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DOC ID © Chevron 2005 Drilling Overview for Non-Technical People Rio de Janeiro Brazil July 21, 2008 Kyle Eastman

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Page 1: Drilling for Non Technical People.ppt

DOC ID© Chevron 2005

Drilling Overview for Non-Technical People

Rio de Janeiro BrazilJuly 21, 2008

Kyle Eastman

Page 2: Drilling for Non Technical People.ppt

DOC ID© Chevron 2005

AGENDA

Safety moment

Basic petroleum geology

Well construction basics

The drilling rig

“Drilling a Well” Animation

When thing’s go wrong

Frade specific information

Questions throughout the presentation

Page 3: Drilling for Non Technical People.ppt

DOC ID© Chevron 2005

Safety Moment

Video to show “planning can make it possible”

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Page 5: Drilling for Non Technical People.ppt

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Basic Petroleum Geology

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During drilling rock characteristics and associated drilling conditions can change many times, therefore an understanding of the anticipated geology is essential for properly designing the well and then drilling it efficiently and safely.

Geology is critical for well designGeology is critical for well design

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DOC ID© Chevron 2005

Non-Reservoir:• Igneous: Rocks formed by

solidification of hot mobile material called magma

• Metamorphic: Rocks formed by transformation of pre-existing igneous or sedimentary rocks as a result of high temperature and pressure

Reservoir:• Sedimentary: Rocks formed from

accumulations of sediment which may consist of rock fragments of various sizes, the remains of animals and plants, the product of chemical action or evaporation, or a combination of these. Most petroleum reservoirs are found in sedimentary rocks, mainly sandstone, limestone and dolomite because they have porosity.

Types of RocksTypes of Rocks

Shale

Sandstone

Limestone

Calcareous shale

Anhydrite

Argillaceous Limestone

Quartz

Conglomerate

Dolomite

Clay

Lignite

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DOC ID© Chevron 2005

Prospect ComponentsProspect Components

24803

Petroleum System ElementsPetroleum System Elements

Source RockSource Rock

Top Seal RockTop Seal Rock

Reservoir RockReservoir Rock

Anticlinal TrapAnticlinal Trap

(Organic Rich)(Organic Rich)

(Impermeable)(Impermeable)

PotentialPotentialMigration RouteMigration Route

Faults & FracturesUnconformitiesSalt Faces and WeldsPorous and Permeable Beds

In the example above the source rock is connected to the reservoir by a fault (migration route). As hydrocarbons are expelled from the source they travel along permeable paths created by the fault. The oil will them migrate through the reservoir to the top of the structure due to buoyancy effects where they are trapped by the overlying impermeable formation

(Top Seal)

Page 9: Drilling for Non Technical People.ppt

DOC ID© Chevron 2005

Well Construction Basics

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Well ConstructionWell Construction

Well construction is an engineering design process that

starts with a clear understanding of the objectives to be

achieved. As a minimum, the following data are required to

commence the design and planning process

•Well depth•Location – land, offshore (water depth)•Geology – lithology, structural features, hazards,

stability•Formation Pressure profile•Fracture Gradient profile•Downhole target(s) – vertical or directional well•Type of well – exploration, delineation, appraisal, development•Evaluation requirements – sampling, coring, logging,

testing•Type of fluid and anticipated flow rates

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DOC ID© Chevron 2005

Drilling FluidDrilling Fluid

Transport cuttingsto surface

Control subsurfacepressures

Support & stabilizethe wellbore

Cool & lubricatethe bit

Minimize lossof circulation

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DOC ID© Chevron 2005

CasingCasing

Any given well requires several strings of casing, starting with the largest diameter pipe on top. Subsequent strings of casing are progressively smaller in diameter as they must pass through the inside of the previous casing. The diameter of the deepest casing is generally dictated by the size of the production tubing required for anticipated flow rates.

The primary purpose of each casing string is to isolate one geological regime from the other and enable further drilling with full control of anticipated downhole pressure conditions of the next interval. An understanding of downhole pressure variations is essential for selecting the setting depth of each casing.

