IFE Rig Evaluation

Day 2
Rig Evaluation

Organizing For the Rig Evaluation Report

Project Key Issues (areas of uncertainty)

Rig Features (or lack of) = Benefits / Detriments

Recommendations = Solutions to Detriments

Value = Project Cost Reduction

Rig Evaluation
Key Issues
(Areas of Uncertainty or Concern)

Existing Rig Features Required Rig Features

And Condition And Recommendations

From The Audit *Value

*Cost of unresolved issue less cost of resolution
Rig Evaluation

Key Issues

Customer Project Rig

Philosophy Specifics Resources
People People
Equipment
Structure Scope
Rig Evaluation

Value
Key Issues represent potential cost
overruns that can only be estimated
Recommendation of a feature (solution)
to address an issue must result in value
Cost of Issue – Cost of solution = Value
Rig Evaluation

Value (savings- estimated cost reduction)

Reduced time on location
Reduced waste volumes
Reduced site preparation
Reduced fluids cost
Reduced lost time accidents
Regulatory compliance (environmental)
Rig Evaluation

Think $,$$$ - Savings and/or Value

Define cost of the problem

Define cost of the recommendation

Calculate the savings and/or value

Rig Evaluation

Key Issues
Project Related

Fluid Related

Health Safety & Environmental

Rig Evaluation

Project Related Issues

Total project cost
Reduced rig time
Eliminate unscheduled events
Circulate & condition, stuck pipe, etc.
Increased productivity
Rig Evaluation

Fluids Related Issues

Drilling/Completion Fluids
Solids Control System
Waste Management
Collection, Containment, etc.
Rig Evaluation

Health, Safety & Environmental

Compliance Management
Eliminate “lost time accidents”
Rig Evaluation

Key Issues = Rig Evaluation Criteria

Without key issue determination

there is no basis for evaluation
Rig Evaluation

Key Issues Document

Uses a weighted rating system to
compare competitive strengths of the
rig
Prepared in table format
Rig Evaluation

Key Issues Document

For each Key Issue
1. Assign weight (1-10) based on importance
2. Assign rating (0-100%) to rigs ability
3. Multiply each weight by rig’s rating
4. Sum the Key Issue weights and compare
to the sum of calculated rig ratings
Rig Evaluation

Key Issues Document Simplified

List Key Issues

Estimate cost of each issue unresolved…$$$$

Estimate cost of resolving each issue….$$$$

Calculate the Value…..$$$$S Project Savings

Rig Evaluation

Key issues Document

Key Issue Weight x Rig Rating = Score

0 – 10 0 – 100%
Solids Control 10 25% 2.5
Waste Mgt. 8 0% 0
Mud Mixing 6 100% 6
Total Score 24 ------ 8.5
Rig Evaluation

SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Rig Evaluation

SWOT Analysis

Strengths – Rig features that match Key Issue

requirements and needs
Solids Control System?
Mud Mixing System, etc.?.
Rig Evaluation

SWOT Analysis

W = Weakness

Rig lacks features required to address key

issue needs or requirements
Rig Evaluation

SWOT Analysis

O = Opportunity

Rig strengths that provide an opportunity to

perform beyond expectations
Rig Evaluation

SWOT Analysis

Threats

Rig weaknesses that could endanger

successful project completion
Rig Evaluation

SWOT - Prioritize & Protect

C-M-E-D Formula
Capitalize > Strengths
Mitigate > Weaknesses
Exploit > Opportunities
Defend > Threates
Rig Evaluation

SWOT Analysis – Capitalizing on Strengths

Take advantage of rig strength

Match rig Strengths to Customer/Project

Key Issues
Needs
Requirements
Rig Evaluation

SWOT Analysis – Mitigating weakness

Mitigate/neutralize weaknesses the customer

is aware of … real or not

Provide the solution

Offer proof with documentation

Rig Evaluation

Exploiting Opportunity – win/win

MI/Customer

Synergy must exist between Opportunities

and solutions proposed

Synergy created results in win/win situation

for customer and MI
Rig Evaluation
SWOT – Defending against threats

Customer negatively impacted recent failure of

similar rig

Rig does not meet regulatory requirements

Rent or upgrade with MI/SWACO services

to defend against threats
Rig Evaluation

IFBP Matrix Analysis

Project Specific
Focuses on project Key Issues
Indicates relationship, Key Issue vs.
Features and
Benefits
Answers the question “So What?”
Offers proof of performance
Rig Evaluation

IFBP Matrix – Analysis

Prioritize key project issues

Key Issues = Evaluation Criteria
Cost
Performance
Service
Rig Evaluation

IFBP Matrix – Analysis

Identify required feature/service for each issue

Brainstorm benefits of each feature using the

question “So What?”

