Dwayne McClelland is a fourth-generation oilfield worker. His father worked on the service side with Weatherford for many years, eventually owning his own company as an oilfield manufacturer’s agent. His grandfather was a driller and toolpusher in southwestern Louisiana. And more than 100 years ago, his great-grandfather ran a team of mule-drawn wooden wagons that delivered tools to drilling rigs. You might say that drilling is in his blood.

Mr McClelland, senior drilling advisor for Chevron Pacific Indonesia, said that he had already developed an interest in drilling from going out to rigs with his father in Germany, Austria and North Africa while growing up. During his senior year in high school, a three-day orientation sponsored by Texaco sealed the deal.

“They flew us offshore in a helicopter to spend time on a production platform, then took us to LSU and explained to us what petroleum engineers did. For a 17-year-old kid, it was fascinating. I fell in love with the industry, and I left that orientation knowing I was going to be a petroleum engineer,” he said.

After graduating from the University of Southwestern Louisiana with a petroleum engineering degree, Mr McClelland joined Chevron as a drill site manager. He got stationed offshore in the Gulf of Mexico on a jackup, running high-technology equipment and having some of the “best times of my life,” he said.

Since then, he has been stationed around the world with Chevron in Saudi Arabia, California, Houston, Papua New Guinea, Nigeria and the North Sea. One assignment included a stint in production, which Mr McClelland was initially anxious about but ended up appreciating.

“Ultimately, my passion was drilling, but those few years in production made me a better drilling man. From the drilling side, we want to get the well to TD and complete it. From the production perspective, if you don’t have good production from the well, it’s just an expensive hole in the ground,” he said.

Since 2006, he has been stationed in Duri, Indonesia, where Chevron has the world’s largest steam-flood operation for heavy oil. The Duri field recently produced its 2 billionth bbl of oil, and the Chevron team plans to drill about 550 wells this year, Mr McClelland said. “We’ve made significant improvements in reducing the cycle time of our wells by about 30% by applying a tech limit approach in the last year.”

The challenges they’re facing, though, are much like challenges seen worldwide: Finding mechanically sound, available rigs and competent rig crews. And the personnel problem has him particularly concerned. “We’re moving up rig crews fairly quickly – taking roughnecks to derrickmen to assistant drillers to drillers in a 4- or 5-year time frame. There’s not enough time to train people in the progressive manner we used to, and there are inherent risks in that. It’s a necessary evil, simply because of the demand for new personnel, but it’s something that does concern me.”

He also cautioned the industry to not get too relaxed with safety just because industry statistics show we’re doing a good job so far: “The great crew change is just now really beginning. The big wave has yet to hit us.”

Weatherford International has been awarded a 2 ½-year contract with Sakhalin Energy Investment Company for tubular running services on its Piltun-Astokhskoye-B (PA-B) processing and production platform off the northeastern coast of Sakhalin Island, Russia. The contract includes Weatherford’s new OverDrive casing running and drilling equipment and services for up to 13 wells on the PA-B platform — part of Sakhalin II, one of the world’s largest integrated oil and gas development projects.

Weatherford began providing conventional tubular running services for Sakhalin Energy on the Sakhalin II project in 2004 on the Molikpaq platform and mechanized tubular running services on the Lunskoye-A platform in 2006. To date, the company continues to work on these projects.

Additionally, Weatherford has completed its acquisition of V-Tech AS, strengthening its portfolio by adding key proprietary pipe handling products to its growing tubular running services portfolio. V-Tech AS is a Norwegian startup company providing tubular running equipment and related services.

Intermoor names engineering, business development managers

InterMoor, an Acteon company, has promoted Joao Carlos Ruiz de Oliveira to engineering manager for InterMoor do Brasil. He was previously senior engineer, special projects.

Based in Rio de Janeiro, Mr Ruiz will oversee project execution and organize engineering and administrative activities. Before joining InterMoor in May 2007, he worked as a subsea engineer for Petrobras.

Additionally, Harry Urech has been named business development manager for InterMoor. As a member of its sales and marketing team, Mr Urech will be responsible for developing and implementing business plans for current and new lines of business.

He has previously served as offshore sales manager of Samson Ropes and as vice president of sales and marketing for Franklin Offshore Americas.

Varel expands France facility due to Eastern Hemisphere growth

Varel International’s Varel Europe subsidiary, the base of the company’s Eastern Hemisphere operations, has announced the expansion of its PDC drill bit manufacturing facility in Tarbes, France, and the addition of applications engineering personnel to regional offices.

The Tarbes facility’s square meterage has been doubled, enabling the implementation of “lean manufacturing” flow lines to reduce the average time required to deliver a PDC bit. Sales in the East have especially fueled Varel’s growth in the last years — more than half of the company’s total revenue now comes from Eastern Hemisphere sales.

“Our growth has come from both the West and the East, but we are noticing that the East is growing faster,” said Bernard Pontneau, vice president, Eastern Hemisphere operations. “We attribute this to the drilling activity of the national oil companies operating in the Eastern Hemisphere.”

With the additional recruiting of personnel, Varel aims to serve markets in Malaysia, the United Arab Emirates, Saudi Arabia, the United Kingdom and West Africa. “By expanding our number of regional engineering resources, we can provide better regional service to our customers,” Mr Pontneau said.

Additionally, Varel has entered into an agreement to begin PDC drill bit assembly in Indonesia. Bit assembly is slated to begin by summer 2008.

Murchison Drilling Schools hires instructor for new courses

Murchison Drilling Schools (MDS) has hired Sam Sirman as an instructor in its new five-day Advanced Well Control course and 10-day Operational Drilling Technology and Advanced Well Control course, both WellCAP-certified. Mr Sirman has 27 years of experience supervising subsea and surface drilling operations. Prior to joining MDS, he worked as a rotating drilling superintendent with Pride International.

Pioneer Drilling agrees to acquire WEDGE companies

Pioneer Drilling Company has entered a definitive purchase agreement to acquire WEDGE Well Services, WEDGE Wireline and WEDGE Fishing and Rental Services. The WEDGE companies provide oil and gas well workover, wireline, and fishing and rental services for energy producers in the United States.