Conductor

Surface

Intermediate

Production

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DOC ID© Chevron 2005

CementCement

Casing

Casing Support

Casing bonded withformation rockssupports its ownweight andload of surfaceequipment that ismounted on it

Cement

Zonal Isolation

Properly cementedcasing preventscommunicationbetween zonesof differingcharacteristics toenable drillingdeeper

Low pressureloss zone

Higherpressurepermeablezone

Casing Casing ProtectionProtection

Some formations Some formations contain fluids that contain fluids that can attack casingcan attack casing

Page 14: Drilling for Non Technical People.ppt

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Roller Cone BitsRoller Cone Bits

Tungsten carbide insert (TCI)

Milled Tooth

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Fixed Cutter BitsFixed Cutter Bits

PDC, Polycrystalline Diamond Compact

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Diamond Bit Terminology & Diamond Bit Terminology & FeaturesFeatures

Junk Slot

Breaker Slot

API PinConnection

Diamond Gauge

Shank

Crown

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Coring BitsCoring Bits

Cutters made from diamonds or PDC

Various profiles depending on formation or rock properties

Numerous sizes to accommodate rock recovery objectives

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What is Directional DrillingWhat is Directional Drilling

Directional wells are deviated from Vertical (Straight)

Directional wells are drilled with intention to control :

inclination (angle)

azimuth (direction).

Think 3-D when Directional

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Why Drill DirectionalWhy Drill Directional

On Land:

Surface constraint due to land owner, natural event, etc.

Relief well in blowout situation

Horizontal

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DOC ID© Chevron 2005

Why Drill DirectionalWhy Drill Directional

Offshore:

Save Cost on Platforms

Relief well in blowout situation

Horizontal

Extended Reach

Multi-Lateral

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The Drilling Rig

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Main Systems of a Drilling RigMain Systems of a Drilling Rig

Hoisting

Rotating

Circulating

Power

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Hoisting SystemHoisting System

Used for raising and lowering the drilling assembly, and for running casing, completion equipment and other tools in and out of the hole.

CROWN BLOCK

DERRICK

DEAD LINEFAST LINE

DRAWWORKS

HOOK

TRAVELING BLOCK

DEAD LINE ANCHOR

DRILLING LINESUPPLY SPOOL

ROTARY TABLE

SUBSTRUCTURE

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Rig Floor

Auxiliary Brake

Console&

Controls

Drawworks

Rotary Table

Typical Rig Floor LayoutTypical Rig Floor Layout

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Driller’s ConsoleDriller’s Console

Gauges read:•Hook load•Weight on bit•Pump pressure•Pump strokes•Rotary speed•Torque•Mud volume•Change in mud

volume•Return mud flow•Alarms and limitswitches can be set

forcritical measurements

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Driller’s Console – Modern RigDriller’s Console – Modern Rig

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Rotating SystemRotating System

Rotary Tableor Top DriveRotates theDrill String

The Drill Stringacts as the

connecting linkwith the bit

The Bit Rotatesto Cut the Rock

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Rotating SystemRotating System

A hexagonal or square pipe, called Kelly, is connected to the topmost joint of the drill string. The rotary table and Kelly drive bushing impart rotation to the drill string while allowing it to be moved up or down.

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Rotating System – Top DriveRotating System – Top Drive

As an alternative to the Kelly and rotary table, most modern rigs employ a Top Drive system for rotating the drill string. A powerful electric or hydraulic motor is suspended from the travelling block.

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Circulating SystemCirculating System

During drilling, fluid is continuously pumped down the drill string, through the bit, and up the annular space between the hole and the drill string. Its main purpose is to bring up the cuttings, cool the bit, maintain hole stability, and prevent formation fluids from entering the wellbore.

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Two Mud Pumps – fully hooked-upTwo Mud Pumps – fully hooked-up

Electric motor

Pulsation dampener

Suction chargepumps

Suction tank

Triplex pumps

High pressuredischarge line

Pump suction line

Page 32: Drilling for Non Technical People.ppt

DOC ID© Chevron 2005

Electric Rig Power SystemElectric Rig Power System

Most modern rigs are electric.Generally, large diesel engines are the primary source of power. Electric power generated by theengines is first converted from AC to DC in the Silicon Controlled Rectifier (SCR) unit. DC motors supply power to the drawworks, rotary, and pumps. AC power is still used for auxiliary equipment.

