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Prepared by: PT Hughes,Jr IPM Ref.

IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 1 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

IPM
WELL CONSTRUCTION AND INTERVENTION
PROCEDURE

L. Hibbard A. Campo
1.0.0 01/Aug/01 Original Issue PT Hughes, Jr IPM WCI Mgr IPM President
Rev Issue Date Revision Description Prepared by Verified by Approved by
This revision approved by A. Campo Signed
IPM President

Warning: Paper copies of this document are UNCONTROLLED. This copy valid only at the time of printing.
The controlled version of this document is stored on the
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Please check the Revision History on the first page of the document at that site for any revisions.

The CUSTODIAN of this document is the VERIFYING ENTITY. The document control requirements are
outlined in the IPM-PR-QAS-001 Document Control & Numbering Procedure.

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 2 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

TABLE OF CONTENTS

1. PURPOSE............................................................................................................................................. 3

2. SCOPE.................................................................................................................................................. 3

3. DEFINITIONS........................................................................................................................................ 3

4. REFERENCE DOCUMENTS................................................................................................................ 4

5. PROCEDURE ....................................................................................................................................... 5
5.1 Overview........................................................................................................................................... 5
5.2 Concept and Development ............................................................................................................. 5
5.3 Capital Project Approval Process .................................................................................................. 6
5.3.1 Detailed Design.............................................................................................................................. 6
5.3.2 Final Approval ................................................................................................................................ 6
5.4 Planning, Purchasing and Logistics.............................................................................................. 6
5.5 Project Execution ............................................................................................................................ 6
5.6 Completion and Evaluation ............................................................................................................ 7
5.7 Detailed Description of Minimum WCI Requirements ................................................................. 7
5.8 Importance of Fiduciary Control in the WCI Process ................................................................ 10
5.9 Well Construction & Intervention Process Flowchart ............................................................... 11
5.10 General capabilities of WEMS and other IPM tools ................................................................... 12
5.10.1 WEMS.......................................................................................................................................... 12
5.10.2 WellTRAK .................................................................................................................................... 12
6. RESPONSIBILITIES ........................................................................................................................... 13
6.1 Integrated Project Management High Level Project Organization ........................................... 14
6.2 Well Construction & Intervention Project Level Organization.................................................. 15

7. RECORDS .......................................................................................................................................... 16

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 3 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

1. PURPOSE
The purpose of this procedure is to generically outline and detail the processes that are recommended
for planning and implementing a Well Construction Intervention Project for IPM. The processes
utilized during the preparation of this procedure are for the most part found in detail in WEMS and
outlined elaborately in the IPM Project Management Manual. Other excellent sources of reference are
also given at the end of this instrument for user use.

2. SCOPE
This procedure applies to all IPM operations and projects. The processes are in no way intended to be
construed as the only methodology to follow in a project; every project will have its own specific
elements that will have to be managed. It is possible that not all elements of this procedure will have to
be considered. However, it is suggested that this be a framework to follow to capture the project
cycle.

3. DEFINITIONS

Project Management – An IPM well construction, intervention or production activity necessitating


scheduling, resourcing, costing, approval, execution and tracking.
Technical Integrity - An auditable trail on the assumptions, design standards, design applications,
policies and decision processes used to derive and implement the well and appraisal program. This
can be easily customized to include any client specific policies and procedures included in the bridging
document.
Organizational Learning - Performance prediction, measurement, providing a systematic learning
process, which drives continuous improvement. Lessons learned are captured from our global
operations, and are therefore available to start new projects higher on the learning curve.
WEMS – Well Engineering Management System, an IPM tool that has been developed for useful and
effective project management applications. The systematic WEMS process is extremely useful in
assisting Project Teams in well construction and intervention activities, to plan an operation from start
up, detailed design and then through the execution stages.
Project Initiation Package (PIP) – Official project initiation document that provides the project
mission, goals, outline, economics, stakeholders, team and work break down structure (see Appendix
A).
Project Data Package (PDP) – Approval document containing the project specifications, authorization
for expenditure (AFE) application and economics of the project (see Appendix B).
AFE - Authority For Expenditure
CSIP - Casing shut-in pressure
DPSIP - Drill pipe shut-in pressure
DOR - Daily Operations Report

