Drilling Overview for Non-Technical People

Rio de Janeiro Brazil July 21, 2008 Kyle Eastman

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AGENDA
Safety moment
Basic petroleum geology Well construction basics The drilling rig Drilling a Well Animation

When things go wrong

Frade specific information Questions throughout the presentation

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Safety Moment
Video to show planning can make it possible

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Basic Petroleum Geology

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Geology is critical for well design

During drilling rock characteristics and associated drilling conditions can change many times, therefore an understanding of the anticipated geology is essential for properly designing the well and then drilling it efficiently and safely.

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Types of Rocks
Non-Reservoir: Igneous: Rocks formed by solidification of hot mobile material called magma Metamorphic: Rocks formed by transformation of pre-existing igneous or sedimentary rocks as a result of high temperature and pressure Reservoir: Sedimentary: Rocks formed from accumulations of sediment which may consist of rock fragments of various sizes, the remains of animals and plants, the product of chemical action or evaporation, or a combination of these. Most petroleum reservoirs are found in sedimentary rocks, mainly sandstone, limestone and dolomite because they have porosity.
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Shale Sandstone Limestone Calcareous shale Anhydrite Argillaceous Limestone Quartz Conglomerate Clay Dolomite Lignite

Petroleum SystemComponents Elements Prospect

Anticlinal Trap

Top Seal Rock

(Impermeable)

Reservoir Rock
Potential Migration Route
Faults & Fractures Unconformities Salt Faces and Welds Porous and Permeable Beds

Source Rock

(Organic Rich)

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In the example above the source rock is connected to the reservoir by a fault (migration route). As hydrocarbons are expelled from the source they travel along permeable paths created by the fault. The oil will them migrate through the reservoir to the top of the structure due to buoyancy effects where they are trapped by the overlying impermeable formation (Top Seal)

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Well Construction Basics

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Well Construction

Well construction is an engineering design process that starts with a clear understanding of the objectives to be achieved. As a minimum, the following data are required to commence the design and planning process Well depth Location land, offshore (water depth) Geology lithology, structural features, hazards, stability Formation Pressure profile Fracture Gradient profile Downhole target(s) vertical or directional well Type of well exploration, delineation, appraisal, development Evaluation requirements sampling, coring, logging, testing Type of fluid and anticipated flow rates
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Drilling Fluid

Transport cuttings to surface

Support & stabilize the wellbore

Minimize loss of circulation

Cool & lubricate the bit

Control subsurface pressures

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Casing
Any given well requires several strings of casing, starting with the largest diameter pipe on top. Subsequent strings of casing are progressively smaller in diameter as they must pass through the inside of the previous casing. The diameter of the deepest casing is generally dictated by the size of the production tubing required for anticipated flow rates. The primary purpose of each casing string is to isolate one geological regime from the other and enable further drilling with full control of anticipated downhole pressure conditions of the next interval. An understanding of downhole pressure variations is essential for selecting the setting depth of each casing.
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Conductor

Surface

Intermediate

Production

Cement
Casing Support Zonal Isolation
Properly cemented casing prevents communication between zones of differing characteristics to enable drilling deeper
Low pressure loss zone

Casing bonded with formation rocks supports its own weight and load of surface equipment that is mounted on it
Cement

Casing Protection
Casing

Higher pressure permeable zone

Some formations contain fluids that can attack casing

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Roller Cone Bits

Milled Tooth

Tungsten carbide insert (TCI)

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Fixed Cutter Bits

PDC, Polycrystalline Diamond Compact

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Diamond Bit Terminology & Features

Crown

Junk Slot

Diamond Gauge Shank

Breaker Slot API Pin Connection

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Coring Bits
Cutters made from diamonds or PDC Various profiles depending on formation or rock properties Numerous sizes to accommodate rock recovery objectives

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What is Directional Drilling

Directional wells are deviated from Vertical (Straight) Directional wells are drilled with intention to control : inclination (angle) azimuth (direction). Think 3-D when Directional

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Why Drill Directional

On Land: Surface constraint due to land owner, natural event, etc. Relief well in blowout situation

Horizontal

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Why Drill Directional

Offshore:

Save Cost on Platforms Relief well in blowout situation Horizontal Extended Reach Multi-Lateral

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The Drilling Rig

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Main Systems of a Drilling Rig

Hoisting
Rotating Circulating Power

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Hoisting System
CROWN BLOCK

Used for raising and lowering the drilling assembly, and for running casing, completion equipment and other tools in and out of the hole.

