Schlumberger Policy Document Well Surveying and Anti-Collision

Well Surveying and Anti-Collision

Policy

Version 3.00

Notice
This information is open to all, however it must not be reproduced without the prior written permission of
Schlumberger. Schlumberger makes no warranties; express, implied, or statutory, with respect to any products
or processes described herein, including without limitation, any warranties of merchantability or fitness for a
particular purpose.

Unpublished work © 2002 Schlumberger

All rights reserved under copyright law
All marks mentioned are trademarks or registered trademarks of their respective owners.
Schlumberger Policy Document Well Surveying and Anti-Collision

Document Information

Document Type Well Surveying and Anti-Collision Policy

Software Version Microsoft Word 2000 for Windows 2000

Source File Policy - 3.00 29-Mar-02.doc

Author Chris Chia

Author Information Drilling Planning and Surveying Product Champion
Sugarland Product Center
150 Gillingham Lane MD 150-2,
Sugar Land,
Texas 77478, USA
Tel: (281) 285 7350
email cchia@sugar-land.oilfield.slb.com

Version History 29-Mar-02 First Version Released to Field V-3.00

Review and approval John McCullagh Manager – Surveying & Telemetry

Schlumberger Policy Document Well Surveying and Anti-Collision

Table of Contents

1 A PPLICATION .....................................................................................................................................................................1
2 GENERAL DEFINITIONS .....................................................................................................................................................1
2.1 The Well Surveying and Anti-Collision Standard .....................................................................................................1
2.2 Survey Management.......................................................................................................................................................1
2.3 Drilling Engineering Centers (DEC’s)...........................................................................................................................1
3 RESPONSIBILITIES...............................................................................................................................................................2
3.1 Well Design......................................................................................................................................................................2
3.2 Well Design Approval....................................................................................................................................................2
3.3 Well Design Audit and Control....................................................................................................................................2
3.4 Execution ..........................................................................................................................................................................2
3.5 Global Policy ....................................................................................................................................................................3
3.6 Peer Review......................................................................................................................................................................3
4 SURVEY DATABASE M ANAGEMENT ...............................................................................................................................3
4.1 General..............................................................................................................................................................................3
4.2 Definitive Survey Database...........................................................................................................................................3
4.3 Legacy Data – Accuracy and Completeness..............................................................................................................3
4.4 Subcontractor Surveys...................................................................................................................................................4
5 GEOMETRIC TRAJECTORY PLANNING ............................................................................................................................4
5.1 Classification of Well Types .........................................................................................................................................4
5.2 Tool Error Models and Ellipsoid of Uncertainty (EOU) ...........................................................................................4
5.3 Separation Factor............................................................................................................................................................5
5.4 Standard Anti-Collision..................................................................................................................................................5
5.5 Risk Based Anti-Collision..............................................................................................................................................6
5.6 Survey Program...............................................................................................................................................................7
5.7 Well Design File and Well Design Approval..............................................................................................................8
5.8 Changes to Well Design ................................................................................................................................................9
5.9 Exemption .........................................................................................................................................................................9
6 SURVEY QUALITY ..............................................................................................................................................................9
6.1 General..............................................................................................................................................................................9
6.2 Survey Quality Control...................................................................................................................................................9
6.3 Regulatory Requirements.............................................................................................................................................10
6.4 Reference Data...............................................................................................................................................................10
6.5 Survey Corrections .......................................................................................................................................................11
6.6 Conformance Audit.......................................................................................................................................................11

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Schlumberger Policy Document Well Surveying and Anti-Collision

1 Application
The Schlumberger Drilling and Measurements Well Surveying and Anti-Collision Policy shall apply globally
to all aspects of Survey Management including survey data and database management, geometric well
trajectory planning and survey quality assurance. It will be strictly followed except in the case where an
established client policy with a higher safety threshold exists and is implemented, or where a written
exemption is granted by the appropriate authority (see para 5.9 on exemptions).

2 General Definitions

2.1 The Well Surveying and Anti-Collision Standard

The Well Surveying and Anti-Collision Policy (this document) is a high level explanation of the survey related
requirements to be fulfilled in the directional well design and execution process. It is open to all. It in turn is
supported by more detailed procedures and guidelines that are internal to Schlumberger. The policy,
procedures and guidelines together form the Schlumberger Well Surveying and Anti-Collision Standard.

