before the packer (or other electronically enhanced completion tool) is run in the well, it is checked and preprogrammed with a hand-held terminal to: 1) recognize a discreet pulse frequency; and 2) actuate after a predetermined time delay. As the completion is being run, the surface modules computer controller is preprogrammed to transmit the discreet pulse frequency, and the surface system is primed so the only additional time spent is in connecting hoses for transmission of pulses through the fluid column. Once in the wellbore, the downhole tools receiver constantly samples all pulses traveling through the completion fluid, while its control system filters and recognizes only pulses of a predetermined profile and amplitude. The tool will not actuate until the preprogrammed, discreet frequency is matched. Once the completion system reaches setting depth, the well can be circulated with the desired completion fluid. Generally, before the matching pulse frequency is sent, a single pressurepulse is transmitted through the fluid column. The reflected pulse received at surface is recorded via the laptop computers data acquisition system. This test pulse allows the user to assess, in real time, the quality of pulses delivered and, therefore, ensures that effective communication is established between the surface system and the downhole tools. Following the communication check, the pressure-pulse generating process proceeds automatically, under the computers control. After the matching frequency has been sent, received and confirmed by the control system of the downhole tool, and the preprogrammed time delay has occurred, the tool sets.

Should the laptop computer system fail to send the matching frequency, the actuator may be controlled manually. Should the primary actuator fail to set the completion tool, secondary actuation is achievable through conventional rig intervention methods. This secondary actuation method for the packer requires landing a blanking plug on wireline in the tubing below the packer and applying hydraulic pressure.3 Run History. Previous literature on pressure-pulse remote actuation of completion tools introduced this innovative technology to the industry and documented case studies to support its continued use. 4 5 The Gulf of Mexico area has seen continuous use of pressure-pulse-telemetry-actuated equipment since 1996, when the technology was first introduced on Shell Mars Subsea #4. This completion was performed in 2,940 feet of water, at a depth of 16,894 feet. (Figure 2) During the 12 months prior to this writing, a total of 12 pressure-pulse-telemetry-enhanced packers were run in GOM deepwater in five separate fields. These packers were used exclusively in water depths up to 3,800 feet, and hydrostatic pressures exceeding 11,000 psi. Optimization of on-line vs. offline preparation resulted in the reduction of Invisible Lost Time (ILT).6,7 (Figure 3) Previous pressure-pulse-telemetry operations lowered packer setting time to just over an hour. But, by rigging up the surface equipment while running the packer in hole, the average total elapsed time to transmit and receive the pressure pulse signal and set each of the packers was just 15 minutes. Managing time in this manner moves well operations toward the technical time limit of well completion efficiency. In these wells, the alternate process of running, setting, and retrieving a wireline- or coiled tubing-conveyed blanking plug to a seating nipple below the packer requires several hours. The primary cost saving from this technology is direct rig time reduction. However, additional economic benefits accrue from avoiding costs associated with intervention. Pressure-pulse remote actuation systems have operated with a 92% success rate during the 12-month time frame covered by this paper. One of the packers had to be set by the contingency setting method described above because failure of other equipment in the well prevented reception of the pressure pulse signal. Pressure-pulse telemetry technology has also been used successfully in record-setting extended reach drilling (ERD) applications. In wells off the coast of Tierra del Fuego, Argentina, packers have been set at measured depths up to 26,450 feet, and at aspect ratios up to 5.2.8 The success ratio of this technology in ERD applications is 100%. (Figure 4)

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COST AND RISK REDUCTION THROUGH INNOVATION-REMOTELY ACTUATED COMPLETION EQUIPMENT FOR DEEPWATER AND EXTENDED REACH WELLS

