Drilling and Completions

Spectrum of
D&C activity
DRILLING & COMPLETIONS
BASICS
Main Components of a Drilling Rig
All drilling rigs have the following basic systems

Hoisting
Rotating
Circulating & Solids Control
Power
Blowout Prevention
Hoisting System
Used for raising and
lowering the drilling
assembly, and for
running casing,
completion equipment
and other tools in and
out of the hole.
Rotating System
A hexagonal or square pipe 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.
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 traveling block.
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.
Circulating System & Solids Control
Types of Drilling Fluids
Non-dispersed
Dispersed
Calcium treated
Saltwater based
Low solids
Polymer
Water-based Pneumatic Oil-based
Diesel based
Mineral Oil based
Synthetic:
Esters
Ethers
Olefins
Dry air/gas
Mist
Foam
Aerated mud
Selection of the type of drilling fluid systems for a well is based on:
PERFORMANCE, ECONOMICS, and ENVIRONMENTAL CONSIDERATIONS
More than one system may be used in the same well.
Diesel Electric
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 SCR unit. DC
motors supply power to
the drawworks, rotary,
and pumps. AC power is
still used for auxiliary
equipment.
Drill String & Bit
Hole is made by turning a
bit connected to the
bottom of the drill string
and applying weight at the
same time.

The bit is turned either
entirely by drill pipe
rotation from surface or
with the help of a
downhole motor which
rotates when drilling fluid
is pumped through it.
Drill pipe
Drill collars
Measurement
tools
Downhole
motor
Bottom
Hole
Assembly
Bit
Bit Types

Roller Cone






Fixed Cutter



Steel tooth
Diamond
Natural & Synthetic
Diamond
PDC
Tungsten Carbide Insert
Well Control
Primary control of
wellbore pressures is
maintained by ensuring
that the hydrostatic
pressure of the drilling
fluid in the well is always
slightly higher than the
highest formation
pressure exposed to the
open wellbore. Primary
control is lost if a kick is
taken due to imbalance
of pressures.
RIG TYPES
Inland Barge
Semisubmersible
Land
Jackup
Drillship
Types of
Drilling Rigs
Land Rig
Platform
Jack-up
Semi-Submersible
Drill Ship
T.L.P.
Offshore Drilling Rigs
SUBMERSIBLE (35 50 world wide)
INLAND BARGES (POSTED) - Very Shallow Water (up to 20 22ft)
SUBMERSIBLE RIG / BARGE - Shallow Water (up to 70 100ft)

PLATFORM Intermediate Water
(Petronius US GOM= 1800ft+)

JACK-UP Shallow to Intermediate Water
(+/-400 worldwide) (20 400ft, very few >300ft)

SEMI-SUBMERSIBLE Intermediate Deep Water
(+/ 180 world wide) (300 7500+ft)

DRILL SHIP Intermediate Deep Water
(+/- 50 world wide) (200 10,000ft)

SHALLOW-WATER BARGE RIG
PLATFORM RIG
JACK-UP RIG
Derrick cantilevered
over stern of hull.
Well conductor
SEMI-SUBMERSIBLE RIG
Ocean America (on tow)
Year Rated Water Deck Mud BOP
Built Depth (ft) Load (tons) Capacity (bbls) (Mpsi)
5th 97+ 5000-10000 6000+ 6000+ 15
4th 86+ 2000-5000 4000-5000 4000+ 15
3rd 81-85 1200-2500 2500-3500 2000-3000 15
2nd 73-80 600-1500 1500-2500 1500-2500 10
1st pre-73 600 <1500 <2000 10
Semi-Submersible Generations
Transocean Discoverer 534
and Discoverer Enterprise
Transoceans
Deepwater Discovery
(+800ft long)
DRILLSHIPS
1. COST
Approximate Rig Rates (September 02)

Jack-Up (GoM) $30 K /day

2
nd
/ 3
rd
Generation Semi (<2,000 ft) $40 70 K / day

Enhanced 3
rd
Generation Semi (4,500ft WD) $100-130 K / day

DP Semis & Drill Ships $150-180 K / day

DP Dual Activity Drill Ships $200 K / day

WELL CONSTRUCTION &
EVALUATION
Well Construction and Well Types
By Objective

Exploration
P&A or keeper
Delineation
Size of reservoir
Appraisal
Reservoir
characteristics
Development
Reservoir drainage
Injection
Pressure
maintenance