2.2 Survey Management

Survey Management is the generic term used to describe all the elements of well surveying related to well
design, including survey data and database management, geometric well trajectory planning and survey
quality assurance. The first two elements, database management and trajectory planning, are the primary
responsibility of the Schlumberger Drilling Engineering Centers (DECs). The third element, survey quality
assurance, is the responsibility of the DECs, the Schlumberger Drilling & Measurements (D&M) field
organization and any third party surveying vendor if applicable.

2.3 Drilling Engineering Centers (DEC’s)

All drilling engineering and well design activities within Drilling and Measurements (D&M), including that of
Survey Management are performed in Drilling Engineering Centers, referred to as “DECs”. These Centers
are located strategically in many different locations around the world. Drilling Engineering Centers at the
local level are referred to as level 1 or level 2 DECs depending on the services offered, while Drilling
Engineering Centers at Area (regional) level are referred to as level 3 DECs.

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3 Responsibilities

3.1 Well Design

The local Drilling Engineering Center (DEC) Manager has responsibility for all well design activity, including
Survey Management, which is conducted within his/her jurisdiction and as such is the primary sign-off
authority to certify that all well designs comply with this policy. Other DEC personnel, including Survey
Specialists and suitably qualified and experienced Drilling Engineers may also be designated as local sign-
off authorities.

3.2 Well Design Approval

Note that while it is the responsibility of the DEC to sign off on the technical integrity of any well design, the
ultimate accountability lies with line management and so the final D&M signature on any well plan will be
that of the Location Manager, Directional Drilling Coordinator, Field Service Manager or Operations Manager
depending on the local organizational structure. In order to ensure the proper level of review, it is therefore
mandatory that every final well design delivered to the client is signed by (a) the originator, (b) the DEC sign
off authority, (c) the D&M line manager and (d) the client.

3.3 Well Design Audit and Control

The Area (regional) level 3 DEC Managers have responsibility for the audit and control of the subordinate
DECs in their Area, including competency assurance, the regulation of sign-off privileges, the performance of
audits and the review of petitions for the granting of exemptions.

3.4 Execution
The responsibility for the quality of the survey data recorded at the wellsite is that of the measurement while
drilling (MWD) Engineer or the Surveyor. The responsibility for accurate well trajectory determination from
these measurements as the well is being drilled and for drilling the well as designed, is that of the
Directional Driller. The Directional Driller is also responsible for strict compliance with the anti-collision
monitoring plan where relevant. If during execution, the well trajectory deviates from plan and anti-collision
monitoring indicates a violation or an incipient violation of the standard anti-collision rules, then the
Directional Driller must exercise his/her authority and stop the drilling process until a review of the situation
is made, corrective action taken and an exemption obtained as necessary. At the end of the well, the
responsibility for the timely transfer of directional data recorded on the rig and the merging of this data into
the definitive master database in town is the joint responsibility of the Directional Driller and the DEC.

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3.5 Global Policy

The formulation and updating of global policy on surveying and anti-collision (this document) and the
monitoring of compliance, is the responsibility of the Drilling and Measurements headquarters management
team.

3.6 Peer Review

A Peer Review is defined as the full technical review of all information and material pertinent to any operation
covered by this policy, as required in order to enable amendments to existing policy or procedures. The
peer review team shall consist of HQ and area level survey specialists, field technical managers and other
subject matter experts as appropriate. Peer reviews will be held as necessary, with the stipulation that
there will be a minimum of one review per year. The responsibility for calling a peer review will be with the
Drilling and Measurements headquarters management team.

4 Survey Database Management

4.1 General
Survey Database Management is the management of all survey data including legacy data related to a
particular field or fields. Sufficient data shall be retained in a usable format such that the positions,
references and datum for all wells being used for anti-collision scanning and planning purposes can be
positively verified. The upkeep of the definitive survey database may be the responsibility of Schlumberger
Drilling and Measurements, the Operator, or a third party contractor, depending on local circumstances and
existing contractual arrangements. The identity of the party responsible for the upkeep of the survey
database must be clearly understood at the start of any new contract.