Wm. Stacy Locke, Pioneer president and CEO, stated, “This transaction further transforms Pioneer from a pure-play US land driller into a multi-national energy services provider.”

NOV to enter joint venture with UAE-based Fabtech

National Oilwell Varco has signed a definitive agreement with Fabtech International, an UAE-based fabrication business, to enter into a joint venture for the provision of rig-up and structural refurbishment services for the Middle East and North African land rig markets. Terms of the joint venture were not disclosed.

CAODC elects board of directors

The Canadian Association of Oilwell Drilling Contractors (CAODC) member companies have elected representatives to serve on its board of directors. Lyle Whitmarsh of Trinidad Drilling will serve as chairman, Bruce Jones of Stoneham Drilling will serve as vice chairman, and Terry Rosentreter of Pantera Drilling is past chairman of the board.

Walsh Offshore hires new safety divison manager

Chuck Praznik has joined Walsh Offshore as safety division manager. Mr Praznik has more than 12 years of experience as a primary safety manager, working for Livingston Oilwell in the 1970s and Salen Offshore Drilling in the ’80s. He has served as chairman of the IADC Accident Prevention Subcommittee.

VetcoGray marine riser system selected for Pride drillship

Pride International has selected the MR-6 marine riser system from VetcoGray, a GE Oil & Gas business, for use on a deepwater drillship to be completed in 2010. The system provides fully automated connection capabilities, as hydraulic units on the spider engage a cam ring on the box to actuate six dogs into the profile of the pin. This creates a full pre-loaded connection with an efficient and effective load path.

New operations manager named at Ward Petroleum

Ward Petroleum, an Oklahoma-based independent oil and gas company, has named Mark Jopling as operations manager. Mr Jopling has worked at Halliburton as a field and district engineer, designing and implementing cement work, fracture stimulations and drillstem testing. He joined Ward Petroleum in April 1981.

Retired IADC director I.J. Flowers dies

Former IADC director I.J. Flowers passed away on 29 January 2008 in Houston, Texas, at 81. His retired as an executive with Santa Fe International.

Sondex hires business development manager

Sondex Oilfield Technology, the latest addition to GE Energy, has named Goran Kolaric as business development manager for the Europe and Africa regions. Mr Kolaric has field experience with PathFinder Energy Services and Schlumberger.

HMC contracted for removal of Ekofisk platforms

Heerema Marine Contractors (HMC) has been awarded a contract by ConocoPhillips for the engineering, offshore preparation, removal and onshore recycling of nine platforms in the Ekofisk area in the North Sea. The Ekofisk topsides and jackets will be taken to a yard in Vats, Norway, for recycling and disposal. Offshore removal is expected to be completed by the end of 2013.

PRODUCTS

New VetcoGray wellhead targets deepwater applications
Offering increased casing load and higher pressure capacities, VetcoGray, a GE Oil & Gas business, has introduced the MS-800 Fullbore Subsea Wellhead System for deepwater applications. With the capacity to withstand 8 million lbs of load on the wellhead, the MS-800 is designed to help drillers reach deepwater targets in regions such as the US Gulf of Mexico and offshore Brazil. The new system increases the casing load capacity to 2 million lbs for the first position casing hanger and the 16-in. casing hanger, while also increasing the pressure capacity for the 16-in. hanger from 6,500 psi to 10,000 psi.

The load ring configuration, on all three casing hangers, also improves actuation.

A 15 ksi version of the system will be available for commercial applications in the second quarter of 2008, and a 20 ksi version is scheduled for release later in the year.

Weatherford Transformer wellhead system reduces NPT

Weatherford International has commercialized its Transformer wellhead system, which can significantly decrease nonproductive time over the well, completion and production mobilization time, while ensuring safer operations. The system allows for working access within the wellhead rather than underneath a suspended BOP, a much riskier operation. It facilitates quicker installation of the BOP to limit the amount of time personnel spend in the cellar. Installation time comparisons show a substantial decrease over a conventional wellhead.

EWECO mud pumps lengthen life of load components

Ellis Williams Engineering Company (EWECO) has introduced the Quintuplex 2200, the newest in its line of mud pumps. The Quintuplex 2200 features five cylinders instead of the typical three, which reduces piston rod load by more than 40% and therefore lengthens the life of all load components. Its reduced pressure variation of more than 70% (undampened) reduces mud noise on the drill string, which allows for more efficient MWD and LWD. It is the only mud pump in the industry that has a balanced eccentric crankshaft supported by four main (continuous anti-friction) roller bearings. Also, its double (redundant) fail-safe internal lube systems reduce wear on system components.

Reflex Marine, SEACOR Marine create personnel transfer solution

Reflex Marine and SEACOR Marine have joined forces to create a new marine personnel transfer solution. SEACOR’s CHEETAH CrewZer high-speed Class DP2 catamaran will be the fastest crew supply vessel in the Gulf of Mexico. Capable of carrying 150 passengers at up to 42 knots, the 165-ft vessel will offer a fast and reliable mode of personnel transportation to and from installations. Reflex Marine has developed a high-capacity personnel transfer safety system for this vessel. The 9-passenger Frog capsule transfers personnel from the CrewZer to the rig in a protected and safe environment. The CrewZer seats are like business-class seats on an airplane – reclining, spacious, and comfortable, with wireless Internet, satellite TV and cinema.

“I am the age-old story of the oilfield. I am third-generation oilfield who started college and made some bad decisions and ended up working the past twenty-odd years in it… I have made a good living in the oilfield, but there has always been that little something missing … a college degree.” (e-mail from an oil patch professional)

With the world’s thirst for oil and gas increasing every day, our industry has become more and more vital to not only national interests but also world interests. Hurricane disruptions have shown what impact our industry can have on the economies of nations.

And, still vivid in the minds of the general public is the sight of Bruce Willis, drilling contractor and rig owner, scrambling in and about his rig, firing a shotgun at a roughneck who was hitting on his daughter (from the movie Hollywood “Armageddon”). How unlikely is it that a bunch of red-neck yahoos could save the world? We might not feel as comfortable in a boardroom, or a room full of other traditional professionals such as doctors, lawyers, pilots and accountants, as we would in the outdoors hunting and fishing. However, are we any less the professional?

