PRIMER OF OFFSHORE DRILLING OPERATIONS An Introduction to Transocean Offshore Drilling and Operations

We’re Never Out of Our Depth.

MAJOR TOPICS

 Company Overview
 Transocean Heritage and Legacy  Assets (People and Equipment)

 Drilling Offshore Wells
    Arrival on Location Primary Drilling Equipment Offshore Well Construction Life Offshore

 The Transocean Advantage
 What makes Transocean THE PREMIER OFFSHORE DRILLER

MISSION STATEMENT Our mission is to be the premier offshore drilling company providing worldwide rig-based, wellconstruction services to our customers through the integration of MOTIVATED PEOPLE, QUALITY EQUIPMENT AND INNOVATIVE TECHNOLOGY, with a particular focus on technically demanding environments.

WHO IS TRANSOCEAN

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SEDCO FOREX SONAT TRANSOCEAN ASA FALCON READING & BATES CLIFFS DRILLING TRANSOCEAN

 The Transocean we know today is the result of the merger of six (6) legacy companies.  Literally thousands of man-years experience in offshore operations.

COMPANY OVERVIEW  Industry’s largest offshore contract driller  13 Fifth-Generation Deepwater Floaters capable of 7,000+ feet water depths

 15 Other Deepwater Floaters capable of 4,500-7,000 feet water depths
 4 Other High-Specification Floaters capable of harsh environ. operations

 3 ultra-deepwater rigs in construction, 2 deepwater DP upgrades

LARGEST OFFSHORE RIG FLEET (1) 90 80 70 25 60 50 40 30 20 10 0 Transocean Semisubmersibles & Drillships Jackups Other MODU's 78 59 54 3 45 45 53 32 13 41 45 3 44 28 43 24 24 14 (2) 13 Noble Diamond 14 1 Pride Ensco Rowan GlobalSantaFe (1) (2) Excludes ownership in barges. equity ownership positions and new rig construction Excludes a drillship utilized in a research mode Source: SEC Form 8-K filings . MOPU’s. platform rigs. land rigs.

DIVERSE GEOGRAPHIC DISTRIBUTION Total Fleet – 80 Rigs Market Cap.6 Billion (2) (1) As of July. 2007 (2) As of June 2006 . .$10.$31 Billion (1) Total Assets .

000ft water depth Drill ship – Deepwater Pathfinder First Ultra-Deepwater Dual-Activity Drill ship – Discoverer Enterprise First Fifth-Generation Semi-submersible Rig – Sedco Express  1985:  1986:  1996:  1999:  1999:   2000: .TRANSOCEAN TECHNOLOGY FIRST’S      1954: 1963: 1971: 1972: 1977: World’s First Offshore Jackup Drilling Rig – Rig 51 World’s First Turret-Moored Drill ship – Discoverer I First Dynamically Positioned Drill ship – Sedco 445 First DP Exploratory Well (1.000 Ft WD – Transocean Leader First 10.300 Ft WD Brunei) – Sedco 445 World’s First Dynamically Positioned Semi-submersible – Sedco 709 World’s First Fourth-Generation Semi-submersible – Polar Pioneer First Rig To Drill Year-Round In The Barents Sea – Transocean Arctic First Rig Capable Of Year-Round Operations West Of Shetland Deeper Than 4.

000 ft . – vertical (Deepwater Nautilus) 10.960 ft.OFFSHORE LEADERS Hold 19 of the past 23 Drilling Records: ● ● ● ● ● World Record Water Depth (Discoverer Deep Seas) World Record Subsea Completion (Deepwater Millennium) World Record Moored Operations (Deepwater Nautilus) Deepest Oil & Gas Wells 34.613 ft. 50% of the wells > 25. – measured (Discoverer Spirit) 32.189 ft. 8.951 ft. Drilled 80% of deepwater wells >30. 8.000 ft.011 ft.

100 ft just gets to the sea floor so drilling can begin • Water pressure is about 3.500 psi (237atm) • Riser Joints are 75-ft long.HOW DEEP IS ULTRA-DEEP? Discoverer Enterprise in 8.100ft Water Depth • 8. so 108 joints are needed • Everything is done through a 21-in. diameter pipe .