0 ft Rig Datum - RKB
Mud Wt (ppg)
D
e
p
t
h

(
f
e
e
t
)
PP
FG
Mud Wt (ppg)
D
e
p
t
h

(
f
e
e
t
)
PP
FG
Primary Cementing Process
3 Displacing Cement 4 Job completed 2 Pumping Cement
Bottom
Plug
Top
Plug
Cement
Head
1 Hole conditioning
Float
Shoe
Float
Collar
Annulus
Outlet
Full-bore plug cementing
The Conventional job
Directional Drilling - Why?
On Land:
Surface constraint due to
land owner, natural
event, etc.
Relief well in blowout
situation
Horizontal
Offshore:
Save Cost on Platform
Relief well in blowout situation
Horizontal
Extended Reach
Multi-Lateral
Angle Build with Motors
Bent Sub w/ Straight Motor


Single Bend Steerable


Double Bend Steerable

MWD vs Near Bit Sensor
Evaluation Methods
Mud Logging
and
LWD/MWD
Electric
logging
Coring
Drill Stem
Testing (DST)
Shale
High Gamma Ray
+/- 1 ohmm
Resistivity
Density Porosity <
Neutron Porosity
Sand
Low Gamma Ray
High Resistivity
Density Porosity =
Neutron Porosity

Evaluation Methods
Electric logs showing
oil-bearing sand
Basic Completion
Equipment Terminology
Tubing hanger
Tubing spool
Surface Controlled
Subsurface Safety
Valve (SCSSV)
Gas lift valves
Production casing
Production packer
No Go Nipple
Re-entry guide
Blast joint
Seal bore extension
Seal assembly
Production tubing
Flow coupling
Landing Nipple
Circulating sleeve
Completion Types
1. Open-Hole Completions

2. Cased-Hole Completion Types
single zone completion
single tubing w/ multiple
selectives
dual tubing strings
dual tubing strings w/ sand
control

3. Monobore Completions

4. Sand Control
gravel packs
frac packs
4. Horizontal Wells
open hole, slotted liner, cased

5. Multi-Laterals
TAML Levels

6. Intelligent Well Systems

7. Artificial Lift Systems
beam (rod) pump
gas lift
electric submersible pumps (ESP)
progressive cavity pumps (PCP)
jet pump
plunger lift

Hydraulic Fracturing
Damaged
Area
Damaged
Area
Borehole
Gravel Pack
Horizontal Wells
A horizontal well or high angle well describes a well drilled
at an angle greater than 70 relative to vertical.
Can connect natural fractures in carbonates.
Prevent water/gas coning by reducing pressure draw down.
Improves sweep efficiency through infill drilling,
horizontal injection for waterflood or EOR.
Can enhance property value by increasing recovery in tight
gas reservoirs or thin sands or low permeability reservoirs.
Location constraints limiting numerous wells.
Horizontal Open-Hole Gravel Pack
Packer
Sand
Control Screen
Sized gravel
Casing Shoe
Unconsolidated Sandstone Reservoir
Underlying Water
Horizontal Well Cased-Hole
Reservoir Characteristics that favor
this completion
Vertical permeability greater
than 50% horizontal
permeability
No inter-bed barriers or sealing
laminations
Some sand production or plan to
gravel pack
Confined surface and reservoir
access
Fracture treatments
Drivers of Multilateral Technology
Cost reduction
Slot conservation
Increased reserves
Accelerated reserves
Delineation of the reservoir
Intelligent Well Systems (IWS)
An Intelligent Well System is defined by ChevronTexaco
to include at least one downhole flow control valve, one
downhole sensor, and two distinct intervals.

Provides real-time reservoir management:
Downhole data sensing, acquisition, and transmission
of temperature, pressure, density, flow, etc.

