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By Linda Hsieh, assistant managing editor

Cementing may be a small portion of the overall well construction cost, but its impact on the success or failure of a well is anything but, said Dan Mueller, cementing specialist for ConocoPhillips.

Especially in deepwater, where time equals big money, having to perform a squeeze operation to repair a poor cement job can easily push a project into serious and costly trouble. “You hear these numbers thrown around and they almost seem unreal, but if you don’t get a competent cement sheath around the shoe of a surface casing in deepwater, it will cost at least $1 million,” he said, “and that’s a conservative number.”

Dan Mueller, ConocoPhillips, is past chairman of API SC-10, current chairman of the Editorial Group of ISO TC67/SC3/WG2 and co-chairman of the API SC-10 Publications Committee.

The high stakes at play – plus the increasingly hostile conditions under which wells are drilled today – means that preplanning on a well-by-well basis is crucial. Thermal modeling, wellbore stress modeling, hydraulics modeling, computational dynamics modeling – everything that can be done has to be done to make sure nothing gets overlooked. In today’s complex wells, Mr Mueller explained, anything that’s an “unknown” has the potential to damage the cement’s effectiveness.

All of which means that cementers have their work cut out for them. In fact, Mr Mueller likens the role of cementers in well construction to that of cornerbacks in football: “When we fall down and someone passes for a touchdown, everyone sees it. … When there’s a failure (in cementing), it’s typically quite noticeable and costly, even catastrophic. … You have to always ask yourself, ‘What haven’t I thought about? What can go wrong? If it does go wrong, how can we fix it?’ ”

STARTING FROM BOTTOM

Graduating from the University of Oklahoma in 1979 with a degree in geology, Mr Mueller started his career in Houma, La., with The Western Company of North America, which provided services such as cementing and fracturing. It was a base-level, physically demanding job that, as tough as it was, gave trainees valuable field experience with cementing equipment and allowed them to gain familiarity with the overall cementing process, he recalled. By 1989, Mr Mueller had worked his way up to a research associate in the company’s R&D facility just outside of Houston.

In 1991, he joined BJ Services as a senior research engineer working on cement research and development. It was during his 17-year tenure with BJ that his focus landed on designing deepwater cements – dealing with higher numbers of casing strings, lower ECD tolerances, temperature differences between cold seawater and hot producing wells, etc. He also looked hard at mechanical integrity, a significant concern in a deepwater well.

In 2008, Mr Mueller joined ConocoPhillips as a cementing specialist, where he now provides well cementing support for the company’s global drilling projects. His day-to-day responsibilities have not changed significantly from his position at BJ, he noted, yet, working from an operator’s perspective does have its advantages. “We get to see early on the well plans – what they’re intending to do, trying to achieve, how the well will be drilled. … It gives you the opportunity early in the process to offer input and suggestions.”

SOME THINGS CHANGE, SOME DON’T

Looking at the technological evolution of cementing since he entered the industry 31 years ago, Mr Mueller noted that there have definitely been major improvements in automated mixing systems and in the cements themselves. Operators now have a wide variety of cements available to them – resilient cements, self-healing cements, high-performance lightweight cements, foam cements, CO₂-resistant cements – something for every application, it seems.

Yet, the basic overall process of cementing has not changed. It’s still mixing and proportioning cement and water at surface, then placing it into the wellbore with a triplex pump and displacing it to its proper point, he said.

Moreover, the overall objectives of cementing have not changed. “It’s the goal of any cementing operation to establish and maintain zonal isolation for the life of the well … we always have to keep that in mind,” Mr Mueller said. “We basically have one opportunity to cement the well properly, and we have to do all that we can to ensure the cement is properly placed and intervals being cased off are properly isolated. That’s as true as it was 50 years ago.”

Fortunately, some things do change with time – like mind sets about safety. Mr Mueller emphasized that he has witnessed major and welcome improvements on this front. “Every morning meeting I sit in, irrespective of where I am globally, always starts with HSE… I can look at a piece of equipment and compare it very closely to what it was in 1979, but the safety culture has changed profoundly. I can’t wait to see what happens 20 years from now when it’s been a part of that psyche for a generation of oilfield workers.”

Saudi Aramco has awarded Baker Hughes a two-year contract for two fit-for-purpose underbalanced coiled-tubing drilling packages designed to re-enter existing wells in the gas fields of southern Saudi Arabia. Baker Hughes will provide project management oversight and downhole drilling and completion services. The contract has an option for a one-year extension, and operations are set to begin in Q2 2010.

Saudi Aramco plans to re-enter existing wells and drill horizontally into untapped reservoir sections. The horizontal wells will be drilled underbalanced to minimize damage to the reservoir.

Separately, Baker Hughes has received two-year extensions on two contracts in Norway from Statoil. The contracts are for the provision of drill bits, directional drilling, formation evaluation and related services on 10 to 12 rigs operating in multiple fields. Valued at approximately $270 million, the award extends the contracts through October 2012.

GE gets 1st order for new-design SVXT subsea tree

GE Oil & Gas announced that it will supply its new VetcoGray SVXT S-series subsea tree to Shell UK, the first order for the new product. It will be delivered in Q4 2010 and installed in Q1 2011. The SVXT merges horizontal and vertical tree technology and is intended for harsh, shallow-water fields, predominantly in the North Sea. The streamlined design reduces tree weight by over 20%, significantly decreases height and delivers essential functionality in a pre-engineered, preconfigured modular approach.

