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APRIL 2013
JOURNAL OF PETROLEUM TECHNOLOGY www.spe.org/jpt
Offshore Drilling and Completion
Natural Gas Processing
and Handling
High-Pressure/
High-Temperature Challenges
History Matching and Forecasting
Unconventional Rock Research
SPE President and Board Nominees
OTC Spotlight on New Technology Winners
FEATURES
PROPPANT
INNOVATION
April13_JPT_Cover.indd 1 3/15/13 7:40 AM
6 Performance Indices
10 Regional Update
12 Company News
14 Presidents Column
16 Comments
22 Technology Applications
28 Technology Update
140 People
142 SPE News
143 Professional Services
147 Advertisers Index
148 SPE Events
Cover: A worker monitors the quality
of ceramic proppant made at Carbos
plant in New Iberia, Louisiana, USA.
Fracturing technology is rapidly evolving,
with innovations aimed at increasing
oil production in a growing range of
formations. Photo courtesy of Carbo.
18 Guest editorial BiG data is a BiG deal
The E&P industry must work with big data to meet future demand from
a growing global population.
32 YounG technoloGY showcase hYBrid rotarY
steeraBle sYstem delivers hiGher Build rates
and smoother holes
A new rotary steerable system can deliver, in a single run, well profiles
previously possible only with motors.
36 in search of BiGGer, stronGer, and liGhter
Companies are trying new ways to produce more oil out of tight
formations by altering their completions, and proppant makers are
responding with an array of new options.
48 TURNING A SCIENTIFIC TOOL INTO AN
enGineerinGmachine
A collaboration between an industry-backed lab and a maker of high-
powered scanning electron microscopes aims to change how rocks are
tested by building upon the existing shale knowledge base.
54 middle east unconventional Gas conference
and exhiBition review
Results from recent gas exploration and appraisal activities in the Middle
East and North Africa indicate that the region holds substantial resources
of unconventional gas, especially tight gas.
58 sPe Board nominees announced
Nominees for the 2015 SPE president and Board of Directors.
62 manaGement advancinG industrY technoloGY:
a new ecosYstem for innovation
The industrys growth potential today primarily involves unconventional
formations, Arctic reserves, and improved recovery from mature fields.
The development of these resources requires innovative, cost-effective
technologies.
66 OTC RETURNS FOR 44THEDITION
A preview of the 2013 Offshore Technology Conference.
70 OTC SPOTLIGHT ON NEW TECHNOLOGY AWARDS LAUD
industrY innovators
The Offshore Technology Conference announced the winners of its 2013
Spotlight on New Technology Awards.
An Official Publication of the Society of Petroleum Engineers. Printed in US. Copyright 2013, Society of Petroleum Engineers.
Volume 65 Number 4
ContentsApril.indd 1 3/15/13 6:40 AM
TECHNOLOGY
ThecompleteSPEtechnicalpapersfeaturedinthisissueareavailable
freetoSPEmembersfortwomonthsatwww.spe.org/jpt.
82 OffshoreDrillingandCompletion
Helio Santos, SPE, President, Safekick Limited
83 Post-Macondo Drilling in Deepwater Gulf of Mexico Faces
AddedChallenges
88 First Barents Sea Oilfield Development Emphasizes Oil
SpillPreparedness
93 Taking a Fresh View of Riser Margin for Deepwater Wells
PotentiallyBoosts Safety
98 NaturalGasProcessingandHandling
George Hobbs, SPE, Director, Strategic Chemistry
99 Floating Compressed-Natural-Gas System Provides Simpler Path
toMonetization
104 Handling Jurassic Field Sour Gas Creates Challenges Upstream
andDownstream
106 Proposed Cluster Liquefied-Natural-Gas Production System Raises
Tolerance of CO
2

110 High-Pressure/High-TemperatureChallenges
Mike Payne, SPE, Senior Advisor, BP
111 Offshore HP/HT Gas Well: Drilling and Well Testing
116 25,000-psi 500F Packer-Seal System
120 Integrating FPWD Measurements With Managed-Pressure Drilling
124 HistoryMatchingandForecasting
Alexandre Emerick, SPE, Reservoir Engineer, Petrobras
ResearchCenter
125 Sparse History Matching: Nonlinear-Orthogonal-Matching-Pursuit
Algorithm
132 Combined Uncertainty and History-Matching Study of a Deepwater
Turbidite Reservoir
136 First Norne Field Case on History Matching and Recovery
Optimization

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JPT APRIL 2013
PERFORMANCE INDICES
WORLD CRUDE OIL PRODUCTION
+
THOUSAND BOPD
OPEC 2012 JUN JUL AUG SEP OCT NOV
Algeria 1544 1546 1548 1550 1482 1483
Angola 1790 1740 1840 1740 1790 1770
Ecuador 502 508 512 506 503 504
Iran 3350 3200 3100 3150 3000 3000
Iraq 2975 3075 3175 3275 3075 3225
Kuwait* 2630 2625 2625 2610 2610 2650
Libya 1400 1400 1450 1500 1500 1450
Nigeria 2580 2580 2640 2490 2390 2340
Qatar 1200 1200 1200 1200 1200 1200
Saudi Arabia* 10020 10015 10015 9800 9800 9540
UAE 2820 2820 2820 2820 2820 2820
Venezuela 2240 2240 2240 2240 2240 2240
TOTAL 33051 32949 33165 32881 32410 32222
THOUSAND BOPD
NON-OPEC 2012 JUN JUL AUG SEP OCT NOV
Argentina 538 556 564 564 552 532
Australia 360 426 431 475 511 469
Azerbaijan 945 939 905 850 942 940
Brazil 2033 2023 2004 1924 2011 2045
Canada 2994 3097 3058 3014 3160 3243
China 4015 4010 4128 4242 4217 4232
Colombia 935 935 911 956 961 970
Denmark 212 200 196 178 197 202
Egypt 556 554 554 553 553 552
Eq. Guinea 297 297 297 297 297 297
Gabon 242 242 242 241 241 240
India 785 785 778 780 772 774
Indonesia 847 840 839 838 829 832
Kazakhstan 1509 1509 1485 1482 1487 1564
Malaysia 486 499 516 510 509 507
Mexico 2584 2568 2596 2593 2581 2618
Norway 1583 1553 1570 1309 1549 1517
Oman 924 930 923 925 935 947
Russia 9861 9882 9907 9941 9984 10048
Sudan 95 95 95 95 95 95
Syria 191 131 131 136 131 131
UK 949 954 742 609 688 865
USA 6228 6351 6267 6528 6831 6893
Vietnam 336 338 348 347 332 342
Yemen 150 150 160 160 160 162
Other 2435 2508 2503 2441 2563 2420
Total 42090 42372 42150 41988 43088 43436
Total World 75080 75216 75205 74841 75344 75658
Perf_Indices_April.indd 6 3/25/13 7:28 AM
JPT APRIL 2013
PERFORMANCE INDICES
US NATURAL GAS WELLHEAD PRICES
WORLD ROTARY RIG COUNT

REGION
2012
AUG SEP OCT NOV DEC
2013
JAN FEB
US 1913 1859 1834 1809 1784 1757 1762
Canada 316 355 365 385 353 503 642
Latin America 417 411 412 398 414 414 427
Europe 118 124 124 127 136 134 135
Middle East 388 381 377 394 363 379 350
Africa 111 108 104 102 102 115 113
Asia Pacific 227 230 242 246 238 237 250
TOTAL 3490 3468 3458 3461 3390 3539 3679
WORLD CRUDE OIL PRICES (USD/bbl)
125.45 106.16 119.75 103.32 110.34 94.65 95.16 82.30

2012 MAR APR MAY JUN
102.62 87.90 113.36 94.13 112.86 94.51 111.71 89.49
JUL AUG SEP OCT
109.06 86.53 109.49 87.86 112.96 94.76 116.02 95.31
NOV DEC 2013 JAN FEB
Brent WTI
WORLD OIL SUPPLY AND DEMAND
1
MILLION BOPD 2012
Quarter 1st 2nd 3rd 4th
SUPPLY 88.97 88.95 89.07 89.13
DEMAND 88.80 88.72 89.11 89.86
INDICES KEY

+ FiguresdonotincludeNGLsandoilfromnonconventionalsources.
* Includesapproximatelyone-halfofNeutralZoneproduction.
1 Includescrudeoil,leasecondensates,naturalgasplantliquids,otherhydrocarbonsforrefineryfeedstocks,refinery
gains,alcohol,andliquidsproducedfromnonconventionalsources.
Source: BakerHughes.
Source:USDept.ofEnergy/EnergyInformationAdmin.
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Perf_Indices_April.indd 8 3/25/13 7:29 AM
REGIONAL UPDATE
10 JPT APRIL 2013
AFRICA
Production began from the PSVM
development area of Block 31 offshore
Angola. Initial volumes come from three
wells in the Plutao field, targeting an initial
70,000 B/D of oil and a plateau rate of
150,000 B/D of oil this year. Sonangol
EP (25%) is the concessionaire of the
block operated by BP Exploration Angola
(27.67%) in partnership with Sonangol
P&P (20%), Statoil Angola (13.33%),
Marathon International Petroleum Angola
Block 31 (10%), and SSI 31 (5%).
Drilling began on the Semda 1 well in
the Tajerouine production sharing license
area of Tunisia. The prospect is 150 km
southwest of Tunis, targeting primary
objectives in the Cretaceous-aged Aptian
Serdj Dolomites, the Barremian Bed Bars,
and Sidi Aich Clastics, as well as deeper
gas objectives. The planned depth is
3500m. Oil Search Tunisia is the operator
with a 100% interest.
ASIA
Drilling began of the Spaoh-2 well in
the Balai Cluster offshore Malaysia. It
is the third well in the predevelopment
appraisal program, with a target depth of
2710 m. The cluster comprises four fields:
Balai, Bentara, West Acis, and Spaoh, and
the operating consortium is BC Petroleum,
consisting of ROC Oil (48%), Dialog Group
(32%), and Petronas Carigali (20%).
The South Kecapi-1 well of the
Bontang production sharing contract
was completed offshore East Kalimantan,
Indonesia. It is Salamander Energys
firstwell in its multiwell North Kutei
program. The well encountered 131 ft of
net oil and gas pay in quality, stacked
Pliocene channel sandstones. A drillstem
test in Pliocene channel sandstone
flowed lightoil at 6,000 B/D and 8
MMsf/D of gas. Salamander owns 100%
ofthecontract.
AUSTRALIA
The Yulleroo 4 well in exploration
permit 436 of Western Australia was the
first drilled in the Buru EnergyMitsubishi
2013 drilling program, 80 km east of
Broome. It was cased to a measured depth
of 888 m, with a total planned depth
of 3800 m. Buru and Mitsubishi each
have a50% stake in both the well and
thepermit.
The Moonta 1 shale gas well in
exploration license 218 in the Patchawarra
formation of South Australias Cooper
basin reached a maximum controlled
flow rate of 2.6 MMsf/D, and is currently
flowing at 1.6 MMsf/D through a 1.5-in.
choke. The well was stimulated with a
single stage in the uppermost part of the
formation. The license is wholly owned
and operated by Beach Energy.
EUROPE
Production has begun at the Valhall
Redevelopment Project in the southern
Norwegian North Sea, giving the field
another 40-year design life with capacity
to handle 120,000 B/D of oil and
143MMsf/D of gas. The field is now fully
powered from shore through a 294-km
direct current cable from the Lista field.
BP Norway (35.9%) is the operator,
partnered with Hess Norge (64.1%).
Production of 1.5 MMsf/D began
at the Winna Gora gas facility in the
850,000-acre Fences concession of
Polands Permian basin. Polish Oil and
Gas is drilling Mieczewo-1K exploratory
well below 2000 m on the western part
of the concession to test a Rotliegend
structure at 3360 m. Polish O&G (51%)
is the operator in partnership with FX
Energy (49%).
MIDDLE EAST
The Kiyaktysai KN-E-201 well
discovered oil at the Zharkamys West1
Territory in Kazakhstan. The well
encountered a 136-m stacked sand-shale
interval while drilling to an intermediate
casing setting depth of 1408 m. Wireline
logs indicate the interval has 58 m of
nethydrocarbon pay with a continuous
41-m light-oil column and a separate
17-mgas column. Condor Petroleum
(100%) holds the exploration rights
atZharkamys.
Oil was discovered at the Rosa
North IX well in the Meleiha concession
of Egypts Western Desert. The well
encountered a total oil pay of 80 m
in multiple quality sandstones of the
Bahariya, Alam El Bueib, Khatatba, and
Ras Qattara reservoirs, andtest flowed oil
of 43 to 48 API. Eniowns a 56% interest
in the concession through its affiliate
International EgyptianOil Company
(IEOC), in partnership with Lukoil (24%)
and Mitsui(20%).
NORTH AMERICA
McMoRan Exploration set a production
liner at the Blackbeard West-2 ultradeep
well on Ship Shoal Block 188 in the Gulf
of Mexico. The well was drilled to a total
depth of 22,574 ft. Initial completion
efforts are targeting 50 net ft of laminated
sands in the Middle Miocene at 24,000 ft.
McMoRan holds a 69.4% working interest
in the block, partnered with EXXI (22.9%)
and Moncrief Offshore (7.7%).
Incremental Oil and Gas spudded the
Aurora 24-21 well in the Florence oil field
in Colorado. The well is designed to target
a seismically defined anomaly. The field is
100% owned by Incremental.
SOUTH AMERICA
The PetroCarabobo joint venture in
the Orinoco belt of Venezuela produced
its first heavy oil from well CGO-0005,
which is now flowing at about 350BOPD.
The well is projected to eventually yield
400,000 B/D of 8 API oil, with an
upgrader projected to yield 16 API oil.
The venture is controlled by Petroleo
De Venezuela (60%) in partnership with
Repsol YPF (11%), Petronas (11%), ONGC
Videsh (11%), Indian Oil (3.5%), and Oil
India (3.5%).
The Las Maracas-7 well in the Los
Ocarros block of Colombias Llanos
basin is now producing from the Basal
Gacheta sand formation. The well struck
potential net oil pay in the Mirador, Main
Gacheta, and Basal Gacheta reservoirs.
The Gacheta sands were production
tested yielding maximum rates of
1,500B/D and 2,050B/D of oil for Main
and Basal, respectively, and the interval
produced 29API oil at a stabilized rate
of 1,049B/D. The operator of the block
is Cepcolsa (50%) in partnership with
Petroamerica Oil (50%).JPT
RegionalUpdateApril.indd 10 3/14/13 12:59 PM
COMPANY NEWS
12 JPT APRIL 2013
MERGERS AND ACQUISITIONS
Newpark Resources bought Alliance
Drilling Fluids, a provider of drilling
fluids, proppants, and related services, for
USD53million. Alliances core business
is in the Permian Basin and Eagle Ford
formation of Texas. Alliance and Newpark
are both focused on water-based fluids and
engineering services.
Genel Energy bought the remaining
49% participating interest in the Miran
exploration block in Iraqi Kurdistan from
Heritage Oil for USD 294 million. Genel is
now the operator of the Miran block with
a 100% interest. The block contains two
large contiguous structures, Miran East and
MiranWest.
CGG bought Fugros Geoscience
division, and will now be organized around
three divisions: equipment, acquisition and
geology, and geophysics and reservoirs.
The USD-1.3-billion transaction also creates
a joint venture, Seabed Geosolutions,
which is owned by Fugro (60%) and
CGG (40%); a multiclient agreement for
CGG to sell Fugros existing 3D data;
and a global strategic mutual preferred-
supplieragreement.
Pioneer Natural Resources sold a 40%
stake in its 207,000 net lease acres in
Texas Wolfcamp shale to Sinochem Group
for USD 1.2 billion. Pioneer will remain
the operator (60%) and will conduct all
leasing, drilling, completion, operations,
and marketing activities in the joint interest
area. The companies plan to drill 86
horizontal wells this year, 120 next year,
and165 in 2015.
Marubeni bought a 49% interest in
Gulfstar One from Williams Partners for
USD1billion. Gulfstar One is engaged
in constructing a floating production
platform at the Tubular Bells field in
the Gulf of Mexico. The platform has a
designed capacity of 60,000 B/D of oil and
200MMscf/D of gas, and will be installed
in Block 768 of the Mississippi Canyon in
water depths of 4,300 ft.
An unnamed South Korean firm will
pay 50% (USD 150 million) to create a
joint venture with Bellatrix Exploration in
west-central Alberta, Canada, to develop
83 Cardium formation wells. The foreign
partner will earn 33% of Bellatrixs working
interest until well payout, when it will
receive a 20%share.
Seadrill paid USD 1.20 per share for
82million shares in the private placement
of Archer, amounting to USD 98.4 million.
The company will also receive 2.8 million
shares in Archer as commission for
underwriting the transaction. After the deal
closes, Seadrill will own 231 million shares
(39.9%) in Archer.
COMPANY MOVES
Gail India commissioned the 5-MTPA
Dabhol liquefied natural gas terminal at
Ratnagiri, Maharashtra. The terminal is
operated by Ratnagiri Gas and Power,
which is a joint venture between operator
Gail and the National Thermal Power
Corporation, with minority interests held
by the Maharashtra State Electricity Board
and financial institutions.
TAM International opened a new
11,500-ft
2
district office and shop
in Midland, Texas. The facility offers
drilling,completions, and workover
tools and services serving the Permian
Basinregion.
GE Oil and Gas opened a new facility
near Basra City, Iraq, serving the North
Rumalia region. It will provide pressure-
control equipment, installation and
maintenance, testing, inspections, repair,
and storage. Also, GE and GLS Holding
are building a new subsea-equipment
manufacturing facility in the Soyo province
of Zaire, Angola. The initial investment is
USD 175 million.
Momentive Specialty Chemicals
Oilfield Technology Group opened a new
transload facility in Fort Collins, Colorado,
to provide resin-coated proppants to
fracturing service providers. The facility will
serve the Denver-Julesburg basin and the
Powder River basin.
Production management and accounting
service company Merrick established
Merrick International Canada, and opened
an office in Calgary, Alberta.
CONTRACTS
Chinas Ministry of Land and Resources
awarded exploration rights for 19 shale
gas blocks to 16 companies. The winning
companies are six state-owned companies,
eight provincially backed companies, and
two private firms.
Tullow extended its contract to keep
Seadrills West Leo ultradeepwater
semisubmersible for 2 more years in
west Africa. The potential revenue for the
extension is USD 450 million based on a
97% use rate with a performance bonus
agreement, bringing the contract value to
USD 1.13 billion.
Statoil awarded a USD-1.1-billion
contract to Hyundai Heavy Industries
to install a topside facility on the Aasta
Hansteen spar hull, which Hyundai is also
building. The 21,000-ton topside facility is
capable of producing 23 MMcm. The field is
300 km offshore Norway.
Gazprom Neft awarded an
USD-879-million contract to Samsung
Engineering for engineering, procurement,
and construction of a gas-separation plant
in southeast Iraq on a lump-sum turnkey
basis. Samsung will build the 200-MMscf/D
central processing facility, and utilities and
offsites facility near the Badra oil field in
Wasit province.
Jurong Shipyard awarded a
USD-160-million contract to ABB for
design, supply, installation supervision,
testing, and commissioning of the main
electrical systems for seven drillships.
The vessels will be used in the pre-salt
fields ofthe ultradeepwaters offshore
Brazil. Theyare the first in a series of high-
efficiency drillships designed and built by
Estaleiro Jurong Aracruz at its shipyard
in Espiritu Santo, Brazil. The ships will be
delivered to Sete Brazil and chartered
toPetrobras.
Shell awarded a USD-135-million
contract to Subsea 7 as part of Shells Fram
development in the central North Sea.
The work scope covers the engineering,
procurement, fabrication, and installation of
an in-field pipeline bundle, with integrated
manifolds and tie-in structures.
Statoil awarded a USD-117-million
engineering, procurement, construction,
installation, and commissioning contract
to Aker Solutions. The work will tie in gas
production from the Dagny platform, about
20 miles northwest of Sleipner East, to the
Sleipner A platform.JPT
CompanyNewsApril.indd 12 3/14/13 1:00 PM
INNOVATION
14 JPT APRIL 2013
The Intelligence Behind
Intelligent Completions
Egbert Imomoh, 2013 SPE President
There are many definitions of intelligent completions, but the
one I find most apt is a well completion that enables remote
monitoring and control of the well inflow without physical inter-
vention to optimize production and reservoir management.
Before the late 1980s, when intelligent completions were
introduced into our industry, data collection or well interven-
tion had to be carried out by introducing tools from the surface
using wireline or coiled tubing. However, a number of factors
drove us to seek more cost-effective ways of obtaining well data and downhole inter-
vention without shutting down production.
As we developed the capacity to drill in increasingly deep water, opening up new
reserves, we had to find more innovative, cost-effective means of well intervention.
The high upfront costs and the loss of revenue resulting from shutting these wells in
just to obtain well data had a huge impact on the revenue stream of companies.
Another factor that encouraged application of intelligent completions is that,
during penetration of many stacked reservoirs, operators saw that it was cost-effective
to complete as many of the horizons as possible in one go but to retain the flexibility to
manage which zones could be brought into production without incurring the expense
of a rig or rigless intervention. In addition, many authorities were becoming more flex-
ible in allowing commingling of production from different reservoirs.
The opportunities encouraged many service companies to develop new types of
completions, either alone or in collaboration with other companies. The equipment al-
ready existed, but needed to be repackaged for the new application that was required
(Docherty 2001). In designing intelligent completions, oilfield operators specified a
number of requirements relating to reliability, ability to segregate inflow, minimal im-
pact on existing well equipment, and the ability to integrate with currenttechnology.
Over the years, new technologies have enabled real-time surveillance of wells and
real-time control of inflow of reservoir fluids or the injection into reservoirs for pres-
sure maintenance. Surveillance is achieved using modern electronic devices, while
control is managed by the installation of innovative downhole equipment (a valve or
sleeve) that is controlled using electric, hydraulic, or electrohydraulic signals.
Operators all over the world have applied the technology to provide services rang-
ing from the control of gas breakthrough to selecting which part of long horizontal
completions can be brought into production, to managing water injection for pressure
maintenance. The use of intelligent completions has even been extended to shallow-
well operations, where economics is the driver. Similar to deep-well operations, the
cost of well intervention and the attendant loss of production have encouraged opera-
tors to install intelligent completions when such wells are initially completed. The use
of intelligent completions also obviates the need for direct human intervention with
possible attendant safety risks.
As with most new technologies, the first intelligent completions were basic, and
wells required only low-density transmission for flow, temperature, and pressure
data. However, over time, data requirements increased, and this has led to greater
SPE BOARD OF DIRECTORS
OFFICERS
2013 President
Egbert Imomoh, Afren
2012 President
Ganesh Thakur,
Chevron Energy Technology Company
2014 President
Jeff Spath, Schlumberger
Vice President Finance
Janeen Judah, Chevron
REGION DIRECTORS
AFRICA
Anthony Ogunkoya,
TBFF Upstream Oil and Gas Consulting.
CANADA
Keith MacLeod, Sproule Associates
EASTERN NORTH AMERICA
John Cramer, Superior Well Services
GULF COAST NORTH AMERICA
Bryant Mueller, Aclaro Softworks
MID-CONTINENT NORTH AMERICA
Mohan Kelkar, University of Tulsa
MIDDLE EAST
Fareed Abdulla, Abu Dhabi Co. Onshore Oil Opn
NORTH SEA
Lon Beugelsdijk, Shell International E&P
NORTHERN ASIA PACIFIC
Ron Morris, Roc Oil (Bohai)/Roc Oil (China)
ROCKY MOUNTAIN NORTH AMERICA
Mike Eberhard, Anadarko Petroleum
RUSSIA AND THE CASPIAN
Andrey Gladkov, Modeltech
SOUTH AMERICA AND CARIBBEAN
Nestor Saavedra, EcopetrolICP
SOUTH, CENTRAL, AND EAST EUROPE
Maurizio Rampoldi, Eni E&P
SOUTHERN ASIA PACIFIC
John Boardman, RISC
SOUTHWESTERN NORTH AMERICA
Peter Schrenkel, Vision Natural Resources
WESTERN NORTH AMERICA
Tom Walsh, Petrotechnical Resources of Alaska
TECHNICAL DIRECTORS
DRILLING AND COMPLETIONS
Joseph Ayoub, Schlumberger
HEALTH, SAFETY, SECURITY, ENVIRONMENT,
AND SOCIAL RESPONSIBILITY
Roland Moreau, ExxonMobil Upstream
Research Company
MANAGEMENT AND INFORMATION
Cindy Reece, ExxonMobil Technical Computing
Company
PRODUCTION AND OPERATIONS
Shauna Noonan, ConocoPhillips
PROJECTS, FACILITIES, AND CONSTRUCTION
John Walsh, GHD
RESERVOIR DESCRIPTION AND DYNAMICS
Olivier Houz, KAPPA Engineering
AT-LARGE DIRECTORS
Sudhir Vasudeva, Oil & Natural Gas Corporation
Mohammed Al-Qahtani, Saudi Aramco
To contact the SPE President, email president@spe.org.
(Continued on page 141)
PresColumnApril.indd 14 3/14/13 1:00 PM
COMMENTS
16 JPT APRIL 2013
Awarding Excellence
andInnovation
John Donnelly, JPT Editor
The oil and gas industry, like many industries, awards its best
and brightest companies, technologies, and individuals with
annual or occasional awards, calling attention to excellence
and innovation. Among the most prestigious are awards hand-
ed out at the International Petroleum Technology Conference
(IPTC), held in late March in Beijing, and the upcoming Off-
shore Technology Conference (OTC) in May.
IPTC singles out companies and major projects with its
Excellence in Project Integration Award. The honor highlights projects that have dem-
onstrated distinction throughout the entire value chain, and are at least USD 500 mil-
lion equivalent in value. Past winners have included both international and national
oil companies. Taken into account are projects that exemplify strong teamwork, solid
geoscience knowledge, reservoir and production engineering expertise, outstanding
facilities engineering practices, and a strong commitment to health, safety, and the
environment and advocate innovative and people-oriented human resource policies
and community programs.
This year, 16 nominations were submitted representing projects in 12 countries.
The IPTC Awards Committee selected three as finalists:
Efficient Development of the Large Tight Sandstone Gas Field in SuligeChina
National Petroleum Corp. and PetroChina Changqing Oilfield Co.
Jubilee Project in GhanaTullow Ghana Ltd.
Pazflor, a Technological Breakthrough in Deep Offshore DevelopmentsTotal
Full coverage of the conference and the projects will be included in the May issue
of JPT.
The OTC honors companies, individuals, and new technologies. At the annual
OTC Dinner in early May, the 2013 Distinguished Achievement Awards will be pre-
sented to Ken Arnold, senior technical advisor at Worley Parsons, who will receive the
award for individual achievement, and to Total Exploration and Production, for corpo-
rate achievement. The Heritage Award will be presented to E. Dendy Sloan Jr., profes-
sor emeritus of Colorado School of Mines, and James Brill, professor emeritus at the
University of Tulsa.
Arnold, who is a member of the editorial advisory board of SPEs Oil and Gas
Facilities magazine, is being recognized for his outstanding leadership and exten-
sive contributions to the E&P industry. He has played a key role in the offshore indus-
trys focus on safety through the development of recommended practices for offshore
design and safety management, and has been instrumental in helping establish oilfield
facilities engineering as a recognized technical engineering specialty.
Total is being honored for the Pazflor deep offshore development in Angola,
which has been producing for 18 months and is one of the worlds largest and most
sophisticated deep offshore developments to date. Pazflor represented the first use
of subsea separation and pumping on a wide scale and included construction of the
worlds largest FPSO.
OTCs annual Spotlight on New Technology Awards recognize innovative technol-
ogies that are advancing the industry into the future. A full list of the winners and their
technologies is contained in this issue.JPT
EDITORIAL COMMITTEE
Syed AliChairperson, Technical Advisor,
Schlumberger
Francisco J. Alhanati, Director, Exploration &
Production, C-FER Technologies
Mohammed Azeemuddin, Research Scientist-Rock
Mechanics, Chevron
Baojun Bai, Associate Professor/Graduate Coordinate
Petroleum Engineering, Missouri University of Science
and Technology
Ian G. Ball, Technical Director, Intecsea (UK)
Luciane Bonet, Senior Reservoir Engineer,
Petrobras America
Paul D. Cameron, Senior Well Intervention Discipline
Advisor, BP plc
Robert B. Carpenter, Sr. AdvisorCementing,
Chevron
Simon Chipperfield, Team Leader Central Gas Team/
Gas Exploitation, Eastern Australia Development,
Santos
Gerald R. Coulter, President,
Coulter Energy International
Martin V. Crick, Chief Petroleum Engineer,
Tullow Oil plc
Jose C. Cunha, Drilling Manager, Ecopetrol America.
Alexandre Emerick, Petroleum Engineer,
Petrobras Research Center
Martyn J. Fear, General Manager Drilling &
Completions,Husky Energy
Niall Fleming, Leading Advisor Well Productivity &
Stimulation, Statoil
Emmanuel Garland, Special Advisor to the
HSE Vice President, Total
A.G. Guzman-Garcia, Engineer Advisor,
ExxonMobil
Robert Harrison, Global Technical Head of Reservoir
Engineering, Senergy Oil & Gas
Delores J. Hinkle, Director, Corporate Reserves,
Marathon
George W. Hobbs, Director, Strategic Chemistry
John Hudson, Senior Production Engineer, Shell
Gerd Kleemeyer, Head Integrated Geophysical
Services, Shell Global Solutions International BV
Gregory Kubala, Global Chemistry Metier Manager,
Schlumberger
Jesse C. Lee, Chemistry Technology Manager,
Schlumberger
Cam Matthews, Director, New Technology Ventures,
C-FER Technologies
Casey McDonough, Drilling Engineer,
Chesapeake Energy
Stephane Menand, Managing Director,
DrillScan US
John Misselbrook, Senior Advisor for Coiled Tubing,
Baker Hughes
Badrul H Mohamed Jan, Lecturer/Researcher,
University of Malaya
Alvaro F. Negrao, Senior Drilling Advisor,
Woodside Energy (USA)
Shauna G. Noonan, Staff Production Engineer,
ConocoPhillips
Karen E. Olson, Completion Expert,
Southwestern Energy
Michael L. Payne, Senior Advisor, BP plc
Mauricio P. Rebelo, Technical Services Manager,
Petrobras America
John D. Rogers, Vice President of Operations,
Fusion Petroleum Technologies
Jon Ruszka, Drilling Manager,
Baker Hughes (Africa Region)
Hisham N. Saadawi, VP Engineering,
ADCO (Abu Dhabi Co. Onshore Oil Opn.)
Jacques B. Salies, Drilling Manager,
Queiroz Galvo E&P
Helio M. Santos, President, Safekick
Otto L. Santos, Snior Consultor, Petrobras
Luigi A Saputelli, Senior Production Modeling
Advisor, Hess Corporation
Brian Skeels, Emerging Technologies Manager,
FMC Technologies
Sally A. Thomas, Principal Engineer, Production
Technology, ConocoPhillips
Win Thornton Global Projects Organization,
BP plc
Erik Vikane Manager Petroleum Technology, Statoil
Scott Wilson, Senior Vice President,
Ryder Scott Company
To contact JPTs editor, email jdonnelly@spe.org.
CommentsApril.indd 16 3/18/13 8:21 AM
GUEST EDITORIAL
18 JPT APRIL 2013
Pradeep Anand
is president of
Houston, Texas-
based Seeta
Resources (www.
seeta.com), a
business consulting
firm he founded in 1994. He also holds
an adjunct faculty position at Rice
Universitys Jones Graduate School of
Business, where he teaches Marketing
Management in the Energy Industry,
in its MBA program. Previously, Anand
was vice president, marketing, at
Landmark Graphics; manager, North
American Operations, at a division of
Baker Hughes; and the first marketing
and business development manager for
LWD/MWD at NL Sperry Sun. In 2009,
Anand was co-chairman of the SPE
Emerging Technology Workshop on
Delivering and Using New Technology
to Make Money in E&P.
Anand received a BS degree
in metallurgical engineering from
the Indian Institute of Technology,
Bombay, where he received a
Distinguished Service Award in 2001,
and an MBA from the University of
Houston. He serves on the advisory
boards of the University of Houstons
College of Technology and India
Studies program. He is the author of
the novel An Indian in Cowboy Country.
The global population is forecast to grow to about 10 billion people by the middle of
this century. While this population growth will generate a growth in global GDP, it will
also create significant stresses on resources needed to feed the population and fuel its
economic growth, with the demand for food-water-energy creating a stress nexus.
The Food and Agriculture Organization of the United Nations predicts that by
2030 demand for food will increase by 50%. The International Food Policy Research
Institute expects demand for water to increase by 30%. And the International Energy
Agency forecasts that energy demand will surge by 50%, despite projected progress
in improving consumption efficiencies.
Alternative fuels are forecast to find ready markets and increase their percentage
of the energy mix, yet oil and gas are still expected to deliver about 60% of the energy
needs of the future. For example, in 2040 the exploration and production (E&P) sec-
tor is projected to be faced with delivering about 30% more oil production liquids,
about 110 million b/d of oil equivalent, than it does today. The E&P industry is expect-
ed to find and develop new types of resources through innovations in technology used
in deep water, the Arctic, oil sands, tight oil, unconventional gas, biofuels, and other
areas. However, two major issues will mute and limit that success:
1. Manpower. As demand increases, the need for manpower increases and
manpower availability decreases. Simultaneously, experienced people will
retire and exit the industry in record numbers.
2. Data and knowledge. Our current knowledge of existing reservoirs and our
practices are based on partial data. It is a truism in the business world that
80% of business-relevant information originates in unstructured forms. In
the E&P industry, where natural data cannot be ordered and constricted to
the confines of manmade databases, the percentage of unstructured data
can be substantially higher.
In the domain of criminal justice, The Innocence Project has shown that par-
tial data can lead to partial truths, in some cases leading to incarceration of innocent
people. In many of those cases, DNA evidence not considered in earlier jury trials has
exonerated innocent people who spent decades in prisons. Partial data can lead to
partial truths.
The E&P industry has had success working with partial data and partial truths
but it is imperative that it work with more and better data, or Big Data, to get clos-
er to the whole truth, and to ensure greater success so vital to meet projected future
demand of a growing global population.
Both challenges mentioned above could be met by focusing attention on creating
a unified data store that is a ready platform to apply computational algorithms and
analytics to extract patterns from both structured and unstructured data. These pat-
terns can then be used to create models with forecasting, anticipatory, or predictive
capabilities that reduce the cones of uncertainty or increase the probabilities of suc-
cess of actions in the E&P industry.
Why patterns? The human brain is a pattern-recognition organism. Our brains
create meaning from patterns we see or at least think we see in nature. Humans,
Big Data Is a Big Deal
Pradeep Anand, President, Seeta Resources
GuestEdApril.indd 18 3/15/13 8:36 AM
20 JPT APRIL 2013
GUEST EDITORIAL
especially in the high-risk E&P indus-
try, are uneasy with chance, let alone
chaos, and have a tendency to see pat-
terns everywhere. Patterns are important
when making decisions and judgments,
and in acquiringknowledge.
Often, patterns are real; sometimes
they are chance manifestations. Howev-
er, it can be better to see patterns where
none exist than to miss them when they
do exist. This is especially true in the
area of safety. Throughout human his-
tory, our ability to recognize patterns
has helped us to survive and grow into a
moderncivilization.
This basic human facet of pattern
recognition has been used extensively in
E&P to drive decisions. Graphs and logs
are depictions that make visual pattern
recognition easier. About 25 years ago,
computing technologies enabled the cre-
ation of 3D seismic interpretation visu-
alization systems, where palettes of col-
ors were used to depict values of seismic
frequencies. The human eye and brain
could discern subtle changes in hues
that escaped the analytical left brain, to
reach more superior reservoir exploita-
tion conclusions. That 3D visualization
also brought the unseen geologic world
into the world of human perception by
replicating the unseen in familiar forms
and patterns that we see on the surface
of our planet.
These visual pattern recognition
methods have an underlayer of science,
technology, engineering, and mathemat-
ics (STEM) that applies reason and logic
to data. When this STEM layer is applied
to partial data, a dire consequence can
be limited patterns, which may then lead
to myopic perceptions and distortions
of the truth. By expanding the scope of
data, existing and new STEM tools can
be applied over larger datasets, creating
and allowing the discovery of better pat-
terns and perceptions that are closer to
the whole truth (Fig. 1).
When libraries of patterns have been
generated, predictive models can be cre-
ated. After testing for false positives
and false negatives, these models can be
applied to optimize rewards and to antic-
ipate risky situations (e.g., where safety
is compromised). Over time, an arsenal
of patterns and models, across all areas
of E&P activity, can be built to create
a much-needed foundation for the next
generation of technologists to build inno-
vative technologies that can meet future
demand for hydrocarbons. This assem-
blage of patterns and models would par-
tially compensate for the retirement of
deep experience from the industry. After
all, good experience is an agglomeration
and learning of human pattern recogni-
tion of the highest order.
Many farsighted companies in the
E&P industry have invested in business
intelligence, analytics, and informat-
ics talent at their organizations. These
new resources are charged with dis-
covering new routes in uncharted seas
and oceans. However, they are working
with partial data, which can deliver only
partial truths that may not help in dis-
covering new continents of knowledge
and insight. The E&P industry needs to
embrace both structured and unstruc-
tured data, discover new perspectives of
reservoirs, and invent new processes to
drill, complete, and produce from them.
We should be seeking the whole truth
that, in all its complexity, lies buried in
the data.
So far, pattern seekers and model
builders have been challenged by the
immense velocity, volume, and variety
of data the industry produces and stores.
They have been limited by the availabil-
ity of a unified data store, a pattern rec-
ognition platform that not only com-
bines structured and unstructured data
but also addresses the varying complex-
ity of data. Recent technologies have
made this unifying pattern recognition
platform a reality. It has been created in
many industries with the following steps:
1. Choose technologies that have
been used successfully in other
industries, such as open source
components for distributed file
storage systems andanalytics.
2. Though the repositories carry
the source data, mnemonic
normalization and unit
harmonization of collected data
are needed for analysis and cross-
comparison. This will create an
environment for analytics.
3. Extract metadata and apply
analytics for pattern extraction to
enrich metadata.
Fig. 1By expanding the scope of data, existing and new STEM tools can be
applied over larger datasets.
STEM Tools
Patterns
Perceptions
All
Data
Partial
Partial
Whole
T
o
d
a
y

21 JPT APRIL 2013
4. Create models with discovered
patterns that guide and drive
better decisions.
So, how do we get started to real-
ize the immense value embedded in Big
Data? Different firms have different risk
thresholds for adopting new technolo-
gies. To pick their first Big Data proj-
ects, firms might consider the following
twodimensions:
1. The probability of a bad decision
in a domain. A decision maker
has to deal with the three Vs of
decisionsvariety of decisions
being made, volume of decisions,
and velocity of decisions.
2. The magnitude and cost of bad or
untimely decisions in a domain
ofinterest.
Operators, asset owners, and oil-
field services companies could apply
these two dimensions in seeking proj-
ects to use recent but proven unify-
ing pattern recognition platform tech-
nologies to improve critical facets of
their businessestechnical, operation-
al, and business. The combination of
technologies could be a game chang-
er. Closer to home, it can significant-
ly improve the competitive advantage
of firms in the E&P industry. It can be
applied to improve safety, production,
success rates, performance, operations,
innovation, customer intimacy, docu-
ment and records management, and a
host of other business focuses that suf-
fer from the ill effects of decisions made
with partial data.
For starters, Big Data solutions can
be used to simply organize both struc-
tured and unstructured data to provide
simple static views of data and infor-
mation that were hitherto unavailable
because of their disparate, inaccessible
distribution. The next step up would
be to create a unified data store that is
a pattern recognition platform, which
provides deeper descriptive analytics
for better, timely decisions. The third
step would be to offer real-time, for-
ward-looking insights, with statistical
and scientific bounds.
There is no doubt that the ability
to create pattern recognition platforms
on unified data stores in order to create
new models for better, faster decisions
will help the next generation of E&P pro-
fessionals by accelerating their acquisi-
tion of professional insights. This will
go a long way in helping the indus-
try overcome the challenges of satisfy-
ing the growing global demand for oil
andgas.JPT
TECHNOLOGY APPLICATIONS
22 JPT APRIL 2013
Slimhole Measurement
While Drilling
Delivering real-time information while
drilling is critical in land, extended-
reach, and deepwater wells. Schlum-
bergers DigiScope slimhole measure-
ment-while-drilling (MWD) service
(Fig.1) provides robust telemetry-while-
drilling measurements to enable a full
suite of real-time data transmissions
from complex bottomhole- assembly
(BHA) designs. The strong signal trans-
mits high-quality real-time data to the
surface, enabling real-time reservoir
description and geosteering faster than
traditional MWD services. The high-
speed telemetry service provides high-
resolution petrophysical and reservoir
data at bit rates up to 36 b/sec while mini-
mizing rate-of-penetration (ROP) restric-
tion. A two-stage turbine generates high
power, allowing the system to run the
companys complete slimhole logging-
while-drilling (LWD) offering simultane-
ously. This high-power capability also
provides flexibility when combining mul-
tiple LWD tools in the BHA above and
below the new slimhole MWD tool to bet-
ter achieve formation- evaluation objec-
tives while acquiring wellbore surveys
and azimuthal gamma ray, internal and
annular pressure (including pumps-off
pressure measurement), and shock and
vibration data. This service is the first
to apply a unique modulation algorithm
called smooth phase-shift keying (SPSK)
for communicating across great distanc-
es. The tools modulator electronics used
to support SPSK allows the modulator
to maintain high resolution and deliv-
er a wealth of data points at high ROP.
This powerful signal strength results in
acquiring more data faster in the most
challenging applications.
For additional information, visit
www.slb.com/DigiScope.
Drilling-Control System
Integrated Drilling Equipment Compa-
ny launched its second-generation Cen-
turion drilling-control system (Fig. 2).
The system was installed on a new,
1,500-hp Sparta rig. The system uses
an open-architecture software platform
to put real-time information and con-
trol in the hands of the drilling contrac-
tor, operator, and service companies.
The open-architecture software inter-
face enables adding, swapping, and
upgrading controls. Use of this type of
platform enables service companies to
use specialized applications for control
of the autodriller and pressure-control
aspects of rigs. The use of customer-
supplied applications enables optimal
ROP while maintaining zone manage-
ment and personnel and machinery
safety. The system does not use pro-
prietary networks or software. Con-
sequently, customers may spearhead
troubleshooting and the integration
of customized features while retaining
access to the manufacturers technical
support. The package for the Lewis Rig
38 will be fully loaded with all available
options. Options include an integrated
self- aligning satellite system with high-
speed broad band; off-site access to all
systems; full communication systems
with Voice Over Inter-
net Protocol telephone
and talkback service,
Internet Protocol
Dennis Denney, JPT Senior Technology Editor
Fig. 1The Schlumberger DigiScope slimhole MWD service uses a two-stage
turbine to generate high power and is not limited by the number of LWD tools
that can be run simultaneously in the BHA. (Image courtesy of Schlumberger.)
Fig. 2Integrated Drilling Equipment
Companys Centurion drilling-control-
system drillers chair.
TechAppsApril.indd 22 3/14/13 1:03 PM
24 JPT APRIL 2013
Fig. 4Environmental Drilling Solutions Mobile Auger Cuttings Tank.
camera, and digital-video-recording
system; fire and gas detection; real-time
logging; Coriolis meters for real-time
drilling-fluid density, mass-flow, and
temperature and pressure readings; and
off-site data collection and reporting.
www.ide-rig.com.
Microseismic Fracture Matching
Halliburtons Foray 3D-microseismic
fracture-matching-analysis service is
available as a real-time application. A
component of the companys Knoesis
service, the fracture-matching- analysis
service provides a method of fracture
diagnostics that uses microseismic-
event data while they are generated to
develop an image of the fracture net-
work being created in the formation
(Fig. 3). Advanced algorithms continu-
ously analyze the constant flow of new
data and update the fracture-network
image being created with new or higher-
confidence-interval planes as the analyst
monitors the treatment. The informa-
tion generated with this service can be
leveraged to design treatments that pro-
vide increased connected-fracture area.
Fracture treatments that maximize the
connected-fracture area provide great-
er increases in production. Real-time
analysis provides the technical team
with the knowledge needed to make
changes to treatments during the job.
To produce the shale for-
mations, complex frac-
tures are needed. Every
fracturing treatment can
be tailored for maxi-
mum effectiveness. Making changes to
treatments during the job is particularly
important for fracturing treatments in
shale formations.
For additional information, email
knoesis@halliburton.com.
Mobile Auger/Cuttings Tank
Environmental Drilling Solutions has
launched its Mobile Auger Cuttings
Tank (Fig. 4). The tank was designed
to foster a safer,
more efficient
drilling environment. The use of this
tank eliminates the need for personnel,
track hoes, backhoes, or hydraulic buck-
ets to remove cuttings from a tank and
carry them to the cuttings-drying appa-
ratus or trucks for disposal. The tank
volume is 265 bbl. The dual augers are
driven by separate drive systems allow-
ing the augers to be rotated indepen-
dently. Simple auger removal enables
repair or replacement. The hanger sys-
tem is adjustable, and the boom can be
stored during transportation of the cut-
tings tank.
chollier@environmentalds.com.
Fig. 3Induced-fracture-network extent and complexity is easily understood
with Halliburtons Foray 3D microseismic-fracture-analysis service.

