While most 14-year-old boys in the ’60s spent their summers riding bikes or reading comic books, Gary Casswell spent his summer vacations on drilling rigs learning how to make hole. Thanks to his father’s job as a rig mechanic, Mr Casswell got an early start on everything from cleaning casing to mixing mud. “I loved it, couldn’t get enough of it,” recalled Mr Casswell, now vice president of Eastern Hemisphere operations for Pride International.

By age 21, he had gone into Santa Fe Drilling’s assistant driller training program in Saudi Arabia. Within a couple of years, he had been promoted from assistant driller to driller and was “drilling exploration wells in Rub’ al Khali, which had nothing but giant sand dunes back in those days. It was a difficult place to work in, but it was all exploration drilling and a very exciting time,” he said.

Within another couple of years, Mr Casswell had taken a leave of absence from Santa Fe to go to college. He soon graduated from the University of California at Long Beach with a business management degree.

Upon returning to work and for the next couple of decades, he organized US and international contracts and bids for Santa Fe in places as varied as Oklahoma, Kuwait, Saudi Arabia, Oman, Texas and the North Sea. “The best part of moving around like that is meeting all the great people in this industry,” he said. “There’s one thing for sure about our business: It’s all about the people you work with. Whether they’re roustabouts or presidents of companies, they’re what makes someone successful. Only as a group will you solve problems, and I’ve built some incredible relationships throughout the world.”

New Phase

In 1998, Mr Casswell joined Pride as a vice president/corporate officer to organize and develop the company’s Eastern Hemisphere international land and offshore drilling operations. In the 10 years since, this division has grown its international business from $230 million a year to just under $1 billion in 2007, he said. Pride has recently been tailoring its growth to offshore drilling with deepwater drillships and premium jackups, and Mr Casswell now oversees Eastern Hemisphere operations in 13 countries.

“I am extremely proud of how we were able to take a very young company like Pride, new to the international drilling arena, and develop it into a world-class drilling contractor that has as much respect as many legacy drillers. It took a lot of hard-working people to make that happen.”

Mentoring 101 with Gary Casswell

“I have had so many mentors over the years. In my early years, my dad taught me his tremendous work ethic. Other mentors like Charlie Orr, Gordon Anderson and Jim Allen have all given me remarkably valuable advice that I still follow to this day.”

Never forget where you came from. Always remember that a roustabout on a rig is every bit as important as the president of the company. Treat everyone equally.

Attitude is paramount. You need a great attitude in this business. Life is 10% what happens to you and 90% how you react to it. No matter how tough it is, you have to get up everyday, put on a smile and take on the challenge.

Be ready for the changes everyday and enjoy. Everyday in this business is a new day.

Your family has to be No.1. Regardless of how much hole you made or how fast you tripped pipe, that doesn’t mean anything if it was done to the detriment of your family life. Personally, I find it refreshing how young people are consciously balancing their professional life and personal life nowadays.

Noble Corp announced that its Board of Directors has named David W Williams as chairman of the board, chief executive officer and president of Noble. William A Sears has held these offices on an interim basis since 20 September 2007.

Mr Williams joined Noble in September 2006 as senior vice president – business development of Noble Drilling Services, was named senior vice president – operations of Noble Drilling Services in January 2007, and became senior vice president and chief operating officer of Noble Corp in April 2007.

Mr Williams has 28 years of energy industry experience and previously served as executive vice president of Diamond Offshore Drilling. He holds a bachelor of business administration degree in marketing from Texas A&M University.

NOV CTES group names vice president of engineering

National Oilwell Varco’s CTES group has named Trevor Pugh as vice president of engineering. He is responsible for leading new product engineering efforts.

NOV CTES, part of the well intervention and stimulation equipment group, is a provider of leading-edge products that support the coiled tubing, wireline, and drilling segments of the industry.

Mr Pugh holds a higher national diploma in applied physics from Sheffield Polytechnic, Sheffield, UK, and brings more than 25 years of industry experience to his new position. He previously served as management director at a major oilfield service company, responsible for providing engineering and software services to the exploration and production industry.

M-I SWACO opens hurricane-ready offshore supply base in Louisiana

M-I SWACO has opened a state-of-the-art offshore supply base in Cameron, La., that replaces the long-time facility destroyed in 2005 by Hurricane Rita.
The new supply base has been relocated from the previous location it occupied since 1958 to the Calcasieu Ship Channel at the only deepwater port left in Cameron. The new plant, which is one of the largest facilities M-I SWACO operates on the Gulf Coast, has total mixing capacity for 4,000 bbl of water-base, synthetic-base and oil-base drilling fluids, and storage capacity of 39,000 bbl, including base fluids. The facility also has storage capacity for 55,000 sacks bulk barite, 4,000 sacks bulk gel and 4,000 sacks of bulk lime.

The company has taken all steps to ensure the plant and associated facilities will remain intact during another storm, including the construction of a deflection wall around the tank farm. Also, the totally electric-powered facility, which is built on the highest point in Cameron, has been upgraded to better prepare for shutdown during hurricane evacuation.

“The new Cameron facility is strategically positioned to service the needs of our customers in the expanding western Gulf of Mexico deepwater market,” said senior vice president of the North America Business Unit Joe Bacho.

NOV to acquire Grant Prideco

National Oilwell Varco and Grant Prideco have announced a definitive merger agreement, which has been unanimously approved by each company’s board of directors.

Pete Miller, chairman, president and CEO of National Oilwell Varco, remarked, “We are delighted with the way this transaction advances our strategic goal of providing more products and services to our customers. We believe Grant Prideco’s product range will add new growing market segments to National Oilwell Varco and benefit our customers’ needs worldwide. … We look forward to welcoming Grant Prideco’s employees to the National Oilwell Varco organization.”

Smith International to acquire minority interest in At Balance

At Balance and its sole shareholder, Shell Technology Ventures Fund 1 B.V., announced an agreement to sell a minority interest in At Balance to Smith International. At Balance offers automated pressure control systems that enable operators to overcome conventional drilling limitations in narrow pressure margins.

“This transaction will position Smith with a complete MPD system to control the pressure profile throughout the wellbore” said Bryan Dudman, president of Smith Services.

Varel sale to Arcapita completed

Varel International has announced the completion of its sale to Arcapita Inc, a private equity firm based in Atlanta. Varel was purchased from KRG Capital Partners, a Denver-based private equity firm, for approximately US $369 million.

InterMoor ISO-certified

InterMoor has received its ISO 9001:2000 certification for its three facilities in Amelia, La., Fourchon, La., and Houston, Texas. This certifies InterMoor to perform a scope of work including engineering, design, fabrication, installation and servicing of mooring equipment and subsea structures.

Key Energy closes Moncla buy

Key Energy Services has closed the $145.8 million acquisition of Moncla Companies. Based in Lafayette, La., Moncla operates 53 workover rigs and 8 barge rigs. It also owns rig-up, swab, hot oil and anchor trucks, tubing testing units and rental equipment.