The AD is the eyes and ears of the driller outside the drillers’ cabin  Derrickman  Stands back pipe at the finger board and looks after the mud processing  Roughneck  The rig floor laborer. performs all types of tasks on the drill floor  Barge Supervisor  Responsible for the marine operation. manages cranes and deck crew  Roustabout  General laborer. material handling  Maintenance Supervisor  Manages the maintenance and upkeep of the installation .PEOPLE ON THE RIG…  Company Man  Client Representative onboard the rig  Offshore Installation Manager (OIM)  Responsible for all operations onboard the rig  Toolpusher  Responsible for all drilling-related activities  Driller/Assistant Driller (AD)  Runs the drill floor.

India. Middle East) . SE Asia.  Worldwide operations (West Africa.  Drilling Package “cantilevers” off the stern of the hull for drilling while operating.ASSETS – Jackup Rigs (25 Units)  Water Depth Range: 25-ft to 350-ft  Exploration (open water) or platform locations  Bottom Founded – (3) or (4) legs which elevate the hull above the water while drilling.  Spud cans attached to the bottom of the legs are supported by the soil.

ASSETS – SEMI SUBMERSIBLES  Moored and/or Dynamically Positioned  Similar Water Depth Capability to Drill Ships  Improved Motion Response over Monohull Drill Ships  Harsh Environment Operations  Generally less payload than Drill ships .

high deck load allows for operations in remote areas with limited re-supply  Hydrocarbon storage capabilities for extended well testing (on the larger ship classes) .ASSETS – DRILL SHIPS  Self-propelled. dynamically positioned .no mooring system or anchor handling required  Ultra-deep water depths (10.000-ft and beyond)  Very high deck load (carrying capacity)  Moderate Environment drilling and completions  Well-suited to exploration drilling programs.

recently sold by Transocean)  Swamp Barge (Also called a Posted Barge) – for very shallow sheltered water locations.D. all erected on the platform. China – sold by Transocean) . power generation. typically for platform development drilling (Cliffs Drilling 1 shown offshore Hianan. swamps and river deltas (Searex 6 shown working Niger River Delta)  Self-Contained Platform Rig – Has its own quarters. Kent shown working offshore Sarawak.ASSETS – OTHER RIG TYPES Self-Erecting Tender Swamp Barge Platform Rig  Self-Erecting Tender – Monohull barge with heavylift crane for erecting the drilling package on each platform drilling location (W.

JACKUP HAZARDS  Severe Weather  Jackup rigs are most vulnerable when afloat and under tow  Hurricane/Cyclone damage while elevated  Punch-through  Sudden failure of the soils while preloading  Blowout .

FLOATING VESSEL HAZARDS  Hurricane Damage  Loss of station due to overload of mooring system  Grounding  Topside wind damage  Loss of Buoyancy  Collision  Uncontrolled Flooding  Well Control (subsea blowout)  Blowout can cause build-up of sediment onboard. causing loss of stability .

MAJOR TOPICS  Company Overview  Transocean Heritage and Legacy  Assets  Drilling Offshore Wells     Arrival on Location Primary Drilling Equipment Offshore Well Construction Life Offshore  The Transocean Advantage  What makes Transocean THE PREMIER OFFSHORE DRILLER .

RIG TRANSPORT  Wet Tow  Historically the most common method of moving a rig  Common for field moves and short transits  Slow speed. but makes good sense considering reduced transit time  Increasingly common for long transits  Speeds around eleven knots  Limited availability of suitable vessels . usually less than five knots  Dry Transport  Expensive.

Theos) used to position the rig exactly on coordinates  Legs engage the seafloor (pinning on location  Operator (client) approves the position  Anchors are run (Platform Locations) .JACKUP  Positioning the Unit on Location  Unit is towed to the location by one or more tugs  Legs are lowered as the unit approaches the drilling coordinates  Positioning Company (Racal.ARRIVAL ON LOCATION .