The drilling industry has come a long way in the past few years. Our rigs are being equipped with technologies far beyond the imaginations of our pioneering industry forefathers, and the pace of technological advancement is exponential. Along with this technology brings a whole new breed of oilfield hands. Today, it would be easier for my son—who grew up playing video games—to drill a well using cyber-technology, than a driller who has been on the brake since before my son was born. However, with our industry’s image, we have little threat from my son’s generation — why would they ever want to be a part of it?

Standing on tour on drilling rigs around the world are the world’s experts on drilling technologies and their applications. Who else has the knowledge and experience to do the jobs we do? We are drilling with more efficiency, effectiveness, and better environmental and safety records than ever before. And yet, “something is missing … a degree.”

It is past time that we, as an industry, establish the standard for experience, training, and competence required to man our fleets. Only with formal structure, consistent quality and standardized criteria can we give our training and developmental programs the validity required to be recognized by formal learning and educational institutions. With these standards, we can identify quality training providers, establish curriculum to fill gaps, and create an industry that is perceived as “professional.”

The Petroleum Extension Service (PETEX), a unit of the Division of Continuing Education at The University of Texas at Austin, has stepped up to help us develop certificate and degree programs for the professional men and women in our industry. PETEX is creating a partnership with Lone Star College, a Houston area community college system, to offer the program.

In addition, some Houston-area high schools are beginning to offer favorable introductory courses to the drilling industry. An obvious advantage to having early exposure to our industry and with follow-on degrees available is that we could attract the next generation of drillers to operate our rigs.

Advisory boards are currently being formed to develop program criteria, curriculum definitions and course requirements. Opportunities are available to help in the program development and set industry standards. With the name recognition of University of Texas and Lone Star College, certificates and degrees they issue can provide the recognition many of our professionals have been missing.

Those who are interested in joining this effort should contact Bill McPherson, director – organizational development and training, Noble Drilling Services, at bmcpherson@noblecorp.com This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or +1-281-276-6666.

The world’s first complete subsea solution for separating and injecting water and sand from the wellstream is on stream and creating added value at the Tordis field, said StatoilHydro. This technology is a breakthrough for a new generation of subsea solutions in the oil industry. The Tordis subsea development is part of a project that will improve the recovery factor for the Tordis field from 49% to 55%. This amounts to roughly 35 million bbl of oil, in addition to associated gas.

The full potential of the subsea facility has not yet been realised due to unforeseen challenges with the injection well, but alternative solutions are being evaluated.

Seabed separation makes it possible to improve recovery and accelerate oil and gas production. This increases the utilisation of installed facilities.

The technology provides added recovery of oil in cases where production is limited by pressure and capacity at the processing plants. The technology is particularly suitable in developments at great depths or far from shore and in areas where natural conditions and weather make subsea developments most appropriate.

While it is usual to send the wellstream up to the platform, where oil, water and gas are separated from each other in a processing facility, the new Tordis subsea separator removes water and sand before the oil and gas are pumped to the Gullfaks C platform. The separated water and sand are pumped down into the Utsira formation directly from the subsea installation and stored there.

This solution means that large amounts of water from the reservoir avoid the 10-km journey to Gullfaks C at sea level. This saves energy and reduces the discharge of produced water to the sea.

StatoilHydro believes its experiences from Tordis will be helpful in deepwater Gulf of Mexico, in the Shtokman development in Russia, and elsewhere in the world.

Widespread RFID ‘on the horizon’

M-I SWACO is allowing iiiTEC the use of patented radio frequency identification (RFID) technology for open- and cased-hole drilling and pre-completion wellbore clean-up applications. The use of RFID technology to actuate downhole equipment has the potential to save operators millions of dollars annually. Successful field trials have been conducted in the North Sea.

“We believe widespread use of this technology is on the horizon,” said M-I SWACO vice president Neale Browne.

The technology represents a significant improvement over the traditional mechanical/hydraulic/fluid systems currently in use to actuate downhole equipment. Developed and patented by Marathon Oil Company, RFID technology uses an intelligent chip to activate the tool.

This ability brings a new dimension in control, such as allowing a critical circulation valve to be activated in more than just the open or closed position. The technology being developed by M-I SWACO enables flow rate to one or more devices being run in a single tubing string to be opened, closed or retracted as many times as needed.

iiiTec’s core business is developing RFID applications for drilling and coiled-tubing operations.

Cesium formate brine used as well kill, suspension fluid in extreme HPHT well

Hungarian TXM Energy, a subsidiary of Canada’s Falcon Oil & Gas, and Cabot Specialty Fluids, a subsidiary of Cabot Corp, recently set a new record for the use of cesium formate brine in extreme well construction operations. The brine was successfully used as a well kill and suspension fluid in an extreme HPHT gas appraisal well in Hungary. The well measured a total depth of 5,692 m, with a bottomhole static temperature of 455ºF (235ºC), and pressures exceeding 14,000 psi. Approximately 60 cu m of 2.15 sg cesium formate was bullheaded into the well to minimize wellhead pressure so that a packer and test string could be snubbed into the hole. The bottom of the column of cesium formate brine was at a depth of 5,300 m, where the temperature was 437ºF (225ºC). The cesium formate brine remained in the well for 39 days before being displaced by reverse circulation to a packer fluid before conducting well test operations. Analysis of the returned formate brine showed no significant change in properties or composition, and it was put on stand-by for further use.

High-density cesium formate brine has now been run back into the well as a long-term suspension fluid, where it may remain for up to a year.

Baker Oil Tools completes 100th installation of its intelligent well system

Baker Oil Tools has completed the 100th worldwide installation of its intelligent well system (IWS) at the Okume Complex, offshore Equatorial Guinea. The technology provides permanent monitoring of downhole flow, pressure and temperature, enabling the operator to optimize production and reduce costly interventions.