Bentec names VP marketing, sales

Bentec Drilling and Oilfield Systems has appointed Wilfried Buchholz as vice president marketing & sales. He replaces Bernd Albrecht, who left Bentec in the last quarter of 2006. Mr Buchholz has more than 30 years of experience in the utilities and oil and gas sectors, including 17 years with Weatherford.

Weatherford completes rotary Laboratories transaction

Weatherford International has acquired Rotary Laboratories, a player in the industry’s full diameter and sponge core analysis sector. This acquisition augments several important components of Weatherford’s core evaluation services, including the ability to perform full diameter analysis.

GE Energy acquires Sondex

GE Energy has completed the acquisition of Sondex, which specializes in the engineering and manufacture of directional drilling and formation evaluation systems and wireline tools for the production of oil and gas. GE provides equipment to enable oilfield service companies to navigate drill strings and to identify underground oil and gas reserves.

Obit: Henry Lamond, Cameron

Henry Lamond, Cameron vice president sales and marketing for drilling systems covering Europe, Africa, Middle East and Far East, passed away on 3 January 2008 in a vehicle accident. Mr Lamond has been associated with the IADC North Sea Chapter (NSC) for more than 10 years and served as treasurer until December 2007. NSC chairman Steve Rae of Noble Drilling said, “Henry was truly an ambassador of all things good from both his chapter and Cameron involvement. He will leave a lasting memory with us.”

PRODUCTS

New-concept offshore personnel transfer method successfully tested by Dutch university

The Delft University of Technology has successfully tested its new offshore access system, the Ampelmann, at the Shell-owned Offshore Wind Farm at Egmond aan Zee (OWEZ).  This new method of marine personnel transfer consists of a six-legged hydraulic motion compensation platform with a telescoping access bridge mounted on top, providing safe and easy access to any offshore installation. Responding to large numbers of inquiries regarding potential applications and availability, the university’s Ampelmann project team has launched Ampelmann Company.

The Ampelmann platform enables safe transfer at open sea from a vessel to any offshore structure, such as an oil and gas platform. Since the transfer platform is kept motionless by actively controlling the hydraulic cylinders, the Ampelmann can be used in rough sea states. The technology of this platform is based on a configuration used for flight simulators. Instead of creating airplane motions, however, its design is used to cancel out the ship motions of a vessel, using a dedicated motion sensor to constantly measure ship motions. From the motionless transfer deck, personnel can safely access any offshore structure through a telescopic access bridge. This alternative does not require any adaptation to offshore structures and can be installed plug and play on even small (non-DP) vessels.

3M offers portable gas detectors

3M has introduced a line of portable gas detectors, including the 3M Multi-Gas Detector 950 Series and the 3M Multi-Gas Detector 740 Series. The 950 Series detector can identify up to five gases simultaneously and features reporting capacity through the 3M Know Your Air software. The 740 Series is designed for durability, convenience and low operating costs, and is ideal for use in scenarios where potentially hazardous levels of CO, H2S, O2 or combustible gases may be found.

BJ introduces top drive casing running tool

BJ Tubular Services has announced the introduction of the Casing Running Tool 500 (CRT 500), a top drive casing running tool. A key advantage of the CRT 500 is its ability to rotate and reciprocate the casing string while simultaneously filling and circulating mud through the tool within the safety parameters of its 500-ton weight capability, which is essential for handling heavier string weights. The remotely operated system also makes it possible to run casing by drawing upon power supplied by the top drive.

Wescorp launches RFID-driven system

Wescorp Energy has launched the Intelligent Field Resource Management (IFRM), a radio-frequency identification (RFID)-driven solution for industrial and oilfield equipment. IFRM will tell engineers in the field important things about their equipment, such as “exactly where that piece of equipment is, what kind of shape it’s in, whether it’s even functioning at any precise moment, if it needs to go back for a rebuild,” said Wescorp COO Scott Shemwell.

BP announced it has completed commissioning of the Atlantis semi-submersible platform in the deepwater Gulf of Mexico and commenced the export of oil and gas from the deepest moored floating oil and gas production facility in the world.

The water depths and reservoir structure make Atlantis among the most technologically challenging developments undertaken by BP,” said Andy Inglis, BP’s chief executive of exploration and production. “Start-up is an important milestone as we grow production from our strong upstream portfolio in the deepwater Gulf of Mexico and elsewhere in the world.”

Production began with the commissioning of wells and facilities in October 2007. With gas facilities and export pipelines now fully commissioned, gas sales have started, and oil volumes are increasing. Additional wells will continue to be brought on stream, and the facility is expected to reach plateau production by the end of 2008.

BP began production operations in the deepwater Gulf of Mexico in 1995. Since then, the company has participated in a series of major projects, investing more than $14 billion.

The investment we are making to deliver world-class projects like Atlantis in the deepwater Gulf of Mexico is making a major contribution to US energy supply and US energy security,” said Bob Malone, chairman and president of BP America.

Hughes Christensen bit sets record in Saudi Arabia field

A Hughes Christensen 28-in. GTX large-diameter Tricone bit set a Saudi Arabia field record. The o-ring sealed bit drilled the longest section in the field of 2,125 ft (648 m) with the fastest ROP of 37.6 ft/hr. This was 41% more footage and 31% faster than the closest competitor offset.

The team met the operator’s objective to drill vertically through the Khafji formation from casing to casing with the fastest ROP to TD. Comparing the averages of two GTX bit runs in this field to the competitor’s top two average offsets, the Hughes Christensen ROP was 21% faster.

Petrobras sets daily oil production record

After six new offshore production structures went online in 2007, Petrobras set a daily oil production record in Brazil on 25 December 2007 of 2,000,238 bbl. The previous record was set on 23 October 2006 with 1,912,000 bbl.

In January, the FPSO Cidade do Rio de Janeiro went online in the Espadarte field in the Campos Basin; it is capable of lifting 100,000 bbl/day. Then the Manati platform, capable of producing up to 6 million cu m/day of gas, went up in the same field. In October, the Piranema platform came online off the Sergipe coast, with the capacity to lift 30,000 bbl/day of light oil. The next month, platform P-52 and FPSO Cidade de Vitória began operations. P-52 is in the Roncador field in the Campos Basin, with the capacity to add 180,000 bbl/day. The Cidade de Vitória, in the Golfinho field, Espirito Santo basin, is capable of lifting 100,000 bbl/day. Platform P-54 kicked production off on 11 December, also in the Roncador field. Top production is expected during the second half of 2008, and it will add 180,000 bbl/day to domestic production.

New oil production systems will go online at an increasingly intense pace in 2008, Petrobras said. Three new oil platforms and one gas platform are scheduled for deployment: the P-51 in the Marlim Sul field in the Campos Basin; the P-53, the FPSO Cidade Niterói in Marlim Leste; and the FPSO Cidade de São Mateus in the Espírito Santo Basin.

M-I Swaco fluid technology used in 1st deepwater application offshore Malaysia

In its first deepwater application offshore Malaysia, M-I Swaco’s Warp Fluid Technology was employed successfully with 150-micron screens, the smallest ever used for the uniquely weighted fluid system.

