Regal Services 35, C. R. Avenue, 1 st Floor, Kolkata-700012 West Bengal, India.

Regal ServicesRegal Services

Drilling: Well Delivery Process

Regal Services 35, C. R. Avenue, 1st Floor, Kolkata-700012 West Bengal, India


Introduction to Well Delivery Process

"The Idea" to "Delivering the Promise" for a New Well

What is a Well Delivery Process? set of activities across time for planning, executing and closing a well project tools and techniques to manage resource allocation stage gates with proper responsibility allocation captures lessons learnt and best practices

Application Scalable format for all wells:

Long term, detailed process for exploration wells Short duration, simpler process for development wells

Well Delivery Process is a subset of Value Delivery Systems or Capital Value Process or Opportunity Realization Process (different terms used by different firms).

The application of WDP is in capturing lessons learnt, and providing tools that can be applied across organizational boundaries: RACI and Peer assist.

Regal ServicesRegal ServicesWell Delivery Process Flow

• Defines the direction of information flow, loops involved for repeat actions and clear milestones

• 5 process stages present in WDP

Input OutputTools

Activities

Deliverables Reviews

Stage Gate

Proceed to next stage

Template for a process stage

Scope Design Plan Operations Closeout

Well Delivery Process

Regal ServicesRegal ServicesWell Delivery Process Stages

Scope Question answered: Can we do it? Objective of Phase: Feasibility and Concept Identification

Design Question answered: What will it be? Objective of Phase: Develop selected Concept into a mature well design

Plan Question answered: How do we make it happen? Objective of Phase: Operational plans and procedures to construct the well design

Operations Question answered: Well execution Objective of Phase: Deliver the well/s Safely, On Time and On Budget meeting all the well

objectives set by the Asset Project Manager Closeout

Question answered: How well did we deliver? Objective of Phase: Wrap up and capture lessons

Regal ServicesRegal ServicesWell Delivery Process Flexibility

• cascading model for successive sub projects with a similar approach

Regal ServicesRegal ServicesWell Delivery Process Flexibility example : XXX

With same planning, the process can be limited to operations and closeout phase

Please note this model requires: JV approvals in place, Existing long term contracts. Continuous equipment replenishment Inventory “on the ground”. Standardized equipment (to allow for

changes

Operations Closeout

• Well Handover• Final Field Cost

• DDR’s/HSE Reports• Lessons Learned

• Final Well Cost• Drilling Program

• Risk Management Plan

• DDR’s/HSE Reports• Field Cost

• Lessons learned

• EoWR• Final Cost reconciliation

• Performance review• Lessons Learned

2-3 weeks

Regal ServicesRegal ServicesWDP flowchart summary

Preliminary SORTime writing code

Well feasibility and concept review report Time and Costs Estimate +/- 50%

Planning AFEProject Plan

Government regulatory assessmentLogistical assessment

Offset well reviewsStick Diagrams

Industry BenchmarkingPreliminary Casing, Wellhead, Cementing Designs

Preliminary Mud ProgramsPreliminary Time & Cost vs Depths

Potential Long Lead Equipment and Schedule

Input

Output

Activities

1. Scope

Final SORWell Prognosis

Time writing code Well feasibility and concept review report

Well Construction Basis of Design Bill of Materials

Purchase Requests IssuedRisk Register

Logistical planSite Surveys / Shallow Gas Assessment /

Meteorological Data (if required)/Boreholes (CPTs)Casing, Cementing & Wellhead Design

Mud ProgramCost for the Design

Cost & Time vs Depth curveProcurement Plan for services and tangibles

Project Quality Plan.Order Long Lead Equipment

2. Design


Input

Output

Activities

Well Construction Basis of Design Bill of Materials

Purchase Requests IssuedRisk Register

Well Prognosis

Operational Programs and ProceduresTime and Costs Estimate

Risk Register for PhaseHSE Bridging Documents

HAZIDS/HAZOPTechnical Limit Workshops

Training (HSE or Technical) & Team BuildingDrill Well On Paper (DWOP)

Set KPIs for the wellsLogistics and Mobilizations plans

Operational Programs and ProceduresProbabilistic Cost Estimate

Well Control Contingency Plan HSE Bridging Documentation

Emergency Response PlanContract Executions & Contractor Onboarding

Rig and Vendor Audits and Acceptance

3. Plan

Operational Programs and ProceduresFinal Cost Estimate

Risk Register for PhaseHSE Bridging Documents

Reporting System in Place (Well view)

Deliver the well/s, Daily Drilling reports Final Cost Estimate.HSE & DDRs Reports

Lesson Learned

HSE Coaching / Stop the Job / Stop CardsHSE Investigations & Reporting (KPIs)

