Denkowski promoted to VP of accreditation programs

IADC’s Mark Denkowski has been promoted to vice president of accreditation and certification programs. He joined IADC in April 2011 as managing director.

Mr Denkowski will remain in charge of all accreditation and certification activities. IADC’s accreditation and certification programs are ISO 9001-certified and oversee accreditation through WellCAP, Rig Pass, Competency Assurance and Drilling Industry Training. The accreditation department is also involved in the STEPS Network and OSHA initiatives.

“Mark brings a wealth of practical drilling industry experience to IADC,” Dr Lee Hunt, president of IADC, said. “His extensive background in the drilling industry training will serve him well in leading our skilled accreditation team to provide ever-better services and programs for our members.”

Mr Denkowski has more than 30 years of industry experience and has worked for Smedvig Asia, Santa Fe, GlobalSantaFe, Transocean and Frontier Drilling. He has a BS degree in earth and mineral science from Pennsylvania State University.

Regional VP Fischer to retire after 20 years with association

After two decades of service with the association, IADC regional vice president – Middle East and Africa Ken Fischer will retire on 3 February, his 20th anniversary.

Over his career with IADC, Mr Fischer has supported the association’s global efforts in a wide range of areas. He has served in the departments of membership, publications and operations and has worked extensively with members in the drilling and well services division. Throughout his career, Mr Fischer has served as official liaison for the IADC Contracts Committee; he is also a founder of the IADC Underbalanced Operations Committee, the forerunner of today’s UBO & MPD Committee.

He also has represented IADC around the world, in regions such as the Middle East, North Sea, Asia and Africa. In recent years, he has led IADC’s efforts to establish the Middle East Operations Forum.

IADC president Dr Lee Hunt recognized Mr Fischer’s dedicated service with a plaque at the 2011 Annual General Meeting in Austin, Texas, in November. “Ken has done an admirable job of building IADC’s membership, reputation and effectiveness,” Dr Hunt said.

In accepting his service award, Mr Fischer thanked all members for their friendship and collaboration over the years.

AOF highlights regulatory, legal updates

IADC held its second 2011 Asia Operations Forum (AOF) and luncheon meeting on 22 November in Kuala Lumpur, Malaysia. The meeting featured presentations on regulatory changes and international legal developments.

Denys Hickey with Singaporean law firm Ince & Co discussed key provisions of the US FCPA and UK Bribery Act, the increasing regulatory burden they’re posing and the impact of new competition laws in the region, as well as piracy.

Derek Morrow, IADC industry affairs consultant, speaking on behalf of IADC VP – offshore technical & regulatory affairs Alan Spackman, highlighted pressing industry concerns on transboundary oil pollution liability. He provided updates and developments and summarized the proceedings to date and the current status of IADC involvement with the IMO on this matter.

IADC plans to hold its next AOF on 24 April, ahead of the IADC Drilling HSE Asia Pacific 2012 Conference & Exhibition, 25-26 April, in Singapore.

Revised, reorganized WellCAP handbook available online

The WellCAP Handbook for Accreditation, Form WCT-01, has been updated and revised, with all WellCAP accreditation criteria consolidated into one document. Other changes made to this version of the handbook include:

• All program requirements previously published as bulletins, from Bulletin 04-02 to Bulletin 11-04, are now included in WCT-01;

• The WCT-01 document has been reorganized to more clearly delineate accreditation criteria, accreditation processes and accredited training providers’ responsibilities post-accreditation; and

• Appendices have been added to list all WellCAP forms frequently used by accredited training providers and to provide an index of frequently asked questions with referenced page numbers.

WellCAP-accredited training providers are encouraged to obtain and review a copy of the revised handbook and review its new content. The document is available from IADC Accreditation and Certification staff or through IADC’s website.

North Sea Chapter donates £5,000 to Scottish charity

The IADC North Sea Chapter (NSC) has made a £5,000 donation to the ARCHIE Foundation, the official charity of the Royal Aberdeen Children’s Hospital and community-based Child Health across the North of Scotland.

NSC chairman Jon Richards of Diamond Offshore and vice chairman Darren Sutherland of Prospector Offshore presented the check to David Cunningham, ARCHIE chief executive.

Mr Richards said, “We are very pleased to make this donation to help the ARCHIE Foundation continue its excellent work in providing additional services and resources for children receiving medical care.”

The NSC has donated more than £70,000 to local charities in the last five years.

Dan Rabun, 2012 IADC Chairman

The last two years have been a challenging period for our industry. Eleven lives were lost and 16 others were seriously injured on 20 April 2010 as a result of the Macondo incident in the US Gulf of Mexico. We also lost a significant amount of trust and confidence with the public, regulators and many others.

On 26 January 2010, just a few months before the Macondo incident, I had the privilege of delivering the keynote address at the IADC Health, Safety, Environment & Training (HSE&T) Conference. At the time of the conference, we were experiencing extraordinary volatility in our sector, and I cautioned the audience not to let factors outside our control, such as fluctuating commodity prices and the global recession, distract us from our most important mission – safety, health and the environment.

The theme of the annual HSE&T conference was “Preparing for Tomorrow,” and here is some of what I said:

We need to concentrate on producing energy in the safest, most predictable and environmentally conscious way possible. Our jobs are becoming progressively more complex, and therefore, risk levels are rising. We need to remain vigilant when it comes to safety.

Our industry has evolved from drilling on land to shallow water, mid-water and now ultra-deepwater up to 10,000 ft. We are making massive investments in state-of-the-art rigs that are much more complicated, which, in turn, requires more highly trained and specialized personnel.

Some of these rigs are operating farther from shore, with more people on board and often in harsh weather conditions. We need to make sure that we stay one step ahead in terms of implementing safety measures and processes to prevent injuries to personnel, property and the environment. This requires collaboration between lots of different parties.

If demand for our services is increasing and what we do is becoming more complex with higher risks, we need to dedicate more time and resources to training, which is what this conference is all about.

Safety, first and foremost, is a core value. It is simply the right thing to do. Safety is also good business because I firmly believe that safe rigs are more efficient, more productive and more reliable.

Safety-conscious crews also protect the reputation of our industry. Demand for our services will be determined based on the world’s perception of the sustainability of oil and gas energy sources, and governments around the world will formulate their energy policies, in part, on their perception of our industry’s ability to deliver safe, reliable and environmentally friendly energy.

It’s up to each and every one of us to protect our industry’s reputation through our collective actions.

Unfortunately, what we all have worked very hard to prevent, happened. As an industry, we need to take ownership for the lessons learned from the Macondo incident. Chief among these lessons is the need to increase the focus on process safety and ensuring collaboration between all players involved.

At the same time, we should not lose sight of the fact that thousands of wells have been drilled successfully around the world using best oilfield practices developed by our industry over decades.

Based on information coming from the various investigative reports, I believe that if best oilfield practices had been followed, the Macondo incident never would have happened. The key, therefore, is to ensure that we redouble our focus on carefully following best oilfield practices, without exception.

As chairman of our industry group, I am proud of the efforts made by industry and regulators in the 20 months since that terrible day in April 2010. It is a testament to what can be achieved when operators, contractors and regulators work as a team with a single-minded goal to prevent reoccurrence. We have already seen significant improvements this past year, namely:

• Updates to the IADC HSE Guidelines for MODUs;

• The release of the 2nd edition of API RP65 part 2 – isolating potential flow zones during well construction;

• Improvements in well containment technologies;

• The establishment of the Center for Offshore Safety; and

• SEMS rule in the Gulf of Mexico and the release of the SEMS Toolkit, to name a few.

However, 2012 will be a pivotal year, with the release in Q1 of the final report from the Joint Industry Task Force recommendations to improve offshore operating procedures and equipment. This report will culminate in the release of:

• API/IADC Bulletin 97 Well Construction Interface Document;

• API RP 96 Deepwater Well Design and Construction, and

• A new revision of API RP/Standard 53 – Recommended Practices for Blowout Prevention Equipment Systems for Drilling Wells.

I have witnessed personally the sincere commitment of our industry leaders to raise safety standards even further, and I truly believe that we are now a stronger industry. We are complying with more stringent regulatory requirements, permits are being issued and rigs are back to work in most cases.

Our biggest challenge today is recruiting, retaining and training a sufficient number of competent crew members. Customer demand has increased, and utilization is rising. In addition, more than 129 rigs are under construction that will need to be crewed with thousands of new workers as they are delivered over the next few years. We need to ensure that we maintain high standards of formal training and competency when we fill these positions.

IADC has a comprehensive Competence Assurance Program (CAP) that gives us a formal framework to track the competency of our work forces, and we should implement IADC’s CAP, or similar programs, wherever possible.

In closing, I ask you to reinforce your visible passion for safety. It is the foundation upon which our industry is built. I commit to you that I will dedicate my tenure as chairman of IADC to raise the level of safety in our industry even further. I ask you to take the same challenge as we embark on 2012.

The culmination of eight years of litigation in UK courts, the UK Supreme Court has upheld the previous rulings of the Court of Session and Employment Appeal Tribunal that time off work enjoyed by UK offshore oil and gas workers more than meets the minimum legal amount of annual leave that employers must provide their employees.

Typical rotas worked offshore allow for more than 26 weeks onshore, away from work, more than meeting the requirement of the Working Time Directive (WTD) to provide 5.6 weeks of annual leave.

This latest Supreme Court decision is final and can’t be appealed to the European Court of Justice.

Arctic spill task force reviews agreement draft

IADC executive VP – government affairs Brian Petty participated in a meeting of the Arctic Council Oil Spill Response Task Force in St Petersburg, Russia, on 13-14 December. IADC’s expertise and attendance at the meetings were requested by the US Coast Guard.

A first draft of an agreement among the eight Arctic states, prepared by Norway, was reviewed, and participants identified additional issues/topics that need to be included.

It was the consensus that the instrument will be binding.

The group also agreed that only oil spills will be included, excluding hazardous and noxious substances. All sources of spill are included: shipping, oil and gas E&P, cargo ships, terminals, tourism ships, pipelines, etc. Military ships and installation oil spills are excluded.

Comments will be submitted later this month to the US co-chair, who will draft the next version of the instrument. Draft 2 will be sent to all eight states by 17 February, and the next meeting will be in Anchorage, Alaska, in mid-March.

The goal is to deliver the final instrument for signature at the May 2013 meeting of the Arctic Council Ministers.

IADC visits Washington to discuss FRC rule

IADC regional VP – North America and lead staff HSE issues Joe Hurt visited 23 congressional offices in Washington, DC, on 16-17 November to discuss the issue of fire-resistant clothing (FRC).

Mr Hurt highlighted the process OSHA used in changing the personal protective equipment rule, particularly in regard to issuing its FRC letter of instruction to area directors. Other OSHA, EPA and DOT issues where proper procedures were not followed were discussed.

The visits were part of a joint effort with the Association of Energy Service Companies (AESC). All congressional staff representatives agreed with the IADC and AESC position and expressed support for sending a letter to OSHA requesting that the agency not attempt to change regulations through interpretations and directives.

2012 IADC Chairman Dan Rabun

If it isn’t broke, don’t fix it. So the saying goes, but Ensco chairman, president and CEO Dan Rabun challenges the notion of maintaining the status quo. Doing something one way simply because “it’s the way we’ve always done it” doesn’t necessarily produce the best results.

So when Mr Rabun joined Ensco in March 2006 as president and a director after a 20-year career as a mergers & acquisitions lawyer, he asked a number of questions about the way things were being done. Is this truly the best approach? How can we think outside the box to improve performance? “I challenged people to consider new approaches that might lead to even better results,” said Mr Rabun, who was appointed Ensco’s CEO and chairman of the Board in 2007. In this respect, his relative lack of knowledge about the contract drilling industry at the time became an asset.

One example of how Ensco took a major step forward, particularly in safety, was a rebranding campaign the company launched soon after Mr Rabun came on board. “We had made great safety improvements, but we had reached a plateau in our performance and were having difficulty seeing a path forward to even better performance. We were saying all the right things, conducting the correct training and everybody had the right intentions, but we were finding it difficult to get to the next level,” he recalled.

He and other Ensco executives came up with an idea for rebranding the company that included the seemingly unimportant task of changing the company uniforms from gray to orange – for the simple reason that orange uniforms make people easier to see on a rig instead of blending them into the background. This change was made over protestations that “our employees love their Ensco gray” and that a rebranding effort would alienate long-time employees.

When the rebranding campaign, complete with new uniforms, signage, vision and values cards, and a corporate video emphasizing the importance of safety and operational excellence was rolled out rig by rig, from New Zealand to the Gulf of Mexico, over the course of one day, “it was obvious that this was one of the best decisions we could make to energize our crews and improve our performance,” Mr Rabun said. “Since that date, our safety performance has improved measurably.”

Another goal of the rebranding was to revitalize the look and feel of the company – making it more attractive to the next generation of workers. “A rebranding may sound trivial, but the retention of our employees has improved as well, and employees now view Ensco as a more progressive company and more attractive to younger employees.”

Globalization

Asking how things may be done “even better” may also help to address the industry’s growing problem with personnel shortages, Mr Rabun believes. “The contract drilling business historically had been a US-centric business, but it is no longer,” he said. A couple of years ago, Ensco moved its headquarters from Dallas to London – a more central location for its global operations. As Mr Rabun describes, the move enhanced Ensco’s image as a truly international company that attracts workers from multiple geographies. “We operate on six continents, and the diversity of our work force is a major competitive advantage.”

IADC

As Mr Rabun begins his term as 2012 chairman of IADC, one of his main priorities is to help the association further its globalization efforts. Although IADC already has a presence in fast-growing markets such as Asia, Brazil, West Africa and the Middle East, he believes more can be done. “Over the next 25 years, these will be growth markets in this business, and IADC needs to be there taking a leadership role on issues like human resource management.”

For example, even though unemployment is high in many parts of the world, drillers are facing increasing challenges to recruit a sufficient number of competent new-hires to crew a growing number of rigs worldwide. By further globalizing itself, IADC will be able to enhance its role in helping the industry address these personnel challenges. “If we can get these chapters in the Far East, Brazil and Africa more actively involved and make them a vibrant part of IADC, we can get the global drilling industry focused on this problem and identify new ways to attract more people to our business,” Mr Rabun urged.

Friendly competitive environment

Whether it’s because of the spirit of collaboration fostered by groups such as IADC or simply because there’s good people in this business, Mr Rabun says he continues to be impressed with the cooperation among drilling contractors. “While we all compete for new business and for talent around the world, it’s an extremely friendly competition,” he said, noting that it’s not uncommon for a contractor to come to the rescue of another if, for example, a piece of long-lead time equipment goes down.

Whether it’s drilling technologies, safety or regulations, in a way we’re all in this together. “We have the same problems, and we can’t address them all by ourselves.” Mr Rabun hopes that, in the coming years, IADC will continue to be the glue for collaboration among contractors. “IADC plays a key role in providing a forum for the whole industry,” he said.