In what was also its first application in the Asia Pacific region, the technology was used in conjunction with a VERSAPRO reservoir drill-in fluid on two completions in 4,285 ft (1,306 m) of water.

The fluid technology uses specially treated barite or other weighting agents that are ground to 1/50 of their original size. It has been shown to eliminate sag and many other technical and HSE problems encountered with conventionally weighted drilling and completion fluids.

For the Malaysia application, the operator needed a fluid that could accommodate 150-micron screens and achieve optimum production while controlling formation solids. A conventional reservoir drill-in fluid weighted with API-grade barite would plug the screens, while a water-based system would cause emulsification problems with produced hydrocarbons. The two 8 ½-in. sections were drilled to total depth, the hole was in gauge and the 150-micron expandable screens were run and expanded without problems. No indications of formation damage or plugging of the screens downhole were observed. In both wells, the production flowback was as good or better than expected.

Varel drills fastest mile in Sutton County

HighMount E&P has used Varel’s 7 7/8-in. CH35AS to drill the fastest mile in Sutton County, Texas, at 145.8 ft/hr. The bit drilled a 6,800-ft interval to an 8,000-ft TD.

“As our company has grown, we’ve experienced more demand for bits designed specifically for underbalanced drilling applications,” said Dewayne Fuller, Varel’s roller cone product manager.

Varel is a leader in drill bits in blasthole drilling for open pit mining — which is similar to the oilfield underbalanced drilling environment. As in blasthole mining, underbalanced applications produce heavy gage row wear, and, in some cases, this wear can result in insert breakage on drill bits.

To alleviate this wear, the cone offset and journal angles are optimized for maximum rates of penetration while improving gage row wear and breakage resistance. Additionally, Varel’s HET (High Energy Tumbling) of their tungsten carbide inserts enhances insert life and breakage resistance. Using the technology and design techniques developed in blast hole drilling, Varel has created the Jet Air product line for oilfield underbalanced drilling.

The Jet Air series bits are designed for underbalanced applications where air, water mist or foam circulation is used instead of drilling mud. Technology and design techniques specifically match the drill bit to the application. First, the cutting structure is designed to achieve high ROP in underbalanced conditions. Tooth extension, shape and carbide grade are selected for underbalanced environments. Second, the gage and shirttail area are enhanced to resist the extreme wear commonly seen in underbalanced drilling. A variety of shirttail protection packages are available to meet specific customer needs. Additionally, the Jet Air series uses a nail retained, replaceable nozzle instead of the snap ring retained nozzle standard in other Varel products. The nail retention system provides enhanced resistance to sandblasting erosion, which is common in air and water mist drilling.

Enventure sets expandable installation milestone on water injection wells

Enventure Global Technology and Denbury Resources has set an expandable installation milestone: two Solid Expandable Tubular (SET) systems in two wells with one crew in one day.

The operation was performed for two of Denbury’s South Mississippi water injection wells possessing severe water thief zones. The operator chose Enventure’s cased-hole SET technology to cover perforations in a middle zone of each well.

“Previous methods of squeezing, casing patches and even dual packer isolation assemblies rarely worked,” Lance Taylor, Denbury senior operations engineer, explained. “The success of this program saved time and money on costly remedial workovers, increased production and ultimately will result in higher reserves due to improved waterflood sweep efficiency.”

The 4 ¼ x 5 ½-in. SET systems enabled Denbury to conserve internal well diameter, improving distribution in their waterflood. The expandable liners were accurately installed in a tight target area covering water thief zones without closing off other critical perforations.

This is the fourth expandable installation for Denbury, and eight more installations are planned.

Apache Corp drills 1st significant well from survey on Tierra del Fuego

Apache Corp announced that the first significant well drilled from its 700-sq-mile (1,800-sq km), 3D seismic survey in Argentina’s Tierra del Fuego is producing 1,635 bbl/day of oil and 1.3 million cu ft/day of gas from the Lower Cretaceous Springhill sandstone.

“Prior to Apache becoming operator of this 714,000-acre block in Tierra del Fuego, very little 3D seismic had been acquired,” said G. Steven Farris, Apache’s president and chief executive officer. “With 40% of the survey shot and newly processed data arriving every day, we have identified more than 30 exploratory, field extension and development locations.”

The new well, the Seccion Banos-2004, had the highest initial production rate of any well drilled in four decades of oil and gas activity on the Tierra del Fuego concession. The SB-2004, which was drilled to 5,544 ft, confirmed the productivity of a sparsely drilled 20-sq-mile (50-sq-km) area between three 40-year-old fields — Canadon Piedras, Cabo Nombre and Bajo Grande. Apache has commenced drilling the first of six potential offsets that have been identified to date.

The Seccion Banos success follows Apache’s development of the previously unexploited discovery at Cabo Nombre Sur, located offshore 4.2 miles (7 km) south of the latest well. Two wells — the CNS-2005 and CNS-2006 — currently are producing a total of 11.5 million cu ft of gas and 53 bbl/day of oil.

Apache is the operator of the TDF concession with a 70% working interest; Repsol YPF owns the remaining interest. Apache is the largest acreage holder on the island of Tierra del Fuego, with almost 2 million gross acres — 714,000 acres on the Argentine side and two recently awarded exploration blocks comprising 1.2 million acres on the Chilean side of the island. Its current net production on the island is 5,226 bbl/day of liquid hydrocarbons and 122 million cu ft/day of gas.

Diamond Offshore Drilling has been awarded four drilling contracts from Petrobras. The commitments for the four semisubmersibles could generate a combined maximum total revenue of about $2.3 billion and represent 22 years of contract drilling backlog.

The Ocean Worker received a six-year commitment. It is currently working in Tobago on a six-month contract and is expected to begin work in Brazil in the third quarter of 2008.

Three other contract extensions were:

• The Ocean Yatzy received a five-year commitment for work expected to continue until the fourth quarter of 2014.
• The Ocean Winner received a five-year commitment for work expected to continue until the first quarter of 2015.
• The Ocean Alliance received a six-year commitment for work expected to continue until the third quarter of 2015.

Additionally, Diamond Offshore has received a two-well contract with an estimated duration of six months from Callon Petroleum for the Ocean Victory. It also entered a letter of intent for a one-year commitment for the Ocean America. Both rigs will operate in the US Gulf of Mexico.

New JDC jackup near completion

Japan Drilling Company’s new rig, the Hakuryu-10, is nearing completion at Singapore’s PPL Shipyard. It is JDC’s first newbuild rig in more than 20 years and the first rig JDC has built outside Japan. The Baker Pacific Class 375 design cantilever jackup will be capable of operating in water depths up to 375 ft (extendable to 400 ft) and of drilling up to 30,000 ft. The Hakuryu-10 was ordered in May 2005 and is expected to be delivered by mid-2008.

Transocean ultra-deep drillship awarded 3-year Anadarko contract

Transocean’s ultra-deepwater drillship Discoverer Spirit has been awarded a three-year contract by Anadarko Petroleum for drilling operations in the US Gulf of Mexico.The three-year contract is expected to commence in December 2010, following completion of the rig’s existing contract commitments in the US Gulf of Mexico. The rig is capable of operating in water depths of up to 10,000 ft.

