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VOLUME 04 ISSUE 06-SEPTEMBER 2011
Theres a New Energy at Global.
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The Global 1200
ISSN 1757-2134 September 2011 Volume 04 Issue 06
Copyright

Palladian Publications Ltd 2011. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the
copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the
publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK.
On this months cover >>
Oilfield Technology is audited by the Audit Bureau
of Circulations (ABC). An audit certificate is
available on request from our sales department.
contents
| 44 | MASS-PRODUCED MACHINERY
Peter Sharpe, Shell, The Netherlands, discusses a joint venture project
with CNPC to develop an assembly line process for drilling wells.
| 47 | COST-EFFECTIVE CONNECTIONS
Bruno Lefevre and Mazhar Mahmood, VAM Drilling, USA, explain the
benefits of selecting appropriate drill strings to help drilling contractors
achieve target objectives with maximum safety margins in a
cost-effective manner.
| 49 | NO MORE CRACKING UNDER PRESSURE
Finite Element Analysis helps the industry develop and qualify
equipment for extreme environments, in this case heat. Haining Pan,
formerly of Schlumberger, Jose Caridad, Schlumberger, Singapore;
and Shauna Noonan, ConocoPhillips, USA, explain.
| 52 | LIGHTENING THE LOAD
Phil Head, Artificial Lift Company Ltd, UK, reveals how rigless ESPs
are the way forward for artificial lift technology.
| 57 | NUCLEAR SOLUTIONS
Terry Graham, Zircotec, UK, demonstrates how a growing range of
coating technologies, developed by the UKs nuclear industry, are
now providing solutions including resistance to heat, wear and even
electrical insulation in oilfield applications.
| 60 | MOORING SOLUTIONS THAT GIVE MORE
Wolfgang Wandl, Viking Moorings, Norway, shows the importance of
mooring solutions in exploration drilling.
| 65 | FPSO MOORING IN MARGINAL FIELDS
Doug Davidson, Mooring Systems Ltd, UK, explains how Tri-Catenary
mooring systems are proving to be a flexible and effective
station-keeping and production system.
| 68 | KILOBYTE-SIZED COMMUNICATION
Sandy Johnson, SatCom Global, UK, considers optimising
communication for remote operations.
| 03 | EDITORIAL COMMENT
| 05 | WORLD NEWS
| 10 | BRAZILS BLACK GOLD
Arthur Ramos, Rodrigo Souza, Hege Nordahl and Adrian del Maestro,
Booz & Co., Brazil and the UK, explain how to create a win-win local
content strategy in Brazil.
| 16 | WASHED CLEAN
Ivan Cooper, Golder Associates Inc., USA, describes a united
approach to water management in shale gas.
| 21 | SECURING INSTITUTIONAL KNOWLEDGE
David Muse, P2 Energy Solutions, USA, covers the importance
of institutionalising tacit knowledge and providing the contextual
relevance that enables a consistent, predictable operational
environment.
| 25 | ADVANCING SEISMIC RESEARCH WITH MODULAR
FRAMEWORKS
Felix Balderas, Geophysical Insights, USA, discusses how
geoscientists can utilise the newest technology to solve todays E&P
challenges.
| 29 | TURNING CHANCE INTO PROFIT
Luc Sandjivy, Seisquare, France, suggests how to deal with
uncertainty in reservoir management.
| 33 | CROSS-CHECKING THE CHECKLIST
Bill OGrady, Athens Group, USA, discusses managing risks as high
specification offshore assets are being drilled in deeper waters and
harsher environments.
| 36 | SEEING IN THE DARK
Ron Boyd, Atlas Copco Secoroc LLC, USA, discusses how new
technology could put an end to drilling blind.
| 41 | EXTERNAL CASING PATCH EXECUTIONS
Andy Gorrara, READ Well Services, Norway, demonstrates how the
application of an external casing patch in one of Statoils North Sea
fields has reinstated gas tight seals on several wells, ensuring well
integrity fit for field life.
This image shows one of the many rigs currently drilling
multi well configurations where precision wellbore
placement technologies like MagTraC are required.
James Little
Managing Editor
Contact Information >>
Palladian Publications Ltd,
15 South Street, Farnham, Surrey GU9 7QU, UK
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POSTMASTER: Send address corrections to Oileld Technology c/o Mercury International Ltd, 365 Blair Road, Avenel, NJ 07001.
comment

Managing Editor: James Little
james.little@oileldtechnology.com
Deputy Editor: Anna Scordos
anna.scordos@oileldtechnology.com
Editorial Assistant: Cecilia Rehn
cecilia.rehn@oileldtechnology.com
Advertisement Director: Rod Hardy
rod.hardy@oileldtechnology.com
Advertisement Manager: Ben Macleod
ben.macleod@oileldtechnology.com
Business Development Manager: Chris Lethbridge
chris.lethbridge@oileldtechnology.com
Production: Peter Grinham
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Website Editor: Anna Scordos
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Reprints / Subscriptions: Victoria McConnell
victoria.mcconnell@oileldtechnology.com
Publisher: Nigel Hardy
B
razils black gold, is this months keynote article by
consultants Booz & Co. Focussing on Brazils oil
and gas industry, the article highlights the tremendous
growth potential offered by the nations substantial pre-salt
reservoirs both in terms of nancial reward and long-term
industrial development. This excellent article, which I
encourage you to read, begins on page 10 and is itself a
prelude to the forthcoming OTC Brasil Conference and
Exhibition running from 4 6 October 2011 in Rio de Janiero.
OTC Brasil is a brand new event put together by
the Offshore Technology Conference (OTC), and is the
organisations rst to be held outside Houston, USA.
That it has hit upon a rich vein is without question, with
292 conrmed exhibitors at the last count, from around the
globe, occupying over 14 000 m
2
of exhibition space, it is
clearly a testament to the huge international interest the
Brazilian oil and gas industry is currently generating. Please
note that Palladian Publications Ltd, will be in attendance at
the show and our regular oil and gas related publications,
Oileld Technology, World Pipelines and LNG Industry will
be widely distributed amongst visitors and delegates in
addition to our annual Portuguese language publication,
World Pipelines and Oileld Technology Brasil 2011,
produced specially for this and for the Rio Oil and Gas Expo &
Conference in Rio in mid-September.
So why the hype and why is the country attracting such
interest? Essentially Brazil is a rarity in the current oil and
gas arena. In the rst instance, there are proven hydrocarbon
reserves in a politically stable environment, in close proximity
to major markets. This is very attractive to oil and gas majors
who are increasingly being frustrated by a lack of access to
new reserves by national oil companies (NOCs). Secondly,
with the oil and gas trapped beneath approximately 7000 m
of sea water, rock and salt, the technical challenges in
bringing these hydrocarbons to the surface are immense.
Brazils National Petroleum Agency (ANP) and Petrobras
and its partners, actively require outside assistance in the
form of technology and oileld services. On the face of
it, it would appear the perfect marriage for all concerned.
US President Obama recently summed up this sentiment
during a visit to Brazil in May, We want to work with you. We
want to help with technology and support to develop these oil
reserves safely, and when youre ready to start selling, we want
to be one of your best customers.
With an estimated 100 billion bbls of oil in pre-salt
reservoirs at the base of the Campos and Santos basins
alone and with substantial further reserves in the Carioca,
Guara, Cernambi, Parati, Caraba and Lara elds, Brazils
over-riding priority has been to safeguard these extremely
valuable and extensive reserves. So it was no surprise
that as this issue went to press, it was reported that Brazil
has formerly announced plans to reclaim a number of key
exploration blocks that had been won in 2007 by companies
such as ENI, Repsol, ONGC and the then Norsk Hydro shortly
before Petrobras discovery of the rst subsalt reserves in the
Tupi prospect. These blocks, which are now known to hold
substantially more hydrocarbons than originally thought, will
be returned to the Brazilian Government and re-auctioned
at a future date once an agreement has been reached on
how royalties from oil production will be distributed between
Brazilian states.
Clearly there is still much to play for within the Brazilian
oil and gas sector ensuring that the inaugural OTC Brasil
will be a fascinating forum for discussion and a benecial
addition to the calendar of key international exhibitions and
conferences.
O T

Stay inside
the window.
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Digital touch screen interfaces located in the drillers cabin and rig
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During the underbalanced drilling of a series of laterals, the system
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surface pressure of 350 psi during connections. As a result,
the operator cut drilling time by 10 days, saving $1m.
www.miswaco.slb.com/LPAC *Mark of M-I L.L.C
world news
05
OILFIELD TECHNOLOGY
September 2011
inbrief
Ukraine recently opened shale gas
development to Western companies,
assigning its first exploration contract
to the Anglo-Dutch firm Shell in a
deal worth up to US$ 800 million
(e 555 million).
In case of successful exploration
work and the start of intense project
development, Shells total investment
under the agreement may come to
US$ 800 million, the state-owned
Ukrgazvydobuvannya gas exploration
company said.
With estimated reserves up to
1.5 trillion m
3
, Ukraine is widely believed
by industry analysts to be one of
Europes largest holders of the new
energy resource.
However, the country lacks the
necessary fracking technology and
continues to rely heavily on gas imports
from its eastern neighbour Russia.
USA
A study by the University of Kansas has
found that injecting a greenhouse gas
into older oilfields could squeeze out
millions more bbls of crude, according
to the US Department of Energy. The
DOE said the results mean as much as
500 million bbls of crude could some
day be recovered from Kansas fields.
POLAND
According to the US DOE, Poland has
some 3700 billion m
3
of recoverable
shale gas and a pressing energy
security reason for extracting them.
Currently, Poland imports around 70% of
its annual gas requirement from Russia.
Meanwhile, a future export market could
be created in light of Germanys decision
to phase out nuclear power plants by
2022; raising demand for gas.
BRAZIL
Brazils development of recently
discovered oilfields could spur a hiring
boom in the sector, adding more
than 2 million jobs to Latin Americas
largest economy by 2020. Currently,
the countrys oil industry supports
approximately 420 000 jobs. This figure
could rise to as much as 2.5 million jobs
by 2020.
COLOMBIA
Colombias foreign minister recently said
petroleum agencies from the Andean
nation and Jamaica are conducting
studies with a view to possible joint
offshore oil exploration in their shared
maritime area. The Colombian foreign
minister said relations with Jamaica are
extremely important because the two
nations share an extensive maritime
border and something very unusual in
international law, which is a common
regime area of almost 15 000 km
2
in
the Caribbean Sea.
// PetroChina //
Invests in Iran
// Shell // First shale gas contract in Ukraine
PetroChina is reportedly to invest
US$ 8.4 billion to develop the Azadegan
oilfield, 80 km west of Ahvaz, close to
the Iraq border. Total investment in the
project is US$ 12 billion.
Iran Oil Engineering General Manager
Alireza Zeiqami says PetroChina will
begin first-phase development of the
Azadegan oilfield this year. Its 2011 target
is to drill 185 wells.
The oilfield has reserves of
3.2 billion bbls of oil, including
recoverable reserves of 5.3 billion bbls.
Once construction is complete, crude
oil capacity is expected to reach
600 000 bpd.
Iran Oil Engineering and
Tokyo-based Inpex Corp. will
respectively provide the remaining 20%
and 10% of the total investment.
The agreement will see Shell
drill up to 1000 exploration wells in
northeastern Ukraine, each of which
will run up to 6 km (3.7 miles) below
ground.
Signing a broad agreement
covering both oil and gas
exploration, Shell launched
its operations in Ukraine in
August 2006. The company
has previously operated by
holding 50/50 stakes in local
joint operations ventures, without
acquiring rights to the fields
themselves.
Other Western majors including
Chevron and ExxonMobil have
also expressed an interest in the
countrys shale projects, and the
Anglo-Russian joint venture TNK-BP
signed a preliminary agreement with
the government in October.

Statoil Petroleum AS has encountered
a marginal discovery near the Sleipner
East field in the Norwegian North Sea.
The well situated in the Statoil
Petroleum operated production license
(PL) 569 was drilled 16 km northeast
of the Sleipner field. Ocean Vanguard
drilled the well and the licensees will
continue to assess the discovery
together with other nearby discoveries.
According to the preliminary
approximation, the discovery in PL 50
holds between 0.5 and 1.5 million m
3
of
recoverable oil equivalent.
Statoil has been facing production
glitches and is continuously shifting its
focus to the still unexplored areas of
the Norwegian Sea, projecting an equity
production of above 2.5 million bbls/y
by 2020.
// Statoil //
Marginal discovery
world news
06
OILFIELD TECHNOLOGY

September 2011
diarydates
25 28 September
MEOS 2011
Bahrain
E: jwebster@oesallworld.com
www.meos2011.com
4 6 October
OTC Brazil
Rio de Janeiro, Brazil
E: info@OTCBrasil.org
www.otcbrasil.org
30 October 2 November
SPE ATCE
Denver, USA
E: service@spe.org
www.spe.org/atce
7 11 November
World Shale Gas
Houston, USA
E: garanda@thecwcgroup.com
www.worldshalegas.org
4 8 December
20
th
World Petroleum Congress
Doha, Qatar
E: info@20wpc.com
www.20wpc.com
15 February 2012
MTB Oil & Gas Forum
Dubai, UAE
E: marketing@coplandevents.com
www.coplandevents.com
22 May 2012
MOC 2012
Alexandria, Egypt
E: conference@moc-egypt.com
www.moc-egypt.com
// ExxonMobil and OAO Rosneft // New alliance
Scottish drilling giant, KCA
DEUTAG, is expected to unveil
its first contract worth up to
US$ 23 million (14 million) with
New York-listed Marathon Oil.
KCA, which was founded more
than 100 years ago, has grown
to become one of the worlds
Following the official termination of
the BP and OAO Rosneft alliance,
ExxonMobil Corp. answered the
call to become Russias largest oil
producers new partner.
The two companies have
teamed up to explore not only
Arctic reserves, but also the
Black Sea, the Gulf of Mexico and
onshore plays in Texas.
A total of US$ 3.2 billion
will be invested by ExxonMobil
and Rosneft into initial offshore
exploration in the Arctic Ocean
and Black Sea. The deal between
the two companies could result
in as much as US$ 500 billion
of investments in infrastructure,
exploration and production.
Access to new resources is
the life blood of oil companies,
says Fadel Gheit, an analyst at
// KCA DEUTAG // Marathon contract
A consortium comprising of
Beirut-based contracting firm
Consolidated Contractors
Company (CCC), along with
the UK-based energy firms
Cairn Energy PLC and Cove
Energy, has been announced to
bid for the rights to drill for oil and
gas off the coast of Lebanon.
Cairn indicated that Lebanons
offshore waters provide an
// British-Lebanese consortium // Drilling rights bid
Oppenheimer & Co. in New York.
Russia is one of the largest resources
thats still available. Its like Exxon is
now dating the girlfriend BP had a few
months ago.
Furthermore, this alliance could
see Rosneft as the first major
Russian oil company to develop US
deposits. The companys capabilities
in both deepwater and shale oil
operations, with which it is relatively
inexperienced, will be tested.
ExxonMobil CEO Rex Tillerson
says, I take it as a strong statement
of Russian intentions to create
competitive conditions to attract
investments.
ExxonMobil and Rosnefts
preliminary exploration project is
a US$ 1 billion venture in Russias
Black Sea signed on 27 January
earlier this year.
largest drilling contractors. This
move pushes the firm into the
unconventional oil and gas sector.
The multi-million deal with
Marathon is for shale gas drilling in
Poland, marking the Aberdeen-based
companys first venture into the
eastern European country.
opportunity for gas drilling, and
minimised the impact of the maritime
border dispute between Israel and
Lebanon on offshore drilling operations
and prospects.
The United States Geological
Survey (USGS) has estimated that the
Levant Basin Province has a mean of
1.7 billion bbls of recoverable oil and a
mean of 122 trillion ft
3
of recoverable
gas.
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EMPOWERED BY TECHNOLOGY
world news
08
OILFIELD TECHNOLOGY

September 2011
// QGEP Participacoes // Exploration stakes // Shell // Shale gas
exploration in South Africa
Royal Dutch Shell is facing tough opposition
from farmers and environmental supporters
as it has announced proposals to invest
US$ 200 million in shale gas exploration in
South Africa.
The company plans to explore for shale
gas in the semi-arid Karoo region, which is
currently under a moratorium on oil and gas
exploration licenses introduced in April over
ecological concerns.
Jan Willem Eggink, General Manager of
upstream ventures for Shells South African
unit, said he believed South Africa could have
at least half of an estimated 485 trillion ft
2