Newman is Transocean CEO

Effective 1 March 2010, Steven L Newman succeeded Robert L Long as CEO of Transocean. Mr Long, who served as 2007 IADC chairman, is retiring from his CEO post, as well as the company’s Board of Directors. Mr Newman has served as president and chief operating officer since May 2008. He previously served in various senior management roles. He also has served in international field and operations management positions.

Schlumberger, Smith announce merger agreement

The Boards of Directors of Schlumberger and Smith International have jointly announced the approval of a merger agreement. Closing of the transaction is expected in the latter half of 2010.

Separately, Schlumberger said that its Board of Directors has appointed Paal Kibsgaard chief operating officer. Reporting to Andrew Gould, chairman and CEO, Mr Kibsgaard will be responsible for the day-to-day management of all worldwide operations in addition to the Schlumberger technology organization. Previously he was president of the Reservoir Characterization Product Group.

Richard Bailey

GL Noble Denton appoints executive VP

Richard Bailey is the new executive vice president for the Asia Pacific region at GL Noble Denton. He has over 30 years of experience in the oil and gas industry and has been based in Singapore for the past five years. He will report to GL Noble Denton president John Wishart.

Wärtsilä, Trojan to develop ballast water treatment

Driven by changing regulations in the marine industry, Wärtsilä Corp and Trojan Technologies have signed an agreement to jointly develop, market and distribute a ballast water treatment product for ships. The product is in pre-production and is expected to enter the market at the end of 2010.

VAM acquires Protools

VAM Drilling has announced the acquisition of Protools, a supplier of BHA products based in Abu Dhabi formerly owned by Hunt Oiltools.

Sperry gets contract to work in China’s Bohai Bay

Halliburton’s Sperry Drilling has been awarded a two-year contract, plus options, with ConocoPhillips China to provide directional-drilling and logging-while-drilling services on the Peng Lai Development in China’s Bohai Bay. Work began immediately.

Walker named Anadarko president, COO

Anadarko Petroleum Corp’s Board of Directors has promoted Al Walker to president and chief operating officer. Jim Hackett will remain as chairman and CEO. Mr Walker has more than 25 years of experience in the energy industry, with a focus on exploration and production. He joined Anadarko in 2005 as senior vice president, finance, and chief financial officer.

Boomerang Tube to build OCTG manufacturing facility

Boomerang Tube announced that it will build a 487,000-sq-ft manufacturing facility in Liberty, Texas, to produce wielded OCTG and line pipe. The facility will begin operations in August 2010 and could employ up to 350 people.

FMC to supply subsea equipment to Total Angola

FMC Technologies has signed an agreement with Total E&P Angola for the manufacture and supply of subsea production equipment, worth approximately $65 million in revenues. The equipment will support Total’s Block 17 development. Deliveries are scheduled to commence in Q1 2011.

Knight names new managers

Chris Rosson has been named business development manager and Pat Clark business manager for Knight Oil Tools.

SPT Group buys Neotec

Norway-based SPT Group has acquired Calgary-based Neotechnology Consultants (Neotec). The combined company will provide software tools for optimization of oil and gas production systems, including steady-state to dynamic simulation of multiphase flow, integrated operations, drilling wells, delivery systems and reservoir optimization.

BJ Services awarded contract for conductor-driving services in India

BJ Services has been awarded a contract to provide conductor-driving services for operations offshore India in the Panna-Mukta and Mid & South Tapti Fields (“PMT Fields”), jointly operated by BG E&P India, ONGC and Reliance Industries. BJ Services personnel will use hydraulic conductor installation hammers with a deliverable energy capacity of 90 kNm to drive the conductors in the PMT Fields.

PRODUCTS

Sysdrill update caters to Chinese, Russian users

Paradigm recently released Sysdrill 2009.1 at the 2010 IADC/SPE Drilling Conference and Exhibition in New Orleans, 2-4 February. This release supplies comprehensive Chinese and Russian translations, as well as integration with Paradigm Epos 4. “Sysdrill 2009.1 effectively eliminates previous language-based usage limitations,” said Robert Innes, director of well planning and drilling.

The Sysdrill 2009.1 update extends the range and accessibility of the suite, which offers well planning, survey management, anti-collision, torque and drag, hydraulics, casing design, cementing and well control in a single application.

Further integration with the Epos system offers users quick and more reliable access to E&P data for collaborative work on large multidisciplinary projects. Epos 4, released in July 2009, is an open data integration platform scalable from a laptop to a full enterprise solution.

IPD introduces one-piece steel piston for Caterpillar engines

IPD has released a one-piece steel piston for Caterpillar 3500 engines. In order to prevent the piston from experiencing extreme thermal loading, the one-piece design limits plate movement and secures the oil gallery retention plate in place. These new pistons will also use patent-pending technology for manufacturing one-piece steel pistons from a high-strength alloy and heat-treated steel casting.

BJ Services’ GEMINI system can detect dents and other damage in pipelines.

Combo tools system gives caliper, metal loss, mapping info

BJ Services has introduced the GEMINI system, a range of combo tools that provides caliper, metal loss and mapping information in a single tool. Unlike conventional combo tools, the new system uses an active speed control with a gas bypass capability to run in high-speed gas pipelines to obtain corrosion and deformation information without restricting gas flow or line speed, a feature common to the VECTRA magnetic flux leakage (MFL) metal loss tools. The tool sensors detects cracks in dents and other mechanical damage, including wrinkles, gouging and metal loss within dents. The tool also sizes and detects dents in the pipeline.