Additionally, a subsidiary of Transocean has exercised its option to purchase a 50% interest in a joint venture company with Pacific Drilling. The joint venture company will own two ultra-deepwater Samsung-design drillships that are currently under construction in South Korea.

The first joint venture drillship, Deepwater Pacific 1, has a commitment for a four-year drilling contract, which may be converted to a five-year contract. It is expected to commence in the third quarter of 2009.

Deepwater Pacific 1 will be equipped to work in water depths of up to 12,000 ft and outfitted to construct wells up to 35,000 ft deep. Deepwater Pacific 2 will be equipped to work in water depths of up to 10,000 ft, upgradable to 12,000 ft, and outfitted to construct wells up to 35,000 ft deep.

Scorpion Offshore orders new jackup

Scorpion Offshore subsidiary Scorpion Rigs has agreed to exercise the first of its four options with Lamprell Energy to construct a LeTourneau Super 116E ultra-premium class jackup. The turnkey price of the rig, to be named the Offshore Mischief, is $175.9 million excluding drillpipe and handling tools. The rig is scheduled for delivery at the end of 2009. Scorpion still holds options to construct up to three additional LeTourneau Super 116E rigs at Lamprell.

Hollywood film to bring Noble rig to life, sci-fi style

The Noble Clyde Boudreaux will serve as the basis for the distant planet of Pandora in James Cameron’s sci-fi movie “Avatar.” The design team visited the rig in June 2007 to get the look and feel of its inner workings.

The movie will use a blend of live-action photography and new virtual photorealistic production techniques. However, the most believable movie sets (computer-generated or real) are based on elements of real environments. The film design team believed they would find all these elements on the Clyde Boudreaux. Movie production designer Rick Carter and supervising art director Kevin Ishioka received a guided tour of the rig led by Noble’s Therald Martin and rig manager Frank Febro.

Of particular interest to the designers were the mechanical systems, crew quarters, ballast control and power plant operations, all of which were measured and documented. Likewise, the team focused on the rig’s ultra-modern drilling and mooring systems as possible settings in the movie. In total, several hundred photos and detailed written descriptions of the Boudreaux will be translated into both real and virtual sets at a studio in New Zealand.

3 Parker rigs awarded new contracts

Parker Drilling Company announced the award of new contracts for three land rigs to subsidiaries operating in Mexico and Kazakhstan.

In Mexico, Parker has signed a two-year contract with an option for an additional year with GPA Energy S.A. de C.V., using Rig 122 for work in northern Mexico.

In Kazakhstan, Parker was awarded a two-rig, one-year contract with options by Maersk Oil Kazakhstan for land drilling services using Rig 247, which is completing refurbishments, and Rig 269, the first of Parker’s new high-efficiency 2,000-hp land rigs. The rigs will begin mobilizing to location during the first quarter of 2008. Parker is also constructing a second rig of this class in the US, with an anticipated completion date during the second quarter of 2008.

Parker’s new high-efficiency rigs incorporate many advanced features. They include: a hydraulic cylinder system to raise the mast and substructure without the use of engines and drawworks; “plug and play” adaptability; a reduced number of transport loads; enhanced safety features, including swing-up structures requiring fewer crew members for rig-up; an automated drilling system withAC technology and variable frequency drive; a 1-million-lb hookload mast and a 2,800-hp drawworks; sufficient rig floor clear height for managed pressure operations; a new mud system design for efficient mud processing; and flexible equipment additions for specific well programs.

Apache well tests 23.8 million cu ft in Egypt’s Western Desert

Apache Corp reported that its Jade-4 well in Egypt’s Western Desert test-flowed 23.8 million cu ft/day of natural gas and 2,107 bbl/day of condensate from the Jurassic Alam El Bueib-3G (AEB) formation. The Jade-4 is adjacent to the Jade-1x discovery, which logged 217 ft of AEB pay and 66 ft in the Jurassic Upper Safa formation in March 2007. The discovery was completed as a gas producer from the Upper Safa after a test of 25.6 million cu ft/day of gas. The Jade-4 was drilled to test the potential of the AEB, one of the most prolific reservoirs in the greater Khalda Concession. The latest well logged 234 ft of net pay in the AEB.

TO THE AVERAGE energy consumer, the oil and gas industry probably looks like it’s sitting on top of the world with nary a dark cloud on its horizon. Oil prices are breaking record highs even as energy demand continues to grow. And all we’ve got to do is dig holes, pump out the oil and get it to a gas station. How hard can that be?

Very hard, considering the declining production from maturing reservoirs. Even harder than that, considering the harsher environments we’re moving into (deepwater, ultra-deepwater, HPHT, arctic). And extremely hard, if we want to do it all without safety incidents with an increasing number of new and inexperienced personnel.

Although oil prices have undoubtedly given this industry a healthy boost, you don’t have to look very hard to see the numerous challenges we are facing — and many of them have already begun to impact the business. In this issue, Drilling Contractor talks to 12 drilling industry experts from 11 companies to discuss their most critical issues, ranging from improving efficiency to protecting the environment to getting newbuilds ready to drill.

Not surprisingly, the most-cited No.1 challenge was people. Personnel has become one of the industry’s biggest headaches. And as the 40-plus scheduled offshore units leave the shipyards this year to begin operations, that headache has the potential to turn into a head-splitting migraine.

TAKING ACTION

Fortunately, it looks like the industry is really doing something about the problem (and not just hiring from each other anymore).

Nabors has significantly expanded its human resources staffing worldwide and has established training schools to grow its own workforce, said Denny Smith, director of corporate development (Q&A begins on Page 32). Nabors’ training rigs have been equipped with drilling simulators to familiarize drillers with A/C – PLC control systems, he said, and expanded recruiting in Eastern Europe, Russia and China have opened up new pools of talent.

National Oilwell Varco has opened a technical college in three locations — Norway, Houston, Singapore — and is committed to putting newhires through the school for a full year before they go into the field. “We know that some of these people will get hired away from NOV once they’re trained, but we will continue to put our people through this training because we know the industry needs it,” said Pete Miller, NOV chairman, president and CEO (Page 54).

Other critical issues we heard include:

• Rising costs. Prices for raw materials, labor, services and rigs have all increased, even affecting operators’ drilling programs. Breakthrough technologies, such as mono-diameter wells, could be a way out of that, said Rick Fontova, Enventure senior VP (Page 58).

• Efficiently tapping unconventional hydrocarbons, such as tight gas and heavy oil. This resource has an increasingly important role in meeting world energy demand, and industry must find economic ways to develop unconventional reserves, said Vik Rao, Halliburton senior VP of technology (Page 28).

• More cooperation among operators, drilling contractors and service companies. Many technologies (intelligent completions, MPD, drilling with casing) that can improve efficiency and recovery already exist yet aren’t widely utilized, said Keith Morley, Weatherford senior VP well construction and operations support and chief safety officer (Page 42). More cooperation is still needed to help push these technologies into the field.