Absolute Well Pressure Actuation System System Basics. Absolute well pressure activation is less complex than the pressure-pulse telemetry communication system. The concept of actuating devices using absolute well pressure is commonplace in other phases of well construction, particularly in drill stem testing and perforating equipment. Such tools hold atmospheric air pressure in a chamber as they are run to depth and use a rupture disc for actuation. When the absolute pressure in the well exceeds the differential pressure rating of the rupture disc, the disc ruptures, allowing wellbore fluid into tool. The pressure difference between wellbore pressure and the atmospheric chamber provides the driving force for setting the tool. (Figure 5) Operational Procedures. The packer is made up and run in hole in exactly the same manner as a conventional hydraulic set packer in a one-trip completion. Once the completion system reaches setting depth, the well can be circulated with the desired completion fluid. Pressure in the wellbore is then increased to the point where the pressure ruptures the disc, actuating the packer. The packer is completely packed off by the hydrostatic pressure of the well. It is important to take into consideration that the tool is actuated by absolute well pressure, and that at any time when the pressure in the wellbore exceeds the rupture disc rating, the packer will set. For example, if the fluid in the well when the packer is initially run has a higher weight than the completion fluid, the rupture disc must be selected with respect to the more dense fluid. Run History. Absolute well pressure actuation systems have resulted in dramatic savings for operators in the Atlantics Northern frontier, which claims some of the worlds harshest drilling conditions. The BP Schiehallion and Foinaven oilfields, for example, are benign shallow reservoirs, but lie in a harsh subsea environment, in water depths from 1,150 to 1,800 feet. As many as three fourth-generation semi-submersible rigs have operated year-round since development drilling began in the area in 1995.9 (See Figure 6) With operating costs approaching US$250,000 per day per rig, the major part of well cost is rig time. Thus, savings in rig time represent very significant cost savings. High-angle and extended-reach wells are common in this area, often putting completion packers beyond wireline access. Early completions in the Foinaven and Schiehallion fields relied extensively on coiled tubing operations to run and pull plugs as part of completion installation. As a result, completion operations often suffered from non-productive time and waiting on weather associated with the coiled tubing work. Completions typically required approximately 15 days, excluding installation of the subsea tree. A system that allowed completion without coiled tubing intervention was sought for desired cost savings.

The selection of absolute well pressure-activated tools for these completions in 1998 was driven by the simplicity of the tools and an appropriate well design that featured a cemented liner or liner top isolation valve. These completions were the first ever to use absolute well pressure activation on a completion packer. Since the introduction of this technology, the run history in these fields has been unquestionably successful. To date, more than 14 tools have been run without failure. More than 27 absolute well pressure-activated tools have been run world-wide. And, more work is scheduled in South America and the Philippines during 2001. The cost saving realized by adopting remotely actuated completions is almost $1,000,000 per well in some wells. A considerable part of that saving results from eliminating coiled tubing operations; routinely, coiled tubing has ceased to be mobilized to the rig as this type of completion has gained acceptance. Candidate Well Selection Well construction design considerations affect the selection of remotely operated completion products. Pressure-pulsetelemetry-activated tools can be used in any well that will support a full column of fluid. Absolute well-pressure-activated tools can be used in any well with a cemented liner or liner top isolation valve. Absolute well pressure activation requires the well to be unperforated or to have the lower completion hydraulically isolated. Thus, pressure-pulse telemetry technology has wider application, but the simplicity of the absolute well pressure activation system would encourage an operator to use that technology whenever feasible. An example of a situation where the two technologies are complementary is where a packer and perforating gun assembly are run into an unperforated well. If the well is to be perforated in an overbalanced or hydrostatically neutral condition, an absolute well pressure activated packer would be chosen to allow a one-trip completion. However, if the perforating guns were to be fired underbalanced with nitrogen in the tubing, there might not be sufficient surface equipment to handle the increased pressure at the wellhead required to raise the well pressure to the rupture threshold. In this instance, a pressure pulse communication down the annulus to an electronically enhanced packer would be a preferred solution. If both the above scenarios were present in a particular field, a modular system using the same packers with different actuation modules is commercially available, reducing inventory while increasing component commonality.

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Risk and Cost Reduction The successful application of a remotely actuated completion through the use of the technologies described above has the added benefit of reducing risk associated with well completion. By reducing or eliminating the use of wireline and coiled tubing, the risk of fishing operations to remove stuck plugs and parted wireline or coiled tubing is removed. Quantification of risk is accomplished by various methodologies by different operators. A typical lost time incident might entail nothing more than additional wireline or coiled tubing trips. In worst case scenarios, entire wells and tens of millions of dollars have been lost due to unsuccessful intervention operations. Another risk that is eliminated through remotely actuated completions is the Health Safety and Environmental (HSE) concern associated with the rig-up and rig-down of ancillary equipment. Absolute well pressure-activated packers have no surface equipment, and thus have no HSE issues when compared to wireline or coiled tubing as competing technologies. Cost reduction from using remotely actuated packers results from reduced rig time, Non-Productive Time (NPT), and Invisible Lost Time (ILT). With operating costs in remote and harsh areas exceeding US$200,000 per day, the major part of well cost is rig time. Thus, savings in rig time represent very significant cost savings. The amount of time, and therefore cost, saved depends entirely on the daily rig cost and the efficacy of competitive technologies. In applications where wireline- or coiled-tubing intervention would be required, and a run may take as long as six hours elapsed time, a saving of US$50,000 would be realized in rig time alone. In harsh environments such as the North Sea and North Atlantic areas, NPT can add up to several days rig time if the weather will not permit lifting of coiled tubing units from the service boats. Streamlining operations by using remotely actuated packers essentially turns current intervention operations into ILT. Before the advent of these technologies, the consumption of rig time for intervention was considered normal. Now, cost benefit analysis based on rig-time savings must be considered. And, in cases with high daily rig rates, intervention to set completion packers is obsolete. Conclusions 1. Remotely actuated packers have a proven run history in some of the harshest and most remote working environments throughout the world, including the North Sea, North Atlantic, and Tierra del Fuego. Pressure-pulse-telemetry-activated tools can be used in wells that will support a full column of fluid.