25 JPT APRIL 2013
High-Temperature
Progressing-Cavity Pump
Robbins & Myers Energy Services Group
has introduced the Moyno HTD660
downhole pump (Fig. 5). The high-
temperature downhole pumps provide
solutions in high-temperature appli-
cations that previously prevented the
use of downhole progressing- cavity
pumps (PCPs). The PCP has under-
gone extensive research and develop-
ment and thorough in-field testing.
This pump uses metal-to-metal rotor/
stator technology. The stator does not
include elastomer. These PCPs can han-
dle downhole temperatures to 660F.
The closely controlled tolerance of the
metal-to-metal rotor/stator clearance
provides superior performance, and it
produces low levels of vibration that
are comparable to those of conven-
tional downhole PCPs. These PCPs are
suited to handle the hot oil encoun-
tered during thermal-recovery methods
such as steam-assisted gravity drain-
age and cyclic-steam stimulation. This
new model has a pumping-rate capacity
of 1,300-BFPD per 100-rev/min and is
capable of lifting fluid 2,200ft.
esg.marketing@robn.com.
Thermal Technology
for Old Wells
TCTM has developed two technologies
that result in three- to ten-times faster oil
extraction. The first patent, called Bina-
ry Mixtures, extracts oil more rapidly
than other methods and is less expensive
compared with hydraulic- fracturing or
steam-assisted-gravity-drainage meth-
ods. The second patent enables simulta-
neous well treatment and extraction. A
chemical mixture is poured straight into
the borehole, heating the formation by
as much as 400C. Extreme heat makes
the oil less viscous and easier to extract.
In fracture-stimulated wells, the process
tends to remove much of the water, pro-
tecting the productive layer from further
damage, and cleans the skin layer. The
gases and compound traces released into
the Earth and air are all harmless. Envi-
ronmental approval has been granted in
Montana. The 46 test wells were old and
most were already shut in and written
off. In two large shut-in Lukoil wells, an
incremental 1400 t of oil was extracted
in approximately 90 days. After 1 year,
the wells were still producing at higher-
than-original levels.
www.tctm.eu.
Real-Time Monitoring
and Data Acquisition
The DrillASSURE system from Pulse
Structural Monitoring, an Acteon com-
pany, provides enhanced real-time mon-
itoring and data acquisition for well-
head and conductor fatigue. The system
is designed to ensure the structural
integrity of the drilling riser and well-
head system by measuring riser and
riser-stack motion response. Real-
time direct access to the riser-response
data is available without recovering
the instruments, enabling operators to
view and analyze information instant-
ly (Fig. 6). The tool mitigates risk of
damage to the riser and wellhead dur-
ing riser installation and retrieval, and
it tracks fatigue loading on the wellhead
and conductor, thereby extending asset
life. The system also improves under-
standing of the relationship between
riser response and environmental load-
ing, thus increasing confidence and
assurance to maximize drilling uptime.
It also helps drillers reduce unneces-
sary costs and operational downtime by
optimizing maintenance and inspection
activities, and it provides an important
operational safety tool, supplying criti-
cal information needed to improve deci-
sion making.
www.pulse-monitoring.com.
Fig. 6Pulse Structural Monitorings DrillASSURE monitoring and data-
acquisition display.
Fig. 5Moyno
HTD660
downhole
pump.
26 JPT APRIL 2013
RFID Drilling-Circulation Sub
Weatherford has developed its newest
radio-frequency-identification (RFID)
-enabled technology, the RFID drilling-
circulation subassembly (Fig. 7). The
subassembly is a remotely actuated cir-
culation device used to simplify drill-
ing and hole-cleanup operations. The
device uses RFID technology to com-
municate open and close commands.
When an operator needs to move the
subassembly from the closed position to
either of the two open positions (open
and diverted), an RFID tag is dropped
from surface and circulated internal-
ly through the subassembly. The sig-
nal is received by an antenna built into
the tool, and a battery-powered electric
motor operates a hydraulic pump, which
moves the valve to the requested pre-
programmed position. This technolo-
gy transforms conventional methods by
allowing drilling to continue without the
need for ball seats that reduce the inside
diameter, thus making the process more
efficient. This technology is especially
beneficial when multiple tools are run,
in which case the lowermost ball seat
would be a major restriction if ball seats
were used. The RFID- activated circu-
lation valve logs all downhole events
within the subassemblys internal mem-
ory. This information can be download-
ed and accessed in less than an hour.
The RFID drilling-circulation subas-
sembly includes a range of additional
improvements, such as reverse circula-
tion, full-diameter through-bore access,
and robust design that encourages
productivity and reliability for opera-
tors. Additional technology (pressure
cycling) is incorporated in the subas-
sembly design, which enables alterna-
tive communication if pumping an RFID
tag isimpossible.
www.Weatherford.com/RFID.
Antifouling Film
Micanti B.V., a Maritime Technology
Company, has applied its nontoxic anti-
fouling film on the crew vessel Lady
Rasha in Dubai (Fig. 8). Thorn-D is an
adhesive foil with fibers that create a tex-
tured surface. Instead of killing marine
growth, the textured foil prevents it from
attaching to the hull of a ship. Antifoul-
ing foil can replace generally used chemi-
cal coatings on hulls of ships. Compared
with other antifouling products, antifoul-
ing foil is not a chemical-coating product
and does not need regular replacement.
The antifouling foil is a physical barrier
to fouling and has an expected lifetime
of at least 5 years. The antifouling foil is
an easy-to-apply self-adhesive foil that
was developed and produced with Avery
Dennison. The physical nature of the
product ensures environmental friendli-
ness. The antifouling foil has been tested
and continuously improved over several
years in various environments. This test-
ing has been performed in close coop-
eration with various scientific institutes
anduniversities. JPT
www.micanti.com.
Fig. 8Micanti B.V.s Thorn-D antifouling foil applied to the Lady Rasha.
Fig. 7Weatherfords RFID drilling-circulation subassembly.
TECHNOLOGY UPDATE
28 JPT APRIL 2013
Almost a century after its first oil dis-
covery, Argentina is making headlines
again through reports of the potential
of the Vaca Muerta Shale in the Neu-
qun Basinthe most prolific basin in
Argentina (Fig. 1). The existence of Vaca
Muerta, which means dead cow, has
been known for years, but the formation
received little attention until the devel-
opment of shale plays in North Ameri-
ca. Vaca Muerta is virtually a virgin play
with only a few operators involved. Yet
with Argentinas need to increase pro-
duction and reduce dependence on for-
eign oil and gas, change is clearly in
theair.
Expanding Reserves
andProduction
YPF has reported reserves and resourc-
es in the Vaca Muerta formation to be an
estimated 22.8 billion BOE (YPF 2012).
Encouraged by the estimate, YPF and
several other Argentinean operators are
continuing exploration activity to define
the extent and productivity of the Vaca
Muerta, particularly to identify the oil,
wet gas, and dry gas areas. Early results
suggest that Argentina has an oppor-
tunity to replicate the unconventional
resource revolution of the United States
and eventually meet domestic oil and gas
demand through internal production.
Argentina has the potential to
increase oil and gas production by 50%
in 10 years, which would reverse the
negative trend that turned the country
into a net importer in recent years. Yet
this potential does not come easily, as
preliminary estimates indicate the need
for more than 1,000 wells to be drilled
as a first step and 40 additional rigs to
accomplish the goal. Besides the invest-
ment challenge that the Vaca Muerta now
faces, there is an immediate challenge
that needs to be dealt with: What is the
best way to produce Vaca Muerta?
Maximizing Production in
Shale, Other Tight Plays
In North America, the production of oil
and gas from shale has increased great-
ly since 2007, with the development of
several key plays such as the Bakken in
North Dakota, the Barnett and Eagle Ford
in Texas, and the Marcellus in the east-
ern United States, which have helped to
reverse the declining production of the
past few decades. The US and Canadi-
an oil and gas industries were prepared
Openhole, Multistage Fracturing
Holds Big Potential in Argentina
Pedro Lezama, Packers Plus Energy Services
Fig. 1The Neuqun Basin is estimated to be Argentinas most prolific and
holds the potential to be one of the worlds major shale plays.
TechUpdateApril.indd 28 3/14/13 1:04 PM

29 JPT APRIL 2013
for shale development. While these plays
were not new to them, the use of new,
unconventional exploitation technolo-
gies has been critical to success. In par-
ticular, as several studies have proved
and is widely known in the industry, the
challenge in these shale plays is con-
necting productive channels and creat-
ing fractures that will allow proper fluid
movement and endure through the pro-
duction cycles.
Openhole multistage hydraulic
fracturing has been instrumental in
developing oil and gas shale projects,
of which the Bakken play has provided
numerousexamples.
Argentina and YPF have not been
blind to the progress made in the US and
Canadian shale plays. Since 2007, some
of the technologies and methods used
in North America have been successfully
deployed in the Neuqun Basin. Argenti-
na has used technology from the Bakken
and similar shale plays to increase oil and
gas production in the basins tight fields
and formations.
One effective method has been based
on the openhole, multistage fractur-
ing systems used in the Bakken (Fig. 2).
These systems enable continuous pump-
ing operations and use high-performance
openhole packers and ball-activated
fracture ports to reduce operating time;
lower cost; improve health, safety, and
environmental protection capability; and
maximize production. The production
increases because openhole completions
enable direct production from the entire
horizontal pay zone, including natural
fractures and induced fractures, vs. the
conventional plug and perf cemented
casing process, which seals off produc-
tion from natural fractures and other
permeable sources that are not in direct
contact with the perforations (Snyder
and Seale 2011).
Learning From the First
Multistage Completions
From the perspective of components and
system layout, the Argentine comple-
tions have been identical to those in the
major shale and tight plays in Canada
and the US. Packers Plus has installed 30
openhole, multistage fracturing systems
in the Argentine Neuqun Basin. All have
used the companys StackFrac HD sys-
tem, which allows the completion of as
many fracture stages as needed in a sin-
gle system, shortens stage lengths, and
allows longer laterals.
The advantages seen in completing
these wells with openhole, multistage
fracturing technology have included the
elimination of downhole cementing and
perforation operations and their relat-
ed wellsite equipment. The ability to
fracture wells faster has also been ben-
eficial, in light of the limited availabil-
ity of pumping equipment at this point
in the Argentinean plays. When equip-
ment becomes available, several wells
drilled from the same pad or in close
proximity can be fractured as a group in
a short time, thereby maximizing equip-
ment usage.
The challenges and lessons learned
from these initial wells in the Vaca Muer-
ta are central to the development of
future production strategies for the for-
mation. The following lessons point to
best practices in driving such an effort.
Lesson One: For proper fracturing
operations, borehole geometry and con-
dition should be confirmed before instal-
lation of the equipment.
From an operational perspective,
the application of reamer runs to prepare
the wellbore has become standard prac-
tice to ensure successful openhole, mul-
tistage system installation. The reamer
assembly is run to total depth (TD), the
wellbore is circulated for optimum clean-
ing, and a short trip is made from the
casing shoe to bottom. If no tight spots
were encountered in the last trip, the
assembly is pulled out of the hole and the
systeminstalled.
Lesson Two: Ensure that innova-
tions, processes, and procedures are
understood technically, as well as lin-
guistically, by the local workforce. Argen-
tina had already successfully field tested
openhole, multistage fracturing system
technology before the Vaca Muerta came
to prominence. The local industry is
open to innovation that can increase pro-
duction and recovery, as long as people
understand the technical factors.
Lesson Three: Shale plays mean
big returns, but they require substan-
tial investment compared with conven-
tional oil and gas projects. A clear dif-
ference between fracturing operations
in tight formation plays, such as shale
and other settings, is the size of the loca-
tion. The surface areas of convention-
al development locations areas are too
Fig. 2A single isolated stage from an openhole, multistage fracturing system.
TechUpdateApril.indd 29 3/15/13 8:57 AM
TECHNOLOGY UPDATE
30 JPT APRIL 2013
small to host the amount of heavy mate-
rials and related equipment required to
pump and fracture a well, which typical-
ly needs thousands of pounds of prop-
pant as well as hundreds of barrels of
liquid. For unconventional development,
the space required is even greater. Mil-
lions of pounds of proppant are needed,
along with thousands of barrels of fluid.
If space is insufficient, it may be hard to
optimize logistics because equipment is
placed farther from the wellsite.
The Argentine shale play is in its
early stages, and operators have iden-
tified the lack of sufficient proppant,
water, and space on location as the main
obstacles for ensuring optimal develop-
ment. Full realization of the Vaca Muer-
tas potential will require the develop-
ment of several key areas. International
and local investment will be necessary
if the play is to reach the infrastruc-
ture capacity seen in areas such as the
Bakken. In Argentinas tight sandstone
formations, limitations exist but they
are less formidable because the volumes
and tons of material needed are lower.
A Path to the Future for
Argentine Oil and Gas
From a production perspective, results
from the openhole completed wells in the
Neuqun Basin are not publically avail-
able. However, as the experiences from
North American shale plays have proved,
cost reductions and production enhance-
ments with openhole, multistage tech-
nology have been achieved. For example,
Snyder and Seale (2012) demonstrate in
a comparison of production data from
cemented and uncemented wells in the
two core areas of the Pennsylvania Mar-
cellus Shale that cumulative production
from wells completed with the open-
hole, multistage fracturing method was
as much as 84% higher than wells com-
pleted with the cemented liner plug and
perf method. In addition to achieving
better long-term recoveries, openhole,
multistage completions are a safer, more
efficient use of resources and intrinsical-
ly use good fracturing practices, such as
reduced proppant overdisplacement and
immediate flowback (Themig 2010).
An Argentinean operator recent-
ly indicated that its production results
have validated the theory and simula-
tions that show that a vertical well with
four fractures can produce similarly to
a horizontal well with 25 fractures in
comparable fields in the US. One of the
biggest differences favoring the devel-
opment of Vaca Muerta is formation
thickness. Fig. 3 shows that the Vaca
Muerta ranges from 4 to 10 times thicker
than North American shale formations.
In tight sandstone production,
openhole, multistage fracturing has also
shown successful results. Several compa-
nies are planning to use openhole, multi-
stage fracturing in these types of forma-
tions to maximize pumping equipment
usage, reduce the time needed to finish
the well, and increase production.
So what is next? The Vaca Muerta
only recently made a transition from verti-
cal to horizontal wells and the production
results are under evaluation. This tran-
sition poses challenges that the Argen-
tinean industry is trying to resolve, pri-
marily involving the logistics and supply
chain required to capitalize fully on the
benefits of producing the Vaca Muerta.
Whether horizontal or vertical wells are
the best way to produce the Vaca Muer-
ta remains to be seen. Some field results
have shown that wells do not require stim-
ulation to produce, but history and expe-
rience strongly suggest that fracturing is
the most viable method for achieving ade-
quate production across a shale play.
In summary, the Vaca Muerta has
the potential to be a major shale play,
possibly the worlds next big unconven-
tional play, and the technology to accom-
plish it is already on the ground. JPT
References
Snyder, D. and Seale, R. 2012. Comparison
of Production Results from Openhole and
Cemented Multistage Completions in the
Marcellus Shale. Paper SPE 155095-MS pre-
sented at the SPE Americas Unconvention-
al Resources Conference, Pittsburgh, Penn-
sylvania, 57 June. doi: 10.2118/155095-MS.
Snyder, D.J. and Seale, R. 2011. Optimization
of Completions in Unconventional Reser-
voirs for Higher Ultimate Recovery. Paper
SPE 142729-MS presented at the SPE Mid-
dle East Unconventional Gas Conference
and Exhibition, Muscat, Oman, 31 January
2 February. doi: 10.2118/142729-MS.
Themig, D. 2010. Advances in OH Multistage
Fracturing SystemsA Return to Good
Frac-Treatment Practices? J. Pet. Tech, 62
(5): 2629.
YPF. 2012. Form 6-K, Sociedad AnonimaYPF,
8 February.
Fig. 3A comparison of approximate maximum formation thickness between
Vaca Muerta and other shale plays in North America. Source: Americas
Petrogas Oil & Gas Argentina presentation, November 2011.
TechUpdateApril.indd 30 3/15/13 9:51 AM
YOUNG TECHNOLOGY SHOWCASE
32 JPT APRIL 2013
Every drilling engineers dream would
be to deliver more complex well profiles
and smoother, more consistent bore-
holes in less timeideally in a single
runeliminating the need to trip out
of hole. The problem is that conven-
tional positive displacement motors
(PDMs) and rotary steerable systems
(RSS) both exhibit limitations in differ-
ent drillingscenarios.
Industry Challenges and Needs
Downhole motors, for example, are
capable of delivering reliable, very high
dogleg well profiles. However, because
the drillpipe alternates between rotating
and sliding, rates of penetration (ROPs)
are low and hole quality is tortuous,
increasing the potential for stuck pipe.
On the other hand, fully rotating
RSS deliver smoother wellbores at high-
er ROPs than PDMs, reducing drilling
time by as much as 50%. However, the
maximum build rate of a typical RSS is
only 6 to 8 deg/100 ft, and much lower
while drilling soft formations, enlarged
holes, or hard interbedded stringers at
high angles to the wellbore. For well
profiles with high build rates, an RSS
may be used for the vertical and later-
al sections while motors must be used
between the kickoff and landing points.
This requires at least three bottomhole
assemblies (BHAs) and multiple trips
out of hole.
To reduce risks while saving rig
time and costs, drillers would prefer the
hole quality and performance of an RSS
combined with the high dogleg capabil-
ity and steering assurance of a PDM.
To meet operators growing needs
both in unconventional shales and dif-
ficult formations, Schlumberger devel-
oped the PowerDrive Archer high build-
rate RSS. In a single run, the tech-
nology can deliver well profiles pre-
viously possible only with motors. By
improving borehole quality and reduc-
ing tortuosity, it minimizes the risk of
stuck pipe and facilitates the deploy-
ment of casing, sleeves, and comple-
tion equipment (Fig. 1). It can perform
openhole sidetracks and drill deeper
before kickoff than other RSS, maximiz-
ing reservoir exposure and increasing
potentialproduction.
Description, Development,
and Deployment
The high build-rate RSS represents a
breakthrough in steering control. The
RSS has been in use since the late 1990s.
However, it could not deliver the 8-to-
12-deg/100-ft build rates necessary
for typical well profiles in unconven-
tional shale plays. Due initially to rapid
increases in shale drilling, Schlumberg-
er began development in 2007 of a new
RSS aimed at roughly doubling the max-
imum build rate of previous tools.
The new system is a hybrid, com-
bining proven technology from push-
the-bit and point-the-bit RSS (Fig. 2).
In a conventional push-the-bit RSS,
external pads push against the borehole
wall, forcing the bit in the desired direc-
tion. The conventional steerable motor
uses an external bend and the point-
the-bit RSS uses an internal bend that
misaligns the tool relative to the bore-
hole axis. Combining the two systems
provides much higher dogleg capabil-
ity than either one alone. The new RSS
consists of a reliable electronic control
unit and mechanical steering unit. All
external components rotate fully with
Hybrid Rotary Steerable System Delivers
Higher Build Rates and Smoother Holes
Fig. 1By improving borehole quality and reducing tortuosity, the system
minimizes the risk of stuck pipe and facilitates the deployment of casing,
sleeves, and completion equipment.
Deeper
kick off
Increased reservoir exposure
Conventional RSS
Motor
Days
D
e
p
t
h
8 12 15
PowerDrive Archer
YoungTechApril.indd 32 3/18/13 1:25 PM

33 JPT APRIL 2013
the drillstring. In steering mode, elec-
tronics hold a rotary valve geostation-
ary, diverting about 4% to 5% of the
mud flow to a set of internal pads, which
push on the inside of a stabilizer sleeve
instead of the borehole wall. The sleeve
is hinged on a universal joint, which
pivots and points the bit in the desired
direction. The degree of deflection is
controlled by a mechanical strike ring,
and held electronically in a constant
direction for as long as necessary.
Field trials began in 2008 and
underwent two stages of testing. Ini-
tially, field tests focused on delivering
higher build rates than before. How-
ever, subsequent testing was necessary
when it became clear that the hybrid
steering system required specialized
bits and fatigue management for BHAs
Fig. 2The new system is a hybrid, combining proven technology from push-
the-bit and point-the-bit RSS.
Universal joint
acts as pivot point
Rotary valve held geostationary
diverts flow and energizes pad
Internal pads push against
the ID of steering sleeve
Strike ring limits offset
(0.6, 0.8, 0.9, 1)
Tool axis offset from the hole axis
YoungTechApril.indd 33 3/25/13 7:41 AM
YOUNG TECHNOLOGY SHOWCASE
34 JPT APRIL 2013
rotating through much higher doglegs.
The hybrid RSS had to be treated not
simply as a tool, but as an engineered
system of bits and BHA design, or it
could not ensure consistent reliability
and optimum performance in different
formations and hole conditions.
Using the Smith Bits IDEAS inte-
grated drillbit design platform, engi-
neers simulate bit behavior as part of the
systemdrillstring, BHA, and RSS
under a variety of actual drilling condi-
tions. Engineered bits designed for the
high build-rate RSS can also be opti-
mized to improve ROP and durability in
specific applications and fields. To avoid
twisting off or wearing out BHAs as they
rotate through aggressive curves, a finite
element analysis and a detailed strain-
based fatigue study were performed to
predict the run life of all components
under high build rates. A unique fatigue
management system tracks the actual
build rate in real time and compares it
with a fatigue model, thereby reducing
risk and extending BHA life.
During field trials, the new RSS
delivered build rates as high as 17
deg/100 ft in some cases. After 4 years,
6,000 hr and 138,000 ft of drilling,
and testing and validation in 100 wells
in North America, Africa, Asia, and the
Middle East, the system was officially
commercialized in March2011.
Applications and Case Studies
Primary applications for the new RSS
technology include wells that require
higher quality holes along with build
rates comparable to downhole motors,
such as horizontal wells in unconven-
tional reservoirs, and wells that require
greater dogleg assurance than other
RSS can provide, such as openhole side-
tracks or unconsolidated formations. It
can also be used to redesign well profiles
by reducing inclination through unsta-
ble formations in the shallower section
and pushing the kickoff deeper, there-
by minimizing drilling risks and costs.
Because well profiles can be delivered
in a single run, operators also reduce
health, safety, and environmental risks
associated with equipment handling
and multiple trips out of hole.
Case study: Unconventional shale
reservoirs in the US. Cimarex Energy
had drilled four horizontal wells in the
Woodford shale using PDMs. To reduce
wellbore tortuosity and save time, the
operator used the fully rotating, high
build-rate RSS to drill the 8.75-in. curve
with an 8-deg/100-ft dogleg severity and
the 4,353-ft lateral to total depth (TD) in
a single run. Tortuosity reduced by 20%,
ROP increased by 80%, and the com-
pany saved a total of 10 days compared
with motors. An operator in the Eagle
Ford shale increased ROP by 85%. A
Cotton Valley operator reduced drilling
time from 8 to 4 days, and a Marcellus
operator increased ROP by 170%.
Case study: Deepwater field, uncon-
solidated sands in Asia. An operator in
Asia drilling multilateral wells in a deep-
water field with a conventional RSS was
unable to maintain long horizontal well
trajectories in geological drop zones
because of extremely unconsolidated
sands. Directional sidetracks or motors
were necessary to reach TD. Using engi-
neered bits and specially designed BHAs,
the new hybrid RSS successfully drilled
six laterals with complete directional
control within 1 to 2 m of the reservoir
boundary, even at ROPs of 1,000 ft/hr.
The operator saved 4 days and USD 4.5
million. For the first time, the operator
was also able to perform efficient open-
hole sidetracks to target bypassed attic
oil, potentially adding production worth
several million dollars.
Case study: Well profile redesign in
the Middle East. An operator in the
Middle East had planned to kick off from
vertical in the 12.25-in. section. How-
ever, that would require drilling at an
inclination through an unstable zone. By
choosing the high build-rate RSS, drill-
ers redesigned the well to reduce the
angle through the 12.25-in. section, push
the kickoff deeper, and deliver a higher
dogleg in the 8.5-in. section. The oper-
ator drilled the first well at a conser-
vative build rate of 7.6 deg/100 ft for
846 ft, reaching TD in 25.8 drilling hrs.
The second well achieved a more aggres-
sive 11.2 deg/100 ft for 742 ft in the
8.5-in. section, reaching TD in a single
run in 15 hours. Shortening the 8.5-in.
section saved almost 700 ft of liner,
2.5 days of rig time, and approximately
USD125,000.
Case study: Complex well profile off-
shore Thailand. To increase produc-
tion in its Bualuang field, Salamander
Energy needed to drill a complex direc-
tional plan with a longer than usual hori-
zontal section. Because of shallow kick-
offs, high doglegs, and soft formations,
previous wells had used PDMs. However,
torque and drag modeling of the current
profile showed that after 2000 m mea-
sured depth, no slackoff weight would
be available to slide the motor to achieve
the build rate required to hit the tar-
get. To improve hole quality, reduce fric-
tion, and achieve the necessary dogleg
severity, Salamander deployed the new
hybrid RSS with a multifunction logging-
while-drilling tool. Drillers built incli-
nation from 13 to 90 deg while turning
from 124 to 355 deg, landed as planned
1.5 m below the upper reservoir bound-
ary, and drilled to TD in a single run
while increasing ROP by 50%.
Future Plans
The high build-rate RSS drills 8-in. to
8-in. hole. Currently, development and
field testing are under way for tools for
additional hole sizes, each of which have
different requirements.
For more information, please go to
www.slb.com/archer. JPT
YoungTechApril.indd 34 3/15/13 8:42 AM
A grain of sand is surrounded by
alarge polymer coat that grows to
5times its size when put in water.
Thecombination, called self-suspended
proppant, remains suspended in water
for long periods because of its lower
density and volume.
Stephen Rassenfoss, JPT Emerging Technology Editor
In Search of
BIGGER,
STRONGER,
and
LIGHTER
WAYS TO OPEN PATHS FOR OIL PRODUCTION
Proppant.indd 36 3/15/13 6:42 AM
T
heres an old line in the proppant business that
customers want a product that is stronger than
diamonds, lighter than water, and cheaper than dirt.
And they are serious about that.
The rapid shift to unconventional oil exploration
and production has made creating and maintaining better
pathways for hydrocarbon flow a priority. That requires
bigger bits of sand or ceramic, made stronger to maintain
openings longer, and lighter, so it can be pumped further into
formations using less horsepower.
Delivering larger concentrations of bigger proppant
requires viscous fracturing fluids. Some of this can be
described as a return to conventional formulas, but the
biggest category used now in US fracturing is hybridsa
range of options being tried to increase oil yields.
With current methods often leaving more than 90%
of the oil behind in unconventional formations, theres a
powerful motivation to seek out new and improved methods
to ensure greater fracture conductivity.
At the SPE Hydraulic Fracturing Technology Conference
in February the buzz was around a totally different approach
to keeping dense particles suspended in water. Rather than
putting polymer gels in water to make it more viscous, each
bit of sand or ceramic is given a coating that rapidly expands
in water to about 5 times its original size.
The combination, called self-suspending proppant
(SSP), is far less dense than its proppant core, but this is not
like putting on a life jacket. When SSP is added to water, the
result looks like a murky slurry, and feels like water. This is
because SSP behaves differently than untreated proppant.
When SSP is in water, each grain of polymer-coated proppant
expands so it has much greater volume with far less density
than the grain of proppant alone. Because of its properties,
SSP takes up more space in water and also makes the water
appear more viscous. Also, because SSPs density is less than
that of untreated proppantbut still greater than the density
of waterits settling rate is dramatically less than untreated
proppant, said Robert Mahoney, vice president in charge of
research and development at Soane Energy, the chemical
maker developing SSP in partnership with Marathon Oil.
He describes SSP under magnification as looking
like a pile of fish eggs each with a dark spot in the middle
surrounded by a clear layer.
Over the next year Marathon Oil will be testing it on
a series of wells to see if replacing fluid thickened by gels
with individually coated particles will deliver more proppant
into the formation where it can maintain flow pathways for
betterresults.
All the data we have so far is very encouraging,
said Phil Snider, senior technical consultant for Marathon
Oil. What we have found out so far is we can make it
and transport it to a location; get it pumped and get it
in place inthe formation effectively. One positive sign
is little sand iscoming back, and another is the polymer
coating isbreaking into its component chemicals as it is
designedtodo.
Based on early results it might provide a lower-cost
way to deliver more sand or ceramics into a formation
using polymer coatings that in laboratory tests appear to
break down without leaving a residue behind, which could
lowerproduction.
Coating the proppant could reduce or eliminate the
cost of gel used in fluids, the water and horsepower needed
to pump the jobs, and might offer a delivery vehicle for
new treatments, such as slow release of chemicals to fight
scalebuildup.
But all those are secondary measures. Everyone wants
reduced-cost fracs, Mahoney said. But in the end the big
payback is from increased production.
Pumping Possibilities
At the 2011 SPE fracturing conference, when Mark Franki
was asked what was new in fracturing, he said he was once
again able to be particular about the proppant he used to
fracture wells.
Industry supplies of proppant became tight because
the surge in shale exploration transformed the proppant
business. The volume of sand and ceramics used now to prop
open fractures is 15 times what it was in 2005, said Terry
Palisch, director of petroleum engineering atCarbo.
Two years ago sand producers were catching up, but it
took longer for makers of ceramics to build the factories they
needed to meet the demand.
For small operatorsFranki is an engineer for a small
Texas company, Mentano Energyshort supplies meant
taking what was available, even if it meant mixing a variety of
sizes of sand to get enough to do the job. We overlooked a
lot of things that in the past would have been unacceptable,
said Franki.
This magnified image shows a grain of self-suspending
proppant when dry. Care must be taken to ensure it is not
in contact with moisture prior to use in a well treatment.
37 JPT APRIL 2013
PROPPANT ADVANCES
38 JPT APRIL 2013
Now supplies are more than adequate and with more
competition companies are rolling out new options promising
better performance to maintain their share of a market
where greater oil production is the measure of success.
Back in 2011, Mentano was also part of industry shift
to exploring for oil in a range of formations once ignored
because the quality of the reservoir is so poor. The number
of rigs in the US targeting oil has since surged from 808 in
February 2011 to 1,414 in March 2013, while those after gas
dropped from 911 to 407 in that time frame, according to the
Baker Hughes Rotary Rig Count.
An analysis of more than 3,000 wells in the oil-
rich Bakken formation by Baker Hughes underlined the
importance of the fluids and proppants used in fracturing.
While the top variable when comparing well productivity was
the location, just behind were the volume of fracturing fluid
used, the use of coarse (larger-sized) proppant, and the
concentration of proppant.
To deliver the heavier load needed for producing oil, and
the gas, whose flow complicates the conductivity equation,
the makeup of the fracturing fluids has moved to mixes with
cross-linked gels added to prevent the heavier proppant
from settling in transit.
The changes are evident in the disclosures on the
FracFocus website, which was created to reveal what things
are going into wells during fracturing. An analysis of that
data by an energy data firm, PacWest Consulting, showed
that the number of slickwater fracturesmixes of water
and a friction reducer, known as slickwater fractureswent
down from 46% of all the fractures in early 2011 to 24% in
the third quarter of 2012.
In third-quarter 2012, the remaining fracturing jobs
were a mixture of those considered conventional (34%) and
others that combine old and new approaches, classified by
petroleum engineers at PacWest as hybric fractures (around
40%). Using water with a minimum of additives for fracturing
generally creates longer, planar fractures and saves on the
cost of chemicals and pumping. Conventional fluids are said
to transport sand more effectively but create shorter fracs
that finger into thereservoir.
There has been nearly a decade of variations on the
hybridtheme, with papers going back to one in 2004 by Mukul
Sharma,a professor at The University of Texas at Austin.
The most recent variation, presented at the conference
by Sahil Malhotra, a graduate student with Sharma, made a
case for alternate slug fracturing. It uses water to transport
Limited space on a drilling pad in northern New Mexico prompted Energen Resources to turn to ultralightweight
proppant. It reduced the number of transports needed to deliver the proppant to onecompared to 15 if sand had
beenused.
PROPPANT ADVANCES
40 JPT APRIL 2013
proppant followed by gelled fluids to push it in, and the steps
are repeated.
The benefits claimed were a good summary of what the
industry is seeking: longer fracture lengths, lower pumping
power, better control of fluid leaking off into the formation,
and reducing the risk the proppant will not get into the
formation due to screenout at the wellbore.
Based on experience, fracturing methods are evolving.
Darren Schmidt, a technical advisor at Statoil, said many
operators are making fracturing jobs more complex to make
them more effective.
A lot of things are being tried. The FracFocus database
shows a spate of slickwater fracturing jobs in the Bakken
this year8% of those reported in the fall of 2012 compared
to 1% during the same quarter the year beforein a basin
where 55% of the fractures are conventional.
It is hard to settle an argument about what works in the
ground because little testing has been done with rock from
the formations to see what happens after the fracture.
In the past year lab tests were conducted in an industry
study on samples of rock gathered from a test well in the
Bakken, using various proppants and fluids. The goal was to
see how various combinations of the three are likely to affect
the flow of hydrocarbons in tests simulating underground
pressures and temperatures.
The study, by the North Dakota Energy and
Environment Research Center, with funding from
government and industry sources, looked at variables
ranging from how different fluids affect rock hardness to
whether ceramic proppants are likely to outperform sand.
It found water could significantly reduce the strength
of reservoir rockthe average loss was around 50%
which could allow the weight of the rock above the wellbore
to embed the proppant, blocking hydrocarbon flow. Gelled
diesel had the least effect on the rock, but it is out of favor
as the industry seeks out environmentally benign fluids for
drilling and completingwells.
The tests simulated the effect of the fluids and
pressure on proppants. It found the strength of the ceramics
were least affected by the fluids tested. Crush tests showed
sand was more likely to break apart, and the fine particles
created that way could reduce the conductivity of fractures.
The trucks clustered around the Energen Resources well are nitrogen transports. By using proppant which is so light it
can float in water, Halliburton was able reduce the pumping pressure for the nitrogen foam job 25 bbl per minute, from
50 bbl per minute if sand was used.
41 JPT APRIL 2013
Ceramic proppant performed best in conductivity testing,
followed by resin-coated sand.
There are orders of magnitude difference in the
conductivity under stress of sand and ceramic proppants,
said Schmidt, who delivered a paper on the study.
Proppant Problem Solving
Proppant makers are bringing out new products that are
lighter, stronger, do more, and come in a differentshape.
For extreme offshore wells that are in water depths
of more than 30,000 ft, Carbo has tested an ultrastrong
bauxite ceramic capable of withstanding up to 20,000 psi of
closing pressure in formations, such as the Lower Tertiary in
the deep waters of the Gulf of Mexico.
The company has little to add about what it can do
while it gears up to produce it on a commercial scale, said
Palisch of Carbo.
After a long quiet period, Oxane is expected to finally
begin talking about the results of field tests on its OxBall
proppant, which was developed using nanotech materials
developed at Rice University that it says are far stronger by
weight than competing ceramic proppants.
The details will be in papers to be released later this
year said Mark Mack, vice president of engineering at Oxane,
who offered a short comment: In a 20-well study, we have
documented a 20% improvement in 12-month production
simply by replacing standard intermediate strength proppant
with OxBall. In many North American tight oil/oil shale plays,
an improvement of less than 5% would justify the additional
cost of upgrading to an advanced ceramic proppant.
And the company said an improved version that is
lighter and offers the same strength is expected later this
year, he said.
For wells with performance problems, like scale
buildup, Carbo has released a porous proppant, Scaleguard.
It is an early example of an industry trend toward using
proppant as a delivery device. The advantage of this
approach is a chemically infused ceramic can slowly release
a chemical over time. Treatments delivered in fracturing
fluids will flow out of the well in the days after the job,
Palischsaid.
Schlumberger has gotten away from spherical with a
new ceramic proppant shaped like rods, called RodProp. It is
designed to act like tiny columns, opening a larger pathway
near the wellbore. The sharp-edged shape is designed to
create a proppant pack that remains in place, significantly
reducing the amount of proppant that flows back in
fieldtests.
The large-sized, intermediate-strength proppant is
designed to allow greater near-wellbore conductivity than
other large-sized proppants. Typically up to 20,000 lb. of this
proppant has been added at the end of a fracturing stage.
The higher cost of the rod-shaped proppant relative
to traditional spheres, was offset by production gains
and better proppant flowback control in field tests, said
Alejandro Pea, well production services chemistry and
materials portfolio manager at Schlumberger.
He added that the benefit is greater when the
new proppant is at the end of a fracturing job using the
companys Hiway service, which uses fibers and alternate
pulses of proppant and fluid to push in clusters of proppant
and create highly conductive channels along the fracture.
And there is a growing array of ultralightweight
proppants designed to reduce the weight, volume, and
pumping power needed to deliver proppant.
In a Tight Zone
Ultralightweight proppant made it possible for Energen
Resources to complete four wells in a national forest in New
Mexico on drillsites so small the phrase frac spread was
not a good description.
The solution was a proppant developed by Halliburton
and produced by Sabic, called MonoProp made out of thermo
plastic alloy. It reduced the amount of proppant needed for
each well to an average of nearly 31,000 lb, compared to an
average of 296,000 lb for five comparable wells elsewhere in
the Pictured Cliffs tight gas formation, according to a paper
on the project.
If we had to do it the conventional way we would not
have been able to do the project, said Patricio Sanchez,
senior district engineer at Energen, which has operations
in the Black Warrior basin of Alabama, the Permian Basin
in west Texas, and the San Juan basin in New Mexico
andColorado.
Switching to lower-weight proppant reduced the
number of containers needed to deliver it from 15 to one, and
also reduced the pumping capacity needed for the nitrogen
foam job done by Halliburton. The proppant, whose density
is among the lowest in its class, can be pumped at 25 bbl per
TABLE 1PROPPANT TYPE AND ASSOCIATED SPECIFIC GRAVITY
Proppant Specific Gravity (SG)
Natural sand 2.65
Lightweight ceramics 2.68 to 2.72
Intermediate-strength bauxite ~3.25
High-strength bauxite ~3.5
Walnut shells ~1.25
Hollow glass spheres 0.8 to 1.4 variable
Porous ceramics 1.8 to 2.4 variable
Plastics 1.1 to 1.4 variable
TPA 1.08
PROPPANT ADVANCES
PROPPANT ADVANCES
42 JPT APRIL 2013
minute, compared to 50 bbl per minute with sand. That helps
to control fracture height growth and to keep the job more in
the zone, Sanchez said.
A paper presented by Halliburton and Energen
Resources at this years fracturing conference concluded
that using the ultralightweight proppant may have added to
production as well.
The proppant was chosen after comparison test
with other competitors. It was able to stand up to the
closure pressure in the shallow formation, as well as to
the production chemicals the company planned to use,
Sanchezsaid.
The results of the four gas wells were compared to
fivewells drilled into the same formation and fractured
using20/40 mesh sand. By far the best producing well was
drilled by Energen, while the two worst were in the control
group fractured using conventional materials in what
he said was a better reservoir. The other six wells were
tightlybunched.
Sanchez was pleased because we compared it to wells
in a better reservoir, and actually ours performed better.
Proppant Placement?
There is more than 50 years of mathematical work on
how fluids and gases flow through fractures. But a lot of
questions remain for debate.
In a keynote speech at this years fracturing conference
on conductivity, Bruce Meyer of Meyer and Associates
offered an overview, running through a forest of formulas
dating back to the 1960s.
But there are still differences among experts on the
importance of proppant. His conclusion was: If you go out
and do not pump proppant, I do not think you will do as well.
Arguments about what proppant does are hard to
resolve because of uncertainty about where it goes. At the
fracturing conference booth for MicroSeismic, a company
named after the approach it uses to monitor fracturing work,
one the most-asked questions was: Where did my proppant
go downhole?
And there are theories that one reason fracture
performance varies so widely is because some spots get
more proppant than others.
To help shed light on the subject Halliburton did a
study simulating the flow of sand through a row of three
perforations along a wellbore using an above-ground flow
loop. The goal was to answer the question: Can differences
in the amount of proppant help explain wide production
differences observed within wells?
The answer was, the distribution varies. Heavier
sand and ceramics tended to flow into the last of the three
openings on the test loop, possibly because its momentum
carried it farther than the fluid. Smaller grains were more
likely to flow out the first. Adding gel to make the fluid more
viscous evened out the distribution.
And after the series of tests, the friction of the flow
had cut deeply into the hardware used to connect the three
diverter lines on the flow loop even though the pumping rate
usedup to 14 bbl per minutewas a fraction of what is
pumped in a well.
When asked about why the lower pressure was used,
the paper presenter, Freddy Crespo, an applications engineer
at the Halliburton Technology Center, said higher pressures
were not an option because of the limits of the test setup,
adding: If you go to higher flow rates it will explode.JPT
A Q&A WITH GEORGE KING
George King, global technology consultant at Apache Corp.,
has written and spoken extensively about advances in uncon-
ventional oil and gas exploration and production technology.
He offers his thoughts on whether the industry is likely to try
some unconventional approaches to improve recoveries.
DO YOU THINK THERE IS A GREATER
WILLINGNESS TO TRY NEW THINGS?
In about the same proportion as the rest of the human
species, only the young and the curious are open to new
ideas, but when new ideas have a strong economic drive,
the uptake is much better. We are led by our wallets. Self-
suspending proppant and other similar things that have the
potential to sharply raise production will be tried by lead-
ers, who will take the lumps and bruises while the rest follow
when it is proved a success.
WHAT IS THEIR MOTIVATION?
The unconventional oil and gas zones, which, to date, have
only produced about 1 to 3% of total technically recoverable
reserves (in unconventional plays). The driver here is stron-
ger because of the reserve picture. Unconventional oil recov-
eries have risen to 3 to 5%; 5 to 8% is on the horizon, but
we arent there yet. Yes, without advances in technology we
could leave 90% behind. Thats a really large target for tech-
nology to shoot at.
WILL THAT SWAY DECISION MAKERS?
When enough dollars dance in front of an oilman, even the
older ones will try new stuff.