New drilling motor features ultra-slow speed design

Mpact Downhole Motors has introduced a new drilling motor model, Model 775 7822 HTS, featuring the Mpact 114 stator elastomer. The 7 ¾ in. drilling motor is an ultra-slow speed design (.08 revolutions/gal) delivering 15,000-plus ft/lbs of torque at 489-psi differential pressure. With a maximum power rating of 192 hp, the new model has a flow range of 300 to 900 gpm.

Drilling valve gives LCM alternate circulating path

M-I SWACO’s WELL COMMANDER ball-activated drilling valve provides an alternate circulating path for placing lost-circulation material or boosting annular velocities during drilling operations, while bypassing sensitive downhole bottomhole assembly tools. Generally run in the hole, in the closed position, the tool remains inactive until needed. Then the operating ball is dropped and pumped down to the tool. Pressuring up on the ball activates the tool, and the increased pressure unseats the ball. It is expelled into the bypass ball catcher and the ports are locked opened. To close, another ball is dropped, pressure increased and the ports closed as the tool de-activates.

The tool uses the same size operating ball to open and close the ports. A smaller BHA shut-off ball can be dropped to prevent fluid flow or solids deposition at the top of the BHA. Up to seven complete cycles are possible on each trip due to the 14 ball capacity of the bypass catcher.

Unique ball-seat technology allows the same-size ball to open and close the tool, eliminating the risk of dropping the wrong size ball. No complicated ball/dart sequence or potentially problematic pump on/off hydraulic sequencing is required to open and close the tool. Additionally, high circulation rates will not cause the tool to function prematurely.

The tool can assist in removing cuttings beds in high-angle/horizontal wells and can efficiently displace fluids by boosting annular velocities. It also permits easy spotting of coarse LCM during drilling operations.

There is an increasing awareness in the offshore drilling industry that safe and potable water is an important factor for good health onboard the rig. Many offshore platforms use bottled water for human consumption to ensure quality. Yet, bottled water cannot be used for every purpose. What about showering? Contamination by the Legionella bacteria can occur if a person inhales water droplets. The logistics and costs for bottled water are also unfavorable. Implementing a good water safety plan would be less hazardous and more efficient.

Bacteriological outbreaks from water can result in commotion and even panic among the crew. In fact, there are known cases where a Legionella contamination led to a rig shut-down. Additionally, corrosion and other deposits can give color to water, making it undesirable to consume.

A range of water-processing and treatment technologies are available to ensure safe and quality drinking water on rigs. With the right materials and installations to purify and condition the water, combined with a proper water management plan, maintenance and control of the water quality from supply to tap points can be guaranteed.

Steel piping between the tanks and crew accommodations will corrode over time, causing rust water and breeding bacteria. Alternative materials that can be used include stainless steel, copper and plastic.

WATER INTAKE

Potable water on offshore rigs can be obtained by bunkering or desalination of sea water. When bunkering water, attention must be paid to the quality of the water provided by the supplier. Always take water samples and check the water on the basic parameters. Furthermore, all necessary steps to ensure safe and potable water is bunkered must be described in a bunkering procedure. For example, flushing of the bunker hose prior to bunkering should be mentioned in this procedure.

Desalination of sea water is possible by a reverse osmosis system (RO) or by an evaporator. Both techniques will produce fresh water, but not all parameters are within the guidelines for drinking water. Due to the desalination process, the produced water has a low pH and no hardness. The produced water should, therefore, be treated to correct the pH value to prevent corrosion in the distribution system, and to provide a better taste.

This can be done by dosing a mineral solution or by installing a mineralizing filter. In the first option, the minerals are directly added to the water by a dosing pump. The more commonly used technique is a neutralizing or mineralizing filter. In the mineralizing filter, the water flows through a filter bed containing mineral grains, and the minerals dissolve slowly in the water.

STORAGE & DISTRIBUTION

After bunkering or production, the potable water must be stored and distributed to the tap points. The storage and distribution system will affect water quality. First, the capacity and material of the potable water tank is important. If the water tank is too big, the residence time of the water will be too long and its quality can be affected.

From the tanks, the water is pressurized by the hydrophore. This is formed by a system of pumps, hydrophore tanks and pipe work. The most commonly used tank is a galvanized tank with air/water, which is vulnerable to corrosion and sediments. A membrane tank would be better, as would a flow-through tank in order to prevent dead ends.

The main piping between the tanks and the accommodation is often made of black or galvanized steel. Steel piping is economically attractive but will corrode in the course of time. This corrosion causes rust water and is a breeding ground for bacteria. Using stainless steel can prevent this. Other options are copper and plastic.

BACTERIOLOGICAL QUALITY

As mentioned earlier, drinking water can be obtained by bunkering or onboard desalination. Normally, the water meets up to the norms for safe drinking water:

A) When bunkered, the water supply company has to follow strict rules on water quality.

B) When produced on a rig, proper water treatment will determine that quality water is produced.

A reverse osmosis system such as this can desalinize sea water for human consumption onboard offshore rigs.