DERRICK

TRAVELING BLOCK

HOOK

FAST LINE

DEAD LINE

ROTARY TABLE DRAWWORKS DRILLING LINE SUPPLY SPOOL

SUBSTRUCTURE DEAD LINE ANCHOR

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Typical Rig Floor Layout

Auxiliary Brake

Console & Controls

Drawworks

Rig Floor

Rotary Table

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Drillers Console

Gauges read: Hook load Weight on bit Pump pressure Pump strokes Rotary speed Torque Mud volume Change in mud volume Return mud flow Alarms and limit switches can be set for critical measurements

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Drillers Console Modern Rig

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Rotating System

Rotary Table or Top Drive Rotates the Drill String

The Drill String acts as the connecting link with the bit

The Bit Rotates to Cut the Rock

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Rotating System
A hexagonal or square pipe, called Kelly, is connected to the topmost joint of the drill string. The rotary table and Kelly drive bushing impart rotation to the drill string while allowing it to be moved up or down.

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Rotating System Top Drive

As an alternative to the Kelly and rotary table, most modern rigs employ a Top Drive system for rotating the drill string. A powerful electric or hydraulic motor is suspended from the travelling block.
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Circulating System
During drilling, fluid is continuously pumped down the drill string, through the bit, and up the annular space between the hole and the drill string. Its main purpose is to bring up the cuttings, cool the bit, maintain hole stability, and prevent formation fluids from entering the wellbore.
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Two Mud Pumps fully hooked-up

Pulsation dampener

Suction tank

Triplex pumps Electric motor

Suction charge pumps

High pressure discharge line

Pump suction line

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Electric Rig Power System

Most modern rigs are electric. Generally, large diesel engines are the primary source of power. Electric power generated by the engines is first converted from AC to DC in the Silicon Controlled Rectifier (SCR) unit. DC motors supply power to the drawworks, rotary, and pumps. AC power is still used for auxiliary equipment. More and more AC motors are taking the place of DC motors
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Engines & Generators Drawworks

Motor

Rotary SCR & Control System

Motor

Motor

Mud Pumps
Motor

Drillers Console

Types of Drilling Rigs

Platform Land Rig Jack-up

Semi-Submersible Drill Ship

T.L.P.

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Platform Rig

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Jackup Rig

Derrick cantilevered over stern of hull

Well conductor

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Semi-submersible Rig Semi-submersible Rig

Cajun Express

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Drill Ships

Transocean Discoverer 534 and Discoverer Enterprise

Transocean Deepwater Discovery (+800ft long)

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Inland Barge

Land

Jackup Semisubmersible Drillship Types of Drilling Rigs

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Drilling a Well Animation

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When Things go Wrong

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Brazil Frade Specific Information

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Brazil Overview
Reserves shown in MMBOE Gross (Net) Frade Field
Guaran Prospect

BM-C-4

Brazil 120 kms offshore Brazil

Water Depth 1050-1300 m
Discovered in 1986 First oil: GO-36 Forecast April 2009
Rio de Janerio

P10: 128 (60) P50: 258 (120) P90: 349 (163)

Frade

Roncador

Concession through 2025

Scale 100 km

P10: 72 (20) P50: 127 (34) P90: 217 (59)

Maromba

P10: 245 (83) P50: 334 (113) P90: 467 (157)

Papa-Terra

74 MMBOE
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Oliva

P10: 244 (45) P50: 305 (56) P90: 382 (70)

Atlanta

Brazil Reserves Overall 1.098 BBOE Gross 0.374 BBOE CVX Net

Frade Project

Development Overview
Drilling Program 3 Stratigraphic Wells 12 Horizontal Producers 7 Near Vertical Water Injectors FPSO Converted VLCC tanker 1.5 MM bbls storage Turret mooring w/ tandem offloading Topsides Design Capacities

Oil: Liquid: Produced H2O: H2O Injection: Gas: Oil: Gas:

100 kbpd 150 kbpd 130 kbpd 150 kbwpd 106 mmscfd

Transportation Tanker (Suezmax) - GoM Pipeline (BR infrastructure)

Capex

2.5 B$ Gross 1.3 B$ CVX Net

1st

Production

Nov-Dec 2008

30 Months Execution Phase Commenced Phase 4 2Q 2006 P50: 243 MMBO P90: 328 MMBO

Reserves
P1 : 88 MMBO

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Well Planning

Stratigraphic Wells
Detailed wireline logging program Extensive coring program Data used by reservoir engineers and geologists to

further appraise the field

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MDS1
ESE

Seismic Arbitrary Line Stratigraphic Well - MDS1

PGS_NearMid_11_20 PSDM07_10-20FinalStack WNW

Top N580

MDS1
2000m

Basemap

Axial N570

N560

2500m

Oligocene N545_2

Azul
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TD 0 meters 500

Core Point

PSDM DOC ID Depth

Well Planning Stratigraphic Well

MUS2

1 Stratigraphic Wells Max Deviation = 28o

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Well Planning

Injector Wells
Located on the periphery of the Frade field Used for injecting produced water to maintain

reservoir pressure support.

