High-Altitude Geothermal Operations in Chile

Cap-and-Trade for California

34th Annual Meeting Highlights
High-Altitude Geothermal Operations in Chile
Cap-and-Trade for California
34th Annual Meeting Highlights
GE OT HE RMA L RE S OURCE S COUNCI L
Bulletin
P R S R T F I R S T C L A S S
U S P O S T A G E
P A I D
P E R M I T # 1 6 9 8
S A C R A M E N T O , C A
Vol. 39, No. 5
September/October 2010
GE OT HE RMA L RE S OURCE S COUNCI L
O
Over the last four years increasing interest in geothermal energy in Chile has
culminated in the recent full scale exploration drilling in the northern high altitude
regions. The drilling rig selected for the highest area, Apacheta, at 4700-4800 m belongs
to Estrella International Energy Services Ltd. The Apacheta project is being developed in
a joint-venture called Geotrmica del Norte S.A. (GDN), with Enel holding 51%, Chilean
state oil and gas company Empresa Nacional del Petroleo SA, or ENAP, holding 46%,
and state copper-mining company Corporacin Nacional del Cobre, or Codelco holding
the remaining 3%.
The physical operation is managed through the GeoEstrella; joint venture with
Geotec, a Chilean company providing local support including camp, logistics and
high altitude operations experience. The following article discusses the preparation,
mobilization and operation of a large modern automated electrical drilling rig in these
harsh environmental conditions.
32 GRC Bulletin
The Challenges of
High-Altitude Geothermal
Operations in Chile
by Gary Pidcock,
Vice President Business Development, Estrella
Looking down on the rig from the mountains. PHOTOS PROVIDED BY ESTRELLA INTERNATIONAL ENERGY SERVICES LTD.
September/October 2010 33
Planning
Following a long period
of discussions with the
Operator, an advanced AC/
VFD (Alternating Current/
Variable Frequency Drive)
rig was specifed and
accepted for the exploration
drilling program at
Apacheta. Following the
award, GeoEstrella fnalized
the full scale plan to prepare
and import the rig from
the USA and receive and
manage it at the remote high
altitude site in Chile.
Rig Preparation
Although less than two years old, Rig
1201 was given a complete overhaul of basic
equipment to ensure a trouble-free operation.
Several upgrades were made to the rig prior to
shipment. Major capital additions such as a Top
Drive were added to improve drilling efciency.
An Iron Roughneck and a self-elevating catwalk
were fted to improve safety and reduce manual
Geothermal in Chile
Road to the high-altitude remote site of the Apacheta rig.
labor at high altitude. An additional power
generator was supplemented to compensate for
almost 50% loss due to the extreme altitude.
Other important modifcations were made
to accommodate the large diameter holes to be
drilled which are not normal for this type of rig.
Furthermore, mud cooling and steam diversion
systems were added for full scale geothermal
drilling. Large BOPs
(Blowout Preventors)
were also purchased and
the rig was completely ft
and function tested in the
controlled environment of a
rig-up yard in Texas before
dispatching the rig to the
high altitude site in Chile.
Mobilization
The rig was carefully
broken down and packaged
for the long journey to
Northern Chile. A cargo
vessel was selected to
suit delivery timing and
below deck stowage area
to protect against seawater
Drilling bit at the well site.
34 GRC Bulletin
Geothermal in Chile
damage. The shipment arrived in the Chilean port
of Antifogasta in July 2009 and was ofoaded to
the holding area from where it was trucked to the
frst location. Prior route planning was performed
to ensure that there were no obstructions or risk of
impact to the environment and local communities.
Road repair machines and towing support were
provided for the last 20 km as the conditions
deteriorated and vehicle power was reduced
above 4000 m (13,120 ft). In less than two weeks
the complete rig plus critical spares, consumables
and auxiliary equipment were delivered to the frst
location called Cerro Pabelln 1 at 4750 m (15,584 ft).
Operations
The frst well was spudded (started) in August
2009 and the rig drilled continuously completing
four wells with excellent performance. After the
drilling of each well, the rig was moved of and
testing was conducted by the operator. Following
the frst major rig move from the port, three other
moves have been made to new locations in the area
to drill the four deep holes.
Working continuously at this altitude with
large equipment and large numbers of people has
been a signifcant challenge. The rig has reduced
the well times from the similar drilling projects in
the area by over 30%. This has been achieved by
taking a multifaceted approach to improvement.
Some of the key areas where special atention has
been required are summarized as follows:
Health and Safety
All personnel are given a pre-arrival
medical exam to check for altitude capa-
bility. These tests examine blood, heart
and lung conditions against set limits to
ensure that every worker is ft to live and
work at this altitude.
Complete onsite medical service with
24 hour availability ensures that there is
support at all times. Operations person-
nel must report to onsite medical staf on
arrival and regularly throughout their
employment for blood pressure and oxy-
gen counts.
Strict safety and job analysis techniques
are vigorously employed to ensure that
accidents are avoided. (To date, one
small fnger injury has been the only de-
viation, however, several people had to
Top drive system.
Houston ret.
September/October 2010 35
Geothermal in Chile
be relocated to other job sites due to their
reaction to the altitude.)
Additional geothermal drilling train-
ing was provided to personnel who had
come from the mining, oil and gas sec-
tors. Personnel with experience in drill-
ing large scale geothermal wells were
brought in to assist with the supervision
and training.
Automation
As mentioned in the Rig Preparation,
specifc equipment has been added
to the rig to minimize the manual
labour required. Included in this is the
Top Drive system that has proven its
durability in difcult drilling conditions,
providing immense advantages for the
drilling function. The Iron Roughneck
and automatic catwalk have also been
very valuable to the process.
Winterization
The rig has been specially fted with
wind protection and a steam generator
to maintain heated working areas and
non-freezing conditions for pipework.
This has proved invaluable in sub-zero
temperatures.
Spares and Consumables
A large amount of spares and repair
equipment has been provided with the
rig to ensure that all equipment can run
continuously. Spare parts can take as
Working continuously at this
altitude with large equipment and
large numbers of people has been a
signicant challenge.
Rig during ow testing operations.
36 GRC Bulletin
long as a week for delivery,
hence it is important that
onsite spares are carefully
managed and maintained.
Base Camp
With over 70 people
involved in the daily
operation, GeoEstrella
was charged with the
responsibility to construct
and operate a large
camp. A small camp was
constructed at the well
site, but a large complex
was installed at a lower
elevation of 3200 m about 40 minutes from
the drilling locations. This provides more
liveable conditions for the work team to
eat and sleep during their of-shift.
In general, operations have been conducted
without any major problems. However, a severe
dust storm with more than 60 mph winds came
early in the program and lasted for over 12 hours.
Geothermal in Chile
Communications were lost and activities were
shut down for almost a day. This acted as a good
reminder that the weather conditions at this
altitude can be very severe and unpredictable.
Work and travel in the area is hazardous and
many precautions are taken to prevent losses.
Many hurdles have been overcome and
activities are continuing on a daily basis to
Another view looking down from the mountains.
The weather
conditions at this
altitude can be
very severe and
unpredictable.
Flow testing.
September/October 2010 37
Geothermal in Chile
Workers muscle a wellbore pipe.
explore the geothermal
assets in Northern Chile
with improved safety,
environmental control and
efciency using the Estrella
1601 rig. Above all, those
involved have gained a
great respect for the high
altitude and remote nature
of the location. Planning
and maintenance are vital
ingredients to the success
of the operation and many
lessons have been learned.
Further improvements are
being sought everyday
to make the project a
complete success. n
Gary Pidcock can be reached at gpidcock@estrellasp.com.