Remote control of flow and well operations
Beam Pump (sucker-rod pump)
Mechanics
Utilizes a reciprocating rod to move a
downhole pump.
Downhole pump consists of traveling
and standing valves, which utilize
check valves to trap and mechanically
lift a column of fluid.
Characteristics
Comprised 80% of all artificial lift.
Predominantly land use.
Handles gas and solids fairly well.
Best for low-volume producers (5 to
5,000 BFPD)
Gas Lift
Mechanics
Best mimics natural flow. Utilizes
pressurized gas injection downhole to lighten
the hydrostatic head of a column of fluid,
allowing reservoir pressure to lift the fluid
column to surface.
Uses downhole valves to regulate the amount
and depth of gas injection
Continuous or intermittent lift.
Characteristics
Used wherever a gas source is available.
Second most common lift system (Most
common offshore lift system).
Good handling of solids.
Wide range of production rates
Electric Submersible Pump (ESP)
Mechanics
Utilizes a downhole electric motor to drive a
downhole centrifugal pump.
Uses surface electrical transformers and
variable frequency speed drives to deliver
consistent power.
Characteristics
Requires electrical power supply.
Highest lift efficiency of all lift systems.
Becoming more common as an offshore lift
system.
Poor handling of solids and fair handling of
gas.
Wide range of production rates (200 to
30,000 BFPD)
Lifespans anywhere from 1 to 7 years
depending on environment and
horsepower/power quality.
Potential Environmental
Emissions
Ozone Depleting Halocarbons
Flaring
Waste to Shore
Muds & Cuttings
Produced Water
Power Generation
Emissions
Mark Webster
Environmental Team Leader
GoM Deepwater Production BU
Aspects and Impacts
Aspects
Impacts
> Discharge of muds
& cuttings
> Air emissions from
diesel engines
> Disposal of wastes
on shore
> Decline in quality of
GoM waters
> Degradation of air
quality
> Adding to landfills;
potential
groundwater
contamination
A 24,000 Well Generates
3430.27bbls of Waste

Conductor Hole Conductor Casing
26 in 2 days 20 @ 700
459.68 bbls

Surface Hole Surface Casing
17.5 in 15 days 13 3/8 @ 2000
595.00 bbls

intermediate Hole Intermediate Casing
12 1/4 in 25 days 9 5/8 @ 13000
1603.54 bbls
Production Hole Production Casing
8 1/2 in 60 days 7 5/8 at 24000
772.05 bbls
Assuming gauge hole, does not take into account
a number of factors, such as porosity or washout.


Disposal and Treatment
Options
TREATMENT
S/S
Thermal
Presses/ Washes
Ultrasonic
Technology
Dryers
Separation
techniques
DISPOSAL?????
Discharge
Injection
Evaporation
Burial
Landfarming
Landspreading

Drilling Waste Concerns
Offshore
Oil
Toxicity

Onshore
Salinity
Oil
Heavy Metals

WELL PLANNING:
A MULTI-DISCIPLINARY
APPROACH
Geophysical Data
Gravity, seismic, and petrophysical log data are combined
to make 3D Earth Models
Anticlinal Trap
rock
Seal
Oil
Water
Types of Petroleum Reservoirs
Salt Trap
Salt Dome
Cap
Rock?
POROSITY
Sedimentary rock has pores (small openings)
PERMEABILITY
Connected pores allow fluid to flow
PORE PRESSURE
Normal, abnormal or subnormal pore fluid pressure
ROCK STRESS
Force imposed to the rock
BALANCE
Mud weight must balance pore pressure and rock stress
WELL PLAN BASICS
HIVE well planning
HIVEs in 12 locations
16 HIVEs across BP
HIVEs regularly used for well
planning.
Valhall OOC - 1
st
BP onshore
operations centre
Decision Space: Temis 3D + EarthVision
Andrew Field with EarthVision
top reservoir surface and
Temis 3D Pressure slices at
Eocene Limestone horizons
A17 Well planning with targets
identified from subsurface
reservoir and EarthVision models