More and more AC motors are taking the place of DC motors

SCR&

ControlSystem

Driller’sConsole

Motor

Motor

Motor

Motor

Drawworks

Rotary

Mud Pumps

Engines & Generators

Page 33: Drilling for Non Technical People.ppt

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Land RigPlatform

Jack-upSemi-Submersible

Drill ShipT.L.P.

Types of Drilling RigsTypes of Drilling Rigs

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Platform RigPlatform Rig

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Derrick cantileveredover stern of hull

Well conductor

Jackup RigJackup Rig

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Semi-submersible Rig

Cajun Express

Semi-submersible RigSemi-submersible Rig

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Transocean “Discoverer 534” and “Discoverer

Enterprise”

Transocean“Deepwater Discovery”(+800ft long)

Drill ShipsDrill Ships

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Inland Barge

Semisubmersible

Land

Jackup

Drillship

Types ofDrilling

Rigs

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“Drilling a Well” Animation

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When Things go Wrong

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Brazil – Frade Specific Information

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Rio de Janerio

Brazil

Scale 100 km

FradeFradeP10: 128 (60)P10: 128 (60)

P50: 258 (120)P50: 258 (120) P90: 349 (163)P90: 349 (163)

FradeFradeP10: 128 (60)P10: 128 (60)

P50: 258 (120)P50: 258 (120) P90: 349 (163)P90: 349 (163)

AtlantaAtlantaP10: 244 (45)P10: 244 (45)P50: 305 (56)P50: 305 (56)P90: 382 (70)P90: 382 (70)

AtlantaAtlantaP10: 244 (45)P10: 244 (45)P50: 305 (56)P50: 305 (56)P90: 382 (70)P90: 382 (70)

OlivaOliva74 MMBOE74 MMBOE

OlivaOliva74 MMBOE74 MMBOE

MarombaMarombaP10: 72 (20)P10: 72 (20)

P50: 127 (34)P50: 127 (34) P90: 217 (59)P90: 217 (59)

MarombaMarombaP10: 72 (20)P10: 72 (20)

P50: 127 (34)P50: 127 (34) P90: 217 (59)P90: 217 (59)

Papa-TerraPapa-TerraP10: 245 (83)P10: 245 (83)

P50: 334 (113)P50: 334 (113) P90: 467 (157)P90: 467 (157)

Papa-TerraPapa-TerraP10: 245 (83)P10: 245 (83)

P50: 334 (113)P50: 334 (113) P90: 467 (157)P90: 467 (157)

Brazil Reserves Overall1.098 BBOE Gross0.374 BBOE CVX Net

BM-C-4BM-C-4Guaraná ProspectGuaraná Prospect

BM-C-4BM-C-4Guaraná ProspectGuaraná Prospect

Brazil Overview Reserves shown in MMBOE Gross (Net)Reserves shown in MMBOE Gross (Net)

Frade Field

120 kms offshore Brazil

Water Depth 1050-1300 m

Discovered in 1986

First oil: GO-36 Forecast April 2009

Concession through 2025

RoncadorRoncadorRoncadorRoncador

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Drilling Program 3 Stratigraphic Wells 12 Horizontal Producers 7 Near Vertical Water Injectors

FPSO Converted VLCC tanker 1.5 MM bbls storage Turret mooring w/ tandem offloading

Topsides Design Capacities Oil: 100 kbpd Liquid: 150 kbpd Produced H2O: 130 kbpd

H2O Injection: 150 kbwpd Gas: 106 mmscfd

Transportation Oil: Tanker (Suezmax) - GoM Gas: Pipeline (BR infrastructure)