For more, see a replay of George Kings recent online lecture,
Tight Oil Approaches and Technology GapsWhat Works,
What Hasnt Yet at http://www.spe.org/dl/video.php.
44 JPT APRIL 2013
B
ack when supplies of guar were tight, Marathon
Oil asked a high-tech chemical company if it
couldcreate a substitute for the plant product
usedto thicken fluids used for fracturing, and it was
also looking for an option that transported proppant
moreefficiently.
The company, Soane Energy, came back with an
unexpected way to keep dense particles from settling
inwater.
In the oil business this has long been done by mixing
water and a gel, most often made from guar, creating a
viscous fluid able to carry bits of sand or ceramic through a
well on to fracture the formation.
Soanes approach was: We can coat every sand grain,
said Phil Snider, senior technical consultant for Marathon Oil.
The proppant problem was on the list of problems in need of
better solutions that Snider and his partner on the project,
Steve Baumgartner, also a senior technical consultant at the
company, were working on.
The result of that exchange is called self-suspending
proppant (SSP). Each grain is given a polymer coating that
expands to about 5 times its size when combined with water.
The combination reduces the density of the pairing, which
alone would reduce settling. The key to keeping it suspended,
though, is the expanded size of the coating, which fills the
space keeping the heavy bits in suspension.
The inspiration for this was the chia seed, which has
gained a bit of notoriety as an eye-catching addition to
trendy drinks. The seed remains suspended indefinitely
because it is covered by a layer of material that expands by
readily absorbing water.
When you put one in water it swells like crazy,
said Robert Mahoney, the vice president of research and
development for Soane, who still has a murky glass full of the
seeds, which inspired the development team, which then had
to find a polymer that acted like that in water and attach it to
the various materials used as proppant.
The offbeat inspiration is not out of line at one of the
many companies founded by David Soane, a former professor
at the University of California Berkeley turned entrepreneur.
His ventures are in many industries but have a common
thread; they use innovative material science techniques
to make and attach coatings. One of the best known is a
treatment to make fabrics stain resistant, known as NanoTex.
To explain SSPs potential, Mahoney points to a lab
test using an 8-in. tall cylinder, called a vertical flow column.
Various mixtures are pumped in to see if they separate while
rising. While the SSP, with sand inside, flows over the top, the
water thickened with linear gel leaves the sand behind.
It is too early to say if SSP will do as well in the
ground. But Snider said the early results are promising.
After lab tests indicating it could do what was needed in a
This series of photos compares how long proppant
remains in solution. In the bottle on the left the sand
is in water thickened with a solution of a cross-linked
gel and on the right self-suspending proppant (SSP),
is added to the water. (3 pounds of proppant per
gallon in both). The photo on the top was taken at the
beginning, the middle one was done after one hour,
and the third after 2 hours.
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45 JPT APRIL 2013
well, Marathon started trying it out by fracturing individual
horizontal well stages, and steadily adding more of them. By
mid-February it had done half the stages of a lateral and a
full well test was completed in early March.
The cautious buildup was designed to observe the
performance of a product that did not fit into the measures
of performance of proppants or fluids because this coated
proppant fills both roles.
One early concern was whether the coating would keep
the proppant from entering fractures, but there has been
no sign that is a problem. Snider said the gel and proppant
combination is able to squeeze into tight spaces because
its outer layer deforms to fit in. They have observed that
the amount of proppant flowing back after fracturing has
been minimal, and the polymer coating is breaking down
asdesigned.
The coating is designed to break into its component
parts when it reaches bottomhole temperature. This process
can be enhanced by pumping a chemical breaker, and higher
salinity water can also break the polymer.
Those conditions are likely around the time the fluid
reaches the end of its trip in the wellbore and is about to
enter the hot formation.
Making sure the SSP coating breaks down is critical
because its creators want to avoid a problem commonly
blamed on gelsproduction-reducing residues left in the
formation. Based on the lab testing, Mahoney said SSP is
different because it is not just a polymer (molecule) coiling
and uncoiling; it is breaking into component parts that flow
out with the produced water from the well.
Over the next year Marathon will be trying to answer
the key question: Can SSP increase oilwell production? It
plans to do a series of comparison tests in areas with fairly
uniform geology. The number of wells tested will depend on
the how the first few turn out, Snider said.
The coating is being done by CRS, a proppant company
brought in to figure out how to apply Soanes invention to
millions of pounds of sand. So far, changes have been made
to ensure SSP flows as smoothly as the highest-quality
sands, which is not easy to do when handling a coating that
reacts with water.
And Snider said the experience highlighted the benefits
of going outside the industry when looking for help. There is
an advantage getting some tech assistance from someone
who has no knowledge of how we do things, he said. They
are not constrained by conventional thinking.JPT
46 JPT APRIL 2013
I
n the 1980s Claude Cooke had an idea for a low-cost
way to improve the output of underperforming wells.
But it took decades to find the materials he needed
to turn that idea into a treatment, called SqueezeFrac, being
produced by a startup company called EnerPol.
While doing hydraulic fracturing research for what is
now Exxon Mobil Corp. he noticed there were a lot of fracture
treatments where pressure tests showed much larger than
expected results, suggesting a high-pressure shot of sand
likely cleared out damage near the wellbore.
It strongly suggested there is a reward for fracturing
older wells, but the cost of doing that would exceed the likely
gains at many of those wells. Cooke said he saw a need for a
much less aggressive and expensive method to remove near
wellbore damage.
The job could be done with a lot less sand, fluid, and
horsepower to pump the job, if it were possible to squeeze in
a small amount of very viscous fluid and proppant.
His idea was to do that by delivering the sand and
proppant in the form of pellets about the size of an M&M that
would be pumped into a vertical well. These pellets would
dissolve as they warmed after reaching the area in need of
treatment. It would be a targeted delivery system reducing
the materials and pumping power required.
The concept of a small fracturing job, like a squeeze
job for cement repairs, sounded simple enough for Cooke,
who was honored by SPE as one of the Legends of
Hydraulic Fracturing for his role in developing bauxite
ceramicproppant.
But the project remained on hold for many years
because he lacked a low-cost source of a polymer that
woulddegrade as neededfirst going from a solid into
a thickener for the fluids in the well, and after the job is
done breaking down into its component chemicals without
leavinga residue. It had to have a degradable polymer. I
knew such things existed but they sold at too high a price,
he said.
That changed when environmental concerns persuaded
fast-food chains and others to begin to make clamshell
hamburger containers using materials that would biodegrade
in a landfill.
It took a while longer to find a company willing to
supply what he needed in the amounts required by EnerPol to
begin making the pellets and testing the concept. Recently
it received a second round of support from the Research
Partnership to Secure Energy for America to pay for testing,
with a budget of USD 3.4 million.
The treatment has been tried on one well, which
became significantly more productive, but unfortunately
most of what was produced by that dead well was water
rather than oil, Cooke said.
SqueezeFrac is a multistep process. Polymer pellets
without proppant are pumped in first, followed by pellets
with the proppant. They accumulate over perforations at the
bottom of the casing and a gel forms. Then the mixture of
gel and sand is squeezed through perforations by pressure
at the surface, much like a squeeze cementing operation.
Afterwards the polymer degrades in the fracture into an
organic acid.
The equipment used is no different than what would be
found on a typical fracturing job. It works perfectly well, but
Cooke pointed out it is built for jobs many times larger than
his, which can be done with a 300-horsepower engine, or
less, and would cost about 20% of what a typical fracturing
job would. In the future hed like the see the job pumped using
equipment mounted on the back of a pickup truck.JPT
A PROPPANT PILL FOR AILING WELLS
Enerpol has combined proppant and a biodegradable
polymer to reduce the water, sand, and pumping power
needed for fracture to repair near-wellbore damage in
old wells.
For further reading:
SPE 163818 Self-Suspending Proppant by R.P. Mahoney,
Soane Energy, et al.
SPE 163815 Case History: Production Results From Partial Monolayer
Proppant Fracture Treatments in the Pictured Cliffs Formation
Horizontal Wells of San Juan Basin by Muthukumarappan Ramurthy,
Halliburton, et al.
SPE 160206 Hydraulic Fracture Design Optimization in
Unconventional ReservoirsA Case History by Terry T. Palisch,
Carbo Ceramics, et al.
SPE 163849 Investigation of Improved Conductivity and Proppant
Applications in the Bakken Formation by Bethany Kurz, Energy &
Environmental Research Center, et al.
SPE 163875 Analysis of U.S. Hydraulic Fracturing Design Trends
by Christopher Robart, PacWest Consulting Partners, et al.
SPE 163852 Application of Multivariate Analysis and Geographic
Information Systems Pattern-Recognition Analysis to Production
Results in the Bakken Light Tight Oil Play by Randy F. LaFollette,
Baker Hughes, et al.
ROCK TESTER
48 JPT APRIL 2013
Nobody knew where the oil and gas was
trapped inside shale until a scanning
electron microscope (SEM) showed the
pores within the organic materialinside.
Now there are a growing number
of machines creating three-dimension-
al (3D) digital replicas of these rocks by
combining SEM imaging with a focused
ion beam (FIBSEM), which cuts off ultra-
thin slices like a meat slicer, revealing
multiple layers within.
These 3D digital images are incred-
ibly detailed, but they are based on cubes
whose longest side is 1020 microm-
etersmillionths of a metermaking
them small enough to fit into the spaces
in porous sandstone. When it comes to
building reservoir models, it leaves engi-
neers wanting more.
The real challenge is we are cre-
ating micron-sized images and dealing
with square miles of resources, said
Carl Sondergeld, a professor at the Mew-
bourne School of Petroleum and Geologi-
cal Engineering at the University of Okla-
homa (OU). If we can transcend those
scales we can do a better job of character-
izing reservoirs.
In the pursuit of more, he and Chan-
dra Rai, professor and director of the
Mewbourne School, have built up one of
the largest unconventional rock research
laboratories, backed by 12 oil com panies.
The focus has been on understanding
the workings of the nearly imperme-
able rocks, which has changed how some
properties are measured.
The large lab displays Sondergelds
constant hunt for improved tools for ana-
lyzing how rocks and reservoirs perform.
The laboratory recently added the latest
generation of scanning electron micro-
scopes from one of the biggest makers of
these instruments, FEI.
One thing that sets this FIBSEM
machine apart is its ability to stitch
together thousands of micron-scale
images to create 2D pictures covering
rock surfaces measured in millimeters
rather than micrometers. These hyper-
detailed pictures offer an overview of
an area, with the option of zooming in
for a closer look to see if low-resolu-
tion impressions are correct. They often
arenot.
Another plus is its ability to create
images using extremely low poweras
low as a 100 V compared with 30,000 V
for older machinescreating images
that may offer better ways of measur-
ing critical details, such as the amount of
kerogenthe organic material that is the
source of the oil and gas.
And then there is the deal that
brought that machine and two related
Turning a Scientific Tool
Into an Engineering Machine
Stephen Rassenfoss, JPT Emerging Technology Editor
This scanning electron microscope image created using an extremely low
voltage level (350 V) appears to highlight the organic matter in this sample
by surrounding it with a glowing halo. This and the images on pages 30
and 31 were created by Weatherford and FEI using its latest device and
rock from the Pennsylvania Geological Survey.
RockTesterOU.indd 48 3/15/13 8:55 AM

49 JPT APRIL 2013
devices to the laba technology devel-
opment collaboration between the OU
shale lab and FEI. For Sondergeld it is
a way to gain access to state-of-the-
art equipment that was not in his bud-
get, and is the first of what he expects
will be a series of such partnerships
to help develop improved tools for
rockanalysis.
For FEI the collaboration is seen as a
way to make its machines faster and eas-
ier to operate. But more importantly it
needs to make the machines more useful
by finding ways to combine imaging with
other rock-testing devices to generate
meaningful numbers to help build better
reservoir models.
For the industry, this collaboration
is an example of how testing techniques
are evolving to bridge the gap between
the formation, whose scale is huge, and
the defining details in these rocks, which
areminute.
Making It Quantitative
Oil and gas exploration and production
is FEIs fastest growing market for FIB-
SEMs, but there is room for growth.
Weatherford Laboratories owns
one and uses it to answer questions
about the characteristics of unconven-
tional rocks, such as pore distribution
and morphology, said Mike Dixon, man-
ager of geologic services in Houston at
WeatherfordLaboratories.
Currently our use of the FIBSEM is
more on our geological side, not as much
on the engineering side, Dixon said. It
is used to answer questions about what
are the controls on reservoir quality and
the porosity type.
When it comes to measurements
used to build reservoir models, such as
permeability, Raymond Bruce, petrolo-
gy group manager at Weatherford Labo-
ratories, said that it relies on standard
industry quantitative lab-analysis meth-
ods. Special sample-handling steps have
been added to ensure repeatable results
with shale.
While the company is steadily find-
ing new ways to use its FIBSEM, serious
questions remain about whether certain
detailed measurements of little bits of
This is one of the 585 scanning electron microscope images used to
create a 31-GB mosaic image of a 0.7-in. wide piece of Marcellus shale
from a producing well. It appears to be marbled with dark colored areas
of organic matter, which may contain hydrocarbons.
A closer look at the lower right side of the image shows the organic
matter as solid, roughly parallel layers spaced by a mix of quartz, calcite,
and clay grains. The bright white particles are pyrite (iron sulfide) crystals
arranged in what is called a pyrite framboid.
ROCK TESTER
50 JPT APRIL 2013
rock are representative. Engineers want
data accuracy. They want to know if you
say 12% it is 12%, Bruce said. Engi-
neers think in black and white. Geolo-
gists not so much.
The Big Picture
The rise of unconventional oil explo-
ration has created a hunger for great-
er magnification. Prior to the shale
boom FEI would sell a couple of elec-
tron microscopes a year to oil and gas
companies, and not the most power-
ful ones, said Herman Lemmens, oil
and gas market development manager
at FEI. A top-of-the-line machine was
not needed to see the details in porous,
conventionalreservoirs.
But in recent years, Lemmens said
sales have soared for its most power-
ful FIBSEMs to oil operators and ser-
vice companies around the world trying
to better understand formations where
they are investing billions of dollars with
mixed results. The instrument maker is
trying to replicate what it did in the semi-
conductor business, where its machines
are part of the manufacturing process,
Lemmens said.
The new machine that will be
installed in the OU lab when building
upgrades are completed creates imag-
es so large they are measured in giga-
bytes1 billion bytesshowing details
measured in nanometers1 billionth
ofa meter.
An example of what it could do is
an intricately detailed mosaic combining
12,800 images that it stitched together in
the way some cameras can combine pic-
tures. It is possible to zoom in and out
of the 150-GB computer file covering an
area the size of a thumbnail, like using
Google Earth.
The presentation by Lemmens of
that picture of a Marcellus shale starts
with an overview, which looks like a gran-
ite countertop. The background is a range
of grays that is spotted, streaked, and
flecked with black spots where organic
material is likely and the nearly white
ones with minerals.
A much closer look at the dark spots
reveal some looking like fractured lumps
Another of the 585 images shows solid organic matter through the middle
of the image, including a band of broken organic particles.
A closer look at the band of particles suggests it was the result of an event
that ground down the organics and minerals into fine particles. Other wells
nearby with rocks exhibiting this fabric are not productive. One explanation
is the natural gas once stored in the organic pores might have escaped
when that deformation destroyed the organic space in the rocks.
ROCK TESTER
52 JPT APRIL 2013
of coal that is not likely to hold oil or gas;
and another, microns away, showing ker-
ogen pockmarked with holes, which like-
ly containhydrocarbons.
For Sondergeld, having a machine
designed to create detailed images of
larger areas can make rock analysis
more meaningful by revealing the com-
plex fabric of the rock. Now, digital rock
analysis is based on picking 20 or so
locations for 3D imaging, based on mea-
surements that do not offer nearly as
much detail.
But it took 5 days to create that
image. Methods have improved since
then, reducing the time to 3 days. Either
way, Dixon said it would be impractical
for testing labs to spend that sort of time
on imaging one sample.
Based on user feedback, Lemmens
said, They do not want to take three
days. They want an image that takes
onehour.
Multiple Sources
Shales vary in unpredictable ways. Any-
one sampling these heterogeneous rocks
must have a measure of the degree of
variablity to determine how many sam-
ples are required, and whether any single
small sample is representative.
That degree, and an understanding
of the features to be found in the reser-
voir area, will determine the number and
location of the spots needed to use small
samples to make useful inferences about
a larger area.
Those doing rock analysis general-
ly start with lower-resolution wide-area
scans to get a general understanding of a
sample, and then target specific areas for
further detailed examination. When ana-
lyzing a core sample, Weatherford and
some other testing labs start by doing a
computed tomography (CT) scan which
can detect changes in the makeup of
the rock (lithology) and its densityfor
example, organic material is less dense
than mineralsand fractures.
CT use, which goes back 15 years at
Weatherford, has grown with the shale
boom, leading to the purchase of a faster
machine capable of scanning sections up
to 200 ft in a day or 2.
The industry keeps searching for
better, quicker, more detailed views of
these difficult rocks. Most recently we
have added some new tools for shale
analysis, Dixon said. The challenges
include characterization of very small
pore systems as well as variability on a
larger scale in rocks known for heteroge-
neity. One advantage we have is not hav-
ing to use one analytic tool. We look at a
lot of different qualities.
At Baker Hughes multiple SEM
machines are used in conjunction with a
growing array of reservoir analysis tools
using various approaches atomic force
microscopy (AFM), nano-infrared (nano-
These three images show a sample of shale and closeups of two areas within it holding organic matter. The
differences in those close ups point to the challenge of determining if organic matter is productive or not in a
low-resolution image.

53 JPT APRIL 2013
IR) spectroscopy and Raman microscopy,
said Gaurav Agrawal, director, enterprise
research at Baker Hughes.
One of the devices lent to OU is FEIs
latest Qemscan, which does detailed
mineral analysis. A smaller, more rug-
ged version of that device is leased to
oilwell service companies, which have
adapted it for wellsite mineral analy-
sis of cuttings. Weatherfords Wellside
Geosciences unit is a competitor in
that service.
The goal of this hunt is to combine
data from multiple tools is to extract
more from each image and measure-
ment, Sondergeld said.
Lemmens hopes to see a future well-
site device that will be able to measure
the full range of rock properties, includ-
ing permeability and porosity, using
small core samples or cuttings, which are
cheap and plentiful. This could be par-
ticularly valuable in countries without
local labs, where getting rock to a labo-
ratory for testing can mean long delays,
said K.S. Chan, global director for oil and
gas for FEI.
Sondergeld is looking for ways to
build a wider range of testing capabili-
ties into the FEI machines. One possi-
bility is adding a nano-indenter, which
tests properties such as hardness and
brittleness by applying an exact force on
a tinyarea.
What is happening in the instru-
ment world is integration of all of these
instruments, said Sondergeld. Adding
multiple measurement systems can max-
imize the information you can extract
from the same sample.
His interest in the methods used for
rock analysis in commercial labs goes
back to one of the first problems posed
by companies supporting the OU shale
consortium: Different commercial labs
often provided different measurements
of properties, such as permeability, and
the operators wanted to know who was
doing it correctly. Sondergeld said that
prompted more testing labs to disclose
their measurement procedures, but
greater openness is needed.
Weatherford said it has openly dis-
cussed its methods for determining
shale rock properties such as porosity
andpermeability.
Now Sondergeld is seeking to
change the tools used to measure uncon-
ventional rocks. I view this as a differ-
ent direction for university and industry
cooperation, Sondergeld said, adding
I think this will happen more and more
frequently in the future.
An Element of Surprise
The near-term goal for the OU-FEI col-
laboration is well defined: create easi-
er-to-use machines that are able to con-
sistently produce better images and
quickeranalysis.
FEI will be sending an employ-
ee to observe how things are done at
OUwhere Lemmens said the qual-
ity is consistently goodwith an eye
toward incorporating those techniques
into algorithms that automate the pro-
cess of creating multiple images, perhaps
prompting the FIBSEM operator to adjust
the settings for improved results in later
shots. FEI will also be offering regular
training programs for users on how to
better use the devices.
In the longer term, the expectations
are not as defined. They will be looking
for practical uses for its new machines
unique features, particularly its ability to
operate at extremely low voltage levels.
I do not know what we will find. It is like
being near-sighted and not realizing it
until someone gives you a pair of glasses,
Sondergeld said.
The Mewbourne lab is being asked
to combine what is observed with all
rock analysis techniques it has avail-
able to determine what microstructural
details govern production and create sys-
tems to efficiently and effectively test for
thoseproperties.
Even before the new FIBSEM
machine was up and running, he was
excited by images he had seen that were
created using power levels approaching
100 V. The organic material appeared
to be outlined by a bright, irregularly
shaped halo that he had not seen in imag-
es created using higher power levels.
Early work in this area came from
a project between FEI and Christopher
Laughrey, who now works for Weather-
ford Laboratories, using a sample from
his former employer, the Pennsylvania
Geological Survey (AAPG 90122).
This phenomenon may offer a more
efficient, objective way to measure the
organic content, Sondergeld said. Cur-
rently the components and their quan-
tities are determined by segmenting
(thresholding) the various shades of gray
in the image.
But work is needed to determine if
low-voltage images can be used for mea-
surement, or even why these look so dif-
ferent. It may be a few years before we
can use all the information in these low-
voltage images, Sondergeld said. But the
immediate benefits areobvious.JPT
CONFERENCE REVIEW
54 JPT APRIL 2013
As the era of the easy extraction of con-
ventional hydrocarbon is over, energy
companies across the world are tapping
into difficult resources and developing
unconventional reserves, such as shale
gas and tight gas.
In the Middle East and North Africa
region, results from recent gas explora-
tion and appraisal activities indicate that
the region holds substantial resources
of unconventional gas, especially tight
gas. Regardless of the existence of highly
productive conventional gas fields in this
region, tight gas-related exploration and
appraisal activities in several countries in
the region have increased and are expect-
ed to pick up pace going forward.
With this background, the SPE Mid-
dle East Unconventional Gas Confer-
ence and Exhibition (UGAS) was held
in Oman to address the best practic-
es and techniques used for the devel-
opment of unconventional resources in
the region. Under the theme Uncon-
ventional and Tight Gas: Bridging the
Gap for Sustainable Economic Develop-
ment, the conference highlighted the
latest developments related to tight gas
and shared success stories about the
development of tight wells from regions
all over the world. The 3-day confer-
ence highlighted the criteria, challenges,
and environment required for success-
ful unconventional gas production and
how it implicates the long-term glob-
al supply of natural gas. Thirteen tech-
nical sessions along with poster and
e-poster stations offered 90 presenta-
tions from more than 35 companies and
18 countries.
Delivering the keynote speech, Zaid
bin Khamis al Siyabi, director general
of oil and gas exploration and produc-
tion at the Ministry of Oil and Gas in the
Sultanate of Oman, said the Sultanate
recently began searching for and explor-
ing unconventional gas resources, and
needs to make more natural gas available
to local industries. The importance of
unconventional resources for the sultan-
ate is really huge, al Siyabi said.
Middle East/North Africa Region
Focuses on Tight Gas
Abdelghani Henni, Middle East Staff Writer
Egbert Imomoh, 2013 SPE president, meets with delegates at the conference.
UGAS_Review.indd 54 3/14/13 1:32 PM

55 JPT APRIL 2013
Al Siyabi revealed that oil companies
operating in Omansuch as Petroleum
Development Oman, Shell, and BPhave
drilled approximately 50 wells to explore
unconventional gas resources using the
latest technologies.
Darryl Willis, vice president resourc-
es, North American Gas, BP, said in his
presentation titled Development of
Unconventional Resources: Past, Present
and Future that unconventional gas con-
tinues to be a journey of discovery and
challenge. The future of our industry is
increasingly unconventional. In the US,
about 40% of the gas comes mainly from
shale gas, Willis said.
The industry is now capable of
producing gas from difficult geologi-
cal structures at reasonable cost, mak-
ing such resources economically viable,
Willis said. Among the success factors
is the application of conventional tech-
niques to unconventional, including the
sweet-spot identification, integrated res-
ervoir description, as well as the long-
term development, he said.
The success of the development of
unconventional gas in the US occurred
in part because of the introduction of
new technologies, leveraging of seismic
data through reprocessing, and improve-
ments in geosteering in complex struc-
tural areas, in addition to the microseis-
mic used to determine fracture-height
growth, he said.
Willis said companies have to man-
age the uncertainties around such proj-
ects. Uncertainties should be expect-
ed when developing unconvention-
DARRYL WILLIS, Vice President Resources, North American Gas, BP
What lessons have been learned from US unconventional
projects?
You have to enter unconventional developments recognizing
that in many cases they will be challenging projects.
Development costs at the outset may be comparatively
high. So you must be committed to continuously improving
your ability to drill and complete and produce wells, and
continuously improving your ability to access the reservoir,
incorporating seismic and rock properties. One size does
not fit all with these reservoirs. The subsurface ultimately
drives the development, and the reservoir over time will
tell you what is required for the full-field development.
Experimentation and innovation are critical to adding long-
term value.
What are the main reasons behind the success of the
unconventional gas development in the US compared with
other parts of the world?
Incentives and infrastructure have been a critical part of
the unconventional journey in the United States. Back in
early 1980s, the government established fiscal incentives to
encourage companies to tackle the challenges of tight gas,
tight oil, and coalbed methane; subsequently, in later years,
the development of shale gas has been able to leverage the
infrastructure, expertise, and resources created for the tight
gas back in the 1980s. Fiscal incentives and access to a
robust supply chain and technical expertise matter.
What technology lessons have been learned?
One of the key pieces of technology is seismic data. We
typically associate seismic data with the development
of conventional wells. We have realized in tight gas and
shale gas developments that seismic data can assist in
identifying sweet spots of a reservoir, and also can help with
well placement, ensuring that horizontal wells are optimally
placed. The sweet spots in an unconventional reservoir can
become the cornerstone of the overall development.
What are the success factors that Middle Eastern and
North African companies should follow to be successful in
developing unconventional resources?
They should leverage their seismic data and microseismic
datasets across a play. They should also experiment with the
drill bit. Finally, it is important to think deeply about where to
place your well and how the performance of those wells fit
within the overall understanding of the subsurface.
Do you see potential for BP in the Middle East and North
Africa in the development of tight gas?
Tight gas opportunities in the Middle East and North
Africa region are extraordinary, and my hope is that we will
continue to leverage our expertise from North America into
this region. The rocks have no idea where they are, and our
job as scientists is to take our learnings from places where
we have deep insights, like North America, and transfer them
to rocks in places like Oman, Jordan, orAlgeria.
CONFERENCE REVIEW
56 JPT APRIL 2013
al resources. Conventional footprint is
often the foundation of unconventional
success, he said. Unconventional gas is
a long journey, which requires leveraging
the technology, finding sweet spots, and
learning from the reservoir. The contin-
uous improvement drives value, where
experimentation is part of the journey.
Bill Roby, senior vice president of
worldwide operations and production
engineering for Occidental Oil & Gas, said
in his presentation titled Unconvention-
al and Tight GasBridging the Gap from
North America to the Middle East, that
challenges in developing unconvention-
al and tight gas lie mainly in finding the
right target, the right economics, the
right plan, and the ability to execute.
Unconventional gas is not every-
where, said Roby. So gas targets require
sufficient size to be economically viable.
Also, you must understand the rocks as
development costs are critical.
Roby asserted that there are many
challenges in developing unconventional
gas, but by applying the correct technol-
ogies in the right places, these challenges
can be addressed easily. Compared with
conventional gas wells, the design cost
of tight and unconventional gas wells are
high, along with a high early-life produc-
tion decline. In addition, fiscal agree-
ments significantly impact the econom-
ics of developing unconventional gas. In
the end, economics drive unconventional
gas development, as cost control is criti-
cal, he said.
Having the right plan to develop
unconventional gas is key. The over-
all field-development plan requires
a good knowledge of reservoir quali-
ty and deliverability, and the well pro-
ductivity, its type, and spacing. A good
water- management plan, knowledge of
the completion needs and the gather-
ing and processing needs, as well as the
development-staging plans and pace are
also needed.
The right plan also necessitates
knowledge of the location, and wheth-
er it requires single or multiwell pads,
and well design, which could be vertical
or horizontal, a single lateral or multi-
lateral, in addition to the lateral length.
Knowing the completions requirements
also is essential, he said, including flow-
back and testing, artificial lift, and water
management. Several completion tech-
niques can be used, he said, such as plug
and perf, openhole multistage, or abra-
LARRY RYAN, Business Director of Dow Oil & Gas, says tough environmental
conditions are dictating technology requirements in the Middle East and North Africa
Harnessing the Environment
Extracting oil from the ground is a tough job, and
environmental conditions can make it even more difficult
and challenging. This is the case in some parts of the
Middle East and North Africa region, where high pressure,
high salt, and high temperature can make drilling
operationschallenging.
Management of wastewater used during the oil
extraction is another issue facing the industry in the region.
I think one challenge that is key to the Middle East region
is water management, especially wastewater recycling and
treatment. For example, Saudi Arabia has started developing
shale gas, which requires implementing an efficient water-
management system, said Larry Ryan, business director of
Dow Oil & Gas.
Ryan said he is seeing increased interest in enhanced
oil recovery (EOR) in the Middle East. Companies are asking
how they can get their recovery factor up from their current
recovery factors of 40 or 50%, he said. While the focus
has been on discussing the benefits of using CO
2
and other
chemical EOR methods, the main challenge in the region is
the high temperature and salinity of reservoirs, conditions
which prevent the chemicals from workingproperly.
Dow is actively engaged in developing technologies
to address these and other challenges the region faces,
and Dow Chemical is well known for its involvement in the
USD 20-billion Sadara project, a downstream joint venture
between Dow and Saudi Aramco. The company recently
launched the Neptune Advanced Subsea Flow Assurance
Insulation System, an end-to-end flow-
assurance technology that protects
and insulates subsea equipment, line
pipe, and field joints.
The increase in deepwater
exploration, especially in north and
west Africa and Europe, has resulted
in deeper offshore wells and therefore
higher-temperature, higher-pressure environments,
said Ryan. The temperature variations caused by high-
temperature extraction processes in very cold subsea
environments make it even more important to have
effective, long-lasting insulation for thepipelines.
In the Middle East, Dow is also expanding its Amine
Management Program to support local efforts to produce
export-quality, low-sulfur fuel while meeting environmental
emission standards, he said. The Amine Management
Program from Dow employs advanced analytical and
modeling tools to identify opportunities for more efficient
removal of H
2
S and CO
2
from refinery gas, he said.
The program, which is used in Japan, North America,
and other regions, is compatible with traditional amine-
management. Varying crude slates and tightening
environmental regulations for sulfur and CO
2
emissions
can put substantial pressure on refineries to meet margin
expectations, he said.
Recommendations may include improving amine
efficiency through the use of specialty solvents. The
program also offers training and startup support.

JPT APRIL 2013
sive perf with sand/jet. The frac design,
which helps in overall field-development
plan, also requires sand strength, vol-
ume, and other considerations.
Service sector sourcing is a chal-
lenge facing companies developing
unconventional and tight gas fields, he
said. It is important to hire high-quality
service providers that enable the manu-
facturing process to be repeatable, reli-
able, and cost conscious. The strategic
service sourcing should also include inte-
grated services rather than a single ser-
vice provider, in addition to the greater
vertical integration of operator consider-
ations, Roby said.
Colin Davies, vice president, cor-
porate strategy for Hess, highlighted in
his presentation the transformation of
the gas sector in the US and how the
independents took the lead in this sec-
tor. Companies considering developing
unconventional resources need to adopt
a different approach than they would
use with conventional projects, he said.
Because of the different nature of explo-
ration risk, the requirement of a sus-
tained investment profile, and the (need
for) operational efficiency, it is important
to have a new approach when developing
unconventional gas, he said.
In the US, the development of
unconventional gas was done mainly by
independents rather than major oil com-
panies. US independents were the pace-
setters, Davies said.
Davies also compared the US uncon-
ventional gas success with the Middle
Easts potential. While there are sever-
al similarities between the two regions,
Middle East countries need to work more
on the subsurface, economics, and regu-
latory factors, said Davies.
Regarding the subsurface, new
workflows are required to test low data-
density plays at low cost. For econom-
ics, Davies said that innovative policies
will likely emerge in the Middle East, and
the regions existing regulatory structure
may need updating. JPT
Zaid bin Khamis al Siyabi, director of oil and gas for the Oman Ministry of Oil
and Gas, toured the exhibition area and met with exhibitors.
UGAS_Review.indd 57 3/25/13 7:39 AM
SPE BOARD NOMINATIONS
58 JPT APRIL 2013
Helge Haldorsen is the nominee for 2015 Society of Petroleum Engineers president.
He andseven others make up the slate of Board nominees recommended for SPE
Board positions by the societys Nominating Committee and Board of Directors. These
recommendations are based on nominations submitted via SPEs online nominating
process (see sidebar).
2015 SPE President
HALDORSEN
Helge Haldorsen
is vice president
strategy and
portfolio for
Statoil
Development and
Production North
America, based in
Houston, Texas.
He worked for Norsk Hydro in various
roles, including chief reservoir
engineer, vice presidenttechnology
and competence, vice president
exploration and research, senior
vicepresidentinternational
exploration and production, and
presidentHydro Gulf of Mexico.
Haldorsen has also held various
engineering positions at British
Petroleum, Standard Oil of Ohio
(Sohio), and ExxonMobil (Esso). He
wasa second lieutenant in the Royal
Norwegian Navy and professor of
industrial mathematics at the
University of Oslo.
Haldorsen earned an MS in
petroleum engineering from the
Norwegian Institute of Technology
and a PhD in reservoir engineering
from The University of Texas at Austin.
He currently serves on the Offshore
Technology Conference board of
directors and the external advisory
board for the Cockrell School of
Engineering at The University of Texas
at Austin.
Technical Director, Drilling
and Completions
CURRY
David Curry is a
Baker Hughes
technology fellow,
based in London,
UK. Prior
positions with
Baker Hughes
include director of
drill bit research
and technical manager of drilling
optimization. He has more than 25 years
experience in drilling research and
technology development, primarily
related to drill bits and bit/rock
interactions, and to drilling performance
improvement. Before joining the oil
industry he worked on nuclear power
plant integrity.
Curry was named an SPE
Distinguished Member in 2010.
He is chair of SPEs Research and
Development (R&D) Advisory
Committee, past chair of SPEs R&D
Technical Section, and has served
on SPEs Drilling and Completions
Advisory Committee, Drilling and
Completions Award Committee, and
Books Development Committee. He
was executive editor of SPE Drilling
and Completion, and in 2007 was
named A Peer Apart for peer reviewing
more than 100 SPE papers. Curry has
published more than 40 papers, been
awarded eight patents, and coauthored
one book. He earned an MA in
natural sciences and a PhD in fracture
mechanics, both at the University of
Cambridge, and is a chartered engineer
in the UK.
Technical Director, Projects,
Facilities, and Construction
DUHON
Howard Duhon
works as systems
engineering
manager and
principal for
Gibson Applied
Technology &
Engineering
(known as GATE),
based in Houston, Texas. He has 38
years experience in the petrochemical
and oil and gas industries, mainly in
process design and project engineering
roles. For the past 15 years that work
has mainly involved deepwater
developments and has been focused
onmanaging the interfaces between
topsides and other disciplines. He has
worked on offshore projects for Noble
Energy, BHP Billiton, Shell, Unocal/
Chevron, Anadarko, Helix, and
BritishPetroleum.
Duhon earned a BS degree
in chemical engineering from the
University of Louisiana at Lafayette.
Throughout his career he has had
a particular interest in the study of
decision theory and in the application
of that knowledge to improve
projectexecution.
Announcement of SPE Board Nominees:
2015 SPE President and Slate of Directors
BoardNoms.indd 58 3/14/13 1:22 PM
SPE BOARD NOMINATIONS
60 JPT APRIL 2013
Director, Eastern North
America Region
GARLAND
Bob Garland is a
senior technical
advisor for
Universal Well
Services, based
inMeadville,
Pennsylvania. He
has more than 30
years experience
in many aspects of the oil and gas
industry, including well logging and
perforating, as an engineer and
operations manager. Garland has also
worked in the cementing and hydraulic
fracturing phases as a consultative
salesengineer.
He has served as board member
of SPEs Pittsburgh Section and is a
member of the Pittsburgh Association
of Petroleum Geologists. Garland is a
veteran of the US Navy. He earned a BS
in civil engineering from Michigan State
University and an MBA from Robert
Morris University.
Director, Mid-Continent
North America Region
TUNSTALL
Michael Tunstall
is Halliburtons
North American
region manager
Easywell
technology. He
hasbeen with
Halliburton for 31
years, serving in a
variety of roles including operations,
knowledge management, procurement,
business development, and account
leadership. Tunstall has worked in North
and South America land, Gulf of Mexico,
and China.
Tunstall earned an associate in
artsdegree, with high honors from
Houston Community College. He has
served as SPE Dallas Section education
chair and SPE Denver Section chair, and
serves on the SPE International Section
Activities Committee. Texas Monthly
Magazine and the Texas Independent
Producers and Royalty Owners
Association recognized Tunstall in
2012as one of the 14 Best Engineers
in Texas. He has coauthored four
industrypapers.
Director, Canadian Region
SPADY
Darcy Spady
serves as director
of client solutions
for Sanjel
Corporations
Canadian business
unit. Before this,
he was vice
president and
managing director of Saint Brendans
Exploration, focusing on the Canadian
Maritimes and Europe. Spady also
chairs the board of directors of Green
Imaging Technologies of Fredericton,
New Brunswick, Canada. He has
previously held executive positions with
Contact Exploration and Petroglobe
Inc. Spady has also been based in
Charleston, West Virginia, USA, and
Fredericton, New Brunswick, as part of
the Columbia Natural Resources/ Triana
Energy team, in various management
positions. He has an extensive
background in the natural gas and oil
industry throughout the US and
Canada, having worked for
Schlumberger in western Canada,
Ontario, Quebec, Atlantic Canada
offshore, as well as the Illinois and the
Appalachian basins.
Spady earned a BS in petroleum
engineering from the University of
Alberta and is a registered petroleum
engineer in the Canadian provinces of
Alberta and New Brunswick. He is a past
chair of the SPE Calgary Section.
Director, North Sea Region
CHALBAUD
Carlos A.
Chalbaud is a
senior reservoir
engineer at GDF
Suez Exploration
and Production
UK, working on
operated assets in
the southern
North Sea and nonoperated high-
pressure/high-temperature assets in
thecentral North Sea. Previous
responsibilities within the company
were providing reservoir engineering
support to new venture projects and
assisting in the coordination of the oil
and gas reserves and resources
corporate booking process and training.
Chalbaud is a member of the
SPE Reservoir Description and
Dynamics Advisory Committee. He
previously served on the SPE Student
Development Committee. He is
currently secretary and membership
officer of the SPE London Section
and previously served as a section
officer in the SPE France Section. He
is a recipient of the 2012 International
Young Member Outstanding Service
Award, the 2011 Outstanding Young
Member Service Award for the South
and Central Europe Region, and a 2012
London Section Service Award. He has
served as an editor for SPEs The Way
Ahead magazine and chaired young
professional sessions at SPEs Annual
Technical Conference and Exhibition
and Offshore Europe. He has coauthored
seven technical papers. Chalbaud earned
a BS degree in chemical engineering
from Simn Bolvar University at
Caracas, Venezuela; and an MS degree in
petroleum engineering from the French
Institute of Petroleum (IFP) School and a
PhD in engineering from cole Nationale
Suprieure dArts et Mtiersboth
inParis.
Director, At-Large
LIU
Liu Zhenwu is
senior advisor at
the Advisory
Center, China
National
Petroleum
Corporation
(CNPC). He has
more than 30
years experience as a professional in
Chinas oil and gas industry, particularly
in R&D management and technology
innovation. From 1976 to 1994, he held
various positions in the Xinjiang
Petroleum Administration, including
petroleum engineer, chief engineer, and
BoardNoms.indd 60 3/14/13 1:22 PM
61 JPT APRIL 2013

president of the Institute of Petroleum
Exploration and Development. Liu then
served as division chief and vice
managing director, Bureau of Science
and Technology at CNPC. From 2000,
he served as director-general of CNPCs
Science and Technology Management
Department. From 2007 to 2009, he
served as deputy chief technology officer
at CNPC. He became vice president of
CNPCs Advisory Center in 2009.
Liu serves in many professional
associations, including as chair of SPEs
Beijing Section, and council member
of the China Petroleum Society and of
the China Association for International
Science and Technology. He has
chaired major natural gas and heavy oil
forums and conferences, and served as
technical committee chair of the 2010
International Oil & Gas Conference
and Exhibition in China and executive
committee member for the third
and fourth International Petroleum
Technology Conference (IPTC). Liu
currently serves as co-advisor for
the 2013 IPTC Conference Program
Committee. He earned a PhD in
petroleum engineering from Heriot-
Watt University, Scotland, and is
also an honorary professor at China
PetroleumUniversity.JPT
HOW BOARD MEMBERS ARE NOMINATED
Anyone can nominate a candidate for a Board position. The nomination period
opens in September each year, and runs through 1 December for the position of
president, and through 15 December for other open Board positions.
Next years list of open positions, nominee qualifications, and nomination
forms, as well as further submission guidelines, will be available sometime during
September at this location: http://www.spe.org/about/nominate.php. The process
involves filling out an online nomination form and attaching supporting documents
that include a CV, rsum, and letters of support.
About the Board of Directors
SPE is governed by a 27-person Board of Directors composed of member
representatives from around the world. Each of SPEs regions and Board-endorsed
technical specialties are represented by a director. These directors, together with
two at-large directors, the president, president-elect, immediate past president,
and vice president of finance, constitute the SPE Board of Directors.
About the Election Process
Submissions made using the online process are reviewed by the Nominating
Committee. This committee is chaired by the immediate past president and meets
in January to make recommendations for the available positions. The 12-member
2013 Nominating Committee Roster can be viewed at http://www.spe.org/about/
docs/nominatingroster.pdf.
Nominating Committee recommendations are submitted to the Board of
Directors for ratification at its March meeting. Members can consider the Board-
approved nominees through biographical information provided via www.spe.org
and through the article you are reading, which is mandated to appear in the April
issue of the Journal of Petroleum Technology.
The SPE Constitution provides for these nominees to stand as elected unless
SPE members nominate additional candidates by 1 June. Additional nominations
require a petition from at least 1% of SPE membership or, for regional director
nominees, 1% of the regions membership (with no more than 75% of the
petitioners from any one section). The Constitution also specifies provisions for a
ballot election if any qualified petitions are received by 1 June.
If the Board slate is elected, the person nominated president would take
officeas president-elect at the close of the societys Annual Technical Conference
and Exhibition (held this year in New Orleans, Louisiana, USA, 30 September
2 October). The other nominees would begin 3-year terms at this time as well.
BoardNoms.indd 61 3/25/13 7:44 AM
MANAGEMENT
62 JPT APRIL 2013
Over the past several decades, the
upstream oil and gas industry has devel-
oped into a three-way structure consist-
ing of operating companies, national
oil companies, and service companies.
In the absence of a major market need,
such a triangular structure worked well
enough to keep the industry functioning.
As developing economies in countries
such as China, India, and Brazil started
to become major petroleum consumers
in the early 2000s, crude oil prices began
to skyrocket. The global oil supply and
demand situation remains relatively tight
(Fig. 1). Even today, the industry can
barely meet peak demand of 90 million
BOPD. The triangular structure now falls
short of meeting market needs.
A large part of the problem is that
all the easily available oil has been found
and much has been depleted. Growth
potential now is in unconventional oil,
Arctic resources, and improved recovery
factors in mature areas. Development of
these petroleum resources requires inno-
vative and cost-effective technologies.
These technologies must also be safe and
environmentally benign. While many of
them are being, and will be, developed
by the upstream industry, many more
can, and should, leverage technological
advances taking place in other industries.
Technology transfer from other
industries is not a new phenomenon.
From time to time, the upstream industry
has benefited from innovations in adja-
cent markets such as the military, medi-
cal, optics, and information technology
sectors. For example, military technolo-
gy developed during World War II played
a large part in modernizing the upstream
industry in the 1950s and later years.
Some of the innovations that migrat-
ed from military technology include
shaped charges, gravity-based struc-
tures, and reeled pipelines and umbili-
cals. Shaped charges were adopted by the
industry for use in tubular perforation
and separation. Towed by the Allied forc-
es from Britain, concrete gravity-based
structures were flooded in place off the
coast of France to serve as breakwaters
during the Invasion of Normandy. Later,
similar structures were used in the design
of offshore oil production facilities.
Reeled pipelines and umbilicals, used to
supply fuel across the English Channel
to Allied troops landing in Normandy,
became the basis for the coiled tubing
and umbilical techniques now used in oil-
field operations.
More recently, nuclear magnetic
resonance and digital core analysis devel-
oped in the medical and chemical fields
respectively, have fostered technological
advances in exploration and production.
However, as significant as past technol-
ogy transfer has been, it has occurred
haphazardly. What is now needed is a
more aggressive, organized system for
the transfer of external technology into
our industry. To create the ecosystem
necessary to accomplish this, we first
must honestly address a number of issues
that impede technology transfer.
Not on My Watch
Perhaps the most common stumbling
block to external technology uptake in
Advancing Industry Technology:
A New Ecosystem for Innovation
Mukund Karanjikar, SPE, Technology Holding; William Pike, SPE, Leonardo Technologies;
and Dolly Chitta, Ceramatec
Fig. 1Historically, global oil production has not kept up with demand, in part
because of the slow transfer and uptake of new technologies. Source: Energy
Information Administration
75
80
85
90
World Oil Supply and Demand