This ensures that the physical/chemical composition of the water will not be a problem. However, the bacteriological quality of the bunkered or desalinated water is also important.

The bunkered or desalinated water, and the biofilm in the piping system, contains bacteria and is vulnerable to decay. If insufficient disinfection is used, bacteriological growth will occur.

Bottled water has no problems with bacteriological growth and seems safer to use on rigs. But what about other bacteria like Legionella, which are not obtained by consumption but by inhaling aerosols? Consumption of bottled water does not reduce this risk.

In water systems, the Legionella bacteria has been a cause of great concern in recent years, particularly around risk areas such as showers, whirlpools, etc. The drinking water system must be periodically maintained, such as, cleaning the tanks, appliances and pipe work. Disinfection techniques, such as ultraviolet disinfection and the dosing of sodium hypochlorite, are also good preventive measures. UV radiation for disinfection is applied in the drinking water system after the hydrophore unit. With UV, no chemicals are introduced into the system. The disinfection effect is caused by damaging the DNA/RNA of the bacteria so they cannot multiply.

WATER MANAGEMENT

As described, the rig’s drinking water system can be complex, consisting of items such as tanks, piping, filters, etc. A risk assessment of the complete system can determine whether the supply can deliver water that meets health-based targets. Assessment of the drinking water system should aim to determine whether the final quality of water delivered to the consumer will routinely meet established health-based targets.

Good water management, combined with education and communication, are critical to preventing problems, and can help save costs on rigs. It also puts the control of water quality in your own hands.

The 2009 OTC drew more than 2,500 exhibitors and delegates from 38 countries. This year, OTC will be held 3-6 May in Houston.

The Offshore Technology Conference covers state-of-the-art technology for offshore drilling, exploration, production and environmental protection. OTC is the world’s foremost event for the development of offshore resources.

This year’s OTC will take place at Reliant Park, 3-6 May. Last year, OTC hosted 2,532 exhibitors and delegates from 38 countries.

This year’s sessions will focus on the dynamics of salt tectonics; impact of geoscience technology on project economics; offshore drilling; riser technology; subsea processing and power distribution; offshore LNG developments; flow assurance; fiber moorings and more.

Business risks, regulatory issues, expanding the energy spectrum and global reach will also be major themes.

OTC ranks among the largest annual trade shows in the US. The exhibit is a powerful draw and attendees spend an average of eight hours on the exhibit floor. In addition to individual companies exhibiting at OTC, whole countries also sponsor exhibits.

“This is an amazingly high-tech industry that creates technology that can end up in a NASA space vehicle. Incredible technology is required to drill miles under the ocean, which has been compared technologically to putting a man on the moon,” said Susan Cunningham, 2010 OTC chairwoman.

OTC also recognizes innovative technology through its Spotlight on New Technology Program.

2010 Spotlight: new technology award recipients

• Aker Solutions

• Bredero Shaw

• Expro

• FMC Technologies

• MacDermid Offshore

• Rapp Marine

• Reelwell

• Schlumberger

• TSGROUP

• Wanner

• WFS

Shell International E&P and Delft University of Technology (TU Delft) have begun a joint research project called The Recovery Factory that aims to develop solutions and innovative technologies that could increase the amount of oil and gas that can be extracted from subsurface reservoirs. The programme will initially run for six years.

On average for the industry, the recovery factor of reservoirs produced to date is only around 35% of the oil in place, with the remainder trapped in the rock. With current technology, further exploitation is either too difficult or too expensive.

An increase in the efficiency of global hydrocarbon recovery of just 1% would expand conventional oil reserves by 88 billion bbls, enough to replace three years of world production at the current rate (27 billion bbls/yr). Hence, an increase in the recovery factor could have a major impact on global production.

The Recovery Factory programme aims to achieve this by combining new technology with traditional methods. Key components include:

1) The application of measurement and control techniques.

2) The injection of chemicals to make oil more easily producible, or enhanced oil recovery (EOR).

The programme will bring this to the next level by using a fundamental understanding of the subsurface processes to achieve smart EOR, according to Shell and Delft.

Rotary steerable tool makes record run

Baker Hughes has completed a successful record-breaking run using its 4 ¾-in. AutoTrak eXpress rotary steerable system.

The company suggested the system to an operator interested in drilling an extended-reach lateral in the Wildcat Wolfcamp Field of Chaves County, N.M. The combination of the rotary steerable system and the 4 ¾-in. Ultra X-treme LS modular motor provided the capability to stay within the zone while completing the planned 4,000-ft lateral. The bottomhole assembly drilled 4,092 ft (1,247 m), completing the lateral in a single run and saving the operator several days of rig time. It also helped set a Baker Hughes US land run-time record of 193 total hours with the rotary steerable system.

High-temperature expandable system installed in Canadian SAGD well

Enventure Global Technology has installed  its SET high-temperature cased-hole expandable system in a steam-assisted gravity drainage (SAGD) well in Alberta, Canada.

An operator used the 9 ^5/8 in.-by-11 ¾ in., high-temperature system to repair a casing integrity issue in the SAGD well. The 30-ft liner was installed and expanded at a depth of 646 ft and allowed the operator to continue using the well according to its exploration strategy.

The system comes in all currently available SET system sizes. It is rated to withstand temperatures up to 518°F and pressures of 1,000 psi. The in-situ expansion of the steel casing allows for maximized internal diameter (ID) and through-put.