Capex

2.5 B$ Gross

1.3 B$ CVX Net

1st Production Nov-Dec 2008

30 Months Execution Phase Commenced Phase 4 2Q 2006

Reserves P1 : 88 MMBO P50: 243 MMBO P90: 328 MMBO

Frade ProjectDevelopment Overview

Page 54: Drilling for Non Technical People.ppt

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Well Planning

Stratigraphic Wells

Detailed wireline logging program

Extensive coring program

Data used by reservoir engineers and geologists to further appraise the field

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DOC ID© Chevron 2005

Seismic Arbitrary LineStratigraphic Well - MDS1

PGS_NearMid_11_20

ESE

0 500meters

PSDM07_10-20FinalStack

PSDM Depth

WNW

2000m

2500m

Top N580

OligoceneN545_2

N560

Axial N570

Azul

MDS1

Basemap

MDS1

Core PointTD

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DOC ID© Chevron 2005

Well PlanningStratigraphic Well

WELL FIELD STRUCTURE

Magnetic Parameters

Model: Dip:

Mag Dec:

Date:

FS:

Surface Location

Lat:

Lon:

Northing:

Easting:

Grid Conv:

Scale Fact:

Miscellaneous

Slot:

Plan:

TVD Ref:

Srvy Date:

MDS1 FRADE MDS1

BGGM 2007 -38.800°

-23.123°

December 20, 2007

23629.5 nT

UTM Zone 24S - WGS84, Meters

S21 53 43.805

W39 49 47.404

7578508.00 m

414279.00 m

+0.30947660°

0.9996907915

MDS1

MDS1 v7 20dec07

Rotary Table (14.00 m above MSL)

December 20, 2007

0

400

800

1200

1600

2000

2400

0

400

800

1200

1600

2000

2400

-800 -400 0 400 800 1200

-800 -400 0 400 800 1200

Vertical Section (m) Azim = 290.12°, Scale = 1(cm):125(m) Origin = 0 N/-S, 0 E/-W

TV

D S

cale

= 1

(cm

):125(m

)

Tie-In

Mud Line

13 3/8" Casing PointKOP

Survey Station

TD

MDS1 v7 20dec07

MDP1 rev2:T-1

ODP1:T-1

MDS1 04dec07

36" Casing Point

LegendMDS1 v7 20dec07

ODP1:T-1MDS1 04dec07MDP1 rev2:T-1

1 Stratigraphic Wells1 Stratigraphic Wells

Max Deviation = 28Max Deviation = 28oo

MUS2MUS2

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Well Planning

Injector Wells

Located on the periphery of the Frade field

Used for injecting produced water to maintain reservoir pressure support.

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Subsea Layout

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Seismic Arbitrary LineODI1

PGS_NearMid_11_20

North

0 500meters

PSDM07_10-20FinalStack

PSDM Depth

South

2000m

2500m

ODI1

Basemap

Oligocene

N560

N570

Azul

Top N545_

1Top

N545_2

ODI1

TD

Water Injection Completion

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DOC ID© Chevron 2005

Well PlanningInjector Well

WELL FIELD STRUCTURE

Magnetic Parameters

Model: Dip:

Mag Dec:

Date:

FS:

Surface Location

Lat:

Lon:

Northing:

Easting:

Grid Conv:

Scale Fact:

Miscellaneous

Slot:

Plan:

TVD Ref:

Srvy Date:

ODI1 FRADE ODI1

BGGM 2007 -38.800°

-23.122°

December 07, 2007

23630.2 nT

UTM Zone 24S - WGS84, Meters

S21 53 58.167

W39 49 24.103

7578070.00 m

414950.00 m

+0.30711567°

0.9996893756

ODI1

ODI1 v5 07dec07

Rotary Table (14.00 m above MSL)

December 07, 2007

0

150

300

450

600

750

900

1050

1200

1350

1500

1650

1800

1950

2100

2250

2400

2550

2700

2850

3000

0

150

300

450

600

750

900

1050

1200

1350

1500

1650

1800

1950

2100

2250

2400

2550

2700

2850

3000

-400 -200 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400

-400 -200 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400

Vertical Section (m) Azim = 178.03°, Scale = 1(cm):200(m) Origin = 0 N/-S, 0 E/-W

TV

D S

cale

= 1

(cm

):150(m

)