Ensco continues to invest in the more technologically capable rigs that operators are demanding, such as the Ensco 8503. The semi is operating in the Gulf of Mexico for Cobalt International Energy.

Industry future

Looking to the future, Mr Rabun is unfazed by the industry’s historical cyclicality and believes it remains a fundamentally strong business. “I look at the macro picture. As long as the global economy is growing and the BRIC countries are growing, demand for hydrocarbons will continue to increase. Even the recent global financial crisis – although painful – didn’t slow the oil and gas industry down for long.

“I don’t think we’re going to find ourselves in one of those mid-’80s 20-year slumps. I just don’t see that as a fundamental risk for our business. You will continue to see speed bumps, but they’re not going to fundamentally change the business.”

Ensco, like much of the industry, has made significant investments in more technologically advanced deepwater rigs and jackups and has sold less capable rigs. Mr Rabun notes the company has doubled its fleet size since he joined. The growth of the fleet will continue with two drillships, two semisubmersibles and three jackups still under construction. The company also has significantly expanded the scope of its global footprint, with rigs now in all major markets around the world.

“We’re going exactly where our customers are going,” Mr Rabun said. “If you ask me where I want the business to go, it’s really not my decision. It’s our customers’ decisions, and our customers are going to more remote locations in very deep waters. In shallower water, they’re drilling to much deeper well depths.”

“I’m very proud of what this industry does. Our people regularly work far from their families in remote locations. There is a great deal of personal sacrifice in this business. We perform an extraordinarily valuable service providing energy for the world.”

Mr Rabun was a partner at the international law firm of Baker & McKenzie for 20 years before joining Ensco in 2006. He is a certified public accountant and holds a BBA in accounting from the University of Houston and a Juris Doctorate degree from Southern Methodist University.

He lives with his wife of 33 years, Roxanne, in central London, where they enjoy walking their two dogs and riding their two horses. Their daughter, Christina, lives in Scottsdale, Ariz.

Dan Rabun, Chairman

Daniel W. Rabun is chairman of the Board, president and chief executive officer of Ensco. He joined the company in March 2006 as president and director. He was appointed chief executive officer and chairman of Ensco’s Board of Directors in 2007. Before joining Ensco, Mr Rabun was a partner at the international law firm of Baker & McKenzie LLP, where he practiced law for 20 years. He is a certified public accountant and holds a BBA in accounting from the University of Houston and a JD degree from Southern Methodist University.

David Williams, Vice Chairman
Noble Drilling

David Williams was named chairman, president and CEO of Noble in 2008. He served as senior vice president – business development of Noble Drilling Services from September 2006 to January 2007, as senior vice president – operations of Noble Drilling Services from January to April 2007, and as senior vice president and chief operating officer of Noble from April 2007 to January 2008. Prior to September 2006, Mr Williams served for more than five years as executive vice president of Diamond Offshore Drilling.

Mr Williams holds a bachelor of business administration degree in marketing from Texas A&M University. 

Scott Daniels, Secretary-Treasurer
Atwood Oceanics

Scott Daniels has more than 15 years of experience in the financial, consulting and oil and gas industries. He currently serves as the director of financial reporting at Atwood Oceanics and has held this position since December 2010. He joined Atwood Oceanics in 2007 and worked in successive roles as the head of the internal audit department, senior manager – financial services and assistant controller. Prior to joining Atwood, he spent more than 10 years at PricewaterhouseCoopers, working primarily in the oil and gas and energy industries.

He holds a BBA in accounting from Texas State University and has been a certified public accountant since 1997. 

Thomas Burke, Vice President – Offshore Division
Rowan Companies 

As the recently appointed COO at Rowan Companies, Thomas Burke is responsible for all of the company’s drilling operations, as well as sales and marketing. Mr Burke joined Rowan in December 2009 as president and CEO of LeTourneau, Rowan’s recently divested manufacturing subsidiary. Prior to that, he held senior positions at several oilfield companies, including Complete Production Services and Schlumberger.

Mr Burke received a PhD in engineering from the University of Oxford, a BA of engineering with honors from the Heriot-Watt University in Scotland, and an MBA from Harvard Business School. Mr Burke attended Sandhurst British Army military academy, where he served as parachute regiment platoon commander and special forces troop commander.

Ronnie Witherspoon, Vice President – Land Division
Superior Well Services 

Ronnie Witherspoon is president of Superior Well Services, a Nabors company. He began his career with Schlumberger, providing logging services to clients in the Gulf of Mexico. He joined Nabors following graduate school and has held various positions within the company, including project manager, manager of contracts and marketing, district manager of Arkoma, district manager of East Texas and VP of the Northern Division. Most recently he was senior vice president of marketing and business development for Nabors Drilling USA.

Mr Witherspoon holds an MBA in finance and MSMIS from the University of Oklahoma and has taken advance graduate finance courses at New York University. He also serves as a board member for The Center of Hearing and Speech in Houston.

David Reid, Vice President – Drilling & Well Services Division
National Oilwell Varco

David Reid is the senior vice president of global accounts and chief sales officer at National Oilwell Varco (NOV) and is responsible for leading the NOV sales and marketing organizations toward strategic growth. He is charged with developing the market and strategic engine of NOV to offer their customers a most valued position in their relative markets.

Mr Reid joined Varco International 20 years ago. He began in the service end of the business and has lived in Scotland, California and Houston while working worldwide in a number of roles covering business development, product development, leadership and management.

He has provided key contributions to the development of today’s top drives, pipe-handling, iron roughnecks, blowout preventers, integrated drilling systems and automation. He has led the introduction of modern drilling system design in offshore drilling rigs and has had an active role in the industry as a voice in addressing change in design, as well as business models.

Mr Reid serves on the NOV and Schlumberger IntelliServ Joint Venture Board. He also serves as the chairman of the IADC Advanced Rig Technology Committee and is a founding member of the SPE Drilling Systems Automation Technical Section.  

Dr Lee Hunt, IADC President

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

Brian Petty, IADC Executive Vice President, Government Affairs 

Brian Petty is IADC’s executive vice president for government affairs, based in Washington, DC, where he directs the drilling and oilfield service industry’s global government affairs program. He formerly served as the State of Texas Energy Counsel in Washington and was an officer with the international investment banking firm of Warburg Paribas Becker, heading its Houston office. This followed his association with the law firm of Mudge Rose Guthrie & Alexander in New York.

Mr Petty earned his BA degree at Spring Hill College, his MA at the University of Virginia and his JD at Georgetown University. He serves as chairman of the federal Industry Trade Advisory Committee on Automotive Equipment and Capital Goods (ITAC 2), which counsels the US Trade Representative and the US Secretary of Commerce on international trade issues. He also serves as chairman of the Investment Working Group, designated to advise them on international investment policy. In addition, he serves as IADC’s representative on the EU Committee of the London-based International Association of Oil and Gas Producers.

He also co-chairs the Energy Services Coalition, made up of 60 companies and trade associations seeking to increase international trade in the hydrocarbon, electric power and renewable energy sectors. 

Tom Terrell, IADC Senior Vice President – business development

Thomas T. Terrell is IADC senior vice president – business development. He has 33 years of experience in publishing, marketing and business with oil companies and service companies. He has been in charge of petroleum group operations for a major petroleum industry publishing company. Mr Terrell has extensive experience in strategic planning, sales management, marketing and product development. His responsibilities at IADC included leadership of a diverse global sales, editorial, administrative and financial staff.

Mr Terrell holds a BBA from the University of Houston.

Mike Killalea, IADC group Vice President/publisher

Mike Killalea is IADC group vice president/publisher, with responsibility for corporate communications, including Drilling Contractor, its website www
.DrillingContractor.org, newsletter eNews from DrillingContractor.org, and the Annual IADC Membership Directory. He also provides staff support for the IADC Advanced Rig Technology and Well Servicing committees.

Mr Killalea’s background in petroleum engineering is complemented by several years of experience in technical and business journalism. He graduated with high honors from the University of California at Davis with a BS in chemical engineering.

Steve Kropla, IADC group Vice President – Operations & Accreditation

Steve Kropla is group vice president – operations and accreditation. He manages the association’s offshore affairs, land drilling, HSE, and accreditation and certification functions, as well as regional operations in North America, Europe, the Middle East and Asia. He is also responsible for overall management of IADC’s technical committees.

Mr Kropla joined IADC in 1992 after more than 10 years in the drilling industry in Alaska and the lower 48 US states. His duties included health and safety, training, and responsibility for a broad range of human resources issues.

He holds a BS degree in journalism from Southern Illinois University and an MS in human resources management and development from Chapman University in Orange, Calif. Mr Kropla is a Certified Senior Professional in Human Resources.

Finding new personnel and advancing technology to improve safety continue to be core themes in the drilling industry. While we can’t predict how 2012 will turn out, we can begin to plan for what’s in store by asking and discussing the right questions.

The 2012 IADC/SPE Drilling Conference and Exhibition, 6-8 March in San Diego, Calif., will bring together leading industry thinkers, engineers and executives to address the future and provide insight. The program includes plenary sessions that highlight the critical issues of the day.

On 6 March, Frank Springett, National Oilwell Varco, will moderate “Plenary Session I: Thriving in Change” that explores the question: Are we and can we adapt and thrive in the ever-changing world of 2012?

The panel includes Martin Vos from Shell DW Wells, Chad Deaton from Baker Hughes, Kevin Neveu from Precision Drilling and David Payne from Chevron.

On 7 March, moderator Kelli Harrington, Chevron, will lead the discussion, “Plenary Session II: Sustainability Evolution of an Industry,” which asks: Do we have the right people assigned for the task, do we communicate and execute the right processes to achieve the desired results, and do we have the right people aligned within the task, executing the right process while managing growth?

The panelists will be Lori von Heyking from Halliburton, Brian “Bru” Brurud from Check 6 and Richard Roper from Ensco.

Get up-to-date information on the 2012 IADC/SPE Drilling Conference and Exhibition.

IADC/SPE 151456

PDC Cutter and Bit Development for Challenging Conglomerate Drilling in the Luno Field Offshore Norway, S. Hellvik, E. Hoel, Lundin Norway; R. Nygaard, Missouri University of Science and Technology; M. Andersen, M. Francis, National Oilwell Varco

The Luno discovery in the Southern North Sea has created unique drilling challenges. The reservoir planned with horizontal producers and inclined water injectors consists of both sandstones and conglomerates with varying sizes and distribution of granite clasts.

After the field tests were conducted, it was decided to initiate a polycrystalline diamond compact (PDC) development project to develop a PDC bit with cutters that could withstand the challenging drilling of the conglomerate for the field development phase. From the various cutter performances observed during the field test, further laboratory and field testing was conducted. The cutters showed preliminary performance results of three to four times the initial durability potential.

IADC/SPE 151789

Solving Deep 22-in. Carbonate Drilling Challenges in Northern Kuwait, A. Al Saleh, A. Shehab, M. Al Khaldy, Kuwait Oil; G. Portwood, O. Ghoneim, H. Maliekkal, Schlumberger

The operator must drill a deep, vertical 22-in. hole section in a high-pressure, high-temperature environment to efficiently tap Jurassic reserves in the North Kuwait gas fields. Historically, the section has been drilled with polycrystalline diamond compact and carbide insert (TCI) bits. Neither could consistently complete the hole section in one run. To solve this problem, a forensic investigation of TCI bearing, carbide materials and insert shapes was conducted. The study resulted in new impact-resistant carbide grades and unique insert geometries tailored for Middle East carbonate/sandstone drilling.

IADC/SPE 151569

Innovative PDC Cutter Technology Leads to Step-Out Performance Improvements in Diverse Applications in Shale Plays, D.E. Scott, M.J. Meiners, M.R. Isbell, Baker Hughes

This paper will highlight the latest innovative polycrystalline diamond compact cutters, which have led to improved consistency in diverse US land applications, including shale plays and traditional applications, when combined with the latest in bit design, drilling systems and application techniques. Case studies from multiple fields will be shown with more than 35% increase in rate of penetration, more than 50% improvement in footage, improvements in reliability and a significantly improved dull condition, which gave the operator more confidence in making the target intervals.

IADC/SPE 150030

New HT/HP Technology for Geothermal Application Significantly Increases On-Bottom Drilling Hours, S. Orazzini, ENEL Italy; R.S. Kasirin, G. Ferrari, A. Bertini, I. Bizzocchi, R.J. Ford, Q. Li, J. Zhang, Schlumberger

Standard geothermal roller-cone (RC) bits and components, including grease and elastomer seals, are adequate for temperatures only up to 300°F. At higher temperatures, the bits’ internal components and lubrication system can degrade, leading to bearing failure and limiting on-bottom drilling hours.

To solve the problem, a series of tests were conducted with temperature-resistant elastomers and grease compounds in a controlled laboratory environment. The experiments resulted in a new line of RC bits equipped with an innovative bearing system that includes new composite elastomer seals with Kevlar fabric and a high-temperature (HT) grease formula. The new technology platform has increased seal life, lubricity and load capacity at elevated temperatures in HT and high-pressure applications.

TECHNICAL SESSION 2: DRILLING PROCESS AND TECHNOLOGY

IADC/SPE 150931

Multiple Criteria Casing Seat Selection Method, B.S. Aadnoy, E.Kaarstad, M. Belayneh, University of Stavanger

This paper presents a new integrated method for selection of casing seat locations that includes the fundamental gas filled casing criterion, the kick margin, the riser margin, the minimum mud weight to drill the next section and the assessment of the weak point in the well. The objective is to avoid failures below the wellhead and that the casing shoe represents the weak point in the well.

IADC/SPE 150942

An Early Warning System for Identifying Drilling Problems: An Example from a Problematic Drill-Out Cement Operation in the North Sea, E. Cayeux, B. Daireaux, E.W. Dvergsnes, International Research Institute of Stavanger; G. Saelevik, M. Zidan, Statoil

We describe the validation of a software solution that automatically detects changes in downhole drilling conditions. Based on early warnings provided by the system, drilling teams can take preemptive action when conditions start to deteriorate. The principle of the system is to compare results from calibrated physical models of the well with surface and downhole measurements.

IADC/SPE 151381

Dynamic Modeling of Gas Distribution in the Wellbore During Kick Situations, H.F. Spoerker, OMV Exploration & Production; C. Gruber, W. Brandstaetter, University of Leoben

This paper presents a computational fluid dynamics simulation of the distribution of influx gas in the drilling fluid during kick situations. Focus is put on the bottomhole inlet region of a vertical well with the aim of obtaining a highly resolved phase distribution. An interfacial tracking method is used to simulate the unsteady motion of incompressible drilling fluid and compressible gas, taking into account turbulence, as well as non-Newtonian rheology. This method describes both phases with a single set of equations and solves an equation to calculate the local volume fraction of the phases. Hence, no prior assumptions need to be made regarding flow patterns. The result of these simulations will subsequently be used to model the chemical reaction kinetics of the buffering process between H₂S influxes and high pH drilling fluid environments.