65
70
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Supply
Demand
B
O
P
D
,

m
i
l
l
i
o
n
s
ManagementApril.indd 62 3/14/13 1:34 PM

63 JPT APRIL 2013
our industry is inbred aversion to risking
the success of a project by introducing a
new, untried technology. Though under-
standable, the avoidance hinders the
transfer and adoption of technology. We
must alter this mind-set to expand our
notion of acceptable risk for the deploy-
ment of new technologies. Companies
should enhance their risk-taking appetite
for early-stage technology. It is worth-
while to invest the small dollars early to
assess the result.
Quarterly Performance
A second roadblock is the focus on quar-
terly financial performance. The drive to
meet or exceed financial analysts expec-
tations each quarter, if taken to excess,
leaves little room for spending on true
technology innovation and transfer.
Technology development and deploy-
ment is a long-term exercise, often hold-
ing little hope of short- or intermediate-
term return on investment. Nonetheless,
we should overcome our reluctance to
invest in new technology.
Managed Chaos
A systematic approach is critical for large
capital projects. However, systematic
thinking applied to innovation may con-
strain it. You cannot systematize inno-
vation. The fostering of new technol-
ogy, whether transferred from without
or developed within, involves a level of
chaos that must be managed. Cultivated
land yields only a limited variety of flow-
ers compared with the myriad of flower
types found on uncultivated landas
long as you are willing to accept some
weeds. In innovation, you will never
know the type of flower you want to grow,
so let hundreds grow. Some will sell, oth-
ers will not.
Failure of Traditional Transfer
Traditionally, the assumption has been
that technology transfer is accomplished
by means of news releases, articles, con-
ferences, exhibitions, and presentations.
While these vehicles have functioned to
some extent, they have not adequate-
ly disseminated the technology within
and, especially, outside of the industry
for which they were developed. Although
traditional technology transfer, partic-
ularly within a targeted industry, will
continue to have its place, it must be
augmented with a robust, systematic
technology transfer system.
A Proprietary World
The upstream industry for decades has
been obsessed with protecting propri-
etary information. For exploration and
some well performance data, this is jus-
tifiable. However, in the larger context
of just about everything else a com pany
doesincluding technology develop-
ment and transferthis can be counter-
productive. Companies eventually realize
they do not have all the pieces of a solu-
tion. Being overprotective of their infor-
mation may stand in the way of devel-
oping the best solution for individual
companies and the industry.
A Way Ahead
There must be a proactive element to
technology development and transfer.
Yet todays industry practices and stan-
dards militate against the emergence of
that element in companies. Technolo-
gy transfer and development will not
improve without a new mechanism to
promote this improvement outside the
traditional structure.
Besides companies, professional
organizations are involved in technology
transfer. Some of them are SPE, the Society
of Exploration Geophysicists, and a num-
ber of other petroleum professional soci-
eties, such as the International Association
of Drilling Contractors and the Society of
Petrophysicists and Well Log Analysts. In
addition, there are societies that overarch
many industries, such as the American
Society of Mechanical Engineers.
It is reasonable that these associa-
tions could take on an expanded role in
technology transfer among their disci-
plines and with the innovative national
laboratories in various countries. Spe-
cifically, it would make sense for these
societies and the national laboratories
to form internal technology transfer task
forces that, in turn, participate in an
encompassing technology transfer body
comprising the task forces from the soci-
eties and the labs. The objective would
be to disperse disparate technologies in
industries where they could create addi-
tional benefit.
Companies need to step up their
efforts to support such an initiative. They
can appoint representatives, offer finan-
cial and other resources, and talk more
openly about challenges. The solution
can be proprietary, but not the recog-
nition of the need. Furthermore, com-
panies need to have a top management
sponsor for the effort and to establish the
quest for unconventional solutions as an
institutional practice.
If we do not undertake this impor-
tant project, we risk falling further behind
the technological curve, waiting for the
industrys companies to correct internal
issues that are not easily correctable. And
that puts our ability to meet emerging oil
and gas demand in jeopardy. JPT
ManagementApril.indd 63 3/25/13 7:25 AM
CONFERENCE PREVIEW
66 JPT APRIL 2013
When it comes to annual events dedicat-
ed to drilling, exploration, and environ-
mental protection of the worlds offshore
oil and gas resources, the Offshore Tech-
nology Conference (OTC) is the most
well-known and most widely attended
geographically. The 44th annual edition
of the conference will be held 69May at
Reliant Park in Houston, Texas.
Technical Program
and Special Events
The program offers the opportu-
nity to gain key insights by leading
experts on emerging technology, proj-
ect updates, best practices, safety and
environmental issues, and the changing
regulatoryenvironment.
The technical program highlights
new applications in subsalt geosciences,
safety and environmental management
systems, unconventional subsea explo-
ration and mining, deepwater high-
pressure/high-temperature well con-
struction, fiber optics, marine geohaz-
ards, and pore-pressure prediction. Pre-
sentations cover subjects such as con-
tinuing advancements in flow assuranc-
es, floating liquefied natural gas (LNG),
submarine slope stability, next-gener-
ation vessels, deepwater metallic ris-
ers, ocean mining, composite piping
systems, remotely operated and auton-
omous underwater vehicles, and sub-
sea processing technology. The sched-
ule also features sessions that high-
light new developments in local power
generation for offshore facilities, and
geotechnical engineering for renew-
able energy.
Special events include the Annual
OTC Dinner, the OTC University R&D
Showcase, topical breakfasts and lun-
cheons, an ethics breakfast, industry
breakfasts, The Next Wave daylong pro-
gram for young professionals, and Ener-
gy Education Institute sessions for teach-
ers and high school students.
Ethical questions are encountered
daily by offshore companies and their
employees, and they can be challenging
in certain environments. An ethics break-
fast on Monday, Ethics in the Dynamic
Offshore Industry, will be given by Bar-
bara Thompson, senior vice president
at Aker Solutions, and Dan Tearpock,
chief executive of Subsurface Consultants
andAssociates.
Awards and Annual OTC Dinner
The 2013 Distinguished Achievement
Awards will be presented on 5 May at the
Annual OTC Dinner at Reliant Stadium.
Ken Arnold, senior technical advisor at
Worley Parsons, will receive the award
for individual achievement, and Total
Exploration and Production will receive
the corporate achievement award. The
Heritage Award will be presented to E.
Dendy Sloan Jr., professor emeritus, Col-
orado School of Mines, and James Brill,
professor emeritus, University ofTulsa.
The dinner provides an opportu-
nity for industry leaders to network
with international colleagues, and rais-
es funds for the Offshore Energy Center
in Galveston, Texas. The mission of the
center is to increase awareness about the
oceans oil and gas resources; document
the technological accomplishment of
their safe and environmentally responsi-
ble discovery, production, and delivery;
and delineate the industrys heritage.
The center works through its Ocean Star
Offshore Drilling Rig Museum and Edu-
cation Center, the Offshore Pioneers Hall
of Fame, and its educational program for
students, teachers, and thepublic.
The University R&D Showcase
allows universities to share their cur-
rent and planned offshore technolo-
gy research and development projects.
Each participating university will show-
case its projects on one day of the confer-
ence. Participating universities will also
receive four complimentary access pass-
es for the day of their showcase.
The Spotlight on New Technol-
ogy Award program is exclusively for
OTC exhibitors and showcases the latest
and most advanced technologies. Win-
ners are selected from among all exhib-
iting companies, including divisions
andsubdivisions.
Panel Sessions
Nine panel sessions will take place dur-
ing the conference. The Monday morn-
ing panel is Agile Project Manage-
ment, moderated by Dick Westney,
founder and director of Westney Con-
sulting Group. The panel will discuss
how operators and contractors adapting
to the volatile environments of todays
offshore projects can adopt approach-
es that allow them to quickly react to
changing circumstances and econom-
ic drivers during project definition and
execution. The panel will feature oper-
ator and contractor organizations that
successfully implemented such agile
project-management strategies. Panel-
ists are Stuart Wheaton, group devel-
opment and operations manager,
Tullow Oil; Sandeep Khurana, manager
of development, major projects group,
Noble Energy; and Erik Namtvedt, pres-
ident ofFloaTEC.
Invited organization DeepStar, an
operator-funded global research and
development group, will provide per-
spective about its current program in
Legacy Powerhouse Industry Event
OTC Returns for 44th Edition
OTCPreviewApril.indd 66 3/14/13 1:35 PM

67 JPT APRIL 2013
another Monday panel. The organiza-
tions mission is to facilitate a coop-
erative, globally aligned effort to
identify and develop economically via-
ble deepwater methods to drill, pro-
duce, and transport oil and gas. Panel-
ists are Kevin Kennelly, vice president
of engineering and technology, Glob-
al Projects Organization, BP; Stephen
Thurston, vice president of deepwater
exploration and projects, Chevron; Ram
Shenoy, chief technology officer, Con-
ocoPhillips; Alain Goulois, vice pres-
ident of research and development,
Total E&P; John Gremp, chairman and
chief executive, FMC Technologies; and
Occo Roelofsen, director of global oil
and gas practice, McKinsey and Com-
pany. The moderator is Greg Kusinski
of Chevron.
A Monday afternoon panel, State
and Federal Coordination on Offshore
Regulation Policy, chaired by Gamal
Hassan of ADH International Group,
and moderated by David Holt, pres-
ident of Consumer Energy Alliance,
will discuss the appropriate role of US
coastal states and the US federal gov-
ernment in making decisions about US
offshoredevelopment.
A Tuesday morning panel, Global
Energy Outlook: Shaping the Future,
will be chaired by Gamal Hassan of ADH
International Group.
A Tuesday afternoon panel, Active
ArenaChina: Energy, Technology, and
Industry, will be cochaired by Joseph
M. Reilly of ExxonMobil and Doreen
Chin of Shell International E&P. The ses-
sion will present the perspectives of sev-
eral major Chinese corporations. Topics
involve Chinas domestic demand and
energy source transition, its role as a
global explorer and producer and as
a major global service and technology
supplier. Panelists are Xu Erwen, Chi-
nese consul general in Houston; Dwayne
Breaux, president and chief executive,
Wison Offshore and Marine USA, and
executive vice president, Wison Offshore
and Marine; Yan Cunzhang, president,
PetroChina CCAD; Yang Yun, executive
president, China Offshore Oil Engineer-
ing; Wu Qiang, vice president, CSSC; and
Muthu Chezhian, chief technical officer,
Rongsheng Offshore andMarine.
A Wednesday morning panel,
Megaprojects: Exploring the Opportu-
nities and Challenges, is moderated by
Bob Fryklund, vice president of IHS.
Multiple operators in megaresource
areas result in simultaneous devel-
opment and massive competition for
resources, typically in areas where little
infrastructure previously existed. Such
large projects create regional econom-
ic zones and manpower and materials
challenges, and discussion will consider
these issues as they relate to operators,
host governments, and service compa-
nies. Panelists are Clive Vaughn, chief
executive for upstream, Foster Wheel-
er; Liam Mallon, vice president for Afri-
ca, ExxonMobil; Rob Kretzers, execu-
tive vice president of projects, Shell;
Luc Mesier, senior vice president, Con-
ocoPhillips; and Carlos Tadeu da Fraga,
executive director,Petrobras.
A panel on Wednesday afternoon,
Integrating Stakeholder Interests in
the Global Offshore Industry, is chaired
by Buford Pollett of McDermott Middle
East. The panel comprises multinational
industry experts and government offi-
cials, discussing the opportunities, chal-
lenges, and wayfinding for the offshore
industry. Panelists are George Nowack,
German sector project manager, Nord
Stream; Giambattista De Ghetto, senior
vice president, safety, environment, and
quality, Eni Algeria Production; Francis-
co Vacas, health, safety, environmental,
and quality manager, Eni US Operating;
Charlie Williams, executive director,
Center for Offshore Safety; Erik Milito,
director, American Petroleum Institute;
and Douglas Morris, chief of offshore
regulatory programs, US Department of
theInterior.
A panel Thursday morning, Value
Creation Through Global Technology,
will be chaired by Charles Knobloch of
Arnold and Knobloch. It will focus on
the changing role of technology devel-
opment, and the panel will explain
what, how, and why global technology
migration adds value to the industry.
Panelists are Bob Peterson, vice pres-
ident, CRA Marakon; Mike Bahorich,
executive vice president, Apache; Satish
Pai, chief technical officer, Shell; Mark
Little, vice president, GE; and Gary
Rich, vice president of global sales,
Baker Hughes.
A Thursday afternoon panel, Off-
shore Heavy Lifting Operations: Above
and Below the Waterline, will be co-
chaired by Han Tiebout of GustoMSC
and Marcus Krekel of Exmar, and mod-
erated by Denby Morrison of Shell. Pan-
elists are Anne Marit Hansen, Statoil;
David Ballands, London Offshore Con-
sultants; Graham Mapes, Jumbo Ship-
ping; Joop Roodenburg, Huisman Equip-
ment; Keith Smith, Shell; and Wim van
der Velde, Seaway Heavy Lifting.
Topical Breakfasts
There will be eight topical breakfasts
during the conference. The following is
a list of current speakers and topics:
Monday:
Unlocking the Future: BPs
Global Upstream, Lamar
McKay, chairman and president,
BP America
Energy Challenges and
Opportunities in Vietnam and
MORRIS FRYKLUND KNOBLOCH KAVANAGH
CONFERENCE PREVIEW
68 JPT APRIL 2013
Beyond, Do Van Hau,
president and chief executive,
Petrovietnam
Tuesday:
Indonesia: Offshore Economic
Development
Pluto Greenfield LNG
Development: From Exploration
Well to LNG Production in 7
Years, Richard Van Lent, vice
president of Pluto, Woodside
Energy; and Neil Kavanagh, chief
science and technology manager,
Woodside Energy
Wednesday:
An Improved Risk and Safety
Assessment Process, William
Cowardin, assistant vice
president, Alion Offshore
Mexico: Challenges and
Opportunity, Carlos Morales-
Gil, Pemex general director
Exciting Mozambique Gas
Development Activities, Cory
Weinbel, project manager
of Mozambique Facilities,
Anadarko
Industry Breakfasts
Organized by the conference and the US
Department of Commerce, three indus-
try breakfasts will provide expert views
on the business of emerging oil and gas
markets. They offer insight about the
countrys policy and opportunities for
petroleum trade and investment.
Tuesdays breakfast covers Mozam-
bique, Wednesdays the United Arab
Emirates, and Thursdays Myanmar.
Topical Luncheons
There are 10 topical luncheons at the
conference. The following is a list of
speakers and topics:
West Africa Development,
Diezani Alison-Madueke,
Nigerias Minister of Petroleum
Resources
Malaysia: The Role of National
Oil Companies in the Energy
Sector, Tan Sri Dato Shamsul
Azhar Abbas, president and
chief executive, Petronas Group
Development of Next
Generation Shipyards:
Considerations Towards the
Demands of the Offshore Oil and
Gas Industry, Weng Sun Wong,
president and chief executive,
Sembcorp Marine
Status and Future Plans of
Omans Energy Industry,
Mohammed bin Hamad Al
Rumhy, Omans Minister of Oil
and Gas
Safely Pushing the Deepwater
Envelope to Create Value,
Gerald Schotman, executive vice
president, innovation, research
and development, and chief
technical officer, Royal Dutch
Shell
Pre-Salt Brazil Update
Leveraging Our Learnings to
Enhance Our Future, Mike
Ustler, president, BP Gulf Coast
Restoration Organization
Business Innovation: A New
Voyage for Independents,
Susan Cunningham, senior
vice president, exploration and
business innovation, Noble
Energy
Angola Energy Sector: Plans
and Investment, Jose Maria
Botelho de Vasconcelos,
Minister of Petroleum, Angola
Safety and Environmental
Management Systems Policy,
James Watson, director,
US Bureau of Safety and
Environmental Enforcement
The Next Wave: Young
Professionals Event
On Monday, The Next Wave program will
focus on how unconventional and renew-
able resources are expected to contrib-
ute to the energy mix, and the potential
impact on conventional energy markets.
The keynote speaker is Helge Haldorsen,
vice president of strategy, Statoil. Panel-
ists are Scott Tinker, director, Bureau of
Economic Geology, and state geologist of
Texas; Stephanie Cox, vice president of
human resources, Schlumberger; Susan
Farrell, managing director, upstream
practice, PFC Energy; Amy Jaffe, execu-
tive director of energy and sustainabil-
ity, University of California at Davis; and
Darryl Willis, vice president of subsur-
face, BP.
Teachers Workshop and
Student Events
Around 100 Houston-area classroom
teachers of grades 412 will attend a free,
daylong energy education workshop on
Thursday. The educators will receive
comprehensive, objective information
about the scientific concepts of energy
and its importance, and learn about oil
and gas exploration andproduction.
About 200 high school students will
learn about the opportunities offered by
the oil and gas industry during a STEM
(science, technology, engineering, and
mathematics) event on Thursday. JPT

For more information about the
conference, visit www.otcnet.org/2013/.
HALDORSEN
MORALES-GIL WATSON ABBAS
CONFERENCE AWARDS
70 JPT APRIL 2013
AWARD RECIPIENTS
ABB
Onboard DC-Grid
The Onboard DC-Grid uses direct current
(DC) as a means of transporting power
and energy to different clients on sea-
borne vessels, enabling variable speed
operation of the generator sets.
Compared with alternating cur-
rent (AC) distribution systems on ves-
sels, the DC system gives advantages
such as significantly reduced fuel oil con-
sumption, improved emission reduction,
reduced maintenance, and new opera-
tional modes with a more responsive ves-
sel system. The Onboard DC-Grid also
allows a more flexible vessel outline with
minimized electrical equipment layout
in order to affect and use new space
prospects for larger fuel or gas tanks, or
increased workspace.
The system conforms to existing
vessel configurations as well as new gen-
erations of equipment such as renew-
able energy sources or new propulsion
systems. The technology is based on an
open standard that gives ship owners
and operators a more competitive option
than AC distribution, while enabling
new and improved operational modes
andconditions.
OTC Spotlight on New Technology Awards
Laud Industry Innovators
Gentry Braswell, Staff Writer
T
he Offshore Technology Conference (OTC) announced the 15 technologies it has selected for its 2013 Spotlight on New
Technology Awards. The annual awards program showcases the latest in advanced technologies in offshore exploration
and production (E&P). The awards are applicable for hardware or software technologies. The criteria are as follows:
NewThe technology must be less than 2 years
old, dating to the first time it was introduced to the
marketplace, or was announced or advertised in a
conference, press release, or trade journal.
InnovativeIt must be original, groundbreaking,
and capable of revolutionizing the offshore E&P
industry.
ProvenIt must be proven either by full-scale
application or successful prototype testing. For
example, proposed software still in the development
phase would not qualify for an award.
Broad interestIt must have broad interest and
appeal for the offshore oil and gas industry.
SignificantThe technology must provide
significant benefits beyond existing technologies,
with environmental impact given strong
consideration.
The ABB Onboard DC-Grid, right, can be retrofitted on existing vessel configurations or integrated with next-generation
equipment such as new propulsion systems or renewable energy sources.
OTCSpotlightApril.indd 70 3/14/13 1:38 PM

71 JPT APRIL 2013
Baker Hughes
FASTrak LWD Fluid Analysis
Sampling and Testing Service
The FASTrak logging-while-drilling fluid
analysis sampling and testing technol-
ogy enhances critical decision making
about the reservoir by combining three
distinctservices.
The system incorporates accurate
real-time in-situ measurements of the
reservoir fluid, downhole capture and
retrieval to the surface of representative
fluid samples, and real-time formation
pressure tests for accurate mobility and
permeability information.
FASTrak provides the information
while drilling, and is a safer and more
cost-effective alternative to a drillstem
test. The service has several closed-loop
control systems for pressure testing,
mobility determination, and for pump-
ing during sampling and cleanup opera-
tions. Sensors perform the in-situ fluid
analysis, measuring the optical refrac-
tive index, sound speed, density, and vis-
cosity of the reservoir fluid. Downhole
fluid samples are retrieved by single-
phase tank technology. The fluids phys-
ical properties are then used to deter-
mine the reserves of a reservoir, and to
help predict its performance and eco-
nomics. Pressure-volume- temperature
properties, such as bubble-point pres-
sure, gas/oil ratio, viscosity, oil forma-
tion volume factor, and detailed compo-
sition are important for various reasons,
including analysis of well performance,
material-balance calculations, reservoir
simulation, and production-engineer-
ing calculations.
Dow Oil and Gas, PIH,
Trelleborg Offshore, and
Bayou Wasco Insulation
Dow Neptune Advanced Subsea Flow
Assurance Insulation System
The Neptune Advanced Subsea Flow
Assurance Insulation System is an end-
to-end flow assurance solution that pro-
tects and insulates subsea equipment,
line pipe, and field joints across a wide
application and in-service temperature
range. As validated in laboratory and
field testing, the system may be installed
and used in temperatures as low as 40C
(40F) and has been tested at operating
temperatures of up to 160C (320F). It is
impervious to hydrostatic compression
to at least 400 bar, or 4000 m of water
depth, and achieved K-factor of 0.15 W/
mK in a simulated service test (160C,
300 bar, 28 days) performed on pipe that
successfully completed a simulated reel-
ing test. A single, robust, and easy-to-
apply homogeneous layer of proprietary
The Baker Hughes FASTrak Logging-While-Drilling system combines real-
time in-situ fluid measurement, downhole capture and retrieval, and real-time
formation pressure tests.
The Dow Neptune Advanced Subsea Flow Assurance Insulation System
protects and insulates subsea equipment, and has been tested at operating
temperatures of up to 160C.
CONFERENCE AWARDS
72 JPT APRIL 2013
Neptune subsea flow assurance insula-
tion over Neptune Fusion Bonded Epoxy
(for line pipe and field joint only) elimi-
nates the need for multiple and adhe-
sive tie layers, contributes to a thinner
coating profile, and maintains a consis-
tent low K-factor from tree to line pipe to
field joint, thus reducing potential risks
associated with bonding dissimilar and
potentially incompatible materials.
FMC Technologies
Condition and Performance
Monitoring
Condition and Performance Monitoring
(CPM) is a software system and service
developed by FMC Technologies to meet
requirements for operational and mainte-
nance excellence for subseaapplications.
A subsea system is a complex
arrangement of components where the
effect of faults may be difficult to trace
back to the root cause. With the added
complication of remote location, any
fault may be difficult and costly to rec-
tify. Also, subsea systems provide much
information through instrumentation,
flow, and response during operation. The
CPM system presents an opportunity to
monitor and assess component health
throughout the life of the field.
The CPM combines continuous
monitoring of the system with a historic
database that will enable trends and devi-
ations to be identified. It provides the
operator with early warning when com-
ponents start to deteriorate, enabling
fault-finding, proactive response, and
the ability to plan required mainte-
nance resulting in minimal disruption
toproduction.
FMC Technologies and
Sulzer Pumps
High Speed Helico-Axial Multiphase
Subsea Boosting System
In the effort to develop high-perfor-
mance, reliable, and cost-effective
boosting solutions, FMC Technolo-
gies and Sulzer Pumps have developed
a new, high-speed 3.2-MW, 5,000-psi
Helico-Axial Multiphase Subsea Pump.
The pump uses hydraulics from Sulz-
er paired with FMCs advanced perma-
nent magnet motor technology from its
Direct Drive Systems.
The high-power density permanent
magnet motor drives the pump, provid-
ing higher speeds, high efficiency, and
greater capacity compared with conven-
tional induction motors. This unique
motor opens new possibilities, enabling
multiphase pumping to take place in
deeper waters and with longer stepouts.
It also allows the use of a single pump in
place of multiple pumps.
The pump itself operates on a rotor-
dynamic pumping principle and is a
cross between a centrifugal pump and
an axial compressor. It consists of mul-
tiple stages of impellers (helico-axial-
type rotor) and circles of guide vanes
(diffuser-typestators).
FMC Technologies Condition and Performance Monitoring combines continuous monitoring with a historic database for
the identification of trends and deviations.
CONFERENCE AWARDS
74 JPT APRIL 2013
GE Oil & Gas
RamTel Plus and ROV Display Panel
The blowout preventer (BOP) is a criti-
cal piece for drilling operational safety on
onshore and offshore wells. When clos-
ing in a well with a BOP, knowing exactly
where the shear and/or sealing elements
are positioned is important. Using hard-
ware and software installed on the BOPs,
the ram blocks exact location and the
pressure to close and/or shear can be dis-
played on surface while the stack is sub-
merged in deep water. The RamTel Plus
provides operators with a direct method
of determining the ram position in addi-
tion to the standard method of using indi-
rect flowmeter calculations. By adding cyl-
inder pressure to a ram position location,
the system can also display when it has
sheared/sealed the tubular and will report
the corresponding pressure to shear.
Remotely operated vehicles (ROV)
can now access critical information when
the main BOP communication path is dis-
rupted. GEs ROV Display allows the ROV
to read stack sensor data, such as well-
bore temperature, wellbore/accumulator
pressure, and ram position subsea indi-
cators. The panel is battery powered, as
it is trickle charged from the multiplex
pod during normal operation or directly
by the ROV during emergencies. The ROV
light activates the panel gauges to pro-
vide digital readout.
Deepwater BOP Blind Shear Ram
GE Oil & Gas has developed the next-
generation technology for shearing and
sealing wellbore tubulars. The Blind
Shear Ram (BSR) is designed for use in
its ram blowout preventers (BOP) used
in offshore drilling. The BSR provides
an industry-first capability to shear
some 6-in. drillpipe tool joints while
achieving a wellbore seal holding up to
15,000 psi pressure differential.
The BSR allows drilling rigs to use
current BOP stack arrangements without
having to manage the spacing between
rams or create operational methods to
avoid drillpipe tool joints or thick walled
tubulars. It is designed to eliminate non-
shearable sections, allowing for greater
shearing flexibility.
Extensive testing witnessed by rep-
resentatives from several leading oil
companies has proven the BSRs ability
to both shear and seal, and testing has
shown its capability to successfully shear
buckled or off-centered tubulars. These
features enhance the overall capability of
the BOP when needing to close the BOP in
a well control situation.
Reelwell
Reelwell Riserless Drilling Method
Reelwell has developed the Reelwell Drill-
ing Method (RDM) with support from
Shell, Total, Statoil, Petrobras, and RWE.
The method comprises a dual drill-
pipe, top drive adapter, flow control unit,
and a dual float valve, and has a number
of applications including riserless.
The RDM-Riserless configura-
tion omits the riser, thereby dramatical-
ly reducing fluid volumes and enabling
drilling operations in ultradeepwater
from third- and fourth-generation drill-
ing units. Omitting the riser is possible
because the cuttings are transported to
the surface inside the dual drillstring,
so the dual drillstring acts as the riser.
The system also enables managed pres-
GE Oil & Gas blind shear ram
provides the capability to shear
6-in. drillpipe tool joints while
achieving a wellbore seal holding up
to 15,000psi pressure potential.
The Helico-Axial Multiphase Subsea Pump is a new, high-speed 3.2-MW,
5,000-psi pump that uses hydraulics from Sulzer Pumps and advanced
permanent magnet motor technology from FMC Technologies.