“We are very proud of this outstanding track record, made possible through strategic project management and the application of proven technology,” said Craig Coull, IWS manager for Baker Oil Tools. “Our intelligent well systems have been installed throughout the world, including the Middle East, Latin America, Gulf of Mexico and Africa.”

In Equatorial Guinea, a highly deviated well at 500-ft water depth required a stacked completion with independent control of commingled production from two oil zones. The 70° deviation of the well made mechanical shifting of downhole valves expensive and risky. To address these issues, Baker Oil Tools installed its InForce intelligent completion system.

Key system components include remotely operated, multi-position choking valves for selective control of the two oil-producing zones and a fully automated surface control system. ProductionQuest, a Baker Hughes business unit, provided a triple-gauge package to monitor both zones and their commingled flow, displaying the data in real time and providing back-up data storage.

Delmar installs 1st gravity-installed vertical load anchor in Gulf of Mexico for Anadarko

Delmar Systems has successfully installed the Gulf of Mexico’s first gravity-installed vertical load anchor (VLA). The patented OMNI-Max anchor was installed at Anadarko’s Garden Banks 667 location in late December 2007.

The anchor was deployed from the AHTS – Alex Chouest and penetrated the seabed. It was pull tested by the installation vessel and, with mooring line forerunner attached, abandoned on the seabed in the preset configuration. The anchor line was later connected to Diamond Offshore’s MODU Ocean Star using Delmar’s patented subsea mooring connector to connect the preset mooring line to the rig’s self-contained mooring components. The installed OMNI-Max anchor complements the MODU’s 7 other self-contained/deployed conventional drag embedment anchors with attached mooring lines.

“This anchor technology offers great benefit in design of mooring systems that reduces risk to subsea infrastructure in the event of station keeping damage or failure. The OMNI-Max is capable of being loaded in any direction 360º around the axis of the anchor,” said Evan Zimmerman, Delmar engineering manager.

“Under extreme loading and uplift angle conditions, the anchor will penetrate deeper into the soil to gain the needed holding capacity. This technology is an industry first that may allow damaged moorings to survive longer in the event of multiple line failure since the load angle can change without the capacity of the foundation being adversely affected. This is a milestone achievement to assist operators such as Anadarko by developing a more efficient anchor to moor MODUs over and among valuable seabed infrastructure.”

Schlumberger, TESCO offer directional casing while drilling

Most casing while drilling (CwD) is done by attaching a non-retrievable bit to the bottom of the casing and leaving the bit in the hole. Directional casing while drilling (DCwD) uses a steerable BHA that is retrieved, making DCwD a viable alternative to conventional directional drilling in depleted or mature fields that have severe lost-circulation and wellbore stability problems, Schlumberger said during a press conference held at its exhibit booth during the 2008 IADC/SPE Drilling Conference, held in Orlando, Fla., on 4-6 March.

Well construction in mature fields with standard drillpipe sometimes requires extra casing strings to avoid well stability problems caused by depleted formation pressures. Because they improve wellbore stability, the DCwD techniques developed through collaboration between Schlumberger and TESCO may reduce the number of casing strings needed.

DCwD also improves well control because it allows circulating while the BHA is being retrieved or run into the well. They also leave the casing at or near the bottom while the BHA is out of the well. During drilling, DCwD rotation strengthens the borehole wall because of the plastering effect, also known as smear or stress cage, which occurs in the narrow annulus.

The first deployment of DCwD offshore was on a well drilled from the ConocoPhillips-operated Eldfisk Bravo platform in the Norwegian sector of the North Sea. Both the 10 ¾-in. and 7 ¾-in. sections of Well 2/7B-16A, totaling 10,968 ft, were drilled successfully and positioned as planned using retrievable BHAs that incorporated Schlumberger’s PowerDrive X5 rotary steerable systems, PowerPak straight positive displacement motors (PDMs), and Pulse telemetry and surveying systems. The casing strings were rotated at 20-30 rpm from the surface, and the PDMs provided an additional 130 rpm to the RSS, PDC bits and under-reamer. ROP was as high as 80 ft/hr. All directional objectives for the wellbore were achieved, with a maximum dogleg severity of 4.83º/100 ft.

Sonangol and BP have announced the Portia oil discovery in ultra-deepwater Block 31, offshore Angola. Portia is the 15th discovery that BP has drilled in Block 31. The well is approximately 7 km north of the Titania discovery. Portia was drilled in a water depth of 2,012 m, some 386 km northwest of Luanda, and reached 5,678 m TVD below sea level. This is the fourth discovery in Block 31 where the exploration well has been drilled through salt to access the oil-bearing sandstone reservoir beneath. Well test results confirmed the capacity of the reservoir to flow in excess of 5,000 bbl/day.

Pride drillships awarded contracts by BP, Petrobras

Pride International has announced two multi-year contracts for two ultra-deepwater drillships. First, a five-year contract with a BP subsidiary will allow Pride to expand its deepwater drilling operations and geographic reach in deepwater drilling basins to the US Gulf of Mexico. The contract is for a ultra-deepwater drillship under construction at the Samsung shipyard in South Korea. Scheduled for delivery during Q1 2010, the rig will be capable of drilling in water depths up to 12,000 ft (equipped for 10,000 feet) and drilling to a total vertical depth of up to 40,000 ft.

The second contract is with a Petrobras subsidiary, for the construction and operation of an advanced-capability, ultra-deepwater drillship in support of Petrobras’ international exploration and development drilling projects. The rig, to be constructed at the Samsung shipyard,  is expected to be delivered in Q1 2011. The contract allows Petrobras to elect, by 31 January 2010, a firm contract term of at least five years and up to seven years.

Separately, Pride has announced contract extensions from Petrobras for deepwater semis Pride Rio de Janeiro and Pride Portland. The extensions, representing six years per rig, are expected to commence during late 2010 to early 2011, in direct continuation of each rig’s current contract commitment and a scheduled shipyard program. The rigs have operated offshore Brazil for Petrobras since entering service in 2004.