IADC/SPE 151389

Drilling Performance is a Function of Power at the Bit and Drilling Efficiency, R.C. Pessier, S. Wallace, H. Oueslati, Baker Hughes

This paper will show how the power at the bit and drilling efficiency vary as a function of drill string and bottomhole assembly configuration, bit selection and drilling parameters. Field examples will illustrate the magnitude of parasitic losses caused by well geometry and the downhole environment. In many cases, it is striking how little power is left for the drill bit, which in the end dictates the potential rate of penetration and thus the cost per foot and economics of the drilling process.

IADC/SPE 150973: Industry research indicated that an automated drilling system needs to be the same on every rig, have an open architecture downhole and on surface, be designed to be economically viable in the unconventional market and so the rig can be run with fewer personnel, and be customer-configurable.

TECHNICAL SESSION 3: RIG AUTOMATION AND TECHNOLOGY

IADC/SPE 151193

Near Field Developments with an Upgraded Brown-Field Platform Rig: Sharing the Learning from a Three-Well Extended-Reach Drilling Program, M. Mota, G.W. King, W.D. O’Donnell, ExxonMobil; K. Hewit, KCA DEUTAG; P.A. Dumont, Shell

The paper will summarize the upgrade concept selection, concept definition and modifications for a two-stage upgrade of a 35-year-old platform rig on a production platform. This individual extended the drilling radius from 15,000 ft to 25,000 ft, increasing the well control system rating from 5,000 to 10,000 psi. This combination enabled the development of new fields that could not support subsea infrastructure.

IADC/SPE 150973

Building an Automated Drilling System Where the Surface Machines are Controlled by Downhole and Surface Data to Optimize the Well Construction Process, T. Pink, A. Bruce, H. Kverneland, B. Applewhite, National Oilwell Varco

After substantial industry research, it was decided that an automated drilling system needed to satisfy several criteria while improving operational safety and drilling a faster, better well: be the same on every rig, have an open architecture downhole and on surface, designed to be economically viable in the unconventional market, designed so the rig can be run with fewer personnel, and be customer-configurable. The significance of the project to build this automated drilling system could be vast.

IADC/SPE 151412

Data Aggregation and Drilling Automation: Connecting the Interoperability Bridge between Acquisition, Monitoring, Evaluation and Control, A.G. Sadlier, M.L. Laing, J.A. Shields, Baker Hughes

In this paper, we review several technologies in use through the drilling industry – WITS, WITSML, OPC and PROFIBUS – and present case studies about the current roles these technologies play and the problems they solve. The authors analyze the limitations between these interoperable systems and associated barriers in achieving the drilling automation vision.

IADC/SPE 151190

Case Study on Bottomhole Assembly Tool, R. Verhoef, National Oilwell Varco

In these days of rig automation and advanced rig mechanization, the industry may wonder why running the bottomhole assembly (BHA) still requires more people on the drill floor and more equipment than when tripping in or out. This paper presents design challenges, prototype testing and field testing leading to the final version of the Bottom Hole Assembly Tool, which provides solutions to the main challenges in handling the BHA.

TECHNICAL SESSION 4: DIRECTIONAL DRILLING AND HOLE PLACEMENT

IADC/SPE 151039

The Design of BHA and the Placement of the Magnetometer Sensors Influence How Magnetic Azimuth is Distorted by the Magnetic Properties of Drilling Fluids, T.I. Waag, Teknova; T. Torkildsen, Wellpos; P.A. Amundsen, University of Stavanger; E. Nyrnes, Statoil; A. Saasen, Det Norske Oljeselskap

This study focuses on how the magnetic distortion caused by the magnetic drilling fluid is influenced by geometric issues. This has been analyzed by finite element studies of several measurement-while-drilling tool geometries and locations of the bottomhole assembly (BHA) in the wellbore. Knowledge about the magnetic properties of the drilling fluid is essential for estimation of wellbore accuracy and multi-station analysis of magnetic survey data. Our results demonstrate the importance of the geometry of the BHA and the directional tool.

IADC/SPE 150107

Successful Application of Geomagnetic Referencing for Accurate Wellbore Positioning in Deepwater Project Offshore Brazil, B. Poedjono, D. Montenegro, Schlumberger; P. Clark, S. Okewunmi, Chevron; S. Maus, University of Colorado; X. Li, Fugro Gravity and Magnetic Services

This paper outlines a collaboration among operator, contractors and academic experts and the development of the High Definition Geomagnetic Model by the National Geophysical Data Center, which improves the spatial resolution to 30 km. The large-scale magnetic field study was integrated with the Bacia de Campos aeromagnetic survey to account for the entire spatial spectrum of the geomagnetic field to the km scale. Using ellipsoidal harmonic functions and an equivalent source technique, two 3D geomagnetic references with downward continuous models were produced for comparison purposes, and the results were validated by observations from downhole magnetic tools.

IADC/SPE 151431

High-Angle Gyro-While-Drilling Technology Delivers an Economical Solution to Accurate Wellbore Placement and Collision Avoidance in High-Density Multilateral Pad Drilling in the Canadian Oil Sands, K. Brown, Cenovus Energy; K. Beattie, C. Kohut, Gyrodata

Cenovus Energy initiated an aggressive infill drilling program early in 2011 in its Pelican Lake polymer/water flood project in northeast Alberta. By mid-year, the company had drilled 52 injection and producing wells, and drilling was scheduled to continue at the same pace through year-end. This paper will provide the results of the initial tests and analyze GWD performance during drilling, with statistics compiled from more than 60 wells. The savings from eliminating the backup surveys will be presented along with other benefits and observations.

IADC/SPE 151221

Converting Static Friction to Kinetic Friction to Drill Further and Faster in Directional Holes, L. Skyles, Y. Amiraslani, National Oilwell Varco; J. Wilhoit, Devon Energy

In “sliding” operations during directional drilling, the challenge has always been to overcome static friction between the drill pipe and the hole wall while the pipe is not rotating. This static friction can be overcome and even converted to kinetic friction by using a mud-operated downhole tool that axially agitates the drill string; constantly breaking static friction.

IADC/SPE 151047

Using Deep-Azimuthal Resistivity and 3D Seismic for Optimal Horizontal Well Placement: An Integrated Approach, Nipisi Field, Western Canada, S.J. Omovie, Baker Hughes; W.R. Pearson, Pradera Resources

This paper focuses on the integration of geological/3D seismic mapping and measurement-while-drilling azimuthal resistivity for optimal horizontal well placement in a tight limestone reservoir, as well as the limitations of each technology when used in isolation. It illustrates how utilizing this approach, the operator was able to achieve 100% reservoir exposure.

IADC/SPE 151436

High-Definition Geomagnetic Models: A New Perspective for Improved Wellbore Positioning, S. Maus, M.C. Nair, University of Colorado; B. Poedjono, Schlumberger; S. Okewunmi, Chevron; D. Fairhead, GETECH; U. Barckhausen, German Federal Institute for Geosciences and Natural Resources; P.R. Milligan, Geoscience Australia; J. Matzka, Technical University of Denmark

This paper will illustrate the details of the new high-definition geomagnetic reference; its application in different hemispheres to improve well placement, prevent and mitigate the danger of collision with existing wellbores and enable precise relief well drilling; and its use with magnetic tools in real-time steering to save rig time and reduce drilling costs.

TECHNICAL SESSION 5: DEEPWATER

IADC/SPE 151186

Upgrading the Real-Time Drilling Optimization Culture in Brazil’s Challenging Deepwater Operations: The Utilization of a Remote and Rigsite Multidisciplinary Collaborative Concept, A. Borella, D.S. Gozzi, I. Fujshima, K.L. Vello, Petrobras; S.B. Alves, I.J. Thomson, R.M. Krasuk F. Buzzerio, Baker Hughes

In recent years, deepwater drilling operations have become more challenging and expensive with new exploratory frontiers and the rise of rig rates, demanding the need for first-class drilling optimization technology and services.

This paper will present the fundamentals of this real-time remote and rig site drilling optimization concept, with focus on integration between the operator and the service company, the operational aspects with regards to appropriate communication protocols and decision-making processes, highlighting the performance improvement achieved to date.

IADC/SPE 151198

Establishing an Industry Best Practice on Subsea Wellhead Fatigue Assessment, D. Buchmiller, T. Horte, G. Grytoyr, L. Haug, Det Norske Veritas

Wellhead fatigue has received priority attention within the drilling industry, especially on the Norwegian Continental Shelf. Focus has been on developing a universal wellhead fatigue calculation methodology. Motivation for developing an industry guideline stems from the fact that existing international standards provide limited or no guidance on wellhead fatigue calculation. This is part of an ongoing joint industry project facilitated by Det Norske Veritas with participation from Statoil, BP, BG Group, ExxonMobil, Marathon Oil, Eni, Shell, Total, Talisman, Woodside and Lundin.

IADC/SPE 151350

Newbuild Construction Cycles – An Evolving Paradigm, I. Hope, Seadrill; S. Livingston, J.L. Ogg, National Oilwell Varco

Current trends and lessons learned from the recent newbuild trend will be discussed, focusing on the handover of turnkey rigs to drilling contractors.

The paper will focus on where the new risks can be identified while providing methods for a drilling contractor to apply their valuable knowledge and experience. The objective is to ensure the most efficient way of ensuring that these highly complex rigs meet the needs of both the drilling contractor and the customer.

IADC/SPE 151487

Continuing Efficiency and Assurance Advances for Deepwater BOP Testing, C. Franklin, R. Cully, IPT Global

Recently, a significant advancement to deepwater blowout preventer (BOP) leak detection was introduced through an industry-sponsored software development project.

This paper introduces and discusses these advancements. Rigs will utilize a customized schematic of the BOP and manifold within the application. With this working model, the subsea engineer will have the ability to optimally design each of the required tests by simply clicking to close and open manifold valves, BOP rams, annulars, etc.

IADC/SPE 151182

Blowout Preventer Health Monitoring, J.E. Mckay, BP; C. Simmons, National Oilwell Varco; T. Hogg, Ensco; G. Starling, Rock Oilfield Group; M. Doty, National Oilwell Varco

This paper aims to present the use of a real-time dashboard to determine blowout preventer (BOP) health based on levels of system redundancy, the required coordination between the rig contractor and BOP manufacturer on system development, software and hardware development and installation, “traffic light” logic development, operational considerations for BOP health, any lessons learned from the Ensco DS 4 pilot, and future plans for the technology.

IADC/SPE 151733

Focused Approach to Solving Deepwater Reaming Problems, C.H. Dewey, L. Paez, P.C. Desai, Schlumberger

This paper presents an innovative and focused approach to the deepwater reaming operations where all drilling and operational issues are analyzed and a comprehensive solution is developed that meets the challenges presented by the specific application. The authors will provide an overview of the features and system functionality and each of its critical components.

IADC/SPE 151416: There is a lot of material pertaining to the benefits and functionality of MPD automated drilling systems but little technical information on the internals of such a system and how they function.

TECHNICAL SESSION 6: MANAGED PRESSURE DRILLING

IADC/SPE 151168

Next-Generation Managed Pressure Drilling System Enables HPHT Horizontal Wells in the Haynesville Shale, J. Montilva, J.F. Mota, Shell; I. Poletzky, M. Sati, R. Lovorn, J. Grable, Halliburton

This paper describes implementation of a fully automated MPD, which incorporates a rig pump diverter (RPD) that allows smooth transition from circulating to non-circulating downhole during connections while maintaining continuous rig pump circulation. The RPD system allows flow to be diverted from the stand pipe to the choke manifold, enabling precise control of bottomhole pressure for controlled transition from drilling mode to connection mode. This paper will further describe the time savings and enhanced drill crew workflow using the RPD system in not having drill crew to shut down or manipulate the rig pumps during connections.

IADC/SPE 151518

Automated Managed Pressure Drilling Allows Identification of New Reserves in an HPHT Exploration Well in Sepat Barat Field, Offshore Malaysia, I. Azian Bt A Aziz, L. Umar, N. Nordin, T. Nesan, Petronas; F. Rojas, F. Zapata, G. Garcia, A. Waquih, B. Subroto, B. Dow, Schlumberger

The Sepat Barat field is located in Block 313 on the west side of the Malay Basin, Malaysia. It is notorious for its steeply rising pressure ramp, narrow drilling operation window and interbedded sand, coal and shale formations.

This paper will describe the design efforts employed while preparing to drill the SBD-2 well. The challenges and lessons learned, particularly managing pore pressure prediction with multiple techniques, will be discussed. Lessons learned and recommended workflows for similar projects will also be outlined.

IADC/SPE 151392

An Improved Dynamic Well Control Response to a Gas Influx in Managed Pressure Drilling Operations, W. Bacon, Blade Energy; A.Y. Tong, University of Texas at Arlington; O.R. Gabaldon, C. Sugden, P.V. Suryanarayana, Blade Energy

MPD offers the capability to control an influx dynamically without conventionally shutting in. One current method employs applied back pressure (ABP) to force flow exiting the annulus to equal flow entering the drill pipe, which is interpreted as influx cessation. However, solely ensuring flow continuity does not imply influx cessation, unless the annular fluids are incompressible. In this work, the impact of compressibility on dynamic well control is investigated.

IADC/SPE 151416

Automated Drilling Systems for MPD – The Reality, S. Saeed, R. Lovorn, K. Knudsen, Halliburton

Though there is a lot of material pertaining to the benefits and functionality of MPD automated drilling systems, there is little technical information on how the systems actually functions. This paper will examine the internals of such a system and detailing how it actually works. The components, technology and architecture used will be presented in detail.

IADC/SPE 151085

Mud Cap Application Solves Chronic Drilling Problem in a Highly Fractured, Low-Pressure Reservoir, J.J. de Guevara, M.A. Lozada, M. Torres, G. Silva, J. Zaldivar, Pemex; R. Gonzalez, J.P. Sizer, Quantum Reservoir Impact

This paper describes the first successful mud cap application in the Cantarell Field in the Bay of Campeche. Mud cap drilling was applied from 2,843 meters to the total depth of 3,360 meters. The 517 meters was drilled with increased penetration rates, from an average of 28 meters/day before starting mud cap to over 100 meters/day after applying this technique. In addition, the consumption of drilling fluids was decreased by 73%.

IADC/SPE 151249

Continuous Circulation Drill String Sub, J. Weir, R.S. Goodwin, R. Macmillan, National Oilwell Varco

This paper describes the current managed pressure drilling (MPD) market and the philosophy adopted for a new side-entry sub. The new sub is focused on safety, reliability and becoming part of drilling process. The design does not place rig personnel near the high-pressure drilling mud. The sealing component between the high-pressure drilling mud and atmosphere is easily removed and inspected between every connection. This ensures reliability of the barrier, regardless of how long the sub has been in operation.