75 JPT APRIL 2013
sure drilling or underbalanced drilling
operations from floating drilling ves-
sels with two independent active barri-
ers. The design eliminates the risk of a
blowout being routed back to the rig as
occurred during the Macondo and West
Vanguardblowouts.
RDM-R represents a step change for
the drilling industry as it will enable drill-
ing in ultradeepwater with less costly rigs
than are being used today.
SBM Offshore
Drilling Riser Trip Saver
A floating offshore drilling and/or pro-
duction platform is equipped with a rail-
mounted transport system that can be
positioned at a plurality of selected posi-
tions over the well bay of the vessel.
The transport system can move a drill-
ing riser with a tensioner system and a
surface blowout preventer (BOP) from
one drilling location to another without
removing them from the well bay of the
vessel. Using the transport system, the
drilling riser is lifted just clear of a first
subsea wellhead and positioned over an
adjacent, second wellhead using guide-
lines to restrain the disconnected bottom
end of the riser during transfer.
The system does not require that
the drilling rig be used to lift off the sus-
pended drilling riser from the subsea
wellhead prior to transfer or to land the
suspended drilling riser once the trans-
fer is complete. The liftoff is performed
with the drilling riser tensioning system.
The transport system may then move the
upper end of the drilling riser (together
with its attached tensioner and BOP) to a
second drilling location without the need
to recover and redeploy the riser through
each individual well slot.
The system also allows for the drill-
ing riser to be parked on a subsea well-
head, while the drilling rig is skidded
and positioned over another well slot, in
order to deploy the production riser, run
the completion string, and install the sur-
face production tree.
ShawCor
Mobile Robotic Cutback System
Bredero Shaw has developed the Mobile
Robotic Cutback System, an innovative
end machining technology for insulat-
ed pipe. Offshore pipe is often insulat-
ed with specialized polymers to meet
demanding thermal performance cri-
teria. When individual lengths of pipe
are welded together, insulation must be
The Reelwell Riserless Drilling Method includes dual drillpipe, and a top drive adapter, flow control unit, and dual float
valve.
CONFERENCE AWARDS
76 JPT APRIL 2013
removed in a controlled way to allow welding. This removal is
called a cutback.
Some of the manual processes used to form the cut-
back in the past included wire brushing, grinding, and scrap-
ing. The most significant disadvantages of these methods are
safety risks of exposure to high-speed cutting devices, exces-
sive noise, high labor costs, inconsistent cutback profiles, and
the generation of large amounts of nonrecyclable waste. The
Mobile Robotic Cutback System addresses all these issues.
The system has been integrated into two specially
designed shipping containers, allowing it to be transported
and erected quickly without the need for concrete foundations.
It is faster, safer, and produces consistently higher quality cut-
backs with a greatly expanded ability to deliver new geome-
tries, thus allowing pipeline engineers to optimize the design
of the joint protection system and deliver a uniform coating
over the field joint, which ensures a consistent U value over the
pipe length.
Statoil
Remotely Welded Retrofit Subsea Hot Tap Tee
In August 2012 the worlds first remote- welded retrofit hot tap
tee connection was successfully completed in a 265-m water
depth at the sgard field in the North Sea. It is a cost-effective
Bredero Shaws Mobile Robotic Cutback System solves
manual cutback challenges such as exposure to high-
speed cutting devices, excessive noise, high labor costs,
inconsistent profiles, and nonrecyclable waste generation.
Statoils Remotely Welded Retrofit Hot Tap Tee
connection is a cost-effective method for new branch
pipelines.
The Drilling Riser Trip Saver method and apparatus
developed by SBM Offshore allows the drilling of multiple
wells from a single platform.
CONFERENCE AWARDS
78 JPT APRIL 2013
method for new branch pipelines, and
an important step toward more efficient
use of existing transportation infra-
structure in the development of oil and
gasresources.
Remotely controlled hyperbaric
welding is combined with a reinforce-
ment clamp structure and a branch pipe
design that allows a welded pressure bar-
rier. The new concept avoids the use of
seals and thereby can result in higher
robustness and reliability throughout the
design life of 50 years.
The new retrofit hot tap tee technol-
ogy is a continuation of the first phase
of the project in which a remote hot
tap cutting machine was developed and
qualified. The hot tap cutter has now
performed four offshore operations
and is proven at water depths down to
1000 m. The technology was first used
as part of the sgard subsea compres-
sion project to tie in the subsea com-
pressor station to existing pipeline sys-
tems. Since 1999, Statoil has worked sys-
tematically on the development of new
remotely operated hot tap technology
for offshorepipelines.
Superior Energy Services
Complete Automated
Technology System
Complete Automated Technology Sys-
tem (CATS) is an onshore and offshore
completion services rig that uses remote-
ly operated or preprogrammed robotics
to control various completion compo-
nents, including a snubbing unit, blow-
out preventer/well control stack, pumps,
circulation tanks, top drive, closing sys-
tems, and pipe handling systems as part
of one unit.
With minimal crew sizes and inte-
grated, cutting-edge software systems,
CATS allows for a safer, more precise
operation, and streamlined data col-
lection of operations, which draws the
petroleum service closer to a manu-
factured well design that allows for
consistent repeat performance of
completiondesigns.
Wrtsil
Wrtsil GasReformer
Associated gas or volatile organic com-
pounds (VOC) cannot normally be used
as flexible and efficient sources of energy
because of variations and inadequacies in
gas quality.
Gas quality involves uniformity
and the ability to withstand compression
in an engine (methane number, MN).
All combustion engines based on the
Otto cycle, including Wrtsils Dual Fuel
(DF) engines, need fuel gas of a high MN
(>80) to operate at full performance.
Superior Energy Services Complete Automated Technology System uses remotely operated or preprogrammed robotics
to control completion components.
Wrtsils GasReformer solves the challenge of low methane number gas
quality related to compression in combustion engines.
CONFERENCE AWARDS
80 JPT APRIL 2013
Hydrocarbons of a higher molecu-
lar weight such as ethane, propane, and
butane decrease the MN of the fuel gas.
When the MN is too low, the gas will
cause self-ignition, a phenomenon wide-
ly known as knocking, and the engine
would need to be derated. Derating
means less power output and a decrease
in engine performance. In the offshore
environment, these gases recovered from
separation processes or crude cargo han-
dling are typically either flared orvented.
The GasReformer solves the low
MN problem with a technology that
is based on steam reforming. Steam
reforming is a catalytic process in which
heavier hydrocarbons are converted
into methane, thereby improving the
MN to 1005. Regardless of the ini-
tial gas quality or variability, high MNs
in product gas are obtained. With this
technology, associated gas and VOC can
be used, thus improving Wrtsil DF
engine performance and fuelflexibility.
Welltec
Well Cutter
The Well Cutter is a tool that enables
efficient and safe drillpipe and casing
recovery operations without the need
for explosives. It is self-centralizing and
removes pipe incrementally so no shav-
ings are generated, and a smooth, pol-
ished surface remains after the bevelcut.
The tool uses a rotating head to
remove pipe incrementally, and the fine
debris from the cutting operation can-
not therefore cause any issues with com-
pletion or wellbore hardware. Also, the
resulting cut is a smooth surface that
could preclude the need for a polish-
ing trip with drillpipe. It is conveyed on
electric line for accurate depth control
and incorporates a fail safe mechanism
that prevents the tool from getting stuck
in case of powerfailure.
As an important health, safety,
and environmental improvement, the
tool eliminates the need for explosives
required by most industry alternatives.
Explosives can pose an operational risk,
especially when simultaneous opera-
tions are being conducted. Transfer of
explosives may also cause additional
logistical requirements and significant
operational delays. Considering the cost
of rigs, complex logistics, and exposure
of workers, the Well Cutter offers a safer,
faster, reliable, and more cost-effective
approach to cutting drillpipe and casing.
West Drilling Products
Continuous Motion Rig
The Continuous Motion Rig
(CMR) is a fully robotized rig
and provides continuous drill-
ing operation. CMR substan-
tially reduces the overall time of drill-
ing operations (up to 50%), and elim-
inates downhole problems associated
with differential sticking and pressure
fluctuations. The rig also reduces safety
risk by removing all workers from the
rig floor.
The CMR offers a continuous move-
ment of up to 1 m/s (3600 m/h), which
equates to maximum tripping speed. The
continuous drilling and circulation unit
enables the rig to drill and circulate con-
tinuously, and facilitates managed pres-
sure drilling.
The CMR technology has the poten-
tial to reduce drilling time up to 50%
and drilling costs in the range of 25%
to 35%. The main principle in this new
technology is the ability to run joint-
ed drillpipe and casing continuous-
ly, drill continuously with jointed drill-
pipe while maintaining circulation,
and robotize the drilling process. This
means that the CMR technology facili-
tates underbalanced drilling and man-
aged pressure drilling, and has full snub-
bing capabilities. JPT
The Welltec Well Cutter uses a rotating head to remove pipe incrementally,
preventing fine debris shavings from the cutting operation that could impede
well completion and hardware.
The Continuous Motion Rig
is fully robotized, eliminates
downhole problems associated
with differential sticking and
pressure fluctuations, and
reduces the overall time of
drilling operations.
82 JPT APRIL 2013
Helio Santos,
SPE, holds BS and
MS degrees in
civil engineering
from the Catholic
University in Rio
de Janeiro and a
PhD degree in geological engineering
from the University of Oklahoma. He
joined Petrobras as a drilling engineer
in 1983, having worked onshore and
offshore, and led several projects
on underbalanced drilling, wellbore
instability, deepwater drilling, and
drilling optimization in the research
and development center. In 2001,
Santos joined Impact Engineering
Solutions as vice president of
technology. In 2004, he became
president of Impact Solutions Group,
and, in 2007, he was also appointed
president of the Secure Drilling JV,
which was sold in June 2009. Santos
is currently president of Safekick
Limited, focusing on well control,
safety, and drilling optimization. He
has authored several papers, holds
two patents, and has served on several
industry committees, including the JPT
EditorialCommittee.
We all know that things have changed significantly for offshore drilling and comple-
tion in the last 3 years. Regulations have been reviewed, and operational procedures
and requirements have changed. Requirements for the well design to be reviewed by
independent parties and new equipment testing procedures and certification were just
a few additions that regulators brought to the scene. Several initiatives were launched
to develop equipment to cap flowing wells offshore, new ways to record and control
testing of critical equipment, and new systems to assess and monitor the barriers
present in the well more effectively.
The industry has shown a significant creativity, as usual, to demonstrate to soci-
ety in general that we can continue to drill and produce hydrocarbons offshore in a
responsible manner. And, by offshore, we now mean wells located in waters as deep
as 10,000 ft. In the industrys move toward these challenging environments, most of
the time we use technology known and proved for shallow waters and just resize the
equipment. However, the challenges are not restricted to a deeper column of water.
Many wells are facing additional challenging situations such as being subsalt or pre-
salt, having high-pressure/high-temperature prospects, and having total depths in
excess of 25,000 ft. Many specific conditions must be addressed in these new envi-
ronments, and simply extending the envelope of current solutions to more challenging
conditions may not be enough or suitable anymore. The lack of riser margin and the
challenges posed by a long chokeline during well control operations are just two exam-
ples of the new conditions that did not exist 30 years ago and, therefore, require a shift
in the thinking process to allow wells to be drilled and completed more economically
in these new challenging environments.
After a period of uncertainty for offshore operations, wells are now being
drilled again, albeit under more strict rules and guidelines. Most of the new rules
and guidelines have been applied to well design and the preoperational phase. It is
important also that operations be conducted under proper conditions, providing
people on the job with all the means and tools necessary for them to conduct their
jobssuccessfully.JPT
TECHNOLOGY
OFFSHORE DRILLING
AND COMPLETION
Recommended additional reading
at OnePetro: www.onepetro.org.
SPE 152861 A Solution to the Problems
Associated With Tight-Clearance
Boreholes: The Close-Tolerance Press-Fit
Stop Collar by J.A. Wimberg, Chevron,
etal.
SPE/IADC 151182 Blowout Preventer
Health Monitoring by Jim McKay, BP, et al.
SPE/IADC 150047 Successful
Qualification and Deployment of a High-
Pressure Drillpipe Riser in West Africa
by Mathieu Camus, Total, et al.
1ODCFocusApril.indd 82 3/14/13 10:35 AM
83 JPT APRIL 2013
T
he Hadrian-5 prospect in the
US Gulf of Mexico was drilled in
approximately 7,000 ft of water as
one of the first Gulf of Mexico wells
drilled after a deepwater moratorium
was imposed after the Macondo
disaster. This exploration well was
permitted under the new regulatory
requirements of the US Bureau of Ocean
Energy Management, Regulation, and
Enforcement (BOEMRE). In addition
to well-design regulations, BOEMRE
required operators to calculate a worst-
case discharge scenario and to develop
containment plans for that scenario.
The well was drilled and evaluated
in a safe manner with no significant
incidents, even though the geologic
formations encountered were different
thanpredicted.
Introduction
As a result of the April 2010 Macondo
disaster, the US government responded
with a moratorium on deepwater drilling,
reorganized its regulatory agency, and is-
sued new rules for offshore drilling.
In November 2010, BOEMRE is-
sued the Notice to Lessees and Operators
2010-N10. This notice to lessees and op-
erators (NTL) required operators to cer-
tify compliance with all applicable reg-
ulations and submit plans to contain a
worst-case discharge scenario as part of
the drilling permit application.
The Hadrian well is located in Block
919 of the Keathley Canyon in 6,941 ft of
water, approximately 220 nautical miles
southwest of the shorebase location in
Fourchon, Louisiana (Fig. 1). The pur-
pose of this exploration well was to eval-
uate the potential resource of the subsalt
Pleistocene, Pliocene, and Miocene for-
mations. On the basis of seismic data,
there were no shallow hazards and no
hydrocarbons above the salt structure.
The Hadrian-5 well had an approved
permit and a rig on location at the time
of the moratorium, but the work was sus-
pended and the rig was released to work
on the Macondo spill response. The drill
team, in conjunction with the geoscience
and regulatory organizations, revised the
exploration plan and the application for
permit to drill (APD) beginning in July
2010 to meet the new regulatory require-
ments. BOEMRE approved the revised
permit to drill in March 2011.
Planning and Permits
Following the Macondo disaster,
BOEMRE issued additional requirements
that operators must fulfill before reg-
ulatory approval is granted. Addition-
al work was required during the plan-
ning and permitting phase to meet these
newrequirements.
Interim final rules issued by BOEMRE
required operators to submit additional
details as part of the APD. Blowout pre-
venter (BOP) equipment was one area of
focus for the new rules. BOP control sys-
tem drawings and independent certifi-
cation of the BOP equipment design and
capability must now be submitted. The
Hadrian team worked closely with the rig
contractor, and an independent agency
provided the required documentation.
The BOP stack has six ram-type pre-
venters rated for 15,000 psi and two an-
nular preventers rated for 10,000 psi.
Post-Macondo Drilling in Deepwater
Gulf of Mexico Faces Added Challenges
For a limited time, the complete paper is free to SPE members at www.jptonline.org.
This article, written by Editorial Manager Adam Wilson, contains highlights of paper
SPE 154928, Challenges Associated With Drilling a Deepwater, Subsalt Exploration
Well in the Gulf of Mexico: Hadrian Prospect, by Mark C. Moyer, SPE, Scott B.
Lewis, SPE, Mike T. Cotton, SPE, and L. Miles Peroyea, SPE, ExxonMobil, prepared
for the 2012 SPE Deepwater Drilling and Completions Conference, Galveston, Texas,
2021June. The paper has not been peer reviewed.
Fig. 1Location of Hadrian-5 well in the Gulf of Mexico. KC=Keathley Canyon.
OD154928.indd 83 3/14/13 10:29 AM
JPT APRIL 2013
The stack has a shear ram capable of
shearing and sealing all drillpipe sizes
that would be run through it, a casing
shear ram capable of shearing the largest
diameter casing to be run through it, a
variable bore pipe ram, a fixed bore pipe
ram, another variable bore pipe ram, and
an inverted ram on bottom that serves as
the test ram.
The interim final rules now require
certification of the well design by a li-
censed professional engineer. As part of
the certification process, the profession-
al engineer reviewed and certified cas-
ing, cement, and barrier design. For the
Hadrian-5 well, the Hadrian team de-
veloped the well design with input from
key service providers. The design cal-
culations were reviewed and certified
by licensed professional engineers from
theoperator.
NTL 2010-N10 requires operators to
submit plans for containing the proposed
well in the event of a worst-case discharge
scenario. The Hadrian team worked
closely with the Marine Well Contain-
ment Company (MWCC) and BOEMRE to
develop a capping plan that fulfilled the
requirements of NTL 2010-N10.
MWCC provided most of the sub-
sea equipment, including a cap-
ping stack (Fig. 2), for the Hadrian-5
containmentplan.
A major component of the Hadrian-
5 well capping plan was demonstrating
wellbore integrity was sufficient for well
capping. If the wells mechanical and for-
mation integrity are sufficient to with-
stand the calculated loads with a 1.0 safe-
ty factor (assuming American Petroleum
Institute or manufacturer ratings for cas-
ing and wellhead equipment), then the
well design meets the criteria for capping
(Level 1).
The Hadrian-5 well design met the
Level 1 criteria.
Drilling Rig Features
The Maersk Developer is a sixth gen-
eration, dynamically positioned, dual
derrick, semisubmersible drilling rig
that was used effectively to drill the
Hadrian-5 well.
Inverted Test Rams. The rig is equipped
with an inverted 18-in. pipe ram in
the lowest ram cavity. This ram was fit-
ted with 47-in. variable bore ram
blocks and packers. This ram was
used successfully to test the BOP mul-
tiple times during construction of the
Hadrian-5 well.
Riser Gas Handler. This well was the
operators first use of a riser gas handler.
In the APD permit, it was agreed that
the riser gas handler would be tested
and used as designed for riser degassing
operations, but, in the event it failed,
it would be locked out with no require-
ment to pull the riser to effect repairs
during drilling of the well. The riser gas
handler was tested successfully upon ini-
tial installation of the riser and operated
as designed. The gas handler was used
effectively on occasion during well con-
struction to manage gas in the riser.
Remotely Operated Vehicle (ROV) In-
tervention Capability. Before spud
of the Hadrian-5 well, the Maersk De-
veloper ROV intervention hard piping
from each intervention panel to all the
BOP functions was increased to 1-in.-
diameter hard piping. This minimized
restrictions and facilitated faster closing
of the BOP components with the ROV.
BOP Stack Verification. The BOP was
certified by a third-party representative,
as required by BOEMRE. Before running
the BOP, BOEMRE was notified of the
timing for the surface stump test approx-
Fig. 2MWCC Interim Containment
System capping stack.
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imately 48 hours before initiating the
test. BOEMRE sent three inspectors to
witness the test. The BOP was tested suc-
cessfully nine times on a variety of dif-
ferent drillpipe sizes, as per regulations.
Drilling Program and Execution
The well was spudded by jetting 36-in.
structural casing to a depth of 7,348 ft,
which was 302 ft below the mudline. A
28-in. tricone drill bit with a mud motor
was installed inside the structural cas-
ing. After the casing was firmly set, the
drill-ahead feature was engaged and the
well was drilled to 9,646 ft with seawa-
ter and gel sweeps. A string of 22-in.
conductor casing was run with a high-
pressure wellhead and was landed in the
low-pressurewellhead.
The objective of the next section
was to drill a 17-in. hole into the top of
salt and set casing in the salt formation.
The 13-in. casing was set approximate-
ly 500 ft below the top of salt.
A 12-in. bottomhole assem-
bly (BHA) was used to drill below the
13-in.-casing shoe. After drilling ap-
proximately 2,000 ft of salt, an over-
pressured oil zone was encountered, re-
sulting in an influx to the wellbore. This
was quickly detected by the pressure-
detection team and rig crew, and the well
was shut in with the BOP.
This section was redrilled with a
1214-in. hole opener assembly to
a depth of 14,797 ft, or approximate-
ly 650 ft below the oil zone. An 11-in.
liner was run and cemented back to the
13-in. casing.
A 10-in. pilot hole was drilled
below the 11-in. liner to provide an op-
timum hole size for logging while drilling
(LWD) tools. The base of salt was encoun-
tered at 15,574 ft, and drilling contin-
ued for another 1,500 ft, where an ex-
tremely abrupt pore pressure increase
was encountered. For the second time,
the pressure-detection team and rig crew
responded promptly and shut in the well.
A rotary steerable BHA was success-
ful in bypassing the original hole section,
and three 90-ft cores were collected. The
hole was enlarged with a 1012-in.
hole-opener BHA. A 9-in. liner with
semiflush connections was run to a depth
of 17,020 ft and cemented.
The 8-in. hole section was drilled
and encountered a steady increase in
pore pressure as measured with connec-
tion gas units (pumps off), shale resis-
tivity decrease, and the LWD formation
pressure tool. A 7-in. liner was run and
cemented at 18,249 ft.
A 6-in. hole section was drilled
to total depth of 19,631 ft. The drill-
string consisted of three sizes: 5, 5,
and 4 in. The 5-in. drillpipe was run
inside the riser and 13-in. casing, the
5-in. drillpipe was run inside the 11-in.
liner, and the 4-in. drillpipe was run
inside the 9-in. liner and the 7-in. liner
(as well as the open hole).
Challenges
During drilling operations, the well
presented some challenges not typi-
cally experienced while operating in
the Gulf of Mexico. The Hadrian team
and rig crew responded successfully to
thesechallenges.
Narrow-margin drilling proved to
be a more significant issue than original-
ly anticipated. As operations progressed,
it was determined that the pore pres-
sure experienced below salt was high-
er than planned, which compounded
thechallenge.
OD154928.indd 85 3/25/13 7:48 AM
JPT APRIL 2013
The well construction was revised
to include only liners below the 13-in.
intermediate casing. Structurally, the
13-in. casing was robust enough to
withstand the pressures needed to drill
to total depth. Running only liners below
the 13-in. casing increased the circu-
lating area around the drillstring and re-
duced the equivalent circulating density
(ECD) while drilling.
The team understood and took ad-
vantage of the compressibility effects of
the nonaqueous drilling fluid (NADF).
NADF is more compressible than water-
based fluids and exerts a greater equiva-
lent hydrostatic pressure downhole than
recorded at surface. Taking this into con-
sideration, the team was comfortable
running surface mud weights at or slight-
ly above expected pore pressures, know-
Fig. 3Final plugging and abandonment scheme. MD=measured depth;
TVD=true vertical depth; NAF=nonaqueous fluid; OH=openhole.
Water Depth=6,941 ft
Subsurface/7,047 ft
Derrick Floor (DF)
36-in. Casing Jetted
to 7,348-ft DF
Top of Salt at 12,269 ft MD
22-in. Casing
at 9,646-ft DF
13
5
/8-in. Casing at 12,771-ft DF
6
1
/8-in. Hole,19,631 ft MD/19,628 ft TVD
11
7
Base of Salt at 15,572 ft MD
9
5
7-in. Casing at 18,249-ft DF
OH Plug #1
19,06819,631 ft
OH Plug #2
18,53919,068 ft
OH Plug #3
18,26318,539 ft
OH Plug #4
18,09918,263 ft
7-in. Safety Valve
at 18,080 ft
Tested to 2,150 psi
Isolation Plug
17,54018,080 ft
Tested to 2,178 psi
7-in. Liner Top Plug
16,15216,743 ft
(Tagged with 15k)
9
5
/8-in. Liner Top Plug
14,16814,630 ft
11
7
/8-in. Liner Top Plug
12,05012,350 ft
13
5
/8-in. Safety Valve at 12,350 ft
Tested to 2,300 psi
Surface Plug
7,1507,450 ft
Seawater
13.4-lbm/gal NAF
Corrosion Cap
13.4-lbm/gal NAF
13.4-lbm/gal NAF
13.4-lbm/gal
NAF
Legend:
Rafted Carbonate
Salt
Sand
OD154928.indd 86 3/25/13 7:48 AM
87 JPT APRIL 2013
ing that the NADF compressibility would
provide the extra trip margin necessary
to pull out of the hole safely without the
risk of swabbing in formation fluids.
Underreaming was used in the tight
clearance intermediate hole sections,
primarily to improve casing running and
the subsequent cement job but also to re-
duce ECD while drilling these hole sec-
tions. In this drilling program, there were
no failures with any of the underreamers.
Plug and Abandonment
Hadrian-5 was temporarily plugged and
abandoned after drilling to preserve
the capability to be re-entered later. Ce-
ment plugs were placed across all open-
hole hydrocarbon zones and across all
liner tops, and the final cement plug was
placed within approximately 100 ft of
the mudline (Fig. 3). BOEMRE now re-
quires a professional engineer to certify
the plugging and abandonment plans and
procedures. Also, a negative test is re-
quired before displacing kill-weight mud
from the wellbore in preparation for un-
latching the BOPs and riser.
The plan on Hadrian-5 was to dis-
place the well with seawater after a con-
clusive negative test, so the negative test
was conducted by displacing seawater
down the drillstring. When the entire
drillstring was displaced with seawater,
the inverted BOP test rams (designed
to hold pressure from above for test-
ing other BOP components) were closed
to isolate the hydrostatic pressure ex-
erted by the column of weighted NADF
in the riser. Next, the surface pressure
was slowly released from the drillstring
in stages until it was bled down to zero
and returns were monitored through the
topdrive to the trip tank. A successful
test was observed when the trip tank
was static (no gains) over the period of 1
hour, indicating that the downhole barri-
ers were sufficient to counteract forma-
tion pressures deeper in the well.
Conclusions
Early collaboration with the
rig contractor and key service
providers is critical to developing
an effective well plan and
obtaining regulatory approval.
Well-control expectations need
to be clearly communicated
before the start of the well, and
an overall emphasis on pressure
detection and response must
be maintained throughout
theprogram.
The industry is capable of safely
drilling exploration wells in deep
water even when the downhole
conditions are not fully known.
MWCC should be an effective
organization to support the
industry in the event of a
deepwater well-control incident
in the US Gulf of Mexico.
Plugging and abandonment
regulations should allow for
casing annuli not to be sealed
with cement, provided that
adequate cement is pumped to
cover the hydrocarbon zones
and a permanent liner top
packer is installed and tested;
this will alleviate trapped
annular pressure and improve
the chances of a successful well
capping in the event of a worst-
case discharge scenario. JPT
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88 JPT APRIL 2013
T
he Goliat field will be the first
offshore oil field in the Barents Sea
and the worlds northernmost offshore
oil field. The field is in the southwestern
part of the Barents Sea, close to the
coastline in an environmentally
sensitive area. The implementation of
the Goliat oil spill preparedness plan
will introduce new technologies and
methods, the results of projects and
initiatives developed in cooperation with
the Norwegian Clean Seas Association
for Operating Companies (NOFO).
This will give an increased oil spill
response capability, especially for the
coastalzone.
Goliat Field Development
The Goliat field is an oil and gas discov-
ery in the southwestern Barents Sea. Go-
liat contains two main oil-bearing res-
ervoirs (Realgrunnen and Kobbe) with
2810
6
std m
3
of recoverable oil reserves.
In addition, the field contains 8.810
9

std m
3
of gas. The field is approximately
85km from the city of Hammerfest in the
county of Finnmark and approximately
50 km southeast of the Snhvit offshore
gas field (Fig. 1). The water depth in the
license area is between 248 and 436 m.
The Goliat field is to be developed by
22 subsea wells drilled from eight tem-
plates linked to a circular floating pro-
duction, storage, and offloading (FPSO)
facility (Fig. 2).
The Goliat development represents
one of the largest industrial projects ever
undertaken in northern Norway. The well
stream will be processed on the FPSO,
and the oil will be exported to market
using tankers. During the first phase,
produced gas will be reinjected to pro-
vide pressure drive. This will, in addition
to the injection of seawater, attain the
total pressure drive necessary to achieve
optimal production of the resources. The
facility will run on power supplied from
land combined with an onboard power-
generation system.
In 2009, the Norwegian parliament
approved the plan for development and
operation for the Goliat field, with seven
specific conditions that the project needs
to fulfill. For the first time in Norway, one
of the specific conditions was related to
oil spill preparedness: In the light of
the particular challenges in the northern
areas and the Goliat fields proximity to
the coast, oil spill contingency strategies
must be assigned very high priority. The
operator shall carry out a detailed eval-
uation of the infrastructure within the
area of influence of potential polluting
emissions and discharges from the Go-
liat field. The operator shall implement
measures designed to consolidate the oil
spill contingency strategies in the affect-
ed municipalities .
Goliat Oil Spill Contingency
The Goliat oil spill contingency require-
ments are based on environmental risk
assessments and oil spill contingency
analyses conducted according to prevail-
ing industry guidelines in Norway.
For the Goliat exploration and pro-
duction drilling, the dimensioning sce-
nario is a surface spill of oil from the Re-
algrunnen formation, with a weighted
discharge rate of 4594 m
3
/d and weighted
duration of 7 days.
The oil spill contingency in Norway is
divided into four consequence-reducing
barriers (Fig. 3) in addition to risk-
reducing barriers, which are mainly
well and process barriers. Norwegian
consequence-reducing barriers for an oil
spill are
Barrier 1Combating oil spills in
the open sea close to the source
of the discharge
Barrier 2Recovery of oil along
the drift trajectory of the spill
(between the source and the
coast)
Barrier 3Combat measures
in coastal areas and near the
shoreline
Barrier 4Measures for cleaning
the beaches
The barriers in the open sea will be
made up by NOFO systems consisting of
oil-recovery vessels with tank capacity
of 10002000 m
3
, 400 m of heavy off-
shore boom, and skimmers with capac-
ity of up to 10,000 B/D. The coastal bar-
rier will be based on the use of smaller
vessels, including a pool of fishing ves-
sels and equipment suited for coastal
waters. On the beaches, the regional in-
termunicipal contingency organizations
will have a key role, assisted by region-
al, national, and international resources.
The Goliat oil spill contingency will also
include the capability to use ship-based
dispersantsystems.
The aim for Goliat oil spill prepared-
ness is to be robust, effective, and well
adapted to local conditions. The aim will
be realized through the following three
specific initiatives new to Norwegian oil
fields, in addition to other initiatives:
First Barents Sea Oilfield Development
Emphasizes Oil Spill Preparedness
SPE 156773, Implementation of the Oil Spill Preparedness for the Goliat Offshore
Oilfield DevelopmentThe First Oilfield Development in the Barents Sea, by Erik
Bjrnbom and Ole Hansen, Eni Norge; Frode Engen, Statoil; and Sjur W. Knudsen,
Norwegian Clean Seas Association for Operating Companies, prepared for the 2012
SPE/APPEA International Conference on Health, Safety, and Environment in Oil and
Gas Exploration and Production, Perth, Australia, 1113 September. The paper has
not been peer reviewed.
OD156773.indd 88 3/14/13 10:32 AM
90 JPT APRIL 2013
Integrated field oil spill detection
and surveillance system
Permanent use of fishing vessels
Special acute-phase task force
Integrated Field Oil Spill
Detection and Surveillance
System (All Barriers)
For a number of years, Norwegian au-
thorities have focused on early detec-
tion and monitoring of acute pollution.
Goliat has focused on this issue since the
field was identified, and leak detection
has been included in the scope of work
for the different Goliat development con-
tracts (subsea production system, flow-
line and riser, FPSO, and offloading). The
Goliat development project has devel-
oped an oil spill monitoring strategy that
focuses on early detection and reduction
of the consequence of any possible leak-
age or accidental discharge to sea.
Overall requirements on the basis of
this strategy are
Inspection routines shall be
established (e.g., for the subsea
templates, the flowlines and
risers, the electrical cable, and
other systems not subject to
continuous monitoring).
Any significant spill on the sea
surface shall be detected within
1 hour.
The automated spill-detection
system must be clear and
understandable, and data
collected through the monitoring
system must be available,
interpreted, coordinated,
and communicated to ensure
immediate response.
Data fusion from multiple sensor
systems shall be implemented for
detection (e.g., template sensors,
radar, and infrared sensors),
enabling robust detection.
Personnel must be trained to
assess monitoring data, enabling
efficient detection and accurate
classification of oil spills.
The detection and monitoring sen-
sors for the Goliat field during produc-
tion will consist of more than 100 dedi-
cated sensors located on different sensor
platforms (templates, risers, FPSO, safe-
ty standby vessel, supply vessels, heli-
copters, planes, and satellites) relevant
forGoliat.
On the subsea templates, there will
be two independent sensor systems con-
sisting of three acoustic sensors and four
capacitance sensors on each of the eight
templates. The field internal pipelines
will not have any external sensors, but
Fig. 1Location of the Goliat field.
Fig. 2The circular Goliat FPSO with extensive winterization.
Goliat
OD156773.indd 90 3/14/13 10:32 AM
JPT APRIL 2013
the safety standby vessel will have a re-
motely operated observation vehicle
that, among other tasks, will inspect the
field internal pipelines at regular inter-
vals. The Goliat risers will be equipped
with sensors that can detect inflow of hy-
drocarbons into the annulus.
The Goliat FPSO, safety standby ves-
sel, and supply vessels will be equipped
with oil-detecting radar and nitrogen-
cooled infrared cameras that can be used
to detect, measure relative thickness of,
and track oil on the sea surface. The ves-
sels will also be equipped with automatic
identification system buoys, which can
be used to track an oil slick. These sen-
sors will ensure that oil-recovery opera-
tions can be conducted during periods
with limited light conditions (e.g., polar
night) and also will enhance the abil-
ity to track an oil slick during periods of
goodlighting.
In addition to Goliats dedicated sen-
sors and sensors on vessels in the NOFO
pool, sensors on planes and satellites are
available through NOFO agreements.
Fig. 3Overview of the four consequence-reducing barriers related to oil
spill contingency used in Norway. The figure also illustrates the risk-reducing
barriers on the installation.
Fig. 4Example of setup for the use of the fishing vessel pool in coastal areas.
2 Coast/fjord systems
6 fishing vessels
2 high-speed booms
2 skimmers
2 storage units
6 fishing vessels
2 high-speed booms
2 skimmers
2 storage units
6 fishing vessels
3 coastal booms
3 skimmers
3 storage units
TRANSPORT TEAMS
ALTERNATIVE SOLUTION
TEAM 1
TEAM 2
TEAM 3
Command and supply vessel
OD156773.indd 91 3/25/13 7:47 AM
JPT APRIL 2013
Permanent Use of Fishing
Vessels (Barrier 3)
The use of fishing vessels as part of a
coastal oil spill contingency has previ-
ously been on an ad hoc basis by the oil
and gas industry in Norway. A project
was initiated to establish a permanent
pool of fishing vessels that can be used
by Goliat and other oil and gas activi-
ties in the area in case of an oil spill. The
project consisted of the following four
maingoals:
Change the Norwegian maritime
regulations so that fishing vessels
could legally be used in oil-spill
contingency operations.
Develop an operational concept
for the pool of fishing vessels.
Develop and acquire dedicated
booms, skimmers, and other
relevant equipment suitable for
fishing vessels.
Enter into contract with
approximately 30 fishing vessels
from the Goliat area.
The fishing vessel concept includes
fishing vessels, light and medium-sized
booms (primarily one-vessel high-speed
boom systems) and skimmers, external
storage units for recovered oil emulsion,
and a larger support vessel. The high-
speed boom systems use a paravane to
enable one vessel to maneuver and con-
trol the boom. The resources are to be
organized as one tactical unit supported
by a larger support vessel. The concept
gives a flexible organizational capacity
to handle scattered oil slicks, which can
be expected in the coastal areas (Fig. 4).
To secure the availability of the re-
quired number of suitable fishing ves-
sels with qualified crew in the case of an
oil spill, it was decided that NOFO should
enter into contract with approximately
30 fishing vessels. The contract specifies
response time and competence require-
ments and the number of exercises the
vessels need to participate in during a
year. The fishing vessel pool will use dedi-
cated equipment.
Acute Phase Task Force
(Barrier 4)
Traditionally, this barrier has been or-
ganized with one-sided focus on beach
cleaning after the acute phase is over.
Experience from oil spill response oper-
ations in Norway and all over the world
indicates a need for a higher level of
readiness for the acute phase of Barrier
4 (e.g., when oil hits the shore and often
congregates in bays and coves). Effec-
tive control of this phase will reduce the
damage to the environment, prevent-
ing penetration of oil into the soil, pre-
venting remobilization of oil, and reduc-
ing the extent of future beach cleaning.
When the oil reaches the beach, it will
often be combated effectively by me-
chanical means, either from land or sea.
Even in bad weather, the oil can be com-
bated in sheltered bays and coves or
on the lee sides. Normally, the emul-
sion will still be relatively mobile and
relatively easy to recover with pumps
andskimmers.
As part of Barrier 4, NOFO has estab-
lished a special acute-phase task force,
with dedicated personnel and equip-
ment. The group consists of 40 people
recruited from Finnmark County and is
set up with dedicated equipment. The
response time for the group is set to 48
hours, identical to the shortest drift time
before oil emulsion reaches the coast-
al zone from a major oil spill from the
Goliat field. If necessary, the task force
can be mobilized along the entire Norwe-
gian coastline.
Operations in the acute phase on the
beach include
Acquiring information about, and
effecting movement to, locations
with free-floating stranded oil
Locking the free-floating oil with
light booms
Flushing of oil on the shoreline
out to sea
Recovery of free-floating oil with
skimmers/pumps
Locking of any residual oil to
prevent remobilization
Application of sorbents on the
residual oil
Relocation to new position
The goal is that the acute-phase task
force should be able to operate as an au-
tonomous unit without significant re-
plenishment for approximately 48 hours.
The reason for this is to ensure that the
acute-phase task force has the endurance
to take action on an independent basis
until additional resources and supplies
can be mobilized and put in place. JPT
OD156773.indd 92 3/25/13 7:47 AM
93 JPT APRIL 2013
R
iser margins were abandoned when
fluid columns in risers became
too long with increasing water depth
accessed when floating drilling units
with subsea blowout preventers (BOPs)
moved to deep water. Removing risers
in disconnect events means wells go
underbalanced and rely on BOPs to
contain wellbore pressure. With the
advent of a simple retrofit dual-gradient
system based on partially evacuating the
riser by pumping mud returns back to
surface from an outlet in the riser, riser
margin in the form of an overbalanced
well can be reintroduced in many cases.
Setting the Scene
Deepwater drilling has a multitude of
unique challenges.
Water depth: Cold temperatures
combine with long fluid columns
with high pressures at the seabed
most often sitting squarely in the
hydrate-formation zone. Ocean
forces put mechanical stresses on
the riser system. Perhaps most
challenging, a highly complex
hydraulic system, the subsea BOP,
must be operated remotely in a
very hostile environment.
Deepwater depositional
environment: This leads in most
cases to a very tight margin
between formation strength and
pore pressure.
Existing emergency procedures:
In the case of a loss of position
of the rig, a complex sequence
of disconnecting from the BOP
must be initiated. The BOP also
needs to be closed before the
lower marine riser package is
disconnected and must reliably
seal the wellbore because, by
removing the riser, the well
becomes underbalanced because
primary well control by mud
weight is lost.
Status Quo
The solutions that the industry has em-
barked on to address these challenges
have often been overly complex evolu-
tionary developments instead of clean-
sheet designs, leading to high costs and
an unavoidable increase of mechanical
failure modes. The best example for this
approach is the current generation of
subsea BOPs. In their functionality, these
devices remain close to the original pat-
ent in 1929; but, today, they are very
large, complex, and heavy (350 tons) de-
vices that require an enormous amount
of maintenance and testing.
Even if a BOP is closed on an inflow
in time so the flow is entirely contained
below the BOP, circulating out this kick
by an established drillers method very
often proves to be difficult if not impossi-
ble. This is mainly related to two factors.
One is the risk of hydrate formation. The
moment gas and free water are mixed
in the BOP area, hydrates will form. The
second factor is the narrow margin be-
tween fracture gradient and pore pres-
sure. Very often, the formation is not
able to support the backpressure created
by the choke line friction, and circulation
without losses can never be established.
However, the narrow margin is not
detrimental during well control events
only. It also leads to drawbacks for nor-
mal drilling and cementing. In the worst
case in deepwater wells, the moment the
preceding shoe is drilled out, equivalent
circulating density (ECD) is simply too
high to drill a single foot of formation.
When circulating, losses are immediately
induced, and the overpressure exerted by
the mud statically is too small to hold back
formation contents, leading to a kick.
Dual-Gradient Drilling
Dual-gradient drillings effect in deep
water in essence is a technique to equal-
ize or significantly reduce the pressure
differential inside and outside the riser
at the mudline. It is a managed- pressure-
drilling technique that makes designing
a deepwater well almost as simple as
designing a land well because you can
start at zero and follow with the fluid
gradient the gap between pore and frac-
ture gradient, paralleling them by ad-
justing the gradient of the fluid in the
wellbore only, not the riser, establish-
ing overbalance without danger of frac-
turing the formation. This is generally
achieved by lightening the fluid in the
riser. This then allows the use of a heavi-
er mud in the wellbore. The heavier gra-
dient allows mud pressure to increase
more rapidly over depth than it could
in single- gradient systems. The mud ex-
erts less pressure at the preceding casing
shoe, where it should be lower, and more
pressure deeper down, where the mud is
needed to control pore pressure.
Riser Margin
A dual-gradient system that has seawater
pressure inside the riser at the mudline
while maintaining overbalance over pore
pressure in the wellbore has achieved, by
definition, riser margin. The removal of
the riser in the case of a disconnect event,
contrary to current practice, would not
Taking a Fresh View of Riser Margin for
Deepwater Wells Potentially Boosts Safety
The complete paper is available for purchase at OnePetro: www.onepetro.org.
OTC 22889, A Step Change in Safety: Drilling Deepwater Wells With Riser Margin, by
Robert Ziegler, SPE, Petronas, prepared for the 2012 Offshore Technology Conference,
Houston, 30 April3 May. The paper has not been peer reviewed.

Copyright 2012 Offshore Technology Conference. Reproduced by permission.
OD22889.indd 93 3/14/13 10:34 AM
94 JPT APRIL 2013
lead to loss of primary well control, with
the well becoming underbalanced and a
blowout prevented only by a fully func-
tioning disconnect sequence and a fully
sealing BOP. Therefore, what is done
when drilling riserless tophole to control
shallow water and gas (i.e., having kill
mud in the actual wellbore) now becomes
technically possible when we are risered
up in deep water.
A Simple Low-Complexity
Retrofit Dual-Gradient System
A simple retrofit dual-gradient drilling
system would be very rewarding. The re-
moval of the drilling-window constraint
because of a mud gradient that is too
steep in a single-gradient system leads
to a breakthrough simplification of deep-
water-well design. It not only has the po-
tential to improve the economics of deep-
water developments but also can enable
drilling wells previously considered un-
drillable. For this reason, after a success-
ful field trial of the deepwater riserless
mud recovery (RMR) system (Fig. 1) in
Malaysia, ideas were evaluated to extend
this technology to risered operations.
Fig. 2 shows a conceptual drawing of the
full retrofit system.
The following modifications are
necessary:
Two riser joints have to be
modified to accommodate the
pumps.
A winch has to be sited with
access to the moonpool. This
winch would be similar to the
pod line winches for the BOP but
would need to carry only some
1,500 ft of power and control
umbilical to power the upper
pump.
In case a mud return hose is used
instead of the integrated mud
return line in the riser, a hose
landing platform similar to what
is currently used in shallow-
water RMR systems needs to be
included.
A handling frame to run and
retrieve the docked pump
modules, best located in a BOP
trolley and combined with the
hose landing platform, needs to
be built.
An electrical tie-in to the rig
system for the mud return pumps
needs to be provided. Most
sixth-generation rigs will have
enough spare electrical capacity
to accommodate this.
The mud return line needs to be
tied into the low-pressure mud
system, with provisions for a
precision flowmeter.
All of these modifications can be
achieved while the rig is operating.
Fig. 1Schematic of field trial of the deepwater RMR system.
Fig. 2Conceptual drawing of a simple retrofit dual-gradient drilling system.
Deepwater Dual-Gradient System
Minimum 1,800 gal/min at 16.5 lbm/gal
Degasser
Gas Handler
Water Depth
up to 10,000 ft
8-in. Mud Return Line
and Power Umbilical
Conventional
Marine Riser
Upper Pump Module at 1,500 ft
8-in. Mud Return Line and
Power Umbilical Jumper
Lower Pump Module at 3,000 ft subsea
Subsea Wellhead and BOP
OD22889.indd 94 3/14/13 10:34 AM
JPT APRIL 2013
Well-Control and Process-Safety Considerations
The pumped riser dual-gradient system provides opportunities
for novel well- control practices. Some intrinsic system advan-
tages will allow much earlier detection of any flow anomaly while
drilling than would be possible with conventional operations.
The fluid level in the riser is not affected by rig motion, such as
heave, pitch, and roll, which makes volumetric kick detection no-
toriously difficult in floating drilling. The fluid level is kept con-
stant by a set of pressure sensors similar to those used in the RMR
system, where it has been proved that the fluid level can be main-
tained within just an inch or two. Any change in flow is immedi-
ately detected by a change in the power consumption of the mud
return pumps. Studies performed previously on occasion of the
deepwater RMR field trial have shown kick detection capability
at less than a barrel. Flowmeters are also part of the system and
provide additionalcalibration.
One of the biggest advantages of the pumped riser dual-
gradient system is that the empty part of the riser becomes a
giant expansion chamber and, therefore, a perfect mud/gas
Fig. 3Experimental setup for gas in riser test.
Choke for
air injection
Riser
1817 in.
9 in.53.5 lbm/ft
P-110 casing
Closed
annular
3,118 ft RKB
5-in. drillpipe
to 4,650 ft
13.2-lbm/gal
Mudline 3,118 ft
3,160 ft RKB
Kill line
partially
displaced
with
jelled
water
500
KB to WL=48 ft
WL to flowline=43 ft
DP positioned 15 ft
above RKB
KB=Kelly bushing
WL=Water line
DP=Drillpipe
RKB=Rig kelly
bushing
Bottom of air
before released
10 bbl 3,160 ft RKB
20 bbl 3,366 ft RKB
30 bbl 3,581 ft RKB
50 bbl 4,012 ft RKB
OD22889.indd 95 3/25/13 7:50 AM
JPT APRIL 2013
separator. With the fluid level at the maxi-
mum of 3,000 ft, the void volume of the
riser is approximately 1,000 bbl. This
feature can be used to develop some new
well-controlprocedures.
The overarching objective of these
proposed well-control procedures is to
maintain or immediately regain primary
well control through overbalance exerted
by the mud column without ever having
to resort to secondary well-control meth-
ods unless set limits are exceeded.
If a positive (inflow) flow anomaly is
detected, the following measures should
be taken:
Stop mud return pumps and
maximize riser boost to increase
the fluid level in the riser quickly.
Leave the drilling pump rate as it
is. Stop drilling and space out.
Monitor both the flow intensity
indicator and the volume
totalizer to ensure that a set
maximum inflow intensity is not
exceeded, the inflow is actually
decreasing, and a set maximum
allowable gain is not exceeded.
The method of raising the fluid
level in the riser with full boost
pump rate and normal pump
rate on the drilling pumps allows
a gain in overpressure of close
to 100 psi/min (depending on
mud weight in the riser) above
ECD because the rig pumps are
not shut down. So, any typical
deepwater inflow should stop in a
minute or two.
Now, the decision must be made
about how to treat the inflow in the
wellbore. In a series of full-scale ex-
periments conducted in 1986, de-
fined quantities of air were injected
below the closed subsea BOP on a float-
ing rig in 3,000 ft of water. The BOP
then was opened, and the behavior of
the riser filled with 13.2-lbm/gal water-
based mud was observed. Fig. 3 shows
the setup used for these experiments. The
effect of smaller quantities of air (10 or
20 bbl at depths yielding the equivalent
of up to 5,000-bbl surface gas volume)
was a stringing out in the riser and only
foaming and bubbles at the riser top, with
no unloading of the full riser or any slugs.
The observed limited effect of small
quantities of gas at depth is applicable
only for long fluid columns such as those
in deep water. On a shallow-water float-
ing rig, gas below the BOP would have an
effect similar to that of the gas at the shal-
low kickoff valves in a gas lift system and
could very well flow spontaneously.
These considerations lead to the
proposal of the following treatment of
the inflow volume after the flow anomaly
has been stopped:
When the material balanceof
flow in again equals flow out,
increase the riser level byanother
150-psi overbalance (or whatever
company procedures require).
Commence circulating the well
through the drillstring at normal
pump rates. Monitor the pump
strokes until the tail of the inflow
is well past the BOP while the tip
is still at least 3,000 ft below the
fluid level in the riser.
Stop pumping through the
drillstring, space out, and close
the BOP to isolate the wellbore
from the riser.
Switch on the mud return pumps,
and reduce the fluid level to the
lowest technically possible level,
therefore allowing the maximum
void in the riser, serving as
expansion chamber and mud/gas
separator.
Boost the riser at a slow rate of
200300 gal/min to give the
inflow maximum time to string
out, while operating the mud
return pumps to keep the fluid
level constant. Do so until 1.5
bottoms up in the riser has
been achieved. Because the
suction point will be very close to
the fluid level, gas will break out
well below and there is no danger
that gas in solution will enter the
mud return pumps.
Alert the mudlogger that he may
be able to recover some valuable
gas/formation-fluid samples.
The key to success of this proposed
well-control practice is very early kick
detection from the superior detection
abilities of this system, immediate and
dynamic control of the flow anomaly, and
then a rapid clearing of the wellbore and
the riser of any inflow so the risk of loss
of wellbore is minimized. JPT
OD22889.indd 96 3/25/13 7:49 AM
98 JPT APRIL 2013
George Hobbs,
SPE, is director at
Strategic Chemistry,
an independent oil
and gas production
consulting group.
Previously, he was
with Nalco/Exxon, Exxon Chemical
Energy Chemicals, NL Treating
Chemicals, Baroid, British Gas, Kemira
Oy, and Blue Circle Cement. Hobbs
has 36 years of experience in solving
oil and gas and geothermal drilling
and production problems in Europe,
the US, North Africa, the Middle East,
the Far East, and Australasia. He
studied at the University of Glasgow,
Brunel University, and the University
of Adelaide and holds a bachelors
degree in applied chemistry and a
graduate diploma in business. Hobbs
is a National Association of Corrosion
Engineers certified corrosion specialist
and chemical treatment specialist.
He is a past chairman of the SPE Gas
Technology TIG and served on the SPE
TIG Advisory Committee. Hobbs serves
on the SPE Production and Operations
Advisory Committee and the JPT
Editorial Committee.
On the 201st anniversary of the founding of the first commercial gas operation, the
Gas, Light and Coke Company (later British Gas), the future for natural gas has never
looked better.
In 2011, global natural gas reserves increased to the equivalent of approximate-
ly 80% of oil reserves. Unconventional gas sources are now a large proportion of US
natural gas supply, particularly tight and shale gas (30%) and coalbed methane (CBM)
(6%). Natural gas in 2011 contributed 24% of worldwide energy consumption, com-
pared with 33% for oil and 30% for coal. CBM is also an important source of energy,
particularly in eastern Australia, where three CBM liquefied natural gas (LNG) plants
are under construction and a fourth and possibly a fifth are proposed. CBM and West-
ern Australian conventional gas are set to make Australia the largest LNG exporter in
the world within 5 years.
Gas is likely to dominate energy supply because of improved available reserves,
lower carbon intensity, lesser environmental footprint, and long-term zero-carbon
goals involving CO
2
capture and sequestration. In addition, removal of contaminants
such as water, hydrogen sulfide, and mercury has been improved through nano and
smart technologies. Safety improvement research and development is another key
objective of the industry.
Underground gas storage is now in greater usage for supply security, with smart
wireless technology becoming increasingly involved in its management.
Six floating LNG offshore production facilities are expected to come on stream
within this decade, five in Australasia and the other in offshore Malaysia.
The potential is for very remote deep small offshore gas reserves to be economi-
cally exploited using floating compressed natural gas (FCNG) technology. Because of
the massive effect of US unconventional gas production on LNG imports, gas produc-
ers such as Trinidad are reportedly reviewing their future gas export strategies and
considering FCNG.
Commercial exploitation of the known massive methane hydrate reserves is still
some time off. However, research in hydrate control is advancing the understanding
of hydrate physical chemistry. This research also has helped conventional deepwater
gas production where subsea/downhole heating now is used to prevent hydrate block-
ages. Early last year, the US and Japan successfully completed a field trial of methane
production from hydrates on the Alaska North Slope.
To find out more, attend the Offshore Technology Conference in Houston,
36May 2013. JPT
TECHNOLOGY
NATURAL GAS
PROCESSING
AND HANDLING
SPE 161583 The Optimization of
Natural Gas Transportation by Michael J.
Economides, University of Houston, et al.
SPE 162938 Gas Transmission Market:
New Trends Around the World by Gina
Vega Riveros, Reservoir Consultant
SPE 151161 Control Loop Performance
Management To Improve Business
Objectives by Zhenhai Liu, ADGAS, et al.
2NGFocusApril.indd 98 3/14/13 10:35 AM
99 JPT APRIL 2013
M
onetizing offshore gas by
compressing and shipping it
in floating compressed-natural-gas
(FCNG) carriers is simpler and, in most
cases, less expensive than liquefying
and shipping it in floating liquefied-
natural-gas (FLNG) carriers. Seaborne
compressed-natural-gas (CNG)
transport requires essentially the
same infrastructure as pipeline export,
except that the gas is compressed into
a ship rather than a pipeline. FCNG
provides a new way to add to the
worlds natural-gas supply by allowing
smaller offshore gas fields to be
exploited economically.
Introduction
Many offshore gas fields are too small
or too remote to produce by pipeline to
shore. The liquefied-natural-gas (LNG)
industry has advanced to fill the need
with respect to larger gas fields by cre-
ating an FLNG production concept
where an LNG processing and refrig-
eration plant, complete with LNG stor-
age, is integrated into a ship or barge
and moored at a gas field. LNG ships
are then used to offtake the LNG and
deliver it to markets, where it is stored
and regasified as needed. A simpler and
less expensive way to produce gas from
many fields is to avoid liquefaction al-
together and instead compress the gas
into CNG ships, which then deliver it to
regional markets.
Virtually all floating production,
storage, and offloading (FPSO) ships in
operation today treat and compress nat-
ural gas, either to reinject associated gas
or to export it by pipeline. This is the
same technology required to produce
CNG offshore.
CNG vs. LNG
To transport natural gas efficiently, its
density must be increased. The principal
way to achieve this is by decreasing tem-
perature or increasing pressure. Decreas-
ing the temperature to 162C causes it to
condense to a liquid at ambient pressure
and results in a volume ratio of 600:1.
Compressing the gas to 275 bar at am-
bient temperature squeezes the gas to a
dense gaseous phase with a volume ratio
of 300:1.
For many projects, CNG is a lower
cost solution. In the past, no CNG ships
were developed or approved, so this
more-economical CNG solution was ig-
nored. A decade of work on the regula-
tions, engineering, and full-scale fatigue
testing has paved the way for the first
commercial CNG ships.
FCNG: A Shuttle Tanker
Operation
An FCNG production vessel is a tradition-
al gas floating production and offload-
ing (FPO) unit with a high-pressure gas
transfer system to load Coselle CNG shut-
tle ships instead of a subsea pipeline.
CNG is transferred at near-ambient tem-
peratures, so the hoses and transfer sys-
tems are the same as those used to trans-
fer high-pressure gas and well fluids onto
an FPO unit.
It is important to recognize that a
CNG delivery system is a continuous-flow
process without interruption or discon-
tinuity (like a pipeline) and not a batch
process like LNG or fuel oils; gas flows
continuously with high reliability by use
of the CNG shuttle ships.
FCNG Advantages
The advantages of CNG ship transport
from an FCNG production vessel over a
gas pipeline to shore are
CNG ships can reach more
distant markets.
CNG ships have the flexibility
to reach multiple markets. Once
laid, pipelines are fixed to a
particular market, typically the
nearest landfall.
Pipelines must be fully written
off over the life of the project to
which they are attached, whereas
CNG carriers can be moved
to new fields, extending their
operational life to 30 years or
more.
Deepwater or submarine
hazards (e.g., seismic) can make
pipelines extremely expensive or
technically impossible, whereas
CNG ships are unaffected.
The principal advantages of FCNG
over FLNG are
It is much simpler and less
expensive to prepare raw
gas for compression than for
liquefaction.
Because the gas is not liquefied,
the only issues with inert
gases relate to the customers
requirements for heating value.
Hydrocarbon liquids removal
may be required by both CNG
and LNG systems in order to
maintain acceptable hydrocarbon
dewpoints in the supplied gas.
LNG systems also have to remove
Floating Compressed-Natural-Gas System
Provides Simpler Path to Monetization
OTC 23615, Floating CNG: A Simpler Way To Monetize Offshore Gas, by David
Stenning, SPE, John Fitzpatrick, and Mark Trebble, Sea NG, prepared for the 2012
Offshore Technology Conference, Houston, 30 April3 May. The paper has not been
peer reviewed.