Rowan jackup moving to Middle East to drill offshore Saudi Arabia

Rowan Companies’ Bob Keller jackup has been awarded a three-year drilling contract, which includes an option for a fourth year, for work offshore Saudi Arabia. The Bob Keller recently concluded work in the Gulf of Mexico and is en route to the Middle East. It is expected to commence drilling operations during Q2 2008. Rowan re-entered the Middle East market two years ago after a 25-year absence. This contract expands its presence in the area to nine jackups.

Rowan also has announced a multi-well contract with McMoRan Oil & Gas Corp that includes re-entering the Blackbeard Prospect. The Gorilla IV has been committed for a minimum of 90 days, and work on Blackbeard is priced at a dayrate in the mid-$190s. The initial Blackbeard well was drilled to a depth of just over 30,000 ft during 2005-06 by Rowan’s first Tarzan Class jackup, the Scooter Yeargain.

Additionally, Rowan’s Super Gorilla class jackup, the Bob Palmer, is undergoing final preparations for its initial assignment on BP’s Eldorado Prospect. The rig will drill one or more wells targeting a depth of at least 28,000 ft.

StatoilHydro to drill first offshore prospect as operator in Canada

StatoilHydro will drill its first offshore prospect as operator in Canada in Q4 2008, at the Mizzen prospect off the east coast of Newfoundland and Labrador. Husky Energy will participate in the exploration well. A rig-sharing contract with Petro-Canada and Husky will allow StatoilHydro to bring in Transocean’s Henry Goodrich rig for the operation. It is expected to arrive in Newfoundland this summer. The Mizzen prospect is located in block EL 1049 in the Flemish Pass Basin offshore Newfoundland and Labrador in 1,100 m water depth.

H&P to build 11 more FlexRigs to work in US, Latin America

Helmerich & Payne will construct 11 additional FlexRigs to operate under long-term contracts. Four are scheduled to operate in the US and seven more in Latin American locations.

The four to operate in the US are scheduled to be deployed in the Barnett Shale during 2008. Two will work for Quicksilver Resources and two for Carrizo Oil & Gas. The other seven are scheduled to be completed and mobilized at the rate of one per month beginning in fiscal Q4 2008. Five are expected to operate under five-year term contracts and the remaining two under three-year term contracts. The name of the customer was not disclosed.

FlexRigs are expected to represent almost 70% of the company’s global land fleet by the end of calendar 2008.

1st of 4 high-efficiency Maersk jackups delivered

Keppel FELS has completed the Maersk Resilient, the first of four identical jackups for Maersk Contractors. The MSC CJ 50 design rig is capable of operating in water depths up to 350 ft and is designed to be 20% more efficient than conventional jackups.

“High efficiency and safety have been the key drivers in the design of these new rigs, and we look forward to proving their qualities in operation,” said Maersk Contractors CEO Claus V Hemmingsen. “The delivery of this new design cements our position as a leader within advanced jackup rigs.”

The rig’s first assignment is a three-year contract with Dubai Petroleum Establishment in the Persian Gulf.

Usan field offshore Nigeria to be developed

Chevron Nigeria Deepwater and its co-venturers are moving forward to develop the offshore Usan field in Nigeria, expected to “generate significant new production from West Africa’s deep water,” said Ali Moshiri, president, Chevron Africa and Latin America E&P. Discovered in 2002, the Usan Field is located at a water depth of 2,461 ft (750 m), approximately 62 miles (100 km) off the coast in the eastern Niger Delta. First production is expected in late 2011, with peak production of 180,000 bbl/day. Chevron’s co-venturers are Elf Petroleum Nigeria, Esso E&P Nigeria and Nexen Petroleum Nigeria.

PetroVietnam orders new jackup from Keppel FELS

Keppel FELS will build a third KFELS B Class jackup for PetroVietnam Drilling Investment (PVD Invest), a subsidiary of PetroVietnam Drilling & Well Services (PV Drilling). PVD Invest’s second rig, PV Drilling II, is already under construction at Keppel FELS. Both the second and third rigs are scheduled for delivery in Q4 2009.
“It is estimated that there will be some 900 exploration wells in Vietnam over the next 15 years. We want to position ourselves to capture this market,” said Do Van Khanh, CEO of PV Drilling and chairman of PVD Invest.

ENSCO enters letter of intent for new semisubmersible in ENSCO 8500 Series

ENSCO International has entered a letter of intent for a contract for ENSCO 8503, an ultra-deepwater semi under construction. The contemplated contract will be for a two-year term, with an option for extension. The aggregate dayrate revenue for the two-year term is expected to be approximately $372 million. The base operating rate is $510,000/day, and the dayrate will be subject to adjustment for variances in operating costs from current levels.
ENSCO 8503 is the company’s fourth ultra-deepwater semisubmersible rig in the ENSCO 8500 Series under construction and will increase its deepwater fleet to five rigs, inclusive of the ENSCO 7500 deepwater semi. All four of the 8500 Series rigs are under construction at the Keppel FELS shipyard in Singapore. Delivery for the ENSCO 8503 is expected in Q3 2010. The 8500 Series rigs will be capable of drilling in up to 8,500 ft of water, and can be upgraded to 10,000 ft.

Transocean announces contract extensions

Transocean has announced a three-year contract extension for the ultra-deepwater drillship Deepwater Millennium from Anadarko Petroleum, commencing in June 2010. The rig is one of 34 high-specification floaters in the Transocean fleet, 13 of which are ultra-deepwater floaters. It is capable of operating in water depths up to 10,000 ft.

Separately, Transocean has announced the award of a 689-day contract by a consortium headed by Marathon International Petroleum Indonesia. Under the contract, the ultra-deepwater drillship GSF Explorer will drill a series of exploration wells in a deepwater province in Indonesia. The rig was constructed in 1972 and upgraded in 1998 and is capable of working in water depths up to 7,800 ft. The contract is expected to commence in Q4 2009.

Additionally, Transocean has agreed to sell three of its US Gulf of Mexico jackup rigs and related equipment for $320 million to Hercules Offshore. The sales of the GSF Adriatic III, GSF High Island I and GSF High Island VIII will mark Transocean’s exit from the shallow-water area of the US GOM.