TECHNICAL SESSION 7: DRILLING PERFORMANCE AND OPTIMIZATION

IADC/SPE 151451

Real-time Motor and Turbine Performance Monitoring and Optimization, M. Ringer, A.B. Johnson, M. Barrett, G. Goldsmith, G. Flint, S. Mao, D. Terracina, Schlumberger

We present the results from a field test where both a turbine and a positive displacement motor were instrumented to provide real-time measurement of their shaft speed. This permitted the construction, in real time, of the actual performance characteristics of the motor and immediate feedback as to the driller’s operating point on the motor’s power curve. This information was then used to optimize the drilling parameters used by the driller to maximize instantaneous output power of the motor and the rate of penetration.

IADC/SPE 150959

Successful Optimization Strategies Combine to Deliver Significant Performance Boost at the Edge of the ERD Envelope, Sakhalin Island, Russia, R.W. James, P.E. Pastusek, G.R. Kuhn, A. Andreev, J.R. Bailey, L. Wang, ExxonMobil

Numerous performance enhancement initiatives were used by the operator for the Sakhalin I project in drilling and completing the extended-reach drilling (ERD) program at the Odoptu Field, Sakhalin Island, Russia. As a result of the drilling successes and favorable production performance, the initial seven-well ERD program was expanded to nine wells. The operator’s philosophy of relentless redesign to remove limiters from the drilling process resulted in significant performance improvements in all areas of drilling and completion operations. This paper will provide details and results for many of the key performance initiatives employed.

IADC/SPE 151177

Performance Drilling – Innovative Concepts Improve Benchmarking and Optimization Processes, G. Mensa-Wilmot, P. Yimpoonsap, Chevron

Performance drilling is globally accepted as an enabler to drilling cost reductions. This realization is particularly important considering today’s applications and harsher drilling environments. To improve and make performance drilling more effective, innovative concepts – formation drillability, drilling index and performance drilling evaluation – will be introduced. The paper will show and discuss how the new concepts have been used on different projects globally.

IADC/SPE 151502

Revolutionizing Drilling Performance through Advanced Real-time Advisory System, B. Dow, R.J. Harmer, J. Belaskie, Schlumberger

This paper will discuss the development and field application of a new technology that allows data to be turned into actions at the well site, improving overall well construction performance. The development team applied a rich understanding of existing well-site workflows, technology and workplace ergonomics and key attributes from gaming and telecommunications industries.

TECHNICAL SESSION 8: FLUIDS TECHNOLOGY I

IADC/SPE 151469

A New SBM for Narrow Margin Extended Reach Drilling, J. Lee, D.D. Cullum, J. Friedheim, S. Young, Schlumberger

A new synthetic-based drilling fluid (SBM) with a new emulsifier and rheology modifier package has been designed for narrow extended-reach drilling. This flat rheology SBM utilizes a single emulsifier to simplify fluid formulation, improve emulsion stability, enhance thermal stability and provide surface-wetting and fluid lubricity.

This paper describes the new flat-rheology SBM system with examples showing typical mud formulations, fluid properties, barite sag performance data, field test data and computer hydraulics simulation of equivalent circulating density impacts.

IADC/SPE 151231

Integrated Drilling, Completion and Stimulation Approach Facilitates High-Productivity Horizontal Well with 10,000 ft Pay Interval, J.D. Jorden, A.M. Jackson, M.A. Al Marzouqi, Zakum Development; S.R. Keller, C.E. Shuchart, C. Ivan, M.V. Phi, ExxonMobil

A linear maximum reservoir contact well with a 10,000-ft horizontal completion interval was drilled and completed in a major carbonate oil field offshore Abu Dhabi. This paper will describe the integrated drilling, completion and stimulation approach taken for planning and executing this well.

IADC/SPE 151413

Rheological Properties of Invert Emulsion Drilling Fluid Under Extreme HTHP Conditions, J. Lee, S. Young, Schlumberger; A. Shadravan, Texas A&M University

This article compares the rheological properties of invert emulsion drilling fluid generated from three types of rheometers from low temperature/pressure to extreme high-pressure, high-temperature (HPHT) conditions and analyzes rheological models that can be used to predict the behavior of invert emulsion drilling fluids under extreme HPHT conditions.

The data indicated several factors that can critically affect the rheology measurements, including drilling fluid chemistry, instrument setup and test schedule.

IADC/SPE 151453

Colorado Drill Cuttings Injection Pilot Results, K.R. Kunze, ExxonMobil; E.E. Romero, Imperial Oil Resources; S. Duck, ExxonMobil

From December 2007 through April 2011, the operator conducted a two-phase drill cuttings injection pilot at the Piceance Field in Western Colorado in an effort to reduce the environmental footprint. This was the first subsurface injection of drill cuttings in Colorado and utilized a lost-circulation zone in the Wasatch G formation as the ideal injection interval. The operator proved injection as a technically feasible option for drilling waste disposal during full-field development at Piceance.

IADC/SPE 151394: Control systems software is a mission-critical component of the drilling control, dynamic positioning, power, subsea and vessel management systems on high-specification offshore assets. Typical contractual language may not be sufficient to provide assurance for the integrated system.

TECHNICAL SESSION 9: IMPROVING BUSINESS MANAGEMENT: CONTRACTS, MANUFACTURING WELLS, ORGANIZATION

IADC/SPE 151394

Contractual Language Needed to Help Reduce Integrated Control Systems Risk on High-Specification Assets, B. O’Grady, Athens Group

This presentation will help drilling contractors, operators and shipyards develop and leverage contractual software standards to create an environment where vendors and stakeholders can work together to improve systems quality onboard high-specification assets and where all parties involved in asset construction and operation are accountable for helping to ensure that software-related issues do not result in nonproductive time or HSE risk.

IADC/SPE 151442

Drilling Contract Historical Development and Future Trends Post-Macondo: Reflections on a 35-Year Industry Career, C.A. Moomjian, CAM OilServ Advisors LLP

IADC/SPE 151442: An industry veteran reflects on a 35-year drilling career, looking at the evolution of drilling contracts.

The author reflects upon a 35-year drilling industry career, more than half of which was as general counsel for major drilling companies, to describe the evolution of drilling contracts and discuss future trends.

The paper describes contractual provisions that were implemented to address technical innovations, such as horizontal drilling, extension into deepwater and dual-activity capability, and discusses the impact of the BP Macondo blowout and oil spill on contract terms. The paper also examines the important choice of law and dispute-resolution provisions.

IADC/SPE 151051

Manufacturing Wells: Myth or Magic, J.P. De Wardt, DE WARDT & CO.

This paper will describe the history of lean manufacturing and under what circumstances it can be applied successfully to well construction. It will build on the differences between project type and various ongoing business type of wells. It will describe where the opportunities are and where the barriers lay in the generation of value. It will also describe where manufacturing techniques run into challenges.

IADC/SPE 151338

Is There a Place for the High Reliability Organization in Drilling? J.L. Thorogood, Drilling Global Consultant

This paper will consider how apparently successful organizations can drift into failure as a result of the consequences of organizational complexity. These ideas will underpin a review of high-reliability organization theory and suggest ways that the principles might be applied to the management of drilling operations in the future.

TECHNICAL SESSION 10: STEERABLE AND DOWNHOLE TOOLS

IADC/SPE 149696

Rotary Steerable Tool Damage Prevention by Utilization of an Asymmetric Vibration Damping Tool, T.G. Burnett, B. Feauto, I Forster, A. Kabbara, National Oilwell Varco

This paper will provide an overview of the extensive research and testing of the tool, plus successful field performance. It will also focus on dual placement of the tool in horizontal applications. A number of added benefits were discovered during this run, including improved directional control, smoother trajectory and improved bit life. The vibration-damping tool resulted in extensive cost savings to the directional company and operator.

IADC/SPE 151322

Qualification of a 4.75-in. Rotary Steerable System for Complex 3D and High Build-Up Rate Applications in Through-Tubing Drilling Operations, M. Eidem, S.K. Andersen, K.M. Winterst, Statoil; S. Schwartze, C.C. Clemmensen, Halliburton; A.K. Nesheim, Baker Hughes

In collaboration with Baker Hughes, a modified 4.75-in. AutoTrak X-treme system successfully demonstrated maximum build-up and dogleg of 15°/30 meters in wells with 5.75-in. pass-through, verified capability of performing coiled-tubing drilling with regards to high dogleg capability with low weight on bit, demonstrated drilling capabilities with motor and with low RPM, demonstrated capability of holding tangent and verified high life time.

IADC/SPE 151603

Roller Reamer Fulcrum in Point-the-Bit Rotary Steerable System Reduces Stick-Slip and Backward Whirl, D.R. Stroud, N. Bird, P. Norton, Weatherford; M. Kennedy, M. Greener, X Driling Tools

An increasing proportion of wells are drilled using RSS, whose bottomhole assembly (BHA) dynamic behavior is very different to that of steerable mud motors. This return to rotary drilling has renewed industry interest in detrimental dynamic phenomena such as backward whirl. Preventing these undesirable dynamics is crucial to drilling efficiency, and it is widely recognized that the nature of BHA/borehole contact points plays a key role in preventing backward whirl.

This investigation focuses on how roller reamer technology can be adapted for use as a key component in rotary steering assembly to prevent borehole traction without causing side cutting and hole enlargement and without adversely affecting system steerability. 

IADC/SPE 151096

Axial Excitation and Drill String Resonance as a Means of Aiding Tubular Retrieval: Small-scale Rig Testing and Full-scale Field Testing, I. Forster, R. Grant, National Oilwell Varco

This paper describes the work carried out at National Oilwell Varco on an in-house designed and built, small-scale vibration test rig, which was developed with the purpose of studying the effect of axial excitation on tubular retrieval.

With reference to offset data, the paper presents actual field data that demonstrates significant reductions in time spent during tubular retrievals and the corresponding cost savings. 

IADC/SPE 151337

Development of a New Advanced Multiple Activation System for Concentric Underreamers, B. Torvestad, T. Ray, J. Hu, O. Gjertsen, Schlumberger; M. Muir, Maersk Oil and Gas

A new system has been developed that makes it possible to perform multiple activation/deactivation of the underreamer. The most obvious advantages are infinite open/close cycles for selective underreaming and the more flexible placement opportunities within the bottomhole assembly due to the activation method. Other advantages are time savings through the elimination of several runs, shorter activation time and higher flow-rate capabilities.

The authors will discuss the application challenges, benefits and engineering efforts, including field testing, that led to a commercial ream-on-demand system. 

IADC/SPE 151500

Hammer Motor Smashes Its Way to Speedy Success in Brazil, R. Gee, T. Ramirez, S. Barton, D. Valmorbida, National Oilwell Varco; J. de Souza, C. da Fonseca, Petrobras; B. Cote, BBJ Tools

This paper discusses a case study from Brazil where the operator has been using turbine motors to drill vertical wells through hard rock formations. The hammer motor displayed significantly higher rate of penetration than the turbine motors without reliability constraints while also reducing bit costs and tool technician costs. These improvements in drilling performance have improved the economics of drilling these formations and are expected to be applicable to other drilling applications.

TECHNICAL SESSION 11: COMPLETIONS, ZONAL ISOLATION AND CEMENTING 

IADC/SPE 151470 

Special Considerations in the Design Optimization of High-Rate, Multistage Fractured Shale Wells, C. Sugden, G. Ring, P.V. Suryanarayana, Blade Energy; J.A. Johnson, M.R. Chambers, EXCO Resources

In this work, the major factors influencing normal and special loads on production casing in shale wells are discussed. A method for optimization of shale well production casing design is then introduced, followed by the constraints on the applicability of different design options. 

IADC/SPE 151241

 Interventionless Surveillance in a Multilateral Horizontal Well, C.A. Andresen, B. Williams, ResMan; M. Morgan, T. Williams, T.W. Crumrine, A.J. Bond, J. Franks, Pioneer Natural Resources

This paper reviews a case study from the Oooguruk field in Alaska, where a new style of chemical tracers embedded into the completion equipment were used to derive a quantitative estimate of the inflow distribution in a dual horizontal, multilateral well. This insight into the reservoir performance was obtained with no intervention into the well and only minor modifications to the completion design. 

IADC/SPE 151147 

Improvements in Production Liner Cementing for Coiled Tubing Drilling (CTD), M.O. Johnson, BP; J. Milne, Baker Hughes; C. Diller, Northern Solutions

This paper will begin with an update on the status of CTD on the North Slope and discuss how many of the challenges with drilling through/below the production tubing have been dealt with. The cost for a CTD sidetrack with an equivalent amount of reservoir exposure and zonal isolation is about half that of a rotary sidetrack. This is due to efficiencies in leaving the production tubing in place, efficiency of operations and less consumables. 

IADC/SPE 151134

Innovative Well Completions Meet the Challenges of Producing High Wax Crude in a Giant Onshore Field in India, V. Kumar, T. McKenzie, R. Singh, A. Wenk, S. Chandra, Cairn India

Specialized rig setup and wellhead systems were designed to allow simultaneous deployment of production tubing, heater string, chemical and instrument lines, and electric submersible pump cables. The wellhead design ensures that barrier policies are maintained through well construction. Simultaneous running of all completion components warranted a specially designed tubing-running system and coiled-tubing deployment system built into the completion rig. Jet pump power fluid exposes the completion to high loads, which also made the completion design challenging. This paper describes the successful design and deployment of these innovative completions and wellhead systems.

IADC/SPE 151405

Slotted Liner for Continuously Acid Jetting Stimulation, S.S. Kofoed, F. Marketz, Maersk Oil; J. Krabbenhoeft, Krabbenhoeft Aps

In the appraisal well HDA 09 in the Danish part of the North Sea, it was determined that in order to make this well economically attractive, a negative skin of around 2 was required. Simulations showed that a skin of 2 can only be obtained if wormholes are made throughout the reservoir. This is possible by pin-pointed acid stimulation in open hole but, with stability issues while stimulating, this was not an option. A liner resembling open hole while stimulating had to be designed.

This paper will show the details of the study, including finite element analysis of the slotted liner design in regards to width and length of the slots, plus recommendation for manufacturing. 

IADC/SPE 151171 

True Zonal Isolation in Open-Hole Alternate Path Gravel Pack Completions, M.D. Barry, M.T. Hecker, C.S. Yeh, T. Moffe151403tt, ExxonMobil

New open-hole technology enables more extensive drilling to capture additional pay, selective completions to isolate undesired zones and production flow control inside the screen base pipe, similar to cased-hole conditions. True zonal isolation in open-hole gravel pack completions facilitates more flexible well planning and operational execution while maintaining reliable sand control. This paper will explore the range of application opportunities that this new technology presents.

TECHNICAL SESSION 12: DRILLING SYSTEMS AUTOMATION 

IADC/SPE 151474 

Drilling Automation: Potential for Human Error, F.P. Iversen, L.J. Gressgaard, International Research Institute of Stavanger; J.L. Thorogood, Drilling Global Consultant; M.K Balov, V. Hepsoe, Statoil

The authors analyze how use of a drilling support system in different modes and levels of automation may influence the system operator’s performance and risk of human error. Development of a systematic method for detecting mode confusion problems by model checking is central in this respect. The test cases have been simulated in a synthetic test environment created at the International Research Institute of Stavanger. 