4.2 Definitive Survey Database

The Definitive Survey Database is the collection of survey and supporting data in both hard and soft copy,
which represents the most accurate and current description of the positions of all well paths in any operating
area. It includes survey tool descriptions, references, datums and such information as si required to
unambiguously define all well trajectories. The definitive surveys must be clearly marked as such in all
survey databases to distinguish them from other surveys.

4.3 Legacy Data – Accuracy and Completeness

Legacy well survey data is data acquired in the past using older technology surveying instruments and
techniques as compared to what is currently available. In addition, several different contractors may have
recorded this data and its accuracy may be suspect or unknown. In any case where legacy data is

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introduced into the definitive database, and where it’s quality is suspect, it must be assigned the least
accurate “unknown” error model until such time as its status is confirmed, or the well is resurveyed.
Verifying the accuracy and completeness of any survey database before performing an anti-collision scan is
absolutely crucial and it will be the responsibility of the DEC to take all reasonable steps and precautions to
ensure that this is achieved. This is particularly important when using a database for the first time, such as
may be the case when inheriting data from another contractor or starting to provide survey database services
to an Operator who formerly did it in-house. All reasonable precautions includes, but is not limited to,
checking that the number of well paths used for the anti-collision scan is at least equal to the number of
used slots on an offshore platform or land pad and cross checking with government databases and those of
previous survey contractors, previous partners or previous well owners, if any. The completeness and
correctness of imported legacy data must be reviewed, verified and approved in writing by the client before
any subsequent wells are planned in the operating area.

4.4 Subcontractor Surveys

The impact of subcontractor surveys can be critical to the success of Schlumberger’s provision of directional
services. The local DEC is responsible for ensuring that all subcontractor surveys conducted in any well
design being executed, whether contracted directly by Schlumberger or not, conform to the requirements of
this policy. At the wellsite during execution, the Schlumberger Directional Driller shall determine whether
subcontractor surveys, eg. single shots run for specific purposes such as the nudging of kick offs are of
sufficient quality for the purpose at hand.

5 Geometric Trajectory Planning

5.1 Classification of Well Types

All wells considered under this policy will be classified as either “single wells” or “nearby wells”. Any well
whose classification is not immediately clear, will be treated as a nearby well. Any well, which after a global
scan of the definitive database, can be shown to have no other wellhead within 24,000 meters of it’s own
surface location, may be treated as a single well. All others will be classified as nearby wells and will be
treated as such under the standard anti-collision policy. Any abandoned well, whose position, pressure
profile and completion status is known with sufficient accuracy may be subjected to the exemption process
under this policy, at the discretion of the Area DEC authority.

5.2 Tool Error Models and Ellipsoid of Uncertainty (EOU)

The ellipsoid of uncertainty (EOU) is a volume used to indicate the magnitude of the well bore position
uncertainty at a particular depth. Calculation of the ellipsoid of uncertainty (quoted at a 95% confidence

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level corresponding to 2.79 sigma) involves the use of survey tool error models in the well planning software.
These error models are in a constant state of evolution to take into account new surveying technologies,
improved knowledge of sensor performance and attempts across the industry at standardization. The
default tool error model used by Schlumberger Drilling and Measurements is the Schlumberger – Industry
Steering Committee for Wellbore Survey Accuracy (SLB-ISCWSA) model. Alternatively, the older and more
widely used Schlumberger Topographic error model, which yields slightly more conservative results, may
also be used. In some circumstances, an Operator may specify an error model that is not normally
available in the Schlumberger well planning software. This is acceptable provided it is possible to cross
check and verify that it has a safety threshold at least equivalent to that of the Schlumberger default error
model. It is the responsibility of the DEC Manager to ensure that the appropriate tool error model is used for
every survey station in the database.

5.3 Separation Factor

Separation Factor is defined in this policy as the center to center distance between two nearby wells divided
by the sum of the radii (major semi-axis) of their associated ellipsoids of uncertainty. Note that care needs
to be taken when comparing “separation factors” quoted from different sources, as the above definition,
although commonly used, can not be considered a universal industry standard. Oriented Separation Factor
is a concept developed by Schlumberger for advanced anti-collision analysis, whereby a particular value of
Oriented Separation Factor actually refers to a specific probability of collision, which is not the case for the
simplistic Separation Factor defined above. The use of Oriented Separation Factor avoids the over
conservatism sometimes associated with traditional Separation Factor and in some special circumstances,
may allow the planning of a well trajectory which otherwise would be considered impossible. More details
on the use of Oriented Separation Factors may be found in the procedures for Standard Anti-Collision
associated with this policy.