of trapped shale gas, enough to be
commercially viable and allow the country to
become energy self-sufficient for decades to
come.
Currently, about 90% of the nations
electricity is supplied by coal, a rate that is
hampering South Africas efforts to meet the
UNs emissions reduction targets by 2020.
Eggink said that If exploration efforts
prove that shale contains commercially
producible gas volumes, then South Africa
could see production from this source within
a decade. This could help the country plug
a chronic power shortage and reduce its
dependence on coal-fired power plants in
favour of a cleaner energy source.
Controversy over the plans centres on
the potential impact of hydraulic fracturing.
Farmers and conservationists fear the
fracking will adversely impact the
sparsely-populated region known for its
rugged scenery and rare wildlife.
Shell has also vowed to not compete
with farmers for scarce water resources but
instead truck in water initially before trying
to pipe it by using the brackish water found
deep underground.
Eggink added that Shell would also
consider paying landowners for access to
their land, although no compensation policy
was finalised yet.
// Eni SpA //
Reopens Libyan link
Marking the first major resumption
of a foreign-led petroleum operation
following the ousting of Colonel
Moammar Gadhafi, the Italian
government has recently confirmed it
expects a key natural gas import facility
from Libya operated by Eni SpA to
reopen by 15 October.
As 10% of Italys gas originates in
Libya, the resumption of Greenstream
from the Wafa field has been classed
as critical. The field, which was never
shut during the Libyan civil upheaval this
year, is jointly operated by Eni and the
Libyan National Oil Co.
Libyan officials have said the
country could reach 300 000 bpd in the
next couple of months. Other Western
oil companies including Repsol YPF SA
and German Wintershall AG, have sent
representatives to assess conditions,
with hopes to resume production before
the end of the year.
According to the British Geological
Survey, Britain has 150 billion m
3
of
recoverable shale resources. The
US DOE is more optimistic and places
the countrys shale resources at
560 billion m
3
.
Equally optimistic is Cuadrilla
Resources, a UK-based company with
a licence to explore for shale gas across
437 square miles of Lancashire.
While declining to give any figures,
Mark Miller, Chief Executive of Cuadrilla,
said: Theyre exceeding expectations.
The company will disclose its first
estimate for the amount of shale gas
inside its license area on 21 September.
Environmentalists are worried about
fracking being linked to earthquakes
and pollution. The government is
more lukewarm: it wants to encourage
nuclear power generation and
renewable energy, not a new source of
fossil fuel.
// Cuadrilla //
Optimistic in the UK
QGEP Participacoes, the oil
and natural gas arm of Brazils
construction giant Queiroz Galvao,
has signed a contract to buy a stake
in an offshore exploration block
from the local unit of oil major
Royal Dutch Shell PLC.
The company will purchase a
30% stake in the BS-4 block in
the Santos Basin, off the coasts
of Rio de Janeiro and So Paulo.
The block also includes federal oil
company Petroleo Brasileiro and
the local unit of Chevron Corp.
Shell Brazil is expected to retain a
10% stake in the block.
The purchase price was not
disclosed for the deal, and it is still
subject to approval by Shells
partners in the block, as well as
local oil regulators.
Chief Executive Jose Augusto
Fernandes has previously said that
the company wanted to use the
nearly US$ 1 billion in cash raised
in an initial public offering earlier
this year to grow quickly.
Fernandes added that
the company was extremely
interested in the Brazilian National
Petroleum Agencys 11
th
round
auction of exploration concessions,
although Mines and Energy Minister
Edison Lobao said that the auction
would likely be pushed back to
2012.
E
5
0
0
0
1
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E
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Brazils
Arthur Ramos, Rodrigo Sousa, Hege Nordahl and
Adrian del Maestro, Booz & Co., Brazil and the UK, explain
how to create a win-win local content strategy in Brazil.
BLACK GOLD
10
T
he discovery of large pre-salt reserves off the coast of Brazil
will soon catapult the country into the ranks of the worlds
major oil producers. Brazil, which already has an established
oil industry, understands that the potential long-term oil revenue
growth needs to be channelled in ways that will promote broader
domestic industrial growth.
Oil-producing countries that have been successful in building
a strong local supply chain have done so by developing targeted
industrial policies with the incentives and requirements needed
to attract international players and strengthen their domestic
infrastructure and capabilities.
Brazil is following this route as well, opting for a very
straightforward policy that uses its concession-granting process
to reward bidders that commit to high levels of locally-sourced
products and services. Some industry operators understandably
might view these local content commitments as a hurdle to
overcome or a necessary evil. However, taking a more positive and
proactive approach to working within the requirements can help
ensure that an operator will play a central and protable role in this
budding and very promising market.
Boosting the stakes
Existing large reserves and the governments push to open the
sector to competition have driven steady growth in Brazils oil
industry over the past two decades, allowing the country to fully
shed its dependence on foreign oil in 2006. However, the recent
discovery of vast pre-salt offshore deposits has been a true game
changer, one that will more than double the countrys oil production
from 2.37 million bpd in 2010 to an estimated 5.63 million bpd
by 2020.
This tremendous opportunity has brought with it a signicant
challenge for Brazils policy makers: how best to leverage the
impact of greatly expanding offshore development to create a
strong, competitive supply chain in Brazil. The sudden arrival of
oil wealth in some developing countries has brought with it an
oil curse, in the form of rapid exchange rate appreciation, poor
governance in reinvesting oil revenues and political inghting.
However, Brazil, with its booming economy, political stability
and recent history of successful industry reforms, is in a better
position to avoid these pitfalls and join the small group of countries
that have successfully transformed revenues from resource wealth
into a strong, internationally competitive domestic supplier base. If
Brazil is able to channel the investments it needs to make in order
to develop a larger, stronger oil industry, into building its supply
chain resources, the benets to its economy could be enormous.
The sectors supply chain will not only serve the countrys offshore
development needs but also expand its overall employment and
exports.
A number of countries, most notably Norway and the UK,
have successfully employed effective local content policies to
11
12
OILFIELD TECHNOLOGY
September 2011
develop strong local supply chains, focused on the exploration and
production of their offshore reserves. Both countries were blessed
by the discovery of signicant petroleum reserves in the North Sea
in the late 1960s, but their economic situations at the time led
them to take different paths to exploiting their newfound resources.
Norways solid macroeconomic standing allowed it to focus on
long-term goals and activities, such as developing a local economic
cluster cantered on high technology and innovation. By contrast,
the UK was encumbered by a balance of payments crisis and high
unemployment; factors that led it to focus on accelerating exploration
and production by attracting established operators.
Despite their differences, Norway and the UK both adopted
specic mechanisms and policies aimed at creating a globally
competitive local industry focused on much more than domestic
sales. Local content policies succeeded in those markets because
they were used as a means of building a strong and competitive
industry supply chain, and not as an end, remaining in place for too
long and eventually thwarting competition.
Challenges of going local
Looking to follow such leading examples, Brazil has designed its
concession-granting policy with incentives for bidders to commit
to a substantial percentage of local content. The aim is to ensure
that successful bidders will become partners and participants in
building a domestic supply chain that will leverage the benets of
oil industry growth.
Operators preparing to work with these local content
commitments must understand that any efforts aimed at gaming
the system will not pass muster. Booz & Co.s extensive work in
Brazils oil sector has revealed a deep commitment on the part
of government leaders there to build a strong, competitive local
supply chain. There should be no reason to doubt now that local
content commitments made by operators in their bids and written
into contracts will be enforced.
That said, good faith attempts to abide by local content
requirements will have to account for the difcult challenge of
working with a domestic supply chain that is not fully developed.
One key component of the challenge that operators face
in delivering on their local content commitments is the price
differential between local and international suppliers, particularly
when it comes to procuring machinery and raw materials (Figure 1).
In most cases, locally manufactured equipment is priced at a
premium due to suppliers lack of scale and cost-saving technology
and processes. At the same time, Brazils economy is booming,
Figure 1. Seawater Lifting Pump: composition of cost difference. (Source: Field research; ABIMAQ; interviews; Booz & Co. analysis.)
OILFIELD TECHNOLOGY
September 2011
13
outpacing the growth of the global economy, so other high-growth
industries such as mining are competing for the same resources
in its local markets. These resources include labour: a shortage of
skilled workers is developing in Brazil, affecting suppliers ability
to add the requisite talent to meet the supply chain needs of a
growing offshore oil industry.
The recent nature of the ultra-deep, pre-salt discoveries and
the technical difculty that development will pose may also make
it more challenging to assess the prot potential. Suppliers will
likely nd it easier to invest to serve more established markets
where they will have greater visibility into projected revenues
and where prots can be realised in a shorter time than the
seven to 10 year horizon the offshore oil industry typically requires
in developing reserves.
Guidelines
Despite these obstacles, the opportunity in Brazil created by
the recent discoveries is tough for any operator to ignore. Given
growing concern in the world about the socio-political stability
in many energy-supplying countries, Brazil offers an attractive
combination of new supplies and a stable democracy.
To reap the reward, operators will need to develop a
comprehensive strategy that will assist Brazil in developing
a strong and competitive supply chain. Establishing a clear
understanding of the local content requirements and creating a
plan to work within their constraints, will help operators turn the
challenge into an advantage as they establish a competitive edge
in this high potential market.
Booz & Co.s experiences working with operators in the global
oil industry has enabled the company to highlight ve major
guidelines for successfully managing local content requirements.
Get up to speed on the local supply chain
Operators that are compelled to employ local resources must
rst assess the strengths and weaknesses of the domestic
supply chain. Through such a study, they can determine the
capabilities of each segment and identify specic areas where
local suppliers have the greatest potential to become competitive
in the international markets. In Brazils case, electric systems
and subsea equipment manufacturing may provide an attractive
starting point for this effort. Once these pockets of strength are
identied, operators can adopt a long-term strategy to partner
with selected local suppliers and demand the right incentives from
government for working with them.
Promote co-ordination in procurement
Petrobras is still the force majeure in Brazils oil sector it was
designated the sole operator of the pre-salt reserves but a
1998 law that ended the companys monopoly is opening up the
industry to competition. In the coming decade, other operators
will see their investments grow to approximately 20% of the
total. Operators can achieve scale and win more favourable
terms from local suppliers if they can form a united front
in articulating the benets to suppliers of diversifying their
relationships. In some cases, local suppliers may be willing to
invest in and develop their non-Petrobras operations; in others,
the allure of a united block of operators not already served
will help attract international suppliers to the Brazilian market.
Operators can supplement this strategy by identifying suppliers
with needed technological or manufacturing expertise and
offering incentives for them to invest in Brazil.
Review make versus buy policies
For the most part, the petroleum industry is a case study in effective
outsourcing. But in some developing markets such as Brazil, it may
make more sense to in source parts of the supply chain, particularly
in the case where key equipment or services are not readily available.
In these instances, an operator may be better off actively participating
in the local supply chain in the short-term. For example, one can take
an equity stake in a local company for the near-term and then sell off
the operations to local investors when the company is mature and
competitive.
Partner with existing players to promote the industrys growth
Petrobras is in a unique position in Brazil. Its ownership is split
roughly in half between the government and private investors,
so the company wears two hats. It needs to maximise prots for
its shareholders while living up to its responsibility to the public
by acting in ways that further public policy goals. As the primary
developer of Brazils offshore reserves, Petrobras faces the same
supply chain issues as other operators, including the mandate to
participate in building a strong domestic supply chain, and therefore
faces the same challenges labour shortages, price disparities,
infrastructure shortcomings. This positions the company as a
natural ally for operators looking to raise issues with the
government or support commonly benecial industry-related
policies.
Foster an open dialogue with policy makers and regulators
A commitment to embrace local content requirements as a positive
long-term strategic move, aligns industry operators with the needs
and wants of Brazils policy makers and regulators and that should
ease the development of an open and constructive relationship. One
crucial way operators can sustain and strengthen this relationship
is by working together to establish the parameters for success.
Publicising industry benchmarks will help policy makers quantify
the gap between local conditions and international standards,
so they can develop the policy mechanisms necessary to close
it. For example, they will want to know if a piece of equipment
manufactured in Brazil is twice as expensive as one available on
the international market because that situation hurts the countrys
competitiveness. By the same token, operators should work with
government ofcials to develop a structured learning curve for
complying with local content regulations so that they have enough
time to develop the requisite in-market capabilities and steer clear
of premature penalties.
Summary
Certainly, local content commitments present challenges to oil
industry operators. However, if operators adopt a proactive and
co-operative approach to building a local supply chain in Brazil, they
will set themselves up to create value and strategic advantage in an
attractive, high growth market. Not only that, but they will help all
stakeholders independent operators, Petrobras, local suppliers,
government ofcials, and the greater public share in the benets
that a robust, stable, and internationally competitive domestic supply
chain will bring.
O T

Note
About the authors: Arthur Ramos, Partner, and Rodrigo Sousa,
Senior Associate, are based in Brazil. Hege Nordahl, Principal, and
Adrian del Maestro, Principal, are based in the UK.
Founded in 1914 by Edwin Booz, Booz & Co. is a global management
consultancy working with businesses, governments and organisations.
W
ater impacts are becoming one of the biggest issues
facing continued progress in shale gas development in
North America. This article will consider the impacts of the
water issue, review what is being done, and look at a possible way to
manage the situation. While the content focuses on activities in the
Marcellus Shale in the Commonwealth of Pennsylvania, many of the
principles are likely to apply to shale gas activities elsewhere in the
world.
Water supply issues
First, consider the question of water supply. The ability to produce
natural gas from deep shale formations, such as the Marcellus Shale,
involves drilling to a productive zone several thousand feet (up to
3000 m) below the surface, then often kicking off to a gentle bend
to the horizontal for an additional several thousand ft of horizontal
drilling, followed by hydraulic fracturing of shale rock formations to
extract natural gas.
This is an unconventional production type, dened in a
National Petroleum Council working document as Natural gas
that cannot be produced at economic ow rates nor in economic
volumes unless the well is stimulated by a large hydraulic
fracture treatment, a horizontal wellbore, or by using multilateral
wellbores or some other technique to expose more of the reservoir
to the wellbore.
This unconventional procedure enables the extraction of gas
from the formation. Fracking involves the high pressure injection
of 2 5 million gal. (7500 19 000 m
3
) of water at a very high rate.
The water contains chemical additives and conductive sand or
ceramics as a proppant to keep the fractures in the formation
open and allow the ow of gas. A successful unconventional well
requires fracturing in the target formation of a vertical well, or
in the productive zone of the horizontal leg of a horizontal well.
The operation also requires the onsite management of the initial
return of 15 to 30% of the injected frac water, which is also called
Washed clean
16
owback water. Frac water will also return to the surface over a
longer period of time as produced water.
Managing the availability of source water is critical to the success
of an unconventional well. Pennsylvania is fortunate in having
more surface water resources than any other state except Alaska,
according to the Marcellus Shale Coalition. Yet even in relatively
water-rich Pennsylvania, this volume of usage has an impact on other
uses of that water, including maintenance of natural ow in streams
and rivers.
Frac water comes from a variety of sources including surface
water, groundwater, industrial wastewater, stormwater, municipal
wastewater, and the acid mine drainage (AMD) water owing from
the areas many current and closed mines, all termed fresh water. In
an increasing number of cases, operational frac water is previously
used and recycled frac water or produced water from ongoing gas
production, treated to varying degrees and blended with fresh water.
Most states require a relatively robust permit system to identify
water resources to be used in fracking, and the resulting impact
on the environment. In Pennsylvania, a well permit requires water
source approval from the Department of Environmental Protection
(DEP), and the various river systems, including the Susquehanna
River Basin Commission and the Delaware River Basin Commission,
notication to localities, and other requirements.
Generally, this water arrives at the drill site by lorry possibly
several hundred vehicle loads, each of about 4000 5000 gal.
(15 19 m
3
). This often means large numbers of heavy vehicles
travelling on roads that were designed for light rural trafc, causing
wear and tear on road surfaces. Other impacts of water-carrying
vehicles include noise, exhaust emissions and trafc congestion.
Therefore, many producers opt for a comprehensive master
water management plan identifying water sources and water
availability, including an overview of fresh water treatment and
residuals management, water treatment for reuse as fracking water or
other uses, and a water treatment residuals plan.
Ivan Cooper, Golder Associates Inc., USA, describes a
united approach to water management in shale gas.
17
18
OILFIELD TECHNOLOGY
September 2011
Impacts on other users
Many rural and small town residents and businesses in
Marcellus Shale areas are dependent on wells for their drinking
water. While many of the residential wells have not been tested for
water purity, there are persistent claims that the shale gas industry is
causing well water contamination.
These claims are made despite the fact that most rural water
wells have depths measured in hundreds of feet, and most shale
gas wells extend several thousand feet down usually with many
layers and thousands of feet of impervious rock between the fracking
activity and the water wells capture zones. To prevent leakage
of gas, frac uid or produced water into groundwater supplies,
well casing extends the full depth of the gas wells. That is why
Pennsylvania requires predrill testing of nearby wells and other water
features to establish a quality baseline before drilling commences.
This testing also serves as a liability reduction technique for drillers.
Shale gas well developers are cognisant of other concerns, including
site and forestry issues, stormwater management, air emissions,
noise and light pollution, trucking impacts, and waste management,
including the potential for managing naturally occurring radioactive
materials (NORM).
Water disposal issues
While only around 15% of the frac water is returned by ow back
over the rst week or two after a frac operation, a ow of water
continues through the life of the well. Other uids to be managed
include tophole water (water from drilling through strata containing
uncontaminated groundwater), drilling water, and water-based
drilling muds. Oil-based drilling muds are generally managed by
reusing these expensive uids at subsequent drill sites. If the frac or
produced water cannot be used in subsequent frac operations due
to the well frac schedule, then disposal may be necessary. Disposal
options include deep well injection or reclamation.
Disposal to municipal wastewater plants is not a viable option. In
May 2011, the Pennsylvania DEP asked natural gas drillers to refrain
from sending frac wastewater to water treatment plants in the state,
due to the inability of these plants to remove total dissolved solids
(TDS) and bromine. The frac and produced water may contain high
concentrations of bromides, a nontoxic salt compound that reacts
with disinfectants used by municipal treatment plants and naturally
occurring organics in streams to create brominated trihalomethanes
(THMs). Exposure and ingestion of THMs has been tied to several
types of cancer and birth defects.
Frac or produced water disposal to evaporation ponds,
common in drier climates, is not an option in the cooler and wetter
northeastern USA. However, for these waters to be disposed of
underground, they must be pumped into a well that is approved for
disposal purposes and in the Commonwealth of Pennsylvania there
are only a handful of wells approved for disposal. One reason for this
limitation is that the rock formation must be suitable for receiving
the water, and many of the formations in the state are too tight to
be used for this purpose. Many nearby states, such as Ohio and
West Virginia, have additional deep well options, but trucking water to
these more remote locations substantially increases costs.
It might be possible to use a depleted well for disposal, but many
of the older wells face integrity problems, and it would be impractical
to recondition them to be permitted for disposal.
Water disposal has become an issue for the industry to the
extent that currently, some companies are hauling their produced
water to a disposal well in neighbouring states despite high costs for
trucking and disposal.
Water treatment issues
Challenges are increasing with regards to water treatment as
well. Treatment of frac and produced water may require removal
of problematic substances. In many cases, the produced water
contains corrosive substances, biological activity, and dissolved
barium and other metals, which produce insoluble precipitates and
other substances that tend to clog the formation, reducing the ow of
natural gas.
Currently, companies involved in shale gas take a variety of
onsite and offsite approaches to water treatment, ranging from
ltering-out large solid particles to producing higher quality water by
various techniques. At times, a lease may prevent onsite frac and
produced water treatment, so the only option is offsite treatment or
disposal.
Table 1 provides an overview of the range of major treatment
options currently used, including estimated costs, with the technique
employed relying on history and company practice. These costs are
signicantly impacted by the haul distance if an offsite treatment
option is used. A limited haul distance was used in the cost
calculation, assuming a haul distance within an hours drive of a well
site for offsite treatment or disposal.
One of the challenges to water and wastewater management
is the patchwork of regulations between states, related to the
management of shale gas water sources and uses. With the
Figure 1. Frac water hauled to a well pad.
Figure 2. Frac and produced water treatment facility tests water
before processing.
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OILFIELD TECHNOLOGY
September 2011
proliferation of shale gas development in various plays around the
world, areas with less developed infrastructure and regulations are
looking to more developed programmes for guidance. Recently,
delegations from places including Poland and China have visited
Pennsylvania to learn how to manage the water impacts of shale
gas activity. In addition to state-led regulatory programmes,
the US Environmental Protection Agency (EPA) is reviewing
the regulatory climate for a broader effort to regulate frac and
produced water from gas drilling operations. EPA recently asked
26 states for information on how water and wastes are managed
under the Resource Conservation & Recovery Act (RCRA).
Currently, these wastes are exempt from RCRA regulations under
the 1988 Bentsen provision of RCRA. Some ofcials believe EPA
is heading towards regulating frac ow back water after drilling
operations are completed. The EPAs argument is that this water
may not be covered under the drilling exemption, while produced
water, drilling uids and cuttings, and other drilling and production
wastes should remain exempt. This effort may be redundant or
interfere with various existing state programmes in many western
states as well as Pennsylvania, New York, Ohio and West Virginia.
If these initiatives make their way to regulations, interference with
proposed centralised treatment facilities may occur.
Is central treatment the solution?
Water impoundment and treatment seems to be an area that can
be resolved with some kind of central organisation. Currently,
there are a limited number of centralised facilities that provide
impoundment and storage services. Energy Corporation of
America (ECA) has a number of centralised impoundments with
pipelines between well pads to avoid trucking operations. The
Pennsylvania DEP has received permit applications for at least
12 proposed treatment plants that would accept water from frac
and produced water operations.
For example, Reserved Environmental Services in
Mount Pleasant, Pennsylvania near Pittsburgh operates a
physical chemical plant to treat wastewater from shale gas,
including water-based drilling muds, frac water, and produced
water. The wastewater from various shale gas operators is
delivered as a regulated waste, treated by chemical precipitation
to remove metals and particulates, disinfected, and is returned
to operators. When the regulated waste is delivered back to
a well site, the water is blended with fresh water and reused
in fracking operations. The facility is also constructing a
15 million gal. (57 000 m
3
) impoundment to store large volumes
of water if a clients well site impoundment needs to be cleaned
or immediately emptied because of a leak, and repairs are
necessary.
A similar facility operates in Williamsport, Pennsylvania.
TerrAqua Resource Management (TARM) built an 80 000 ft
2