Purification system may ease water challenges in shale frac process

New Mexico-based Altela has helped the Pennsylvania natural gas company BLX place a water purification unit directly at the well head that purifies the frac water to remove salts and other contaminants. This allowed BLX to use the water repeatedly for the same frac process.

The water purification system, 45-ft long and 8-ft wide, continuously converts the frac water into water that is less than 50 mg/l in salt concentration, which is 10 times cleaner than municipal drinking water.

The process is centered around its non-pressurized technology, which can be used in inexpensive plastics rather than corrodible metal, to purify water.

Shell, HP to jointly develop wireless, ultra high-resolution  seismic sensing solution

Shell and HP are collaborating to develop a wireless sensing system to acquire extremely high-resolution seismic data on land. The companies will use their complementary knowledge and experience to produce a solution to sense, collect and store geophysical data. The system will be designed to integrate with Shell’s high-performance computing and seismic-imaging environment and will be able to be deployed safely and more cost-effectively than current systems.

“We think this will represent a leap forward in seismic data quality that will provide Shell with a competitive advantage in exploring difficult oil and gas reservoirs, such as subsalt plays in the Middle East or unconventional gas in North America,” said Gerald Schotman, executive vice president, innovation/research and development, Shell.

The new system will be delivered by HP Enterprise Services and include a recent breakthrough in high-performance sensing technology from HP Labs, the company’s central research arm, and the company’s Imaging and Printing Group. Additionally, the system will use HP ProCurve networking products along with HP storage, computation and software products.

The Yastreb rig drilled the first two of seven extended-reach wells in the Odoptu oil reservoir over 9 km offshore. Odoptu is expected to begin producing oil in 2010.

ExxonMobil completes Sakhalin Project’s first 2 extended-reach wells on Odoptu

ExxonMobil has completed the first two extended-reach wells at the Odoptu field offshore eastern Russia. ExxonMobil subsidiary Exxon Neftegas Ltd (ENL) is operator on behalf of the five-company international Sakhalin-1 Consortium.

The Yastreb rig, located onshore Sakhalin, drilled horizontally under the Sea of Okhotsk to a target area in the Odoptu oil reservoir over 9 km offshore. The extended-reach wells are the first two of seven that will tap the reservoir at Odoptu. The field is anticipated to begin producing oil in the second half of 2010.

“This is yet another milestone in Sakhalin-1 Project3 achievements,” said Neil Duffin, president of ExxonMobil Development Company. “The Sakhalin-1 Project is one of the largest energy investments in Russia and is a testament to international cooperation. The continued application of ExxonMobil’s leading-edge Fast Drill technology has resulted in record performance at Odoptu, paving the way for lower development costs.”

The Sakhalin-1 project includes the phased development of the Chayvo, Odoptu and Arkuntun-Dagi fields, with an estimated total resource of 2.3 billion bbls of oil and 17 trillion cu ft of natural gas. The Chayvo field, which was the initial phase of the Sakhalin-1 project, began production in 2006.

Since startup, the project has produced over 240 million bbls of oil for export to worldwide markets. It also has been a key supplier of nearly 180 billion cu ft of associated natural gas to customers in Khabarovsk Krai in far eastern Russia to heat homes and meet energy needs. The project will continue to help meet future regional natural gas demands.

10-year slickline safety record achieved in Oman

CROSCO Integrated Drilling & Well Services announced that on 17 December 2009, CROSCO joint venture company Midwesco achieved a safety record of 10 years of slickline services in Oman without a lost-time incident (LTI).

Boris Lazar, CROSCO chief executive officer and president, explained, “We were able to commence slickline service in a new market and bring on an increasing number of local personnel without a single LTI incident.

“Our results reward our efforts of implementing various safety initiatives including, STOP cards, rewards and incentives, as well as our efforts to introduce new wireline tools and technologies on an ongoing basis.”

Super-extended lateral completions in Woodford boosts Newfield production

Newfield Exploration has achieved a record gross operated production of 323 MMcfe/d from the company’s Woodford Shale play in the Arkoma Basin of southeastern Oklahoma. Production in early 2010 is expected to continue to benefit from the ongoing completion of about 20 wells drilled in late 2009.

The recent increase in production from the Woodford Shale is being driven by results from recent super-extended lateral (SXL) completions. Recent wells include:

• Madison 1H-15W: The well had a lateral length of 9,983 ft and was completed with 20 fracture stimulation stages. The well had an initial production of 13.5 MMcf/d with about 25% of the frac load recovered.

• Martin 1H-15E: The well had a lateral length of 9,405 ft and was completed with 19 fracture stimulation stages. The well had initial production of 13.5 MMcf/d with about 15% of the frac load recovered.

Newfield has five additional SXLs that have been drilled with completion operations pending.

For 2010, Newfield estimates that its average lateral completion in the Woodford Shale will be 6,000 ft to 7,000 ft. The company expects that these SXLs can be drilled and completed for approximately $7 million to $8 million gross.

Based on drilling to date and 3D seismic data that cover the entirety of Newfield’s Woodford Shale acreage, the company estimates that 25% of its Woodford acreage will be developed with SXL completions.

The company has applied to unitize a large portion of its acreage to facilitate drilling more SXLs. Approval of the unit would increase to approximately 33% of the acreage.