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 4 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

E&P - Exploration & Production


FIT - Formation Integrity Test
G&G - Geology & Geophysics
LOT - Leak off test
LTA - Lost Time Accident
MD - Measured Depth
MASP - Maximum allowable surface pressure
MOF - Major operational failure
QHSE - Quality, Health, Safety and Environment
ROP - Rate Of Penetration
SOFS - Schlumberger Oilfield Services
TVD - True Vertical Depth
WCI - Well Construction and Intervention
EOW - End of Well Report
CPF - Central Producing Facilities

4. REFERENCE DOCUMENTS
IPM-ENOP-S001 Well Engineering Management System Process
IPM-PR-FIN-001 AFE Procedure
IPM-PR-FIN-002 ABP & Budgeting Procedure
IPM-PR-HSE-001 Permit to Work System Procedure
IPM-WI-HSE-009 Completing A Permit to Work Form Work Instruction
IPM-PR-PTS-001 Project Transition Procedure
IPM-PR-POM-001 Well Management Procedure
IPM Policies, Standards, Guidelines or Procedures, Forms, Reference Documents
SDS Website=http://www.dubai.oilfield.slb.com/sds/
WEMS
IPM Project Management Manual

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 5 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

5. PROCEDURE

5.1 Overview
Every IPM Project should entail the use of a systematic, pre-defined work process and methodology to
accomplish the goals and objectives of each specific project. Whether office or field-based, the
methodology to be followed should be fairly standard. This could entail the use of the Production
Development Engineer or Field Supervisor exploring alternatives to increase performance from a
producing well asset or the Drilling Engineer exploring methods to achieve technical limit wells at an
expedited learning curve. In the case of a Well Intervention Project, the same methodology should be
followed as one would initiate a Well Construction Project; the difference being only in the various
functions to be performed and processes used. From the initial request from the Exploitation group or
the Production Operations Department (as an example) to explore the economic viability of a workover
to bring a well back to profitable economic conditions, the Production Engineer will utilize the various
departments, skill sets and experience within an organization to technically and economically
investigate the proposed work. All such work will be handled as a business case proposal, looking at
investment needed to achieve expected outcomes.
The Well Construction and Intervention Process is shown in the process flowchart found in section.
The process can be separated into five phases as follows:
• Concept and Development
• Capital Project Approval
• Detailed Design
• Planning Purchasing and Logistics
• Project Execution
• Completion and Evaluation (against original plan and expected outcomes)

5.2 Concept and Development


The WCI process is initiated by:
• Requests for new well(s) as part of the FDP (Field Development Plan)
• Workover request from Production or Exploitation Departments
• Result of short-term production planning (STPP) process based on FDP / ABP identifying
suitable drilling projects.
Various options will be investigated and evaluated to determine the optimum type of well construction
and intervention method to achieve the project objectives in line with FDP. Well and workover
proposals (i.e. Project Initiation Package) will be prepared including risk, and economic analysis and
project scope in line with Field Production Profile goals.

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contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 6 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

5.3 Capital Project Approval Process


The proposed project will require approval from the ‘Approval Authority’ for the project. This will
normally be the project budget holder and or project manager and or client. The proposal may have to
be internally reviewed and approved before seeking approval externally from the client, working
interest owner(s) or permitting authority.

5.3.1 Detailed Design


The WCI Basis of Design (BOD) will be prepared after the Project Initiation Package (PIP) has been
approved in line with the FDP. The BOD captures project reasoning, goals and assumptions and
considers the whole life of the project. This document will be the primary design document for the
project and will include programs and design specifications. A detailed project cost estimate is
prepared based on the BOD. For larger scale projects this final estimate may utilize tendered quotes
to determine approximate cost of third parties. All resources for the project, such as materials and
equipment will be listed and the cost of each resource estimated.