(7500 m
2
) facility to treat owback and produced water using
chemical and pH control processes. The TARM facility uses
96 separate tanks, each storing 21 500 gal. (81 m
3
) of water.
The tanks store each clients water separately, and the water is
never commingled. The trucks return the same but treated
water to each client. The facility obtained a special benecial
re-use permit. In each case, the solids are disposed of in
landlls. Flash evaporation facilities have recently been used in
McKean County, Pennsylvania and Taylor County, West Virginia
by Purestream Technology. The evaporation units use waste heat
from gas turbines, compressors or high efciency burners to
concentrate frac and produced water to TDS concentrations of
300 000 ppm while releasing low temperature steam. Similar units
reclaim produced and owback water using low pressure vapour
recompression technology. Mobile treatment units, by companies
such as Aquatech, are starting to appear.
Given the economic climate in much of Pennsylvania and
nearby states, and the large numbers of disused industrial
operations that have water treatment facilities that could be used
to treat shale gas process water, treatment facility creation does
not have to be a case of building everything from scratch.
With several impoundment and storage facilities, focused in
areas where shale gas activity is the greatest, it would be possible
to preserve water resources, minimise the need for disposal,
reduce water hauling along roads, and reduce costs for members
of the industry.
A co-operative approach to managing water issues by the
shale gas industry can go a long way to improving relations with
regulatory authorities, political leaders, NGOs and neighbouring
residents.
O T

Figure 3. Reserved environmental frac and produced water treatment
plant in Mount Pleasant, Pennsylvania.
Table 1. Range of major treatment options
Treatment Where? Removes
Costs
(US$/bbl)*
Issues
Deepwell
disposal
Offsite Everything
US$ 1.5
US$ 8
Cost depends
on distance
Clarification
Offsite or
onsite
Solids
US$ 1
US$ 5
May include
filtration, solids
disposal, reuse
by blending
with fresh
water
Chemical
precipitation
Offsite
centralised
treatment
Solids, Ba,
Cr, Fe
US$ .50
US$ 4
Clarification,
filtration, solids
disposal, reuse
by blending
with fresh
water
Thermal
treatment
Offsite
centralised
treatment
or portable
units onsite
Everything
US$ 4
US$ 6
Pretreatment,
reduced
pressure
evaporation/
crystallisation,
salt reuse (?),
blend water
with fresh
water
*Assumes haul distance of 1 hr or less.
I
n the words of Einstein, Information is not knowledge. Those words have never
been truer than when used to describe todays technically advanced upstream oil and
gas environment. After years of technical advancement and investment in databases,
connectivity, and functionally targeted applications, data is pervasive. What was once a
tactical investment has become a ood of data. Useful information, yes, but still lacking
the contextual relevance to address the needs of a younger, less experienced, workforce
operating in an environment more dynamic and competitive than ever. Without contextual
relevance, too much information creates chaos.
David Muse, P2 Energy Solutions, USA, covers the
importance of institutionalising tacit knowledge and
providing the contextual relevance that enables a
consistent, predictable operational environment.
SECURING
INSTITUTIONAL
KNOWLEDGE
21
22
OILFIELD TECHNOLOGY
September 2011
Experts tell us that nearly 40% of the oil and gas workforce
will turn over in the next 15 years due to retirement. Pressures
are great to harvest this knowledge before it walks out the
door. Simply having information, however, does not enable
competitive advantage. Competitive advantage comes from
what you do with that data, how you apply contextual relevance
to it, and, ultimately, how you embed organisational best
practices into day-to-day operations. This alone will help the
new generation of leaders sustain present day operations and
facilitate innovation.
To better understand how best to address this emerging
issue, it is worthwhile to understand the difference between
explicit and tacit knowledge. Explicit knowledge is data
that is captured in documents, training manuals, rules, emails
and written notes. It is easily captured and can be broadly
distributed. On the other hand, tacit knowledge is knowledge
embedded within an organisation. This is developed over
time and resides in individuals, networks and communities.
It is knowledge such as how to drive optimal release-to-drill
time at a given asset, or how to
drive co-ordination between multiple
disciplines within the context of varying
equipment, dynamic subsurface
structure, and budget constraints.
Tacit knowledge is not easily made
available in a best practice manual.
This is why tacit knowledge is critical
to retaining competitive advantage
during the emerging demographic
shift. How a company approaches
the institutionalisation of its tacit
knowledge will determine its future
competitiveness.
Of course, one approach to
retaining competitive advantage is
to simply nd more experienced
employees. This trend has grown as oil
and gas rms contractor populations
represent 50% or more of their employee base. This strategy,
however, is a stop gap measure at best. Within the inventory
of human capital, experience is becoming scarcer and its cost
is pressing traditional operating cost limits. To address this,
companies have invested in a variety of training programmes
to increase their capacity to transition new hires and close the
productivity gap. This mainly addresses the explicit knowledge
needs of an organisation, while only peripherally addressing the
interdisciplinary need to learn how to function as a collaborative
organisation. Understanding how each individual discipline
interacts with other disciplines, and how those unique activities
contribute to the ongoing operational results, is what companies
must retain.
The oil and gas industry was founded on disciplinary
excellence, specialisation and the division of labour. Excellence
in petrotechnical capabilities, followed by excellence in drilling,
pretty much guaranteed successful operational results. One
unintended consequence of this evolution was the formation of
silos within organisations, resulting in wider and deeper divisions
between disciplines. When simple systems evolve into complex
systems with many more variables, deep divisions of labour
frequently dilute productivity and work against an organisation.
The complexity of todays oil and gas operations requires a new
approach to capturing the tacit knowledge of an organisation,
an approach that enables embedding day-to-day operations to
drive contextual relevance in each discipline. This is essential
for the organisation as a whole to better understand individual
contributions and their impact on corporate performance.
One perennial example of how a single silo can affect the
entire process of a development is permitting. No one can drill
a well until they have a permit. This requires employees in land,
geology, engineering, and construction to be on standby, waiting
to drill. But those stakeholders cannot move forward with their
role in the drilling process until the permit is approved. To gain
a permit, other actions may be required such as resolution of a
surface disagreement, an environmental impact statement, or an
archaeological report.
These activities could take a year or longer before a permit
can be approved. As a result, all stakeholders involved in the
drilling stage of an individual well must be kept up to date about
the permitting status, because if a problem arises stakeholders
need to shift other wells to a higher priority, otherwise costs
Figure 2. Theory of Knowledge Creation.
1
According to this theory
developed by Kujiro Nonaka and Hirotaka Takeuchi, tacit knowledge
represents the accumulated knowledge of individuals, communities,
and collaborative systems learned over time by employees. This
knowledge, if not captured in an organisations routine operating
systems, will walk out the door as baby boomers retire in the
GreatShift Change.
Figure 1. The aging workforce.
A
N
Y
T
I
M
E



A
N
Y
W
H
E
R
E
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OILFIELD TECHNOLOGY
September 2011
balloon. This underscores the importance of having the
necessary workow in place to assist in managing the
business process, but it is even more important to provide
insight into how the company is progressing against specic
goals within that specic workow. To use another analogy,
knowing how to do something is not nearly as important as
knowing why.
Another way to consider the importance of workow
process is with shale plays, where effectively geological
risk has been replaced with execution risk. Shale plays
almost always require a manufacturing approach to drilling,
elevating the real question to, how does one drill more wells
with less resources?
One way to systemise business practices in the oil and
gas industry is to institutionalise core business processes,
leveraging a new generation of workow engines embedded
within software. When global business processes are stored
innately within software, tacit knowledge is maintained
despite interdisciplinary movement of personnel across
an organisation. This approach replicates core processes,
provides visibility for nancial control, and ultimately leads to
better, faster decision-making, without relying on individuals
to consistently execute core business processes.
Incorporating business process in software:
x Establishes a common information platform that crosses
functional disciplines.
x Synchronises core goals across an upstream
organisation.
x Provides contextual relevance linked to efficiency goals.
x Accelerates recovery of oil and gas from a reservoir by
improving well lifecycle efficiency.
The Wellcore team at P2 Energy Solutions has delivered
on this vision. By achieving a broad well lifecycle solution
that addresses the specic needs of each discipline and
the platform to enhance collaboration between operational
divisions, Wellcore provides the organisational contextual
relevance that ensures a new level of efciency in a
companys eld development cycle. From geology and
Figure 3. This example of the well lifecycle illustrates how technology solutions establish a framework for optimising workow across the entire
lifecycle of a well.
prognosis, through rig scheduling, various constituents may
not need to know specic details of another discipline, but
they all must work together on a platform to answer critical
questions, such as:
x Are we drilling the best mix of wells from the portfolio to
assure land retention while maximising cash flow, ROI, and
appropriate production and reserves growth?
x Can we translate data from such operational measures
as drill bit performance, production to hydraulic fracture
volume, and production to horizontal borehole length
into quantifiable business metrics that let us access our
performance against plan?
x Do our systems enable us to drive continuous
improvement in our drilling cycle?
x Do the systems we use embed best practices into our
routine workflow as the company evolves?
P2 has proven that solutions, such as Wellcore, enable an
entire organisation to understand each disciplines relevant
contribution to corporate objectives. More importantly,
this allows for the capture and codication of a companys
explicit knowledge through advanced workow and
translation of data into consumable, actionable information.
P2 believes future productivity will largely come from the
way an organisation collaborates, its efciency in translating
information into value, and how its engagement of all
disciplines work together to facilitate timely, well-informed
decisions.
So should one challenge Einsteins assertion that
Information is not knowledge? Yes! The sooner it is
recognised that data accumulation and traditional knowledge
management only addresses a single component of the
problem explicit knowledge, the quicker organisations will
institutionalise tacit knowledge and provide the contextual
relevance that enables a consistent, predictable operational
environment, regardless of tenure and background.
O T

Reference
1. Ikujiro, N and Hirotaka, T., The knowledge creating company:
How Japanese companies create the dynamics of innovation
(New York: Oxford University Press, 1995), p. 284.
ADVANCING SEISMIC RESEARCH
WITH MODULAR FRAMEWORKS
I
n many disciplines a greeneld project is one that lacks any constraints imposed by prior work. The analogy is to that
of construction on greeneld land where there is no need to remodel or demolish an existing structure. However, pure
greeneld projects are rare in todays interconnected world. More often one must interface with existing environments
to squeeze more value from existing data assets or add components to a process, manage new data, etc. Adding new
technologies to legacy platforms can lead to a patchwork of increasingly brittle interfaces and a burgeoning suite of features
that may not be needed by all users. Todays challenge is to dene the correct endpoints, which can join producer and
consumer components in a congurable environment.
This article highlights a strategy used to develop new seismic interpretation technology and the extensible platform that
will host the application. The platform, which is codenamed Paradise, includes an industry standard database, scientic
visualisation and reporting tools on a service-based architecture. It is the result of extensive research and technology
evaluations and development.
Geophysical Insights develops and applies advanced analytic technology for seismic interpretation. This new technology,
based on unsupervised neural networks (UNN), offers dramatic improvements in transforming and analysing very large
data sets. Over the past several years, growth in seismic data volumes has multiplied in terms of geographical area, depth
of interest, and multiple attributes. Often, a prospect is evaluated with a primary 3D survey along with ve to 25 attributes
Felix Balderas, Geophysical Insights, USA, discusses how geoscientists can
utilise the newest technology to solve todays E&P challenges.
25
26
OILFIELD TECHNOLOGY
September 2011
serving general and unique purposes. Self-organising
maps (SOM) are a type of UNN applied to interpret seismic
reection data. The SOM, as shown in Figure 1, is a powerful
cluster analysis and pattern recognition method developed by
Professor Teuvo Kohonen of Finland.
1

UNN technology is unique in that it can be used to
identify seismic anomalies through the use of multiple
seismic attributes. Supervised neural networks operate on
data that has been classied so the answer is known in
specic locations, providing reference points for calibration
purposes. With seismic data, a portion of a seismic survey
at each logged well is known. UNN however, do not require
the answer to be known in advance and therefore are
unbiased. Through the identication of these anomalies,
the presence of hydrocarbons may be revealed. This new
disruptive technology has the potential to lower the risk and
time associated with nding hydrocarbons and increases the
accuracy of estimating reserves.
The company decided to build new components
separately, then, with loosely coupled interfaces, add back
the legacy components as services. In its efforts to build a
new application for the neural network analysis of seismic
data, Geophysical Insights struggled to nd a suitable
platform that met the goals of modularity, adaptability, price
and performance. While in the process of building new
technologies to dramatically change seismic interpretation
workow, an opportunity arose for a new approach in
advancing automation, data management, interpretation and
collaboration using a modular scientic research platform
with an accessible
programming interface.
With this new
technology concept
underway, an
infrastructure was
needed to support a core
technology and make that
infrastructure available
for others. To deploy their
own core technology, they
would potentially need
databases, schemas,
data integration tools,
data loaders, visualisation
tools, licensing, installers,
hard copy, and much
more. While not everyone
would need the numerous
lower level components,
they would nd that
there is more work to be
done on the supporting
infrastructure than on the
core technology itself.
Without a platform, each
vendor would have to
undergo the long process
of gathering requirements,
developing, testing, and
evaluating numerous
frameworks, all for
something that is not their
core product. This is not
only a major distraction
from developing the core
technology, but also an
expensive endeavour
that most are not ready
Figure 1. Self-organising map (SOM) attribute clusters.
Figure 2. A software framework for hosting oil and gas software applications.
to make, and in some cases perhaps a deal breaker for the
project.
The company decided to move forward, developing a
platform for itself that would be useful for others. The basic
concepts around the chosen architecture are depicted in
Figure 2. The goal was to build an affordable, yet powerful
platform that could be used by small and large organisations
alike, for building and testing new software technologies
and shortening the time between design and deployment of
new components. Developing a platform separate from the
core component meant that it was possible to overlap the
development activities for the core component and platform.
This minimised the impact that changes in the platform had
on the science component and vice versa, thus reducing
delivery time. Similar platforms already existed but due to
their price, these were out of reach for many smaller vendors
and potential end users. Any vendor wanting to promote a
simple tool integrated on pricey platforms would nd a limited
audience based on who could afford the overall platform.
End users would probably pay for extra but perhaps unused
features. One of the companys goals was for a modular,
affordable overall platform. A vendor of a new component
can choose to license portions of the Geophysical Insights
platform as needed. A good software design practice is to
include end users early in the process, making them part of
the team. One thing that they made clear was their sensitivity
to price, particularly maintenance costs.
The new generations are more accustomed to working
with social collaboration and mobility tools. No longer can a
scientist bury himself behind a pile of literature in a dark ofce
to formulate a solution. With the changing demographics of
geoscientists entering the workforce and declining research
funds, the lag time between drawing a solution on the
white board and when it can be visualised remotely across
many workstations must be reduced.
2
These are some of the
challenges this platform tackles.
Design and architecture are all about trade-offs. One of
the earliest decision points was the fundamental question of
whether to go with open source or proprietary technology.
This decision had to be made at various levels of the
architecture, starting with the operating system, i.e. Linux
versus Microsoft or both. Arguments abound regarding the
pros and cons of open source technologies such as security,
licensing, accountability, etc. In the end, although it was felt
that Linux dominated server applications, when looking at
the potential users, the majority would be using some version
of Windows OS. This one early decision shaped much of
the future direction, such as programming languages and
development tools.
Evaluations were conducted at various architecture levels,
taking time to try out the tools. The company designed
data models and evaluated databases. For programming
languages and development platforms, C++, C# with
MS Studio IDE and Java with Eclipse IDE were evaluated
to search for mixed-language interoperability, reliability and
security. Java/Eclipse IDE did not meet all the set goals,
instead better mixed language programming support was
discovered between managed C#/.NET code and unmanaged
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28
OILFIELD TECHNOLOGY
September 2011
Fortran for some scenarios. Other scenarios required multiple
simultaneous processes.
At the GUI level, the company looked at Qt, WinForm
and WPF. It was decided to use WPF because it allows for
a richer set of UI customisation including integration of third
party GUI controls, which was also evaluated. Licensing
tools, visualisation tools and installers were also examined.
(All of this is a bit too much to discuss here in detail, but
Geophysical Insights advocates taking the time to evaluate
the suitability of the technology to the application domain.)
The company also considered standards at different
levels of the architecture. There is usually some tension
between standards and innovation, so caution was needed
about where to standardise. One component that appeared
as a good candidate for standardisation was the data model.
Data assets such as seismic and well data were among the
data that needed to be worked with, but the information
architecture also required new business objectives that were
not common to the industry. For example, the analytical
data resulting from the neural net processes. A data model
was required, which was simultaneously standard, yet
customisable. It also needed to have the potential to be used
as a master data store.
Professional Petroleum Data Model (PPDM) is a great, fully
documented, and supported master data store, which shares
a lot of common constructs with several other proprietary data
stores, and has a growing list of companies using it. PPDM
builds a platform and vendor independent, exible place to
put all the E&P data. The company actively participates in that
community, helping to dene best practices for the existing
tables while proposing changes to the model.
Research, including attendance and participation at
industry conferences and discussions with people tackling
data management issues, made it clear that the amount
of data, data types and storage requirements are growing
exponentially. The high-water marks for all metrics are
moving targets. It will be a continuing challenge to architect
for the big data used by the oil and gas business. Big data
refers to datasets that are so large they become awkward
to work with using typical data management and analysis
techniques.
3
Todays projects may include working with
petabytes of data. Anyone building a boutique solution today
will have to be prepared for rising high-water marks, and if
they depend on a platform, they should expect the platform to
be scalable for big data and extensible for new data types.
Neural networks in general, when properly applied,
are adept at handling the big data issues through multi-
dimensional analysis and parallelisation. They also provide
new analytical views on the data while automated processing
eliminates human-induced bias, enabling the scientist to
work at a higher level. Using these techniques, the scientist
can arrive at an objective decision at a fraction of the time. In
the face of a data deluge and a predicted shortage of highly
skilled professionals, automated tools can assist in achieving
the increasing productivity demands placed on people today.
The usefulness of a platform depends heavily on the
architecture. Geophysical Insights has witnessed how rigid
architectures in other software projects can become brittle
over time, causing severe delays for new enhancements or
modications. However, business cannot wait for delayed
improvements. Rigid architectures limit growth to small
incremental steps and stie the deployment of innovations.
Todays technology change rates call for a stream of new
solutions, with high-level workows including the fusion of
multi-dimensional information.
A well designed architecture allows for interoperability
with other software tools. It encompasses the exploration,
capture, storage, search, integration, and sharing of data
and analytical tools to comprehend that data, combined
with modern interfaces and visualisation in a seamless
environment.
Good guidelines for a robust architecture include
Microsofts Oil and Gas Upstream IT Reference Architecture.
Another is IBMs Smarter Petroleum Reference Architecture.
It was decided to implement the platform on Microsoft
frameworks that support a service-oriented architecture. A
framework is a body of existing source code and libraries
that can be used to avoid having to write an application from
scratch. There are numerous framework and design pattern
choices for different levels of the architecture and too many
for a review here. Object Relational Mapping is a good bridge
between the data model and the application logic and the
company also recommends N-Tiered frameworks.
Personnel who understand the business domain and the
technology must carry out the implementation otherwise
one must plan to spend extra time discussing ontology and
taxonomies. They must adhere to efcient source code
development practices. The changing work environment will
require tools and practices to deal with virtual teams, virtual
machines and remote access. The company is using a test
driven development (TDD) approach. This approach increases
a developers speed and accuracy. It keeps requirements
focused and in front of them, eliminating time spent on
unnecessary features. It also enables parallel development of
interdependent systems. In the long run, it yields dividends
by reducing maintenance and decreasing risk. Using TDD, a
developer can deliver high quality code with certainty.
Ultimately, the science has to come down to business. A
good licensing strategy is one that will maximise revenues
and allow users to buy products a la carte as opposed to
a one-size-ts-all approach. Some vendors attempt to be
creative with bundles for different levels of upgrades, but a
congurable platform allows maximum user choice among
available, even perhaps competing technologies. The market
will favour vendors that innovate and manage data and
licenses well.
Geophysical Insights neural network application
presents an opportunity to examine seismic data in ways
and means orthogonal to those of the legacy systems
today. The research platform enabled the company to use
this application as a configurable service. Making the right
choices in information and application architectures and
frameworks was the key to achieving the business objectives
of modular services. The company can now move forward
with additional science modules and tangential neural
network processes, servicing a rapidly changing landscape,
licensed to fit specific needs.
O T