Each feature must offer at least 1 project

benefit
RIG EVALUATION - Report

Formal report detailing the Rigs Capability for

addressing the Projects Key Issues.

Should include recommendations for repair

and upgrade where capability is lacking.

Value of recommendations should be defined

in terms of anticipated Project Savings
RIG EVALUATION - Report

Format of the Report (5 Parts)

Cover Letter
Executive Summary
Main Body of the Report
Technical Data
Rig Audit – Notes – Other Data
Rig Evaluation – Report

COVER LETTER

EXECUTIVE SUMMARY

MAIN BODY OF REPORT

TECHNICAL DATA

RIG AUDIT / NOTES / FIELD DATA

Rig Evaluation - Report

Constructing the Rig Evaluation Report

Project Issues
Rig Features
Benefits/Detriments
Recommendations
Value
Rig Evaluation - Report
Building The Rig Evaluation Report

Organizing of Information In a Logical &

Consistent Format
Rig Evaluation - Report

Rig Audit Notes & Data

Excel spreadsheets from rig audit
Notes from conversations with others
concerning the rig audit
Notes from conversations with others
concerning project related issue impacted by
the rig
Photographs and references
Rig Evaluation - Report

DETAILS / NOTES / FIELD DATA

Rig Evaluation – Report

Technical Data
Methods and Calculations used to determine
the magnitude or cost of an issue

Product specifications and Vendor literature

concerning recommended equipment
benefits and operating procedures
Rig Evaluation - Report

Organization – Key Issues Development,

SWOT & IFBP Matrix Analysis

DETAIL [ORGANIZED]

DETAILS / NOTES / FIELD DATA

RIG EVALUATION - Report

Main Body of Report

Detailed discussion of issues,
recommendations, and value of the
recommendations
Issues = Anticipated Problems
Recommendation = Solution
Value = (Cost of Problem – Cost of Solution)
Rig Evaluation - Report

Main Body of The Report

DISCUSSION & RECOMMENDATION

DETAIL [ORGANIZED]

DETAILS / NOTES / FIELD DATA

RIG EVALUATION - Report
Executive Summary
Introduction - Scope of project, related issues
and rig requirements
Specific Findings – Rig deficiencies and
strengths vs. project issues
Summary – Discussion(brief) or table,
outlining issue,recommendation and value
Closing - total value of recommendations
Rig Evaluation - Report

EXECUTIVE SUMMARY

DISCUSSION & RECOMMENDATION

DETAIL [ORGANIZED]

DETAILS / NOTES / FIELD DATA

RIG EVALUATION - Report

Cover Letter
Maximum Length – ½ page
Express Appreciation
General Comments – deficiencies,corrections
required and value of correction
Conclusion
Should not contain any detail!
RIG EVALUATION - Report

COVER LETTER

EXECUTIVE SUMMARY

DISCUSSION / RECOMMENDATION

DETAIL [ORGANIZED]

DETAILS / NOTES / FIELD DATA

RIG EVALUATION - Report

COVER LETTER
BOTTOM UP

EXECUTIVE SUMMARY

DISCUSSION & RECOMMENDATION

DETAIL [ORGANIZED]

DETAILS / NOTES / FIELD DATA

RIG EVALUATION - Report

COVER LETTER

EXECUTIVE SUMMARY

TOP DOWN
DISCUSSION & RECOMMENDATION

DETAIL [ORGANIZED]

DETAILS / NOTES / FIELD DATA

RIG EVALUATION

Safety & The Rig Audit

Potential Safety Hazards - General

Confined Space Recognition

Energy Lockout / Tagout – Affected level

RIG EVALUATION
Potential Safety Hazards
Slips, Trips, Falls Hydrogen Sulfide Heat burns
Electrical Eye Injuries Chemical
Spills
High Pressure Respiratory Mud Spills
Noise Confined Space Lockout /
Tagout
Equipment Heat Injuries Fire Safety
Falling Objects Cold Injuries Medications

Over 80% of MI accidents/injuries originate in ignoring

an unsafe condition or taking a risky shortcut
RIG EVALUATION

Confined Space
Definition

Large enough to enter and work

Not designed for constant occupancy

Limited or restricted entry and exit

RIG EVALUATION

Confined Space
Categories

Open topped enclosures having depths

that restrict natural air movement

Enclosures with limited openings for entry

or exit
RIG EVALUATION

Confined Space
Non-permit Required

Does not contain or with respect

atmospheric hazards, have the potential
to contain any hazard capable of
causing death or serious physical harm
RIG EVALUATION

Confined Space
Permit Required
Permit required if:
Has potential to contain hazardous atmosphere
Contains material that has potential to engulf entrant
Has an internal configuration with potential for
entrapment.
Contains any other recognized safety hazard
RIG EVALUATION

Confined Space
Engulfment

Dry material – Clay, Barite, etc.