Incident InvestigationsQA/QC Control

Daily Drilling ReportsCapturing Lesson Learnt / After Action Reviews

Opportunity RegisterRisk Assessments

Partner & Government updatingGovernment permit complianceInternal Management Updates

4. Operations


Input

Output

Activities

Drilling reports Final Cost Estimate.HSE & DDRs Reports

Lesson Learned

Final Well ReportFinal Cost Reconciliation

HSE & Performance ReviewsLessons Learned

HSE ReviewCost Reconciliation

Full Performance ReviewClose out of any investigations

Wrap up meeting with all service providersCapture all Lessons and new practices learned

Status of Material and InventoryResource re-allocation to new projects

Final Cost EstimateFinal Drilling Report

5. Closeout

Regal ServicesRegal ServicesWell Delivery Process Project Plan

• Intended to act as a sample• Timeline for the Well Delivery Process• Estimate of the days/weeks required for every stage with dependent

successive stages • Helps to plan the procurement activities better• Risks and uncertainties in the system can be accounted for• Can be modified as the project progresses, to keep a reality check on the

milestones and deliverables. Task Mode

Task Name Duration Start Finish Predecessors

Well Delivery Process 160 days Fri 10/10/14 Thu 5/21/15Scope Phase 2 wks Fri 10/10/14 Thu 10/23/14Design Phase 1 wk Fri 10/24/14 Thu 10/30/14 2Plan Phase 18 wks Fri 10/31/14 Thu 3/5/15 3Operations Phase 10 wks Fri 3/6/15 Thu 5/14/15 4Closeout Phase 1 wk Fri 5/15/15 Thu 5/21/15 5

9/28 10/26 11/23 12/21 1/18 2/15 3/15 4/12 5/10 6/7September 1 November 1 January 1 March 1 May 1

Sample Project Plan Summary

Regal ServicesRegal ServicesApproximate Planning Times for WDP

• XX Development wells* = 2 – 3 weeks• XX Exploration wells* = 2 – 4 weeks• XX Dev & Exp wells** = 18 – 20 months• Land well (in India, outside RJ)** = 18 - 20 months• JU well (in India)** = 18 - 20 months• JU well (outside India)** = 18 - 24 months• HTHP JU/Semi wells ** = 18 - 24 months• DW Wells (in India)** = 18 - 24 months• DW wells (outside India)** = 24 – 30 months

*Assumes all contracts and tangibles in place. Team in place. Indicates ability to change the plan.

**Assumes no contract/tangibles in place (14 -18 months to contract and deliver tangibles). Assumes recruit new team

Regal ServicesRegal ServicesWell Delivery Process Highlights

• Well Delivery Process flowchart: Flowchart defining different activities and stage gates for all phases.

• Well Delivery Process manual: A guide to understand the WDP• Template to follow for different stages:

– Input required/expected– Activities to be performed – Key deliverables– Output– Stage gate

• RACI matrix: Matrix defining the key stakeholders for every activity phase wise. People Responsible, Accountable, Consulted and Informed to be defined.

• Project Plan: MS Project Plan showing the timeline for the Well Delivery Process. • After Action Review: Long term review session which shall be a platform to share

lessons learnt, best practices and introspective feedback for the team.


Stage Gate Reviews• Completion of the deliverables set for the stage• Usage and updating of tools employed in the stage• Budget and resource deviation during the stage from the allocation at

the initiation of the stage• Budget and resource allocation for proceeding to the next stageAfter Action Reviews On time deliveries of milestones Exceptions to processes Management of changes undertaken Budget compliance Lessons learnt and best practices

Regal ServicesRegal ServicesPossible Implementation Concerns

• Management commitment: An effective WDP requires serious management commitment. The investment required in the planning phase and milestones, requires a certain amount of pressure from the management.

• Process tools: WDP tools can act like black boxes. The input and output is very clear, but the methodology may not be. However, they can be developed as standard templates (e.g. simple spreadsheets or MS Excel). This way, not just the tool, but the ownership of the tool stays with the team.

• Effective application: Usage on a regular basis and updating based on changing needs. The tool needs to be flexible enough to change according to requirement. Also, appropriate training and skills need to be present to understand the tool and make it a part of routine.

• Keenness to listen: Spotting opportunities to improve planning and management requires inclusion of stakeholders. This not only includes learning from the past and applying it in your planning, but also learning from your service providers and their experiences.

• Time optimization: Parallel engineering can help reduce the process time for drilling wells.


Examples of things we do as part of Well Delivery Process

Regal ServicesRegal ServicesDrill Well on Paper (DWOP)

• Pre-requisites:– Finalized Well design– Draft Drilling program– Contracts in place.

• Process:— Technical meeting involving all contractors, internal & external stakeholders

(JV) held generally 1-2 months before campaign start. — Detailed operational procedures are discussed in sequence as in a live well.— Operations include logistics, mob plans of services as well.