References
1. Kohonen, T., Self-Organising Maps, 3
rd
ed. (2001).
2. American Geological Institute, Geoscience Currents,
www.agiweb.org/workforce/currents.html (Accessed on 29 July 2011).
3. The Professional Petroleum Data Management Association, www.ppdm.org
(Accessed on 29 July 2011).
A
t a time when oil resources are becoming scarce and more and
more costly to produce, operators are looking for better reservoir
production and recovery. Managers must derive E&P strategies that
combine protability and sustainability to make the best of the oil resources
available.
When looking at it more closely, there are two ways for optimising
reservoir management: improved technology and less uncertainty. The
technological side is well documented and discussed in all oil forums as
it has been the key factor in the past two decades for proving additional
reserves.
The producing life of entire oil basins, such as the North Sea basin
for example, has been drastically lengthened due to technological
improvements; is this not addressing the way oil reserves are dened and
computed? More information means less uncertainty, but to what extent is
this valid and at what cost?
This article explores this uncertainty and shows how properly managing
uncertainty can lead to protability and sustainability.
Turning
chance
into
profit
Luc Sandjivy, Seisquare, France,
suggests how to deal with uncertainty
in reservoir management.
29
30
OILFIELD TECHNOLOGY
September 2011
Uncertainty in the E&P sector
Oil and gas operators face uncertainty each time they make
exploration and production decisions as they never know exactly
where to nd oil or how much there will be.
Uncertainty is at the heart of the E&P business and, as a result,
E&P decision making procedures are not optimal.
Optimal decisions
Optimal decision making is a procedure that would be optimal if the
oil resource was fully visible and accessible anytime and anywhere,
which is never the case as it is is always hidden underground
and only partially discovered or sampled. This kind of optimality
denition is specic to all natural resource management sectors and
is one of their main characteristics.
In other words, if operators knew exactly where to nd oil
and how much was present, they would be able to optimise their
development and production plans as a standard industrial
cost/prot trade-off. No doubt optimality would depend on
available technology, but it would not be impacted by uncertainty.
Impact of uncertainty
Consider an example elaborated from an actual exhaustive natural
resource data set.
Suppose a company was asked to bid on the net value of
36 square blocks (size = 25), sampled by their central sample (size = 1)
only. A block is protable (positive net value) only if its average value
is above 300 (in terms of US$ thousand).
How many blocks would the company select above
US$ 300 000 average value and what is the expected protability?
Prot = (Average block value - 300) x number of selected blocks
x 25 (block size).
A straightforward answer is to select the blocks according to the
net value of their central samples. Then select 10 blocks (average
10 blocks value = US$ 472 000), and one can expect a prot
(net value) of: (472 - 300) x 10 x 25 = US$ 43 million.
Suppose the bid has been successful, and a company is
awarded the 10 blocks.
10 blocks have been recovered (average 10 blocks value =
US$ 358 000), and prot (net value) is: (358 - 300) x 10 x 25 =
US$ 14.5 million.
These gures are still protable but initial expectations have
been divided by three. This is the impact of uncertainty.
Figure 1 displays the actual block values from which it is
possible to compute the optimal selection and prot. Optimal
selection is 11 blocks; average value is US$ 382 000; prot
(net value) is US$ 22.5 million.
Notice that this optimal selection is out of reach unless there is
direct access at the actual block values. In real oil E&P cases, this is
not the case due to uncertainty.
What does this example illustrate?
Figure 2. U DO operational context.
Figure 3. The MoRe solution. Figure 4. Stochastic block model.
Figure 1. Actual block values and optimal selection.
x The expectation of a US$ 43 million
profit was simply unrealistic, and this
should have been anticipated at the
time of deciding which blocks to bid
on.
x The maximum US$ 22.5 million prot
resulting from an optimal selection of
blocks (based on actual block values)
should also have been anticipated at
the time of making decision.
x Uncertainty always leads to a loss
when compared to optimality (several
wrong blocks are always selected, and
right ones are always discarded), and
this is tricky as one can recover more
than expected (although it is always
less than in the optimal case).
Uncertainty in this eld almost always
results in loss. Operators never recover
what is expected from an oileld, due to a
lack of a direct access to the whole eld
(optimality).
Understanding uncertainty
The word chance simply expresses a
lack of knowledge at the time of decision
making. In order to turn this into prot,
it is essential to rst understand how
uncertainty works:
The U DO operational context
The U DO operational context is
summarised in Figure 2.
x When making E&P decisions,
operators (O) are facing uncertainty
(U), because the available information
about the reservoir data (D) never
matches the real reservoir (Re). In
the previous example, at the time of
bidding on the net value of the blocks,
only the value of the central sample is
available, not the actual values of the
blocks.
x To make sense and enable the
decision making process the data
(D) are fed into a model (Mo) that will
mimic and replace the actual unknown
reservoir to support the operational (O)
decision making procedure. Model:
the value of the central sample is
considered as representative of the
unknown true average value of the
surrounding block. It will replace
the unknown true block value when
selecting the valuable blocks.
x The operational decision (O) made
from the model (Mo) is applied to the
actual reservoir (Re), and because
of uncertainty (U), the observed
recovered output of the procedure
never equals the one expected from
the model (Mo). The 10 selected
blocks show an actual net value of
US$ 14 .5 million; the expected value
from the model was US$ 43 million.
The MoRe solution
Now that uncertainty has been understood,
it is evident that at the time of making an
E&P decision, the only choice left to the
operator (O) is the choice of the model (Mo)
as explained in Figure 3.
This means that in order to properly
handle uncertainty (U), it is essential to
make a decision from models (Mo) that
are properly designed to quantify it. This
is the purpose of stochastic modelling to
minimise the unknown difference between
the model and the reservoir; this is the way
to turn chance into prot.
The UDOMoRe compass
The UDOMoRe compass is a tool that
points to the relevant stochastic model
that enables one to properly address the
operational issue (the U DO context) with
consistent uncertainty quantication (the
MoRe solution).
Reverting to the previous example at
the time of bidding on the block values,
suppose a company has contacted a
stochastic expert for advice.
With the same available information
(35 sample data set), the stochastic
expert would activate the UDOMoRe
compass and suggest that if the
company were to bid immediately, with
35 sample information, it should bid from
the block model in Figure 4, and only
select 7 blocks (average 7 blocks value =
US$ 367 000). Expected prot would be:
(367 - 300) x 7 x 25 = US$ 11.7 million.
The bid is much less attractive than
before, but should the company decide
to carry on, expected recovery would be:
7 blocks (average seven blocks value =
US$ 374 000), and the prot would be:
(374 - 300) x 7 x 25 = US$ 12.95 million.
US$ 12.95 million recovered
compared to US$ 11.7 million expected
with only seven blocks, which makes
sense according to the stochastic
expert. However, the expert would have
warned the company before: the level of
condence on the block stochastic model
is quite low (+/- US$ 100 000 condence
interval around the current block estimated
value).
Oil resource management
The UDOMoRe compass can be used for
making an E&P decision. Consider the
example of implementing a new well when
delineating a new discovery.
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OILFIELD TECHNOLOGY
September 2011
The well has proved an oil discovery. The next operational issue
is to consider the gross rock volume attached and where to best
locate an additional well to prove additional reserve?
The usual way to address this E&P issue is to derive a base
case depth model from the well depth markers and the geophysical
interpretation and to compute gross rock volume above the oil
contact identied at the discovery well. As uncertainty cannot be
handled using a standard depth modelling ow chart, alternative
depth scenarios may be produced empirically.
Using a stochastic method
A similar depth base case would be produced (same velocity model
assumption) but it would also display the condence interval around
it. This is displayed in Figure 5, where uncertainty (condence
interval) is gured as a shadow covering the depth model. The
darker the shadow, the less condence a company may have in the
depth model.
And what is the impact of this uncertainty shadow on the
volumetrics and location of the next wells? The same stochastic
model leads to additional useful outputs:
GRV risk curve
The GRV risked curve explores the GRV volume distribution that
is consistent with the condence interval. It enables the reading of
probability 90 (certain) and probability 10 (uncertain) GRV gures that
will guide the decision on the eld development.
Probability map
The probability map displays the impact of uncertainty on hitting the
reservoir above the identied oil contact at the discovery well.
In bright green, areas with high probability to hit the reservoir
above contact, in dim green, areas with low probability. It
highlights the location of possible structural closure and guide the
implementation of the next delineation well.
Remaining potential map
The remaining potential map displays the areas with best
potential to prove additional reserves. Areas with high potential
to prove additional GRV are shown in bright purple. It guides the
implementation of the next delineation well by locating the best
structural locations for proving a maximum GRV.
Going stochastic?
This article has presented a UDOMoRe understanding of how E&P
uncertainty works. There is no magic behind it and no chance. Only
operational E&P decisions need to be made, using available data
that will never replace the actual hidden natural resource and the
need for a protable and sustainable production: stochastic E&P
modelling is the safest way to match these expectations.
O T

Figure 8. Remaining potential map indicating best structural location
for additional well implementation.
Figure 7. Probability map to hit the top reservoir above the oil water
contact.
Figure 5. Depth base case and attached uncertainty as a shadow.
Figure 6. Gross rock volume expectation curves above contact and
spill point.
Cross-checking
the checklist
H
ighly integrated control systems (drilling, dynamic
positioning, power management and subsea)
are an integral component of fth and sixth
generation drilling assets. These systems have the
potential to signicantly improve safety and environmental
performance while reducing nonproductive time (NPT),
but the complex software required to operate them often
introduces new risks that can diminish this potential.
Currently, the oil and gas industry addresses
complex, integrated systems risk through prescriptive,
stand-alone design, testing and integration methods.
These are not enough. In order to reduce systems risk
to acceptable levels, the industry needs to implement a
holistic, systems-orientated approach that recognises and
addresses the residual risks that accrue along the system
lifecycle.
Cross industry experience
More effective control system software quality assurance
and risk reduction processes are well established in
other industries that rely on large, one-of-a-kind systems
integration projects similar to high-specication offshore
assets (e.g. semiconductor fabrication facilities and
aerospace manufacturing plants). These industries
have implemented control system software quality
assurance and risk reduction methods that are backed by
international standards from IEEE, ISO and IEC, and go
beyond standalone, prescriptive solutions. These methods
have gained further validation through the introduction
of integrated software classing standards by classing
agencies such as the American Bureau of Shipping.
However, all of the aforementioned standards are
process-generic, not solution-specic. Depending on
the source of the standards, they include checklists
and/or procedures but they do not provide the specic
implementation methods required to help ensure the
most effective approach to control systems software
specication, development, testing, and integration for a
specic project.
For example, the new class rules for integrated
software control systems describe the requirements for
typical software development lifecycle verication and
validation activities, and acceptance testing. The class
rules are drawn from the original standards published
by the IEEE, ISO and IEC. However, while they are very
specic about the activities to be performed, none of
the rules provide guidance as to what constitutes a
Bill OGrady,
Athens Group, USA,
discusses managing
risks as high
specification offshore
assets are being drilled
in deeper waters and
harsher environments.
33
34
OILFIELD TECHNOLOGY
September 2011
good requirement verication and validation process, or a good
acceptance test. They simply require that these activities be
performed.
Reducing systems risk in the oil and gas
industry
Specicity is important in the oil and gas industry because
the systems on each high-specication asset (even supposed
sister ships) are different, and the denition of t-for-purpose is
dependent on many different criteria (e.g., where the asset will be
drilling). A systems-oriented, holistic approach recognises, from the
very beginning of a project, that all of the individual components
being developed will eventually be integrated into a complete
system. This helps ensure that each component is conceived,
specied, designed and tested as a system. This is the most
cost-effective way to reduce control systems software-related risk
on offshore assets to adequate levels.
This type of approach to quality assurance and risk reduction
starts with process-oriented standards and then incorporates
solutions-oriented practices that have been proven to
cost-effectively reduce risk on offshore oil and gas assets. This is
achieved through three steps:
1. Specification of the system use model through a
Concept of Operations (ConOps) document.
2. Contractual language that establishes clear expectations for
software systems development, validation and verification.
3. A residual risk-based approach to validation and verification
activities across the entire lifecycle.
The balance of this article describes this approach in more
detail and denes how it enables asset owners to reduce risk by
focusing on more effective early lifecycle preparation and planning,
and implementing a systems approach throughout the entire asset
lifecycle.
ConOps
The creation of a ConOps document is the rst step in a
systems-oriented, holistic approach to risk reduction. This
document denes the system that the end user
wants the vendor to build. This is an important
step, because the ConOps document governs
the entire system development, verication and
validation lifecycle. It describes how the system
will operate, from the end users perspective.
The Software Requirements Specication (SRS),
Software Design Specication (SDS) and validation
and verication test plans are all generated from
the document.
A good ConOps document should also include
a determination of integrity level (IL) for all major
software components (a concept taken from the
IEC 61508/61511 standards that cover process
and system safety). This forces the end user to
specically determine the acceptable risk levels for
each component, as well as for the target system.
Strong contractual language
The second step, implementing strong contractual
language, sets the expectations for the project
execution. Adopting holistic processes will impact
the roles and responsibilities of all stakeholders
across the project lifecycle so it is important to contractually dene
specic expectations for:
x How system requirements and design will be verified.
x How and when risks and hazards will be identified through the
FMECAs.
x Where and when system verification and validation activities
will occur.
x How and when validation test plans will be provided.
The contract should also specify that a residual risk-based
approach will be used for all verication and validation activities.
Residual risk concept
The third step is the implementation of a residual risk-based
view of validation and verication activities across the entire
asset lifecycle. Acknowledging residual risk is important because
it enables the development of specic targets and metrics for
acceptable risk levels at all points in the project lifecycle, in
addition to executable procedures and checklists. This allows
risk levels to be determined and tracked as they increase or
decrease throughout the course of the project.
Considering that the impact of residual risk shifts the
focus away from following generic test plan procedures and
checklists in order to detect defects that impact safety and NPT
at acceptance testing and commissioning. Instead, the focus
is on helping prevent those defects at the source the design,
development and integration of the system. The concept behind
this approach is illustrated in Figure 1.
During a typical project lifecycle, risk is introduced during
development phases and reduced (but not eliminated entirely)
during the validation and verication phases. The single risk
cycle shown in Figure 1 would occur many times as the project
phases progress. The residual risk from one project phase
becomes the inherited risk of the next project phase. Figure 2
provides an example of a risk scorecard.
These systemic risks build up over the lifecycle and result
in safety, environmental and NPT issues that often remain
undetected until later when they are most costly to mitigate or,
Figure 1. Residual risk concept.

Athens Group 2011.

OILFIELD TECHNOLOGY
September 2011
35
even worse, when an incident actually occurs, resulting in NPT
or a health, safety or environmental (HSE) incident.
In a recent industry survey, 100% of respondents reported
that software being delivered and tested too late in the newbuild
cycle negatively affects NPT and safety incidents. 59% of
respondents indicated that the development of software specic
risk mitigation plans early in the lifecycle presents a large
opportunity to reduce control systems software related NPT.
1
Current versus recommended process
examples
A good example of the value of this three-step approach is the
comparison of a current approach to Factory Acceptance Testing
(FAT) versus a FAT conducted using a holistic, systems-oriented
approach.
A typical drilling control system (DCS) software FAT test plan
is based on standard vendor templates that do not fully represent
the end user requirements or use cases. Instead, the test plan
typically focuses on verication that the internal software signals
reach the correct PLC register addresses. While this is a crucial
test, it should be performed as part of the internal software
engineering test plan, not a FAT. This type of testing is focused on
the DCS as an individual component test and does not meet the
objectives of a FAT (i.e., to allow the customer to validate the DCS
is performing to specied intended use, which is to control an
integrated drilling system). As such, the typical DCS FAT does not
provide adequate test coverage and does not address the risks
introduced through the integration of the equipment.
A holistic lifecycle approach that implements the three steps
would signicantly improve test coverage at FAT and would
provide residual risk metrics that help ensure successful issue
resolution, as well as execution of the later lifecycle activities such
as commissioning and site integration testing.
The ConOps document would provide a complete description
of how the user wants the DCS to operate, including the integrity
levels for each DCS software component. These descriptions
provide the basis for the types of test plans and test coverage
that will be required at all phases of the project, starting with the
FAT and continuing throughout the lifecycle. From the ConOps
document, the vendor can create a more appropriate SRS and
SDS.
A well-written contract would provide specic milestones
that all stakeholders expect to be met. In the case of the testing
activities, the contract would specify that the SRS, once created,
would be subject to end user review and approval through a
requirements validation activity. The requirements validation
activity includes verication that each requirement includes the
specic tests that would be performed to verify that requirement.
The contract would additionally require that an operational
FMECA attended by the end users (not just the vendor design
teams) be performed as part of the design verication.
With the ConOps document, SRS, requirements validation,
design verication and FMECA complete, all the elements for
a more effective FAT test plan are in place. Long before the
FAT is ever scheduled, the stakeholders dene and agree on
the requirements that will be tested, the test plan for each
requirement, and the expected test coverage.
Implementing this approach from the beginning of the project
helps ensure that, when the FAT does occur, as much risk as
possible has already been removed from the system, and the risk
that remains is at a known acceptable level.
All the ensuing lifecycle activities (e.g. site acceptance
testing, commissioning and site integration testing) gain similar
benets from the emphasis on early preparation and denition of
expectations, and the use of the residual risk approach. These
activities then become appropriate validations of operations rather
than bug hunts for errors in the control system.
A recent refurbishment and upgrade of an offshore asset
provides a practical example of using a holistic,
systems-orientated approach. At the start of the project, the
specic concept of operation for the new DCS was clearly
articulated. As a result, there was a full validation of the new DCS
Human Machine Interface (HMI) requirements and verication of
the design. During the design verication, two signicant errors
were found in the new HMI which, in turn, led to the discovery
of control software capability omissions directly related to the
HMI errors. It was determined that these errors would not have
been discovered in a typical DCS FAT or during commissioning.
In all likelihood, they would not have been found until the asset
was functional and a potentially dangerous operational condition
existed.
Summary
Todays high specication offshore assets are drilling in deeper
waters and harsher environments, and integrated control systems
on these assets are complex, dynamic and mission critical. Now
more than ever, the industry needs innovative processes that
enable drilling contractors and operators to effectively minimise
and manage the risks introduced by these complex systems. This
need can be met through the holistic, systems-based approach
outlined here.
To date, the industry has managed risk through standalone
procedures and checklists. These are not enough. Late-generation
assets must be designed, constructed, operated and maintained
using a process that focuses on the unique characteristics of
control systems. By addressing system requirements through
a ConOps document, contractually specifying systems-related
expectations, and addressing residual risk throughout the
lifecycle, asset owners and operators can effectively minimise
the risk that a safety and mission critical control system will
malfunction, leading to an equipment failure or HSE incident.
O T

Reference
1. Athens Group, The State of NPT on High-Specification Offshore Assets:
Third Annual International Benchmarking Report (2011).
Figure 2. An example of a risk scorecard.
W
hen does a technological achievement in a particular
industry deserve the adjectives game-changing or
revolutionary?
Few would argue that those words should not be used in
regard to the 25 September 1929 ight of Jimmy Doolittle of
the US Army Air Corps. In that pioneering ight, from takeoff
to landing, Doolittle used only instruments. In fact, he ew the
test aircraft from beneath a hood that completely covered his
cockpit. The safety pilot, Lt. Ben Kelsey, sitting in the front
cockpit with a clear view, did not have to intervene during the
15 min. ight.
Doolittles contribution went beyond being a fearless test
pilot. He was also the co-developer of the articial horizon,
precursor of the modern attitude indicator, which made blind
ying possible. Today we call it instrument ight; dened
as ying by reference to instruments in the ight deck, and
navigating by reference to electronic signals.
As for being a game-changer, newspapers heralded the
ight with banner headlines such as Fog Peril Overcome.
Commercial aviation began to implement the lessons learned
immediately to make air travel safer, and therefore more
protable, in inclement weather conditions. It was revolutionary.
Ron Boyd,
Atlas Copco Secoroc LLC, USA,
discusses how new technology
could put an end to
drilling blind.
36
SEEING
IN THE
DARK
And even though he would go on to win the Medal of Honour
in World War II, it is the ight in 1929 that earned him lifelong
recognition as an aviation pioneer.
Blind flying down the hole
Doolittles accomplishment might be over-simplied as
being able to know where you are, even when you cannot
see where you are. Is there an application of this principal
in the drilling industry today, one that promises to be as
revolutionary as Doolittles ight was to commercial aviation
in 1929?
Atlas Copco Secoroc

thinks that the answer is yes.