IADC/SPE 151736 

Automated Closed-Loop Drilling with ROP Optimization Algorithm Significantly Reduces Drilling Time and Improves Downhole Tool Reliability, C.D. Chapman, J.S. Flores, W.M. Faisal, H. Yu, Schlumberger

This paper describes the optimization algorithm and focuses on the system architecture used to integrate the algorithm with the rig control system. The deployed architecture enables the algorithm to receive real-time data from the rig control system and drilling acquisition system to provide a complete data set to the rate-of-penetration optimization algorithm. 

IADC/SPE 151257 

Automation in Drilling: Future Evolution and Lessons from Aviation, J.L. Thorogood, Drilling Global Consultant

The paper will review developments of automation in aviation and describe problems that have arisen. It will then describe the analogous efforts in drilling and identify lessons that could be learned. The paper will present a rationale on which further automation initiatives might be based and the related changes that might be necessary as a result.

IADC/SPE 150941 

Advanced Drilling Simulation Environment for Testing New Drilling Automation Techniques, E. Cayeux, B. Daireaux, E.W. Dvergsnes, A. Leulseged, International Research Institute of Stavanger; B.T. Bruun, Statoil; M.C. Herbert, ConocoPhillips

Newly developed drilling automation systems locate a computer interface between commands issued by the driller and instructions transmitted to the drilling machinery. Such functions are capable of faster and more precise control than that achieved by an unaided operator and thus can help drilling with narrow margins. To ensure that these systems work properly in all circumstances, an advanced drilling simulator has been developed to enable testing under a range of simulated conditions. The environment described in this paper uses hardware-in-the-loop simulation to verify that the automation techniques being tested respond correctly in real time.

IADC/SPE 151459 

Real-Time Drilling Fluid Monitoring and Analysis – Adding to Integrated Drilling Operations, E. Ronaes, T. Stock, Schlumberger

Several attempts have been made to develop automated monitoring equipment for the most typical drilling fluid parameters. Due to the lack of sufficient data-transfer capability, those attempts had only limited success. Improved data flow between drilling rigs and operator and service provider’s land-based support organizations has created a renewed interest for remote real-time monitoring of drilling parameters. Development of data transmission systems like InterACT and data formats like WITSML have initiated the search for and development of new sensors, which can be used for automated real-time monitoring of important drilling fluid parameters.

IADC/SPE 151028 

Applying Theoretical Control Strategies for ROP Optimization and Offshore Well Costs Mitigation, M. Folsta, A.L. Martins, Petrobras

The purpose of this article is to show a comprehensive analysis of the adequacy of different process control strategies to support the automation of the drilling process, with special focus on cost reduction. Different case studies are presented showing the potential of drilling automation strategies to reduce operational costs and risks. 

TECHNICAL SESSION 13: DRILLING CASE STUDIES

IADC/SPE 151959 

Deep Ultra-Slim Hole Drilling in Germany: Operational Experience, Current Developments, Way Forward, M. Elnozahy, M. Schmidt, D. Durkee, ExxonMobil

This paper reviews the operational experience made so far with ultra-slim hole drilling in Germany. This review includes the technical and geological challenges encountered and the different learnings made. Current developments to address the issues and their effectiveness are also discussed. The paper concludes with further areas of improvement for the future, focusing mainly on drilling systems.

IADC/SPE 151181 

Use of Liner Drilling Technology as a Mitigation to Loss Intervals and Hole Instability: A Case Study in Mississippi Canyon, S.M. Rosenberg, D.M. Gala, Weatherford

This paper will demonstrate the benefit of using a liner drilling technology to ream, drill and cement a 7 ^5/8-in. drilling liner and 5-in. production liner in place. Liner drilling technology provided an effective solution to hole instability issues seen while drilling with conventional methods through a narrow mud weight/pore pressure/fracture gradient window laden with depleted intervals and virgin-pressured shales in the Mississippi Canyon block of the Gulf of Mexico. 

IADC/SPE 151202 

Regeneration of First-Generation Subsea Fields: The Challenges of New Wells in Old Infrastructure, S.R. Stright, V. Srivastava, G.W. King, D. Smith, N.C. Tears, ExxonMobil

The paper will describe how the unique challenges of re-drilling three subsea wells were overcome in old and declining fields where the original wells were designed and drilled with little consideration for redevelopment of the fields through reuse of existing wells.

There has been limited industry experience to date of subsea production well re-drills, and this paper will share the significant lessons learned, which will be of wider application as the number of subsea wells increase along with the requirement to maximize recovery and extend field life. 

IADC/SPE 150664 

Improving Drilling Performance in the Upper Cretaceous: A Case Study From Santos Basin, Brazil, S. Flores, L. Fagundes, Y. Irokawa, S. Flores, L. Fagundes, Y. Irokawa, OGX; A. Schmidt, H.J. Quinones, G. Landinez, P. De Oliveira, A. Ramos, Y. Medina Marquez, Schlumberger

During a recent exploratory campaign in the Santos Basin, severe levels of shocks and vibrations were encountered while drilling this large and intercalated hole section, resulting in low rate of penetration, premature bit wear, damaged tools, unplanned trips and drill string failures. Three to four bit runs were required to reach section TD. Post job information and drilling data were reviewed by an integrated operator/contractor team. A detailed engineering analysis of bit, BHA design and drilling mechanics was conducted to address the challenges of this section and propose a new approach to the drilling process.

TECHNICAL SESSION 14: FLUIDS TECHNOLOGY II

IADC/SPE 151473 

Innovative Fiber Solution for Wellbore Strengthening, J.E. Friedheim, M.W. Sanders, J. Prada, R. Shursen, Schlumberger

We describe the path to designing and testing a new high-fluid loss, high-strength lost-circulation solution. The new pill system has been proven to work for a wide range of loss rates and provides a more effective and permanent seal than traditional treatments. An evaluation of the effectiveness of commercially available high fluid loss pill treatments will be presented, as will the methodology used to meet a set of ideal criteria for its use in the field. 

IADC/SPE 151227 

Size Degradation of Granular Lost-Circulation Materials, P.D. Scott, D.H. Beardmore, Z. Wade, ConocoPhillips; E. Evans, K. Franks, Chevron

Lost circulation is a major cause of drilling nonproductive time with significant cost implications. Laboratory and field data is presented to demonstrate the relative size degradation rates for several common lost-circulation materials. This data on the relative degradation in the particle size distribution of granular lost-circulation materials will provide improved understanding of their performance for more efficient application of the materials and will lead to improved wellbore strengthening and lost-circulation recycling applications. 

IADC/SPE 151334 

Integrated Pressure Management Processes for Reducing the Risk Associated with Well Instability Issues: Implications for HPHT Wells, J. Figenschou, A.K. Thorsen, Baker Hughes; B. Thistle, U. Williams, Suncor Energy

Optimizing well control processes are critical in high temperature/high pressure drilling operations so they do not encounter high cost overruns and compromise safety. The key to success is recognizing and mitigating challenges and associated risks early to adequately optimize drilling operations. This leads to a more effective drilling operation with reduced risk, increased safety margins and increased probability of successfully achieving the well’s objectives.

This case describes an integrated work process that has been implemented and incorporates both pre-drill and real-time pore pressure prediction with proactive ECD management during well planning and drilling operations. 

IADC/SPE 151404 

Improved Stability of Invert Emulsion Fluids, R. Van Zanten, J.J. Miller, C. Baker, Halliburton

This paper details an extensive investigation into the effects that emulsifier concentration, the addition of colloidal fines and shear, have on the stability of laboratory, mixing plant, and field-tested invert emulsion drilling fluids. Fluid stability is intricately linked to emulsion stability, which is directly related to the shear history of the whole fluid, the viscosity of the external phase, the emulsifier type and colloidal solids loading. Optimizing these properties can lead to more stable fluids that exhibit stronger gels and lower sag tendencies.

TECHNICAL SESSION 15: EXTENDED-REACH DRILLING, THE NEXT BIG STEPS 

IADC/SPE 149778

Nikaitchuq ERD: Designing for Success on the North Slope of Alaska, M.M. Abahusayn, B. Foster, K&M Technology; J. Brink, M.D. Kuck, J. Longo, Eni

A 52-well heavy-oil field development targeting shallow sands on the north slope of Alaska was kicked off in 2010. Horizontal wells were drilled early in the program that served as data-gathering and technology-proving opportunities.

This paper will discuss the technical challenges, well design solutions and operational practices that were trialed and implemented to enable ER wells to be successfully drilled on the edge of the industry experience envelope, with all wells meeting targeted objectives. 

IADC/SPE 151046 

Pushing the Extended-Reach Envelope at Sakhalin: An Operator’s Experience Drilling a Record Reach Well, M.W. Walker, ExxonMobil

This paper will describe the evolution of well design changes at Odoptu, as well as the challenges successfully overcome, including remote logistics, wellbore instability, shocks and vibrations, and high torque. Significant achievements include the successful placement of completion equipment at world record depth and the drilling of each hole section with a single BHA. 

IADC/SPE 151248 

Directional Drilling Tests in Concrete Blocks Yield Precise Measurements of Borehole Position and Quality, E.J. Stockhausen, Chevron R. Lowdon, W.G. Lesso, Schlumberger

This paper discusses the TVD accuracy of the well as a function of different survey spacing and its impact on horizontal well placement. Changes in touch points of the BHA within the varying hole diameter of the slide/rotate sections are also discussed. Metrics are proposed for managing wellbore quality in terms of tortuosity and rugosity, along with their impact to the wider drilling community. 

IADC/SPE 151386 

From Field Test to Successful Integration of Broadband Drill String System for Offshore Extended-Reach Wells, D.M. Veeningen, J. Palmer, G. Steinicke, J. Saenz, T. Hansen, National Oilwell Varco

This paper describes the successful implementation of high-definition downhole operations through project management, collaboration with third-party tool partners and resourceful scalable solutions to solve operational and logistical challenges. Lessons learned include the implementation on two rigs, data swivel installations, the commissioning of a shore base and the pioneering of local repair and maintenance for specialized networked drilling tools, all leading to the complete integration into the customer’s workflow and process. 

TECHNICAL SESSION 16: TUBULARS

IADC/SPE 150613 

Buckling of Tubing Inside Casing, R.F. Mitchell, Halliburton

This paper presents various ways two concentric pipes can interact when one or both pipes are in compression, leading to a tendency to buckle. The contact forces between the pipes and with the external wellbore are explicitly calculated, and contact or non-contact conditions are determined. All results are analytic so that they can be easily used in spreadsheets or hand calculations.

IADC/SPE 151253

Comprehensive Review of Damages and Repairs on Drill Pipe Connections, T.M. Redlinger, P.S. Griggs, A. Odell, Weatherford; S. Bergo, Eurolncon

This paper will review inspection databases containing several years of drill pipe inspection records, in excess of 100,000 inspection records. The databases contain inspection records for several premium connections and API connections.

The paper will discuss how different inspection standards, premium connections, etc, can affect the damage at the end of the drilling program. The objective is to provide planning factors to the drilling community and to highlight the impact of connection selection and inspection standards on repairs.

IADC/SPE 151140

Innovative Tubular, Hoisting and Deepwater Rig Designs Extend Hook Load Envelope to 2,000,000 Pounds, J.N. Brock, B. Chandler, National Oilwell Varco; C. Selen, Maersk; J. Dugas, W. White, Quail Tools; M. Vasquez, A. Jonnalagadda, Statoil

This case study details the casing-landing operation on Statoil’s Tucker well in the Gulf of Mexico Ridge Block 543, where a string of 13 5/8-in. casing was landed with a total hookload of over 1.96 million lbs. The casing string was set to 24,893-ft MD (24,490-ft TVD) in 6,700 ft of water. This paper will discuss the planning, preparation and load path verificatio, as well as the design, development, manufacture and deployment of the 2 million-lb slip-based landing string that was required for this operation. 

IADC/SPE 151810

Burst and Collapse Responses of Production Casing in Thermal Applications, D. Dall’Acqua, T.M. Kaiser, Noetic Engineering; M. Hodder, Shell

This paper describes numerical analyses for combined post yield loading conditions and is intended as a starting point for burst and collapse design for thermal casing.

In contrast to active axial load conditions, burst analysis of axially constrained casing indicates that an initial thermally induced axial strain exceeding yield does not substantially reduce the burst pressure. Sensitivity studies demonstrate the strong influence of pipe D/t and pressure ratios and pipe material mechanical properties on ovalization response. 

IADC/SPE 150047 

Successful Qualification and Deployment of a High-Pressure Drill Pipe Riser in West Africa, M. Camus, P. Auclair, Total; B. Horsburgh, Cameron; Y. Gallois, C. Rohart, H. Williams, Y. Mfoulou, VAM Drilling

This paper presents a high-performance drill pipe riser product for intervention systems designed and qualified for the USAN Project in Nigeria. The solution was manufactured in 2009, extensively tested and qualified prior to delivery the same year. The qualification performed included the ISO standard requirements and additional testing as requested by the Cameron/TOTAL USAN project team. This string has been successfully deployed since July 2010 offshore Nigeria by TOTAL. 

IADC/SPE 151403 

Hydrodynamic Loads, Soil and Structure Interactions in Conductor Design for Offshore Platforms and Jackup Rigs, N. Pilisi, D.B. Lewis, Blade Energy

This paper discusses the complete structural design of conductors used in offshore wells drilled from jackups and platforms in open water, by deriving equations and providing the essential steps that need to be followed to ensure the structural integrity of the conductor casing from the Texas deck to the setting depth of a few hundred feet below the mudline. To illustrate the methodology, a parametric study using data from different offshore locations with various water depths, external and internal loads, soil properties and metocean criteria has been carried out for both the drilling and production phases.

IADC/SPE 151477: Wired drill pipe conceptually allows measurements to be placed at any location along the drill string. To investigate the potential use of distributed dynamics for real-time decision, a test project was run to acquire vibration data along the drill string on a horizontal well in Oklahoma.

TECHNICAL SESSION 17: DRILLING DYNAMICS – A DEEPER UNDERSTANDING

IADC/SPE 151494

Vibration Failure Analysis in Riserless Conditions, R. Samuel, Halliburton

This paper presents and validates a modified model to predict severe damaging vibrations, analysis techniques and guidelines to avoid the vibration damage to BHAs and their associated downhole tools in the riserless highly deviated wells. The dynamic analysis model is based on forced frequency response to solve for resonant frequencies. 