Liquid material – Mud, water, oil, etc.

RIG EVALUATION

Confined Space
Internal Configuration

Inwardly converging walls

Downward sloping floor
Pipes, beams, other obstructions to movement
Other recognized safety hazards
RIG EVALUATION

Confined Space
Atmospheric Conditions

Oxygen out of life support range (<19.5% or >23.5%)

Flammability
IDLH (immediately dangerous to life & health)
Toxicity…CO, H2S, Hydrocarbon gas, etc.
Other….Noise, etc.
RIG EVALUATION

Confined Space
Classes

Class A – environment is immediately

dangerous
Class B – potential to cause injury if no
preventative measures are taken
Class C – potential hazards which do not require
any special work procedure modification
RIG EVALUATION

Confined Space
Examples
List some examples – rigs in your area

Permitted -

Non-permitted -
RIG EVALUATION

Confined Space – Permit Required

Requirements for Your Entry
Training – Level III
Atmospheric Testing
Permits:
Your name as entrant Supervisors
name
Observers name Rescuers name
RIG EVALUATION

Lockout / Tagout
Purpose
Prevent release of energy while equipment is
shut down for repair
Unexpected startup
Unexpected release of energy
Completely isolate all energy sources to a zero
state
RIG EVALUATION
Lockout / Tagout
Various Energy states

Zero energy state – isolated (locked out)

Potential Energy
Energy of position – gravity or compressed
spring
Stored energy – air press..100psi or elect.
capacitor
RIG EVALUATION

Lockout / Tagout
Levels of employees affected

Authorized – this employee and his supervisor

only, are allowed to apply or remove
locks/tags
Affected – Work in area where lockout / tagout
takes place and must be informed of the
process
RIG EVALUATION

Lockout Tagout
Rig Examples

Lockout / tagout for rig evaluation

Solids Control Equipment
Fluid System
High Pressure Systems
Gas Separation Systems
RIG EVALUATION
Lockout / Tagout
Equipment Required

Locks colored for easy identification

Locks must be substantial to avoid defeat
Locks must have only one key available
Locks & keys may not be loaned
Hasp for group lockout must be substantial
RIG EVALUATION

Lockout / Tagout
Equipment Required
Tags must be legible
Tags must be made to withstand the enviroment
in which they are used
Tags must be securely attached to the energy
isolating devices affected
RIG EVALUATION
Lockout / Tagout
Start Procedure
Turn equipment off
Turn power off at source
Verify absence of power at equipment
Verify absence of power at remote switches
Apply locks and/or tags (name, date & reason
must be included on tags)
Rig Evaluation

Lockout / Tag out

Srart Procedure (continued)
Test all switches and controls restrained by locks to
verify isolation
Verify absence of voltage at equipment with volt
meter
End lockout /Tagout when work is complete
Rig Evaluation

Lockout / Tag out

Srart Procedure (continued)
Test all switches and controls restrained by locks to
verify isolation
Verify absence of voltage at equipment with volt
meter
End lockout /Tagout when work is complete
Rig Evaluation

Lockout / Tagout
Ending the procedure

Authorized employees remove their locks or tags

Return main power to the on position
Verify normal start up of affected equipment
Document the end of the Lockout / Tagout and start
up of equipment
Rig Evaluation

Lockout / Tagout

Check out the rigs Lockout / Tagout Policy

Who is responsible
Who are authorized personnel
Do all locks have separate keys
Do all locks have only one key available
Rig Evaluation

Homework for Tonight

Write cover Letter & Executive Summary

Rig Evaluation

Cover Letter

Statement of appreciation
Purpose of evaluation
Comments on positive and negative findings
Statement of value
Closing comment
Rig Evaluation

Executive Summary

Discussion of issues & findings

Cost of issue vs. cost of upgrade to mitigate
Value – Cost of issue less cost of upgrade
Comments on value determination
Clocing comments