Secoroc, the Rock Drilling Tools division of Atlas Copco, began
looking for a way to give drillers eyes down the hole almost
three years ago, along with its partner, SPC Technology AB, of
Stockholm. It calls its solution EDGE.
Atlas Copcos research and development teams began
exploring technology that would take the guesswork out of deep
hole drilling. Technology that sped up a new drillers learning
curve and brought relief to experienced drillers. Even the best
drillers have to tolerate the stress of long shifts continually
guessing what is about to happen to the bit, or drill string, or
37
38
OILFIELD TECHNOLOGY
September 2011
hole, worrying over whether they could react in time to gauges
and the inherent lag of reading cuttings coming up from
hundreds, even thousands of feet from the bottom.
The development team started with the premise that each
strike of a hammer on the bottom of the hole sends a vibration
back up the drill string. They thought of it as a kind of sonar,
with unique signatures reporting the characteristics of that
particular hole at that particular moment in the drilling. These
signatures were travelling at the speed of sound through the
steel; for all intents and purposes, almost instantaneously.
The questions that the development team had to answer
were Can we capture it? Can we interpret it? The companys
partner in this endeavor, SPC Technology AB, brought some
special capabilities to the table. SPC touts itself as specialising
in software development and vibration analysis.
The Atlas Copco development team further dened
the need for something such as EDGE by pointing to the
challenges facing deep hole drillers every day, especially that
of predicting changes that take place in holes at depths of
100 m or more. When the bit encounters a new type of rock
formation that threatens to shank the bit, the driller must make
adjustments before this catastrophic failure. Or perhaps the
problem is that the hole is not being ushed properly and the
drill string is in danger of jamming. Again, intervention by the
driller is necessary to avoid expensive downtime. Maybe the
problem is a slight vibration caused by movement inside the
chuck due to insufcient feed force, which gradually reduces
cutting capacity.
When can drillers realise the problem, and when do
they correct it? Any delay in the proper response can have
expensive consequences. It is true that a veteran driller can
make assumptions regarding what is happening at the bottom
of the hole, based on experience. And some drillers do seem to
possess a sixth sense that puts them in a class all of their own.
But at best, these assumptions are educated guesses. They
parallel the history of the great seat of the pants aviators of
Doolittles day. Doolittle himself was such an aviator, yet he was
always looking for ways to be more accurate, to make ight
safer, more precise, more productive. He looked for ways in
which technology could give him eyes when he was blind.
Figure 1. EDGE detailed display.
A closer look
The EDGE Drill Monitor consists of a sensor, a data
capturing and processing unit, and a ruggedised PC
with an 18 cm display screen. It can be tted to all
types of deep hole drill rigs that use Secoroc DTH
(down-the-hole) hammers.
The sensor is mounted on the drill head or
rotation unit, which is connected by a cable to
the data capturing unit mounted on the rig. The
display PC is mounted next to the drill controls at
eye level. The process starts immediately when the
piston in the DTH hammer strikes the bit, creating
vibration. The vibration is captured, processed
and interpreted, and data is transmitted to the PC
where it is displayed on-screen, graphically and
numerically.
The spikes showing on the display can then
be interpreted as representing different in-hole
scenarios: for example, the sudden presence of a
new type of rock or geological zone. This immediate
and continuous feedback enables the driller to
optimise the drilling process from moment to moment.
EDGE in the oilfield
EDGE is aimed primarily at the oil and gas industries, where the
majority of drilling is beyond sensory feedback from the surface.
It also aims to make DTH hammer drilling feasible for more oil
and gas drilling companies.
Percussion drilling typically provides improved penetration
rates (from two to ve times higher than rotary drilling) and can
be used all the way to total depth. The bits are less expensive,
and DTH drilling produces straighter holes. Since there is less
weight in the drill-string, it is possible to drill deeper with smaller
rigs.
Traditionally, however, only a few companies use DTH
hammer drilling, because rotary drilling is easier to master,
costs less in tooling and offers fewer formation complications
for drillers at the bottom of the hole. Too, hammers and bits are
more expensive than tricone bits, and are easier to damage.
Training is also an issue. The benets of percussion drilling have
been reserved for those companies who could get and keep
drillers expert in hammer skills.
But according to Atlas Copco Secoroc, EDGE has changed
all that. Like the instruments in Jimmy Doolittles hooded
cockpit, the EDGE sensor package makes it possible to
monitor conditions at the bottom of the hole and react almost
immediately, thus saving downtime as well as excess wastage of
consumables.
Additionally, the combination of correct weight on bit (WOB)
and revolutions per minute (RPM) allows the bit to cut efciently
for every blow of the hammer piston.
Fuel economy is improved by knowing that the hammer
is always running correctly for the given conditions. Efcient
operation optimises the use of air. The engine to run the
hydraulics works less, as does the engine running the secondary
compressors or boosters.
Improved training
Todays computer literate trainees are comfortable receiving
performance information on a PC display, basing their
adjustments on it, and immediately seeing the result of their
inputs. It is not a matter of accumulating years of experience
and slowly developing the intuition to nally reach drilling
standards. Teacher to student or driller to driller, the
performance log is a clear, objective communication of what
constitutes optimal performance.
For example, in Sweden, it normally takes six to eight
months to train a driller up to standard prociency. Using
the EDGE system, Swedish customers who were part of the
test group for EDGE cut this training time dramatically. The
geothermal well drilling company SYDAB recently trained a
former truck driver to the standard for drilling prociency in
just a few weeks.
Veteran drillers can enhance
their skills as well. Even drillers
with years of experience
can get back to an optimum
penetration rate quicker after
making a connection because
they can see the sweet
spot on the monitor rather
than waiting for cuttings or
circulation indicators. Drillers
will not be counting on intuition
but on a visual near-real-time
display.
Is it a game-changer?
Testing in Sweden and the USA
was nished by the end of last
year and early this year. The
product is now commercially
available, and the rst few
customers are using the new
drill monitor.
In the eastern USA,
EDGE has been used in shale
and limestone to depths of
approximately 1130 m, and in
the middle of the country in
shale and sandstone to depths
of approximately 1000 m. In
tests, the EDGE data capture
unit was able to receive a signal
from its sensor from a depth of
over 1800 m.
Technicians in the eld say
that the system gives them
feedback on exactly what the
hammer is doing at depth, and
enables them to adjust WOB,
RPM, and other variables to
get the best penetration and to
save needless wear on bit and
hammer.
The EDGE Drill Monitor will
have to prove itself over time
to justify the labels game-
changer and revolutionary,
but it is clear that the ability to
see via sensors thousands of
feet down a hole being actively
T3 NEW MATERIAL
drilled has the potential to change the way deep hole drilling is
done.
Like the pilots of Doolittles day, todays drillers seem
perfectly willing to take advantage of the extra capabilities that
these sensors provide them. But one lesson being learned is
that company drilling procedures that ignore some or all of the
benets of new technology will not benet as greatly as they
would otherwise. Just as giving a pilot instrumentation on the
ight deck, while keeping the same old policies would result in
a 1930 airline falling behind the times, so too in 2012 with drill
monitoring technology and the oil industry.
O T

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Lucy Miller, Douglas Westwood Ltd, UK, describes the changing
focus of the LNG market towards the Asia Pacic region.
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SYRIAN SANCTIONS TIGHTENED
The EU has tightened oil sanctions on Syria after the government
started a fresh wave of crack-downs on dissent in the country.
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GE ACQUIRES CONVERTEAM FOR US$ 3.2 BILLION
GE has acquired Converteam. The two companies compliment
each other and should enhance GEs existing capabilities as well
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GULF KEYSTONE CONFIRMS DRILLING SUCCESS
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EXTERNAL CASING
PATCH EXECUTIONS
Andy Gorrara, READ Well Services, Norway, demonstrates how the application of an
external casing patch in one of Statoils North Sea fields has reinstated gas tight seals on
several wells, ensuring well integrity fit for field life.
T
he companys external casing patch (HETS-EP) provides a
life-of-well gas tight solution for reconnecting casing strings
and has been deployed and held on contingency for more
than 50 wells in the UK, Norway, Denmark and Holland since
commercialisation. The connection is capable of withstanding
bi-directional axial loads at well temperature, whilst maintaining
the pressure integrity and full internal diameter of the original
casing.
The HETS-EP overshot is run on casing and landed over the
casing stub in the well. The casing is then hydraulically expanded
into the overshot to form the connection. It is currently available
for 7 in., 9 in., 9 in., 13 in., 13 in. and 14 in. casings.
Application in a North Sea field
READ Well Services was approached and tasked with qualifying
an effective and robust solution to enable Statoil to reinstate
production in three wells, where corrosive uids (pH3) along
Figure 1. READ senior technician working on the HETS tool.
control lines had compromised the integrity of the 9 in. casing
string.
The specic requirements presented to READ by Statoil
were to deliver a casing reconnection (using the HETS-EP)
with a life-of-well, gas tight, metal-to-metal seal qualied to
5000 psi. The patch was also required to carry 300 000 lbs
in both tension and compression at operating production
temperature (100 C) and have no reduction in internal diameter.
READ embarked on a project to validate and qualify
the external patch using the ISO14310 standard with test
parameters set specically to meet Statoils requirements.
This was in addition to the existing ISO13679 standard using
a modied programme developed in the past for external
casing patches. The project was a success and the results
were beyond the original requirement. Internal pressure was
qualied at 5510 psi (V1 gas) and the external pressure 5510 psi
(V3 liquid) at 100 C.
41
42
OILFIELD TECHNOLOGY
September 2011
The HETS-EP was the preferred solution for Statoil because of
the qualication criteria and actual results regarding both internal
and external pressures.
Delivering the solution
Statoil prepared the well and the existing completion was
removed. The 9 in. casing was then plugged deep and the
damaged sections within the two completed wells (963 m,
2196 m) were cut and pulled. The casing stump was prepared
by washing over with a burn shoe and cleaning the cut area to
ensure the outer and inner diameters and top of the 9 in. casing
had all burs and sharp edges left from the cutting run removed, to
enable the external patch to position itself over the stump cleanly.
A new casing section was run in hole with the HETS-EP
located at the bottom of the casing string. The external casing
patch swallowed the stump of the cut 9 in. casing and the
casing was then landed in the wellhead.
The expansion tool was run on drill pipe and the expandable
system activated with water pumped from surface through drill
pipe to the hydraulic intensier and expansion tool.
Pressure was controlled at surface (up to a maximum of
5000 psi) and intensied downhole to achieve the desired
expansion pressure of 24 500 psi above hydrostatic pressure.
This high level of hydraulic pressure resulted in the controlled
expansion of the 9 in. casing into the HETS-EP, creating the
metal-to-metal, gas tight connection.
To validate the integrity of the new connection, a pressure test
was carried out from surface (Well 1: 4350 psi, Well 2: 4440 psi).
ROI
The HETS-EP enabled the
reinstatement of each well with a
life-of-well gas tight seal. The
reconnection of the 9 in. offered
Statoil the ability to re-complete
its wells without having to perform
workovers or sidetracks.
The alternative would have been
to cut and pull the 9 in. casing as
deep as possible (above the top of the
cement), and drill a sidetrack below the
13 in. casing shoe, then rerun the
9 in. casing, redrill the 8 in. hole,
rerun the 7 in. casing and recomplete
the well. The EP solution has saved
a signicant level of rig time for each
well.
Further applications
Another operator in the Norwegian
sector has recently highlighted a
requirement for a deep-set connection.
The operator has its next deep
sidetrack planned for Q3 2011 and
would like to utilise the HETS-EP
solution. The existing casing is 9 in.
47# L80, however the operator would
like to change this to either 9 in.
53.5# L80, or a tapered string of
10 x 9 in. down to a depth of
4000 ft. The operator will then reuse
the casing and sidetrack the well
below the 9 in. shoe. The EP connection provides a
life-of-well gas tight connection for full well integrity.
By utilising the HETS-EP in this way, it will not be necessary
to cut and pull the 9 in. casing and sidetrack below the
13 in. casing and re-drill the entire 12 in. hole section. The
operator estimates that it will save 50 days of rig time on this
workover which will be, potentially, a NOK 100 million saving
for this sidetrack, and would be an attractive option for many
future workovers.
Future developments
READ has already taken the HETS-EP technology and
applied it to casing sizes from 14 in. down to 7 in. The same
connection is also available as a liner tie back, providing
metal-to-metal seals and removing the requirement for
polished bore receptacles and seal-stems.
In addition, the company is investigating methods of
developing its technologies in order to deploy across a wider
variety of well types, environments, sizes, temperatures and
pressures. For example, the company is looking at ways for all
of its products to be suitable for use in horizontal wells, and as
such is developing its products to suit coiled tubing applications.
It is also enhancing its products to suit increasing ranges of
temperatures and pressures. For greater breadth of applications,
READ is currently developing the HETS-EP product to suit 4 in.
and 5 in. casings, enabling operators to perform shallow or
deep-set reconnections dependant on the requirements. This will
offer signicant cost/time benets to operators.
O T

1. The casing is cut and the upper
section removed.
2. The HETS-EP is run on new casing,
spaced out and landed in the
hanger. The connection can be made
under tension by running the HETS
overshot with a grapple below, the
casing stub being pulled up into
the grapple with a spear run on drill
pipe. Equally, the connection can be
set in compression by sitting down
the weight of the casing prior to
connecting.
3. The HETS expansion tool is run on
drill pipe and positioned on depth
using an integrated latch mechanism
that locates in the HETS-EP.
4. Hydraulic pressure is supplied,
monitored and controlled from surface
to operate the HETS tool and make
the connection. Final expansion
pressures are dependent on casing
size and metallurgy.
5. The expansion tool is removed leaving
a metal-to-metal gas tight connection
with no internal casing restriction.
Figure 2. The installation sequence.
HETS-EP installation
The following sequence is an outline operational summary for HETS-External casing patch
(HETS-EP) installation:
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USA
MASS-PRODUCED
Peter Sharpe, Shell, The Netherlands,
discusses a joint venture project with
CNPC to develop an assembly line
process for drilling wells.
MACHINERY
44
T
o economically develop large elds that require hundreds,
if not thousands, of wells, Shell Projects & Technology
is turning to a century-old process that has helped
improve efciency and reduce costs in the automotive and other
industries: the assembly line.
Shell and its joint-venture partner, China National Petroleum
Corp. (CNPC), are developing a system for mass-producing wells.
Instead of using a massive, multi-functional rig with a trained
crew to drill each well from start to nish, it would employ a group
of smaller, truck-mounted rigs, each of which would perform
a single step or series of steps in the drilling sequence. For
example, one would drill the top part of the hole, another would
drill the intermediate part of the well and a third would do the
completion work.
The rigs would be controlled autonomously instead of being
operated manually by a drilling crew and would have special tyres
that would make them easier to move around the eld. After each
nishes its work, it would move onto the next well site, and the
rig designed to complete the next step in the drilling sequence
would move into place. As a result, multiple wells would be in
various stages of drilling and completion throughout the eld at
any given time.
Unconventional fields, unconventional solutions
The need for a dramatic new approach for eld development
resulted from a signicant shift in the companys onshore
portfolio toward unconventional reserves. Instead of using a
dozen very complicated wells, developing an unconventional
eld requires using a large number of relatively simple wells.
Drilling costs, in fact, represent the biggest expense in the
exploitation of an unconventional reservoir. For example, Shell
will drill 430 tight gas wells in the US in 2011 and will spend
over US$ 20 billion in North America in this sector over the
next ve years. Between now and the end of the decade, the
company plans to drill approximately 30 000 tight gas and
coalbed methane wells globally, so it is critical to minimise
drilling costs.
The solutions are standardised well design and automated
eld development. With this goal in mind, Shell began
developing algorithms, or rules that precisely dene a sequence
of operations, to optimise drilling procedures and allow for
them to be automated.
Its rst signicant success was the development, about a
decade ago, of a soft torque rotary system with an
45
46
OILFIELD TECHNOLOGY
September 2011
algorithm-controlled top drive. After some of the kinks had been
worked out, the system became very successful. It resulted
in faster drilling and fewer drill bit trips into the hole, which
increased the life of the bit and led to signicant cost savings.
This led to the next step of looking at how to further control
downhole processes.
The rst outcome of this effort was the Supervisory
Control and Data Acquisition Drill (SCADAdrill) System.
Developed using existing automation and drilling tools,
SCADAdrill is a control system that interfaces with existing
rig controls to provide autonomous drilling, survey, directional
drilling and hole-condition monitoring. It continuously
monitors all of the parameters of the drilling process,
evaluates them and makes operational decisions in much
the same way as the driller does. This control system can be
retrotted to existing rigs fairly easily and can also be linked
to a real time operations centre where drilling progress can be
monitored.
SCADAdrill operations are monitored to make sure nothing
goes wrong, but the person monitoring will not tell the system
what to do. After each task, the work is analysed to see if the
algorithms need improving, and then the updated software is
sent to the other rigs in the eld.
This control system has been tested successfully in
two horizontal wells in a heavy oil asset in Canada and was
deployed commercially in gas wells in The Netherlands and
Pennsylvania, USA earlier this year. However, it is still in
development.
The system will serve as the brain of the well
manufacturing system, controlling the specialised rigs. The
design of these rigs would vary from project to project,
starting from scratch with the perfect equipment to develop
a eld and then build it through the partnership with CNPC
at the lowest cost with the optimum technology. The result
would be a series of low-cost, repeatable wells across the
entire eld.
In addition to the rigs, Shell and CNPC are looking at
automating other functions. For example, a system to monitor
drilling uids real time and decide when to treat them. This
would ensure a more tailored way to treat these uids while
drilling, securing more uniform properties but also minimising
the use of chemicals.
Smarter, safer, smaller footprint
What are the advantages of this system?
The automated control system will replace the directional
driller, the measurement-while-drilling operator and the mud
engineer. With human requirements reduced, the operations
would be signicantly safer with fewer errors, and the cost of
recruiting, training and retaining rig personnel would be driven
down dramatically. It also would address the severe shortage
of trained rig crews, which has presented a signicant
obstacle to the development of unconventional reserves.
With this kind of supply-demand imbalance, service
companies and drilling contractors charge a higher margin.
The well manufacturing system will also have less impact
on the environment than its conventional counterparts. Its
footprint will be smaller, because the rigs will be smaller and
fewer xed installations would be needed. It will also operate
out of a central processing facility, which will allow for more
use of recycled water and will minimise emissions.
Overview
The well manufacturing system is not the solution for every
eld. The ideal eld would be one that requires a large
number of wells to be drilled over a short period of time and
is uniform enough for the standardisation concept to work.
Coalbed methane and some heavy oil and shale plays t that
description.
However, it would not make sense to invest in a system
such as this one to drill a eld with, say, 20 wells. Those cases
would continue to require the traditional model with service
providers and drilling contractors doing the heavy lifting.
The equipment for the well manufacturing system is in the
design stage now, and the majority of its rigs, services and
drilling equipment will be manufactured or sourced by low-cost
suppliers in China that are subsidiaries of CNPC. Manufacturing
is scheduled to start in late 2011 or early 2012, with system
deployment planned for 2013 in Shell and CNPC elds through
an entity owned jointly by the two companies.
O T