NG23615.indd 99 3/14/13 10:38 AM
100 JPT APRIL 2013
heavier hydrocarbons in order
to avoid wax formation. CNG
is more tolerant to keeping the
heavier hydrocarbons in the
process stream because the
process temperatures are higher.
From a mechanical and
operations perspective, FCNG
has the following advantages
overFLNG:
Risk is reduced. FCNG does not
need to carry large inventories
of natural gas onboard because
the shuttle ships provide both
storage and transportation.
Sloshing in cargo tanks is not
a design issue because CNG is
a gas.
Transfer systems are simpler.
Offloading can be achieved
through traditional tandem
or buoy loading systems using
high-pressure hoses, which are
commonly used for risers and
for reinjection of gas.
Offloading can be carried out in
open-sea conditions.
An FCNG process is much
easier to shut down and start
up, thereby increasing safety
and operational reliability.
From the perspective of energy
efficiency, a CNG process
consumes less than 5% of the
gas compared to an LNG process,
which consumes approximately
10% of the gas.
Because of the 2:1 density differ-
ence between LNG and CNG, respec-
tively, the economic distance to market
for CNG may be limited to approximate-
ly 2500 km before the cost of shipping
begins to override the economic ad-
vantages of offshore compression vs.
offshoreliquefaction.
The Coselle CNG Container
A Coselle is a coiled pipeline made from
relatively inexpensive small-diameter
pipe. By coiling pipe, it is possible to cre-
ate a very large pressure vessel that can
fit compactly into a ship. Fig. 1 compares
an equivalent volume of traditional gas-
storage bottles (169) and Coselles (6).
Each Coselle is a 21-km pipeline. Where
169 bottles require more than 300 con-
nections, the six Coselles have just six.
High-pressure gas must be con-
tained safely. One significant safety ad-
vantage of the Coselle is that the diame-
ter of the gas storage pipe is small. In the
highly unlikely event of a full-bore rup-
ture, the energy released is insufficient to
damage the ships hull.
Coselle CNG Ships
A CNG carrier is a shuttle ship and needs
to be efficiently designed, taking into ac-
count the Coselle and associated cargo
systems. The Coselles are integrated into
the ship structure, thereby making maxi-
mum use of the Coselles structural steel
in the ship structure. This arrangement
saves 30% of the structural steel that
would be required for a similar ship with-
out integrated Coselles.
To match the requirements of a
broad range of projects CNG ships are
designed in different sizes. A schematic
of a Coselle ship is shown in Fig. 2.
The CNG Process
To assist in understanding the process
by which raw gas is processed and deliv-
ered with CNG ships, the following ex-
ample considers an offshore field with
a natural gas production capability of
350MMscf/D. The gas is lean gas, with a
molecular weight of 18.2, a methane con-
tent of 88.5%, and a lower heating value
of 955 Btu/scf.
In the following scenario, three C84
CNG ships (each containing 84 Coselles
in 12 stacks of seven) are used to deliver
gas continuously from an FCNG vessel
that is 350 km away from a receiving ter-
minal. It is assumed in this example that
both the loading and discharging of gas is
continuous. The CNG system essentially
provides a floating pipeline.
Fig. 2Coselle CNG ship with 25 Coselles (C25).
Fig. 1Pressure cylinders vs. Coselles.
NG23615.indd 100 3/14/13 10:38 AM
101 JPT APRIL 2013
Gas is received on board the FCNG
vessel at 800 psig and 50F. The gas
is dehydrated on the FCNG vessel to a
water dewpoint of 15F. The dewpoint
requirement results from the fact that,
upon depressurization, the gas can reach
temperatures of 8F at the beginning
of the unloading sequence. Fuel gas is
taken from the dehydrated gas in order
to power the compression equipment on
board the FCNG at a rate of 6.3 MMscf/D.
This leaves a flow rate of 343.7 MMscf/D,
which is used on a continuous basis ei-
ther to fill the CNG ship directly or to
top up storage Coselles on the vessel.
Dehydrated gas is compressed from
inlet pressure to 2,050 psig in the first
stage of compression and is then cooled
to 90F using seawater coolers. This gas
is then mixed with gas from storage and
fills the incoming ships Coselles to a
pressure of 2,000 psig, after which the
second-stage compression is started; this
raises the gas pressure to 4,040 psig.
The connected shuttle ships Coselles are
filled to 4,000 psig before disconnect-
ing and travelling to the receiving facility.
The complete cycle for a ship is as
follows:
The ship arrives at the FCNG
facility with an average cargo
pressure of 231 psig and an
average temperature of 12F. The
ship moors and is connected to
the FCNG facility.
Gas from the FCNG storage
(initially at 4,000 psig) flows at
550 MMscf/D and is combined
with gas from the first-stage
compressor for a combined
loading rate of 893.7 MMscf/D.
This gas fills the Coselle CNG ship
up to a pressure of 2,000 psig.
This requires 121.5 MMscf of gas
to be taken out of storage.
Gas from the FCNG storage is
then stopped, and the second-
stage compressor is started. The
remainder of the Coselle CNG
ship is filled at 343.7 MMscf/D.
The total filling time for the
ship is 15 hours, and the average
temperature of the gas at the end
of loading is 96.2F at 4,000 psig.
As soon as the ship is no longer
taking gas, the high-pressure
discharge gas from the second
compressor stage is directed back
into the FCNG storage to make up
for the gas that was used during
dual loading.
The ship disconnects from the
FCNG vessel lines and prepares
to depart. The time for mooring,
connecting, and disconnecting is
6 hr/cycle.
The ship sails to the receiving
facility at a speed of 16 knots,
which takes 12 hours.
The ship either moors at a
buoy or docks at a jetty at the
receiving facility alongside the
preceding ship, which is nearly
empty. The receiving terminal
is configured so that two vessels
can be connected by separate
loading arms at a jetty or at
separate buoys so that there is
no interruption of gas discharge.
The initial pressure of the cargo
arriving at the receiving facility
is 100 psig lower than when it
left the supply facility because
of consumption of fuel by the
ship during the journey and
temperature drop in the Coselles.
The ship begins discharging
gas through the high-pressure
discharge line at 273.3 MMscf/D
while the preceding ship empties
the last stack of Coselles through
the low-pressure header down to
the ship heel pressure of 250 psig
at 66.7 MMscf/D.
Once the ships first stack is
depressurized to 820 psig
through the high-pressure
header, the first stack is switched
over to the low-pressure header,
where it finishes discharging
to 250 psig. The second stack
of Coselles is connected to
the high-pressure header and
begins to discharge at the same
time. The use of high- and low-
pressure headers results in
significantly lower compression
requirements.
The ship is subsequently
unloaded in a cascade fashion,
stack by stack, until the last stack
is switched to the low-pressure
header. Gas for the high-pressure
header is then supplied from the
next ship, which has arrived and
is connected.
The ship then sails back to the
supply facility, using some of
the remaining gas as fuel in the
journey, so it arrives back at an
average pressure of 231.4 psig, to
begin the cycle anew.
Fuel for the scavenger
compressor is taken from
the ship discharge at a rate
of 1.0MMscf/D, leaving a
continuous supply to the
receiving facility of 339 MMscf/D.
Conclusion
FCNG serves markets that fall between
subsea-pipeline markets and very-long-
distance LNG markets. For market op-
portunities that cannot be reached by a
subsea pipeline but are within 2500 km,
FCNG provides a simpler and less expen-
sive process than FLNG does, with more
flexibility to deliver to multiple sites than
pipelines offer. JPT
NG23615.indd 101 3/25/13 7:52 AM
104 JPT APRIL 2013
K
uwait Oil Company started free
gas production from its Jurassic
sour-gas field in May 2008 with the
commissioning of Early Production
Facility (EPF) 50. The field produces
sour gas and light crude from a deep
high-pressure/high-temperature
naturally fractured carbonate reservoir
with low permeability and low porosity.
The well fluid is characterized by high
hydrogen sulfide (H
2
S) (5%) and carbon
dioxide (CO
2
) (5%) content. Handling
such highly corrosive well fluid creates a
wide range of challenges, from upstream
at the wellhead to downstream at the
processing facility.
Upstream Challenges
Upstream challenges for the Jurassic gas
field have been related mostly to subsur-
face corrosion of tubing, unplanned well
downtime because of hydrate formation
during winter, and failure of automated
chokes for some wells.
Subsurface Tubing Corrosion. A mod-
erate to severe corrosion rate has been
indicated by corrosion logs in the pro-
duction tubing because of the high H
2
S
and CO
2
content of the well fluid. Plans
exist for existing carbon-steel tubing for
four wells to be replaced by corrosion-
resistant alloy material, and regular cor-
rosion logs are being run for other sus-
pect wells.
Hydrate Formation in Flowlines. Hy-
drate formation has been observed in
flowlines during winter for 11 wells when
flowline temperature drops to 65F. This
has resulted in unplanned production
loss and substantial well downtime. The
best mitigation option implemented was
the injection of kinetic hydrate inhibitor
(KHI) at the wellhead at the onset of win-
ter for the identified wells, and a good
degree of success has been achieved.
However, KHI is not very effective in
controlling hydrates at temperatures
below 4C, and this is a problem that
needs to be addressed as a priority.
Flowline insulation at the point of
restriction and heat tracing also have
been implemented for four wells, with a
fair amount of success.
Challenges With Automated Chokes.
Automated chokes were first installed
in the field in April 2011. The purpose
of automation was to improve control of
remotely located wells, enhance safety,
and ensure better control of field pro-
duction. Sixteen Jurassic wells are cur-
rently on automated chokes of three dif-
ferent makesM1, M2, and M3.
Challenges With Make M1. The
factory-set choke opening did not match
actual choke opening. Choke adjustments
had to be made with flowing wellhead
pressure (FWHP) as a reference, and
this leads to inaccurate settings. Scale
formation also has been observed in-
side the choke body, causing restrict-
ed flow and inaccurate FWHP read-
ings and, therefore, poor monitoring of
wellperformance.
carbide trim failed for two chokes with-
in a few months of operation, resulting
in well closure and subsequent produc-
tion loss. Trim failure within such a short
period of operation is cause for concern
and could be because of poor design,
improper metallurgy, or failure to han-
dle the rated differential pressure gen-
erated across the choke. The trim was
changed with vendor assistance for Make
M2. Scale formation was observed inside
the choke body, restricting flow and lead-
ing to inaccurate FWHP readings.
carbide trim failed for one choke within a
few months of operation, resulting in un-
planned well closure and production loss.
Downstream Challenges
Frequent carryover of condensate from
high-pressure dry separators into the
amine contactor has been observed,
especially at flow rates exceeding
108MMscf/D. This has resulted in costly
plant downtime.
The immediate effect of such carry-
over has been
Amine contamination, foaming,
and choking of filters and
exchangers of amine system
Poor amine regeneration and
subsequent off-specification
export gas in terms of H
2
S
content
Production cutback and revenue
loss
Costly amine loss
Increased flaring from the
plant, leading to environmental
concerns
Remedial Steps. The following remedial
steps were initiated:
Installed hydrocyclone separator
in the gas line upstream of the
amine contactor to capture
carryover liquid from high-
pressure separators
Installed inlet vane pack
separation assembly and better
designed demisters in separators
and amine contactor
Handling Jurassic Field Sour Gas Creates
Challenges Upstream and Downstream
SPE 154452, Challenges in Sour-Gas Handling for Kuwait Jurassic Sour Gas, by
Bader Nasser Al Qaoud, SPE, Kuwait Oil Company, prepared for the 2012 SPE Middle
East Unconventional Gas Conference and Exhibition, Abu Dhabi, 2325 January. The
paper has not been peer reviewed.
NG154452.indd 104 3/14/13 10:43 AM
105 JPT APRIL 2013
Installed random packed bed
at the bottom of the amine
contactor to prevent incoming
gas into the vessel to carryover
amine from the last tray
Lowered rich amine outlet line
from the amine contactor to
prevent gas cutting into the rich
amine outlet line
A probable cause of carryover from
the high-pressure separators is an under-
sized separator.
Other Downstream Challenges at EPF
50. Insufficient Capacity of Amine
Unit To Process Acid Gases. The amine
unit has been designed to handle 2% H
2
S
content in feed gas, while H
2
S content in
the well fluid flowing to EPF 50 has been
observed to be 3.5%. Thus, the sweeten-
ing capacity of the amine unit is affect-
ed, and the plant must operate at limited
capacity if export gas specifications are
tobe met.
Limited Capacity of the Plant
for Treating Wet Crude. The desalt-
er capacity for handling wet crude is
20,000 BOPD. Because most of the wells
are wet, wet crude is being processed in
a dry train, causing fouling of crude sta-
bilizer trays and causing basic sediment
and water to be higher than specifications
in export crude. To mitigate this issue,
a static mixer was installed in the low-
pressure dry three-phase separator to re-
duce the salt content in the dry crude.
High Chloride Content of Amine in
Circulation. The amine was getting con-
taminated with high salt content in feed
gas and carryover from the high-pressure
separators. High chloride content was
increasing corrosivity of amine. An in-
crease in foaming tendency caused pro-
duction cutback and flaring loss.
Frequent Choking of Amine Lean/
Rich Exchanger. Backpressure caused
by choked exchangers led to flaring from
the amine flash tank. A new standby lean/
rich exchanger was installed. Existing ex-
changers were serviced to mitigate this
issue, and 40- filters in the amine filtra-
tion system were replaced with 10- fil-
ters to improve cleanup.
Implemented Projects and
Short-Term Plans
Internal modification of high-
pressure separators and piping
modification were performed in
the amine contactor for proper
separation of phases. Internal
modification in separators
involved placing an inlet vane
pack assembly for proper phase
separation and replacing the
existing demister with larger unit.
Random packing at amine
contactor bottom was installed to
reduce flaring.
Implementation of intelligent
field projects for Jurassic wells
isongoing.
Plans are for installation of an
ion-exchange-type reclaimer for
chloride removal from amine
incirculation.
Hydrocyclone separator will be
modified to increase separation
efficiency.
Plans call for selecting suitable
corrosion inhibitor/KHI/
demulsifier on the basis of
fieldtrials.
Long-Term Projects
A new desalter with a capacity of
50,000 BOPD to treat additional
wet crude is planned.
A hookup of a new multiphase
flowmeter is planned for accurate
well testing.
Replacement is planned of
existing valve trays of the
aminecontactor.
Solvent replacement is
plannedfor enhancing amine
contactor capacity.
A third sulfur recovery unit
train is planned to process an
increased acid gas feed rate.
Conclusions
Challenges faced in the operation of the
facility have been unique to the compa-
ny because this is the first time that the
company has had to process sour gas.
The challenges have been mitigated suc-
cessfully for most cases, and the lessons
learned have been incorporated into the
design phase of the future facility, ex-
pected to be commissioned soon. The
company has ambitious plans for fur-
ther development of the Jurassic gas field
in the near future and plans to increase
gas production significantly from its cur-
rentlevel. JPT
NG154452.indd 105 3/25/13 7:51 AM
106 JPT APRIL 2013
D
uring natural gas liquefaction,
CO
2
must be removed to prevent
icing and plugging in the system.
TheCO
2
-removal system may be
the most important part of the gas-
treatment system. CO
2
removal
systems require complicated amine
contactor and regeneration systems
with substantial heat sources. The
CO
2
-tolerant natural-gas-liquefaction
system called cluster liquefaction
accepts approximately 1% of CO
2
for
the liquefaction and related systems.
The CO
2
-tolerant characteristics of
this liquefaction process will provide
a multifold safety margin against
CO
2
problems in cryogenic systems
andvalves.
CO
2
-Tolerant Liquefied-
Natural-Gas (LNG)
Production System
Considerations. Natural gas liquefaction
at higher pressures and equivalent higher
liquefaction temperatures has the advan-
tages of reducing liquefaction energy and
adopting more-efficient refrigerant. De-
spite the advantages, the higher-pressure
storage requirement for the produced
LNG has been a cost burden in overall
LNG chains. For that reason, natural gas
liquefaction at higher pressures has not
been adopted by the industry.
The specific weight ratio (SWR) of
natural gas, defined as the natural gas
weight divided by the containment sys-
tem weight, is an important indication
of capital expenditures. The typical SWR
of conventional LNG is approximately
1020 times that of compressed natu-
ral gas (CNG). Even for the increased-
pressure LNG, the SWR is typically 10
times that for CNG. Hence, storage as a
liquid after cooling and insulation is far
more efficient than CNG.
For increased-pressure LNG, the
main cost contributor has been the cryo-
genic material for the higher pressure.
However, if a cost-effective solution for
increased-pressure containment is de-
veloped, it may become a viable option.
Examples. Intermediate-Pressure LNG
(20 bara, 1% CO
2
). Substantial CO
2

can be dissolved in LNG produced at in-
creased pressure. CO
2
in the LNG should
be liquid, not solid or as two phases.
During cool down at a predetermined
pressure, the feed gas can pass through
the solid formation region in the inter-
im stage. Hence, this region should be
avoided by liquefying the natural gas at
a higher pressure before reducing the
pressure. If the CO
2
level is sufficiently
lowered during the gas treatment, the
solid formation can be avoided regard-
less of the liquefaction temperatures
andprocesses.
In the case of 1% CO
2
in the feed gas,
if the pressure is lowered to an interme-
diate pressure (20 bara) after liquefac-
tion and subcooling at a higher pressure
(30 bara), ice formation can be prevent-
ed (Fig. 1).
Intermediate-Pressure LNG With
Solid CO
2
Separation. Solid CO
2
forma-
tion in a main cryogenic heat exchang-
er is not preferable because CO
2
solid
plugging will yield detrimental effects.
Nevertheless, if the pressure is reduced
in a simple separator or further cooling
Proposed Cluster Liquefied-Natural-Gas
Production System Raises Tolerance of CO
2

OTC 23261, Development of CO
2
-Tolerant LNG-Production System, by JungHan
Lee, Jeheon Jung, and Kyeongmin Kim, SPE, Daewoo Shipbuilding and Marine
Engineering, prepared for the 2012 Offshore Technology Conference, Houston,
20April3 May. The paper has not been peer reviewed.

Fig. 1Conceptual diagram of CO
2
-tolerant LNG process.
20-bara liquefaction
(solid formed)
30-bara liquefaction
Liquid + Vapor
Vapor
Liquid
Solid + Vapor
Solid + Liquid
Temperature, C
P
r
e
s
s
u
r
e
,

b
a
r
a
60
50
40
30
20
10
0
140 120 100 110 130 90 80 70
NG23261.indd 106 3/15/13 9:20 AM
108 JPT APRIL 2013
down is accomplished elsewhere, then
ways exist to remove the solid formation
mechanically from the LNG. The pure
liquid part of the LNG without the solid
formation may be stored separately as a
finalproduct.
Cluster Concept
Natural gas liquefaction at higher pres-
sure has an economic advantage over
conventional liquefaction by lowering
the unit LNG production cost and, ulti-
mately, the final delivered gas price. Clus-
ter liquefaction is competitive in unit cost
of produced LNG, and it has CO
2
- and
N
2
-tolerant characteristics. Most of the
related technologies have been verified
through a bench scale pilot plant (BSPP)
in many operation conditions and com-
positions. A comparison of convention-
al and cluster liquefaction is shown in
Table 1.
Cluster CO
2
Test
Information on CO
2
solubility in LNG is
available in the literature, but actual veri-
fications in cluster conditions are nec-
essary to confirm specific components.
For that reason, experiments focused on
finding engineering implementation data
rather than exact figures. Fig. 2 shows
the test facility.
The experiments have been carried
out in the following four categories:
Basic CO
2
solidification
at different pressures and
temperatures (basic CO
2

solidification)
TABLE 1CONVENTIONAL LNG VS. CLUSTER LNG
Conventional LNG Cluster LNG
Liquefaction pressure (typical) 0.1 barg 20 barg
Liquefaction temperature 161C 105C
Typical CO
2
level 50 ppm 10,000 ppm
Typical acceptable N
2
level 0.3% 2%
Theoretical coefficient of performance
at liquefaction temperature
(Carnot refrigerator)
0.57 1.2
Theoretical maximum refrigeration
performance Index*
504.2 kJ/kg 252.7 kJ/kg

* Based on 60 bar, 35C feed gas condition, refrigeration index at 35C ambient temperature, integral sum
of 1/(coefficient of performance) from ambient to liquefaction enthalpy ranges.
Fig. 2Cluster LNG BSPP.
NG23261.indd 108 3/25/13 7:52 AM
109 JPT APRIL 2013
Derivation of CO
2
freezing design
data (design parameters for CO
2

contents)
Verification during actual
LNG production by BSPP
(demonstration in BSPP)
Basic solid CO
2
removal by
mechanical hydrocyclone (solid
CO
2
removal)
Basic CO
2
Solidification.
1, 2, 5, 10, and 20% standard CO
2

bottles were prepared.
Corresponding pressures and
temperatures were applied with
external liquid or vapor nitrogen.
Differential pressure was
observed across the experiment
section to check for CO
2
ice
formation in the experiment coil.
LNG was regasified for gas
sampling and analysis.
Design Parameters for CO
2
Contents.
More specific design parameters
will be derived in this
experiment.
Extensive inlet gas compositions
will be tested in more accurate
temperature and pressure
conditions.
The test currently is being carried
out at the Institut Teknologi
Sepuluh Nopember in Indonesia.
Demonstration in BSPP.
Many runs of experiments with
different CO
2
percentages have
been performed by injecting CO
2

into the BSPP.
The differential pressures in
the coldbox and elsewhere were
monitored.
Samples of the regasified
natural gas were made for gas-
composition analyses to check
whether predetermined CO
2
has
been liquefied properly without
solid formation during the
liquefaction.
Because of some inaccuracies
in instruments and some
limitations in the BSPP facility,
finding exact icing-formation
points was difficult. Differential
pressures across the coldbox
were measured for different
CO
2
content. Small consistent
differential pressures were
observed for CO
2
in the range of
0.250.8%, whereas substantial
differential pressures because
of CO
2
icing were measured
at high CO
2
percentages
(approximately 10%). Through
the series of experiments, it
was demonstrated that natural
gas containing a maximum of
0.8% CO
2
could be continuously
liquefied without ice formation
in the coldbox, piping, valves, or
20-bar LNG storage tanks.
Solid CO
2
Removal.
A basic solid CO
2
removal system
was prepared.
Higher-CO
2
-content
(approximately 5%) natural gas
was used for the liquefaction.
Liquefaction pressure in the
coldbox was approximately
60bar, and the temperature was
greater than that required for
solid formation.
After liquefaction, the pressure
was reduced to approximately
20bar in a separator by a
pressure-reducing valve before
the LNG was sent to storage
tanks.
CO
2
solid formation in the
separator and flash gas amount
were checked.
A hydrocyclone-type removal
system was applied to extract CO
2

solids from the produced LNG.
Produced LNG was sampled to
check CO
2
content.
Additional basic tests are being
conducted; however, at this time,
only limited results are available.
Relatively high-CO
2
-content
natural gas could be liquefied
at the coldbox without the
formation of solid plugging, and
some solid CO
2
was found in the
separator.
Further extensive tests will be
conducted, and enhancements of
the test facility will be made.
From the basic CO
2
solidification
tests and actual liquefaction runs in the
BSPP, it was seen that natural gas lique-
faction for approximately 1% CO
2
is pos-
sible with the cluster process at 20 bar
without forming CO
2
solids, which is a
CO
2
level approximately 200 times great-
er than that for conventional LNG. The
CO
2
-tolerant characteristics of cluster
liquefaction were demonstrated by the
CO
2
-related experiments.
Applications
Onshore LNG Plants. Cluster technol-
ogy can be applied to land-based LNG
plants as well as floating platforms. Al-
though the cluster-produced LNG is
transported preferably by ship, it also
can be transported by container trucks.
The higher pressure of the cluster LNG
may not be compatible with existing
ambient-pressure LNG storage facil-
ities; nevertheless, no problems exist
in providing regasified product to end
users such as power plants or with in-
jecting gas into existing pipelines. After
flashing and supplying the flashed gas
to consumers at the regasification site,
the balance of the cluster LNG may be
converted to ambient-pressure LNG for
other purposes.
Ongoing Cluster Projects. Several on-
shore cluster projects are undergoing
feasibility studies with diverse clients,
and some are close to reaching the deci-
sion stage. The first small-capacity com-
mercial cluster liquefaction was expect-
ed to start operation in the first quarter
of 2013. The successful operation of the
plant would reconfirm most aspects of
the technology, including the cluster
LNG containment system, and it would
provide additional confidence in tech-
nology and business. Because the system
adopts a standard design, especially for
the containment system, scaling up the
system is straightforward, accomplished
by adding the required number of stan-
dard containment tanks and liquefac-
tion trains.
Path Forward. With the inherent com-
petitiveness of cluster LNG, the pros-
pects for onshore and offshore appli-
cation are believed to be bright, and
several projects are expected to be im-
plemented in the near future. The new
flexible LNG model may bring paradigm
changes for traditional LNG business.
The next phase of design and fabrication
certification was in progress at the time
the paper was written. JPT
NG23261.indd 109 3/15/13 9:20 AM
110 JPT APRIL 2013
Mike Payne, SPE,
is a senior advisor
in BPs Exploration
and Production
Technology group.
He has 31 years
of experience,
including drilling operations,
computing, technology, and consulting.
Payne holds BS and PhD degrees in
mechanical engineering from Rice
University, an MS degree in petroleum
engineering from the University of
Houston, and an executive business
education degree from the University
of Chicago. He has contributed
extensively to industry publications
and has held key leadership positions
with the American Petroleum Institute
and the International Organization
for Standardization. Payne has been
an SPE Distinguished Lecturer and
received the SPE International Drilling
Engineering Award in 2000. He has
led several SPE Advanced Technology
Workshops and serves on the JPT
High-pressure/high-temperature (HP/HT) operations are projected to double in well
count over the next 6 years. In addition to this steady increase in activity, the condi-
tions in these extreme wells will also become more severe as well depths, pressures,
and temperatures also trend higher.
In the Norwegian sector of the North Sea, one of the most extreme HP/HT wells
in that region has been drilled. As a means of addressing the challenges posed by tight
pore-pressure/fracture-gradient windows, managed-pressure-drilling (MPD) tech-
nologies were applied to minimize the effects of pressure fluctuations that occur in
standard drilling. The MPD technology, the so-called backpressure technique, uses
the controlled application of surface backpressure when mud circulation stops to
replace the incremental equivalent-circulating-density effects present when mud cir-
culation is active. In addition to precise management of the pressure profiles imposed
on the formations, this active circulation and pressurization technology increases the
accuracy with which unwanted influxes can be detected. Influxes as small as 0.25 bbl
can be identified, thereby improving kick-detection capability.
In south Louisiana, the largest onshore drilling rig in the world has been drill-
ing the deepest well ever drilled in that state, an accolade that is impressive given the
long heritage that Louisiana boasts with regard to HP/HT wells. Several operators
are active in this area, with a new state depth record being set by one well reaching a
depth of 25,500 ft. Another HP/HT prospect in this area is permitted for a total depth
of 29,000 ft. In another part of the world, Malaysia, operators are planning ultra-
HP/HT operations with bottomhole static temperatures above 430F. This includes
more than a dozen prospects in peninsular and east Malaysia. This region may prove
to be one of the most active areas for HP/HT operations in the near future.
HP/HT drilling and completions require careful planning, attention to detail,
robust testing and qualification programs, strong quality control, and thorough con-
tingency planning. The ongoing industry successes addressing HP/HT challenges
globally are testament to the focus that our industry brings to bear as these challenges
are met and addressed. JPT
TECHNOLOGY
HIGH-PRESSURE/
HIGH-TEMPERATURE
CHALLENGES
SPE 158851 Testing and Perforating in
the HP/HT Deepwater and Ultradeepwater
Environment by Curtis Wendler,
Halliburton, et al.
SPE 154768 Developing Novel Wellbore-
Heat-Transfer Strategies for HP/HT Wells
by Mohd Amin Shoushtari, Universiti
Teknologi Petronas, et al.
SPE/IADC 163557 Annular-Pressure-
Buildup Analysis and Methodology With
Examples From Multifrac Horizontal
Wells and HP/HT Reservoirs by Jonathan
Bellarby, Canmore Consulting, et al.
3HPHTFocusApril.indd 110 3/14/13 10:36 AM
111 JPT APRIL 2013
W
ith exploration in harsh
environments and consequent
high-pressure and high-temperature
conditions, calculating reservoir
properties has become complex
and changes in pressure-transient
response need to be understood and
appreciated by taking appropriate
measures. The challenges arising with
drilling and testing of high-pressure/
high-temperature (HP/HT) gas wells
that produce hydrogen sulfide (H
2
S)
and carbon dioxide (CO
2
) in the Krishna
Godavari basin are discussed.
Introduction
In the exploration campaign in the Krish-
na Godavari basin off the east coast of
India, four wells were drilled, discovering
a very tight gas reservoir with an average
pressure of 12,000 psi and an average re-
corded temperature of 360F and classi-
fied as an HP/HT reservoir, as shown in
Fig. 1. This paper discusses the experi-
ence drilling four wells with a jackup rig
in average water depth of 60 m.
Well-A was the first well. Well-B dis-
covered and flowed gas from stratigraphy
below the section encountered in Well-
A. Well-C encountered the same sands
found in Well-A, and additional shal-
lower sands not encountered in Well-A
or Well-B were discovered. The reser-
voir section is overlain by shale. Well-
A was drilled in six sections because it
was the first exploratory well; the other
three wells were drilled in five sections.
All wells had sections of 36-, 26-, 17-,
12-, and 8-in. hole and Well-A had
an additional 6-in. section. These sec-
tions were cased with 30-, 20-, 13-,
9-, and 7-in. liner casings, respectively,
and Well-A included a 5-in. liner. The res-
ervoir section expected in 8-in. hole
from seismic and log data was proved
while drilling Well-A and was appraised
in Well-B, Well-C, and Well-D. Well-A and
Well-B were drilled to total depth with
water-based mud (WBM). The 12-in.
section of Well-C was drilled with WBM,
while the 8-in. section was drilled with
synthetic-oil-based mud (SOBM). The
shale sections and reservoir section in
Well-D were drilled using SOBM. The
mud program was designed on the basis
of the pore-pressure-leakoff-test (LOT)
vs. depth chart shown in Fig. 2.
This environment is very harsh, and
problems faced during drilling and test-
ing were the result of unexpected varia-
tions in high pressure and temperature.
To mitigate problems associated with the
HP/HT environment, it was highly im-
portant that extensive planning be per-
formed before any drilling, testing, or
stimulation operation. Seven drillstem
tests (DSTs) were performed in the four
wells, with bottomhole pressure and
temperature as high as 12,600 psi and
410F, respectively. HP/HT tools were
used during these DSTs, stressing the
selection of elastomer. The selection of
proper-grade tubing, HP/HT-rated seal
packer, gauges, and explosives was con-
sidered to be of great importance. The
surface-equipment package was selected
to meet the HP/HT requirement of these
wells because of the H
2
S, CO
2
, and sand-
production problems. Health, safety, and
environmental issues needed special care
to eliminate any loss of life or damage to
property without compromising the ob-
jectives of the operation.
Challenges While Drilling
In HP/HT reservoirs, controlling pres-
sure and temperature is the most chal-
Offshore HP/HT Gas Well:
Drilling and Well Testing
This article, written by Senior Technology Editor Dennis Denney, contains highlights
of paper SPE 155320, Offshore Drilling and Well Testing of an HP/HT Gas Well: A Case
Study, by Prerak H. Shah, SPE, Harsh T. Pandya, SPE, Harsh Sharma, and Arpit
Saxena, SPE, Gujarat State Petroleum Corporation, prepared for the 2012 SPE Oil and
Gas India Conference and Exhibition, Mumbai, 2830 March. The paper has not been
peer reviewed.
Fig. 1Reservoir-pressure and -temperature conditions of exploratory wells
drilled in the Krishna Godavari basin.
HP/HT-hc
Ultra-HP/HT
HP/HT
Krisna
Godavari
wells
260C
205C
150C
6
9

M
P
a
1
3
8

M
P
a
2
4
1

M
P
a
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
600
500
400
300
200
100
0
Static Reservoir Pressure, psi
S
t
a
t
i
c

R
e
s
e
r
v
o
i
r

T
e
m
p
e
r
a
t
u
r
e
,

F
HP155320.indd 111 3/14/13 11:01 AM
112 JPT APRIL 2013
lenging safety concern. All activities, in-
cluding drilling, completion, and well
testing, expose equipment to the harsh
operating environment. Operating con-
ditions approach the upper limit of hard-
ware parameters, thus increasing the
chances of tool failure or metal fatigue
that could lead to lost rig time, cost over-
runs, and high replacement costs. To en-
sure safe and efficient operations, stan-
dard operating procedures should be
set and followed strictly. Quality-control
procedures for all materials and equip-
ment should be established to ensure
that temperature and pressure operating
limits are not exceeded.
Drilling Fluid. During exploration, a sig-
nificant understanding of the lithology,
formation tops, and associated drilling
risks and operational hazards must be ac-
quired. High temperatures have a strong
influence on mud rheology, which has a di-
rect relationship with drilling efficiency by
affecting well hydraulics and the suspen-
sion of cuttings. A well- designed mud pro-
gram is essential, and a good mud program
preserves desirable rheological properties
at high temperature. It also balances the
mud weight to contain formation pressure
with minimum invasion to achieve a sat-
isfactory rate of penetration in the wells.
During development, all intervals above
the reservoir sections were drilled with
WBM. Before entering the reservoir sec-
tion, the mud system was switched to an
SOBM, which is better suited for drilling
water-sensitive shale. Adequate salinity
was determined through field experience.
Oil-based mud (OBM) usually allows fast-
er drilling than WBM while providing ex-
cellent shale stability. OBMs are suited to
drill formations in which the bottomhole
temperature exceeds WBM tolerances, es-
pecially in the presence of contaminants
(e.g., water, gas, cement, and salt) up to
550F. An OBM has a thin filter cake, and
the friction between the pipe and the well-
bore is minimized, thus reducing the risk
of differential sticking. Also, it is especial-
ly suited for highly deviated and horizon-
tal wells. Pipe corrosion is controlled be-
cause oil is the external phase and it coats
the pipe. The most interesting properties
regarding corrosion are that oil is non-
conductive, additives are thermally sta-
ble and do not form corrosive products,
and bacteria do not thrive in OBM. How-
ever, SOBM was chosen over OBM because
SOBM is more readily biodegradable than
OBM, the base viscosity is higher than
that of OBM at normal conditions, SOBM
is less toxic than OBM, and it provides
good hole gauge and a good environment
forlogging.
Temperature Limit for Logging-While-
Drilling (LWD) and Measurement-
While-Drilling (MWD) Tools. The LWD
and MWD tools should be rated for con-
ditions of 400F and 12,000 psig. These
tools have been used in the wells with
reasonably good success. Occasionally,
there have been problems of temporary
and permanent data loss. These issues
were diagnosed as tool failure primarily
caused by high temperature, excessive
vibration/shock, or both. Because service
companies are expanding the operating
range of these tools, the tools should be
able to be deployed with more confidence
in the future. The primary concerns re-
garding high temperature are reduction
in strength and the change in corrosion
mechanisms. Usually, higher tempera-
tures increase the severity of corrosion.
Pitting, crevice formation, and stress-
corrosion cracking are intensified by an
increase in temperature. The presence
of H
2
S, CO
2
, and chlorides aggravates
thesituation.
Drilling Problems. The 12-in. sec-
tion was drilled mainly through the
shale overlying the sandstone forma-
tions, and was drilled with WBM with
KCl and an enhanced polyglycol system,
except in Well-D because it was the last
well drilled in the series of four wells
and was planned from the learnings ob-
tained from the previous wells. In spite
of many additives used in WBM for clay-
hydration and - inhibition drilling, this
section encountered problems such as
low rate of penetration, hole-cleaning
problems because of cavings falling in
the wellbore, wellbore fill, stuck pipe, bit
balling, and high torque values damag-
ing topdrive systems, all of which were
attributed to clay swelling resulting from
hydration. The same problems were ob-
served while drilling the 8-in. section
with WBM. Therefore, the 8-in. section
in Well-C was drilled with SOBM because
the problems with clay hydration in shale
were alleviated. Hence, SOBM was used
to drill the 12- and 8-in. sections in
Well-D. No problems relating to clay hy-
dration were experienced while drilling
with SOBM because SOBM did not desta-
bilize clay. However, most of the effects
from high temperature and pressure oc-
curred when the bottomhole tempera-
ture reached 410F, requiring continu-
ous circulation of mud to cool the LWD
and MWD tools for proper functioning.
As a result of the high temperature, high
wear, and high bottomhole pressure, rub-
Fig. 2Pore-pressure and fracture-pressure variation with depth.
8 9 10 11 12 13 14
15 16 17 18 19
0
1000
2000
3000
4000
5000
6000
Equivalent Mud Weight, lbm/gal
T
r
u
e