Vantage names new rig Topaz Driller

Vantage Drilling named their new rig, the Topaz Driller, in late February at the PPL Shipyards. A Baker Marine Pacific-class 375 rig, the Topaz Driller will go to work for PVEP Phu Quy Petroleum Operating Company offshore Vietnam. The rig has a maximum operating water depth of 375 ft and a drilling depth of 30,000 ft. This marks Vantage’s fourth jackup rig, others being the Emerald Driller, Sapphire Driller and Aquamarine Driller. Vantage also has three drillships and two semisubmersibles under construction.

Campos Basin exploratory well finishes drilling

Petrobras has completed drilling exploratory well 4-PM-53 in shallow waters (200 m) in the post-salt area of the Campos Basin. The well allows the discovery of a new producer area adjacent to the Pampo Field. The well was drilled 6 km from the PPM-1 (Pampo platform), and it detected the existence of a continuous, 128-m net pay column of 20° API oil in Albian calcareous rocks located in reservoirs of excellent porosity and permeability. The volume of recoverable oil has been estimated at 25 million barrels.

Keppel to build custom Saudi Aramco jackup

Keppel FELS has contracted with Aramco Overseas Company, a subsidiary of Saudi Aramco, to build a customised KFELS Super B Class jackup. Construction will commence in May 2010, and rig delivery is planned for the second half of 2012. The unit will be deployed in the Middle East. “We are pleased to usher in 2010 with a newbuild project for Saudi Aramco. This is an encouraging development, signaling that confidence is gradually returning to the industry,” Wong Kok Seng, executive director of Keppel FELS, said. “In the current market, owners and operators are on the look-out for even more innovative and cost-effective solutions that can be delivered as promised.”

GSF Celtic Sea awarded contract for work offshore Angola

Transocean’s deepwater semisubmersible rig GSF Celtic Sea has been awarded a three-year contract by an undisclosed customer for operations in Angola commencing in 2011.

Estimated contracted revenues related to the contract are approximately $350 million. The GSF Celtic Sea is one of Transocean’s 16 deepwater floaters that can operate in water depths up to 5,750 ft and drill wells up to 25,000 ft deep.

Keppel AMFELS makes Tuxpan jackup rig delivery to Perforadora

Keppel AmFELS delivered its first rig in 2010, Tuxpan, to Mexico’s Perforadora Central SA de CV.

Patricio Alvarez Morphy, president of Perforadora Central, said, “We are confident that this fine rig will achieve a strong operational record when she begins work.”

Tuxpan is the second jackup rig that Keppel AmFELS has built for Perforadora Central.

Keppel AmFELS is currently constructing four other newbuild jackup rigs of the enhanced LeTourneau Super 116E design, for Rowan Companies.

Seadrill’s West Gemini secures 2-year deal

Seadrill has received a letter of award from an international E&P operator for the ultra-deepwater drillship West Gemini under construction. The letter of award represents a two-year contract with an estimated value of approximately $345 million, including mobilization fees.

The West Gemini is expected to be completed early July 2010 and will subsequently relocate from Korea to West Africa to commence operations.

Statoil extends production drilling contracts

Statoil has extended its production drilling and maintenance contracts with Odfjell Drilling for the platforms Snorre A, Snorre B, Visund and Heidrun for two years, until the end of September 2012.

Statoil has also extended contracts with KCA DEUTAG Norge and Seawell for production drilling and maintenance services. KCA DEUTAG Norge was awarded two-year contract extensions for six fixed platforms on the Oseberg field, including Brage and Njord, in the North Sea.

The Seawell contract extensions were for platform drilling services on six fixed platforms on the Gullfaks and Statfjord fields on the Norwegian Continental Shelf. The drilling and maintenance assignment has a firm duration of two years with option for an additional two years. Seawell has been working on the Statfjord A, B and C platforms since 1982 and the Gullfaks A, B and C since 2004.

Separately, Statoil has reported a minor oil discovery in the Tampen area in the northeastern area of the Snorre field of the North Sea. The find has been named Lower Lunde, and its size has been estimated to be between 6 million and 19 million bbls of oil equivalent. The Snorre Unit licensees will consider tying in production from the find to Snorre. The well will now be permanently plugged and abandoned.

ExxonMobil’s Point Thomson well reaches target

ExxonMobil has successfully drilled and cased PTU-15, the first development well for the Point Thomson project on Alaska’s North Slope. In addition, a 60-mile ice road has been completed from Endicott to Point Thomson, which enables the transport of heavy equipment and materials to the site.

ExxonMobil drilled the well to over 16,000-ft MD. The shore-based rig directionally drilled under the Beaufort Sea to the targeted gas reservoir more than 1.5 miles offshore. The rig will be moved to the second development well at Point Thompson (PTU-16). Work continues on front-end engineering and design for the initial production system.

The project, located approximately 60 miles east of Prudhoe Bay, is scheduled to commence production in 2014.

Chevron will develop new Venezuelan energy project

Chevron confirms that a consortium led by its Venezuelan subsidiary has been selected to negotiate its participation in a project composed of three blocks in the Orinoco Oil Belt (Faja) of eastern Venezuela.

Situated in the eastern area of Faja, approximately 40 miles northeast of the city of Puerto Ordaz, the three blocks have a combined area of 215 sq miles.

Chevron currently holds a joint venture interest in PetroPiar, an integrated extra-heavy oil project in Faja.

