EP 2002-1500

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Restricted to Shell Personnel Only

1.

WELL CONTROL POLICY STATEMENTS

Policy statements are those global directives that are considered fundamental to the way we conduct our business and operations. Under normal circumstances deviation from well control policy is not permitted without prior approval through Operating Company procedures. These Policies provide the guidelines for interpretation, selection and application of procedures. 1.1. Safety of Operations

All well control operations shall be conducted in such a manner as to give highest priority to safety of personnel. 1.2. Minimisation of Environmental Impact

The second order of priority shall be to minimise environmental impact whether this be atmospheric, terrestrial, marine or subterranean. 1.3. Minimisation of Loss

The third order of priority shall be given to minimise losses be they loss of time, equipment or material. 1.4. Compliance with Law

As a minimum, all facets of well control shall be in accordance with the relevant laws of the area of operation. 1.5. Dispensation from Procedures

The procedures in this manual are set as a minimum standard, which must be bettered or at least equalled. Where operations are to be conducted using other procedures, dispensation must be granted by the OU Drilling Manager and the fact highlighted in the work programme 1.6. Special Circumstances

Where operations are non-standard or hazardous drilling conditions exist, additional safety measures shall be specified in the well programme. 1.7. Industry Standards

API standards and recommended practices shall be followed to the extent that they do not conflict with these policies. 1.8. Accurate Records

Accurate records of all operations shall be maintained, with particular attention paid to any unusual occurrences. For pressure tests, recording charts are recommended and should be retained with other well documentation.

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1.9.

Classification of Wells

For the purpose of well control, well specific risks shall be identified and reviewed using a structured evaluation system. Higher risk wells shall be the subject of a higher level of planning and control where modelling and other tools may be required. 1.10. Maintenance of Primary Control

Well drilling, workover programmes and operational procedures shall be designed and executed to continuously maintain primary control. 1.11. Underbalanced Operations

Primary well control during intentional underbalanced operations shall be maintained by a combination of fluids, well bore casings and specialised pressure equipment. Specialist Well Control equipment shall be in addition to the normal BOP arrangement. 1.12. Person in Charge

All well control operations at the wellsite shall be under the direction of a pre-appointed Person in Charge whose responsibilities and duties shall be clearly defined. The Person in Charge for the drilling or Well Intervention unit and deputies shall be agreed in writing between the relevant Company and Contractor Management. 1.13. Personnel Complement

All well control operations shall be conducted with sufficient personnel to ensure safety and efficiency. 1.14. Personnel Competency Standards

The Operating Company shall be responsible for the assessment and appointment of personnel responsible for the planning and execution of well control procedures. These staff shall be both competent and qualified to the agreed Operating Company standard. 1.15. Well Control Drills

Drills shall be carried out to achieve and maintain an acceptable performance standard. Drills shall continue until the Shell representative is confident that equipment and personnel are operating to the agreed standard. Drills may include but not be limited to Drilling, tripping, stripping, out of hole, and volumetric. 1.16. Duty to Inform Driller

The Mud Logger, Mud Engineer, Derrickman and/or Shaker Hand, and other members of the drilling team shall each keep the Driller fully informed of any indications of a potential well control situation. 1.17. Drillers Duty to Act

The decision to take immediate corrective action shall be the responsibility of the Driller.

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1.18.

Safe Assembly and Briefing Areas

At least two muster areas shall be established on each drilling or workover site/facility. Of these two areas, the one upwind at any given time is the safe muster area unless otherwise designated. Note: this may be because of inaccessibility, fire or other reasons. 1.19. Dissemination of Information

Well control related information shall be disseminated to all relevant personnel and contractors, as required, and well control aspects shall be regularly discussed during handovers, the weekly safety meetings, or toolbox meeting. Safety meetings with Company, rig and contractor personnel shall be conducted before all well control operations. The meetings should review planned operations and contingencies. 1.20. Reliable Communications

Reliable 24 hours per day radio and/or telephone communications shall be established between the well site and base supervisory personnel. An independent backup system should also be available. 1.21. Duty to Inform Superintendent

The Company Rig Superintendent or equivalent e.g. Senior Well Engineer (Operations) etc. at the base shall be advised of any deficiencies in BOP equipment, standards, and operating procedures. 1.22. Equipment Provided

All operations shall be provided with the equipment as agreed in the contract, which is necessary to conduct well control operations in a safe and efficient manner. 1.23. Equipment Standards

All well control equipment shall be of dimensions and pressure rating appropriate for the application. All well control equipment shall be maintained with manufacturer genuine or approved spares and shall be operated and tested in accordance with manufacturers recommended procedures. 1.24. Blowout Prevention Review

Each newly contracted drilling unit shall undergo a blowout prevention review as part of the commissioning process prior to spud of its first well and shall include: BOP equipment, controls and control unit location; Mud gas separator Kick detection systems; BOP operating standards and procedures; BOP inspection, testing, and maintenance programme.