Rig Automation is not only here to stay, it continues to intensify in sophistication and complexity. Mechanized rigs are increasingly common, observed Gregers Kudsk, vice president-engineering and projects for Maersk Contractors, speaking in a 5 March Plenary Session at the IADC/SPE Drilling Conference in Orlando, Fla. (4-6 March). In some areas of the world, he said, automation is not optional, but required. Compared with traditional technology, Mr Kudsk said, new technologies can save 20% or more in drilling time. He pointed out that only about 30% of total drilling time is spent drilling and tripping, while the rest is flat time. Therefore, our real opportunity for increased efficiency is by narrowing that 70% flat window. Advanced rig technology can help.

The value of these advanced systems can be immense. However – at times – so can the difficulty in using the equipment and in its reliability. Equipment compatibility –  for plug-and-play electrical interfaces, training, and even differences in jargon – are all challenges worthy of study and action.

So IADC has organized a group to attack some of these issues. The new IADC Advanced Rig Technology Committee has set its mission to improve safety and efficiency through sound operating procedures, design of automated systems and standardizing automation. Some of the specific topics the committee will address include communication between equipment, competency, HSE and reliability.

We held our inaugural meeting during the aforementioned IADC/SPE conference in Orlando. The kick-off event drew broad representation among drilling contractors, operators and service companies alike. Companies represented included Chevron, Grey Wolf Drilling, KCA DEUTAG, Key Energy Services, Maersk Contractors, Atlas Copco, Athens Group, Forum Oilfield, National Oilwell Varco and Weatherford. Drillingcontractor.org reported on the committee meeting in an e-News broadcast from Orlando, and the article prompted several other drilling professionals and companies to sign on. Our next meeting will likely be during the Offshore Technology Conference in Houston.

Some of the key work items identified included:

•    Standardizing nomenclature;

•    Guidelines for standard plug-and-play interfaces for drilling equipment, emphasizing electrical communication;

•    Decision matrix to assist in deciding when an automated system is appropriate;

•    Guidelines for training on advanced rig equipment;

•    Guidance to drilling contractors on operating advanced rig equipment;

•    HSE guidelines for advanced rig equipment, as well as a risk assessment checklist;

•    Equipment reliability reporting: Devel-opment of a standard format for voluntary problem reporting could be a handy user tool. Such data could possibly be captured on the IADC website;

Ultimately, the committee is exploring opportunities to comprehensively automate the complete drilling process, integrating surface and downhole equipment for both drilling and completion systems.

The individuals I’ve had the pleasure of working with thus far in the early stages of this committee are truly impressive in their knowledge of rig systems. This group has the potential to make some huge strides forward.

If you are interested in joining us in this work, please drop me an e-mail. This is just the latest example of how IADC does what’s right for the rig – and by so doing, does what’s right for us all.

DC Assistant Managing Editor Linda Hsieh contributed to this article.

You can reach Mike Killalea at mike.killalea@iadc.org. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

The new IADC Advanced Rig Technology Committee plans to work toward guidelines and best practices for automated drilling systems, as well as examine standard methods of reporting reliability problems with advanced rig equipment. The committee held its inaugural meeting during the 2008 IADC/SPE Drilling Conference in Orlando, Fla., on 5 March.

Automated drilling systems are increasingly common in today’s rig fleet. However, reliability can be problematic.

The IADC committee will consider a wide range of issues, including:

• Standardization of plug-and-play equipment electrical interfaces.

• Guidelines for competency and HSE.

• Guidance to drilling contractors on appropriate operations for automated systems.

• Developing a database of reliability or failure statistics for key systems, such as drawworks; top drive; pipe handling, both in the derrick and on the rig floor; and the human/equipment interface.

Companies represented at the meeting include Chevron, Grey Wolf Drilling, KCA DEUTAG, Key Energy Services, Maersk Contractors, Atlas Copco, Athens Group, Forum Oilfield, National Oilwell Varco and Weatherford. The committee will meet next during OTC.

Any IADC member may participate in the committee. For details, contact Mike Killalea at mike.killalea@iadc.org. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

IADC committee ratifies new MPD/UBO definitions

The IADC Underbalanced Operations & Managed Pressure Drilling Committee has ratified new definitions for the terms “managed pressure drilling,” “underbalance,” “underbalanced drilling,” and “underbalanced operations.” Revisions aim to clarify the two types of operations that are sometimes confused by industry decision-makers.

Gavin Humphreys of Stena Drilling, the committee’s new chairman, presided over the first-quarter meeting, held in Abu Dhabi on 26-27 January and hosted by National Drilling Company. New definitions were ratified at the meeting, then announced by Mr Humphreys at the 2008 SPE/IADC Managed Pressure Drilling and Underbalanced Operations Conference, 28-29 January in Abu Dhabi.

Ken Malloy of Stress Engineering presented a paper at the same event, “Managed Pressure Drilling: What It Is and What It Is Not,” to elaborate on the definitions.

Having completed work on a “best practice” document for underbalanced operations, the UBO & MPD Committee has begun to draft a similar guideline for managed pressure drilling. Interested parties should attend the group’s second-quarter meeting, scheduled for 14-15 April in Frisco, Texas.

The newly adopted definitions can be found in the “Completed Documents” section of the UBO & MPD Committee web site. For additional information on committee activities, please contact Ken Fischer at ken.fischer@iadc.org. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

NSC leaders sign UK step change in Safety charter

Leaders of the IADC North Sea Chapter joined the UK’s Step Change in Safety organisation in early February to underline their personal commitment to safety. Step Change in Safety is a cross-industry initiative that seeks to achieve continuous improvement in North Sea oil industry safety standards.

The February event drew about 70 oil and gas company managing directors and senior management. Attendees were invited to sign a charter reaffirming their commitment to Step Change strategies and principles through visible leadership, effective engagement with their workforce, and by promoting effective collaboration in the sharing of best practices and lessons learned.