IADC/SPE 151477 

Distributed Dynamics Feasibility Study, P. D’Ambrosio, R. Bouska, A.J. Clarke, J. Laird, National Oilwell Varco; J. McKay, S.T. Edwards, BP

To investigate the potential use of distributed dynamics for real-time decision, a test project was run to acquire vibration data along the drill string on a horizontal well in Oklahoma’s Woodford Shale. Four BHAs that included up to five independent Downhole Dynamic Data Recorders were run. The sensors were located a different positions along the drillstring.

This paper focuses on the analysis of the measurements gathered and will provide detail description of the results. Several concepts, as well as common known misconceptions related to drilling dynamics, will be discussed. 

IADC/SPE 151395

Efficient and Reliable Vertical Drilling of Top Holes with RSS in Deepwater Gulf of Mexico, E.H. Chamat, R.R. Israel, Schlumberger

Rotary steerable systems (RSS) have become the tool of choice in large-hole sections through unconsolidated sediments. However, challenges in the drilling environment led to less-than-perfect performance in a number of wells in the Gulf of Mexico (GOM); in particular, it is not possible to keep the wells exactly vertical at times, impacting further hole sections drilling. To eliminate the issue, 55 bit runs with 26-in. RSS, performed from 2004 to 2010 in deepwater GOM, were studied using advanced drilling software to solve the cause of inclination build-up.

Analysis of statistics and of the models helped to conclude that, from 2004 to 2009, 84% of the runs were successful, 100% of the runs in 2010 and 2011 successfully helped keep absolute verticality. Recommendations to effectively kick off in the 26-in. section and build up to 20° inclination are given. 

IADC/SPE 151133 

Eliminating Stick-Slip by Managing Bit Depth of Cut and Minimizing Variable Torque in the Drill String, J. Davis, G.F. Smyth, N. Bolivar, Hibernia; P. Pastusek, ExxonMobil

This paper presents the results of applying depth-of-cut control and drill string design to eliminate stick-slip while drilling. Mechanical specific energy, vibration and penetration rate data will be presented over the course of five wells. Results indicate the managed depth of cut and increased torsional stiffness provided significant reductions in vibrations, leading to multiple field record rates of penetration, improved downhole tool life and reduced bit damage. 

IADC/SPE 151556 

Drill String Dynamics Simulation Optimizes Multilateral Casing Exit Windows, C.W. Guidry, R. Thomas, Baker Hughes

This paper describes an innovative casing exit milling bottomhole assembly (BHA) and the method by which its design and predicted performance were optimized using in-house drill string dynamics finite element analysis software. This analytical tool helped in designing the milling BHA so that its operational bending stresses were reduced and its fatigue life was increased. Purposefully designed shapes and placements of the BHA’s bladed cutting sections provided a favorable distribution of restraining forces, thus enabling an optimal length casing exit window.

IADC/SPE 151356

Understanding How the Placement of an Asymmetric Vibration Damping Tool within Drilling while Underreaming Assemblies can Influence Performance and Reliability, A.A. Kabbara, J.P. McCarthy, T. Burnett, I. Forster, National Oilwell Varco

This paper describes the work, on test rigs and full-scale rigs, carried out with respect to placement of an asymmetric vibration damping tool (AVDT) within drilling while underreaming operations.

To minimize eccentric wear and maximize drilling performance, the placement of the AVDT within the bottomhole assembly is critical. This paper describes how the placement of intermediate stabilizers between the AVDT and the underreamer can minimize eccentric wear to the underreamer and the adjacent drill string because of forward synchronous whirl induced by the AVDT. 

IADC/SPE 151466: Most horizontal wells in the Marcellus Shale are being drilled with conventional motors and basic MWD systems. New technology has been able to reduce the operation time required to drill a complex 3D profile Marcellus area well.

TECHNICAL SESSION 18: SHALE DRILLING METHODOLOGIES 

IADC/SPE 151491 

Potassium Silicate Treated Water-Based Fluid: An Effective Barrier to Instability in the Fayetteville Shale, B. Fritz, M. Jarrett, Halliburton

Both oil- and water-based fluids have been used to drill in the Fayetteville shale play with mixed results. Oil-based muds provide reliable inhibition and drilling performance, but environmental and economic concerns have generated interest in water-based alternatives.

This paper describes the technical process used to design, formulate and apply the customized potassium silicate treated water-based muds for use in the stressed Fayetteville shale play. Mineralogical analysis, microscopy studies and continuous improvement based on field observations are discussed. 

IADC/SPE 151466 

Using Advanced Drilling Technology to Enable Factory Drilling Concept in the Marcellus Shale, O. Hummes, P.R. Bond, A. Jones, W. Symons, M.K. Bishop, A.M. Serdy, S. Pokrovsky, Baker Hughes; N.A. Polito, Pennsylvania General Energy

In the Marcellus Shale in the northeastern US, operators are moving from a phase of exploration and appraisal of gas wells to the development phase using factory drilling techniques, which are reducing cost per well, increasing the number of wells that can be drilled and maximizing the production from the wells that are brought online. This paper describes how one operator teamed up with a service provider to adopt new technology that led to a drastic reduction in the operational time required to drill a complex 3D profile Marcellus-area well. 

IADC/SPE 151752

Understanding Shale Heterogeneity: Key to Minimizing Drilling Problems in Horn River Basin (HRB), S. Khan, S.A. Ansari, H. Han, N. Khosravi, Schlumberger

In this paper, drilling problems experienced in 15 wells in two different areas of the HRB were examined. Some of these wells had severe wellbore instabilities due to high pore pressure, mud losses or lost circulation, tight hole/stuck pipe/pack off, or a combination of these events. Three bottomhole assemblies were lost in these wells, which required sidetracking. Most of these problems were experienced in Fort Simpson and upper Muskwa formations. An in-depth analysis of these wells indicated that shale heterogeneity was not properly characterized and anisotropic horizontal stresses were not considered in the pre-spud analysis, which resulted in incorrect mud weight predictions and trajectory calculations.

IADC/SPE 151175 

A Systematic Approach to Improving Directional Drilling Tool Reliability in HPHT Horizontals in the Haynesville Shale, E.G. Pinto, J.F. Mota, Shell; J.L. Grable, D. Ward, Halliburton

This paper examines a systematic approach between a vendor and an operator to drive performance improvement while drilling the lower Haynesville production interval in northern Louisiana. The approach explores how root cause failure nalysis, new condition-based maintenance systems and novel field operations processes were utilized to push measurement while drilling, mud motor and logging-while-drilling performance in this hostile environment. 

IADC/SPE 151131 

Optimized Steerable Motor Design Overcomes Drilling Challenges in Marcellus Shale Unconventional Plays, A. Jones, A.A. Azizov, S.S. Janwadkar, W. Davila, J.A. Fabian, Baker Hughes; M.T. Nguyen, Range Resources

Although drilling horizontal wells in US land unconventional shale plays has increased exponentially in the last few years, maximizing well productivity and improving drilling efficiency remains a major challenge. This paper will discuss the design, modeling and results of horizontal type wells drilled using the short bit-to-bend steerable motor design in unconventional shale. 

IADC/SPE 150971 

Results of 25 January 2011 Shale Drilling Technology and Challenges Workshop, D.R. Torkay, Archer; J. Brakel, H. VanMarel, Shell; T. Geehan, Schlumberger; A.D. Shelton, D. Reid, National Oilwell Varco; M. Killalea, International Association of Drilling Contractors; K.A. Womer, KW Technology Services

This paper presents the results from a workshop on shale drilling technologies and challenges in Houston on 25 January 2011. The workshop, sponsored by the IADC Advanced Rig Technology Committee’s Future Technology Subcommittee, brought technology leaders and engineers together to discuss issues related to North American shale drilling. Led by specialists with operating, contracting and technology companies, the workshop goal was to educate the industry regarding existing technologies and challenges.

SESSION 1 E-POSTER:

IADC/SPE 151406

The Effects of Back Rake and Side Rake Angles on Mechanical Specific Energy of Single PDC Cutters with Selected Rocks at Varying Depth of Cuts and Confining Pressures, V. Rajabov, S.Z. Miska, M. Yu, E. Ozbayoglu, University of Tulsa; L. Mortimer, National Oilwell Varco

Polycrystalline diamond compact (PDC) bit design parameters, such as cutter back rake and side rake angles, are among major contributors to drilling efficiency, rate of penetration and durability of cutters. Experiments were carried out at in a single-cutter high-pressure testing facility at Tulsa University Drilling Research Projects. The results with more than 80 high-precision tests show that back rake and side rake angles have substantial effects on rock cutting efficiency and aggressiveness of PDC cutters. Low back rake angle produces higher cutting efficiency and requires the least amount of cutting force and torque in order to cut the same volume of rock. The results provide useful insights into the physics of cutter rock interaction and are valuable to PDC bit design to enhance rate of penetration and drilling efficiency.

SESSION 2 E-POSTERS: 

IADC/SPE 151448

Improving Casing Wear Prediction and Mitigation Using a Statistically Based Model, S.B. Mitchell, WWT International; Y.L. Xiang, Pegasus Vertex

Casing wear models use the number of drill string revolutions and contact force between the drill pipe and casing to calculate wear. To improve the accuracy of casing wear models, an extensive database was created from a wide variety of wells with measured depths greater than 13,000 ft. The database results in a statistically based model for determining dogleg severity within vertical, build and tangent sections, as well as total drill string revolutions at various levels of confidence to bound average and maximum expected contact force and casing wear. 

IADC/SPE 151212

Optimized Wellbore Design and Drilling Program Due to Advancement in Directional Drilling Technology, S. Pokrovsky, C.G. Small, M.E. Anderson, R. Flores, Baker Hughes; B.C. Knopp, Anadarko

The Eagle Ford Shale is currently the fastest-growing, most diverse unconventional shale play in the United States. It includes areas rich in oil, gas and gas condensate and has large variations in temperature, depth of producible zones, dips and fracturing. The authors will discuss the evolution of drilling operations in the Maverick Basin, located on the western side of the Eagle Ford.

SESSION 3 E-POSTERS:

IADC/SPE 151441

High-Confidence Vertical Positioning for Extended-Reach Wells, N.C. Mohammed, M.E. Terpening, Schlumberger

There is significant potential to improve extended-reach project risk profiles for asset management teams. We outline a methodology that leverages the capabilities of an advanced MWD/RSS system in combination with a dynamically updated SAG (systematic inclination misalignment) model. Results were corroborated initially with independent third-party surveys and later with a high-quality formation pressure while drilling data set from several wells drilled in a hydraulically continuous reservoir prior to production. The techniques described are a primary element of the thin reservoir targeting strategy for future development drilling in Sakhalin.

IADC/SPE 151274 

Scaled Tortuosity Index: Quantification of Borehole Undulations in Terms of Hole Curvature, Clearance and Pipe Stiffness, S. Brands, R. Lowdon, Schlumberger

A Scaled Tortuosity Index is proposed that describes the total amount of required elastic energy to bend all the components in the string in all the required configurations to move it to TD. The index is linked to the nominal hole and casing size. This is a different concept from the existing Energy Index; it takes into account that actual hole curvature is not the curvature of the pipe in the hole (governed by stiffness and clearance). Putting tortuosity in the context of stiffness and clearance allows us to evaluate and compare boreholes with high and low frequency/amplitude borehole undulations in a meaningful way.

IADC/SPE 151283

PDC Bit Steerability Modeling and Testing for Push-the-Bit and Point-the-Bit RSS, S. Menand, C. Simon, J. Gaombalet, L. Macresy, DrillScan; L. Gerbaud, M. Ben Hamida, Paris Tech; Y. Amghar, Total; H.J. Denoix, Schlumberger; B. Cuillier, H. Sinardet, Varel

In both point-the-bit and push-the-bit rotary steerable systems, both tilt and side force are applied on the bit. There have been many discussion regarding the deviation mechanisms involved in these two systems. In response, a full-scale drilling bench was developed to test drill bits in push-the-bit, point-the-bit or hybrid push/point mode. This facility enables any coupled tilt side force on the bit to reproduce the RSS mechanisms. This paper is intended to show results of this experimental campaign.

SESSION 4 E-POSTERS: 

IADC/SPE 150461

Modeling for MPD Operations with Experimental Validation, I.S. Landet, H. Mahdianfar, O.M. Aamo, Norwegian University of Science and Technology; A. Pavlov, Statoil

Heave motion of floating rigs complicates the control of pressure in managed pressure drilling (MPD). During connections, the drill string is detached from the drawworks and moves with the heaving rig, causing downhole pressure fluctuations. As a step toward designing control schemes to actively attenuate the fluctuations, a fit-for-purpose mathematical model of well hydraulics is derived based on a finite volumes discretization. The contributions of this paper enable development of control systems for automated MPD operations from floaters.

IADC/SPE 151130 

Uncertainty Quantification of Real-Time Pore Pressure Models Caused by Normal Compaction Trend Line Setting, A. Bartetzko, S. Wessling, P. Tesch, U. Lautenschlueger, L.J. Andonof, D. Broadhead, Baker Hughes

This paper highlights uncertainty sources associated with the basic stages in pore pressure modeling. Furthermore, filtering of the data prior to trend-line definition may add uncertainty. The uncertainty in pore pressure introduced by the modeling stages is demonstrated on an example data set from an offshore well.

IADC/SPE 151034

Performance Evaluation of a New Transient Two-Phase Flow Model, J. Li, M.A. Teixeira, P. Salim, Baker Hughes; Y. Fan, ConocoPhillips

In this paper, a new simplified transient two-phase flow model has been developed. In each time step, the two-phase flow regime, liquid holdup and pressure gradient are estimated with the empirical correlations, which are well developed for the steady state flow. A drift flux equation was also introduced to close the system. The model and algorithm were validated against data collected from the public literature, field operations and other transient software. The benefits of using the transient simulation for the operational design, training and job execution will be discussed.

SESSION 5 E-POSTER: 

IADC/SPE 151798 

Properties of Filter Cake of Water-Based Drilling Fluid Under Dynamic Conditions Using Computer Tomography, S. Elkatatny, H.A. Nasr-El-Din, Texas A&M University

Heterogeneity of the filter cake plays a key role in the design of chemical treatments needed to remove the filter cake. Extensive lab studies were conducted to measure the filter cake thickness and porosity of 69 pcf water-based drilling fluid using computed tomography (CT) scanner and develop a relationship between the porosity and the permeability of the filter cake.

Using CT for the first time allowed us to evaluate existing models to predict porosity permeability relationships of the filter cake.

 SESSION 6 E-POSTERS:

IADC/SPE 150232

Exploration to Production in Two Years: A Contracting Strategy Case Study, V. Passos, OGX; G. McCallum, S. Dubey, G. Lindsay, Schlumberger

An independent Brazilian oil and gas company acquired 21 exploration blocks in November 2007 and increased its portfolio to 29 blocks by March 2009. The challenge of exploiting the blocks was achieved by setting ambitious, time-bound exploration and production goals. The company chose an outsourcing strategy pillared on project management and worked wherever appropriate to minimize the number of contractors.

This paper looks at how this strategy allowed the company to achieve its goals.