Top Reservoir
Rev H:
A17
A09 : comparable trajectory
to Rev H A17
Comparison of Andrew A09 to
Planned Rev H (A17) Trajectory
VIEW NORTH
Wellpath Rev H
Top Reservoir
Andrew Platform
VIEW SOUTH
23
16
12 1/4
Hole Sections Rev H (A17) Trajectory
Grouped drilling
NPT
Grouped drilling
NPT
23/32
Grouped drilling
NPT
VIEW NORTH
Base Miocene
Sand
Lower Eocene
Grouped drilling
NPT associated
with Base
Miocene and
Lower Eocene
Limestone
Rev H:
A17
Andrew Field No Drilling Surprises (NDS) Project:
Wells with Geological Surfaces and Drilling NPT
A09 : comparable trajectory
to Rev H A17
VIEW NORTH
Base Miocene Sand
Lower Eocene
12 1/4
A09
NDS Lower 12 section :
Hole Cleaning, Tight Hole, Stuck
Pipe, Gas in Limestones,
Mudstones washing out.
Andrew NDS : Lower 12 Section
Drilling Cost Estimation
Deterministic - Single figure
Probabilistic - Considers risk and uncertainty using
probabilities (objective, empirical, subjective) - Decision Trees,
Monte Carlo - Cost estimates are given with associated
probabilities, usually P10, P50 and P90

Both methods require base case estimation by hole intervals
Plot of Cost vs. Days for tracking actual vs. estimated cost
Cost per Foot of offset wells for benchmarking and cost estimating
Country: Project:
Deliverable: CVP Stage:
Cost Estimate:
Best in Class Performance:
#
Sanction Amount: Sanction %ile:
Promise (P10 - P90):
Best in Class Performance:
Rig rate 0.61
Project Scope Assumptions: Drilling learning rate -0.59
o Stuck pipe frequency 0.53
o Lost circulation freq. 0.49
o Waiting on weather 0.41
12-1/4" hole ROP -0.29
Key Risk Assumptions: 8-1/2" hole ROP -0.21
o Avg. stuck pipe duration 0.18
o 17-1/2" ROP -0.15
o Completion learning rate -0.13
o
MM ( )
million Mean Cost: $381
Project Details
Input Data
Multi-well estimate with learning. Initial performance based on four previous E&A wells. Plateau performance
based on multiple of Technical Limit.
Orsino Phase 2 Development
Define 12 oil producers + 2 water injectors
Average of top 10% of all Illyria platform wells, 1997-2000, 2001 Rushmore data.
Time & Cost Summary
25% $476 $290
P50 million $379
MM -
Wells team in place 3 mths before spud
Major NPT risks are post-mitigation
First well spudded in 2nd Qtr
days ( 1265 P27
Key Performance Indicators P50 P90
)
46 54 48 Days / 10K
22 36 27 Days / Completion
Rig rates per 2001 activity levels
14 wells (12 prod. + 2 inj.)
2 geol. Sidetracks, 1 respud
"Explorer" class drilling rig
Illyria
Drilling Uncertainty Statement - Summary
Assumptions & Risks
Best in Class P10
44
21
-1 -0.5 0 0.5 1
FrequencyChart
Cert aint y is 79. 74% f rom 1, 200. 83 t o 1, 480. 69 days
. 000
. 006
. 013
. 019
. 026
0
64
128
192
256
1, 000. 00 1, 175. 00 1, 350. 00 1, 525. 00 1, 700. 00
10,000 Trials 30 Outliers
Forecast: Total Days
Frequency Chart
Cert aint y is 80. 09% f rom 290. 00 t o 476. 67 million dollars
. 000
. 008
. 015
. 023
. 030
0
75. 5
151
226. 5
302
150. 00 275. 00 400. 00 525. 00 650. 00
10,000 Trials 10 Outliers
Forecast: Total Cost
BiC
PUSHING THE ENVELOPE.
T
o
t
a
l

D
e
p
t
h

Pompano Mars Ursa
Empire
State Bldg.
Diana
Hoover Na Kika
Horn
Mtn Holstein
Atlantis
Mad
Dog
Thunder
Horse
Note: Conceptual illustration only
10,000
15,000
20,000
25,000
30,000
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
BP Steps Out in GoM
Deepwater
ROV Launch
Control cabin, launch
arm, tether system,
and ROV on rig deck
ROV and tether system
being launched
Typical
ROV
Thrusters
Buoyancy
DRILL-SUPPORT
ROV SYSTEMS