 Full Preload is held for 6 hours to test foundation at final penetrations .JACKUP  Preloading and Jacking  Hull is elevated to zero air gap (bottom of the hull at the water surface)  The legs penetrate as the soil beneath the can fails until there is sufficient soil strength to support the weight of the rig.  Preloading is the process of testing the foundation beneath the rig against predicted storm loads  Accomplished by adding ballast water to the weight of the hull to simulate the loads the legs would see during a storm encounter  As water ballast is loaded onboard.ARRIVAL ON LOCATION . the legs sink further into the soil.

JACKUP  Prepare for Drilling Operations  The hull is elevated to operating air gap  The cantilever is unlashed and skidded out over the well  Operations Commence Trident 15 – Exploration Location Simultaneous Operation.ARRIVAL ON LOCATION . Platform Skid-off and Platform Load-Sharing with 2 Jackup MODUs Roger Mowell – Platform Location .

ARRIVING ON LOCATION – MOORED Different Moorings for Different Water Depths .

ARRIVING ON LOCATION – MOORED Running Anchors Wire Chaser The rig passes a chaser pendant wire to the anchor handling boat. J-Lock Chaser .

the rig pays out chain or wire. The anchor is suspended behind the boat .ARRIVING ON LOCATION – MOORED Running Anchors As the boat moves away from the rig to the anchor position.

. The rig hauls in chain or wire to set and tension the anchor.ARRIVING ON LOCATION – MOORED Running Anchors 15-tonne Vryhof Anchor The anchor handling tug lowers the anchor to the seafloor on a work wire.

ARRIVING ON LOCATION – MOORED Running Anchors Anchor Handling Tug/Supply Vessel The pendant and chaser are stripped back to the rig and passed back via rig crane. .

ARRIVING ON LOCATION – DP Units Position Reference – Staying on Location  Input:  Environmental Loads and Direction  Senses Wind Speed and computes force to resist  Acoustic Signal  Beacons placed on seafloor and monitored by hydrophones onboard  Satellite Positioning (DGPS)  Multiple Satellites at same time  Output:  DP system allocates thrusters to resist external force and maintain station Correction signal Reference Station .

PRIMARY GROUPS OF DRILLING EQUIPMENT  HOISTING  ROTATING  CIRCULATING  WELL CONTROL AND RISERS  TUBULAR HANDLING  POWER MANAGEMENT  DRILLING CONTROLS Drilling ahead on the Discoverer Enterprise .

 Several Types:      Conventional Derrick Drilling Mast Dual Activity Derrick Ram Rig Tri-Act Derrick . used for hoisting of heavy loads in and out of the hole.HOISTING EQUIPMENT The Drilling Derrick  The predominant structure on the drilling rig...

HOISTING EQUIPMENT The Drawworks  The primary hoisting machine. located on the drill floor used to hoist loads into and out of the hole  Several Types:  Conventional Electric Hoist  Active Heave Compensating Drawworks National AHD1000 Active Heave Compensating Drawworks  Power  varies from 2000 to 6000hp  Hoisting from 500-tons to 1250-tons Continental Emsco Electrohoist Drawworks .

HOISTING EQUIPMENT  Traveling Assembly  Blocks  Traveling Block The sheave cluster around which the drill line is reeved to provide necessary lifting capacity In-line Drill String Compensator  Drillstring Compensator  Prevents vessel heave (vertical) motions from being transmitted to the bottom of the drill string  Several types – In-line.5. “Motion Compensator” . positioned on top of the derrick Hook  Hook  Not all rigs have hooks. but where fitted. and crown-mounted. the top drive bails are connected to the traveling assembly Crown-Mounted Compensator Play Oilwell Drilling Series Vol. which hangs from the blocks.

tools and materials around the rig • • • • Drill Floor Cellar Deck Moonpool area Manriding . off and around the rig • • • • Tubulars Risers General Handling Offloading Work Boats • Air Tuggers – Used to move equipment.HOISTING EQUIPMENT Cranes and Material Handling • Cranes – Used extensively for moving materials on.

the rotary is used primarily to orient drill string while drilling directionally with downhole motors Rotates the drill string from the top Allows drilling one a full stand (3 joints) of pipe between connections Keeps the rotating drive train above the floor Top Drive Drilling  Rotary Drilling  Top Drive System    .ROTATING EQUIPMENT Making the drillstring turn to the right…  Rotary Table   The rotary table turns the bit and drill string while drilling Uses a bushing which turns a square or hexagonal joint of pipe called a kelly which transmits torque into the bit Today.

