AZERI M-I DRILLING FLUIDS LIMITED

201, Murtuza Mukhtarov Street, Az1065, Baku, Azerbaijan

Tel: +994 (12) 497.42.13 · Fax: +994 (12) 497.22.21·

Heydar Aliyev Enviro Unit Performance Report

Well: SDX-08

Report No: 02
Customer: BP
Location: Baku, Caspian Sea

Name Position Signature Date

Elman Melikov AZERI M-I, Project Engineer

Lawrence McLeod AZERI M-I, Project Manager

Emin Abdullayev AZERI M-I, Operations Manager

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SOLUTIONS Waste Management Enviro Unit Performance

Table of Contents

Contents
1. Introduction ......................................................................................................................................................... 3
1.1 Objective ....................................................................................................................................................... 3
2 Requirements....................................................................................................................................................... 3
2.1 Slop Sources ................................................................................................................................................ 3
2.2 Advantages of using Enviro Unit ............................................................................................................... 3
3 Equipment Description ....................................................................................................................................... 4
3.1 Equipment Location on Rig. ....................................................................................................................... 4
3.2 Fluid Treatment and Operating Procedures ........................................................................................... 5
3.2.1 Samples ..................................................................................................................................................... 5
3.2.2 Reporting and Discharge fluids overboard ........................................................................................... 5
4 Enviro Unit Utilization in SDX-08 Well ............................................................................................................. 8
4.1 Comparision of Slop Treatment between SAX-01 and SDX-08 Wells ................................................ 8
5 Advantages ........................................................................................................................................................ 10
6 Enviro Unit Cost/Cost Reduction/Elimination................................................................................................ 11

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1. INTRODUCTION
1.1 OBJECTIVE
Below is a performance report for the Enviro Unit used onboard the Heydar Aliyev for BP during drilling
SDX-08 well. The report covers the following information for March 29th – Oct 2nd 2023, which is
submitted to customer for review:
 Requirements
 Equipment Description
 Equipment Lay Out onboard Heydar Aliyev
 Equipment Performance and Waste Treatment Overview
 Interval Break Down
 Value Estimations

2 REQUIREMENTS
BP requested the use of the Enviro Unit during drilling of SDX-08 well.
The unit is used for reducing waste disposal volumes and expenses for processing, transporting and
treating slop water waste offshore.
2.1 SLOP SOURCES
Below is a list of Wastewater / Slop that can be treated using the Enviro Unit.

 Collection of Rainwater
 Deck Cleaning
 Tank cleaning
 Contaminated Drilling Fluid ( Interfaces )
 Completion Work
 Spillages
2.2 ADVANTAGES OF USING ENVIRO UNIT
Implementation of the ENVIROUNIT system provides a safe and environmentally responsible
approach to rig wastewater management. The system reduces the number of fluid transfers needed;
instead of transferring fluid from the rig, to a vessel, to a truck, and finally to a waste management
facility for treatment and final disposal to the environment, the fluid can be processed onsite at the
rig with minimal fluid transfers needed. Fluid transfers are significant because they represent an
increased risk of spill hazards. Anytime a transfer is in progress, there is a risk that fluid may be
spilled, contaminating the sensitive environment. Additionally, the use of the ENVIROUNIT system
reduces the total number of vessel transports to shore, reducing the carbon footprint of the
operations and mitigating the risks involved in transportation. Any improvement in Quality, Health,
Safety, and Environmental (QHSE) has a positive impact on operational efficiency.

 Cost Reduction from:

- Boat transportation
- Boat Cleaning
- Land Transportation
- Treatment fees / Landfill
 Environmental Friendly:
- Treatment of the fluid at rig site gives full traceability of the Waste stream
- Emission of CO² due to transportation and thermal treatment
- Leaching at Landfill
 Safety
- Large reduction of lifting operations, offshore and onshore.

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SOLUTIONS Waste Management Enviro Unit Performance

3 EQUIPMENT DESCRIPTION

The M-I SWACO MOBILE ENVIRO UNIT is designed to help minimize waste streams,
especially slop water and contaminated drilling fluid, both for offshore and land applications.
By reclaiming drilling fluid and treating wastewater so that it can be discharged on site, the
Unit reduces transport costs associated with disposal of waste and can reduce the number of
crane lift operations on site.