As you’ll hear from our panel of experts, the industry’s tasks are surely hard, but with some innovation, some advanced planning and some collaboration, nothing’s impossible. Our special section starts on Page 18.

Have a comment? You can reach Linda Hsieh at linda.hsieh@iadc.org.

The International Regulators Forum (IRF) has named IADC a recipient of the 2007 Carolita Kallaur Award for Outstanding International Safety Leadership. The award recognizes IADC’s latest contribution to improving safety in drilling operations — the IADC Health, Safety and Environmental Case Guideline.

The HSE Case Guideline, introduced in October 2006, provides a framework with which companies can develop integrated health, safety and environmental management systems to help reduce risk in drilling operations.

According to the award certificate: “This excellent achievement has great potential for enhancing the safety of offshore drilling operations worldwide, and member countries of the International Regulators Forum greatly appreciate the work the International Association of Drilling Contractors has performed in developing this document.”

The award was bestowed on 3 December in Miami, Fla., at the International Regulators Offshore Safety Forum 2007.

Dr Lee Hunt, IADC president, remarked, “We are honored to be recognized by IRF with this prestigious safety award. IADC is committed to developing health, safety and environmental programs that will not only safeguard the people who work offshore but also foster the long-term goal of HSE collaboration for the drilling industry.”

Use of the IADC HSE Case Guideline allows drilling contractors to align their business activities with a variety of international standards and regulatory requirements. The HSE Case represents a voluntary set of core principles applicable to any mobile offshore drilling unit, regardless of geographic location.

South Central Asia Chapter holds technology meeting

About 500 delegates from the drilling industry attended the 19th IADC Technology Meet, held 6 December 2007 in Mumbai, India.

In welcoming remarks by IADC South Central Asia (SCA) Chapter chairman U.N. Bose of ONGC, he praised IADC for providing a platform for oil companies and service providers to exchange their views.Ken Fischer, IADC regional vice president – Middle East & Asia, then presented a plaque to R.S. Sharma, ONGC’s newly appointed chairman and managing director, in recognition of his contributions to the advancement of technology, safety and operational effectiveness in drilling operations. International Paints and Blade Energy also made technical presentations.

The technology meet was followed by the 2nd IADC SCA Chapter Golf Tournament on 8 December, held under the theme of “Bridging the Gulf with Golf.”

Service Awards recognize distinguished IADC members

Kevin Lacy, head of discipline-drilling and completions for BP, and Gary Casswell, vice president eastern hemisphere operations for Pride International, each received an IADC Exemplary Service Award during the 2007 IADC Annual Meeting. The awards were given out during the keynote breakfast on the event’s opening day.

Mr Lacy is a longtime stalwart of IADC whose contributions include development of industry best practices and enhancements in drilling safety. He began his career in the drilling industry in 1980 after earning his BS degree in petroleum engineering from the University of Tulsa. He also holds a master’s degree in business administration from the University of California at Berkeley. In 2002 he was named to the University of Tulsa Engineering Hall of Fame.

As chairman of the former IADC subsidiary Drilling Contractor Publications Inc (DCPI), Mr Casswell oversaw the transformation of IADC’s official magazine into a world-class publication. He directed the dissolution of the DCPI organization and strengthened IADC’s control and management of the magazine. He served on the Advisory Committee for the 2006 IADC/SPE Drilling Conference and is a director of IADC. Mr Casswell has served in his current position since May 1999 and has worked in the contract-drilling industry since 1974. He graduated from the University of California at Long Beach with a degree in business management.

IADC Career Connection holds job fair at Fort Hood

IADC Career Connection (ICC) kicked off its Returning Military Campaign with the first exclusive returning military job fair at Fort Hood in Killeen, Texas, on 9 January 2008. Nearly 200 soldiers attended, said ICC manager Linda Silinsky-Kephart, and response from the 17 recruiting companies was overwhelmingly positive. Several employment offers were made on-site, with applications being filled out in a makeshift lunch room.

The event was “well worth the effort, and we are looking forward to the next IADC-sponsored military recruiting event,” said Jim Ayers, Noble Corp recruiter.

Other participating companies were: Bandera Drilling, ENSCO International, Grey Wolf Drilling, Nabors International, Norton Energy Drilling, Patterson-UTI Drilling Company, Pinnergy Ltd, Premium Drilling, Pride International, Rig Boss, Rowan Companies, Sandia Drilling Company, Scorpion Offshore, Transocean, Union Drilling and Unit Drilling.

The job fair was held in partnership with the Army Career Alumni Program (ACAP), which provides job assistance to returning military as they transition to civilian life.

John Lindsay is executive vice president of US and international operations for Hemlerich & Payne IDC. He assumed his current position in March 2006. Prior to this appointment, Mr Lindsay had served since 1997 as H&P vice president-US land operations. Mr Lindsay joined H&P in 1987. He has since worked as roughneck and driller, drilling engineer; operations manager in Oklahoma City for the company’s mid-continent region; and division manager for all of the company’s US land rigs.

Mr Lindsay graduated in 1986 from the University of Tulsa, where he earned a Bachelor of Science degree in petroleum engineering.

Claus Hemmingsen, Vice Chairman
Maersk Contractors

Claus Hemmingsen is chief executive officer of Maersk Contractors, partner in the firm A.P. Møller and member of the group’s Executive Board. Mr Hemmingsen joined A.P. Møller – Maersk in 1981 and has been stationed in Hong Kong for Maersk Hong Kong and in Singapore for Maersk Line Asia Region. Mr Hemmingsen was appointed senior vice president in 2003 with overall responsibility for APM Terminals and Global Shared Service Centres. He was appointed CEO of Maersk Contractors as of January 2005 and took overall responsibility of Maersk Supply Service the same year. He was appointed executive vice president in April 2005, member of the Executive Board in July 2006 and partner in July 2007. Mr Hemmingsen finalised an Executive MBA at IMD, Switzerland, in November 2007.

Phil Rider, Secretary-Treasurer
Transocean

Phil Rider is currently director-transition restructuring for Transocean, which he joined in 1985. He has worked in a variety of accounting positions, most recently as assistant controller. He graduated magna cum laude with a bachelor’s degree in business administration from Shippensburg University in 1981 and has been a CPA since 1985. He is the vice chairman of IADC’s Accounting Issues/Procedures Committee and is a member of the IADC Retirement Committee. He is also vice chairman of the Board of Directors of Southern Federal Credit Union. Mr Rider and his wife Jennifer live in Houston with 4 of their 5 children.

Lee Hunt, IADC President

Dr Lee Hunt serves as the chief executive of IADC, responsible for managing IADC’s worldwide operations. Before being named president in 1990, his prior Association positions included manager for state government affairs, environmental affairs and human resources. Dr Hunt holds a PhD in political science from Northwestern University and received his law degree from South Texas College of Law.

Brian Petty, IADC Senior Vice President, Government Affairs

Brian Petty is based in Washington with global responsibilities for directing IADC’s government affairs initiatives. He serves as chairman of the federal Industry Trade Advisory Committee on Automotive Equipment and Capital Goods (ITAC 2), which counsels the US Trade Representative and the US Secretary of Commerce on international trade issues. He also serves on their joint Investment Working Group to advise them on international investment policy. In addition, he co-chairs the Energy Services Coalition, comprised of 60 companies and trade associations seeking liberalization of trade in the hydrocarbon, electric power and renewable energy sectors at the World Trade Organization in Geneva, Switzerland.