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ODI1
North

Seismic Arbitrary Line ODI1

PGS_NearMid_11_20 PSDM07_10-20FinalStack South

ODI1

2000m

Basemap
N570

Top N545_1

N560

Top N545_2

Oligocene 2500m

Azul
meters 500 TD

Water Injection Completion

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PSDM DOC ID Depth

Well Planning Injector Well

ODI1
7 Injectors Max Deviation = 50o MUI1 MDI1 OUI1 MUI2 N5I1 OUI2

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Well Planning

Producer Wells
Produce Oil from Frade Field

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Seismic Arbitrary Line Production Well - ODP1

NNE SSW

PGS_NearMid_11_20 PSDM07_10-20FinalStack

ODP1

Top N580

2000m

ODP1
Basemap
Axial N570 Lateral Section 1050m N560

2500m

Oligocene

Heel Azul

Toe

meters

1000

PSDM Depth
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What do the Frade Wells Look Like Producer Well

12 Producers 3.5o/100ft BUR Min Horizontal Length = 784m

Max Horizontal Length = 1130m

Avg Horizontal Length = 973m

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PRODUCERS: Subsea Horizontal Well w/ Gas Lift & Open-Hole Horizontal Gravel Pack (OHHGP)
12 wells 800 m to 1100 m horizontal sections

RT to MSL - 25m Water Depth - 1050 - 1300 m 36" Casing (drill/jet) m TVD RT 60m BML m MD RT 60m BML 17-1/2" / 13-3/8" Int Csg m TVD RT 1780m BML m MD RT 1800m BML, varies by well 12-1/4" Hole / 9-5/8" Csg m TVD RT 2100-2350m m MD RT 2300-2600m 8-1/2" Hole / 5-1/2" 13Cr Screen m TVD RT Same as 9-5/8 Csg Point m MD RT 9-5/8 Csg Point + 800m to 1200m

5000 psi Horizontal Subsea Tree

Control Lines Gas Supply / Service Line

Production Flowline

Subsea Wellhead
36 Casing

TRSCSSSV

20 Casing (Optional)

13.3/8 Casing PT Gauge Bundle MISR

5.1/2" Production Tubing

Gas Lift Valve

Dual Chemical Inj. Sub

Control Lines 2 x 3/8 Chemical Injection 1 x 1/4 for P/T Sensor Cable 1 x 1/4 for for Variable Orifice Gas Lift Valve 2 x 1/4 SCSSV 1 x 3/8 Methanol injection Protectors, Encapsulation, & Flat-Packing to be Determined
800-1100 m 8-1/2" Hole

10-3/4 x 9 5/8 Casing 5-1/2" Premium Alloy Screen, 13Cr Base Pipe Gravel Packed

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FSV

Frade Drilling Rigs Noble Leo Segerius

Drill-ship, built 1981 Working in Brazil for Petrobras Tentative arrival 2nd August 08 210 day term + 45 day option US $525k /day US $900k / day US$10 / second

S-706
3rd Generation Semi, built 1976 Extensive upgrade commenced In Singapore, schedule depart Dec 08 Commence operations Mar 09 5 year term (2-yr Ext. by Corporation) P10 rig available Oct 10 US $300k /day
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Brasco Logistics Base - Niteroi

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Frade Support Vessels

PSV: Platform Supply Vessel
Supplies deck cargo, diesel, and liquid mud

TSV: Tug Supply Vessel

Supplies liquid mud, deck cargo, and maneuvers oil

tankers for FPSO

MSV: Multi-Services Vessel

Engineering services to support setting tree on

wireline and manipulating jumpers and flying lead on sea floor.

Greater than 52 beds to accommodate work crews.
Supplies deck cargo and liquid mud for drilling rig

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Chouest Vessels
PSV

TSV

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Norskan MSV

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TSV Photo

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MSV Photo
Large Crane for running Subsea Trees Heli-pad for helicopter landing

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Acknowledgements

Special thanks to: Reinaldo Bruzual Rafael Teixeira

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Q&A / Discussion Session

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Drilling Overview for Non-Technical People

Rio de Janeiro Brazil July 21, 2008 Kyle Eastman

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Back-Up Photo Slides

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Station Keeping Dynamic Positioning Thrusters

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Dynamic Positioning Thrusters

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ROV Support System

Control cabin, launch arm, tether system, and ROV on rig deck ROV and tether system being launched

Buoyancy

Thrusters

ROV Launch Typical ROV

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Drilling Equipment Subsea BOP Stack

BOP on deck Running BOP from rig

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Marine Drilling Riser

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70ft Riser joint, fitted with syntactic foam buoyancy

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Typical Subsea Horizontal Tree

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Tension Leg Platform

2,860 ft WD

Shell Auger TLP

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Spar Type Drilling & Production Unit

A Deepwater production facility. Essentially this is a traditional production platform, mounted on a moored cylindrical column.

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Genesis Spar - Drilling & Production Unit

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Genesis Spar Float Out

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FPSO Floating Production Storage and Offloading Unit

A Deepwater production facility - a Tanker Ship with production facilities mounted on the deck.

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http://www.fpso.net/
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Captain Field - FPSO

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