DRILL STRING  Drill Bits  Various designs for different formations  Fixed and rolling cutters  Fluid jets from the bit and up the annulus  Bottom Hole Assembly  Drill collars are heavy. thick wall drill pipe added above the bit to help set the weight of the bit on-bottom  Drill Pipe  Most drilling operations are conducted with drill pipe  Delivers drilling fluid to the bottom of the hole  Landing strings help lower casing and tubing to the sea floor Play Oilwell Drilling Series Vol.1. “Drill Bits” .

Mud Systems” . and Prevent loss of pressure control in the well.  Mud is returned to the active mud pits. Keep the hole open while drilling to allow casing to be run and cemented in place. Desilters and Mud Cleaners remove the fine silts and cuttings from the fluid using hydrocyclones Circulating mud is used to: Bring the cuttings generated by the bit to the surface.CIRCULATING SYSTEM  Drilling Fluid (mud) is pumped down-hole by high pressure pumps  Fluid jets out of the bit and returns to the surface through the riser  Mud is conditioned:  Shale shakers sift out the large cuttings by running the returned fluid over vibrating screens  Degassers remove any small gas bubbles entrained in the fluid  Desanders. to be pumped down-hole again Play Oilwell Drilling Series Vol.4. “Overiew.

CIRCULATING SYSTEMS Mud Pumps • 2200hp reciprocating slush pump: • 375GPM at 7500psi • 960GPM at 3500psi • Change out fluid end liners to modify flow rate • Creates “pulses” in the fluid flow and pressure from reciprocating motion • New Technology HEX Pump • No fluid pulse • No liner changes • Consistent flow rates and pressures .

MUD PROCESSING EQUIPMENT  Gumbo Conveyors  Gumbo (sticky clay) can clog mud systems and is removed before the shale shakers  Shale Shakers  Separate large cuttings from the drilling fluid with vibrating screens  Degassers  Remove gas from the drilling mud before returning to the active pits  Desanders and Desilters  Remove smaller sediments from the liquid mud  Mud Cleaners  Combines the function of the shaker. . desander and desilter in one machine Photos courtesy Derrick Equipment Co.

15. 10. “Pressure Control” .WELL CONTROL Blowout Preventers Surface Blowout Preventer Stack 13-5/8-inch.000psi Subsea Blowout Preventer Stack 18-3/4-inch.2.000psi Play Oilwell Drilling Series Vol.

WELL CONTROL Choke and Kill Manifold  Manage Gas and Fluids coming out of the well under high pressure  Choke – Orifice through which high pressure gas and fluids can be bled off the well under control  Kill – Ability to pump heavy fluid (pills) down the hole to suppress the high pressure gas/fluids in the wellbore Skid-mounted. vertical choke and kill manifold  Blowout – What happens when pressure control is lost… .

2. the riser is connected to the rig with a telescopic joint  Riser tensioners cancel out vesssel heave similar to drill string compensators  Many joints have foam buoyancy modules attached to reduce the in-water weight and reduce required tension Slick Marine Drilling Riser Joint Running a riser joint. mud boost and hydraulics for BOP controls  Flex joints at the top and bottom allow rotation of the riser  At the top.MARINE DRILLING RISER Connecting the Rotary to the Sea Floor…  Acts as a conduit for returning cuttings and mud to the surface  Drilling operations are conducted inside the riser pipe  Auxiliary lines for well control. “Subsea BOPs” . using the gimbaled spider Play Oilwell Drilling Series Vol.

TUBULAR HANDLING Pipe Handling Equipment Historically. pipe was manhandled into and out of the hole with a combination of air-powered tuggers and muscle… Many rigs today are equipped with one (or more) automated pipe racking machines which minimize the need for human interference with the operation… .