V
e
r
t
i
c
a
l

D
e
p
t
h
,

m
Reservoir cased in 8-in. hole
x
x
x
Offset Well 1 FG
Offset Well 2 LOT
Well A Pore Pressure
Well A LOT
Well B LOT Prediction
Well B LOT Prediction
x
HP155320.indd 112 3/15/13 10:58 AM
ber elements from the mud motor were
seen at shakers. The mud pH had to be
kept higher than program to compen-
sate for reduction in pH with the very
high temperatures. Gelation also had
been an issue with WBM used in the very-
high- temperature environment. The mud
weight had to be kept close to 14.9lbm/gal
in the 8-in. section to overcome reser-
voir pressures and to overcome swabbing
effects along with the density reduction
with higher temperature. The low-gravity
solids while drilling were a major prob-
lem in these sections because they ob-
structed the shakers with increased vis-
cosity from clays, and drilling fluid had
to be diluted and sheared to reduce fluid
loss at the shakers and flowline. A mud
cooler also was required to cool the mud.
Modular Formation Tester. A compre-
hensive study was carried out to analyze
the reservoir by use of wireline-log data,
core data, and well-test results. Formation
tops were available from the logs and were
used for modeling. Shale volume, total
porosity, effective porosity, and water
saturation were calculated with standard
techniques. The core data were used to
calibrate the log analysis and understand
the mineralogical behavior. All four wells
were logged with the same log suites, in-
cluding caliper, gamma ray, formation-
capture cross-section, acoustic, neutron,
density, and deep-resistivity logs. The dif-
ference between the density and neutron
logs and the aluminum content observed
from the elemental-capture- spectroscopy
(ECS) tool were used as shale indicators.
Density-log data were used to estimate
porosity. Formation-capture cross sec-
tion was used as a clay indicator along
with ECS aluminum values. Porosity was
calculated from density/neutron data cor-
rected for clay effects. Because SOBM
was used in the 8-in. section, the log
data and hole quality were excellent. Clay
volume was computed from gamma ray,
neutron, and formation-capture cross-
section logs. The neutron and formation
capture showed similar results, but the
gamma ray showed deviation caused by
mineralogical effects. Clay indicators are
logs that enable estimating shale volume
in shaly sands. Multiple clay indicators
were used to ensure correctness of calcu-
lated shale volume. The gamma ray data
were ineffective when thorium content
of the sands was high. Log interpretation
showed that a large section of sandstone
is interbedded with claystone and silt-
stone in the reservoir.
Challenges While Well Testing
Careful planning and tool/equipment se-
lection were critical to successful well
tests. Possible operational problems in-
clude the following:
Temperature restrictions of the
flow head and surface equipment
during the flow period
Gauge and downhole-tool failure
resulting from exposure to high
bottomhole temperatures
Selecting suitable perforation
charges for HP/HT environments
Most of the these issues were ad-
dressed by careful planning, meticu-
lous test design, and proper selection
of tools and equipment suitable for the
HP/HTenvironment.
Elastomers. The following conditions
should be considered before selecting
elastomers.
Fluids to be Sealed. The type of
well fluid should be considered, includ-
HP155320.indd 113 3/25/13 8:00 AM
114 JPT APRIL 2013
ing drilling mud and aggressive brines
such as formites or calcium bromides.
Acids and alcohols also are important pa-
rameters for selection.
Temperature Range. Include the
minimum and maximum operating con-
ditions along with thermal cycling and
potential exclusions. Some seals are not
appropriate for low temperatures. High
temperature will soften elastomers, in-
creasing the rate of diffusion of liquids
and gases and accelerating chemical deg-
radation. These can occur irrespective of
the service pressures involved.
Pressure Range. Maximum and
minimum operating ranges must be con-
sidered along with the compression and
decompression rate if the pressure is
high. High pressures increase the pos-
sibility of physical-based-deterioration
processes such as extrusion (when gases
are involved).
DST Tools. All DST materials exposed to
H
2
S should meet the conditions estab-
lished in NACE Standard MR-01-75 for the
region vulnerable to sulfide-stress corro-
sion. Here, it was necessary to use mate-
rials that were not very hard, with a Rock-
well hardness coefficient, or HRC, 22,
except in the case of corrosion- resistant
alloys for which hardness may be greater.
It should be kept in mind that the need
to use materials with a lower hardness
may conflict with mechanical-resistance
requirements that must be met by the
string. The DST tools should be of HP/HT
rating and should be pressure and func-
tion tested off line to at least 80% of their
maximum pressure rating. Tools that
have a ball mechanism or flapper opera-
tion should be redressed before running
them in the hole. Gauge carriers should be
coupled with gauges and pressure tested
to determine the error resolution. A suffi-
cient quantity of O-rings should be avail-
able, and a new ring should be used each
time to minimize pressure losses down-
hole. Rupture disks should be marked
clearly according to the calculations to
eliminate chances of error while install-
ing them before running the tool in the
hole. The DST-string design should have
adequate backup valves to minimize un-
expected conditions. Apart from the DST
tools, there should be a sufficient number
of crossovers depending on the type of
connection of tools used.
Tubing Selection. Produced gas con-
tained approximately 46% CO
2
and
100 ppm H
2
S, which is corrosive when
combined with produced water. Duplex,
Super Duplex, or Inconel 718, 725, 825,
or 925 tubing is advised in such condi-
tions, although it is possible to inject cor-
rosion inhibitor downhole and to use
carbon-steel tubing. The tubing is re-
sistant to corrosion and requires mini-
mal operational maintenance. In recent
years, this tubing has been the stan-
dard for corrosive applications. Tubing
threads should be inspected closely by
the tubing- running service provider, and
only those that qualify at the minimum
torque values should be run in the hole.
Packer Selection. When testing deep
high-pressure gas wells, collapse and
tension along the casing/liner and test
string constitute a true cause for concern.
The casing/liner may collapse below the
packer, while the test string may collapse
above the packer during attempts to flow.
When reverse- circulation valves are being
opened, collapse of the tubing/test tools
may occur immediately above the packer
if backpressure in the test string is inad-
equate. Tensioning may cause the tubing
to rupture immediately below the control
head during hydrostatic testing of the test
string. In packer selection, consideration
must be given to the behavior of the pack-
er material if CO
2
or H
2
S is expected in the
reservoir fluids. If alloys such as K-Monel
(resistant to hydrogen embrittlement) are
used, the possibility of galvanic corrosion
at the packer/casing-steel interface must
be examined. Generally, packer fluid oc-
cupies the primary annulus and usually is
brine with low corrosive action. Potential
leaks can be caused by elastomeric extru-
sion or the temperature/chemical effects
on the elastomer. Packing-element fail-
ure could be caused by insufficient load
applied to pack off against the casing, or
the element being damaged during in-
stallation. Packers sometimes fail when
the sealing element extrudes through the
backup element.
Explosives. The perforation explosive
should be selected on the basis of maxi-
mum temperature and the time that it
will stay in hole. There are three varieties
of explosives, shown in Fig. 3, that quali-
fy for high-temperature conditions: HNS,
HMX, and RDX. Their reliability with
temperature decreases with time. Tubing-
conveyed perforating guns should be used
to reduce or avoid formation damage.
Perforating should be conducted with an
underbalance of 1,500 to 2,000 psi, using
a diesel or water cushion, with the well
beginning production immediately fol-
lowing the perforation operation. Under-
balancing should not exceed 2,000 psi,
to avoid bottomhole-equipment damage.
The firing head should have a backup (i.e.,
hydraulic firing head as primary method
and mechanical as a backup) in case of
primary-method failure.
Gauges. Even if the electronic memory
gauges are extremely well specified, it is
highly advisable that high- temperature
mechanical gauges be used as back-
up gauges. Electronic high-temperature
gauges have a high failure rate when ex-
posed to harsh conditions over long pe-
riods of time. Electronic and mechani-
cal pressure gauges should be placed on
Fig. 3Temperature rating of explosives systems.
1 10 100
HNS
HMX
RDX
1,000 10,000
600
500
400
300
200
100
315
260
204
149
93
37
Time, hours
T
e
m
p
e
r
a
t
u
r
e

C
HP155320.indd 114 3/14/13 11:02 AM
115 JPT APRIL 2013
gauge carriers with the largest capacity
and the smallest external diameter pos-
sible. A minimum of four electronic and
two mechanical gauges should be used
on test strings. Gauge carriers should
be placed above the packer and above
the test strings weakest point so that in
the worst case the downhole data can
beretrieved.
Problems. Among the DSTs performed in
the four wells, a few problems were com-
mon and consumed much rig time, there-
by adding cost to the program. The HP/
HT package was selected for well tests, yet
many of the tools and much of the surface
equipment failed because of unexpect-
edly high temperatures and sand produc-
tion. The pressure testing and repairing
of the tools before the run required much
time. Normal procedure was followed for
well testing (i.e., a test run followed by the
DST run).
There were several DSTs performed
on these four wells, providing many les-
sons. The HP/HT-rated O-rings should be
selected to avoid unnecessary pressure
drops resulting from their failure. During
sand production, it was necessary to pass
the flow through a sand filter before going
to the choke manifold, to avoid abra-
sions or washouts of equipment and con-
nections. Metal-to-metal seals should be
changed before final equipment rig up be-
cause disassembling the equipment and
pressure testing it again requires signifi-
cant time. To ensure functionality down-
hole, all DST tools with moving parts,
such as balls or flappers, should be re-
dressed and pressure tested to 80% of
their maximum rating for proper opera-
tion before running in the hole. Rupture-
disk ratings should be marked separately
to avoid confusion while installing them
before running the tool. A minimum of
four gauges should be run for any opera-
tion to obtain more-reliable data and to
ensure that at least two of the guages ac-
tually function, thus yielding a reliable
quantitative interpretation of the test in
terms of such information as depletion,
productivity, damage, and permeability.
While running in hole, care must be taken
to prevent breaking down of weak forma-
tions. With a small clearance between the
packer element and the hole wall, pres-
sure builds up under the packer that can
cause lost circulation. The DST assembly
should be pulled out slowly to avoid pack-
er damage. If the pressure continues to
increase at the choke manifold even after
downhole shut-in, one should not rush to
operate the tool again because the prob-
lem may be the result of expansion of the
gas column trapped between the down-
hole-tester valve and the choke manifold.
Apart from practical experiences,
the test program should include the com-
plete sequence of events, a comprehen-
sive contingency plan, all aspects of safe-
ty, and calculation of test-string tension.
Further, DSTs should be based on the
strictest safety standards and operational
procedures. With all data collected into a
single volume, all necessary information
may be consulted rapidly and directly.
Quality control of the material and equip-
ment should be efficacious and rigorous,
especially in terms of exposure to high
concentrations of H
2
S. JPT
HP155320.indd 115 3/25/13 7:59 AM
116 JPT APRIL 2013
A
s operators continue to drill
into deeper and more-extreme
formations, the demand for technologies
suited to these environments increases.
Much effort has been invested across
the industry to overcome obstacles in
developing safe and reliable completion
tools that are qualified for conditions
in excess of 15,000 psi and 450F. A
technological milestone was set recently
in packer-seal-system development
the first 25,000-psi, 500F packer-
sealsystem.
Introduction
The criteria for designating fields as
high-pressure/high-temperature (HP/HT)
fields have changed over the years. Early
on, HP/HT fields were those with pres-
sures greater than 10,000 psi and tem-
peratures higher than 300F. During
the last 20 years, the HP/HT designa-
tion changed to 15,000 psi and 350F,
an environment in which technical op-
erational challenges have been mostly
overcome. Other terms have come into
use to designate new HP/HT thresholds.
Extreme-HP/HT fields have pressures up
to 20,000 psi and temperatures up to
450F, and ultra-HP/HT fields have pres-
sures up to 30,000 psi and temperatures
up to 550F.
High gas prices and the search for
hydrocarbons in deeper formations
are key drivers for development of new
HP/HT completion technologies. Ex-
treme-HP/HT wells are being drilled in
the Gulf of Mexico, on the shelf and in
deep water. Many of them have a total
depth of more than 25,000 ft and ex-
hibit reservoir pressures approaching
20,000 psi and temperatures exceeding
450F. There is limited availability of spe-
cialized tools for these pressures and
temperatures. In ultra-HP/HT environ-
ments, there are many technical diffi-
culties that must be overcome, includ-
ing seals and polymers, metallurgy, and
testfacilities.
Concept Design
The objective of this project was to design
a sealing system for a packer for 7.625-in.,
51.252.8-lbm/ft casing. The sealing sys-
tem must be rated to 25,000 psi at 500F.
Qualification testing was conducted with
nitrogen to all rating-envelope points at
500F with a cool down to 250F. To en-
hance performance in as-rolled casing
and ultra-HP/HT applications, two ex-
isting systems were considered for the
new seal design. System A is rated to
15,000psi and 350F. System B is rated to
15,000 psi and 500F. In addition, the Sys-
tem-A packer has been qualified for appli-
cations with grooved or poor conditions
on the inside diameter (ID) of the casing.
The System-A packer, shown in
Fig. 1, uses a three-piece, multiple-
hardness packing-element system
that is set by compression and is con-
tained by metal backup rings. The rub-
ber packing elements push against the
backup rings, causing them to expand
to the casing ID. The higher the tem-
perature, the more difficult it is to set
this packing- element system correct-
ly. The higher temperatures cause the
packing element to become soft, which
then increases the difficulty of getting
the backup rings to contact the casing ID
before the rubber begins to extrude over
them. Also, the higher the pressure, the
thicker the backup rings must be, which
makes them more difficult to expand.
Therefore, at 25,000 psi and 500F, the
backup rings need to be thick but the
rubber will be soft, making it difficult to
expand the backup rings to the casing ID
without the rubber extruding over them.
However, this design performs well in
irregular or grooved casing IDs. The tips
of the backup rings are very thin, which
allows them to conform to grooved and
as-rolled casing IDs.
The System-B seal shown in Fig. 2
consists of a metal insert with rubber
molded to the outside and an O-ring on
the inside. The inside is tapered to match
the taper on a swage. The seal and swage
are pushed toward each other, causing
the seal to expand to the casing ID. The
rubber is bonded to the insert to prevent
it from being removed by swabbing ef-
fects during pipe movement. Protrusions
25,000-psi 500F Packer-Seal System
of paper SPE 159182, A Completion-Technology MilestoneThe First 25,000-psi
500F Packer-Seal System, by James Doane, Guijun Deng, SPE, and Scott Collins,
SPE, Baker Hughes, prepared for the 2012 SPE Annual Technical Conference and
Exhibition, San Antonio, Texas, 810 October. The paper has not been peer reviewed.
Fig. 1System-A packer element in the run-in and set positions.
Run-in position
Set in casing
Run-in position
Set in casing
HP159182.indd 116 3/14/13 11:04 AM
118 JPT APRIL 2013
on the insert prevent the rubber from
extruding. The System-B seal does not
rely on the rubber to deploy the extru-
sion barriers; therefore, soft rubber can
be used with higher temperatures. Also,
System B appears to be able to hold high-
er pressure because the extrusion gap
issmaller.
A new seal design combined the best
aspects of Systems A and B. The thin
metal backup profile from System A was
coupled with the System-B seal. The com-
bination resulted in an optimized de-
sign, shown in Fig. 3, which can be set
at high temperatures and can hold high
pressures with improved performance in
irregular-ID casing.
Material Characterization
Elastomer. Perfluoroelastomer (known
as FFKM) was chosen as the rubber
material because of its temperature
and chemical resistance. FFKM has the
highest temperature rating and best
chemical resistance of known elas-
tomers. The compound is stable in
oil, amines, H
2
S, CO
2
, and zinc bro-
mide. Also, the compound is stable up
to 550F and is Norsok-qualified for
explosivedecompression.
Metallurgy. Nickel-alloy C-276 was cho-
sen as the seal-material carrier because
of its excellent ductility and corrosion
and cracking resistance. Engineering
stress and strain (from elastic to plastic)
curves were determined through testing
by a certified test laboratory.
Design Optimization. Finite-element
analysis (FEA) was used for design opti-
mization of the ultra-HP/HT packer-seal
system. 2D axis-symmetrical nonlinear
FEA was conducted to optimize the seal
design. Five 2D nonlinear FEA models
with varying temperatures and casing
IDs were run.
Extrusion-barrier deployment
Maximum casing ID at 250F
Maximum casing ID at 500F
Minimum casing ID at 250F
Minimum casing ID at 500F
To achieve a viable design, the
equivalent plastic strain in the metal
insert and the maximum elastic/plas-
tic strain in the seal were measured
in all models. The equivalent plastic
strain in the metal should not exceed
the maximum allowable plastic strain,
and the maximum elastic strain in the
seal should not exceed the maximum
allowable strain. The seal must set and
withstand 25,000 psi above and below
the packer with combined tensile and
compressive loading without packing-
element extrusion.
The process was repeated until an
optimum seal design was achieved. Then,
a 3D FEA model was developed to iden-
tify the minimum setting force. The 2D
FEA model assumed that the casing ID
was perfectly round, and the 3D FEA
model considered an as-rolled casing-ID
profile with as much as 0.070-in. devia-
tion from nominal-ID dimensions.
Seal Manufacture
During the design-optimization process,
manufacturing optimization was consid-
ered as a design objective. To make ma-
chining easier, the cavity on the metal
insert was made as shallow and as wide
as possible. The radius on the transition
area also was made as large as possible.
A bond between the FFKM seal materi-
al and the C-276 metal insert is required
to prevent the seal material from being
pulled off of the insert cavity by high
rates of fluid flow around the outside of
the seal during deployment. The bond
also is required to resist the seal ma-
terial being pulled outward because of
thermal expansion. Additionally, mold-
ing FFKM in complex shapes had not
been performed previously, and there-
fore engineering and vendor collabora-
tion was critical to the success of the
sealconstruction.
Test Qualification
The test philosophy was for each new
packer-seal system to be tested at worst-
case conditions. The reliability of down-
hole completion equipment is influ-
enced greatly by the ambient conditions
of the equipments location. This new
seal design was installed on a packer
chassis, and qualification testing was
conducted with nitrogen to all rating-
envelope points at 500F with a cool
down to250F.
Test-Load Cases. Seven load cases were
tested.
Rating-envelope Point
125,000-psi pressure below
the seal with 240,000-lbf
compression at 500F
Fig. 2System-B packer element in the run-in and set positions.
Fig. 3New packer-seal system in the run-in and set positions.
Run-in position
Set in casing
Run-in position
Set in casing
Run-in position
Set in casing
Run-in position
Set in casing
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BWA Water Add|t|ves |s the g|oba| |eader
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*VU[HJ[ \Z [VKH`! HTLYPJHZ'^H[LYHKKP[P]LZJVT
HZPHWHJPJ'^H[LYHKKP[P]LZJVT
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HP159182.indd 118 3/14/13 11:04 AM
2425,000-lbf tension at 500F
325,000-psi pressure above
the seal with 490,000-lbf tension
at 500F
425,000-psi pressure above
the seal with 240,000-lbf tension
at 500F
5425,000-lbf compression at
500F
Temperature cycled from 500 to
250F with 25,000-psi pressure
below the seal and held for 1
hour, then heated back to 500F
625,000-psi pressure below
the seal with 365,000-lbf
compression at 500F
The pressure and load were held on
the packer for 1 hour. The bubble tank
was monitored for bubbles during the
final 15 minutes. Fig. 4 shows the packer
after testing. There was no damage to any
of the packer components.
Conclusions
A permanent-packer-seal system was
built to seal pressure from above and
below the seal at 25,000 psi at 250F and
at 500F. It is a big step into the ultra-HP/
HT region, where the most potential ex-
ists for finding large amounts of resourc-
es for the global market. JPT
Fig. 4Permanent packer after the test.
HP159182.indd 119 3/25/13 7:55 AM
120 JPT APRIL 2013
A
high-pressure/high-temperature
(HP/HT) exploration field in
Block PM on the northern side of the
Malay basin, Malaysia, is notorious for
a steeply rising pressure ramp, narrow
drilling-operation window (only 0.5
to 0.6 lbm/gal in the 14 and 9-in.
sections), and interbedded sand/coal
and shale formations. Block PM is
still in the exploration-and-appraisal
stage; therefore, petrophysical
information is limited. Well SBD-2
was the second attempt to reach and
cross the F and H sands. Formation-
pressure-while-drilling (FPWD) and
managed-pressure-drilling (MPD)
technologies were applied to drill this
well. FPWD provided a direct pressure
measurement while drilling to set
the lower boundary, and formation-
integrity tests (FITs) with MPD
provided the upper boundary.
Introduction
The SB field has a relatively high tem-
perature gradient and abnormal-pres-
sure regimes. Challenges in this HP/HT
environment include a reduced kick tol-
erance, narrow drilling margin, higher
drilling-fluid densities, high tempera-
ture (limitations in formation-evaluation
equipment), wellbore ballooning, and
availability of personnel experienced in
HP/HT drilling.
Well SBD-2 had been considered un-
drillable because of its very narrow safe-
drilling margin. The previous attempt
to drill through the F and H reservoir
sands, Well SBD-1, suffered an influx
from the formation that exceeded kick
tolerance and compromised the fracture
gradient, resulting in total fluid losses.
Well SBD-1 failed to reach total depth
(TD) despite the use of an MPD sys-
tem200 m shy of the geologic target.
Well SBD-2 was drilled only 50 m away
from Well SBD-1. Given the close prox-
imity, there were offset pressure data for
planning Well SBD-2 down to a depth of
X240 m, but beyond this depth it would
be exploratory drilling. Given the uncer-
tainties that would be encountered drill-
ing past X240 m, the engineering team
sought best practices and technologies
that would provide the greatest chance
of success drilling into such a tight mar-
gin at high temperature.
The 89-in. reservoir section
would use an automated MPD system
to mitigate drilling risk complemented
by an FPWD tool in the drilling bottom-
hole assembly (BHA) to provide direct
pressure measurements. The MPD sys-
tem was used for early kick detection
(EKD), FITs, dynamic flow checks, and
constant-bottomhole-pressure (CBHP)
control for a safe mud-weight window
that was expected to be less than 0.9
lbm/gal. The high mud weight needed
to drill this formation resulted in a high
equivalent circulating density (ECD)
throughout the section, requiring the
MPD system to maintain a static condi-
tion between 0.2 and 0.4 lbm/gal. The
FPWD tool would provide pressure data
to establish the lower limit for the MPD
fingerprint tests, and to serve as calibra-
tion points for the pore-pressure model.
The objective in this 89-in. sec-
tion was to maintain overbalance in the
narrow window between pore pressure
and fracture gradient. These tight drill-
ing margins required use of an automat-
ed MPD system with software capable
of predicting temperature effects and
annular-pressure behavior during any
well-controlsituation.
MPD Overview
The International Association of Drill-
ing Contractors Subcommittee on Un-
derbalanced and Managed Pressure
Drilling has made the following formal
definition of MPD. MPD is an adaptive
drilling process used to control the an-
nular pressure profile precisely through-
out the wellbore. The objectives are to
ascertain the downhole-pressure en-
vironmental limits and to manage the
annular hydraulic- pressure profile ac-
cordingly. MPD is intended to avoid con-
tinuous influx of formation fluids to the
surface. Any flow incidental to the opera-
tion will be contained safely by use of an
appropriateprocess.
The MPD process uses a
collection of tools and techniques
that may mitigate the risks and
costs associated with drilling
wells that have narrow downhole-
environmental limits by
managing the annular hydraulic-
pressure profile proactively.
MPD may include control of
backpressure, fluid density,
fluid rheology, annular-fluid
level, circulating friction, and
hole geometry or combinations
thereof.
MPD may enable faster corrective
action to deal with observed
pressure variations. The ability
to control annular pressures
Integrating FPWD Measurements
With Managed-Pressure Drilling
of paper SPE 156888, Demonstrating the Value of Integrating FPWD Measurements
With Managed-Pressure Drilling To Drill Narrow Mud-Weight Windows Safely in an
HP/HT Environment, by L. Umar, SPE, I. Azian, N. Azree, and A.R.M. Ali, Petronas,
and A. Waguih, SPE, F. Rojas, SPE, S. Fey, SPE, B. Subroto, SPE, B. Dow, and
G. Garcia, SPE, Schlumberger, prepared for the 2012 SPE/IADC Managed Pressure
Drilling and Underbalanced Operations Conference and Exhibition, Milan, Italy,
2021 March. The paper has not been peer reviewed.
HP156888.indd 120 3/14/13 11:05 AM
121 JPT APRIL 2013
dynamically facilitates drilling
of what might otherwise be
economically unattainable
prospects.
Not in the formal definition but im-
plied is that this drilling method uses a
single-phase drilling fluid treated to pro-
duce minimal flowing frictional pressure
losses. MPD helps manage the problems
of massive losses associated with drilling
fractured and karstic carbonate reser-
voirs. It also manages ECD when drilling
extended-reach wells and wells with nar-
row margins between formation break-
down and well kicks.
The MPD system used in Well SBD-2
included an automated-control-and-
data-acquisition system that monitored
and controlled the annular pressure. The
primary objective of this process is to
control the bottomhole pressure (BHP)
at a fixed point in the open hole, keeping
the BHP within an acceptable range to
prevent influx, borehole instability, bal-
looning, breathing, and mud loss. The
MPD system includes an automated con-
trol system, bypass line, choke mani-
fold, dynamic relief choke, backpressure
pump, Coriolis flowmeter, control cabin,
and all necessary surface piping and iso-
lation valves to connect the MPD equip-
ment to the rig equipment (Fig. 1) and
rotating control device (RCD) (Fig. 2).
FPWD Overview
The FPWD tool provides direct real-time
measurement of formation pressure and
mobility. The 30-ft-long FPWD tool has
an integral stabilizer that houses the
measurement section (Fig. 3). The tool
is a probe-type formation tester, similar
in design and operation to convention-
al wireline formation testers. In opera-
tion, the measurement probe is brought
to the desired test depth at neutral drill-
string weight, the BHA is kept stationary
while the pretest is conducted (approxi-
mately 10 minutes of total stationary
time), and the measurement is transmit-
ted tosurface.
A challenge with FPWD tools is con-
trolling the pretest to provide the cor-
rect rate and volume to yield a stable
pressure. For FPWD pretests, a down-
link command is sent to the measure-
ment-while-drilling tool and forwarded
Fig. 2The RCD package with offshore kit installed on
18-in. 10,000-psi blowout preventer.
Fig. 1Offshore dynamic-annular-pressure-control
package on the jackup drilling unit.
HP156888.indd 121 3/25/13 7:58 AM
122 JPT APRIL 2013
to the FPWD tool. This command car-
ries instructions regarding which pre-
test sequence to carry out. Depending
on the sequence called for, the param-
eters of the pretest may be either fixed
or downhole variable. Fixed pretests will
adjust the rate, volume, and time for the
pretest sequence and are chosen on the
basis of anticipated formation mobil-
ity. Uncertainties in formation mobil-
ity can provide a risk to the use of fixed-
mode pretests, but the ability to control
the rate and volume directly can be use-
ful in difficult testing conditions. Time-
optimized pretests (downhole variable)
will vary rate and volume intelligently
downhole, independent of surface con-
trol, to achieve a stable pressure within
the 5 minutes allotted for measurement.
This pretest type is designed to over-
come limitations of mud-pulse telemetry
used to control logging-while-drilling
(LWD) tools. Time-optimized pretests
provide a much better chance of obtain-
ing a valid measurement on the first pre-
test attempt, given their ability to vary
the rate and volume; however, the flex-
ibility to control rate and volume direct-
ly with a fixed-mode pretest can bring
value. In Well SBD-2, a combination of
fixed and time-optimized pretests was
used in the testing program.
Taking pretests for drilling applica-
tions, such as pore-pressure calibration,
can be challenging given the very dy-
namic nature of the wellbore and near-
wellbore formation shortly after drill-
ing. Challenges include the inability to
make a seal because of a lack of mudcake,
supercharging that can lead to nonrep-
resentative formation pressures, and
continuous invasion and secondary su-
percharging from mud circulation dur-
ing the pretest.
Kick and Loss Detection
The low kick tolerance and consequent
loss of SBD-1 indicated that a key chal-
lenge for SBD-2 was kick tolerance. En-
gineering analysis before drilling in-
dicated a kick tolerance of 55 bbl in
the 814-in. section, 15 bbl in the
1012-in. section, and only 10 bbl
in the 89-in. section. Precise and
early kick detection was vital to pre-
vent influx volumes that could compro-
mise open formations or the lowermost
casing shoe. Integrating EKD into the
MPD system allowed precise measure-
ments of inflow through stroke coun-
Fig. 4Overlaid results from Pretests 13 and 21, taken 30 hours apart. Pretest 21 was a repeat of Pretest 13 at the same
depth to confirm the higher-than-expected pore pressure.
FPWD Pretests 13 and 21 Repeat at X592.10 m
Time, seconds
P
r
e
s
s
u
r
e
,

p
s
i
a
Test 13 Flowline Pressure Test 21 Flowline Pressure Test 13 Annular Pressure
Formation pressures match within 1.5 psi after
30 hours despite significantly different annular
pressure. The repeat confirms the high pore pressure.
Test 21 Annular Pressure
8200
8150
8100
8050
8000
7950
7900
85 135 185 235 285 335 385 435 485
Fig. 3Stabilizer and measurement
section of the FPWD tool used in
Well SBD-2. Front facing side of the
stabilizer, with rubber packer and
flowline visible near the top of the
stabilizer. Half-blades on the sides
open the flow area near the rubber
packer, thereby slowing mud flow
(for pumps-on tests) and reducing
secondary supercharging effects.
HP156888.indd 122 3/14/13 11:06 AM
123 JPT APRIL 2013
ters and outflow with a Coriolis flow-
meter. Small deviations were identified
through an alarm system to alert the
team to any changes beyond noise, to
prevent false alarms. In total, the system
identified two kick events and five loss
events throughout the drilling of Well
SBD-2. An unexpected high pressure was
recorded at test point X590 m. There-
fore, the test was repeated 30 hours later
with a pressure recorded within 1.5 psi
of the original measured pressure, pro-
viding further confidence in the FPWD
result (Fig. 4). With knowledge of this
high pore pressure, the MPD fingerprint
tests proceeded without going below
18.2 lbm/gal, eliminating any chance of
formation-fluid influx.
Pore-Pressure Prediction
Given the failure of Well SBD-1 to reach
TD, an effort that relied primarily on
MPD alone, the approach used for Well
SBD-2 could be considered all-inclu-
sive in that a variety of disciplines sup-
plied data that were used by the drilling
team to develop a representation of oc-
currences downhole. It was envisioned
that such an approach could overcome
shortcomings that could be inherent in
a single standalone approach. Examples
of data used to understand pore pres-
sure and wellbore behavior while drill-
ing include:
A geomechanics predrill study
Real-time monitoring through
the pore-pressure mud-logging
team by use of cuttings, drill gas,
and flow-rate change
Wireline formation-pressure
measurements throughout the
upper well sections
LWD measurements for pore-
pressure-trend analysis (e.g.,
resistivity)
FPWD with LWD in the
89-in. section
Real-time hydraulics
modelingto understand
the ECDbehaviorgiven the
temperature, pressure, and
fluidproperties
Look-ahead seismic to match
synthetic-seismic models and tie
to velocity horizons
Dynamic fingerprinting with
MPD
Conclusions
The 89-in. section of Well SBD-2
presented the operator with a difficult
decision that is becoming more com-
mon as the industry extends its reach
to more-challenging reservoirs: How to
balance risk, such as losing an expen-
sive LWD BHA vs. the need to acquire
data to understand the downhole con-
ditions. Lessons learned from previous
well operations prompted the opera-
tor to use the latest technical enablers,
such as real-time FPWD pressures, to
provide a clearer description of down-
hole conditions and enable informed
decision making.JPT
HP156888.indd 123 3/25/13 7:56 AM
124 JPT APRIL 2013
Alexandre
Emerick, SPE, has
been a reservoir
engineer at
Petrobras Research
Center since 2004.
His research
interests include reservoir simulation,
history matching, uncertainty
quantification, and optimization.
At Petrobras, Emerick worked as a
researcher and coordinator of projects
on time-lapse seismic, smart fields,
optimal well placement, and assisted
history matching. He holds BS and
MS degrees in civil engineering from
the University of Brasilia, Brazil, and a
PhD degree in petroleum engineering
from The University of Tulsa. Emerick
has published six papers in peer-
reviewed journals and 12 papers in SPE
conference proceedings, most in history
matching. He is a member of the JPT
Reservoir simulation is essential in the decision-making process for the development
and management of petroleum reservoirs. A simulation model can predict the reser-
voir behavior under various operating conditions. Hence, engineers can test differ-
ent locations for infill-drilling wells or investigate the performance of an enhanced oil
recovery process, for example. However, the actual properties of a reservoir are poorly
known. Therefore, it is essential to incorporate all relevant (and consistent) informa-
tion about the reservoir in the models. The process of incorporating dynamic data into
reservoir models is known in the petroleum literature as history matching.
History matching has been the subject of intense investigation and development
in the last 4 decades. However, in practice, we still observe a significant number of
engineers manually history matching their models in an arduous and tedious process
of trial and error. Moreover, the need for uncertainty quantification demands that
engineers provide multiple history-matched models, which does not make life easier.
Fortunately, this scenario is gradually changing. First, advances in computer hard-
ware and software allow engineers to run multiple reservoir simulations in a reason-
able time. Second, computer-aided history-matching tools assist the process, reduc-
ing the human time spent on repetitive activities, which results in more time for ana-
lyzing results and making decisions. Nevertheless, this tale is far from the happy end.
Even though we have faster computers and sophisticated assisted-history-matching
methods, we always want (need) more. We want more geological realism. We want
more integration among disciplines. We want to incorporate different (and sometime
exotic) types of data. We want better uncertainty quantification. We want to close the
loop and make decisions in real time. This makes history matching a fascinating, chal-
lenging, and prolific research area.
Perhaps it is fair to state that the concept of history matching is evolving from the
idea of finding the best model (i.e., the model that best reproduces the field observa-
tions) to the idea of a process of uncertainties mitigation. In this sense, the modern
interpretation of history matching is better defined as a sampling problem rather than
an optimization (minimization) problem. In this interpretation, the goal is to explore
the uncertainty space searching for solutions (samples) that are consistent with the
geological information and able to reproduce the observations within the confidence
level of the data. Interpreting the history matching as a sampling problem does not
diminish the importance of optimization methods though. In this concept, optimiza-
tion becomes a mathematical tool for solving the sampling problem efficiently.
The papers summarized in this feature and the ones indicated in the additional-
reading list are good examples of recent developments and field applications of
historymatching.JPT
TECHNOLOGY
HISTORY MATCHING
AND FORECASTING
SPE 163652 Prior-Model Identification
With Sparsity-Promoting History
Matching by Mohammadreza M.
Khaninezhad, Texas A&M University, et al.
SPE 152805 Fast and Efficient
Assisted History Matching for Large-
Scale Applications by Torsten Friedel,
Schlumberger, et al.
SPE 159344 Integration of 4D-Seismic
Monitoring Results as History-Match
Indicators for Reservoir Simulation
by Amna Ali, Total, et al.
4HMFocusApril.indd 124 3/14/13 10:36 AM
125 JPT APRIL 2013
A
nonlinear orthogonal-matching
pursuit (NOMP) for sparse
calibration of reservoir models has
been proposed. Sparse calibration is
a challenging problem because the
unknowns are the nonzero components
of the solution and their associated
weights. NOMP is a greedy algorithm
that, at each iteration, discovers
components of the basis functions that
are most correlated with the residual.
The proposed algorithm relies on
approximate-gradient estimation by
use of an iterative-stochastic-ensemble
method (ISEM). ISEM uses an ensemble
of directional derivatives to approximate
gradients efficiently.
Introduction
Subsurface-flow models rely on many
parameters that cannot be measured
directly. Instead, a sparse set of mea-
surements may exist at well locations.
The complete distributions of these
unknown fields commonly are in-
ferred by a model-calibration process
that takes into account historical re-
cords of the input/output of the model.
However, the amount of data available
to constrain the models often is lim-
ited in quantity and quality. The re-
sult is an ill-posed inverse problem that
might allow many different solutions.
Parameter-estimation techniques that
can be applied to this problem can be
classified into Bayesian methods based
on Markov-chain Monte Carlo methods,
gradient-based-optimization methods,
and ensemble-Kalman-filtermethods.
An important step in the automatic-
calibration process is to define a prop-
er parameterization of these unknown
fields. Most of the parameterization
methods depend on a previous models
assumptions that define the spatial cor-
relations of the unknown fields implic-
itly with a parameter-covariance ma-
trix. Karhunen-Love expansion (KLE)
can be used for parameterizing spatial-
ly distributed fields. KLE, also known
as proper orthogonal decomposition
or principal-component analysis in the
finite-dimensional case, is widely used
for parameterizing the permeability
field in subsurface-flow models. KLE is
an effective method that is simple to
implement; however, it preserves only
the second-order moments of the dis-
tribution. For complex continuous geo-
logical structures such as a channelized
domain, KLE fails to preserve higher-
order moments.
Sparse calibration and compressed
sensing are active research areas in the
signal-processing community. Standard
reconstruction methods rely on defin-
ing a set of basis functions that are or-
thogonal, as in KLE methods, and then
an attempt is made to find the optimal
set of weights to reconstruct the mea-
surements. This reconstruction problem
is an ill-posed problem, and regular-
ization techniques (i.e., Tikhonov regu-
larization) that constrain the
2
norm
of the solution are applied commonly.
The quality of the solution depends on
the class of basis functions used to pa-
rameterize the search space. In sparse-
calibration methods, a large collection of
basis functions is included in a diction-
ary, and the solution process consists of
picking the best basis functions for accu-
rate reconstruction of the unknown field
and finding the associated weights.
The authors used sparse- dictionary-
learning-based parameterization. Given
a set of realizations of the unknown field
(e.g., permeability field), the dictionary-
learning problem was formulated as an
optimization problem to find the best
basis functions such that each realiza-
tion could be represented as a linear
combination of only a few basis func-
tions. These dictionaries were overcom-
plete and had a certain amount of re-
dundancy. This redundancy is desirable
because it provides a robust representa-
tion. Building the optimal dictionary that
approximates a signal with a minimum
error is a nondeterministic polynomial-
time hard problem, and approximate al-
gorithms can be used. The authors used
the K-SVD algorithm for parameterizing
the unknown subsurfacefields.
Once the dictionary is defined, the
sparse calibration can proceed in two
different directions. The first direction
is to solve an optimization problem that
penalizes the solution in the
1
norm and
minimizes the reconstruction error. The
second class of algorithms is greedy algo-
rithms, which iteratively find and remove
elements from the dictionary that are
maximally correlated with the residuals.
This study used an iteratively- reweighted-
least-squares (IRLS) algorithm to iden-
tify the important dictionary elements
(solution support) and their associated
weights by minimizing a sparsely regu-
larized objective function and then used
an adjoint code to estimate sensitivities
for solving the nonlinear- parameter-
estimation problem.
Sparse History Matching: Nonlinear-
Orthogonal-Matching-Pursuit Algorithm
of paper SPE 163582, An Ensemble-Based Nonlinear-Orthogonal-Matching-Pursuit
Algorithm for Sparse History Matching of Reservoir Models, by Ahmed H. Fsheikh,
University of Texas at Austin, King Abdullah University of Science and Technology;
Mary F. Wheeler, SPE, University of Texas at Austin; and Ibrahim Hoteit, King
Abdullah University of Science and Technology, prepared for the 2013 SPE Reservoir
Simulation Symposium, The Woodlands, Texas, 1820 February. The paper has not
been peer reviewed.
HM163582.indd 125 3/14/13 12:11 PM
126 JPT APRIL 2013
The authors developed an ensemble-
based method for solving the sparse-
calibration problem given a diction-
ary built by use of the K-SVD algorithm.
Ensemble-based methods have proved
to be an effective tool for subsurface-
model calibration. The proposed al-
gorithm enables the use of sparse-
calibration techniques for computer
models when adjoint codes are not avail-
able. For the sparse- calibration prob-
lem, a new algorithm based on the
orthogonal- matching-pursuit (OMP) al-
gorithm was proposed. The proposed al-
gorithm is of the class of greedy algo-
rithms for sparse recovery and extends
the standard OMP algorithm (limited to
linear reconstruction problems) to non-
linear parameter- estimationproblems.
Parameter-Estimation
Algorithm
Calibration of subsurface-flow mod-
els given a dictionary of basis functions
for the unknown fields is a nonlinear
parameter-estimation problem. Here,
an ensemble-based method is used for
parameter estimation. The proposed
parameter-estimation method relies on
the Gauss-Newton method and stochas-
tic estimation of the derivatives by use of
an ensemble of directional derivatives.
ISEM. Directional derivatives are used
in a stochastic ensemble method for pa-
rameter estimation. The authors use an
ensemble of perturbations to approxi-
mate the standard derivative (gradient)
from an ensemble of directional deriv-
atives. Eq. 15 in the complete paper is
the main update equation of the pro-
posed ISEM. This update equation was
used in the nonlinear OMP algorithm for
thisstudy.
Linear Sparse Reconstruction
The calibration process is converted into
a sequence of linear problems formulat-
ed by Eq. 15 in the complete paper. How-
ever, distributed parameter fields (e.g.,
permeability or porosity) commonly are
parameterized to obtain efficient cali-
bration methods. The authors used a pa-
rameterization that builds a large dic-
tionary of basis functions. These large
dictionaries have the advantage of deal-
ing with non-Gaussian models and a mix
of models. The sparse-reconstruction
problem is applicable for linear prob-
lems and is applicable for nonlinear
parameter- estimation problems at the
linearized iteration level as formulated
by Eq. 15 in the complete paper.
OMP Algorithm. OMP is an iterative
greedy algorithm. The algorithm is an
extension of basis-pursuit algorithms.
The OMP algorithm has been applied
to sparse-signal recovery in many
studies. The OMP algorithm pseudo-
code is detailed in Algorithm 1 in the
completepaper.
Dictionary Learning. Learning, or
building, a dictionary aims to provide
a pool of basis functions in which a
few basis functions can be combined
linearly to approximate a novel signal
or field.
Sparse-Nonlinear-Parameter-Estima-
tion Algorithm. The authors present
NOMP for sparse calibration of non-
linear models. To solve this problem, a
natural extension of the OMP algorithm,
NOMP, was used as a greedy algorithm
for nonlinear problems by storing the
HM163582.indd 126 3/25/13 8:01 AM
discovered solution support between the
subsequent nonlinear iterations. This is
consistent with the logic of the OMP as
a greedy algorithm. Once an atom of the
dictionary is included in the support,
it then is carried over all subsequent
update iterations. The pseudocode of
NOMP for sparse calibration combined
with the ISEM is described in Algorithm
2 in the complete paper. Note two major
changes of NOMP from the standard
OMP algorithm. First, the solution sup-
port is carried between the nonlinear it-
erations. Second, once the solution sup-
port is identified,
2
regularization is
used for calculating the residuals but the
solution space is limited to the identified
support. The
2
regularization is needed
because the estimated sensitivity matrix
is rank deficient and may contain sam-
pling errors.
Problem Formulation
A two-phase immiscible flow in a het-
erogeneous porous subsurface region is
considered. To simplify this example,
gravity and capillary effects were ne-
glected. However, the proposed model-
calibration algorithm is independent of
the selected physical mechanisms. The
two phases were water and oil. This
subsurface-flow problem is described
by the mass-conservation equation and
Darcys law. The pore space was assumed
to be filled with fluid, and thus the sum
of the fluid saturations should add up
to unity. Therefore, only the water-
saturation equations need to be solved.
K-SVD Parameterization. The ref-
erence permeability fields for the test
problem represent channelized mod-
els. Different realizations of channelized
models were generated from the training
image by use of geostatistical modeling
software. The training image was from
a similar published example. A total of
1,000 realizations were generated and
used as input to the K-SVD algorithm to
produce a sparse parameterization of
the search space. Twelve basis functions
were selected randomly from a diction-
ary of 500 basis functions built with the
K-SVD algorithm with target sparsity of
20 elements.
In numerical testing, the dis-
cretized model used a 2D regular grid of
5050 blocks in the x- and y-directions,
with each gridblock being 10 m. The
z-direction had unit thickness. The po-
rosity was assumed to be constant in all
gridblocks (0.2). The water viscosity was
set to 0.3cp, and the oil viscosity was set
to 3cp. The irreducible water saturation
and irreducible oil saturation were set at
0.2, and the simulations were run until
1 pore volume was injected. Two injec-
tion/production patterns were used for
the test problem. Fig. 1 shows the injec-
tion wells as black dots and the produc-
tion wells as white dots. The first pattern
has one injection well and four produc-
tion wells arranged in the inverted-five-
spot pattern, as shown in Fig. 1a. Pattern
2, shown in Fig. 1b, had nine produc-
tion wells distributed around four in-
jection wells. For parameter estimation,
the production curves at the production
wells were used to define the misfit func-
tion and guide the inverse-problem solu-
tion. Each water-cut curve was sampled
at 50 points, and these samples were
used for calculating the errors and the
update equation. The observation data
(water-cut values) were perturbed with
uncorrelated white noise with a small
standard deviation of 10
6
to enable per-
HM163582.indd 127 3/25/13 8:01 AM
128 JPT APRIL 2013
forming a convergence study for differ-
ent ensemble sizes.
Waterflooding Test Case. For compari-
son purposes, all runs were initialized
using a uninformed prior of a uniform
permeability k field with log (k)=0. For
injection/production Pattern 1, the op-
timized permeability fields shown in
Fig. 2 resulted from different ensem-
ble sizes of 5, 10, and 20 members. The
smallest ensemble, 5 members, man-
aged to reproduce the locations of the
two channels running along the model.
However, this is not expected from
every run of the algorithm because of
the approximate nature of the estimat-
ed derivatives. Also, the problem is ill
posed and may admit different solu-
tions. Fig. 3 shows the corresponding
weights of the basis functions selected
from the dictionary for ensembles of 5,
10, and 20 members. For an ensemble of
5 members, the inferred support has 73
nonzero bases, as shown in Fig. 3a. The
initial root-mean-square error (RMSE)
for the initial permeability field of log
(k)=0 is 0.0691. The number of nonlin-
ear iterations is set to 40, 20, and 10 for
the ensemble size of 5, 10, and 20, re-
spectively. This corresponds to the same
number of 200 forward runs. It was ob-
served that smaller ensembles produced
solutions with larger support because of
the increased number of nonlinear it-
erations. This was reflected in the final
RMSE that is smaller for smaller en-
sembles compared with larger ensem-
bles after 200 forward runs. The opti-
mized permeability fields for injection

1
0.5
0
0.5
1

1
0.5
0
0.5
1

1
0.5
0
0.5
1
(a) (b) (c)
Fig. 2Calibrated log-permeability field for different ensemble sizes for the waterflooding test case under injection/
production Pattern 1. (a) n=5, (b)n=10, and (c) n=20.
Fig. 1Injection/production patterns (injector as black dots and producer as
white dots), (a) Pattern 1 and (b) Pattern 2.