Mr Petty holds a law degree from Georgetown University and an MA in literature from the University of Virginia.

David Russell, VP, Land Division
Rowan Companies

David Russell started his career at Rowan as a college roustabout in the summer of 1982 while attending the University of Texas. He became a full-time employee in 1984, spending his first nine years as a barge engineer, driller and toolpusher on offshore rigs in the Gulf of Mexico. In 1993, Mr Russell was promoted to drilling supervisor in Rowan Petroleum. In June 1995, Mr Russell was named president of Rowan Drilling Company and vice president of Rowan Companies.

Tim Juran, VP, Offshore Division
Seadrill

Tim Juran is senior vice president, deepwater units Americas for Seadrill, which he joined in January 2007. He has more than 26 years of experience in the drilling industry and has held several senior positions at Transocean, most recently as division manager, North America. Mr Juran’s extensive experience includes international onshore and offshore operations. He has a bachelor’s degree in mining engineering from the University of Wisconsin – Platteville, received in 1981.

Steve Richards,VP, Drilling Services Division
Key Energy Services

Steve Richards is VP-operations support for Key Energy Services. He served in various senior management roles in the company before assuming his current duties in 2006. He holds a BS in Petroleum Engineering from the University of Oklahoma and is a Licensed Professional Engineer in Texas.

IADC has agreed to file an amicus curiae brief at the Texas Supreme Court in support of Noble Drilling Inc. The company is appealing a decision holding that an offshore worker is entitled to Jones Act compensation for injuries allegedly sustained by the company’s failure to follow the operator’s new internal safety guidelines. Noble argues that the standard of care for Jones Act claims isn’t claimed “best practices” but rather providing a safe place to work. Moreover, the company maintains the plaintiff was trained for what, in this case, involved slinging procedures, and that his injury was the result of his own negligence.

Working Time Directive hearing ends

The Scottish Employment Tribunal sitting in Aberdeen on the application of the EU Working Time Directive in the UKCS concluded oral arguments in November. IADC was represented as part of the joint industry employers group, also including Oil and Gas UK and COTA, the catering association. Amicus (UNITE) and OILC were represented in the proceedings opposing the industry position that the EU requirement of four weeks’ paid annual leave for all workers is satisfied offshore by existing rota arrangements via field breaks. The tribunal will now consider the evidence and issue a decision in 2008, not likely before spring.

EPA SPCC proposal challenged

IADC joined IPAA in comments to the docket involving the EPA’s latest proposed amendments to its Spill Prevention, Control and Countermeasure (SPCC) Plan regulations. These amendments were first proposed in 2002 and re-proposed in 2006. At that time, the E&P industry questioned their scope and cost, noting they could potentially extend to the release of effluents from any “facility” that would reach “navigable waters.” The definitions of both are a matter of interpretation and could greatly expand the SPCC’s reach beyond the original purpose.

OSHA issues final rule on PPE payments

OSHA has published its final rule requiring employers to pay for personal protective equipment (PPE) required in the workplace; it becomes effective 13 February 2008. IADC had opposed the proposed rule when it was published in 2004. The final rule requires employers to pay for all PPE other than non-specialty safety-toe protective footwear and non-specialty prescription safety eyewear, provided that the employer permits such items to be worn off the job site. Employers are also exempt from paying for standard work clothing such as long-sleeve shirts, long pants and cotton coveralls. In addition, ordinary clothing used solely for protection from the weather is exempt.

I am honored to serve as 2008 chairman of the International Association of Drilling Contractors. It is all the more exciting to chair IADC in such exciting times for our business.

Today’s oil and gas industry operates at a breakneck cycle and represents a long-awaited upturn in our business. But every silver lining has a cloud, so let’s be aware of the issues that confront us – many of them spawned by this very upturn.

First and foremost is safety. Improving industry safety is a cornerstone of IADC’s mission, and has been since its founding in 1940. The decision to operate safely is the most important operational decision we make. Everything else is secondary, because if we can’t do it safely, we shouldn’t do it at all.

IADC has done a great deal to advance safety in our industry. Most recently, IADC was recognized by the International Regulatory Forum (IRF) for the our Health, Safety and Environmental Case Guideline. IRF bestowed to IADC its “Carolita U. Kallaur Award for Outstanding International Safety Leadership” for this accomplishment.

The IADC HSE Case was launched in October 2006 to provide a framework for developing an integrated HSE management system to help reduce risks associated with drilling activities. Although it was originally developed for offshore drilling, we have more recently issued a companion document for onshore drilling. The IRF comprises oil-and-gas regulators from eight countries, including the US, Canada, Norway, the Netherlands, United Kingdom, Brazil, Australia and New Zealand.

The HSE Case is rapidly gaining worldwide acceptance and exposure in drilling markets worldwide.

Recruiting, training and retaining people continue to be huge challenges. We hear a lot about the people shortage these days, but, not unlike the weather, there are few concerted efforts to attack this problem. IADC has taken the lead in reaching out to non-traditional parts of the US to recruit for the future of our industry. Through the IADC Career Connection initiative, IADC has organized job fairs at two Ford Motor facilities scheduled for imminent closure. In addition, IADC, in conjunction with the US Army, arranged for a number of drilling contractors to meet with returning military at Fort Hood in January. These highly motivated men and women are just the people our industry needs to move forward.

We have made many strides in training, beginning with our WellCAP and RIGPASS programs, aimed at establishing common benchmarks for training in well control and rig safety, respectively. In 2007, we began phasing in the IADC Drilling Industry Training Accreditation Program. This program will offer a general form of training accreditation for programs outside IADC’s existing systems.

RIG PASS has become a regional standard for the Middle East. In particular, Petroleum Development Oman and Saudi Aramco are implementing a “RIG PASS for everyone” policy on their websites, and other producing companies are expected to do likewise.

Finally, the environment. We owe it to ourselves, our communities and our companies to improve environmental performance. Again, IADC has taken a leadership position. For example, earlier this year, IADC established voluntary guidelines for collecting environmental data and providing it to operators and other entities.

An old Chinese curse states, “May you live in interesting times!” When you think about it, this is exactly the situation in which the global drilling and production industry finds itself today. Times are interesting, all right, but our challenges are great.

By Wajid Rasheed, contributing editor

Key Performance Indicators (KPI) are routinely used by oil companies to measure operational performance. In drilling, for example, a common indicator is a depth vs days curve, in which specific well construction events are plotted against the duration or time taken per event. This highlights “flat-spots” showing the occurrence of downtime or NPT (nonproductive time). Worldwide, the average value for NPT varies between 20%-30% of overall well construction time. Oil companies with the highest performance levels typically exhibit NPT between 10%-15%.