TUBULAR HANDLING Pipe Handling Equipment Drillpipe Tongs. Spinning and Torque Wrenches  Manual drillpipe tongs are used to make up or break out torque connections when running or retrieving pipe  The spinning wrench quickly threads or unthreads the connection  The combination tool (also called a Hawkjaw) can do both operations Drillpipe Manual Tongs Combination Wrench Spinning Chain Spinning Wrench .

TUBULAR HANDLING Pipe Handling Equipment  Iron Roughneck  Automates the spinning and torque functions of making and breaking tubular connections  Travels in and out from the well center  Elevates to “sense” the height of the tool joint .

Generators and Thrusters • Drilling Systems • Well Control Systems • Today’s control systems are highly sophisticated.CONTROLS AND INSTRUMENTATION Making it go when you push the button… • Engines. computer controlled networks. Conventional Drillers Console BOP Control Console Dynamic Positioning Console VICIS Drillers’ Chair .

POWER AND PROPULSION  Power Generation is a crucial rig function  Propulsion/Stationkeeping  Drilling equipment  Hotel/Auxiliary Loads  Primary Components  Diesel Generators  Switchgear  Transformers  Variable Frequency Drives  SCR Drives (DC Motors) 7.000HP Thrusters. Discoverer Enterprise  Power System redundancy is crucial to stationkeeping for DP vessels Diesel Generators .

 20-inch casing is run and cemented in place.  12-1/4-inch hole is drilled to preset depth. or surface casing is typically jetted into the sea floor.  17-1/2-inch hole is drilled to pre-set depth.  26-inch hole is drilled to pre-set depth.  9-5/8-inch casing is run and cemented in place. Wellhead is installed.  8-1/2-inch hole section is drilled to preset depth  7-inch production liner (hangs at the bottom of the 9-5/8 casing is run.  13-3/8-inch casing is run (hangs from the wellhead) and cemented in place.WELL CONSTRUCTION  Typical Drilling/Casing Program  The conductor. .

Basic. but Comfortable… .Offshore Living .

but Comfortable… Offshore living standards have improved steadily.Offshore Living . .Basic. Remote operations mean longer hitches This is also home for half of every year.

MAJOR TOPICS  Company Overview  Transocean Heritage and Legacy  Assets  Drilling Offshore Wells     Arrival on Location Primary Drilling Equipment Offshore Well Construction Life Offshore  The Transocean Advantage  Looking to the Future: .

NPT target < 0.NEXT GENERATION TOP DRIVE Modular Derrick Drilling Machine  Project launch 2004  1250T lifting capacity  10-year life between major overhauls  Robust & Reliable.1%  No critical path shutdown … maintenance while operating  Modular design for quick change-out of major components  Implemented on newbuilds .

ARCTIC SOLUTIONS Drilling in a Technically Demanding Environment  Design Imperatives     Extended Season Off-Season Marketability Operating Efficiency VDL for Multi-Well Campaign  Dual-Acting Hull  DP and Turret Moored  Deepwater capable in offseason  Dual Activity  Operating Displacement 65k MT .

2nd Generation Moored Floaters  Water Depths up to 1500-ft  New Capabilities:  Dynamically Positioned. ABS DPS-2 Class  6500-ft Water Depth  Moderate Environments  Enhanced Variable Load  Leading Edge Power Systems Sedco 702 Before Conversion .DEEPWATER CONVERSIONS Breathing New Life into Old Steel…  SEDCO 702 and 706  Vintage mid-1970s.

000 MT Dynamically Positioned Dual Activity Zero Discharge Facility Crude Storage Capability Discoverer Clear Leader under construction at DSME Shipyard. Okpo.NEWBUILD DRILLSHIPS Clear Leader Class DP Drill Ships Water Depth 12.000ft Drilling Depth 40. South Korea .000ft Length Beam Hull Depth Draft Disp VDL 837 ft 125 ft 62 ft 43 ft 100.000 MT 20.

Questions and Comments… .TRANSOCEAN We’re never out of our depth.

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