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Absolute-well-pressure-activated tools can be used in wells with an unperforated liner or liner top isolation valve. Rig time associated with wireline and coiled tubing intervention to set completion packers can largely be eliminated through the use of remotely actuated packers. Value is added to the completion phase of well construction by decreasing operational complexity of the completion and thus reducing HSE, waiting on weather, and NPT risks. Remotely actuated packers should be considered when reduction of intervention-associated risk and rig time are drivers of completion design.

Acknowledgments The author wishes to thank Baker Oil Tools for permission to publish this paper, and thanks Shell, BP, Total and various other operators for their investment in the future of remotely actuated packers. References
1. Aldridge, Don, and Dodd, Paul: Meeting the Challenges of Deepwater Subsea Completion Design, paper SPE 36691 presented at the 1996 SPE Asia Pacific Oil and Gas Conference, Adelaide, Australia, October 28-31. 2. Jones, Kevin R.: Electronics Add New Dimensions to Well Completions, Oil & Gas Journal (Oct. 2, 1995), 68. 3. Bussear, Terry: Remote Actuation System Speeds Deepwater Well Completions, Oil & Gas Journal (Oct. 7, 1996), 56. 4. Godfrey, D.G., et al.: The Mars Project Overview, paper OTC 8368 presented at the 1997 Offshore Technology Conference, Houston, May 5-8. 5. Smith, Michael V., Lowe, Evan, Coull, Craig - Baker Oil Tools Deewater Remotely Actuated Completions for the 21st Century, OTC 8844, paper presented at the Offshore Technology Conference, 4-7 May 1998. 6. Jones, J. Adrian Transocean Integrated Services, and Pascal, Poupet Shell UK Exploration and Produciton: Drilling The Limit A Practical Approach to Breakthrough Performance, paper SPE 59207, paper presented at the IADC/SPE Drilling Conference, New Orleans, February 23-25 2000. 7. Bond, D.F., Scott, P.W., Page, P.E., Windam, T. M. Woodside Offshore Petroleum Ltd., Step Change Improvement and High Rate Learning Are Delivered by Targeting Technical Limits on Sub Sea Wells, paper IADC/SPE 35077, paper presented at the SPE/IADC Drilling Conference in New Orleans, Louisiana, 12-15 March 1996. 8. Proano, Enrique M. Baker Oil Tools, Clergier, Alberic, Total Austral S.A.: Advanced Completion Techniques For Extended Reach Wells, OTC 8805 presented at the 1998 Offshore Technology Conference, 4-7 May 1998.

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COST AND RISK REDUCTION THROUGH INNOVATION-REMOTELY ACTUATED COMPLETION EQUIPMENT FOR DEEPWATER AND EXTENDED REACH WELLS

9. Mason, John N.E., Moran, Paul, and King, James G. - Baker

Oil Tools, and Cameron, Paul D. - BP: Interventionless Hydrostatic Packer Experience in West of Shetland Completions, OTC 13288 presented at the 2001 Offshore Technology Conference, Houston, April 30 - May 3.

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Figure 1 Pulse Communications System For Down Hole Completion Tools

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COST AND RISK REDUCTION THROUGH INNOVATION-REMOTELY ACTUATED COMPLETION EQUIPMENT FOR DEEPWATER AND EXTENDED REACH WELLS

Figure 2 First Pressure Pulse Telemetry Completion on Mars in 1996

New Orleans Tahoe GULF OF MEXICO Pompano

Mars

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Figure 3. Chart Illustrating the relationship between Technical Limit Time (TLT), Invisible Lost Time (ILT), and Non Productive Time (NPT)

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COST AND RISK REDUCTION THROUGH INNOVATION-REMOTELY ACTUATED COMPLETION EQUIPMENT FOR DEEPWATER AND EXTENDED REACH WELLS

Figure 4. Pressure Pulse Telemetry Completions in Extended Reach Applications - Tierra Del Fuego, Argentina

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Figure 5. Absolute Well Pressure Activated System For Down-Hole Completion Tools

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COST AND RISK REDUCTION THROUGH INNOVATION-REMOTELY ACTUATED COMPLETION EQUIPMENT FOR DEEPWATER AND EXTENDED REACH WELLS

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Figure 6. First Absolute Well Pressure Completions in North Atlantic Frontier in 1998

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Orkney Islands Wick

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