Petrobras recently launched the PROPOÇO program, which aims to place the company in the top quartile of well construction performance by improving the well planning process and reducing NPT associated with well construction and maintenance. The program is being conducted under the leadership of Braulio Bastos, general manager of well technology for Petrobras.

The potential gains are clear: Reduced NPT means more wells completed with fewer rigs. For example, cutting NPT in half, from 20% to 10% NPT, translates into a net saving of 10% of rig time and rig cost. As NPT reductions are applied across more rigs, savings soon stack up. With 10 or more rigs, these performance gains effectively mean an extra rig, free of cost. For an oil company with 30 rigs that manages to reduce NPT by 10%, this effectively means 3 fewer rigs, thereby lowering rig demand while constructing wells more quickly.

PROPOÇO

A “road map” for realising top performance, PROPOÇO emphasizes extensive planning, best practices and information sharing as the way forward. Consequently, it applies “thresholds” or minimal requirements and “benchmarks” or standards for projects, personnel, wells and documents. By propagating best practices, it promotes efficiency.

By reviewing the processes and flow of information behind planning, drilling and completing an oil or gas well, PROPOÇO will help engineers plan wells from inception to drilling and completion — not just with time charts, but detailed well-engineering studies, including all necessary calculations and designs for a specific well.

The backbone of the program is a comprehensive analysis of Petrobras well-engineering activities and recommendations on areas for improvement. PROPOÇO is based on five distinct programs, including the overall PROPOÇO management plan.
The Information Management and Performance Evaluation program (INF — derived from Portuguese), is the second PROPOÇO program, the first being the overall management of PROPOÇO itself.

Coordinated by Felipe Rego, INF seeks to recommend KPI and adopt minimum performance standards. INF also seeks to permanently and systematically compare Petrobras’ well engineering with other oil companies and thereby identify and adopt best practices. It also aims to define a standard well-engineering documentation system. INF is discussed in further detail below.

The third program, Continuous Process Management and Standardization (PROC), seeks to review the management of well-engineering processes, especially those related to standardization, in order to develop a system that is less bureaucratic and fit-for-purpose based on critical success factors and the actual needs of users. It also seeks to review the way “lessons learned” and non-conformance are applied. PROC is discussed in further detail on Page 142.

The Project Management, Planning and Controls (PROJ) program is based on a simplified operational version of Petrobras’ PRODEP model. PROJ focuses on implementing a well-design and approval system using an integrated management approach. The well-design and approval system is split into three stages — concept, draft and management plan — combining scope, cost, quality, risk, team, supply/procurement and communication. PROJ is discussed on Page 140.

Finally, the Knowledge and Workforce Management (CON) program is concerned with attracting, training and retaining technically capable people within well-engineering functions. It also identifies needs for well engineering competency areas as well as allocating technical personnel where necessary. In addition, it develops specialists and integrates technical communities, as well as creates tools and standards for engineering processes. See Page 143 for details on CON.

INF

INF is divided into six sub-projects that range from the management of sub-projects, diagnostics, documentation, well-engineering KPI, offshore and onshore benchmarking.

INF Management

This sub-project covers initial diagnostics that are used to identify all potential areas of improvement as well as drawing up detailed work-plans for sub-projects. It also covers internal and external communication procedures and content.

Diagnostic Analysis of Current Practices

Coordinated by Paulo Barata, this sub-project focuses on analysing current well-engineering IMPE practices as related to information and documentation systems and finding solutions that guarantee standardized and integrated practices, databases and applications across all Petrobras well-engineering operations. It includes, but is not limited to, the structures and ways in which information is collected and documented.

Results of these diagnosis will enable Petrobras well-engineering information and documentation systems to be restructured in a standard integrated format.

Implementation of Information and Documentation Systems

Once diagnostics have been carried out, information and documentation systems will be restructured to ensure standardization and integration of practices, databases and applications across the company’s well-engineering operations. This sub-project is also coordinated by Mr Barata and covers the implementation of well-engineering information and documentation systems coherent with directives and planning proposed in the earlier diagnostic stage.
Designed specifically to effectively capture all necessary well-engineering information, the new integrated system will store and handle information and documents in a standard format.

Well Engineering KPI

Coordinated by Joao Carlos Ribeiro Placido, this sub-project assesses process performance indicators used in well engineering. The program seeks to redefine both final and interim KPI across all well-engineering processes, ensuring minimal standards or “threshold” are met. It also includes input, result indicators and a threshold, which covers cost, timeline and conformance with specifications and quality standards. The program will result in a number of standardized Petrobras KPI for well-engineering across all assets.

Offshore and Onshore Benchmarking

By establishing two separate well-engineering performance evaluation processes for offshore and onshore assets respectively, Petrobras will be able to “benchmark” process performance through a series of audits. This will clearly identify and prioritise areas of improvement, enabling best practices to be subsequently implemented across all offshore and onshore assets.

Coordinated by Renato Pinheiro, the Offshore Benchmarking project encompasses all well-engineering processes in floating rigs and fixed platforms. The project distinguishes between internal and external benchmarks. For internal benchmarks, procedures are drawn up for the information that needs to be captured. This information is used to form the basis of a benchmark that is implemented in all well-engineering assets managed by each business unit. In order to compare performance between different assets, the system will check, rank and identify improvements and best practices managed by Petrobras ENGP. The system also incorporates a planning and control model to accompany corrective and other actions within each process. External benchmarking includes a contract with companies for benchmarking analysis.

The onshore benchmarking system covers all well-engineering processes related to land rigs and modules. It is based on similar processes to those of offshore benchmarking in terms of internal and external benchmarking, with the only difference being that the nature of the information collected is from onshore assets. Again, the system allows for performance comparisons between different assets, identifying improvement actions and best practices managed by Petrobras.

Petrobras’ Project Management, Planning and Control (PROJ) central to well planning

Deepwater projects are becoming ever more complex. Gone are the days when risks were “known” and highly profitable giant fields could be developed using conventional off-the-shelf technology. Large oil companies today face a series of deepwater production challenges created by smaller and more remote offshore oil and gas fields, lower permeability, and at times, higher temperatures and pressures. In such circumstances, it is vital for the oil company to apply knowledge in three key areas: engineering, new technologies and project management.

A simplified scheme of a typical producing well in the Campos Basin is represented in Figure 1.
Internationally, Petrobras is considered to be at the cutting edge of deepwater production technology as well as new technology application. Illustrating this, Petrobras has twice received the coveted OTC (Offshore Technology Conference) Award for Offshore Deepwater Technology.

Petrobras has increased the use of management tools across the life-cycle of the well in both exploratory wells and producers. This enables the company to better handle the increasing complexity, higher costs, risks and uncertainty inherent in deepwater wells.
Project Management – Planning and Control (PROJ) is the 4th sub-project within PROPOÇO and will implement a formal system for the design and approval of well plans. The system will be based on several key stages or gates, such as Opportunity Identification, Project Plan, Basic Well Plan and Executive Plan. From a management perspective, the system integrates a wide range of factors such as scope, timescale, cost, quality, risk, team, supply/procurement and communication.

