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May/June

Wirelines

Gulf of Mexico lease sale proposed for August Officials with the US Department of Interior announced in early March a proposed offer of 78 million acres for a regionwide lease sale scheduled for August 2019. The sale would include all available unleased areas in federal waters of the Gulf of Mexico. Lease sale 253 will be the fifth offshore sale under the 2017-2022 National Outer Continental Shelf (OCS) Oil and Gas Leasing Program. It will include approximately 14,699 unleased blocks, located from 3 to 231 miles offshore, in the Gulf’s Western, Central and Eastern planning areas in water depths ranging from 9 to more than 11,115 ft. The Gulf of Mexico OCS, covering more than 164 million acres, is estimated ...

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People, Companies & Products

Chevron announces acquisition of Anadarko Chevron has entered into a definitive agreement with Anadarko Petroleum to acquire all outstanding shares of Anadarko. This will strengthen Chevron’s positions in shale, deepwater and natural gas resource basins. Roy Martin, Senior Analyst, Corporate Analysis for Wood Mackenzie, commented: “Chevron now joins the ranks of the UltraMajors – and the big three becomes the big four.”  Once the deal closes, Chevron will be the second-largest producing major, in 2019 terms. Mr Martin added: “ExxonMobil, Chevron, Shell and BP are now in a league of their own. The deal plays to Chevron’s strengths, which are tight oil and LNG. On top of this, it diversifies their growth options, while also giving them more in tight ...

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Drilling & Completion News

Transocean lands drillship contracts from Petrobras Transocean announced that Petrobras has awarded contracts to two of the company’s ultra-deepwater drillships, with work commencing in Brazil in November. The Ocean Corcovado received a 629-day contract, representing an estimated firm contract backlog of $123 million; priced options for 680 days are included. The Ocean Rig Mykonos received a 550-day contract for an $118 million backlog. This contract includes priced options for 815 days. Turan to operate, maintain seven platform rigs for BP Turan Drilling & Engineering Company has been awarded its first contract, which is with BP Exploration.  The contract has a value of approximately $500 million for the firm period or $700 million including all options. It is for the operations ...

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To build better future, industry must do more to collaborate

By Linda Hsieh, Editor & Publisher Humans are creatures of habit. While some people are more open to new ideas than others, at some level we all look at big changes with some trepidation. Will it remove something important from my control? Do I understand what the consequences will be, and who will bear those consequences? Am I competent enough to handle the change? There are myriad reasons why people resist change. And yet, as the saying goes, the only thing that is constant is change. In the drilling industry, massive changes are under way. The deep and prolonged downturn over the past few years brought about significant changes in companies’ spending habits that are likely to sustain for years ...

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Drilling & Completion Tech Digest

Johan Sverdrop record lift completed in three days Equinor announced that it has set a record with a three-day lift of two final platform topsides, a bridge and a flare stack for Johan Sverdrop. It was the heaviest lift ever performed offshore, according to Equinor. “Putting the final building blocks of this gigantic project into place is important to ensure startup of the field as planned in November this year,” said Trond Bokn, Senior VP for Johan Sverdrup. The two final platform topsides were installed using the heavy-lift vessel Pioneering Spirit and its single lift technology. The processing platform lift – nearly 26,000 tons – set a lifting record offshore and was carried out in four hours with a clearance ...

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IADC strengthens next-gen engagement with new student chapter, YP Committee

By Jason McFarland, IADC President In the last issue of DC, I talked in this space about how our industry must commit to the next generation just as it’s committed itself to innovation and safety. As IADC travels throughout the world, the topic of how to engage with, attract and retain the next generation of oil and gas personnel is top of mind for seemingly every segment of our industry. There’s good reason. The US Energy Information Administration is projecting a 28% increase in worldwide energy use by 2040. The next generation will be responsible for building upon today’s technological innovations to ensure that our industry can supply the world’s energy while remaining respectful stewards of the environments in which we ...

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Simulator-based training can help crews better prepare for complex MPD operations

By Linda Hsieh, Editor & Publisher As the drilling industry increasingly deploys managed pressure drilling (MPD) technologies, particularly in the deepwater arena, the potential for simulator-based training to step in and enhance both the safety and efficiency of such operations is also increasing. “When we look at the (knowledge) retention pyramid, the most efficient way for students is hands-on training, where we tie all the theory together with the practical,” Kim Laursen, Head of Well Control Services for Maersk Training, said in a presentation at the 2019 SPE/IADC International Drilling Conference on 7 March in The Hague, The Netherlands. Even when no new technologies like MPD are involved, the use of high-fidelity drilling simulators provide a safe and cost-efficient environment ...

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News Cuttings

IADC holds human performance in well control workshop IADC held a human performance in well control workshop in conjunction with the 2019 SPE/IADC International Drilling Conference in The Hague, The Netherlands, on 4 March. More than 50 human factors, well control and HSE professionals attended the event. It featured sessions on the foundation principles of human performance, the importance of cross-company collaboration, and applications and tools available to the industry. Presentations were made by Shell, BP, IADC, Chevron, KCA Deutag, Aramco Overseas, Maersk Drilling and Baker Hughes. In the interactive exercise that concluded the workshop, participants were asked to list and rank their ideas for improving human performance at individual, company and industry levels. Almost half of the workshop attendees ...

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Cost-per-barrel focus propels frac advances

Adoption of dissolvable plugs grows as operators seek to eliminate drill-outs; switch to lower-cost in-basin sand also moves into high gear By Linda Hsieh, Editor & Publisher As E&P companies continue to prioritize and invest in unconventional resources, service companies are following suit, pursuing rapid development and evolution of completion technologies to meet operators’ increasing demands. In particular, longer laterals and more complex well designs are driving the adoption of dissolvable technologies, which continue to mature as companies learn how and where they should be used to achieve the best results. Frac plugs that help to improve fluid efficiency when they’re pumped downhole are also leading to reductions in water usage, an important challenge in the Eagle Ford and Permian ...

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