IADC/SPE 149906

Advanced Pre-drill Simulations for Safer and More Cost-effective Drilling, D. Sui, T. Gulsrud, E. Kristoffersen, SINTEF Petroleum Research

We have developed an advanced technical method for the evaluation of planned drilling operations with respect to equivalent circulation density, temperature, pore pressure, well stability and torque and drag. The methodology provides an extensive analysis and recommendations based on simulation results. This will contribute to increased safety, reduced risk and reduced costs. The performance of the methodology is demonstrated using data from a North Sea well.

SESSION 7 E-POSTERS: 

IADC/SPE 150347 

Milling Low-Side Casing Exit Windows in Horizontal Wells: A Case Study, C. Hogg, R. Barker, J.C. Valverde Penangos, R. Caceres Leon, Weatherford; C.A. Gandara, E. Ortiz Prada, P.A. Gil Chipatecua, H. Rueda, Hocol

This paper details a successful re-entry sidetracking and drilling operation in Colombia’s Puerto Gaitan area. To economically reach this new reservoir zone, the casing exit was constructed on the low side of the existing wellbore’s horizontal casing section. Such low side exits are rare due to concerns about interference between the whipstock and drilling assemblies. Additionally, the desire to drill with a rotary steerable system made it imperative that a casing exit be created, which minimized bending stresses on the drill string through the window, therefore increasing drill string longevity.

IADC/SPE 150027 

New Tools and Procedures Increase Reliability of Open-Hole Sidetrack Operations, C.H. Dewey, S.N. Swadi, J. Campbell, P. Desai, Schlumberger

A recent research and development effort has identified a new method and associated tools that can be effectively utilized to increase operational reliability in open-hole sidetracking and to save costs in terms of time and materials. The paper outlines mechanical and operational features of various systems along with their respective field performances. The authors will describe field run challenges, how those were overcome, the lesson learned and potential system modifications.

IADC/SPE 149755

Can You Protect Your Motor without Sacrificing Performance? B. Guidroz, S. Barton, National Oilwell Varco

Balancing the performance and longevity of drilling motors is a constant struggle. Operating above recommended parameters delivers higher rates of penetration but can be too aggressive, causing accelerated component wear and premature failure. Conservative operation decreases the component wear but can be detrimental to drilling performance. A novel approach to controlling motor performance allows operators to operate at specified limits while preventing spikes that damage motors. Field testing of the device has resulted in a significant reduction in motor component damage.

SESSION 8 E-POSTERS: 

IADC/SPE 151378

Multilateral History – Deepest Level 4 Cemented Junction Installation, A.W. Hua, T.X. Qing, Y.X. Tong, B.D. Xiang, Tarim Oilfield; C.B. Ponton, J.M. Roberts, D.G. Durst, Halliburton

An operator was challenged with increasing production efficiencies from new single wellbores in the deep Tarim Basin reservoirs of China. To optimize production, multilateral drilling and completion technology were implemented on a pilot well.

This project is the first multilateral installation for this client; it was the first cemented Level 4 multilateral in China and is the deepest Level 4 multilateral installed worldwide. This paper describes the objectives, challenges, best practices, contingencies, logistical issues, results and lessons learned from the implementation of this deep set multilateral technology.

IADC/SPE 151023 

Optimized Pumping Design Brings Expressive Cost Reduction for Offshore Open-Hole Gravel Pack Operations, J.V. Magalhaes, R.A. Leal, M.V. Ferreira, A.L. Martins, R.P. Santos, A. Calderon, D.N. e Silva, Petrobras; B. Simoes, D. Miranda, D.P. Barbosa, M.J. Hunes, Halliburton

Sand control is a major issue for offshore unconsolidated sandstone reservoirs, where any workover or production interruption is associated with high costs. Horizontal well open-hole gravel packs proved to be a reliable strategy to prevent sand production in the prolific offshore Brazil fields. More than 250 operations were performed in different critical scenarios, such as ultra-deepwater wells, long horizontals and in the presence of shale interlayers.

Pushed by fluctuations in oil production revenues and aware of the expressive costs related to gravel pumping operations, Petrobras started a broad research and field test strategy to reduce operational times and costs. This article details both aspects of the development.

SESSION 9 E-POSTERS:

IADC/SPE 151180

Automation Improves Shaker Performance, K. El Dhorry, B. Dufilho, National Oilwell Varco

One limitation of current shale shakers is their performance can be negatively impacted by changes in feed rate. Standard shakers operate with vibratory motors running at a constant speed, yielding a constant output force. This results in a shaker having its peak g force during non-loaded conditions. As soon as drilling fluid is added to the system, the acceleration decreases and so does the shaker performance.

Results, observations and testing methods from more than two years of testing and operations will be presented.

IADC/SPE 151204 

Collaborating on Real-Time Geomechanics Across Organizational Boundaries, L. Magini, F. Zausa, Eni; D. Molteni, N. Fardin, W.A. Pausin, Schlumberger

This paper describes the application of real-time geomechanics to a remote exploration project in a challenging field and how operations benefited from this technique. The stakeholders were based in four locations: rig site, operator’s office, operator’s real-time center and service company’s real-time center. Interaction among stakeholders was coordinated via the operator and service company real-time centers; the use of available infrastructure and remote collaboration software created a collaborative environment.

SESSION 10 E-POSTER:

IADC/SPE 151331 

A New, Alternative Weight Material for Drilling Fluids, M. Al-bagoury, C.D. Steele, Elkem Materials

This paper describes a micronized weighting agent suitable for use in drilling, completion and cementing fluids that offers advantages in the control of equivalent circulating density, sag and formation damage.

SESSION 11 E-POSTER:

IADC/SPE 151254

Analytical Model to Predict the Effect of Pipe Friction on Downhole Temperatures for Extended Reach Drilling, A. Kumar, A. Singh, University of Houston; R. Samuel, Halliburton

This paper will present the derivations of the generalized heat transfer model and the application of the model in a field case. The temperatures of the drill string and drilling fluid were calculated at various depths for the considered well profile.

SESSION 12 E-POSTERS:

IADC/SPE 151407

Effective Force and True Force: What are They? R. Samuel, Halliburton; A. Kumar, University of Houston

This paper provides the mathematical treatise and discusses the theoretical basis of effective force and true force and how they are used in torque, drag, buckling, stress and limit calculations. This paper describes the details, apparent definition, pitfalls and context that these forces can be used.

IADC/SPE 149898

Sophisticated Software Analysis System and Use of Torque/Drag Modeling for Complex Well Operations Increases Operational Efficiency, L. Xie, D.P. Moran, L. Yan, J. Mercado, Schlumberger

The authors will discuss new modeling software capable of analyzing complex well operations, including liner hanger and jarring operations in detail.

SESSION 13 E-POSTER:

IADC/SPE 151482

The Best Driller in the Gulf of Mexico, R. Griffon, J.P. Gauthier, Schlumberger

An analysis of more than 100 Gulf of Mexico deepwater wells reveals that one operator is experiencing more drilling success than its peers in terms of consistent and repeatable top-quartile drilling performance. These results are driven by a commitment to the operator’s drilling philosophy, a strong partnership with key service contractors, and a core drilling team of experienced and technically sound professionals.

Editor’s note: The abstracts have been edited for space. The list of papers is current as of 31 December 2011. Paper additions or withdrawls after this date may not be reflected.

The Baker Hughes Competence Management Program, based on compliance, reliability and performance, gives company employees the training and tools necessary to be able to meet and exceed current and upcoming operating requirements and government regulations. It offers a way to measure the experience employees bring to each project and provides them a career path.

“Proactively seeking this full accreditation of our competence system required thorough audits by IADC,” Baker Hughes’ president of global products and services Art Soucy said. “This accreditation stands as further evidence of our company’s commitment to compliance and reliability and is a way to let our customers know each of our employees is proficient to work where they are assigned.”

To receive the IADC accreditation, Baker Hughes’ program was reviewed over several months, including a review of the performance criteria in place through curriculum managers and competency managers, who work closely with those in the technical, engineering and operations fields. IADC also looked at Baker Hughes’ process for defining competencies, training resources and methods to support the training and development process, as well as the company’s assessment system for evaluating competency. Documentation and quality assurance also was considered.

“Baker Hughes’ accreditation reflects a new approach at IADC to help ensure that not only are drilling contractors meeting a high level of standards in developing employee competency, but oilfield service companies are meeting the same competency assurance standards as well,” said Mark Denkowski, IADC vice president of accreditation & certification programs. “IADC congratulates Baker Hughes on becoming IADC Competence Assurance accredited and demonstrating to the industry and the public that the company has a formal system in place for evaluating the performance of its personnel.”

Click here for more information on IADC’s Competence Assurance Program.

Recently, IADC and 85 other groups representing the business and agricultural communities jointly wrote to US President Barack Obama expressing concerns over a proposal to merge the Office of the USTR with five other agencies into a single cabinet-level department.

The USTR plays an invaluable role in coordinating the different entities within the US government with specialized trade functions based on expertise. By balancing the interests of various constituencies and agencies, the USTR provides assurance “that no one has a thumb on the scale,” the letter stated.

As a separate entity within the Office of the President, the USTR is able to act responsively to negotiate, implement and enforce US trade objectives. The USTR is actively involved in growing US exports, eliminating foreign market barriers and improving the overall competitiveness of US farm and manufactured goods and services in the global economy.

Mr Petty can be reached via email.

Brian Petty, executive vice president – government affairs

Jones act legislation

IADC is coordinating a lobbying strategy in response to US House legislation introduced in September 2011 at the behest of the Jones Act Coalition. The legislation, HR 2946, would require any foreign-flag MODU intending to operate under US jurisdiction to be re-flagged as US. This could cause extreme difficulties for many drilling contractors due to financing constraints and the need to transfer effective control of the asset to an owner that can meet the required citizenship criteria.

IADC is supported by Shell and Maersk in opposing this legislation. Similar legislation was introduced in the last Congress and failed. It’s expected that this bill will also fail.

Discharge Reform Act

IADC was among 14 organizations that wrote to US House members expressing strong support for the Commercial Vessel Discharges Reform Act of 2011, which will provide a uniform federal framework for the regulation of ballast water and other vessel discharges.

Legislation to establish a consistent, practical and science-based national program for the management of vessel discharges is urgently needed, the groups stated. “The current statutory system is a confusing, duplicative and inconsistent patchwork in which two federal agencies (the Coast Guard and EPA) and more than two dozen states regulate the same vessel discharges in overlapping and sometimes contradictory ways,” according to the letter.

The absence of a clear and effective federal framework constrains the movement of essential maritime commerce, jeopardizes American jobs, multiplies regulatory burdens on businesses and workers, puts the environment at risk and forces taxpayers to pay for duplicative and contradictory government programs.

The groups believe the reform act will fix the situation and urged congressional leaders to take action. The letters were addressed to the chairmen and ranking members of the committees on Transportation and Infrastructure; on Coast Guard and Maritime Transportation; and on Water Resources and Environment.

The proposed legislation (HR 2840) was approved by the Transportation and Infrastructure Committee on 13 October, with the recommendation that it be considered by the House as a whole.

Indonesia cabotage law

An Indonesian newspaper reported in early 2011 that the government and lawmakers in that country agreed to exclude vessels in the oil and gas industry from its cabotage law.

According to the report, Yasti Soepredjo, chairman of the House of Representatives Commission V, said that the Transportation Ministry must issue a special regulation to accommodate specific activities of foreign vessels that serve the offshore oil and gas sector.

Foreign-flagged vessels that would be excluded from the cabotage rules are those engaged in seismic, drilling and offshore construction activity in oil and gas. Indonesian shipowners do not engage in these activities because of the high investment costs involved and short contracts, said Johnson W Sutjipto, chairman of the Indonesian National Shipowners Association. “We are not against them operating in Indonesia. We need them,” he was quoted as saying.

Indonesia enacted its cabotage law in 2005, but industry has been trying for years to convince the government that enforcement would bring dire results. The commission was told, for example, that Indonesia could lose $7 billion in oil and gas production if enforcement went ahead. Indonesian Petroleum Association vice president Sammy Hamzah has said the law could cost the country 200 million bbl of oil and $13 billion in investment.

EU energy policy

The International Association of Oil & Gas Producers (OGP) urged the European Commission to take caution in its transition to a low-carbon energy mix, saying the EU can’t afford to be out of pace with the economic development of the rest of the world. The comments were included in a letter sent in late April to the EU Task Force on Resource Efficiency. The letter was signed by Barry King, chairman of the OGP EU Committee; Mr Petty serves on the committee.

The letter also recommended allowing for swift appraisal of the EU’s shale gas potential and emphasized that “affordability, flexibility and ensuring resilient energy supplies should be the primary policy goals of the Resource Efficiency effort.”

UK shale gas report

The UK House of Commons’ Energy and Climate Change Committee put its support behind shale gas and hydraulic fracturing in a 2011 report looking at the impact shale gas could have on water supplies, energy securities and greenhouse gas emissions.

According to the report, the inquiry found no evidence that hydraulic fracturing poses a direct risk to underground water aquifers as long as the well is constructed properly. The committee concluded that a moratorium on fracking in the UK is not justified or necessary at present.

UK Parliament member and committee chairman Tim Yeo was quoted as saying, “There has been a lot of hot air recently about the dangers of shale gas drilling, but our inquiry found no evidence to support the main concern – that UK water supplies would be put at risk. There appears to be nothing inherently dangerous about the process of fracking itself, and as long as the integrity of the well is maintained, shale-gas extraction should be safe.”

The report also concluded that shale-gas extraction could reduce the UK’s dependence on imported gas. The British Geological Survey estimates that the UK’s onshore shale gas resources could be as large as 150 billion cu meters, equivalent to roughly 1.5 years of total UK gas consumption. The committee also called on the government to encourage the development of the offshore shale gas industry in the UK, believing reserves there could “dwarf” onshore supplies.

US-India treaty

IADC and 16 other trade and business groups jointly sent a letter in July 2011 to the US government urging progress on US-India bilateral investment treaty (BIT) negotiations “so that US companies and their workers will not lose out on important economic opportunities and protections in the highly important and fast-growing Indian market.” The letter was sent to Secretary of State Hillary Clinton and US Trade Representative Ron Kirk ahead of the US-India Strategic Dialogue and Trade Policy Forum.

Negotiating a strong and high-standard BIT with India will produce substantial increases in productive investment by US companies, US exports and other new market opportunities for the US, the letter stated. Moreover, BITs are a vital tool to protect important US investments overseas that promote US exports and economic growth.

A BIT with India would provide strong protection for US property and help open a major market for key US goods and services. It also would help level the playing field for US companies and their workers. India already has 48 BITs in force, including with England, France, Germany, South Korea and Russia.

The lack of a US BIT undermines US companies’ opportunities to compete on an equal basis against tough competitors from around the world.