1
0.5
0
0.5
1

1
0.5
0
0.5
1
(a) (b)
0 100 200 300 400 500
5
4
3
2
1
0
1
2
3
4
5
Basis Index
W
e
i
g
h
t
0 100 200 300 400 500
5
4
3
2
1
0
1
2
3
Basis Index
W
e
i
g
h
t
0 100 200 300 400 500
1.5
1
0.5
0
0.5
1
Basis Index
W
e
i
g
h
t
(a) (b) (c)
Fig. 3Stem graphs of the weights of the calibrated permeability fields for the waterflooding test case under injection/
HM163582.indd 128 3/14/13 12:11 PM
130 JPT APRIL 2013
0 100 200 300 400 500
6
4
2
0
2
4
6
Basis Index
W
e
i
g
h
t
0 100 200 300 400 500
4
3
2
1
0
1
2
3
4
5
Basis Index
W
e
i
g
h
t
0 100 200 300 400 500
3
2
1
0
1
2
3
Basis Index
W
e
i
g
h
t
(a) (b) (c)
0 50 100 150 200
10
1.3
10
1.2
Number of Forward Runs
E
r
r
o
r

i
n

W
a
t
e
r

F
r
a
c
t
i
o
n
a
l
-
F
l
o
w

C
u
r
v
e
,

R
M
S
E

Ensemble size = 5
Ensemble size = 10
Ensemble size = 20
0 50 100 150 200
10
1.5
10
1.4
10
1.3
10
1.2
Number of Forward Runs
E
r
r
o
r

i
n

W
a
t
e
r

F
r
a
c
t
i
o
n
a
l
-
F
l
o
w

C
u
r
v
e
,

R
M
S
E

Ensemble size = 5
Ensemble size = 10
Ensemble size = 20
(a) (b)
Fig. 5Stem graphs of the weights of the calibrated permeability fields for the waterflooding test case under injection/
Fig. 6Average RMSE in water-cut curve vs. the total number of forward runs for different ensemble sizes with different
injection/production patterns, (a)injection/production Pattern 1 and (b) injection/production Pattern 2.

1
0.5
0
0.5
1

1
0.5
0
0.5
1

1
0.5
0
0.5
1
(a) (b) (c)
Fig. 4Calibrated log-permeability field for different ensemble sizes for the waterflooding test case under injection/
HM163582.indd 130 3/14/13 12:11 PM
131 JPT APRIL 2013
Pattern 2 are shown in Fig. 4 for en-
sembles of 5, 10, and 20 members. The
stem graph of the discovered weights is
shown in Fig.5. The initial RMSE for the
initial permeability field of log (k)=0
was 0.0729. The number of nonlinear
iterations was set to 40, 20, and 10 for
the ensemble size of 5, 10, and 20, re-
spectively. Again, it was observed that
smaller ensembles were more effective
in matching the data because the num-
ber of nonlinear iterations was larger
for the same number of forward runs.
Convergence Study. A complete conver-
gence study was performed for the test
cases. The stochastic nature of the es-
timated gradients resulted in different
solution paths for each run. The average
of 50 runs showed the ensemble-size ef-
fect on the error-reduction rates. Fig. 6
shows the average RMSE in water cut vs.
the total number of forward runs under
injection/production Pattern 1 (left) and
Pattern 2 (right). Smaller ensembles
were more effective for sparse calibra-
tion in terms of error reduction and sup-
port detection for the same number of
forward runs. On average, smaller en-
sembles outperformed larger ensembles
in all the numerical test cases because
of the increased number of nonlinear
iterations for the same number of for-
ward runs. At each nonlinear iteration,
the support was updated and the major
search directions were detected. Thus,
applying more nonlinear iterations had
a positive effect on the error reduction.
Conclusions
The solution of the nonlinear-sparse-
calibration problem is challenging. The
algorithm must find the optimal weights
to reproduce the measured values, and
it must select the basis functions that
are included in the solution support. A
complete combinatorial exploration by
running standard parameter- estimation
algorithms on a subset of the basis func-
tions led to a huge combinatorial prob-
lem that was impossible to solve. In the
linear setting, different algorithms for
sparse reconstruction can be used. These
algorithms can be classified simply as
forward-stagewise-selection algorithms
(such as the OMP algorithm) and as
optimization-based algorithms (such as
the IRLS algorithm).
The calibrated models using the
NOMP algorithm did not show ex-
treme values in the inferred permeabil-
ity fields. This was attributed to apply-
ing
2
regularization at each iteration
once the solution support was discov-
ered. The
2
regularization has the ad-
vantage of penalizing large weights that
produce realizations with extreme per-
meability values. This was evident from
the stem plots showing the weights of
the different dictionary atoms. This is
a clear advantage of NOMP over dif-
ferent sparse-reconstruction algo-
rithms that penalize only the
1
-norm
of the solution. Another advantage of
the proposed algorithm is in the effi-
cient use of an ensemble-based approx-
imate derivative using ISEM. The pro-
posed algorithm combining ISEM and
NOMP facilitates sparse calibration for
numerical- simulation packages when
the adjoint code is notavailable. JPT
HM163582.indd 131 3/25/13 8:02 AM
132 JPT APRIL 2013
T
he authors used historical
field data from a deepwater
turbidite reservoir to investigate
several history-matching strategies.
This project involved an integrated
seismic-to-simulation study. The
trade-offs between exploring many
models vs. calibrating a single model
were explored. The scale at which
the geologic model was constructed
and how the simulation scale could
be determined were examined. The
large discrete steps in the process
and the smaller local assisted
parameter calibration were studied.
The results provided general guidance
on workflowsequence, model
selection, and the scales of static
anddynamicmodeling.
Introduction
History matching is a process wherein
changes are made to one or more pa-
rameters of the initial geologic mod-
els so that the predicted reservoir per-
formance matches production history.
The history match calibrates reservoir
descriptions that then may be used for
performance prediction and reservoir-
management decisions. The initial geo-
logic model represents the reservoir
structure, its stratigraphy, layering, sed-
imentology, and facies distribution. The
static model consists of a 3D spatial dis-
tribution of porosity and permeabili-
ty derived from the geologic model. An
initial distribution of water, oil, and gas
is added to the static model to enable
flow simulation. Historical data from
the well, injection, and a subset of pro-
duction provide boundary conditions
for reservoir-simulation performance
prediction, and the remaining produc-
tion and pressure data are used to test
thosepredictions.
The intent of this study was to em-
phasize the importance of multiple ini-
tial geologic models and to demonstrate
an uncertainty-assessment strategy on
the basis of multiple geologic interpre-
tations. The uncertainty assessment is a
precursor to a full-history-match study.
It may be thought of as a means of gen-
erating multiple starting points for his-
tory-match-model calibration, or, per-
haps more importantly, may be used to
obtain an improved reservoir descrip-
tion even without full implementation of
a historymatch.
An SPE reprint collection (Datta-
Gupta, Akhil, ed. 2009. History Match-
ing and Conditioning Geologic Models
to Production Data. Richardson, Texas:
Reprint Series, SPE.) provides an excel-
lent starting point to understand cur-
rent, developing, and historical prac-
tice. This paper describes the history
match within an integrated seismic-to-
simulation research study, including the
interpretation of seismic data, assembly
of geologic information, petrophysical
log evaluation, and well-test pressure-
transient interpretation. The results of
this integrated geoscience study were
used as the starting point for the history
match. Field data for the study were pro-
vided by a major producer for research
and educational purposes. However, this
study was performed without their di-
rect intervention.
Methodology
The interpreted seismic data were used
to build horizons and faults for the struc-
tural model of the field, which then was
used to construct a 3D gridded geologic
model. The uncertainty study began with
a diagrammatic approach in which the
major subsurface uncertainties were dis-
played visually. This approach assisted
in creating a sufficiently broad range of
starting models. It also provided rapid
documentation in post-project reviews
in that uncertainties that did not appear
in the visual display were not consid-
ered within the study. The second stage
of the uncertainty study was based on the
calculation of an objective function that
measures the mismatch between histori-
cal and predicted values for each model.
It was found that this combination of
qualitative and quantitative analysis pro-
vided excellent insight into the reservoir
description, even before starting a full
history match.
The first stage of the history match
was performed by subdividing the field
into regions, which could correspond to
geologic units, facies types, or other areal
divisions. Regional properties, typically
porosity and permeability, could be mod-
ified independently. Initially, a screening
study was performed, from which the
authors obtained an importance ranking
for each parameter. The highest- ranking
subset of parameters then was used to
minimize the objective-function mis-
match with an evolutionary strategy.
These techniques can provide one
or more sets of parameters, which are
optimal in the sense that they minimize
a misfit function. However, in terms of
providing reservoir characterization,
the spatial resolution of the parameter
changes is limited by the initial region
Combined Uncertainty and History-Matching
Study of a Deepwater Turbidite Reservoir
of paper SPE 160171, Combined Uncertainty and History-Matching Study of a
Deepwater Turbidite Reservoir, by Akshay Aggarwal*, SPE, Song Du, SPE, and
Michael J. King, SPE, Texas A&M University, prepared for the 2012 SPE Annual
Technical Conference and Exhibition, San Antonio, Texas, 810 October. The paper
has not been peer reviewed.
*Now with Schlumberger.
HM160171.indd 132 3/14/13 12:10 PM
133 JPT APRIL 2013
definitions. At best, these parameters, or
their changes, must be thought of as av-
erages over each region. Attempting to
redefine regions or including additional
degrees of freedom for increased spatial
resolution of regions is an active area of
research. In later stages of the history
match, the authors increased the number
of regions, guided by the performance of
the history match.
In contrast, streamline-based ana-
lysis techniques do not rely on pre-
defined region definitions, instead they
use bundles of streamlines for dynamic-
region definitions. This concept may be
extended further by using streamlines
to calculate spatial-sensitivity informa-
tion, which describes how a change in
the permeability of any cell in the model
contributes to a change of water cut at
each well. This sensitivity information
may be combined with the mismatch in
water-cut progression at each well to de-
termine changes in permeability within
the reservoir model. To ensure unique-
ness in these cell-by-cell changes, the
inversion is regularized by constrain-
ing it to have minimum changes from
the previous geologic model together
with a smoothness constraint. These
techniques are related to the formal in-
version techniques used in geophysical
travel-time inversion. As a reservoir-
characterization tool, changes are made
to the previous model, driven by spatial-
data support of the well. No previously
defined regions are required. However,
these techniques are based on convec-
tive processes and work best to modify
transport properties (i.e., permeability)
once a water cut matures. In contrast,
variation of region properties may be
used to modify porosity and permeabil-
ity (e.g., volumes and transport).
The overall methodology is summa-
rized in Fig. 1 and is detailed in the com-
plete paper. Each element of this work-
flow is available commercially or has been
demonstrated in other researchpapers.
Field Description
The studied reservoir is a deepwater
channelized turbidite reservoir in the
Gulf of Mexico, producing oil from Mid-
dle Miocene sands. The field has a com-
bination of structural and stratigraphic
traps. It is bounded on the northeast by
a west/east fault that dips northward, it
has a stratigraphic pinchout on the east-
ern and northeastern flanks, and it has a
salt dome on the western edge. The oil/
water contact is at 14,300 ft. The res-
ervoir consists of sand, silt, and shale
laminations. Well-log and core data in-
dicate that reservoir facies can be divid-
ed into two main subcategories: clean
channel-fill sands and low- quality over-
bank deposits. The low-quality over-
bank deposits can be subdivided further
into proximal-levee and distal-levee fa-
cies, which have increasing shale con-
tent. Fig.2 shows the seismic root-mean-
squared (RMS) amplitude map. The
bright regions correspond to hydrocar-
bon presence, which is linked to high
net-/gross-pay ratio. Although the ampli-
tude will dim, channel sands are expect-
ed to continue into the aquifer.
The field is in 5,000-ft water depth.
It is developed with nine dry-tree wells, of
which seven are M-Sand producers and
two are M-Sand injectors. The M-Sand is
subdivided into three intervals (M1, M2,
and M3), with most of the production
Fig. 1Overall uncertainty and history-matching methodology.
EAs=evolutionary algorithms.
Fig. 2Seismic RMS amplitude map draped on top of the structure.
Done?
Improve Region Definitions
or Other Global Changes
No
Yes
Performance Prediction
Based on Calibrated Subset
of Geologic Models
Create Initial Set of
Geologic Models
Uncertainty Study: Screen Models To
Obtain a Subset for History Matching
Define Regions and Parameter Ranges
Tornado Study for Parameters
Use EAs To Obtain Optimal Parameter
Values (Pressure History Match)
Use Streamline-Based Inversion To
Obtain Improved Permeability
(Water-Cut History Match)
RMS Amplitude
2244
1895
1547
1198
850
HM160171.indd 133 3/15/13 11:01 AM
134 JPT APRIL 2013
coming from the M2 sand. Field produc-
tion began in November 2002, and water
injection began in September2003.
There is no evidence of compart-
mentalization, except for Well A9, the
easternmost well in the field. A mass-
balance drive-mechanism analysis
was performed with pressure and pro-
duction data. It showed that the sin-
gle largest source of reservoir energy
is aquifer influx, followed by water in-
jection and a combination of rock and
fluidcompressibility.
Additional information on water
influx was obtained from a 4D-seismic
survey taken after several years of pro-
duction, which showed regions with
increased water saturation. This in-
formation was not used in the history-
match procedures, although it did con-
tribute to the geologic interpretation of
multiplechannels.
Uncertainty Study
Fig. 3 shows input for the uncertainty
study. Each element was designed to be
independent of the others, so that the
four major elements combine their fea-
tures to provide 4222=32 models.
Fig. 3 also indicates geologic uncertain-
ties that were excluded from the study.
For instance, variations in the overall
reservoir structure were not considered.
It was described as a simple structure on
which any internal faulting acted only
to provide potential baffles, not to com-
partmentalize the reservoir. Fig. 3 also
summarizes the dynamic sensitivities
included in the history match. When
screening geologic models, each dynam-
ic parameter was maintained at its base-
case value.
The large-scale reservoir architec-
ture is consistent with a channelized res-
ervoir with north/south-trending chan-
nels. The channels control the quantity of
sand and reservoir quality, with a poten-
tial order-of-magnitude reduction in net
permeability in the off-channel portions
of the reservoir. Within each channel, the
more-heterogeneous trends in porosity
and permeability consistently performed
better, even with the fairly coarse five-
layer models used in the screening study.
The creation of multiple and distinct geo-
logic models enabled inferring many geo-
logic features directly from the produc-
tion data.
History Match
The base-case dynamic sensitivities
were used in the uncertainty study.
Each history-match case consisted of
four stages: identification of one of
the three geologic scenarios, a sensi-
tivity run to determine the most im-
portant parameters, a pressure history
match providing calibrated values for
average properties for spatial regions,
and a water-cut history match based on
streamlinesensitivities.
Overall, the assisted-history-match
(AHM) techniques provided a success-
ful history match. The ability to create
new cases, identify key parameters, and
then adjust those parameters is a pow-
erful capability that allows many more
cases to be explored than would be pos-
sible without the assisted techniques.
However, current technology appears to
be limited by the requirement to spec-
ify spatial regions for the pressure his-
tory match. This limitation can be com-
pensated for, to some extent, by the
streamline-based water-cut matching
techniques, but these are designed to
make changes in reservoir permeability,
not volumes. Limitations in the spatial
resolution of the changes in pore volume
continue to limit the water-cut matches,
especially in the case of this channelized
turbidite reservoir. Also, the sequen-
tial use of multiple AHM algorithms can
be improved, which was clear for many
of the cases studied when the aquifer
strength needed to be recalibrated after
the water-cut match to better honor
the late-time pressure response in
the field.
Fig. 3Geologic scenarios and dynamic sensitivities included in the uncertainty study. NTG=net-/gross-pay ratio.
Reservoir Uncertainty Study: Geologic Scenarios and Dynamic Sensitivities
Channel Architecture
Areal NTG Trends
Intrachannel Heterogeneity
Porosity Aspect Ratio
Dynamic Sensitivities
Vertical Resolution
Permeability Heterogeneity
Deterministic or Stochastic
Channel Architecture
Permeability Trend
No Trend
East/West
Trend
Geologic Trend
(No Seismic)
Seismic Trend
No
Reduction
Reduction
Off Channel
Stochastic
Cloud
Transform
Deterministic
4000:4000
1500:10000
800:10000
NTG@22 layers
NTG@5 layers
Fault Transmissibility
Sealed / Partial / Open
Rock Compressibility
Aquifer Strength
Size
Permeability Multiplier
By Facies
Pore Volume Multiplier
By Reservoir Interval
By Facies
K
v
/K
h
Ratio
0.1 to 10
6
Relative Permeability
Segregated Flow
HM160171.indd 134 3/14/13 12:10 PM
135 JPT APRIL 2013
There was interesting interplay
between the history-matching perfor-
mance and vertical resolution. Very-
low- resolution models could be used
for numerical efficiency early in a his-
tory match, but they were not adequate
to represent the interplay between het-
erogeneity, gravity, and sweep as a flood
front progresses. Also, a match for later
stages of a waterflood was required.
There was an interesting interplay be-
tween the effective relative permeabil-
ity curve and the degree of fluid segre-
gation, which is not understood fully.
Finally, the example of simulation-layer
design indicated that it may be effective
to retain log resolution within the geo-
logic model and then scale up to both a
reasonably coarse and a reasonably ac-
curate simulation model, removing the
approximations that were made with
geologic models at intermediate verti-
cal resolution.
Conclusions
The use of multiple simple
geologic models is extremely
useful in screening possible
geologic scenarios and especially
for discarding unreasonable
alternative models. This was
especially true when developing
an understanding of the
large-scale architecture of the
reservoir.
The AHM methodology
was effective in exploring a
large number of parameters,
running the simulation cases,
and generating the calibrated
reservoir models. The
calibration step consistently
worked better when the
models had more spatial detail
compared with the more-
homogeneous models used for
the initial screening.
Implementation of the AHM
methodology followed a
sequence of pressure and
water-cut history matching.
An examination of specific
models indicated that cases that
minimized conflict between
these two match criteria also
provided a better geologic
description. JPT
HM160171.indd 135 3/25/13 8:02 AM
136 JPT APRIL 2013
I
n preparation for the SPE Applied
Technology Workshop on Use
of4D-Seismic and Production
Data forHistory Matching and
OptimizationApplication to
Norne (Norway), 1416June 2011, a
test-case study (Norne E-segment),
based on field dataof an offshore
Norway brownfield, was organized to
evaluateand compare mathematical
methods for history matching and
strategies for optimal production
or enhanced oilrecovery (EOR).
The integrated-data set provided
an opportunity todiscuss emerging
and classical history-matching and
optimization methods after being
tested with real field data.
Introduction
The Center of Integrated Operation in
the petroleum industry at the Norwe-
gian University of Science and Technol-
ogy (NTNU), in conjunction with SPE,
organized an SPE Applied Technology
Workshop on the use of real data from
the Norne field. The workshop attracted
80 delegates and international speak-
ers from more than 10 countries. This
workshop addressed a comparative case
study that used real field data that in-
cluded time-lapse-seismic data.
The purpose of reservoir manage-
ment is to control operations to maxi-
mize short- and long-term production.
The process consists of life-cycle op-
timization based on reservoir-model
uncertainties and model updating by
production measurements, time-lapse-
seismic data, and other available data.
Time-lapse-seismic data help deter-
mine reservoir changes that occur with
time and can be used as a new dimen-
sion in history matching because they
contain information about fluid move-
ment and pressure changes between and
beyondwells.
The well-production schedule and
history for the period from December
1997 through December 2004 were pro-
vided as observation data for the history
match. A previous full-field calibration
was performed by the operator to match
the history up to 2003. The reservoir at-
tributes calibrated in the previous histo-
ry match included fault-transmissibility
multipliers, regional relative permea-
bility parameters, and large-scale (ab-
solute) permeability and porosity het-
erogeneity using regional and constant
multipliers. These attributes defined a
global history match for a single (struc-
tural) reservoir description. The exer-
cise was to improve the match and then
perform a recoveryoptimization.
Five groups participated in this ex-
ercise, of which four presented their re-
sults during the workshop. The number
of participants was limited because the
Norne database has a license limitation
regarding commercial companies. The
participants in this comparative study
were expected to produce a history-
matched model, preferably using an in-
tegration of production and time-lapse-
seismic data, and to produce an optimal
production strategy for the remaining
recoverableresources.
Norne Field
The Norne field is in Blocks 6608/10
and 6508/10 on a horst block in the
southern part of the Nordland II area
in the Norwegian Sea. The rocks within
the Norne reservoir are Late Triassic to
Middle Jurassic. The current geological
model has five reservoir zonesGarn,
Not, Ile, Tofte, and Tilje. Oil is found
mainly in the Ile and Tofte formations,
and gas is found in the Garn formation.
The sandstones are at a depth of 2500 to
2700 m. The porosity ranges from 25 to
30%, and permeability varies from 20
to 2,500 md. The data consist of near-,
middle-, and far-stack 3D-seismic data
acquired in 2001, 2003, and 2004.
The first package included the E-
segment of the Norne field, with sub-
sequent benchmarks to include larger
parts of the field. Further, seismic data
were separated to suit the requirement
of coverage of only the E-segment. The
E-segment was chosen because it has
the highest-quality seismic data of the
entire field. The E-segment of the Norne
field had 8,733 active grids and five wells
as of the end of 2004 (i.e., two injectors
and three producers).
Description of the Exercise
The exercise was defined 6 months be-
fore the workshop. This benchmark case
covered 1997 to 2004 for history match-
ing and 2005 to 2008 for recovery op-
timization. The 2004 simulation model
containing all information and proper-
ties was provided. Production and injec-
tion data from 1997 to the end of 2004
and 4D-seismic data for the same peri-
od were provided. These data were the
basis for the history match performed
by participants. The defined workflow
was asfollows.
First Norne Field Case on History
Matching and Recovery Optimization
of paper SPE 157112, Results of the First Norne Field Case on History Matching
and Recovery Optimization Using Production and 4D-Seismic Data, by Richard
Rwechungura, SPE, NTNU; Eric Bhark, SPE, Texas A&M University; Ola T. Miljeteig,
SPE, NTNU; Amit Suman, SPE, and Drosos Kourounis, Stanford University; Bjarne
Foss, SPE, NTNU; Lars Hoier, Statoil; and Jon Kleppe, SPE, NTNU, prepared for
the 2012 SPE Annual Technical Conference and Exhibition, San Antonio, Texas,
810October. The paper has not been peer reviewed.
HM157112.indd 136 3/14/13 12:14 PM
138 JPT APRIL 2013
Download the existing Norne
model and import it into the
participants reservoir simulator.
Participants history match the
model until the end of 2004
and predict the production (oil,
water, and gas) performance
until the end of 2008.
From the obtained history-
match results, participants
create an optimal production
strategy for the remaining
recoverable resources for the
stated period. Participants
could also suggest techniques
to enhance recovery because
a significant amount of the
recoverable reserves had
been produced by the end of
October2008.
The format for the production
strategy should contain time,
bottomhole pressure (BHP), or
flow rates for the wells.
Constraints
For each injection well, the
maximum flowing BHP (FBHP)
=450 bar.
For each producing well, the
minimum FBHP=150 bar.
For each injection well,
the maximum water
rate=12000std m
3
/d.
For each producing well,
the maximum liquid
rate=6000std m
3
/d.
Maximum water cut=95%.
A maximum of two wells can
be sidetracked to increase
recovery.
Economic parameters
Oil price=USD 75/bbl.
Discount rate=10% at the
reference time of January
2005.
Cost of water handling and
injection=USD 6/bbl.
Cost of gas injection=
USD 1.2/Mscf.
Cost of a new sidetracked well
=USD 65 million.
Participants could assume their
own parameters related to EOR
methods (e.g., surfactants,
polymers, and low-salinity
waterflooding).
Discuss and compare results of
the achieved recovery factor.
General Methods
Four groups presented their results in
the Applied Technology Workshop in
June 2011 in Trondheim, Norway. A sum-
mary of the methods applied for his-
tory matching and recovery optimiza-
tion by each group is shown in Table 1.
To perform history matching, Stanford
University started with dimensionality
reduction of the reservoir parameters
by use of principal-component analysis
(PCA) and then applied particle-swarm
optimization for history matching. For
the subsequent optimization, they used
a derivative-free methodthe Hooke-
Jeeves direct search (HJDS).
The group from Texas A&M Uni-
versity first engaged in multiscale repa-
rameterization of the permeability field
by use of the grid-connectivity-based
transform (GCT) and then calibrated
the reduced permeability to produc-
tion data using a quasi-Newton method.
Thereafter, they applied a streamline-
based method to integrate the 4D-
seismic data. Last, the Texas A&M group
increased recovery and optimized the
production forecast by draining the oil
pockets through sidetracking, and then
by applying a streamline-based meth-
od to equalize the arrival time of fluid-
phase fronts at all producers.
The group from NTNU applied
manual history-matching techniques
that included qualitative use of time-
lapse-seismic data. They then optimized
TABLE 1SUMMARY OF METHODS

University History-Match Methods
Optimization/EOR
Strategies
Stanford University Dimensionality reduction
using PCA
Particle-swarm
optimization
Derivative-free
optimizationHJDS
Texas A&M University
Multiscale
reparameterization of
permeability field using
GCT
Gradient-based
integration of production
dataquasi-Newton
method
Streamline-based
integration of 4D-
seismic data
Oil-pocket drainage
through sidetracking
Streamline-based
arrival time of fluid-
phase fronts at
producers
Acceleration strategy
Sequential quadratic
programming
NTNU
Manual history-match
approach and qualitative
use of 4D-seismic
dataoil/water-contact
match from production
to seismic data
Oil-pocket drainage
through different well
targets and new wells
Low-salinity
waterflooding
Delft University of
Technology
Ensemble Kalman filter Not available

TABLE 2RESULTS SUMMARY FROM EACH GROUP: NORNE FIRST CASE
University
Incremental NPV,
USD millions Recovery Factor, %
Stanford University 435 50.70
Texas A&M University 344 49.24
NTNU 303 52.20
Base Case 48.80
(Continued on page 141)
HM157112.indd 138 3/14/13 12:14 PM
PEOPLE
140 JPT APRIL 2013
GENE GARBER, SPE, was named chief
integration officer at Greenes Energy
Group (GEG). Based in Lafayette, Louisi-
ana, Garber, who maintains his position at
GEG as senior vice president, will now also
be responsible for the development and
integration of operational programs, strat-
egies, and associated projects. He has more than 30 years
drilling, production, construction, and pipeline technical ser-
vices experience, both onshore and offshore internationally.
Garber is also a member of the American Petroleum Institute,
American Association of Drilling Engineers, International
Association of Drilling Contractors, and Association of Energy
Service Companies.
JAMES HAIL, SPE, was named chief exec-
utive officer at DeGolyer and McNaughton
(D&M). He will continue to serve as the
companys president. Hail joined D&M in
1977 and has worked on projects in Austra-
lia, Italy, Mexico, the North Sea, Russia,
South America, and southeast Asia. Hail
worked for Exxon Company USA for 5 years before joining
D&M. He became a vice president at D&M in 1980, senior vice
president in 1995, executive vice president in 1998, and presi-
dent in 2008. Hail graduated with honors from Texas A&M
University in 1972 with a bachelors degree in chemical engi-
neering. He is a registered professional engineer in Texas, and
also is a member of the Society of Petroleum Evaluation Engi-
neers and the American Association of Petroleum Geologists.
MIKE MACHOWSKI, SPE, was appointed
chief operating officer of TAM Internation-
als international operations. In his previ-
ous position as TAMs vice president and
director of Canadian operations, he estab-
lished, managed, and expanded the regions
sales and operation efforts. Machowski has
more than 37 years experience in the industry. He earned a
bachelors degree in business administration from Louisiana
State University. Machowski is also a member of the Canadian
Association of Drilling Engineers and the Petroleum Services
Association of Canada.
MIKE MELLEN, SPE, was promoted to vice
president of IONs GX Technology business
unit within the companys GeoScience divi-
sion. He joined ION in 2012 as vice presi-
dent, integrated geoscience, for IONs
GeoVentures division. From 1997 to 2011,
Mellen held various positions at Hallibur-
ton and Landmark, most recently as senior directorHallibur-
ton technology. Previously he led Landmarks technology unit
and was global director, geoscience and reservoir engineering
consulting, for Halliburton. He began his career at Marathon
Oil in 1981, where he served in a variety of technical roles,
including as geophysicist special projects and chief geophysi-
cist for Egypt, then Gabon. Mike earned a bachelor of science
degree from the University of California and a master of sci-
ence degree from the Massachusetts Institute of Technology
both in geophysics.
GARY NORTH, SPE, was promoted to vice
president of worldwide sales at MicroSeis-
mic. In this role, he is responsible for the
development and implementation of
MicroSeismics worldwide sales strategy.
North joined MicroSeismic in 2011. His
32-year career includes experience leading
sales and marketing, mergers and acquisitions, operations,
and risk management, as well as specialties ranging from oil
and gas to staffing and recruiting, electrical utility, and safety
and risk management. Most recently, he was sales director in
charge of MicroSeismics southern and central US sales. Prior
to MicroSeismic, he was vice president of sales for Zonar Sys-
tems. North earned a bachelor of administration degree with
a minor in chemistry from the University of Cincinnati. He is
also an active member of the Society of Exploration Geophysi-
cists and Rotary International.
SIMON RICHARDS, SPE, joined Hill Inter-
nationals construction claims and consult-
ing group as technical director, specializ-
ing in the upstream oil and gas industry.
His background in process engineering
and his detailed understanding of oil and
gas field development have been gained
through 27 years experience in operating, consulting, and
contracting organizations. Richards earned an honors BS
degree in chemical engineering from Birmingham University.
He serves on SPEs Production, Facilities, and Construction
Advisory Committee and is chairman of the SPE Projects,
Facilities, and Construction Technical Interest Group. He is
also a past executive editor of SPEs Projects, Facilities, & Con-
struction journal. Richards is also a member of the Institute of
Chemical Engineers and is a chartered engineer in the UK.
Member Deaths
Robert S. Ashworth, Houston, Texas, USA
Bert O. Brown, Blum, Texas, USA
Peter M. Dranchuk, Edmonton, Alberta, Canada
Uruj A. Kirmani, Rockville, Maryland, USA
Leroy M. Williams, Houston, Texas, USA
PeopleApril.indd 140 3/18/13 6:46 AM

141 JPT APRIL 2013
LAURA SCHWINN, SPE, was appointed
president, oil and gas field services, of Clean
Harbors, Inc. With experience rooted in the
Calgary oil and gas industry, she expanded
her career in various roles around the world.
Schwinn has almost 2 decades experience
as an industry leader, having held a variety
of senior positions at Halliburton, most recently as vice presi-
dent, drill bits and services. Before Halliburton, she served in a
business development role at Schlumberger. Schwinn earned a
bachelor of commerce degree from University of Victoria in
British Columbia, Canada.
FRANCISCO SUAREZ, SPE, was appoint-
ed vice president of the Western Hemi-
sphere at TAM International, overseeing
Latin America and Canada. He has more
than 29 years industry experience, predom-
inantly in international markets. In his pre-
vious role at TAM as director of Latin Amer-
ica, Suarez established the companys presence in Mexicos mar-
ket and also moved the Latin American headquarters to Bogot,
Colombia. Suarez earned a bachelors degree in petroleum engi-
neering from Universidad Industrial de Santander in Colombia
and an MBA from the University of Phoenix. He is also a mem-
ber of the Colombian Association of PetroleumEngineers.
use of communication packages that can
handle more data and do so over increas-
ing distances (Furlow 2000).
The seemingly independent tech-
nologies of control devices, power trans-
mission, and communications have been
brought together to provide integrat-
ed systems that can lead to more eco-
nomic extraction of hydrocarbons in a
safe manner. We will continue to seek to
achieve more with less. JPT
References
Docherty, M. 2001. Intelligent Completions:
Potential, but Some Hurdles. Drilling
Contractor March/April 2001: 4041.
http://www.drillingcontractor.org/
dcpi/2001/dc-marapr01/m-expro.pdf
Furlow, W. 2000. Intelligent Well Systems
Expand in US Gulf, but Who Controls
System Communications? Offshore
Magazine May 2000. http://www.
offshore-mag.com/articles/print/
volume-60/issue-5/news/general-
interest/intelligent-well-systems-expand-
in-us-gulf-but-who-controls-system-
communications.html.
INNOVATION
(Continued from page 14)
FIRST NORNE FIELD CASE . . .
(Continued from page 138)
production by oil-pocket drainage
through the addition of new wells and
low- salinity waterflooding. Method
details for each group are explained in
Appendix A of the complete paper.
Results
There was no winner or loser in this
comparison study; no one knows the
answer exactly. The outcome and expe-
rience were more useful. The group that
attained the highest recovery factor also
attained the lowest net- present-value
(NPV) increase because their meth-
ods to increase recovery included the
more-costly use of new wells. Although
all of the groups used different strat-
egies and methods, the results differ
only slightly, which indicates that the
applied approaches may be realistic.
A summary of the results is shown in
Table 2. One main challenge in report-
ing the combined case-study results
was the different formats and nota-
tions used by the participants because
there was no specific guidance on how
to present the results defined before the
work began. The participants specif-
ic notes about the methods and results
are detailed in Appendix A of the com-
plete paper.
Conclusions
The workshop provided an opportu-
nity to address state-of-the-art tech-
nologies within the area of optimiza-
tion, focusing on production history and
4D- seismic data and on the interplay
between these diverse types of data.
The workshop enjoyed active discussion
and contributions throughout. This case
study served as the first benchmark for
the use of data from the E-segment of
the Norne field.
A single conclusion for the Norne
field characterization and optimal pro-
duction schedule was not achieved.
However, bringing the applied suite of
approaches together was valuable. The
use of seismic data in this case was
not as expected; more use of seismic
data, both qualitatively and quantita-
tively, will be required in future cases.
Because the case study was defined only
6 months before the workshop, most
participants considered the time pro-
vided as too short and, therefore, rec-
ommended that up to 1 year of study
time be used for future comparative
casestudies. JPT
PeopleApril.indd 141 3/15/13 9:18 AM
SPE NEWS
142 JPT APRIL 2013
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in good standing.
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SPENewsApril.indd 142 3/14/13 12:15 PM
SPE EVENTS
148 JPT APRIL 2013
WORKSHOPS
2930 April Abu DhabiIntegrated
Drilling Services to Increase Well
Construction Efficiency at Lower Cost
PerBarrel
13 May GalvestonSEG/SPE Seismic
While Drilling: Path to Hazard Avoidance?
67 May ManamaMaximising Asset
Value through Reshaping Reservoir
Management Practices
810 May RomeScale
1517 May Palos VerdesLiquids Rich
ShaleSo You Believe in Peak Oil?
2022 May DubaiData Supporting E&P
Decisions
2829 May DohaSPE Global Integrated
Workshop SeriesWell Integrity: Current
Challenges and Future Perspectives
2931 May MantaEOR: Technical and
Managerial Framework for Ensuring a
Successful Implementation
34 June Abu DhabiBuilding
Organisational Capabilities for the Future:
Challenges and Strategies
36 June St. PetersburgDigital Field
Management
46 June IstanbulEnergise Your
Future: Building Blocks for Future
Opportunities
1112 June CairoEOR: Plugging the Gap
between Production and Consumption
1113 June KeystoneHorizontal Well
Completions in North America Shales
1619 June LangkawiMarginal
Greenfield Development
2426 June IstanbulCoiled Tubing:
From Conventional to Advanced
Applications
2627 June TrondheimIntegrated 4D
Seismic and Production Data for Reservoir
ManagementApplication to Norne
(Norway)
1618 July Rancho Palos Verdes
Distributed Fiber-Optics Monitoring for
Well and Reservoir Management
2728 August San AntonioEagle
FordShale
45 September BogotaPetroleum
and Unconventional Resources Reserves:
Understanding the Economic, Technical,
Environmental, and Regulatory Aspects
1113 September Rancho Palos
VerdesHydraulic Fracture Mechanics
Considerations for Unconventional
Reservoirs
1617 September DohaMature Fields:
Leveraging Experience for Future Value
1618 September CairoMarginal Fields
and Small Discoveries: Unlocking the
Potential
2122 October DubaiPetroleum
Reserves and Resources Estimation and
its Impact on Business DecisionsPRMS
Applications Guidelines Document

CONFERENCES
1925 April MontereySPE/AAPG
Western Regional Meeting
69 May HoustonOffshore Technology
Conference
1416 May Kuwait CityOilfield Water
Management Conference and Exhibition
1922 May Al-Khobar2013 SPE-
SAS Annual Technical Symposium and
ExhibitionThe Upstream Innovation
Spark, Lighting Our Way to a Brighter
Tomorrow
2122 May CartagenaSPE Artificial Lift
ConferenceAmericas
57 June NoordwijkSPE European
Formation Damage Conference and
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1013 June London75th EAGE Annual
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SPE EUROPEC
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ConferenceCanada
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2627 June LimaSPE Latin American
and Caribbean Health, Safety, Social
Responsibility, and Environment
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24 July Kuala LumpurSPE Enhanced
Oil Recovery Conference
30 July1 August LagosSPE Nigeria
Annual International Conference and
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1214 August DenverUnconventional
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2022 August PittsburghSPE Eastern
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2627 August CalgaryProgressing
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24 September DohaMiddle East
Health, Safety, Environment, and
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36 September AberdeenSPE Offshore
Europe Oil and Gas Conference and
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1112 September MidlandSPE 2013
Liquids Rich Basins Conference:
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1618 September Abu DhabiSPE
Reservoir Characterisation and Simulation
Conference and Exhibition
30 September2 October New Orleans
SPE Annual Technical Conference
andExhibition
79 October DubaiSPE/IADC Middle
East Drilling Technology Conference
andExhibition
810 October Kuwait CitySPE Kuwait
Oil and Gas Show and Conference
1517 October MoscowSPE Arctic
and Extreme Environments Technical
Conference and Exhibition
2224 October JakartaAsia Pacific Oil
and Gas Conference and Exhibition
2830 October DubaiIntelligent Energy
International Conference and Exhibition
2931 October Rio de Janeiro
OTC Brasil

FORUMS
1924 May Siem Reap70% Recovery:
From Nano to Macro Scale
2730 May MuscatFuture Systems for
Extreme Environments
2126 July AshevilleThe Quest to
Reduce the Environmental Footprint
49 August Coeur dAlene2020
ForesightEnsuring Educational
Excellence for Upstream Engineering
Resources
1318 October VilamouraAdaptive Well
Construction for Complex Wells
2025 October Rancho MirageArtificial
Lift in Deepwater

CALL FOR PAPERS
SPE Kuwait Oil and Gas Show and
Conference Kuwait City, Kuwait
Deadline: 30 April
Latin America and Caribbean Petroleum
Engineering Conference
Maracaibo, Venezuela
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Offshore Technology Conference Asia
Kuala Lumpur, Malaysia
Deadline: 5 June
Find complete listings of upcoming SPE workshops, conferences, symposiums, and forums at www.spe.org.
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