3.1 EQUIPMENT LOCATION ON RIG.

The Enviro Unit was positioned on the Starboard main level Pipe deck. This area was deemed to be best
position for the unit as is directly outside the Skimmer tank in the lower process area where the fluids
would be transferred to the unit from and directly above the pit room.

Fig 2 Enviro Unit position

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Hard Pipe and manifolds were fabricated from the Skimmer tank and pit room to transfer fluid
to and from the unit as below picture shows.

Fig 3 Manifolds behind Enviro Unit.

3.2 FLUID TREATMENT AND OPERATING PROCEDURES

When waste fluid is treated the requirement for discharge to sea is set at 15ppm and under, for the
effluent stream from Enviro Unit which is set by MENR ( Azerbaijan legislative body ).
Any fluids that above this is passed back through filter pods, or re-treated.
If the required ppm is not achievable then, the returns is directed to either cuttings skip/tote tank, or back
to a dedicated slops pit within pit room. The separated waste fluid is then used as a lubrication to aid
cuttings transfer during drilling operation.

3.2.1 Samples
For samples to be sent onshore, it is essential that sample bottles be clearly labelled with the following
minimum information:

- Date and time sample was taken;

- Sample point location;
- Name of installation
- Type and amount of preservative added e.g. 2.5ml or 5ml HCl depending upon the volume of
sampled water.

3.2.2 Reporting and Discharge fluids overboard

As requested by BP and Azeri M-I, a spreadsheet is used to record and document all discharges
overboard that is signed off by Azeri MI representative and BP Supervisor prior to any fluids being
discharged overboard from the Enviro Unit.
This will state the below
- Time and date sample was taken
- TOG or TPH ppm reading

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- Quantity of treated effluent (m3) (fluid discharged)

- Bottle Sample #

Below is an Example of Discharge Spreadsheet:

Fig 4 Discharge Form

Daily Report: Below is an Example of a Daily Report that was sent each day when Enviro Unit was
used.

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SOLUTIONS Waste Management Enviro Unit Performance

Fig 4 Daily Report Form

In above report you can see:

 Daily Volumes discarded
 WTD volumes discarded
 Chemical Usage
 Fluid ppm before discharging
 Current rig activity

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4 ENVIRO UNIT UTILIZATION IN SDX-08 WELL

The utilization of Enviro Unit on board Heydar Aliyev started on 29th of March, 2023. Since then 979 m3
(6148 bbls) of slop treated in Enviro Unit. As mentioned in previous paragraphs most of the slops are
taken from rig Skimmer tank. The rest of the slops are from vacuum unit operation – deck cleaning,
spillages etc.
After treatment 874 m3 (5488 bbls) of water was discharged overboard after achieving oil concentration
requirement and only 60 m3 (377 bbls) of waste left to be back loaded onshore. However, some amount
of generated waste was kept on the rig for cuttings lubrication during boat transfer operation.

4.1 COMPARISION OF SLOP TREATMENT BETWEEN SAX-01 AND SDX-08 WELLS

Charts below are described in 4 phases as
 Slop processed in Enviro Unit
 Water discharged
 Waste generated
 Fluid Recovered

Slop Volume Processed in Enviro Unit, m3

500 492
450
400
350
300 SAX01 16.5''x19.5''
250 SDX08 16.5''x19.5''
200
150 180 SAX01 14.75''x17''
100 60 62.5 97
23 82 SDX08 14.75''x17''
50
0 67
SAX01 12.25''x14.5''
SDX08 12.25''
SAX01 10 5/8''x 12.25
SDX08 8.5''x9.5''

SAX01 SDX08 % Change

Description

Slop Volume 253%

1473 5206
Treated, bbl. increase

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Water Volume Discharged, m3

500
450 458
400
350
300 SAX01 16.5''x19.5''
250 SDX08 16.5''x19.5''
200
150 163 SAX01 14.75''x17''
100 23 45 80
50.5 SDX08 14.75''x17''
50 59
0 52 SAX01 12.25''x14.5''
SDX08 12.25''
SAX01 10 5/8''x12.25''
SDX08 8.5''x9.5''