The US Minerals Management Service held a workshop in New Orleans on 23 January to allow three Gulf of Mexico operators to make their case for “suspension of operations” when technology to exploit offshore leases is allegedly not available. IADC representatives attending the workshop concluded there’s no justification for expanding the criteria for suspensions of operations, and that MMS has sufficient authority to grant relief as needed. In its formal comment to the docket, IADC observed that the same so-called technological barriers found in the GOM deepwater frontier have been surmounted elsewhere in the world. IADC argues that operators who won’t fulfill their lease commitments by the end of their lease terms must return the OCS acreage to MMS inventory for re-offer.

IADC brief supports Noble appeal

IADC has filed a reply amicus curiae brief in the Texas Supreme Court supporting Noble Drilling’s appeal of an adverse decision in the Texas First Court of Appeals. The case involves the application of the Jones Act to an offshore worker’s alleged personal injury while engaged in “slinging” operations. IADC counsel reiterated that the worker was operating within a safe environment, following widely accepted industry practices. The Texas Supreme Court is expected to rule soon on whether it will take the case.

Bahamas ratifies maritime Conventions

The Bahamas has deposited its instruments of accession to the International Convention on the Control of Harmful Anti-Fouling Systems on Ships, 2001, and to the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001. These will enter into force for the Bahamas on 17 September 2008 and 21 November 2008, respectively. Both Conventions will require shipowners to take specific actions to attain compliance with new regulatory requirements.

NOPSA reviews helicopter operations

The “Review of Offshore Helicopter Operations in Australia,” a Hart Aviation report commissioned by Australia’s NOPSA, is “cursory and lacking in relevant information” regarding the industry’s ongoing standards development, said IADC in a letter to NOPSA. The letter reminded NOPSA that the report fails to mention the International Civil Aviation Authority (ICAO) and its standards for international civil aviation. Additionally, IADC pointed to the report’s sweeping and inaccurate generalization about the adequacy of helideck markings in the Gulf of Mexico. IADC noted that MODU helidecks in the GOM are regulated by the US Coast Guard, which applies standards either in the Code of Federal Regulations or the IMO’s MODU Code. A new edition of the latter is under development, specifically to harmonize its provisions with CAP 437.

Discussion at the IRF event focused to a large extent on asset integrity of offshore installations. Distilled to its essence, this broad topic spans the overall ability of a facility, its crew and management to conduct operations safely and efficiently. Specific topics include operational integrity, maintenance, fitness for purpose, crew competency, among others.

Contractors and operators have made great strides in adopting safety management systems and sharply improving the safety of our operations. This progress is evident in the industry’s continually falling LTI rate and improvements in other benchmarks, for instance.

Asset integrity attempts to take a “30,000-ft” systems view. Central to this concept is the recognition that safety management systems rely on multiple barriers to incidents. Ideally, each defensive layer stands intact. In the real world, however, these layers are more like slices of Swiss cheese. Holes exist in the layers and continually shift. When the holes of several slices of defensive barriers align, the potential for an accident emerges.

The concept of asset integrity stands in the forefront of the next level of hazard control.
At the Offshore Safety Forum, I invited IRF to supply a series of articles on asset integrity to be published in Drilling Contractor. I am pleased that IRF was open to the opportunity to begin a dialogue with industry on the topic and has accepted the offer.

The first article will appear in the May/June edition of DC, just in time for OTC. It is being provided by the UK Health & Safety Executive and will cover key results from a series of inspections of nearly 100 installations between 2004 and 2007. Ten installations were mobile offshore drilling units.

A key finding was that the asset integrity of MODUs is generally managed better than for other types of installations – i.e., fixed and floating production installation.

We applaud IRF for this effort to clearly delineate the issues associated with asset integrity and are pleased that DC will be the vehicle for this communication.

IADC strives to “Do What’s Right for the Rig.” Asset integrity may be the next big step.

eDrilling is a new and innovative system for real-time drilling simulation, 3D visualization and control from a remote drilling expert centre. The concept uses all available real-time drilling data (surface and downhole) in combination with real-time modeling to monitor and optimize the drilling process. This information is used to visualize the wellbore in 3D in real time. eDrilling has been implemented in an onshore drilling center in Norway and has been used on several drilling operations. This article focuses on utilization of an advanced flow model for real-time supervision and control of ECD and ECD-related effects.

Real-time modeling

The key elements of eDrilling are real-time simulation, visualization in a virtual wellbore and decision support (Ref 1-3). The infrastructure allows for simulation of the drilling sub-processes by integrated drilling models driven by the process itself. This RT-enabled integrated drilling simulator creates a “mirror” of the drilling process itself, and gives important information on key drilling parameters like hydraulics profile (ECD), temperature profile, friction conditions along the drillstring and wellbore, cuttings transport conditions, well instability tendencies, pore pressure ahead of drill bit, optimal ROP — all in real time.

The system also makes automatic diagnosis of upcoming drilling problems by combining real-time simulations with drilling data.

The virtual wellbore is another key element of eDrilling. The 3D visualization of the drilling itself (drill bit, string, BHA, etc) in real time is supplemented with VR visualization of simulation results. This makes the virtual wellbore the key tool to communicate well status as well as inform across boundaries (drilling, geology, asset team, etc) during the drilling operation.

Quality of real-time data from external sources into the eDrilling system is important because models need good input data to produce accurate and reliable results. Thus, one benefit of using models online is that data deficiencies, including signal transmission errors, are revealed and can be addressed or accounted for.

When using the eDrilling system, data quality is addressed in several ways:

• Improve data sources and signal transmission.

• Filter invalid data.

• Correct data before used by models.

The last two points are addressed by a dedicated data quality module (DQM), which corrects data by various calculations.

Infrastructure. The Data Distribution System (DDS) is the kernel for data distribution in the eDrilling system. Clients can subscribe and publish data to the DDS server. External data is published into the server via interface clients. At the Ekofisk pilot, OPC and ODBC clients are used for this purpose. WITS data from Halliburton (Sperry Sun) are fed into the system via the OPC client, and Peloton WellView data are fed into the system via the ODBC client. In the near future, the DDS system will have a WITSML DDS client enabling WITSML communication. Figure 1 shows a typical eDrilling system infrastructure.