5.3.2 Final Approval


Once the BOD has been submitted and approved, the Authorization For Expenditure (AFE) for the
Project can be prepared. This will use the detailed cost estimate that has been prepared from the
BOD to perform an economic analysis on the project. A summary of the BOD will be combined with
the AFE to form a Project Data Package (PDP), which will be submitted for approval (Refer IPM-PR-
FIN-003 Capital Project Approval Procedure for more details). Once the PDP has been approved
(includes the AFE) the project can now move to the detailed programming, scheduling and or
execution stages.

5.4 Planning, Purchasing and Logistics


Once the BOD and operations programs are completed, the planning and purchasing activities should
commence accordingly. The project schedule will be planned in the STPP and will be further
negotiated in the weekly / monthly operations integrated planning meeting. Purchase orders will be
originated for the necessary equipment, services and materials for the project and the logistics for
timely delivery coordinated.

5.5 Project Execution


The timing of the Project Execution will be dependent on the availability of equipment, materials and
the scheduling of resources. A handover will be required from the Production Operations Department
to the Well Construction / Intervention Department of the well for the duration of the project. In case
the operations are unsuccessful, a joint decision will be made between the client, EDP, POD and the
Project Manager to either continue operations on the existing plan, execute an alternate plan, or
terminate the project at that point. This may however, be incorporated and stated in the well
operations program.

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 7 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

5.6 Completion and Evaluation


At the conclusion of the project the well will be handed back to POD and the resources allocated to
another project. An End of Well (EOW) Report will be prepared and distributed to the stakeholders in
the project.
During the evaluation phase the field tickets and invoices are checked by the Project Leader conducts
a reconciliation of the costs against the AFE and either closes-out or prepares a supplementary AFE.
Final close-out will only occur after the Supplementary AFE is approved and reconciled. Deviations
from planned expenditures will be communicated to the planning groups for consideration on ongoing
and future projects.
The project is evaluated against the original objectives by the Production Planning Department and
EDP and the important ‘lessons learnt’ from the project are extracted and captured in the InTouch
Databases through the WEMS process. The project performance in terms of work execution timings,
budget versus actual cost and production targets through individual well and zone performances will
provide valuable feedback for operations planning groups to be used as steering tools for discrete
project targets and overall project planning.

5.7 Detailed Description of Minimum WCI Requirements

Geology – A description of the local and regional G & G needs to be made including the general
sequence diagram, the appropriate seismic cross sections, local lithology descriptions, estimated
formation fluid pressures, knowledge of formation fluid properties (for compatibility studies), reservoir
rock characteristics (for completion including perforation plans) any LCM restrictions potential or
productive sand members and other G&G technical matters that will enhance the knowledge for the
WC & WI staff before well intervention is attempted.

Drilling Conductor Hole – The objective is to establish the exact criteria for Conductor Pipe setting,
including but not limited to shallow hazards and other problems so as to avoid broaching,
contamination of water tables, etc. taking into account local legislation.

PreJob Check – A conductor Installation check list is reviewed by the Drilling Supervisor before
spudding the well. A schematic showing the new surface hole relative to nearby existing wells will be
plotted by the Directional Contractor. Access, space constraints, any interference inconsistencies,
obstructions are noted and advisory issued. The closest approach analysis for the new well, with
required producing wells shut during drill by are clearly understood and followed.

Casing Running, Reciprocating, and Landing - The following should reflect all the details of casing
assembly make-up, running procedure, landing and cementing. With and without diverter should be
addressed.

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contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 8 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

Conductor, Surface, Intermediate, and Production Reciprocation & Landing – Enough detail
should be paid to explicit guidelines as to how to make-up, run and cement the remaining casing
strings and the importance of getting the shoes set at the designed setting depth. Hole section
guidelines will be developed and on the rig before each section is drilled. The objectives of each
casing string must be clearly stated in the program, which ensures that these are met.

Cementing - General Practices, guidelines and Field Blend data should be given and noted in the plan
so as to provide sufficient detail for each operation. Sampling procedures for all fluids and additives,
mix water preparation and chloride check procedures should also be provided. Displacement
calculations should be provided in the original plan as well as in the final cementing guidelines for each
section. Clear criteria for determining the quality of each cement job needs to be established, taking
into account the criticality and objectives of the respective casing and or liners.