Anadarko confirms Windjammer’s 1st offshore gas find

Anadarko announced the Windjammer exploration well in the frontier Rovuma Basin offshore Mozambique has reached an intermediate casing point. The Windjammer encountered 480 net ft of natural gas pay in high-quality reservoir sands, with a gross column of more than 1,200 ft. The well has tested one of the seven identified play types in Anadarko’s operated acreage offshore Mozambique.

The Windjammer well was drilled to approximately 14,000 ft about 30 miles off the Mozambique coastline.

Pride dedicates new Deepwater Ascension drillship in South Korea

Pride International has dedicated the first of its four new deepwater drillships under construction by Samsung Heavy Industries in South Korea, the Deep Ocean Ascension. The company is expected to take delivery of the rig in late February 2010, followed by the mobilization of the rig to the US Gulf of Mexico, where it is expected to commence operations in the third quarter of the year under a five-year contract with BP.

To MPD or not to MPD? That is the question posed not by Hamlet, but by George Medley, Signa Engineering, speaking at the 2010 SPE/IADC Managed Pressure Drilling & Underbalanced Operations Conference in Kuala Lumpur in late February. Indeed, the decision can be daunting. Fortunately, the industry is quickly developing a plethora of tools and models to aid the tricky selection process.

In North America, more than a third of all wells are reportedly drilled using some form of managed pressure drilling. Why, ask MPD proponents, can this acceptance not be mirrored worldwide?

MPD, Mr Medley said, is a godsend to the industry, when properly applied. “It’s filled a real gap in the technology that has allowed us to drill wells that were undrilled, and to improve performance on wells that were drillable,” he remarked. Mr Medley and his co-authors, one of whom is Dr Jerome Schubert of Texas A&M University (TAMU), describe a model developed as part of a TAMU research project.

In addition to the Signa/TAMU model, the IADC UBO & MPD Committee is working diligently to create a candidate selection tool that will be freely available online. The tool will be unveiled at IADC World Drilling 2010, 16-17 June in Budapest.

One roadblock to acceptance may be confusion between managed pressure and underbalanced operations. In a joint paper at the MPD/UBO conference, Ken Malloy, Stress Engineering, and Sara Shayegi, Hess Corp, went to great pains to draw the line. Like a celebrated road, the road to MPD or UBO is paved with good intentions. In the case of UBO, the intention is to draw influx from the formation into the wellbore. The same is not true for MPD.

And ours is not – let’s face it – an industry quick to embrace change. The tried and true tenaciously hold its edge over the new and exotic.

Finally, an unhelpful, yet stubborn perception lingers regarding reliability. A survey conducted by the IADC Advanced Rig Technology Committee on perceptions across a broad range of technologies, indicated that MPD is highly regarded for safety and accuracy. The respondents also said, however, that certain key elements, notably reliability and automation, “need development.”

The survey results were published as part of a larger paper, “Advanced Rig Technology: Future Technology Subcommittee Report of Activities and Industry Survey” (IADC/SPE 128953), reprised here.

On the upside, along with accuracy and safety, specific MPD technologies that fared well in the survey included automated choke systems and rotating control heads – in other words, MPD’s bread and butter.

A final item noted by the respondents as “needs improvement,” is cost. But then, we surveyed lots of operators, so maybe this is not too surprising!

Short summaries of the presentations by Mr Medley,  Mr Malloy and Ms Shayegi are available here, as is a video interview with Brian Grayson, Weatherford, chairman of the IADC UBO & MPD Committee.

IADC OTC MICROSITE

OTC is just around the corner, and this year is a special one for IADC. 2010 marks IADC’s 20th year as an endorsing organization for the world’s largest upstream petroleum event. IADC members play a pivotal role in OTC. The annual registrant survey consistently shows that, of the 20 participating societies and associations, IADC ranks in the top 3 when delegates are asked which organization they are affiliated with.

This year, IADC is proud to unveil on 1 April an OTC microsite that will provide OTC updates, interviews with key OTC players and conference previews, both ancillary and directly related to the conference. Tune into DrillingContractor.org/otc beginning 1 April.

IADC president Dr Lee Hunt and operations assistant – Asia operations Chit Hlaing hosted a meeting with active operator and services companies in Yangon, Myanmar, in January. Representatives of the Myanmar Oil & Gas Enterprise (MOGE) were present, including deputy general manager Kyaw Nyan Tun and geologist Tint Sann.

The meeting opened with introductions about IADC’s mission in the global oil and gas drilling industry and its various operations worldwide. This information was intended to raise awareness of IADC’s Asia operations presence and Mr Hlaing’s role in supporting members from the association’s Bangkok office.

The luncheon was followed by a discussion about regional issues and an update of IADC regional activities. IADC was able to enhance its familiarity with current drilling activities and the near-term market outlook.

Among other guests attending were: Amar Moussa, HSE & security manager, TOTAL E&P Myanmar; Tony Cole, logistics manager & advisor, Petronas Carigali Myanmar; Nay Myo Aung, assistant rig manager, Asia Drilling; Jonathan Royds, senior development drilling engineer, Daewoo E&P Myanmar; Sunchai Pongorapin, drilling operation manager and Amornpun Kulpraneet, acting chief, logistics, PTTEP International; and Kyaw Kyaw Hlaing, CEO, SMART Technical Services.