Tie-In

Mud Line

36" Conductor Casing

20" Casing Point

13 3/8" Surface Casing

9 5/8" Production CasingTD

ODI1 v5 07dec07LegendODI1 v5 07dec07ODI1:T-1

7 Injectors7 Injectors

Max Deviation = 50Max Deviation = 50oo

ODI1ODI1

MUI1MUI1

MDI1MDI1

OUI1OUI1

MUI2MUI2

N5I1N5I1

OUI2OUI2

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Well Planning

Producer Wells

Produce Oil from Frade Field

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Seismic Arbitrary LineProduction Well - ODP1

PGS_NearMid_11_20

NNE

0 1000meters

PSDM07_10-20FinalStack

PSDM Depth

SSW

2000m

2500m

ODP1

Oligocene

N560

Axial N570

Top N580

Azul

Basemap

ODP1

ODP1

ToeHeel

Lateral Section 1050m

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What do the Frade Wells Look LikeProducer Well

WELL FIELD STRUCTURE

Magnetic Parameters

Model: Dip:

Mag Dec:

Date:

FS:

Surface Location

Lat:

Lon:

Northing:

Easting:

Grid Conv:

Scale Fact:

Miscellaneous

Slot:

Plan:

TVD Ref:

Srvy Date:

OUP2 FRADE OUP2

BGGM 2007 -38.742°

-23.106°

October 18, 2007

23630.5 nT

UTM Zone 24S - WGS84, Meters

S21 53 26.916

W39 50 21.352

7579022.00 m

413302.00 m

+0.31293009°

0.999692873

OUP2

OUP2 v3_18oct07

Rotary Table (25.00 m above MSL)

October 18, 2007

0

170

340

510

680

850

1020

1190

1360

1530

1700

1870

2040

2210

2380

2550

0

170

340

510

680

850

1020

1190

1360

1530

1700

1870

2040

2210

2380

2550

0 80 160 240 320 400 480 560 640 720 800 880 960 1040 1120 1200 1280 1360 1440 1520 1600 1680 1760 1840

0 80 160 240 320 400 480 560 640 720 800 880 960 1040 1120 1200 1280 1360 1440 1520 1600 1680 1760 1840

Vertical Section (m) Azim = 335.61°, Scale = 1(cm):80(m) Origin = 0 N/-S, 0 E/-W

TV

D S

cale

= 1

(cm

):17

0(m

)

Tie-In

Mud Line

36" Conductor Casing

KOP

EOC13 3/8" Casing Point

KOP

EOC #1 (3D-S)

KOP #2

9 5/" Casing Point

OUP2_tds:T-1

EOC #1 (3D-S)

OUP2_tds:T-2

EOC #1 (3D-S) OUP2_tds:T-3

EOC #1 (3D-S) KOP #2

OUP2_tds:T-4 OUP2_tds:T-5

OUP2_tds:T-4OUP2_tds:T-2 OUP2_tds:T-3

OUP2_tds:T-0OUP2_tds:T-1

OUP2 v3_18oct07

LegendOUP2 v3_18oct07OUP2_tds:T-4

OUP2_tds:T-0OUP2_tds:T-1OUP2_tds:T-3

OUP2_tds:T-6

OUP2_tds:T-2

OUP2_tds:T-512 Producers12 Producers

3.53.5oo/100ft BUR/100ft BUR

Min Horizontal Length = 784mMin Horizontal Length = 784m

Max Horizontal Length = 1130mMax Horizontal Length = 1130m

Avg Horizontal Length = 973mAvg Horizontal Length = 973m

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RT to MSL - 25mWater Depth - 1050 - 1300 m

Control Lines2 x 3/8” Chemical Injection1 x 1/4” for P/T Sensor Cable1 x 1/4” for for Variable Orifice Gas Lift Valve2 x 1/4” SCSSV1 x 3/8” Methanol injectionProtectors, Encapsulation, & Flat-Packing to be Determined

36" Casing (drill/jet)m TVD – RT 60m BML m MD – RT 60m BML

17-1/2" / 13-3/8" Int Csgm TVD – RT 1780m BML m MD – RT 1800m BML, varies by well