5.4 Standard Anti-Collision

Every well design shall be the subject of an anti-collision scan in accordance with this policy. This anti-
collision scan shall be evidenced as being complete in the Well Design File, and shall be rigorously
checked during the well design approval process. An anti-collision scan is a proximity analysis of all nearby
wells that takes into account their respective positional uncertainty as a result of survey errors. This
analysis is performed using standard Schlumberger Drilling Office well planning software designed for this
purpose that contains details of the positions of all wells, along with their associated uncertainties, in the
form of a definitive survey database. Where the results of the anti-collision scan indicate a violation of the
standard anti-collision rules enforced by this policy (see 5.4.1 below), the well trajectory must be redesigned
and another scan performed. In the exceptional case where no other design option is available, an Area
authority may grant a risk-based exemption depending on the specific circumstances. The local DEC sign-

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off authority is responsible for confirming the integrity of the anti-collision scan. The location and
identification of the definitive survey database used for the anti collision scan, shall be indicated in the Well
Design File.

5.4.1 Standard Anti-Collision Rules

For all normal drilling operations, the Schlumberger Drilling and Measurements policy for the drill ahead
condition is that a minimum Separation Factor of 1.5 shall be maintained. If the separation factor is less
than 1.5, but greater than 1.0, then a “close approach” situation exists, for which a risk based exemption is
required. With the exception of a sidetrack or a relief well, no well trajectory will be deliberately designed
which has a separation factor of less than 1.0 and if this situation does inadvertently occur during execution,
then drilling operations must stop immediately and the situation reviewed. In addition, for surface hole
drilling from multi well platforms or from land pads with closely spaced wells where the risk of collision is
substantially increased, a further requirement is that a minimum separation of not less than 80% of the
allowable deviation from plan (ADP) at the well reference point be maintained. In all other circumstances, a
minimum separation of 10 meters must be maintained. The Allowable Deviation from Plan (ADP) is defined
as the “drilling tunnel” which is created as a result of maintaining a Separation Factor of at least 1.5 with the
nearest well. Adhering to these rules at shallow depths in surface holes requires that particular attention be
paid to survey frequency and magnetic interference (see para’s 6.2.1 and 6.2.2 for more details).

5.4.2 Minor and Major Risk Wells

A minor risk well is defined as a well that violates the minor risk separation factor threshold set at 1.5 but
still maintains a separation factor greater than 1.0. A major risk well is defined as any well that violates the
major risk separation factor threshold set at 1.0, ie. where the ellipsoids of uncertainty overlap after
allowance has been made for hole radii. It can also be any minor risk well that cannot satisfy the case for
risk based anti-collision exemption and is therefore reclassified as major risk for the purposes of directional
well design.

5.5 Risk Based Anti-Collision

The purpose of the risk based anti-collision policy is to define a set of criteria and metrics that will enable
Schlumberger to describe what the increased probabilistic risk of collision is for the specific directional well
design in question when the standard anti-collision policy cannot be satisfied. For example, where it is
desirable or deemed necessary to approach another nearby well at close proximity, minor risk wells may in
some circumstances be subject to a risk based anti-collision exemption. Any application for a risk based
anti-collision exemption for a minor risk well must demonstrate a negligible risk to personnel or environment
in the event of an unplanned collision. The purpose of the risk based anti-collision policy is to specifically

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deal with exceptional or challenging circumstances that cannot be satisfactorily dealt with by standard
practice. Schlumberger will always recommend to the Operator any additional precautions that can be
taken, such as sufficient resurveying of nearby wells ahead of time, to ensure that the standard anti-collision
policy can be satisfied during the directional well design process if at all possible.

5.5.1 Indemnification

As a function of approval of the directional well design and the risk assessment process, and as a
requirement to complete the risk based anti-collision exemption policy, Schlumberger Drilling and
Measurements must be indemnified by the operator in writing against all risks related to possible damage to
any nearby well, surface or subsurface pollution or environmental incident including blow out.