SAX01 SDX08 % Change

Description

Water Volume 300%

1158 4680
Discharged, bbl. increase

Waste Volume Generated, m3

25
23
20
19
17 SAX01 16.5''x19.5''
15
11
10 SDX08 16.5''x19.5''
10 8 10
SAX01 14.75''x17''
5
0 SDX08 14.75''x17''
0 SAX01 12.25''x14.5''
SDX08 12.25''
SAX01 10 5/8''x12.25''
SDX08 8.5''x9.5''

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SAX01 SDX08 % Change

Description

Waste Volume 4.4%

301 314
Generated, bbl. increase

It should be noted that SDX08 – 8 ½’’ x 9 ½’’ section is not completed yet. Slop treatment volume will
therefore be greater than what is depicted in these charts. The full treatment volume can be provided
later upon request.

Fluid Volume Recovered, m3

16
14 15
12
10 SAX01 16.5''x19.5''
8 7 SDX08 16.5''x19.5''
6 7
4 SAX01 14.75''x17''
4
2 0 SDX08 14.75''x17''
0
0 0 SAX01 12.25''x14.5''
0
SDX08 12.25''
SAX01 10 5/8''x12.25''
SDX08 8.5''x9.5''

SAX01 SDX08 % Change

Description

Fluid Volume 207%

0 207
Recovered, bbl. increase

5 ADVANTAGES

Implementation of the Enviro Unit on the Heydar Aliyev for drilling operations provides a safe and
environmentally responsible approach to management of rig slop water waste. The primary objective is

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to minimize waste disposal volumes along with the associated expenses for processing, transporting,
and treating slop water waste.

The system reduces the number of fluid transfers needed; instead of transferring fluid from the rig to a
vessel / truck / waste management facility for treatment and final disposal to the environment, the fluid
was processed at the rig site thus reducing further waste generated. Minimizing fluid transfers are of
the utmost importance because they represent an increased risk of spill hazards, consequently creating
a risk of contaminating the environment.

Additionally, the use of the Enviro Unit system reduces the total number of vessel transports to shore
and mitigating the risks involved in transportation. An improvement in Quality, Health, Safety, and
Environmental (QHSE) has a positive impact on operational efficiency

 Cost Reduction Mechanisms:

- Boat transportation
- Boat Cleaning
- Land Transportation
- Treatment fees / Landfill

 Environmental Benefits:
- Treatment of the fluid at rig site gives full traceability of the waste stream
- Less transportation and thermal treatment
- No leaching at landfill disposal sites.
 QHSE
- Large reduction of lifting operations, offshore and onshore associated with SDCB’s.
Considering waste fluid was reduced from 829 m3 (5206 bbls) to 50 m3 (314 bbls) after
treatment it equals approx. 23 SDCB’s. A SDCB will typically go through between 14-16 lifts
from being picked up from the WM facility, sent offshore before being returned to the WM table,
total estimated SDCB lifts are shown in the table below:

Without Rig Treatment with

Site Treatment Enviro Unit (314 % Change
Description
(5206 bbls) bbls)

SINGLE SDCB
14 - 16 14 - 16
lift
TOTAL SDCB 1500%
16 x 372 = 5952 16 x 23 = 368
lifts decrease

ENVIRO UNIT COST/COST REDUCTION/ELIMINATION

Enviro Unit Cost
Cost Breakdown for the rental of the Enviro Unit as below:
Days on Hire – 188 days
Total rental cost of unit - $188,000.00
Engineering cost - $80,802.40

Total cost - $ 268,802.40

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SOLUTIONS Waste Management Enviro Unit Performance

Cost Reduction
Cost of Mud per bbls - $ 400.00
Mud Recovered – 207 bbls
TOTAL Cost of Mud Recovered - $82,800.00

Elimination
Rental of SDCB’s?
Cost of fluid treatment onshore?
Cost of fluid treatment onshore?
Use of vessel tanks – unknown cost
Vessel tank cleaning – unknown cost
Potential logistic issues with vessel or SDCB’s
- 5206 bbls = 372 SDCB’s
- SDCB in/out transportation time – 5 days
- 372 SDCB x 5 (days) = 1860 Rental days
- 1860 (Rental days) x $10 (daily rental cost) = $18,600.00

Note: It is difficult for Azeri M-I to put financial costs against the points mentioned above, however there
are costs associated with the various steps that have been potentially eliminated from the operation.

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