3D visualization. The eDrilling 3D engine has the capability to import 3D models with high complexity and zoom into subsurface details. Figure 2 shows an example:

Visualization of geology. The Ekofisk field was found in 1969 and has produced 2.1 billion bbl/day of oil and 124 billion cu m/day of gas as of 2004, and will still be in production for many years. Average production is 350,000 bbl/day oil, 350 million standard cu ft with a water injection of 900,000 bbl/day. The thickness of the Ekofisk reservoir complies with the Eiffel tower. Orange indicated oil (Figures 3a and 3b).

In eDrilling, the focus related to geology is to show the user the actual layer and give real-time information to the driller and other users about when equipment is passing through different formations/layers (Figure 4).

Virtual well. The eDrilling 3D visualization system enables the user to get a true overview of the well by displaying all relevant information in real time 3D. Figure 5a and 5b show visualization examples.

Well description with drilling experiences. The well used for this presentation is a sidetrack from the main wellbore. The operational sequence covered in this presentation is to drill out the shoe track and continue to drill into the reservoir. The presentation covers three days of operations, 2-5 September 2007. The drillstring consisted of an 8 ½-in. x 9 ½-in. Geo-Pilot steering assembly, with a formation pressure tester and MWD pulse telemetry system.

Oil-based mud was used. The mud in the well at the start of this sequence had a density of 14.7 ppg. This was displaced with mud having density of 9.5 ppg at the start of this sequence. Mud density fell slightly during this sequence and was later increased first to 10.0 ppg and later 10.2 ppg.

Inclination angles for this section were stable around 9º with a slight swing in azimuth to the right.
Many problems were encountered with this well, both before, during and after this section. Problems include mud loss, gas influx, tight hole and equipment failure.

Supervision of ECD. An advanced pressure and temperature model, optionally with automatic or semi-automatic calibration, will run continuously during drilling operations, and help convert raw data to useful information easier and more reliably. A comprehensive presentation of the model is given in Reference 4, and several applications are presented by References 5-10, but then not integrated in the eDrilling system. The example discussed here is from a real well with the model integrated in the eDrilling system.

Figure 6 shows flow model results when replaying data from the well on Ekofisk through the eDrilling system. A drilling and reaming sequence of 1.5 days is shown. The decreases and increases in pressure after 3.1 days are due to mud density increases. In this sequence, the model reproduced variations accurately without continuous tuning; only a constant 10% correction was applied. There is some deviation between model and data shortly after 2.75 days, most likely due to inaccurate information on mud density changes. The good match with measured standpipe pressure supports the calculated bottomhole EMW. The model calculates also ECD at other positions along the open hole, and the result is compared with the most recent collapse, pore and fracture pressure available. The 3D view will then clearly warn operators and engineers when getting close to or outside borders.

Pressure points measured while drilling are added in Figure 7. Gas return was observed in this period, and mud density was increased several times, which seems consistent with the fact that some pressure points are above calculated EMW. See further discussion in the section on diagnosis below. With an accurate estimated pore pressure profile, the system would give early warnings on these events.

Diagnosis of problems. The availability of real time-enabled advanced models and methods prepare the way for much a more robust and reliable diagnostic system. Early versions of the following sub-systems have been implemented as integrated parts of the eDrilling system:

• Early kick and loss warning. The system monitors the ECD vs pore and fracture pressure profile, and gives a warning when these limits are exceeded. In Figure 8 the relative ECD vs relative pore pressure is shown. The mud density is increased two times in order to combat kick indications. The eDrilling system detected this early and gave a warning that a kick was possible (Figure 9).

• Improved volume monitoring.

• Improved hole cleaning monitor.

• Improved detection of impending stuck pipe and early detection when going stuck.

• Improved ROP monitoring.

The benefits of this system are several:

• Earlier warnings.

• More reliable warnings, i.e., fewer false alarms and fewer real events with no alarm.

• Continuous focus on the process also through tedious periods that are considered low risk by the drilling crew.

Conclusions

A comprehensive system with multiple models and a 3D visualization application integrated with live drilling data in real time has been developed and demonstrated on data from a real well. An immediate benefit of the system is easy access to very advanced modeling for drilling crew and experts who monitor operations from onshore or on the rig.

This article uses dynamic flow modeling as an example to illustrate how a slightly calibrated model reproduces accurately standpipe pressure, and thus most likely gives an accurate picture of open hole pressure, which can be automatically compared to expected collapse, pore and fracture pressure along the open hole section.

Furthermore, there is an ongoing development of a more automatic diagnosis system, which combines results from modeling and real time data to give early warnings on and reliable interpretation of unwanted events. We have shown this applied on ECD monitoring and early kick detection and warning.
About the Authors: Rolv Rommetveit is research director with SINTEF Petroleum Research. He has a PhD and more than 20 years of experience in R&D and technology developments in drilling & well technology. Knut Bjørkevoll is senior research scientist with SINTEF. He has a PhD and more than 15 years of experience in R&D and technology developments in drilling & well technology. Sven Inge Ødegård is VP, integrated operations with Hitec Products Drilling. He has about 15 years of experience with drilling control systems and drilling automation.

Acknowledgements: The authors wish to thank ConocoPhillips and Mike Herbert in particular for supporting this work.
This article is based on a presentation at the IADC Well Control Europe Conference & Exhibition, 9-10 April 2008, Amsterdam.

References
1. Rommetveit, R., Bjørkevoll, K. S., Halsey G. W., Fjær, E., Ødegård, S. I., Herbert, M., Sandve, O. and Larsen, B., SPE 106903, “eDrilling: A System for Real-Time Drilling Simulation, 3D Visualization and Control,” 2007 SPE Digital Energy Conference, Houston, Texas, 11-12 April 2007.
2. Kolnes, Ø, Kluge, R,  Halsey, G. W., Bjørkevoll, K. S., Rommetveit, R.; SPE 106916, “From Sensors to Models to Visualization – Handling the Complex Data Flow,” 2007 SPE Digital Energy Conference, Houston, Texas, 11-12 April 2007.
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