5.5.2 Exemption Requirements for Risk Based Anti-Collision

All applications for the use of the risk based anti-collision rules are subject to case specific exemption
agreed by the Area level 3 DEC Manager and approved by the D&M Business Manager. Sufficient and
adequate contingency planning shall be a function of the preparation of the case for exemption. This shall
include but not be limited to specific additional procedures for close approach drilling, such as special
briefing of the rig crew, the shutting in of nearby wells, the independent monitoring and calculation of well
trajectory in town as the well is being drilled and the installation of listening devices on nearby wells as
necessary.

5.6 Survey Program

The survey program is the planned series of survey instruments to be used, and surveying requirements to
be met, during the execution of the well design in order to satisfy this policy. It will normally be presented in
the well design file as a listing or table indicating as a minimum: survey depths for each survey tool to be
used, required survey frequency, whether run in cased hole, open hole or drill pipe, any special corrections
or contingencies and also the tool error code to be used for that survey. The survey program is designed to
achieve target sizing, well position uncertainty for relief well purposes and anti-collision, in the most cost
effective manner possible consistent with safe practice.

5.6.1 Drilling Target Size

In addition to the identification of well proximity issues, one of the major purposes of the survey program is
to calculate the drilling target size. The drilling target is established by the reduction of the geological target
as defined by the Operator, by an amount representing the survey errors, such that provided the survey
program is followed and the drilling target is penetrated, then the geological target must indeed also have
been reached and the well objectives based on position achieved.

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5.6.2 Close Approach

The survey program includes a methodology used to ensure that all well proximity problems are identified,
by scanning each of the survey program elements (called PARTS) sequentially. When a close approach
situation exists, the problem may be alleviated by revising the survey program, resurveying other nearby
wells, or by redefining the trajectory of the planned well. If none of these options are possible, then it will be
necessary to obtain an exemption and invoke a risk based anti-collision procedure (see para 5.5).

5.6.3 Survey Redundancy

For all well designs being executed, it is highly desirable that no one individual survey instrument should be
used to define the definitive well trajectory in any single hole section without its performance having been
independently confirmed by another survey instrument. In the case of a magnetic survey tool this may be
done by comparison with overlapping data from any other survey tool of equal or greater accuracy or
alternatively, by the application of an approved multi-station analysis technique. In the case of a gyroscopic
survey tool this may be done by comparison with either confirmatory magnetic survey data, or sufficient
overlapping data from another gyroscopic survey tool.

5.6.4 Survey Contingency Planning

Although it is recognized that not all possibilities can be planned for in advance, every effort will be made to
perform reasonable contingency planning so as to maximize the operational effectiveness of the survey
program. For instance, what surveying contingencies need to be invoked if, based on previous history of
drilling in the area, memory tools such as drop gyro’s prove to be unreliable.

5.7 Well Design File and Well Design Approval

A Well Design File is the mandatory documented proof that this policy has been observed and executed
correctly. It may consist of written information from the client, hardcopy output from a well design software
package, information about nearby wells, and any other relevant information. As a minimum it will contain:
(a) a written signed well program from the operator specifying surface location and bottom hole target with
tolerances, (b) the location of the definitive survey database used for the anti-collision scan (c) the survey
program broken into it’s constituent PARTS and (d) results of anti-collision scans conducted using the
appropriate PARTS along with the required plots signed off by the local DEC sign-off authority, the D&M Line
Manager in charge and by the Operator. This sign-off forms the Well Design Approval and is the certification
that the well design is acceptable under this policy.

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5.8 Changes to Well Design

Once signed-off for execution, the well design may not be revised without the explicit written approval of the
DEC sign-off authority accompanying the details of the revision into the Well Design File. In addition, before
execution, the revised plan must also be signed by the D&M Line Manager in charge and by the Operator.
Note that deviations of the well trajectory from plan within the pre defined ADP (allowable devi ation from plan)
are permissible at the wellsite, as this may be required and even encouraged in order to permit improved
drilling efficiency and optimum reservoir penetration whilst geo-steering. In such circumstances, the
determination of the ADP is part of the original well design process.