12-1/4" Hole / 9-5/8" Csgm TVD – RT 2100-2350mm MD – RT 2300-2600m

8-1/2" Hole / 5-1/2" 13Cr Screenm TVD – RT Same as 9-5/8” Csg Pointm MD – RT 9-5/8” Csg Point + 800m to 1200m

PRODUCERS: Subsea Horizontal Well w/ Gas Lift & Open-Hole Horizontal Gravel Pack (OHHGP) 12 wells 800 m to 1100 m horizontal sections

5000 psiHorizontal Subsea Tree

5.1/2" Production Tubing

Subsea Wellhead

36” Casing

20” Casing (Optional)

13.3/8” Casing

10-3/4” x 9 5/8” Casing

PT Gauge Bundle

Gas Lift Valve

Dual Chemical Inj.

Sub

TR-SCSSSV

Production Flowline

Gas Supply / Service Line

FS

V

Control Lines

5-1/2" Premium Alloy Screen, 13Cr Base Pipe Gravel Packed

800-1100 m 8-1/2" Hole

MISR

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Frade Drilling Rigs

Noble Leo Segerius Drill-ship, built 1981Working in Brazil for PetrobrasTentative arrival 2nd August ‘08210 day term + 45 day option US $525k /dayUS $900k / day – US$10 / second

S-706 3rd Generation Semi, built 1976 Extensive upgrade commencedIn Singapore, schedule depart Dec ‘08Commence operations Mar ‘095 year term (2-yr Ext. by Corporation)P10 – rig available Oct ‘10US $300k /day

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Brasco Logistics Base - Niteroi

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Frade Support Vessels

PSV: Platform Supply Vessel

Supplies deck cargo, diesel, and liquid mud

TSV: Tug Supply Vessel

Supplies liquid mud, deck cargo, and maneuvers oil tankers for FPSO

MSV: Multi-Services Vessel

Engineering services to support setting tree on wireline and manipulating jumpers and flying lead on sea floor.

Greater than 52 beds to accommodate work crews.

Supplies deck cargo and liquid mud for drilling rig

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Chouest Vessels

PSV

TSV

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Norskan MSV

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TSV Photo

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MSV Photo

Large Crane for running Subsea Trees

Heli-pad for helicopter landing

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Acknowledgements

Special thanks to:

Reinaldo Bruzual

Rafael Teixeira

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Q&A / Discussion Session

?

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DOC ID© Chevron 2005

Drilling Overview for Non-Technical People

Rio de Janeiro BrazilJuly 21, 2008

Kyle Eastman

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Back-Up Photo Slides

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Station Keeping – Dynamic Positioning ThrustersStation Keeping – Dynamic Positioning Thrusters

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Dynamic Positioning ThrustersDynamic Positioning Thrusters

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ROV Launch

Control cabin, launch arm, tether system, and ROV on rig deck

ROV and tether system being launched

Typical ROV

Thrusters

Buoyancy

ROV Support System ROV Support System

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BOP on deck Running BOP from rig

Drilling Equipment – Subsea BOP Stack Drilling Equipment – Subsea BOP Stack

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DOC ID© Chevron 200570ft Riser joint, fitted with syntactic foam buoyancy

Marine Drilling Riser Marine Drilling Riser

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Typical Subsea Horizontal Tree Typical Subsea Horizontal Tree

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Shell Auger TLP

                                                                                                                                         

2,860 ft WD

Tension Leg PlatformTension Leg Platform

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A Deepwater production facility. Essentially this is a traditional production platform, mounted on a moored cylindrical column.

Spar Type Drilling & Production UnitSpar Type Drilling & Production Unit

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Genesis Spar - Drilling & Production UnitGenesis Spar - Drilling & Production Unit

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Genesis Spar – Float OutGenesis Spar – Float Out

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A Deepwater production facility - a Tanker Ship with production facilities mounted on the deck.

FPSO FPSO Floating Production Storage and Offloading UnitFloating Production Storage and Offloading Unit

http://www.fpso.net/

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Captain Field - FPSO Captain Field - FPSO