Figure 1. The Synergy rig in Schoonebeek is equipped with Shells autonomous drilling technology, SCADAdrill.
Cost-effective
connections
Bruno Lefevre and Mazhar Mahmood, VAM Drilling, USA,
explain the benefits of selecting appropriate drill strings
to help drilling contractors achieve target objectives with
maximum safety margins in a cost-effective manner.
A
s oil and gas exploration continues to expand into
new and unexplored frontiers, complex horizontal and
extended-reach wells are becoming a daily challenge for
drilling contractors today. When associated with high pressure/
high temperature (HP/HT) downhole conditions, wells need high
performing tools to ensure safety, productivity and superior
performance. The nature of complex well proles in combination
with HP/HT conditions can result in very high stresses on the drill
string, which requires greater safety margins in the drill string
design. To ensure successful operation, drill strings with a higher
tensile and torsional yield strength drill pipe body and superior
torque capacity tool joints must be used.
The high nancial risks linked to drilling operations and the
high cost of rig use means that oil and gas companies need
to mitigate risks and reduce total costs by optimising drilling
programmes and drilling efciency. One can improve drilling
efciency by increasing rates of penetration (ROP) and by
lowering nonproductive time (NPT). Selecting the appropriate tools
for your drilling programme prior to start-up can help guarantee
the achievement of your targets within maximum safety margins
and at reduced costs.
In order to optimise drilling performance, a number of
factors regarding the drill string assembly must be taken into
consideration:
x Pipe and tool joint dimensions for hydraulic efficiency.
x Pipe yield strength for torque and drag optimisation.
x Pipe body, weld zone and connection mechanical properties
for maximum tension and torsion capacity.
x Other design related drill pipe features for improved fatigue
resistance, serviceability and operating cost optimisation.
Design
The VAM Express

high torque connection brings together

a reliable double-shoulder design and a high performance
proprietary thread prole. The primary torque shoulder provides
initial seal and pre-load during make-up to full recommended
torque while the secondary torque shoulder provides high torque
capacity. The connection allows for easy stabbing thanks to a
laid-down stab ank. A back bevelled crest increases freedom of
movement and allows easy connection make-up, while reducing
the chance of wedging. Resistance to rotational-induced bending
is increased by the connections elliptical root.
Qualification
In order to guarantee superior performance, this design has been
subjected to demanding engineering analysis, including the full
47
48
OILFIELD TECHNOLOGY
September 2011
FEA model for pure torque loads and combined torque and
tension loads. The connection was also subjected to live eld
tests in the Heather 1 5 wells during nal stages of product
development. The test conditions are outlined in Table 1.
Performance
x Higher Torque. Torque capacity that averages 150 to 200%
more than that of API connections.
x Quick rig make-up. There are 6 7 turns from stab-in to
full make-up; a performance similar to API connections
but with 16% better trip-time as compared to other high
performance double-shoulder connections.
x Ease of use. Reduced stabbing damage due to enhanced
clearance between box counterbore and pin nose with
no need for stabbing or de-stabbing guides. Reduced
wedging risk on threads.
x Strength. Slim OD/ID to improve hydraulic performance.
x Durability. Minimised damage risk on rig and reduced tong
loss when a connection recut is required. Improved pin
nose durability due to patented design including elliptical
thread root that increases the connections resistance to
rotational bending fatigue.
Complex environments
Shales
Wells are drilled horizontally through the shale formation with high
build rates, which puts further wear on the pipe. VAM Express
allows users to optimise their drill string by providing high torque
and the slim prole needed to successfully drill shale plays. The
elliptical thread root is signicantly better in dealing with fatigue,
especially in the build section. The rugged thread, the fast
make-up time and the fact that no stabbing guide is needed in
make-up eases handling on rig and saves valuable time.
Extended reach drilling and horizontal drilling
The primary need in extended reach and horizontal wells is
torque. Because of the friction that a drill string encounters as it
drills, more torque is needed as the well increases in length and
in inclination. The drillable length of a horizontal, ERD, or uERD
well is limited by the make-up torque of the drill pipe connection
used. VAM Express provides the additional torque required
to drill challenging well designs. In addition, VXs enlarged
Table 1. Test conditions of the VAM Express

Depth 18 150 ft
Hole size 6.5 in.
Section profile Vertical
Rig equipment Varco top drive and Iron Roughneck
Top drive torque Average 3300 ft/lbs
Top drive RPM 40
Drill pipe
4 in., 14.00 lbs/ft S135 pipe, 4 in.
OD x 2-13/16 in. ID tool joints, with
VAM Express VX 39
Typical bottomhole assembly
Drill bit, turbine, stabiliser, 14 drill
collars, jar, 3 drill collars, 6 HWDP
Thread compound
Bestolife copper supreme special
blend
Typical average rate of penetration 3 4 ft/hr
Results: Consistent running, no connection reject related to stabbing, make-up or
drilling operations, trip time in line with expectations.
ID provides hydraulic improvements because it reduces the
pump pressure needed from the rig oor. Finally, VAM Express
elliptical thread root, with fatigue performance equivalent to a
circular root of approximately 0.065 in., reduces connection
fatigue risk.
Field proven
Ease of running and a net improvement in service life were
immediately experienced from the very rst drilling operation
runs in Indonesia in 2006, with a VX 39 drill pipe rented by
Weatherford International on behalf of Chevron. The drill string
was composed of 500 joints of drill pipe and 30 joints of
heavy-weight drill pipe. It was used by Chevron between May
and October 2006, providing a six month period of analysis with
excellent results.
More recently, VAM Express was used by Devon to develop
the Polvo Project offshore Brazil. The Polvo project is a platform
drilling rig located in an offshore block of the Campos Basin
approximately 95 km off the Brazilian coast. The eld has two
distinct reservoirs and a sandstone reservoir to the east, as well
as a carbonate reservoir to the southwest. It was discovered
in 2004 and drilling began in March 2007 with a total of
32 wellbores, including short reach and ultra extended reach
wells. The deviation spans from 3 7/100 ft DLS at inclinations
of 30 92. Wellbores have been designed in 3D, in order to
improve total reservoir exposure.
After the installation of the platform and the start of the drilling
operations, the productivity of the sandstone reservoirs in the
eastern part turned out to be higher than expected. Subsequent
to the drilling of 12 wells and various lessons learned, the furthest
extended reach well in the history of Brazil was attempted and
successfully completed. The Pol-O wellbore was drilled to a total
measured depth of 6489 m (2429 m TVD) and a vertical section
step out of 5615 m. This wellbore still holds the record for the
furthest reach wellbore in the history of Brazil.
Besides this, the Polvo project also attained the record for
the fastest drilling in an 8.5 in. hole with 1610 m drilled within
24 hrs. This record was not only obtained through high on
bottom ROP, but also through signicantly improved make-up
time (e.g, make-up time is halved as compared to similar
connections) linked to the use of the VAM Express connection.
VAM Express prevented drill string failure even after having
drilled over 100 000 m of total well depth using the same drill
string in highly deviated wellbores. Throughout the entire project,
no twist-offs or back-offs have been observed.
The successful and efcient drilling of those extended reach
wellbores has proven further reserves that can be produced
by the Polvo platform with no need of another platform or
subsea tiebacks. Current plans are to improve the top-drive to
achieve higher torque, while staying with the same VAM Express
connection size.
Conclusion
The VAM Express connection design has shown substantial
improvements in mechanical performance and signicant
savings in operating costs thanks to its superior torque
capability. This is up to two times that of API connections,
resulting in optimum performance in the most demanding drilling
environments. As a consequence of fewer recuts and refacing
operations, its extended durability and reduced operating cost
results in a valuable connection design for any drill operator.
O T

No more cracking
Finite Element Analysis helps
the industry develop and
qualify equipment for extreme
environments, in this case
heat. Haining Pan, formerly of
Schlumberger, Jose Caridad,
Schlumberger, Singapore; and
Shauna Noonan, ConocoPhillips,
USA, explain.
S
team-assisted gravity drainage (SAGD) is a proven
technique for producing heavy oil. Originating in Canada,
the technique involves precisely drilling twin lateral
wells, one above the other. The laterals extend for great
distances and must be kept precisely the same distance apart.
Superheated steam is pumped into the upper lateral, heating
the heavy crude and reducing its viscosity, so that it can drain
naturally through the formation and down to the lower lateral
where it is produced.
High temperature pumping is challenging
Schlumberger Articial Lift has been working to extend the
temperature range of its REDA* Hotline* electrical submersible
pumps (ESP). Previously, the maximum temperature rating for
the equipment was 425 F (218 C). More than 700 pumps have
been installed that meet that specication. However, the industry
has demanded more.
In 2009, a new extended temperature range Hotline ESP
system was developed and tested for operation at 482 F
(250 C). The REDA HotlineSA3* system has since passed
extensive testing while running at maximum rated temperatures,
including strict third-party qualication requirements at
C-FER Technology Laboratories in Canada, with collaboration
and sponsorship by major heavy oil operator ConocoPhillips.
However, following the initial testing, the pump was
disassembled and carefully inspected. The inspection revealed
axial cracks in the ceramic keyless sleeves that are used to
support the central shaft at intervals along its length. The
sleeves help keep the shaft centred with a minimum amount
of friction. Due to the construction of ESPs, the sleeves are
under compression. In fact, the entire drive shaft, together with
its impeller stack, is designed so the thrust developed during
pumping is transferred from each impeller to the shaft and then
to a heavy-duty thrust bearing. The sleeves are constructed for
keyless operation; nevertheless, they are not supposed to turn
relative to the shaft when the pump is in operation. Accordingly,
the sleeves are driven by a U-shaped notch that mates with a
corresponding lug on the spacer (Figure 1).
A detailed look inside
To understand the issue, it is necessary to understand
the basic ESP construction. The pump tested was a
compression-built pump with 27 stages. Each stage contains a
matched set consisting of an impeller and a diffuser. The impeller
rotates with the shaft, driven by the motor. The diffuser is xed to
the pump housing and does not move or rotate. When the pump
is constructed, all 27 impellers are spaced along the central
shaft, with nine sleeves and spacers between them, at intervals
to support the shaft radially, keep it centred, and provide bearing
surfaces. Each sleeve on the shaft has a corresponding ceramic
bushing on the diffuser. A compression mechanism keeps the
impellers sleeves and spacers in place axially.
During the post-test inspection it was discovered that all nine
ceramic sleeves had cracked axially right at the deepest point
of the U-shaped notch. The cracks did not precipitate a pump
failure. Nevertheless, it was decided to perform Finite Element
Analyses (FEA) to see if a root cause could be identied so the
sleeve-cracking could be suppressed.
49
50
OILFIELD TECHNOLOGY
September 2011
One of the fundamental steps of failure analysis is
replication. Engineers attempt to replicate the failure under
tightly controlled conditions so they can measure and observe
the failure mechanism. In some cases, engineers build a
mathematical model on a computer and try to replicate the
failure that way. To build a mathematical model, preliminary
testing of components is required for validation purposes.
For the Hotline investigation, both the FEA and testing were
conducted.
The team rst performed a static high temperature test on
the same type of pump used in the eld trials. A compression-
built pump, without housing and diffusers was built and placed
in a precision-controlled oven. After initially heating the inner
workings of the pump to 392 F (200 C), with no damage to the
sleeves or spacers, the temperature was boosted in precise
18 F (10 C) steps, and held for 10 min. at each level. At the
end of each step, the spacer and sleeve condition was carefully
inspected. At 428 F (220 C), cracks were observed propagating
from the notch area of the sleeves between the impellers, but
not at those sleeves at either the head or the base. In fact,
the head and base sleeves withstood 644 F (340 C) without
failure. Friction marks were observed on the ends of the ceramic
sleeves, indicating that the sleeves had been subjected to
axial compression and radial friction at peak temperature. The
engineers deduced that the axial compression was caused by
the difference in the coefcients of thermal expansion (CTE)
between the impeller stack and the shaft (Figure 2).
The impeller stack is made of alloys with higher CTE than
the shaft; hence, it expands more than the shaft per unit length
as the temperature rises. However, the stack was constrained
to the shaft because of the pump construction, causing axial
compression on the sleeve, which led to cracks. Moreover, the
impellers/spacers had a higher CTE and a higher
Poissons ratio than the sleeves, causing radial displacement
of the impellers/spacers relative to the sleeves as temperature
rose. The head and base sleeves had not been subjected to
axial compression, therefore they were unaffected.
A simple compression test performed on a sample sleeve
resulted in an axial crack propagating from the base of the
notch. However, the axial stress level measured when the sleeve
cracked was much lower than its Ultimate Compressive Strength
(UCS). In contrast, the sleeve is relatively fragile in tension, which
revealed that the failure mode was not simply axial compression,
but rather hoop tension resulting from the axial load on the
sleeve due to the U-notch geometry, thermal expansion.
Time to model and analyse
It was now time to model the sleeve mathematically and
observe the effect of hoop tensile stress as a measure of sleeve
cracking. The rst FEA simulation modelled hoop stress on the
sleeve under axial compression with radial friction between the
impellers/spacers and the sleeve (Figure 3). The hoop tensile
stress concentration at the base of the notch reached the
sleeves Ultimate Tensile Strength and thus initiated cracking.
The FEA simulation was repeated without radial friction and
showed a lower level of hoop stress. This result proved that
interface friction plays an important role in determining the crack
criteria.
Lastly, an impeller, a sleeve and a spacer were modelled
and subjected to compression to simulate thermal axial stress
as temperature rises. As it was expected, this FEA simulation
showed that the axial mechanical response of an impeller mainly
depends on that of the hub. This is an important assumption to
simplify the impeller stack as merely three tubes. As a result, a
simple thermo-elastic model was developed and experimentally
veried to be able to predict the temperature at which the crack
initiates in the sleeve.
The key point of the study was the revelation that sleeve
cracking was caused by hoop tensile stress concentration. The
interface friction also proved to be an important factor in the
failure mechanism. Now that the root cause of the failure was
identied, the next step was to address it by closely matching
the CTE of the shaft with that of the impeller stack.
Figure 2. Axial crack propagating from the base of the notch following
the static high temperature test.
2
(Photo courtesy of Schlumberger.)
Figure 1. Keyless sleeve on the pump shaft has a U-shaped notch
that engages a matching lug on the spacer.
1
(Photo courtesy of
Schlumberger.)
Summary
Root cause analysis allows creating a design based on accurate
predictions of failure mode and conditions. Thus the FEA and
derived mathematical model can be used to select suitable
pump components that reduce the axial thermal stress. After
some experimentation, a sleeve-shaft-impeller combination was
developed that survived temperature tests up to 536 F (280 C).
The new alloy is currently being eld tested and is expected
to provide a commercially viable ESP for sustained high
temperature operations encountered in SAGD production.
O T

Note
The Schlumberger and ConocoPhillips authors would like to
acknowledge management for permission to publish this work
and all the support received.
References
1. Pan, H. et al, Use of Failure Analysis Techniques to Improve Reliability
of Material Selection in SAGD Applications, Gulf Coast SPE Paper,
[Figure 1].
2. Ibid., [Figure 4].
3. Ibid., [Figures 7, 9, and 12].
Figure 3. (A) Contour of hoop stress in the sleeve mesh under axial compression. (B) Contour of hoop stress in the sleeve mesh under axial
compression without friction. (C) Contour of axial stress in the stack mesh under axial compression. With these models any combination of critical
stress can be modelled.
3
(Graphics courtesy of Schlumberger.)
SERVICES INCLUDE:
Design & Engineering
Equipment Sale & Rental
Installation Services
Chain Inspection
Proof Load Testing
Wire Rope Products
TOTAL MOORING SOLUTIONS
TOTAL INNOVATION
Phil Head,
Artificial Lift Company Ltd, UK,
reveals how rigless ESPs are
the way forward for
artificial lift technology.