5.9 Exemption
The exemption process is the formal means by which Schlumberger is able to control and monitor the
execution of new, unusual, novel or technically challenging well design and execution problems. An
exemption is a written approval prepared by an area level 3 DEC authority and signed by the D&M Business
Manager in order to proceed with some variation to a policy or procedure upon presentation of sufficient
written evidence by a petitioner. Repeated requests for a specific exemption will result in its adoption as an
additional procedure, or will result in it being denied if the practice is found to be technically weak. The
petitioner will usually be a local level 1 or 2 DEC sign-off authority who will prepare a written statement on
the exemption case. Upon review the Area management may grant a single specific case exemption, a field
specific exemption, or may submit the request for peer review.

6 Survey Quality

6.1 General
Every well shall be surveyed in accordance with this policy. Each survey carried out shall independently
satisfy the service provider or operator specific quality control requirements for that survey before being
considered for inclusion into the final well trajectory calculation.

6.2 Survey Quality Control

For magnetic surveys, quality control includes ensuring that surveys meet the field acceptance criteria for
total field strength |B|, total gravity |G| and Dip Angle. Values for these, expressed as allowable deviations
from the current BGGM geomagnetic model are: total |G| = +/- 2.5mg, total |B| = +/- 300nT and Dip = +/-
0.45deg. For gyro surveys quality control includes ensuring contractor specific terms for drift, repeatability,
earth rate and mass balance offset etc. are met. In any case the MWD Engineer or the Surveyor shall
check at the wellsite that comparisons between survey tool runs provide confirmation of well position. If this
is not the case, then further investigation must be made and appropriate actions taken to rectify the

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situation. If this confirmation still cannot be achieved, then the survey program is invalid and the first
response must be to re-survey the interval using a backup survey tool. The DEC shall be responsible for an
investigation into any instance of reduced quality surveys and shall assess their impact upon the survey
program, invoking any contingency that may be required to maintain the integrity of the survey program.
Any survey suspected of having reduced quality, must be reported to the DEC in good time so as to allow
for the effective application of this policy.

6.2.1 Survey Frequency

In order to avoid collisions in surface hole when drilling from multi-well platforms or land pads and to optimize
well position, special attention must be paid to any survey frequency requirements specified in the survey
program. The actual survey frequency depends on the individual capability of the BHA being run (ie. how
aggressively it can build angle) and the accuracy of the survey tool in use, however as a general rule, for
surface holes drilled in high well density areas, gyro single shots should be run at least every joint (every 10
meters).

6.2.2 Magnetic Interference

Careful attention must be paid to the magnetic signature of all BHA components and calculation of the
requisite number of non-magnetic drill collars must be performed in advance to ensure that the survey
acceptance criteria values of total field strength |B| and Dip Angle can be met for normal operations. The
responsibility for making this calculation is with the DEC during the BHA planning stage and with the MWD
Engineer and Directional Driller during execution. The small residual amounts of magnetic interference
present due to the effect of the drill string further up the hole may be corrected for using magnetic
interference correction algorithms as necessary. Magnetic interference due to nearby wells is a particular
problem in surface holes and can be the source of significant errors. In such circumstances, it is mandatory
that gyro surveys be run until all MWD survey acceptance criteria settle down to within their normal range
and gyro and MWD measurements agree. Depending on the geographical location and other factors this
may require the nearest casing or conductor to be at a distance of 50 meters or more in extreme cases.

6.3 Regulatory Requirements

All government regulations relating to well spacing and well safety, in the jurisdiction where the activities are
planned to take place, will be strictly adhered to at all times.

6.4 Reference Data

At the wellsite, it is the responsibility of the MWD Engineer or Surveyor to cross check and obtain a sign-off
from the Company man and Directional Driller on grid correction, magnetic declination, well location and all

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relevant reference data on the standard form. Strict adherence to this procedure is mandatory in order to
avoid gross errors.

6.5 Survey Corrections

At the DEC level, the survey specialist shall be responsible for the application of any survey correction as
required to conform to this policy. This may include the calculation and approval of the use of any SAG
corrections, the use of in-hole referencing, any magnetic interference correction algorithm or geomagnetic
referencing in both the planning and in the real time execution phases of the well design. Up to date and
accurate positional information shall be made available at the wellsite at all times.

6.6 Conformance Audit

Conformance audits will be conducted regularly on the DEC’s, by appropriately qualified auditors. They will
be scheduled and in some cases, conducted by the Area level DEC managers, in order to ensure
compliance with this policy. Schlumberger Drilling and Measurements HQ staff may also conduct audits
from time to time.

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