• Outcome:― Procedural changes/inputs for finalizing Drilling program.― Any show stoppers regarding equipment or services.


Risk Register• Pre-requisites:

– Draft Drilling Program– DWOP conducted.

• Process:— Drilling internal meeting held post DWOP.— Risks pertaining to well conditions (temp, press, trajectory, etc.) as well as

operational procedures (well control, cementing, etc.) are identified.— Impact, severity & likelihood of each risk is assessed.— Then each risk is categorized into High, Medium or Low.— Finally mitigations against each risk is identified & listed.

• Outcome:– High & Medium level risks to be stressed in final Drilling program.– Risk matrix to be included in final Drilling program.


HAZID/HAZOP

• Pre-requisites:– Operation-specific detailed procedures.

• Process:— HAZID/HAZOP study is conducted either in-house or using a third party expert

generally after the DWOP session — Conducted for a specific high risk operation like MPD, well testing, etc.— First hazards occurring from any element of the operation are analyzed

(HAZID).— Then hazard operability study is conducted for each identified hazard (HAZOP).

• Outcome:– HAZID/HAZOP matrix to be included in Final Drilling program.– Also to be part of the specific operation program.


AFE

AFE for a well is Authorization For Expenditure.

• It is the final estimate of the overall cost which would be incurred for the complete campaign & is presented to management for approval.

• Made after the well design is finalized & other technological requirements are known.• Typically includes:

– Tangibles (casings, wellheads, etc.)– Drilling services rentals (DD, cementing, casing running, etc.)– Drilling rig rental– Drilling fluids & chemicals– Cement & additives– Logistics– Jetty, AHTS & helicopter rentals (if offshore)

• AFE is the final step in well planning.


Technology Innovation

Regal ServicesRegal ServicesTechnology Innovation

Manage Pressure Drilling:• Manage Pressure Drilling (MPD) Technology is used to drill narrow Pore Pressure- Fracture

Pressure wells. Typical example of such wells are HT/HP and deep-water wells. Key drivers for MPD are as follows:

• Reduce non-productive time arising from kicks, lost circulation and stuck pipe when the well is drilled conventionally.

• Minimize overbalance too Increase ROPo Avoid differential stickingo Prevent lost returnso Reduce invasive formation damage

• Maintain constant bottom hole pressure to avoid wellbore ballooning• Identify tight gas zones • Enable faster kick detection because if better flow measurement• Enable dynamic well control methods

Regal ServicesRegal ServicesMPD P&ID Diagram-Simplified



Micronized Barite mud:• Micronized Barite employs micronized weighting material (barite) to address a number of

drilling problems, including barite sagging. WARP Fluids Technology deliver more added-value benefits compared with conventional mud systems.

• Micronized Barite Technology is ideal for horizontal and extended-reach wells due to no barite sagging tendency.

• Micronized Barite Fluids Technology provides lower plastic viscosities over conventionally weighted fluids with the same yield point.

• Improved solids-separation efficiency results in less dilution, optimum product performance and reduced costs.

• Improved pressure drops in narrow annuli make Micronized Barite Fluid Technology the ultimate alternative to brine-weighted fluids.

• Systems using Micronized Barite Fluids Technology have demonstrated improved QHSE characteristics compared to conventionally weighted brine systems.

• Micronized Barite Fluids Technology has improved torque in open and cased holes by as much as 25% compared to offset wells drilled with conventional weighting agents.



Riser Analysis:• Risers are used to drill and complete wells in deep- and ultra-deep water are typically

deployed from MODUs (mobile offshore drilling units) example drill ships, semi-sub rigs.• Riser analysis aims at determining the best riser assembly for a given rig, mud weight,

water depth, sea state, current, tensioner system, hook load limit, and riser joint inventory.

• Focus of Riser Analysis is to assure that the riser system and floating MODU stay within proper load and motion limits and that the riser system is capable of safely enduring any fatigue or corrosion damage that may occur.

• A typical example is shown in next slide:


Additional services

• Work over operation – • water shut off • Increase productivity• Rectify annular pressure problem• Redesign existing well – cost saving• Drill to limit process – huge cost reduction• Simplify completion design – reduce cost• Supply of well consumables• Supply of rig equipments• Well services : Mud, logging, coring directional drilling• For one shore land accusation, site preparation• Rig and equipment inspection - confirm suitability.


Additional services

• Well test services for onshore and off shore• For off shore :• Set up and manage off shore supply/shore base• Set up and manage helicopter base • Train local personal


For more information, please contact…35, C. R. Avenue, 1st Floor, Kolkata-700012 West Bengal, IndiaT: +91 33 2357 2591, F: +91 33 2357 6800, E: [email protected] W: www.regaltech.net

Thank you for your valued Time…

Regal Services 35, C. R. Avenue, 1 st Floor, Kolkata-700012 West Bengal, India.

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