Casing/Tubing Design - All detailed casing/tubing design criteria for all strings should be shown and
rated capacities reflected. It is recommended that the TDAS system be utilized to design all strings.

Wellbore Schematic – A detailed schematic drawing reflecting proposed downhole condition of well
including tangibles, hole sizes, brief description of proposed drilling fluid system, risk areas, etc. A
final wellbore schematic showing the final well status (completion and lift system details and wellhead
hookup) should be made of actual deliverables for each well and included in the End of Well report.

Casing Test Pressures - All casing test pressures should be clearly noted, the basis for these noted
in the program plan and should be as per IPM-WELL-S006 Standard. If testing the casing after
rotational wear, additional derating (SF) should be considered. Casing should be tested for 30
minutes, verified by chart.

Cement plugs, Sidetracking and Reactive Pills – description of the processes, equipment needed
and procedures for each should be clearly outlined and then fortified in the hole section guidelines
issued for each section. The objective of each should be clearly stated in the program.

Wellhead Guidelines and Diagram - A description of the test plugs, wear bushings, and running and
retrieving tools that are to be kept and maintained on the rig at all times should be noted. Special
crossover joints or spacers should be noted as well, along with the wellhead installation processes,
clearly outlining the type and rating of equipment to be used, and the proper placement when run. A
diagram will be drawn to reflect the desired installation and equipment as well as an “as installed”
diagram, submitted in the EOW Report.

BOP Testing Guidelines - Describe items such as what test plugs, wear bushings, running and
retrieving tools are to be kept and maintained on the rig at all times. Associated equipment such as
TIW's, IBOP's, kelly cocks, choke and standpipe manifold valves should all be tested to the same test
pressure as the BOP's. Note the rated pressure that each piece of equipment is to be tested to and
what specific pumps are to be used for the operation. Testing Frequency should be indicated. This will
be done in line with standards, IPM-WELL-S001 and IPM-WELL-S002.

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 9 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

Other Drilling/Intervention Operations - Other operational issues such as diverter use, formation
integrity tests, directional drilling guidelines, which should include survey programs and traveling
cylinder and drill-by Shut-in Practices, drilling fluids to be used along with optimum hydraulics and
drilling bit selection guidelines, tripping and detailed guidelines on unplanned activities should be
properly planned for and included in the well planning activities.

Electric Wireline Logging, Open and Cased hole Procedures – the detailed plan should not only
include tools to be run, but hole risk planning and the process to get the data to the Project
management offices. Objectives of logging program should be stated along with any post processing
and data delivery timings.

Waste Management Plan – detail of plan that should include cuttings management, fluid disposal, if
any, and remediation plans. This will also include handling of completion and or stimulation fluids
returned from a well during clean-up, grey or black water on site and material (sacks etc.) waste.

Completion and Workover Operations – Detailed plans should include completion fluid to be utilized
and filtration guidelines, displacement procedures for perforated wells, packer setting procedures,
perforation guidelines for conventionally and unconventionally completed wells, SCSSV running and
operating procedures, nitrogen jetting guidelines and cleanout procedures.

Other Intervention Operations – Other intervention such as lease oil treating, hot oiling procedures,
zone changes, gas lift valve change outs, coil-tubing and slickline operations, ESP pulling, scale
squeeze procedures, tubing and rod handling best practices, well diagnostics and producing well,
blow-down processes should all be clearly detailed and made a part of the respective operational plan.

Safety Systems and SIMOPS Plan - Simultaneous operations, production suspension, drilling
suspension, safety drills, Inspections, and meetings such as Weekly Safety Drills, Tour Meetings,
Change of Operation Meetings, Well Control Drills and Weekly Rig Safety Inspections, should be
carefully outlined and followed through with and incorporated in the normal operations routine. The
above listed items should also be addressed in the Bridging Document and be fully agreed to by all the
Project management, technical staff and third parties.