Supported by broad participation from specialised business areas, well services and corporate functions, the PMPC project team has produced results such as the following:

•    Defining Front End Loading (FEL) needs for the well and personnel responsible for different stages or gates of the well-plan.
International experience confirms that projects based on good reservoir characterisation – seismic, rock and fluid analysis – linked with a detailed well-plan, show fewer time and cost deviations. The sub-project will look next at standardizing the contents of all well-engineering documents.

Further results include:

•    Predicting probabilistic demand for well intervention. This allows production assets to estimate resource usage for example rigs that are necessary to workover wells that show a drop in either productivity, or injectivity as in the case of water injectors.

•    Planning and managing well campaigns within specific field developments. Essentially, this is a best practices manual for well engineering.

•    Standardizing analytical procedures for well planning and construction. This enables  costs to be allocated properly, increases the control of performance indicators and identifies priority tasks thereby improving process performance.

Acknowledgements

DC thanks Petrobras for supplying all photos and illustrations and for participating in this article.
Wajid Rasheed is the founder of Brazil Oil & Gas. You can reach him at wajid.rasheed@eprasheed.com.This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

5-part PROC designed to review well-engineering management, emphasizing standardization issues

Coordinated by Helder Pinheiro, the third PROPOÇO program – Continuous Process Management and Standardization (PROC) – will review the management of current well-engineering processes, especially those related to standardization. It is structured in five sub-projects and will be based on the actual needs of users as well as critical tasks and will deliver a less bureaucratic and fit-for-purpose system. By reviewing the way “lessons learned” are applied and non-conformance events are handled, it will improve the overall efficiency of well-engineering processes.

Processes, Specialities, Critical Tasks

Coordinated by Raimundo dos Anjos, this sub-project focuses on mapping and validating different well engineering processes. It also breaks down the complex interaction and interdependencies between these processes so that they can be better understood and managed from a performance perspective. Typically, such processes cover information flow, well engineering specialities such as directional drilling, the interaction between Petrobras and its suppliers and processes linked to critical tasks such as landing BOPs. In doing so, Petrobras will be able to clearly determine critical tasks, different well engineering processes and their interaction.

Process and Execution Standards and Standardization System

Coordinated by Gilson Campos, this sub-project will evaluate current standardization procedures, allowing Petrobras to visualise where changes are necessary. As a result, the new system will be tailored according to the needs and specifications of well engineering using software solutions and flow charts.

This sub-project will evaluate Petrobras’ philosophy of establishing and using standards. This methodology will be applied to all processes and relationships that are associated with the development of the detailed content of the well plan, the operational needs of technical applications, as well as knowledge levels of the user. It will also evaluate the management of standards in interfaces with technical service providers by considering factors such as accessibility, updates, common standards and responsibility. The new system will be adjusted according to the needs and specifications of well engineering. This involves a complete review of process and execution standards, management standards in well engineering and will result in the restructuring in format and/or content of standards.

Non-Conformance and Final Well Evaluation system

Coordinated by Pedro Paulo, this sub-project will evaluate existing well-engineering system in terms of handling non-conformance. It will also evaluate suggested revisions and their suitability of content, focusing on dissemination, adjusting standards and overall applicability. It also evaluates the management of non-conformance in the interaction with technical service providers. It seeks to adjust the non-conformance system according to needs and specifications of well engineering. It also provides a system for handling non-conformance in well-engineering whose format and content can be reviewed where necessary.

Process Management

Coordinated by Humberto Maia, this sub-project will standardize well engineering process management. It will establish a process review system that will be continually updated to ensure that best practices are communicated in a consistent manner. It will also certify the activity of process management within well engineering. It will also identify and evaluate operational changes in wells and best practices within process management. This will ensure Petrobras benefits from performance improvements as well as integrated and consistent communications throughout the well engineering community. It will enable routine process management tasks such as standardization, auditing and diagnostics, VCT, to be consolidated and become more efficient.

Identification and Evaluation of Changes in Well Operations

Implementation of tools and methodology proposed by management is based on pilot assets and well engineering interfaces, as well as various stages: planning, design, program and execution. The sub-project will evaluate the impact and practicality of the proposed tools and methodology and assess the suitability of tools and risk analysis techniques proposed by management. The deliverable will be methodology and tools proposed by all well engineering management and well engineering shown in SINPEP procedural standards.

CON segment of PROPOÇO designed to attract and develop technical staff, regardless of future market conditions

Coordinated by Adolfo Polillo Filho, the fifth PROPOÇO program is Knowledge and Workforce Management (CON).

By attracting staff and developing their technical capabilities, Petrobras will be guaranteed a core of technical and functional specialists irrespective of future market conditions. Enabling this is the task of CON, which will identify needs and develop competencies within well engineering. It will utilize newly created mechanisms to post functional staff where required, as well as develop technical specialists.

Additionally, it will increase knowledge sharing by integrating technical communities, information databases and technical standards. The CON is structured in six sub-projects. Three sub-projects are currently under way – Critical Competences, HR Attraction & Retention and Project Directives. Another related to “best practices within the community” has been completed. A further two sub-projects are yet to commence – firstly, consolidating directives for projects, well plans and engineering methods, and secondly, automating well plans.

Coordinated by Valdo Ferreira Rodrigues, Critical Competences will select and help develop a broad range of skills and competences critical to well engineering. By considering present and future workforce requirements, this sub-project will meet medium and long needs generated by diverse well-engineering specialities. Furthermore, it will generate career paths and professional development plans that offer specialized training courses corresponding to Master or Doctorate qualifications.

Development is based on existing concepts of Knowledge Management within Petrobras’ program for Top HR competence. Principal competences were highlighted from various technology intelligence networks and requirements generated by well directives.
The project will guarantee staff training over the next 10 to 15 years, considering short-, medium- and long-term objectives in order to create a critical mass of talent that will be unaffected by cyclical market conditions. Deliverables will include a career plan for each speciality that includes formal courses and on-the-job training.

Coordinated by Rui Passarelli, the HR Attraction & Retention project is tasked with assessing labour requirements for well-engineering activities based on different technical functions and the nature of each task at hand – whether it is routine or special. As a result, the process of defining personnel needs and posting staff will become more efficient and less subjective. For instance, in the wells area, the process considers the numbers of rig-based personnel and the need for specialized personnel.

Coordinated by José Eduardo de Lima Garcia, the Directives sub-project will find the most efficient way of well construction by standardizing corporate directives. Standardization will be readily applied to well construction projects where similar scenarios exist, in accordance with Petrobras’ best practices.

The fourth sub-project, “Implementation of Best Engi-neering Practices with the Well Engineering Community,” includes a total of 15 well construction directives that have been established. Of these, 10 have already been validated within the company in the following areas:

• Geomechanics;

• Well control;

• Well start-up;

• Directional drilling;

• Bits;

• Drilling fluids;

• Casing and cementing;

• Well geometry and drillstring;

• Completion fluids;

• Sand control;

Five further directives are being evaluated.

• Formation stimulation;

• Completion;

• Formation evaluation;

• Well abandonment;

• Intelligent completions.

Upon conclusion of the sub-project, all 15 directives will become companywide standards for well construction.