This review is recommended to be repeated at suitable milestones during the life of the contract e.g. with a change in operational risk, before an exploration or workover campaign, particularly hazardous or tricky well etc.

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1.25.

Blind/Shear Rams

Where there is a risk of drilling through formations containing hydrocarbons that have the potential to flow to surface, shear rams should be installed in the BOP stack and be proven capable of shearing the drill pipe in use under no-load conditions and subsequently provide a proper seal. (in use = sequentially added at surface while drilling) Where shear rams are not available or not able to cut the selected drill pipe, procedures to make the well safe must be in place and regularly practised for ALL such situations. 1.26. Downhole Non Return (float) Valve

Whenever there is a risk of uncontrolled flow up the drill string, a method of controlling flow shall be specified for each individual well operation. 1.27. Material and Supplies

Adequate material, supplies and reserves to effectively deal with well control situations in a timely manner shall be available. The required quantity and quality of materials and supplies shall conform to Operating Company procedures and normally be documented in the well programme. 1.28. Well Design

All well casing and tubing designs shall be in accordance with the Shell Casing and Tubing Design Guide. 1.29. Integrity Testing Casing or Liner

Any new casing or liner shall undergo an integrity test before further drilling or other category of work is carried out through that casing. The type of integrity test shall be specified in the well programme. In general, the casing or liner shall be pressure tested immediately after cementing (soft cement) as specified in the well programme. 1.30. Kick Tolerance

Periodic checks shall be made to establish the kick tolerance in terms of magnitude and intensity of an influx that can be safely handled with the mud in use. 1.31. This includes:

a) The margin of safety (weight tolerance) between the current mud weight and the shoe strength (practical consideration), and b) The risk (volume or weight tolerance) and consequence of not being able to contain and safely manage, and thus the choice of procedures to prevent and deal with, a kick. On drilling out each casing string, it is important to establish the formation integrity. 1.32. Shallow Gas

An optimal site investigation shall be conducted at a drilling location to determine the likelihood of shallow gas being present. In areas where shallow gas is deemed a possibility, consideration should be given to moving the surface location. In any case, a contingency plan shall be prepared prior to spud.

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1.33.

Course of Well

Deviation surveys shall be taken to ensure that the course of the well is within the limits given in the programme and that the bottom hole location is known to a degree that enables intersection by a relief well. . 1.34. Continuous Observation

Any open well with exposed formation shall be monitored continuously for flow. 1.35. Flow Checks

A flow check shall normally be made whenever a drilling break is encountered. As a minimum flow checks shall be performed on all trips out of the hole: 1.36. On bottom In the shoe of the last casing string Before starting to pull the BHA through the BOP. Swabbing/Surging

When tripping, procedures shall be used to minimise swabbing and surging. In circumstances where it is suspected that swabbing may have occurred, and provided there is no flow, the pipe shall be run back to bottom and bottoms-up circulated. 1.37. Use of Trip Tank

The trip tank shall be used for the accurate measurement of mud volume changes when tripping. Trip sheets recording actual vs. theoretical volume changes shall be filled-in for each trip in and out of the hole. The trip tank should also be used for monitoring the well under static conditions i.e. logging etc. 1.38. Transfer of Mud

The Driller and Mud Logger shall be informed of all mud transfers with details of volumes, time intervals and completion of operations. 1.39. Kill Technique

The technique adopted to control a well, shall be in line with Operating Company standards, or as specified in the well programme. 1.40. Pre-recorded Information

A kill worksheet shall be maintained and pre-recorded data obtained at such frequency to allow accurate calculations of kill parameters.

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1.41.

Barriers

All planned well operations will normally be executed under the protection of two independent barriers between reservoir and environment, in order to prevent an unintentional flow from the well. Should one barrier be lost then the focus of operations will divert to regaining two-barrier status. NOTE: One barrier may be acceptable in the case where the reservoir cannot produce to the environment without pressure boosting.

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