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver:1.0.0 Page: 10 of 16
Approved by: IPM President Procedure Issued: 01Aug/01

Technical References and Project Manuals – General operational references and project specific
manuals such as completion procedures, wireline practices guidelines, coiled tubing guidelines,
optimum field or project drilling and intervention practices should also be prepared beforehand and
made available for any large scope project and be available for easy access at the CPF and/or rig
sites. These also should include following manuals:
• Emergency Response Plan
• Emergency Evacuation Plan
• Simultaneous Operations Plan
• Safe Welding and Burning
• Security at Remote Locations
• Hurricane Securing and Evacuation Procedures
• Oil Spill Response Plan
• Field Medical Manual
• Safe Practices Manual
• Well Control Manual
• Stuck Pipe Manual

5.8 Importance of Fiduciary Control in the WCI Process


It is extremely important that during any WCI Project that the capital cost and tracking process be
followed and managed carefully. AFE Preparation & Control Document IPM-PR-FIN-001 should be
followed explicitly and then used as a tool with the methodology found in the Project Internal Controls
Manual. It is strongly suggested that the Project or Contract Controller along with the Project Manager
encourage capital cost/LOE fiduciary controls throughout any WCI Project, in unison with Geomarket
OFS criteria. During the execution of the work it is important to perform a daily and weekly
reconciliation of actual versus planned costs, with a clear understanding and approval by the budget
holder for any major discrepancies.

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes, Jr. IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction & Intervention Ver:1.0.0 Page:11 of 16
Approved by: IPM President Procedure Issued: 01/Aug/01

5.9 Well Construction & Intervention Process Flowchart


IPM WELL
ENGINEERING AFE IPM-PR-
WEMS IPM-PR- HSE-
POLICY & WellTRAK IPM-PR-
STANDARDS FIN- PROJ MGT 001,002
001,002 POM-001
HANDBOOK
REFERENCES

PROJECT Prod.
EDP WEMS DATABASE
MANAGER Operations
REQUEST
Request
INPUT

PROJECT EXECUTION PHASE


REQUEST FOR WCI
CONSIDERATION LIASON W/PROD.
PERFORM WCI
OPS, NO SUPPLEMENTARY
OPERATIONS YES
CONCEPT & MOBILISE RIG AFE REQ'D?
DEVELOPMENT PHASE
AFE APPROVAL
REVISE PROJECT PROCESS
INVESTIGATE WCI
CRITERIA IMPLEMENT
OPTIONS PROJECT ACHIEVE
NO REMEDIAL
OBJECTIVES?
PLAN?

PREPARE COMPLETE PROJECT


PROJECT SCOPE WCI PRELIM PRELIM ECON, YES & HANDOVER TO NO
PLAN COST EST PROD OPS.

INTEGRATE TECH &


ECONOMIC
OBJECTIVES
NO
CAPITAL PROJECT APPROVALPHASE
COMPLETION &
CAPITAL PROJECT APPROVAL
EVALUATION PHASE

DETAILED DESIGN WEMS DATA BASE


YES
PHASE
PROJECT KNOWLEDGE SHARING
LOOP CONTINUOUS
APPROVED PREPARATION OF
IMPROVEMENT
BOD &
LOOP
DESIGN OPERATIONS
APPROVED ? PROGRAMME

NO CLOSE-OUT PROJECT
PREPARE/ INVOICES & EVALUATION
PLANNING, PURCHASING & REVIEW EOW TICKETS
LOGISTICS PHASE REPORTS

YES UPDATE &


REVIEW PLAN
UPDATE & RECONCILE
SCHEDULE IN PROCURE
MODIFY PLAN EXPENSES
OPERATIONS EQUIPMENT,
PLANNING MATERIALS &
MEETING SERVICES FOR
WKLY/MTHLY PROJECT
COORD. TIMING
FOR START-UP

RESOURCE CRITICAL OUTPUT PROJECT


EOW TOTAL PROJECT
REQUIREMENTS PERFORMANCE LEAD ITEMS
REPORTS EXPENDITURE EVALUATION
MEASURES SCHEDULE RISK
DOCUMENT
ASSESSMENT