52
Lightening
E
lectrical submersible pumps (ESPs) are the most efcient form of articially
boosting the production of uid from the reservoir. Positioning the pump
at depth in a well ensures the pump only has to remove the uid in a liquid
state, be it single (oil) or two phase (oil and water). This is particularly advantageous
in subsea applications, as it eliminates the need for complex seabed multiphase
boosting systems.
Traditionally, ESPs have been deployed on the end of production tubing. This
requires a rig for installation and removal. New rigless systems, including one
developed by UK-based Articial Lift Company (ALC), require a rig initially to deploy
the production tubing and outer completion, to which is attached one half of a three
phase electrical wet connector. All the other ESP hardware is deployed and recovered
on slickline, internal to the production tubing. This means that once a well has been
made future proof for the technology, the rig is no longer required to disturb the
tubing and completion equipment.
Rigless ESP benefits
The most important benets are nancial and production related. The rigless ESP
eliminates the need to schedule highly sought after rigs and their escalating rental
rates. This can literally save hundreds of thousands of dollars, as well as shorten the
projects completion timeline. Whats more, production from the well is maintained
with minimum downtime, maximising cashow and revenue for the operator.
Another benet is the fact that the well does not have to be killed during
installation, as all the internal tubing components can be worked over on slickline
using conventional live well intervention techniques. This is particularly well suited for
the recently developed subsea workover systems operated from light well intervention
vessels.
A further advantage of the ALC wet connector is that it is located in a side pocket
window (similar to a gas lift valve). When the ESP hardware is removed from the well,
full wellbore access is possible. This enables any remedial work to be performed on
the reservoir, including wellbore cleanouts, coiled tubing drilling for well deepening or
new lateral drilling, perforating, zonal isolation or stimulation.
Plus, because the side pocket wet connector is out of the main bore, it cannot be
covered in debris or wellbore particulates, or damaged by tools intervening the well.
T
H
E

L
O
A
D
53
54
OILFIELD TECHNOLOGY
September 2011
Ideal circumstances for a rigless ESP
The rigless ESP is not for every ESP well. For example, if rig rates
are extremely discounted or rig availability is not an issue, the costs
might be prohibitive. From a well standpoint, if the well is benign
(meaning there is a good local track record of ESP life), it would
be very hard to justify the additional hardware and cost of a rigless
ESP. However, many situations merit evaluating the use of a rigless
ESP system:
Offshore
x Subsea: if a rigless ESP is combined with new subsea light well
intervention vessels, cost-effective access to a subsea ESP
is now viable. This will extend the effective productive life of a
subsea well and maximise the hydrocarbons produced from it.
The subsea well has to be designed at the initial stage to have
the necessary power line and completion hardware installed
to accept a rigless ESP system. This way, as the reservoir
pressure declines, the well is ready to accept the rigless ESP.
x Satellite platform: these minimum facility platforms generally
require a jackup to access the well. The rigless ESP slickline
and pressure control equipment could be helilifted to the
platform, enabling low cost change out.
x Full facility platform: in the North Sea, for example, if the
operator installs a rigless ESP, it could keep the rig clear
for more heavy duty well work such as re-entry drilling, well
deepening and milling.
Onshore
x Tough environmental regions: areas such as the Arctic, desert,
jungle or mountains make it extremely difficult to move a rig or
heavy equipment. Additionally, significant cost can be saved
by not having to maintain access roads suitable for heavy
equipment.
x Urban areas: wells located in sensitive urban areas are
excellent candidates for a rigless ESP system. These locations
create awkward, even hostile community relations issues if a
rig is required.
Enabling technology
The critical components of an ALC rigless ESP system include the
following:
Compact side pocket three phase electrical wet connector
The well is a hot and high pressure environment, with a sometimes
aggressive combination of chemical compositions, either
originating from the reservoir or introduced by the operator as part
of the well maintenance programme. The permanent half of a wet
connector has to be extremely simple to ensure it has a long life.
The rigless ESP system has the advantage of always recovering
the deployed half of the electrical wet connector, therefore, all
the clever technology to provide a rugged and reliable electrical
wet connector system are incorporated in the retrieved slickline
equipment.
It is important for the wet connector to enable full wellbore
access and work with standard wellbore sizes. For the sake of
completeness, the connector has the same electrical rating as a
packer or wellhead feedthroughs.
Permanent magnet motor (PMM)
To ensure practical deployment of a rigless ESP system, a compact
permanent magnet motor was developed. The rigless ESP motor
technology has been around for years in such premium applications
as in aerospace, where size, weight and reliability are essential, as
Figure 3. Motor, seal and wet connector assembly prior to being
installed into lubricator.
Figure 2. Illustration of well completion on left and internal rigless ESP
components installed on right.
Figure 1. Live well installation of rigless ESP using slickline unit,
lubricator and crane (rigless ESP inside lubricator).
TIME FOR DECISIVE ACTION
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56
OILFIELD TECHNOLOGY
September 2011
well as mass produced applications such as the cooling fan motor
in laptop PCs.
ESPs traditionally have used induction motor technology. For
a performance comparison, a 3.75 in. standard oileld induction
motor develops 50 kW (67 hp.) from a length of 14.45 m (47.4 ft)
and weighs 600 kg (1542 lbs). The ALC 3.8 in. PPM produces
50 kW (67 hp.) from a length of 1.4 m (4.6 ft) and weighs 52 kg
(112 lbs).
This difference in performance can be explained very simply:
a permanent magnet motor has its excitation provided by a
permanent magnet rotor and all the current in its armature is
torque producing. Induction machines get their excitation from the
armature current directly. For an induction motor, part of the current
fed to the motor magnetises the circuit and is not torque producing.
Furthermore, induction machines require more cooling because
of the signicant electrical losses in the rotor due to current
circulating in the squirrel cage in the AC nature of the eld in the
rotor laminations. Permanent magnet motors have very small
electrical losses in the rotor due to the broadly DC nature of the
eld in the rotor structure.
Because of their efciency, permanent magnet motors
achieve much higher performance than induction motors and
can have up to eight times the power output to a similar sized
induction motor.
The ALC PPM is fully compatible with industry standard drives,
requires no special position feedback such as an encoder or
resolver, and does not require any special sensorless algorithms.
This is an important characteristic, as other PPM motors require
either a special drive or feedback sensors adding to the installation
cost.
Typical installation
Two types of installation that are common for a rigless ESP include
a rig installation and a live well installation.
Rig installation of completion
The rst installation of the rigless ESP system requires a rig to install
the production tubing and bottomhole outer completion.
The outer completion generally consists of a re-entry guide, an
orientation and side pocket electrical wet connector, motor shrouds
and a power cable that is clamped to the outside of the production
Figure 4. Rigless ESP synergy with light well intervention technology
enables ESPs to be cost-effectively exploited in the subsea arena.
tubing all the way back to surface. The slickline deployed rigless
ESP equipment is then installed through the tubing.
Live well installation of ESP equipment
During subsequent workovers, the well can be accessed using
proven and practiced live well intervention techniques. This
requires a lubricator (extends the well pressure vessel to above
the Christmas tree) that is connected to a BOP, which in turn is
connected to the crown ange of the Christmas tree. The rigless
ESP system can be deployed in sections if there are length or
weight issues. Slickline is then used to lower or retrieve the rigless
ESP assembly into the well.
If the well is extended or deviated, coiled tubing or a wireline
tractor can be used to walk the assemblies into the well and
position at the required setting point. The rigless ESP system
is fully compatible with the operation of either coiled tubing or
a wireline tractor, and the lightweight motors assist with these
deployment processes.
Similarly, the system is fully compatible with the various
subsea well intervention systems currently in nal development
or in commercial use. This is a very exciting combination of
technologies enabling cost-effective ESP systems to be exploited
in subsea wells.
ESPs today
Efcient pump retrieval for reconguration, maintenance or
replacement will be essential to the progress of ESP technology
in deepwater projects. ESPs to be installed by Petrobras, with
FMC, at the Gulf of Mexico Cascade and Chinook elds in 8800 ft
of water will have horizontal caisson congurations and will be
placed on the seaoor inside of cages. Retrieval and reinstallation
will take place by means of a service boat deploying an ROV, with
the cage and pump handled as a unit. Seabed pumping units that
serve multiple wells are an effective deepwater boosting solution.
With the arrival of rigless ESP technology each individual
well can have an ESP installed and placed at its optimum setting
depth. For example, if a rigless ESP is placed in the well, providing
a drawdown of 4000 psi, this additional lift might enable an extra
10 20% recovery of total oil in place. This is a signicant benet
to the operator.
The future
The challenge the industry faces is to maximise the
cost-effective recovery of oil in place. Rigless ESP technology
will enable an economic means of installing and retrieving in-well
pumps.
Wells will be prepared for rigless ESPs, and will involve
a two-stage well production solution. In the rst stage, high
reservoir pressure will provide the natural drive for production
from the well. In the second stage, as reservoir pressure
declines and natural well ow diminishes, production will then be
augmented by means of the rigless ESP system.
This technology is currently being installed and evaluated by
both national oil companies and international operators globally. In
addition, engineering for several large subsea projects is currently
in progress. Given its practical and nancial benets, rigless
ESP technology should become a standard requirement for
certain large niche applications; one that can provide signicant
benets for the operator in terms of reducing the overall project
costs whilst assisting in achieving the maximum recovery of
hydrocarbons from the well.
O T

Nuclear solutions
Terry Graham, Zircotec, UK, demonstrates how a
growing range of coating technologies, developed
by the UKs nuclear industry, are now providing
solutions including resistance to heat, wear and
even electrical insulation in oilfield applications.
Figure 1. A growing range of coating technologies, developed by the UKs
nuclear industry, are now providing solutions including resistance to heat.
N
ovel surface coatings were one of many
technologies developed by the UKs Atomic Energy
Authority (UK AEA) to solve performance and
reliability issues in the nuclear reactor and associated plant.
Tough, easy to package and long lasting, they were ideally
suited to challenging high temperature environments. With
a thermal efciency of less than 1.5 W/m K (compared with
4 W/m K for alumina), zirconia-based ceramic coatings
are also very effective at inhibiting heat radiation from a
57
58
OILFIELD TECHNOLOGY
September 2011
metal surface. Zircotec, formally part of the government-
owned UK AEA, grasped the opportunity to commercialise
the technology beyond the power generation industry, leading
to a number of other applications in motorsport, automotive
and niche industries, such as aiding the drawing of bre optic
tubes within the furnace.
Now, the Abingdon-based company is also expanding
its range of durable yet thin coatings to solve both new and
existing challenges found in the oil extraction and rening
industries. As this industry identies more challenging
elds to exploit, coatings including anti abrasive, electrical
insulation as well as the option to replace more harmful
coatings such as cadmium, could provide answers to the
growing number of reliability questions posed.
The application process
Rened and optimised over 30 years, Zircotec has used
plasma spraying to apply its coatings and heat shield
products. During plasma spraying, powder particles
are injected into nitrogen or argon plasma with a ame
temperature of circa 20 000 K and a gas velocity of
Mach 2 3. The companys process provides a very short
residence time for the particle in the ame and it is possible
to adjust the parameters to ensure that the range of substrate
materials that can be coated is nonetheless extensive. These
can stretch from nylon at the lower end of the temperature
spectrum to beryllia at the top, though toxicity means the
latter is not currently undertaken by Zircotec. Provided
the material does not sublime nor is it transparent to UV,
the particles will melt and quench as splats on to the
substrate. The experience derived from coating often intricate
components for nuclear installations, means the company
can ensure an even coating is built up in thin layers helping
to reduce stress in the nal coating, minimising failure in the
eld that inevitably leads to the unwanted downtime and
disruption that can cripple oil extraction.
The coating is designed to be robust and is highly
resistant to vibration and mechanical damage during its
operational life. To survive the conditions experienced
in oil extraction environments, careful control of process
parameters and a proprietary bond coat is used to make
sure the coating is extremely well adhered to the underlying
substrate. Any attempt to coat directly onto a part without
such pre-treating would result in very low bond strength.
Further proprietary physical and chemical methods are used
to prevent damage to the substrate during the application
process.
A lighter future
With the oil industry venturing into more hostile environments
and deeper locations to recover oil, the ability to improve
performance and reliability through the use of t and forget
Figure 2. High temperature plasma-sprayed ceramic coatings can provide lightweight, easily packaged and highly durable thermal barriers suitable
for a wide range of highly aggressive environments.
of 600 C). For composite applications such as on structures,
pipes or venting systems, the reductions are equally impressive;
testing has shown carbon bre surface temperature lowered by
over 125 C, crucially providing the ability for these light materials
to be used in temperatures above their delamination point.
The highly corrosive environment of oil extraction means
that composites are an attractive solution for offshore users.
Composites are known to be stronger, and around six times
lighter than copper nickel equivalents, if they are subjected to
high temperature environments, they were often ignored for
fear of damage. Zircotec believes that there is future potential
for more use of carbon composites offshore in salt laden
environments. Research suggests reducing pipe weight on
the decks of a tension leg platform would improve buoyancy,
leading to reduction in the amount of steel required and therefore
cost. Like for like composites are known to be stronger, and
approximately six times lighter than copper nickel equivalents.
Other potential examples include the growing use of composite
shovels, a switch made to save weight and avoid corrosion
issues. An anti wear coating, such as molybdenum, could be
applied to extend their life.
To achieve the latter, a metal coating to a composite offering
a lightweight structural component that has excellent wear
characteristics can be applied. Similar to the ceramic coating,
a proprietary bond coat is applied to the composite before
applying a top layer of molybdenum, aluminium, stainless steel
or tungsten. These coatings are also being used on composite
substrates to enable their use in environments where previously
they would have failed or required higher levels of maintenance.
In line with the unique capabilities of the technology, the
company offers oileld engineers the opportunity to engineer
the coating. To suit specic customer requirements, engineers
can adjust the coating properties both through thickness and
across the surface of a component to cope with hot spots and
differing forms of heat transfer such as radiant, conductive or
convective heating.
Unlike some processes or coating, only areas that need
treatment are coated. This is more cost-effective and further
minimises weight. It is also possible to build in a conductive
sub-layer that will help to dissipate heat away from any
concentrated high temperature areas, and can also help deal
with transient heating situations. This means the company
applies just the right amount of coating to deliver the necessary
protection whilst minimising the weight impact of the coating.
(As low as 0.03g/cm according to Zircotec.)
Flexibility
The growing work the company has carried out in the automotive
sector has led to the development of a exible ceramic supplied
on an aluminium foil. Believed to be the rst of its kind, ZircoFlex
enables users to solve heat issues without having to send
components for spraying. It can be cut, folded and bent to t
any shape and offers surface temperature reductions of 64%
in single layer form and, up to 85% when used in its three layer
variant. Very lightweight and exible, it is an easy solution than
can be applied in the eld. The company has made installation
easier in difcult to access plant equipment locations by also
introducing a self-adhesive option and pre-prepared two and
three layer derivatives. Good for applications in environments
subjected to temperatures up to 500 C, its usage in oileld
applications is likely to be extensive.
O T

Figure 3. Zirconia-based ceramic coatings have their heritage in the
UKs nuclear industry.
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MOORING SOLUTIONS THAT GIVE
Wolfgang Wandl,
Viking Moorings, Norway,
shows the importance
of mooring solutions in
exploration drilling.
D
rilling operators today are facing a myriad of challenges
in their exploration operations. Such challenges include
the greater need for accurate downhole measurements
in remote and geologically complex exploration areas,
decisions as to what depths to install the well casing and the
importance of accurate bit selection, and the need to drill
exploratory wells as quickly and efciently as possible.
Go offshore into deep waters and such challenges can
potentially multiply to include issues such as increased water
depths, riser manipulation and extreme bottomhole pressures
that, in some cases, can exceed 22 000 psi.
One of the biggest challenges in the management and
control of exploration drilling today, however (and one that is
often overlooked), is the vital role todays mooring solutions
play. These are in two main areas: in mobilising and moving
exploratory drilling rigs normally semi-submersible drilling
rigs as quickly as possible from location to location and in
developing innovative solutions for actual drilling operations.
According to ODS Petrodata and its weekly rig count, there
are currently 625 mobile offshore drilling units under contract
around the world (as of 24 June 2011). It is the exploration
drilling rig counterparts, however, who perhaps provide the most
signicant mooring challenges. There are a number of reasons
for this.
Firstly, such rigs tend to move around with increasing
regularity often spending less than 30 days at a given location
60
and moving as many as 10 times a year, as operators look to
assess as many different prospects as quickly as possible.
This is particularly applicable in regions, such as offshore
Africa, Brazil and in Asia, as well as even the North Sea,
which is currently seeing a resurgence in activity.
Moving with such regularity, however (especially taking
into consideration other unknown variables such as the
weather), increases the potential for delays and rising costs.
This is particularly the case with the huge infrastructure
and resources required in moving modern rigs, including
everything from Anchor Handling Vessels (AHV) and Anchor
Handling Tugs (AHT) through to the supply of chain, anchors,
bre and other ancillary equipment for mooring systems.
For the operator, every day a rig is not connected to its
mooring lines means not only a day lost in drilling but also
a day of expending considerable resources without benet.
The costs of Anchor Handling Vessels (AHV) can also be
substantial.
A second challenge is that many offshore exploration
drilling rigs also have to navigate around existing subsea
structures often due to the amount of exploration activity
taking place around elds that are currently in production.
With the typical mooring spread for a semi-submersible
rig being between eight and 12 anchor lines with a horizontal
reach of up to 3000 m, mooring solutions providers need
to be highly adept at navigating existing installations, such
Figure 1. The Spin Buoy ready for deployment.
MORE
61
62
OILFIELD TECHNOLOGY
September 2011
as pipeline networks, subsea tie-backs, water injection or gas
injection wells, or multiphase pumping and subsea separation
systems.
The North Sea is one such example of a region where a urry
of new exploration activity (the recent licensing round for the UK
Continental Shelf resulted in the largest number of bids since
the rst licensing round in 1964) is taking place alongside older
elds and infrastructure.
Recent exploration drilling rigs in the North Sea that Viking
has supported include the West Alpha and West Epsilon rigs for
Statoil in the Alve and Sleipner elds in the Norwegian North Sea
and the West Phoenix rig, currently under contract to Total for
exploration on the UK Continental Shelf.
Thirdly, there is the challenge of how mooring solutions can
optimise drilling production. For example, when target areas
are very concentrated and where already drilled wells need to
be repaired, it is often the case that drilling locations are just a
few thousand metres apart. It is in instances such as these that
mooring providers need to provide innovative and cost-effective
solutions.
And the nal challenge, as mentioned briey at the outset
of this article, is that of securing exploratory drilling rigs and
deploying mooring solutions in some of the worlds most remote
areas, with high depths and unpredictable weather conditions.
So how are mooring solutions providers meeting these
challenges and improving drilling management and control?
There are number of developments, spurred on by mooring
providers, such as Viking, which are improving the effectiveness
of offshore drilling exploration.
Mobilising and demobilising exploration rigs
With assets at their most vulnerable during rig mobilisation and
demobilisation as well as any problems leading to signicant
cost increases, it is vital that mooring providers today apply
innovative solutions to mobilisation and demobilisation.
Furthermore, there is also the issue of safety so tragically
highlighted by the Bourbon Dolphin tragedy in 2007 where an
Anchor Handling Tug Supply Vessel (AHTS) capsized off of the
coast of Scotland with considerable loss of life.
The growth of pre-set moorings, where the mooring
infrastructure is established in advance of the rigs arrival,
has gone a long way to both speeding up and simplifying the
mobilisation and demobilisation processes.
Pre-set mooring ensures greater precision and control
over the positioning of the mooring solutions around existing
infrastructure and also enables a more strategic approach to
supporting offshore drilling rigs. For example, targets areas can
be mapped out and mooring solutions put in place months in
Figure 2. The preinstallation of mooring lines for an Australian Operator 23.6.
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The Power of Communications
Opening Keynote Address
The Power of
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64
OILFIELD TECHNOLOGY
September 2011
advance, with unknown variables, such as the weather, tackled
more directly by installing such solutions in the summer months,
for example.
Recent examples of pre-set mooring applications that Viking
has been involved in include Transoceans Jack Bates rig,
offshore Western Australia and a pre-laid mooring system on
behalf of Kosmos Energy for the drilling unit Atwood Hunter in
the Teak prospect, offshore Ghana. With this growth in
pre-set moorings, Viking has also developed a number of new
solutions to support them.
For example, the company is set to launch a complete bre
rope storage system, which will enable the bre rope and the
buoy in a pre-set mooring application to be stored safely on the
seabed until mobilisation (the bre rope will be stored in a bag).
This will lead to a simplication of pre-laid mooring
operations, efcient and exible handling and storage, and no
requirements for specialised tooling and external cranes. And
when the rope is ready to be retrieved and the AHV is ready for
connecting the ground chain to the bre rope or the rig chain,
the new anchor retrieval buoy (known as the SPIN buoy) will
be utilised. The SPIN buoy is brought to the surface through a
coded acoustic signal, spooling off rope in a controlled manner.
Other solutions to improve mobilisation and demobilisation,
whether on a pre-set or convention mooring application, are the
Stevtrack Anchor Data Acquisition System and the
QS connector (QSC).
The Stevtrack system provides a real time view of the anchor
installation process underwater in order that the anchor can
be correctly positioned on the seabed. Information displayed
includes real time data on roll, pitch, water depth and pull-in
force.
The QSC is a connection device based on automated
wire line connections, replacing traditional shackles and links
and promoting crew-free deck operations. Connection and
disconnection is carried out in a deck cradle supported by a
hydraulic-driven manipulator tool with all operations controlled
from the vessel control room.
It is innovative mooring solutions, such as these, which
are playing a key role in exploratory drilling management and
control.
Supporting drilling operations
Mooring solutions can also have a direct impact on
the actual drilling programme itself, with signicant
cost savings. For example, Viking Moorings installed
a pre-laid mooring solution for Noble Drillings
Homer Ferrington semi-submersible drilling rig
in the Baobab oil eld, off the Ivory Coast. The
Homer Ferrington rig had been asked by the
operator, Canadian Natural Resources (CNR), to
repair a number of wells affected by sand.
There were two separate drilling locations 1000 m
apart. Rather than developing two completely
separate conventional mooring systems, Viking
developed a pre-set mooring solution where the rig
could skid between the two drill centres.
The ability to access both drill centres from a
single mooring pattern led to signicantly improved
mooring system performance with less riser
downtime, less interruption to the drilling, and an
optimisation of drilling services using batch drilling.
The result was that the operator was able to deliver
four entirely new wells with cost savings estimated by CNR to be
in the region of US$ 75 million.
Requiring access to solutions worldwide
The wide geographic scope of exploration drilling worldwide
requires mooring providers with local bases and access to local
personnel.
It is only then that challenges can be addressed as they
occur and transportation costs and deployment time can be
reduced by accessing equipment at local hubs rather than
having it shipped across the world.
With this in mind, Viking today has a global footprint with
an operational presence in Scotland; Norway; North, West and
South Africa; Malta; Libya; Singapore, and Western Australia.
Only last June, the company also signed an exclusive agency
agreement with Canadian-based Newfoundland Offshore
Services Limited (NOSO), to tap into the growing offshore
Canadian market.
This global reach allows the company to support key target
exploration areas. For example, a partnership in Egypt has
ensured extensive storage space in Alexandria with the ability to
ship equipment immediately to offshore exploration areas, such
as the Gulf of Suez.
In Malta, the company has an extensive stock of mooring
equipment, serving the central and western Mediterranean
and the markets of Algeria and Tunisia all drilling exploration
targets. Finally, there is also a base in Ghana, the ideal stepping
stone to large-scale deployments in Angola, Nigeria and Ghana
itself.
By providing local equipment and local resources, mooring
providers can continue to provide real added value to drilling
contractors as they look to manage their exploration drilling
operations.
Conclusion
Whether it be moving rigs quickly and seamlessly or providing
value to actual drilling operations, as in the case of the
Ivory Coast, it is clear that mooring solutions have a vital role to
play in successful offshore exploration and drilling. The next few
years are likely to see even more developments in this area.
O T