Offshore Competency Training Programme gaining acceptance by North Sea groups

IADC met with representatives of North Sea oil industry associations in Stavanger in January as part of the association’s efforts to further acceptance of its Offshore Competency Training Programme (OCTP).

Dr Brenda Kelly, director of accreditation and certification, and Jens Hoffmark, regional vice president – Europe, met with members of the Norwegian Oil Industry Association (OLF), Oil & Gas UK, the Netherlands Oil & Gas Exploration & Production Association (NOGEPA) and producer groups from Denmark and Germany.

Full acceptance of the OCTP would allow drilling contractors to use the programme’s two key components – Basic Introduction to Offshore Safety and Helicopter Underwater Escape Training. Drilling contractors would then be able to move personnel from location to location without having to repeat that training.

Danish and Dutch representatives confirmed their unofficial acceptance of the OCTP at the meeting.

OLF and Oil & Gas UK also accepted the programme’s content since it mirrors the harmonized course requirements for their countries. Achieving their acceptance will still require implementation of an audit program that mirrors the audit program in place within each country, acceptability of auditors/auditor qualifications, modification of the programme’s plan to accept STCW courses as equivalent training, and ongoing transparency of implementation, including tracking of training certificates. Group members indicated acceptance of IADC’s quality assurance plan, contingent on acceptable qualifications of specific program auditors.

Next, IADC will submit the OCTP documents and quality assurance plan to the work group for review. Group members have agreed to individually assist IADC in seeking national trade union acceptance once the programme documentation is deemed satisfactory.

UBO/MPD Committee to issue MPD tool online

A new online MPD screening tool developed by the IADC Underbalanced Operations & Managed Pressure Drilling Committee will be rolled out at IADC World Drilling 2010, 16-17 June in Budapest, announced committee chairman Brian Grayson, Weatherford International. Mr Grayson made his remarks while opening the second day of the 2010 SPE/IADC MPD & UBO Conference on 25 February in Kuala Lumpur. The candidate selection tool will be made available at www.IADC.org.

IADC group vice president/publisher Mike Killalea conducted an exclusive video interview with Mr Grayson that is available here.

IADC Gin Pole Truck Guidelines released

The IADC Rig Moving Committee issued voluntary Gin Pole Truck Guidelines on 1 March. These guidelines are intended to help improve the safety of rig-moving operations and include information on inspections, operations and manufacture of gin pole trucks. They will be posted on the IADC web page for the Rig Moving Committee.

ART Drilling Control Systems Subcommittee seeks comments

Integrating different pieces of equipment on a rig can be a major hassle, not to mention, integration with downhole equipment. A new survey by the Drilling Control Systems (DCS) Subcommittee of the IADC Advanced Rig Technology (ART) Committee seeks to clarify the type of control system that can best provide surface and downhole integration. The survey was designed under the leadership of DCS Subcommittee vice chairman Terry Loftis, Transocean.

During the 2009 IADC Advanced Rig Technology Conference, 35% of the audience selected “integration with the downhole system” as the aspect of drilling control systems that needed the most improvement.

The survey comprises five questions, including a request for contact information, which will be held confidential by IADC. To take the survey, click here.

IADC and five other oilfield trade groups have written to the Obama Administration’s Ocean Policy Task Force urging extreme caution in pursuing marine spatial planning (MSP) as it may impact OCS oil and natural gas E&P. The trades asked the task force in its recommendations to the White House to pointedly state that any MSP initiative include economic uses of the oceans, including those essential to energy security. As a model for MSP, the group suggested that the MMS OCS Leasing Programme could serve as a good one for multiple-use management.

Any MSP system should be forward-looking, adaptive, comprehensive and efficient. The trades warned that it should also recognize existing legal authorities. Introducing new decision-making apparatuses that override regulatory and statutory authorities currently delegated to specific agencies would result in confusion, lawsuits and policy log-jams.

Expedited OCS development sought

The US Minerals Management Service (MMS) has announced more rigorous “drill ’em or drop ’em” terms for Gulf of Mexico deepwater E&P. In its announcement of the proposed Lease Sale 213 for the Central GOM Planning Area to be held 10 March 2010, the agency revised lease terms for water depths between 400 m and 1,600 m. Between 400 m and 800 m, five-year lease terms are proposed, a change from previous eight-year terms. Between 800 m and 1,600 m, the initial lease term is reduced from 10 years to seven years, with an extension to 10 years upon commencement of an exploratory well. MMS argues that deepwater E&P in the GOM is now well understood and established, therefore no longer needs the longer leases. Also, MMS says technology is in place to map and exploit these areas.

MMS has been under political pressure to force oil companies to develop existing leases. IADC has long advocated that operators unwilling or unable to diligently develop their leases should be required to return them to the leasing pool for re-offer, rather than given general lease extensions.

US approach to ballast water

In a 30 November letter to James Oberstar, chairman of the House Committee on Transportation and Infrastructure, and Frank LoBiondo, ranking member of the Subcommittee on Coast Guard and Maritime Transportation, IADC joined a coalition of 22 organizations urging Congress to pass legislation eliminating the patchwork of regulations of ballast water discharges in the US.

Currently, both the Coast Guard and EPA regulate ballast water discharges under separate legislative mandates, and nearly two dozen states have established their own standards for ballast water and other vessel discharges. The coalition supports the development of strong, bipartisan legislation to solve this untenable situation.