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work contains the confidential and proprietary trade secrets of Schlumberger and
may not be copied or stored in an information retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or mechanical, in whole or in part,
without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr. IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction & Intervention Ver: 1.0.0 Page:12 of 16
Approved by: IPM President Procedure Issued: 01/Aug/01

5.10 General capabilities of WEMS and other IPM tools


IPM has developed many tools that, when utilized on a consistent and meticulous manner, offer each
and every one of our projects the processes for effective Project Management. What are described
briefly in the following sections are a few of the powerful tools that, when utilized for any WCI Project,
offer a consistent framework for project planning, design, risk evaluation, implementation, post-project
documentation and knowledge sharing.

5.10.1 WEMS
This is a project management tool, which is based on Microsoft Project that steers Project Teams
through a vigorous course of the various project stages. When followed from the onset, it meticulously
takes the users (Project Managers, engineers, Alliance leaders) through a series of tasks using a
checklist approach and refers to a series of template documents (Excel and Word formats). It offers
the users an organized and consistent methodology for Project planning (via a planning tool), design,
tracking, risk management, responsibility matrices and subsequent knowledge learning and sharing.
WEMS is a tool that can be used for all types of WCI Projects, not just limited to well construction or
production engineering Projects.

When used properly, the project templates can assist the Project TEAMS to prepare drilling, workover,
intervention and other production engineering projects from the original planning stages, to final
reports, management of change processes to the knowledge-learning element. If used, this can be
used as the link for far reaching multi-disciplined projects involving well construction, completion,
production and subsequent well intervention during the life of field operations. The importance of
utilizing the WEMS methodology throughout project planning, design, execution and post well
construction is the value found in a shared history base of well or asset performance and the shared
knowledge that is captured and available from that data base, when utilized on a consistent basis.

5.10.2 WellTRAK
This can be summarized as being another important tool used in WCI Projects to capture well
construction and intervention operational statistics, performance metrics and knowledge learning. It is
used as part of WEMS during the execution phases of any WCI Project, including capabilities of AFE
preparation and project cost tracking. With data bases established for a given Project area, this tool
can be useful in tracking data trends, generating project cost reports and other project data.

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.
Prepared by: PT Hughes,Jr. IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver: 1.0.0 Page: 13 of 16
Approved by: IPM President Procedure Issued: 01/Aug/01

6. RESPONSIBILITIES

Well Construction and Intervention Procedure


IPM IPM CLT EDP WCID POD POD FDP QHSE CMFA HRA ITC LS LA SGS TM VDR
# ITEM M/G PM PO MO M/G LR
PP WS FPO
1 Develop WCI Proposal & AFE A/R C C C C I C C I C
2 Obtain Capital Project Approval I A/R C C C I I I I I I I I I
3 Develop BOD and Operations Program A/R A/R C C C C C C
4 Obtain BOD & Program Approval A A/R R
5 Schedule Project Activities A/R R R C C R R R C C C
6 Procure Equipment, Materials and Services A/R A/R C C C R C C C R I C
7 Excecute Operations A A/R A/R R R C C I C C I R
8 Obtain Approval on Project Completion A I A/R A/R C C R
9 Handover Well to POD A/R R C R I R R I I I I
10 Closeout Project EOW & Cost Reconcilliation I A/R R C C C C I C C C
11 Conduct Project Evaluation & Lessons Learned I A/R R R C C R C C C C C C C C

R Responsible (works issues, makes decisions, has authority unless superceded by the accountable party)
A Accountable (reviews decisions, ensures work is done)
C Consult (should be consulted before decision is made)
I Inform (must be informed of outcome)
Note: Nothing within this chart supercedes the responsibilities that are given by legal authorities; it also does not supercede the responsibilities that are outlined in the ERP.

The tasks that have more than one Responsible function suggest that it is a jointly achieved activity.