Figure 3. The Stevtrack Anchor Data Acquisition System displays real time data on
variables, such as roll, pitch, drag length, penetration depth and pull-in force.
Doug Davidson, Mooring Systems Ltd, UK, explains how Tri-Catenary mooring systems
are proving to be a flexible and effective station-keeping and production system.
FPSO MOORING IN
MARGINAL FIELDS
T
ri-Catenary mooring systems (TCMS) were rst designed for extended well testing (EWT) in
the North Sea in the mid-1990s. They provided a better and more cost-effective alternative to
dynamic positioning tankers. After various EWT projects, the TCMS system was successfully
used to moor storage tankers and oating production, storage and offtake (FPSO) vessels. It
provided an alternative to submerged turret production buoys, tower yoke mooring systems and
conventional multi-line turrets for vessels up to 250 000 dwt, most notably for marginal elds
where the eld economics dictate a simpler, easy to deploy mooring system for elds with a limited
production life.
The TCMS is based on three mooring legs radiating at more or less equal angles from a
connecting node below the sea surface, with a single length of chafe chain rising from the node
to a chain stopper positioned on the bow of the moored vessel. A key feature of many TCMS
systems deployed to date is the existence of only one chain mooring line in any one direction, with
the adjacent one being 120 away. The seabed end of each leg is typically held in place by a high
holding power, drag anchor, rmly embedded by cross tensioning as an integral part of the standard
65
66
OILFIELD TECHNOLOGY
September 2011
deployment procedure. The mooring system allows the vessel
to weathervane around the node in response to wave and wind
movements.
Secure mooring system
Particularly when used with an FPSO, all mooring system
design codes require there to be a means of safe positioning in
the event of a single line failure. The TCMS offers a choice of
options to ensure that there are no single point failure modes;
this can either be with the use of additional mooring legs and a
redundant chafe chain; or, as has been approved by a number of
classication societies, a package of individual measures which
together have been accepted as providing an adequate level
of protection. One of these measures is an enhanced strength
factor of safety for non-redundant systems, which is recognised
in the latest version of the DNV Position Mooring Code OS-E-301.
This measure takes advantage of the efciency of this type of
mooring system, where the peak mooring forces can be reduced
Figure 1. TCMS production tower on the Ikdam project offshore Tunisia, showing three risers and two umbilicals.
by tuning the mooring
systems response to match
the vessels response in severe
weather. The TMCS can be
tuned by the careful design
of such factors as the length
of the chafe chain and the
mass of the node. Thus, use of
larger components to increase
the strength, and reduce the
risk of equipment failure, is not
nancially burdensome.
By using three lines
compared with other mooring
systems including CALM
buoys and turrets that have
typically six, eight, or more
legs, the TCMS is quicker to
deploy and less stiff than
other tanker moorings. This
ensures that the tankers
natural fore and aft motions,
with the right engineering, can
be damped by the mooring
catenaries and the pendulum
effect of the chafe chain.
Flexible production
system
With the use of guide collars
attached to the chafe chain,
the moored tanker can act as
an FPSO with multiple high
pressure risers. The risers are
unaffected by the degree of
vessel offset experienced,
as the riser catenary shape
is affected by the movement
only of the mooring node,
which is considerably less
than the vessel movement.
The distance from the node
to the tanker bow is a xed
length (typically 40 50 m for a 90 000 dwt Aframax tanker).
Horizontally, the node will move perhaps only 10 m, and
vertically perhaps 25 m in extreme conditions. These sorts of
motions are easily taken up with a lazy wave or steep wave
design of riser shape. For some applications, it has been feasible
to rely on the inherent stretch in bonded hoses to accept the
node offsets the right choice of bonded hose can have elastic
stretch to as much as 40% of its original length without
structural damage or loss of integrity.
A single axial swivel on each riser is sometimes used
depending on the amount of weathervaning anticipated; single
axial swivels being much cheaper than multi-path toroidal
swivels and with a much shorter delivery time.
So far, 11 TCMS systems have been deployed in applications
ranging from extended well testing, oil recovery, and oating
storage and FPSO production. One of the three FPSOs moored
to a TCMS to date is the Lewek Arunothai FPSO Arthit Field in
the Gulf of Thailand.
OILFIELD TECHNOLOGY
September 2011
67
Approximately 143 miles (230 km) offshore Songkhla
in Malaysia, the Arthit gas and condensate eld spans
1 million acres (4185 km
2
) across Blocks B14A, B15A and
B16A. Moored at a water depth measuring 262 ft (80 m),
the Lewek Arunothai FPSO eld is operated by Thai oil and
gas company PTT Exploration & Production (PTTEP). The
Arthit FPSO TCMS also features four 8 in. Manuli bonded risers
and one 8 in. DeepFlex bonded riser, plus a multi core hydraulic
umbilical. The TCMS and riser system has successfully handled
production levels of 370 million ft
3
/d of natural gas and
19 800 bpd of condensate.
As experience of the TCMS mooring system has increased,
so the principle of providing a cost-effective mooring system
for marginal elds has been developed for both deepwater and
ultra-shallow water applications.
Getting into deep water
The growing number of deepwater marginal elds in the
Gulf of Mexico, offshore West Africa and Brazil, present both
practical and economic challenges for independent operators.
By their very nature, deepwater elds in water depths greater
than 1000 m can be expensive to develop and so marginal
elds lacking existing pipeline infrastructure are often neglected.
Conventional deepwater mooring systems are complex and
expensive to deploy at water depths greater than 1000 m. In
addition, they often require substantial modications to the
FPSO, such as the addition of a mooring turret. In a marginal
eld, a turret capable of handling a small number of risers is
inappropriate, whereas a deepwater TCMS, designed for four
or ve risers, is more practical. And with a lifetime of around
seven years, compared with 25 30 years for more substantial
deepwater elds, the TCMS mooring system provides a less
complex mooring at half the cost of a traditional deepwater
mooring system.
The differences between the shallow and deepwater TCMS
are longer mooring lines based on synthetic bre rope rather
than chain, together with the addition of discrete buoyancy
units that give the mooring system a wider prole and prevent
clashing between the mooring lines and risers. The risers too
are lengthened and hang off loads from the TCMS production
tower maintained by changing the riser prole and enhancing the
buoyancy. Subsea, the production risers can be supported by
buoyancy tanks and connect to the FPSO via exible jumpers,
reducing tension on the production risers.
The major difference between the shallow water and
deepwater TCMS is the ability to disconnect the bow-mounted
riser production tower in the event of adverse weather
conditions. The production system tower is designed to be
fully disconnectable within eight hours and abandoned to 70 m
water depth while the FPSO sails to a safe port. When the FPSO
returns, and is on station, the tower is retrieved and reconnected
to the bow of the vessel.
Ultra-shallow water production
For ultra-shallow water projects at 55 m, the TCMS traditional
three leg mooring system can be used. Each leg is typically
made up of 500 m of Grade 3 chain connected to the mooring
system node. This type of mooring project will be close to the
shore and so the wave movements will be a good deal less
than those found further offshore. In such shallow water, vessel
rotation is restricted to 90 movement either side of the mean
heading. The TCMS production tower is also shorter and less
complex and supports a maximum of four risers/umbilical
orientated in a lazy wave prole from either pipeline or subsea
trees.
The exibility of the Tri-Catenary mooring system offers
independent operators a reliable mooring and production
solution for offshore marginal elds. The opportunity to
deploy the TCMS mooring system quickly and cost-effectively
compared with traditional mooring systems presents a
compelling case for operators wishing to maximise eld
production and protability.
O T

Figure 2. TCMS production tower on the Ikdam project offshore
Tunisia.
Figure 3. TCMS production tower showing chafe chain, guide collars,
risers and umbilical.
Kilobyte-sized
Sandy Johnson, SatCom Global, UK, considers
optimising communication for remote operations.
COMMUNICATION
68
E
fcient communication has long
been a challenge for businesses
operating in remote parts of
the globe. The ability to exchange
information and communicate with
colleagues, friends and family has
until now been restricted because of
high costs and the lack of available
bandwidth.
In the area of oil and gas exploration,
competition for natural resources has
driven exploration teams to distant
and hostile environments. These
companies need cost-effective, xed
and mobile satellite connectivity to
keep them in constant contact with
their remote teams, rigs, pipelines
and ofces worldwide. Always-on
connectivity available 24 hours a day,
seven days a week, 365 days a year
between headquarters and sites around
the globe is critical in order to keep
operations running smoothly. Reliable
communication is essential to maintain
high productivity, safety and high
employee morale.
In the harsh and often unpredictable
environments where oil and gas teams
are based, bandwidth is expensive
and in short supply. Because the latest
technologies generate large volumes of
data that need to be transported securely
from exploration sites, it is imperative
that bandwidth is used with the greatest
efciency.
Additionally, recruiting and retaining
qualied crew personnel is not an
easy task in this specialised industry.
69
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OILFIELD TECHNOLOGY
September 2011
Employees are working in isolated environments and the
ability to keep in touch with family and friends is important
for high crew morale. Companies must be able provide a full
range of affordable communication services so personnel can
communicate with home on a daily basis.
These factors, along with the requirements for solutions that
are easily deployable, exible and mobile, as well as the ability
to integrate into existing communications systems are some of
the challenges facing the industry.
The good news is that now there are solutions that meet all
of these requirements and more, enabling oil and gas companies
to achieve more for less.
The solution
The latest solutions are based on a highly efcient Voice over
Internet Protocol (VoIP) platform, which has been designed to
specically to meet the challenges of remote locations. These
solutions optimise communications over the internet by using
bandwidth more efciently and giving users more control over
how much data is consumed.
The new portfolio of products covers all aspects of
communication, from VoIP calls and email to web browsing and
instant messaging.
The core of the Horizon solution is an innovative technology
that enables VoIP from only 2 kbps compared to 8 kbps
from other G.729-based VoIP services today. The system is
fully compatible with digital telecommunications standards.
Figure 1. New efcient communication solutions can provide access similar to what individuals would enjoy in a terrestrial environment.
It operates on a secure, reliable network that is capable
of interconnecting any phone system over IP, delivering a
scalable and versatile solution.
Bandwidth efficiency
The key to delivering highly available, reliable and secure
communication at an affordable cost is optimisation. Every
part of the solution is optimised to use as little bandwidth as
possible and consume minimal data.
Unlike traditional VoIP calls, which send the same amount
of data in both directions regardless of whether someone
is speaking or not, the solution detects and uses less data
for silence. By sending heartbeats, at a data rate of just
0.25 kbps, users can tell that the line has not been dropped.
Users making VoIP calls can choose from three levels of
call quality during a call to select the best balance between
cost and performance.
Data efciency extends to a range of optimised
applications email, web browsing and instant messaging.
Email is 500 times more efcient than a standard email
application. Web browsing is optimised with the removal of
unwanted advertising and unnecessary http headers and
image compression.
Users are informed of how much bandwidth they are using
through a desktop application, which provides the volume of
data consumed, and the costs incurred in real time after each
mouse-click on a web page or word spoken in a call.
Easy to deploy
Another key driver in the choice of communication solutions is
that it should be easy to implement for new sites and relocating
teams and require a minimum level of telecommunications
expertise for voice and data set up.
The ruggedised hardware is designed for simple deployment
and ease of use at all levels, from ofce environments to harsh
and extreme conditions. There is minimal equipment to be
installed and calls can be made within minutes of set up. All that
is required is a wired internet connection and main power supply
and the unit connects with any 2-wire analogue telephone for
integration with existing telephone systems. Additionally, up to
eight analogue telephones can be connected for simultaneous
calling over a single internet link more than any other system
today for the bandwidth available.
Users are allocated a unique number and a PIN to access
services. Clients enter their PIN into a handset at their current
location and all their calls and voicemails will be routed to that
phone. This enables a follow-me service where users can
receive VoIP calls and voicemail on any of the solutions phone
regardless of the location.
Simple billing
Those operating on exploration and recovery platforms over
large geographies require exible billing options that allow easy
reconciliation for personal and business communications. Billing
systems should support both pre-paid and post-paid billing and
central account management.
New solutions, such as Horizon, record all usage against
each users PIN. This allows detailed call records per user rather
than per device enabling costs to be allocated and, if necessary,
billed to an individual. Pre-paid and post-paid billing allows
the staff to use pre-pay services for personal communications
and post-pay services for business communications all easily
managed on one central account.
Improving crew welfare
For employees working in oil and gas exploration, the ability to
access the internet and stay in contact with home dramatically
improves working conditions and quality of life. New efcient
communication solutions can provide access similar to what
individuals would enjoy in a terrestrial environment. Multiple
calling capabilities allow many employees to contact friends and
family at the same time, rather than waiting in a queue to access
a single connection.
Figure 2. The Horizon VoIP PBX box.
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New crew welfare initiatives are also driving the
adoption of advanced communications. If businesses want
to be perceived as an employer of choice, it is important
that they provide employees reliable and cost-effective
communications to stay in contact with family and friends.
Employees now have access to affordable voice and
data services and employers have visibility and control of
communication costs. Employers are able to offer benets
without the fear of expenditures spiralling out of control, as
they look to recruit and retain the best staff.
Satellite backup
For oileld operations connected by terrestrial
communication, satellite backup solutions are vital for
seamless failover communication during an unexpected
outage.
In the current economic climate, businesses are looking
to minimise costs so it is critical that backup communications
limit amount of bandwidth required to provide the same level
of service as the primary communication solution.
The emergence of bandwidth-efcient VoIP platforms
and optimised data applications has enabled businesses
to achieve a dramatic reduction in bandwidth for backup
communications, while controlling costs and mitigating
disruptions to production and risk.
Integrating existing systems
In a highly competitive commercial environment, leveraging
existing equipment is helpful in controlling capital
expenditures for investment in new communication systems.
CRC-EVANS 02
ENERGY GLOBAL 19, 23, 40, 59
GEODYNAMICS IBC
GLOBAL INDUSTRIES IFC
INTELLIGENT ENERGY 55
KONGSBERG 27
LNG INDUSTRY 43
M-I SWACO 04, 31
OFFSHORE COMMUNICATIONS 2011 63
OILFIELD TECHNOLOGY 71
ROSEN 07
SCIENTIFIC DRILLING OFC, 14-15
SHELL INTERNATIONAL OBC
SIEMENS AG 09
T3 ENERGY SERVICES 39
VIKING MOORINGS 51
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Solutions that can integrate with existing digital and
analogue tele-systems provide multiple benets. A digital
gateway interconnects any digital handset, PBX or server into
the communication solution network to maximise the use of
legacy equipment. A PRI server that enables least-cost routing
for PSTN call termination greatly reduces international calling
charges. This solution is well suited for organisations that have
a high volume of calls going to one country such as calls from
remote locations to a head ofce, or employees calling home to
the same destination.
The exibility of the technology also allows businesses to
manage their own PSTN termination at their own rates or use as
back-up purposes when local PSTN access is unavailable.
The server can be congured to handle multiple call-routing
combinations and supports up to 240 simultaneous inbound/
outbound calls. Additionally, it enables in-country lawful interception
to meet local regulatory requirements where necessary.
All around benefits
In the harsh and unpredictable remote environments where
oil and gas companies operate, demand for services is ever
increasing. Meeting these demands requires innovation, efcient
use of bandwidth and the exibility and scalability provided by
todays new high performance solutions.
Industry trials have demonstrated potential savings of
50 80% on existing communications costs as a result of this
optimised voice and data environment.
Organisations requiring specialised communications for
diverse global locations can now take advantage of a wide range
of high quality low cost voice and data solutions.
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GEODynamics, Inc. 2011