CLT Client IPM PM IPM Project Manager PP Production Planning


CMFA Contract Management, Finance, & Accounting ITC Information Technology & Communications QHSE Quality, Health, Safety, & Environmental
EDP Exploitation Department LA LR Land Administration, Legal, & Regulatory SGS Supply of Goods & Services
FDP Facilities Department LS Logistics Services VDR Vendor Services
FPO Field Production Operations MO Maintenance Operations WCID Well Construction/Intervention Department
HRA Human Resources & Administration PO Production Operations WS Well Services
IPM M/G IPM Management/Geomarket Management POD Production Operations Department TM Technology Manager

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work contains the confidential and proprietary trade secrets of Schlumberger and
may not be copied or stored in an information retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or mechanical, in whole or in part,
without the express written permission of the copyright owner.
Prepared by: PT Hughes, Jr. IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver: 1.0.0 Page: 14 of 16
Approved by: IPM President Procedure Issued: 01/Aug/01

6.1 Integrated Project Management High Level Project Organization

Project Manager

Technology
QHSE
Manager (*)

W ell Construction/ Production


Exploitation Facilities
Intervention Operations
Departm ent Department
Department Department

Support Functions

Reservoir Production Maintenance


Geosciences
Engineering Operations Operations

Land Adm inistration,


HR
Legal & Regulatory
Production Production
Development Developm ent
Field Production
Engineering Planning
Operations

Logistics Services IT & Comm unications

W ell Services

Goods & Services Contract Management/Project


Supply Finance & Accounting

Production
Planning

(*) Depending on the scale and scope of the project, Technology Manager's responsibilities can be assigned to an another
person acting as the Technology Focal Point.

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work contains the confidential and proprietary trade secrets of Schlumberger and
may not be copied or stored in an information retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or mechanical, in whole or in part,
without the express written permission of the copyright owner.
Prepared by: PT Hughes, Jr. IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction and Intervention Ver: 1.0.0 Page: 15 of 16
Approved by: IPM President Procedure Issued: 01/Aug/01

6.2 Well Construction & Intervention Project Level Organization

PROJECT
WCI Project Organigram
(as of date)
Client-Co Key WCI Project Services
D&M - M gr
Client P&S - M gr
GM Drlg & WO Fluids - M gr
Wireline & Testing - M gr
Solids & Waste M ngmt- M gr
Drlg, WO Contr.-M gr
M udlogging - M gr
Client-Co IPM /Schlumberger

Client Project M anager


Operations M anager (Name)

Client-Co Client-Co Client-Co IPM /Schlumberger IPM /Schlumberger


Drilling/WO Contractor

HSE/QA-QC RMT WCI Engineer WCI Engineer Well Site Supervisors Rig Supervisor/
Staff (Name) (Name) (Names) Tool Pusher

Client-Co

Client (CPF) IPM /Schlumberger


M aterials/Logistics

Logistics / Field HSE / (Support)


Coordinator

IPM /Schllumberger
Drlg/WO Fluids Co Solids&Waste M ngmt M ud Logging

Well Site Geologist M ud Engineers Specialists M ud Loggers


(Name)

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work contains the confidential and proprietary trade secrets of Schlumberger and
may not be copied or stored in an information retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or mechanical, in whole or in part,
without the express written permission of the copyright owner.
Prepared by: PT Hughes, Jr. IPM Ref. IPM-PR-WCI-001
Verified by: IPM WCI Mgr Well Construction & Intervention Ver: 1.0.0 Page:16 of 16
Approved by: IPM President Procedure Issued: 01/Aug/01

7. RECORDS
All records generated under this procedure should be retained for a minimum of 5 years or
minimum retention period stated in OFS Record Retention Policy or per the project contract
requirements, whichever is the longest. Regulatory reports should be kept for the length of time
required by law. Production and other historical records that are used for future projections should be
kept for the life of the project.

Schlumberger, confidential.  Copyright 2001 Schlumberger, Unpublished Work. All rights reserved. This work
contains the confidential and proprietary trade secrets of Schlumberger and may not be copied or stored in an information
retrieval system, transferred, used, distributed, translated or retransmitted in any form or by any means, electronic or
mechanical, in whole or in part, without the express written permission of the copyright owner.

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