Unconventionals task force

John Beswick, PR Marriott Drilling, continues to represent IADC on OGP’s Gas Communications Task Force in Brussels. The group’s goal is to identify questions raised by those opposing the exploration of unconventional gases, such as coalbed methane and shale gas, to defend industry from adverse publicity and promote the benefits of E&P development.

Shale gas is the principal target of industry opponents, and threats are serious enough that it could jeopardize the continuation of unconventional gas development in Europe, with repercussions elsewhere if opponents succeed. The main issues are safety of drinking water in the area; chemicals used in fracturing operations; induced seismicity; water use and disposal in fracturing operations; land rights; economic impact on the area (employment); environmental issues such as noise, contamination and dust disturbance; and shale-gas emissions.

In France, the ecology minister put in place a moratorium on shale gas E&P in February 2011 pending a study commissioned by the French government. A Dutch court has ordered the suspension of the Bergermeer gas storage project, the largest in Europe, citing objections by environmentalists and local residents’ fears of tremors from gas injection into the depleted field. Shale-gas development in the Netherlands is also planned, and the impact of this ruling on shale gas is uncertain.

In the UK, Cuadrilla Resources suspended fracturing operations in a shale-gas license until a report is published on low levels of induced seismicity. There is also increasing opposition reported in Germany. All European national governments and regulators are watching the various developments and decisions by other governments that may affect the way they approach the future licensing of unconventional gas development.

This level of opposition and threat has prompted a major effort by OGP, operators and other interested organizations to present a strong rebuttal. OGP has developed a presentation summarizing the reality of the issues at hand.

EU/UK Working Time Directive

Following on last year’s victory when the Scottish appeals court sided with the industry on the Working Time Directive, a hearing of the offshore unions’ appeal in the UK Supreme Court took place on 26-27 October 2011. The 2010 unanimous court decision was a clear vindication for the offshore E&P industry, which argued that the equal time rota for its employees was lawful. Industry’s UK lawyers remain very optimistic that the employers group, including IADC, will prevail.

A decision by the UK Supreme Court is expected at the end of this year. It remains to be seen whether the unions would then take a further appeal to the European Court of Justice.

Mike Killalea, group vice president/publisher

At a time when the industry is rethinking and, some would say, revolutionizing its approach to drilling, the IADC Advanced Rig Technology (ART) Committee is working to move well-construction technology to the next level. Under the leadership of chairman David Reid, National Oilwell Varco (NOV), the committee comprises three subcommittees: Drilling Control Systems (DCS), led by Terry Loftis, Transocean; Reliability and Guidelines (R&G), Robert Urbanowski, Precision Drilling Oilfield Services Corp; and Future Technology (FT), Dustin Torkay, Archer.

The DCS Subcommittee is working in tandem with the SPE Drilling Systems Automation Technical Section (DSATS) to identify the best method to interface downhole tools with surface systems. In conjunction with DSATS, DCS plans to propose and publish an industry guideline for integrated applications.

To pursue this objective, DCS established four work groups:

• Transfer of Tool Ownership (led by Craig Brooks, NOV): to determine prioritization in changing or shutting down tools, when, for example, multiple pieces of machinery are under automated control. In addition, the group will establish fail-safe modes and other issues;

• User Interface Standardization (Clinton Chapman, Schlumberger): to determine whether UI standardization can be integrated into a driller’s console, if desired;

• Well State/Phase Definition (Fred Florence, NOV): to help define states or phases of the drilling operation. DCS aims to define where downhole communication and integration brings value for specific phases of well construction;

• Cascade Effect of Control (Cesar Peña, Tesco): to measure the impact of cascading intelligent controls systems, such as EDS or Autodriller with DCD.

DCS is seeking volunteers for each of the work groups. Contact Mr Killalea at mike.killalea@iadc.org.

R&G continues to build on its past efforts, including the Technology Value Guide (TVG), which provides definitions for 35 pieces of advanced rig equipment, from top drives and multi-activity to AC drives and automatic drillers. The definitions were developed by members of the R&G Subcommittee.

The TVG also features illustrations of each piece of equipment and links to training providers. The TVG is available through the Additional Resources link on the ART Committee website.

Finally, the FT Subcommittee looks to the past to learn for the future. FT holds workshops and prepares industry papers across a range of topics. Most recently, the FT Subcommittee held two well-attended workshops, the first on stick-slip mitigation, which resulted in a paper presented at the 2011 SPE/IADC Drilling Conference in Amsterdam. The paper was published in the March/April 2011 edition of Drilling Contractor and is available online at www.drilling
contractor.org/stick-slip-workshop-highlights-mitigation-technologies-needs-8781.

Subsequently, FT organized a workshop on shale-gas drilling. Results of this workshop will be presented at the 2012 IADC/SPE Drilling Conference in San Diego, Calif.

A major workshop finding is that technology is expected to overcome most if not all challenges associated with shale-gas development, lowering development costs and minimizing operational footprint. Several operators, the paper will reveal, have initiated research programs, either internally or in collaboration with third parties, to develop more effective stimulation technology, enhanced reservoir “sweet spotting” techniques, or low-cost drilling technology.

Several universities have also initiated new research related to shale-gas development. The paper will refer to ongoing developments in this respect.

Condition monitoring workshop

FT’s next workshop will focus on rig condition monitoring and is scheduled for 19 January 2012 at NOV’s facility at 7909 Parkwood Circle in Houston. Watch the ART Committee website for details.

ART, European style

A major ART goal is to offer drilling professionals outside North America the opportunity to participate. While IADC’s advanced telecommunications systems make it convenient for members to participate in meetings via web and phone, differences in time zones sometimes discourage remote attendance.

Consequently, the IADC ART Committee will hold a half-day meeting and workshop on 12 June in Barcelona, just before IADC World Drilling, also convening in Barcelona. The event will feature a combination of presentations and discussions. Watch the ART Committee website for more information.

Steve Kropla, group vice president – operations & accreditation

Understandably, for the past 18 months, much of the resources of IADC’s Operations & Accreditation Group have been focused on the plethora of activities that has sprung up worldwide in response to the Montara and Macondo incidents (see Page 104). The investigations, inquiries, regulatory initiatives and industry responses have taxed IADC’s resources like never before. Nevertheless, while Macondo may have changed our world, it didn’t end it, nor stop the broad spectrum of activities that IADC had been engaged in previously.

The industry has continued to grow at a breakneck pace, with the US rig count returning to near-record recent levels, increased focus on shale oil, shale gas and the effect of the looming “big crew change” and more than 140 new offshore rigs either planned, on order or under construction.

IADC’s Operations & Accreditation Group has responded to these demands in part through increased staff to handle environmental concerns over hydraulic fracturing and OSHA regulations dealt with by our Land Division, and by creating a position of industry compliance specialist to help contractors with additional regulations being promulgated that would affect both land and offshore operations. We have also added an industry affairs consultant to provide technical support in Australasia and to supplement IADC’s existing Asia Operations. We also have continued to work closely with other industry groups, from API to OGP and the Offshore Operators Committee to respond to industry needs.

As can be seen in the detailed individual staff summaries that follow, each operating unit within the group – the Offshore Division, Land Division, Regional Operations and the Accreditation & Certification Department (ACD) – have all been engaged in a multitude of efforts both on behalf of IADC and in support of our various standing committees.

IADC’s Offshore Division remains involved in a number of environmental, regulatory and technical matters affecting our offshore contractor members, as well as renewed interest by regulators worldwide in the IADC HSE Case Guidelines for Mobile Offshore Drilling Units. The division has also liaised regularly with members and our accreditation unit to help contractors comply with the new SEMS requirements.

To meet increased demand for its services, ACD has undergone a reorganization to allocate resources specifically to program development, customer service, and quality assurance and quality control (QA/QC). Including the responsibility for training provider audits, QA/QC will be facilitated through a contract giving ACD access to DNV’s global network of professional, independent auditors.

IADC’s Regional Operations continue to focus on the sharing of industry information through venues such the European Operations Forum, Middle East Operations Forum and Asia Operations Forum. This year, IADC also introduced its Land Operations Forum in the US.

Our standing technical committees also remain robust. Anticipating the swell of new employees required by the newbuilds coming in, the Training Committee has renewed its focus on defining critical employee competencies and methods for contractors to assess them.

Responding to industry interest, the Underbalanced Operations and Managed Pressure Drilling Committee created a new subcommittee on dual-gradient drilling. The Well Control Committee has initiated a comprehensive cycle of curriculum revisions and updates. At the same time, the committee is pondering possible requirements for annual retraining.

The HSE Committee, in addition to ongoing maintenance of IADC’s Incident Statistics Program, has focused on additional metrics and exploring how companies can enhance their HSE culture. The Environmental Subcommittee has focused on issues of sustainability and its EPAP benchmarking study.

This brief introduction barely scratches the surface of the breadth of IADC activities and initiatives, which are reported in detail in the sections that follow.

Alan Spackman, vice president – offshore technical and regulatory affairs

As in 2010, a significant portion of 2011 was spent on Macondo-related efforts. For activities related to Macondo, please see page 108. However, numerous other initiatives relating to offshore regulatory and technical issues are ongoing. Below is a summary.

MODU Code

The government of Brazil proposed that IMO amend the 2009 MODU Code to codify practices for alternatives to traditional lifeboat drills for MODUs. Arrangements similar to those proposed by Brazil have been accepted by several flag-State administrations; adoption of Brazil’s proposed amendments would validate and facilitate adoption of these alternative arrangements. Brazil’s proposal was approved as an addition to the IMO’s work plan by the Maritime Safety Committee at its May 2011 meeting and assigned to the Ship Design and Equipment Subcommittee for the development of regulatory text.

The Republic of the Marshall Islands has submitted its Deepwater Horizon Marine Casualty Investigation Report to the IMO. The report, along with a report from the US Coast Guard (USCG), are expected to be reviewed by the Flag State Implementation Subcommittee, which is likely to recommend additional amendments to the MODU Code.

NOSAC

The National Offshore Safety Advisory Committee (NOSAC) was established to provide advice to the Commandant of the Coast Guard in matters relating to safety in offshore industries. Its members serve two-year terms and do so without remuneration, so the costs associated with the committee are minimal.

In late 2010, the US Department of Homeland Security (DHS) allowed the committee’s charter to lapse. It was ultimately renewed in February 2011. As of January 2011, all appointed members of the committee had completed their term of appointment and no new appointments have been made by DHS from recommendations made over a period of several years by the Coast Guard. Given the delays, it is questionable if those candidates whose names were put forward by the Coast Guard for appointment have continued interest in serving.

Discharge system – EPA

The USCG and Environmental Protection Agency (EPA) established a Memorandum of Understanding (MOU) regarding implementation and enforcement of the National Pollutant Discharge Elimination System Vessel General Permit (VGP), which applies to domestic and foreign vessels, including MODUs, within the three-mile territorial sea of the US and addresses 26 discharges that are incidental to the normal operation of a commercial vessel.

Per this MOU, the EPA is responsible for interpretations of the VGP, including the terms used; whereas the Coast Guard will incorporate the verification of compliance with the VGP into its existing inspection protocols and procedures, which verify vessel compliance with safety, security and pollution prevention regulations.

ISO

ISO issued a draft international standard (DIS) for the second edition of ISO 19901-7: Stationkeeping Systems for Floating Offshore Structures and Mobile Offshore Units. It was approved on 10 August 2011 with no dissenting votes and after resolution of technical comments will progress to the final draft international standard (FDIS) stage.

It was originally intended that the amendments would be issued as a “minor revision”; however, due to the size of the amendment, the ISO Secretariat demanded that the amendments be progressed as a DIS. The proposed amendments are:

• Incorporate informative text from API RP 2SK 3rd Ed. on anchor design and analysis and mitigation of vortex-induced motions;

• Update guidance on synthetic rope mooring to be consistent with the recent amendment to API RP 2SM;

• Correct text in section 7.4.4, wind actions, and section 8.4.3, riser considerations;

• Standardize use of the terminology “most probable maximum”; and

• Include an updated Norwegian annex and new Canadian annexes.

The subcommittee hopes to bypass the FDIS stage by obtaining 100% approval at the DIS ballot and directly publish a new edition. The subcommittee has asked its members to focus on editorial corrections to the changes as if this were an FDIS and agreed that any technical comments that do not relate directly to the proposed changes can be deferred to the next revision.

Separately, the ISO standard on Site-specific assessment of mobile offshore units – part 1: Jackups (ISO 19905-1) was approved with 19 members voting for the standard and three abstentions. The same ballot approved the standard as an EN standard for use in Europe.

IMO – liability for offshore oil and gas spills

At its April 2011 meeting, the IMO Legal Committee urged that an informal group, led by Indonesia, continue to examine issues related to the establishment of a new liability and compensation for oil pollution damage resulting from offshore oil exploration and exploitation.

During committee discussion, one delegation forcefully objected to the IMO taking on this subject while two others expressed reservations. Numerous other delegations expressed support for the Indonesian proposal. IADC and OGP are participating in this group.

The committee also recommended that the IMO’s Council and the Assembly adopt an amendment to the organization’s strategic direction to allow this matter to be considered formally and for the development of a new instrument to be added to the committee’s work program. The council subsequently declined to do so but suggested that the committee further examine the issues.

Indonesia hosted an international conference in Bali on 21-23 September 2011 to further discuss the issue and gain support for its initiative. IADC was represented at this meeting by Derek Morrow. Also attending were OGP and representatives of companies with operations in Southeast Asia. These included PTTEP, Petronas and Repsol. National representatives from Australia, Egypt, Indonesia, Malaysia, Norway, the Philippines, Singapore and the US attended. IMO’s secretariat, however, was absent.

The IMO’s Legal Committee may once again examine this issue at its April 2012 meeting.

Similar initiatives, at a regional level, have been proposed in Europe and for the Arctic.

IMO – lifeboat systems

The IMO adopted new regulations that will require the evaluation of virtually all lifeboat release and retrieval systems. In adopting a new SOLAS regulation III/1.5, it was agreed that, for ships constructed on or after 1 July 2014, on load release and retrieval systems must comply with the provisions of the Life-Saving Appliance (LSA) Code.

Governments are encouraged to assure compliance with any ship constructed after 20 May 2011. For existing ships, it was agreed that on-load release mechanisms should be evaluated for compliance with the amended LSA Code no later than 1 July 2013 and that mechanisms not complying with the amended LSA Code must be replaced or modified no later than the next scheduled dry-docking after 1 July 2014 and no later than 1 July 2019.

IMO – MEPC

The IMO Marine Environment Protection Committee (MEPC) met in July 2011 and adopted several measures that will require action by MODU owners and operators, including energy efficiency measures under MARPOL Annex VI, revised MARPOL Annex V (garbage) regulations, biofouling guidelines and guidelines related to recycling of ships.

Mandatory measures to reduce emissions of greenhouse gases from international shipping were adopted by parties to MARPOL Annex VI. Amendments to MARPOL Annex VI regulations add a new chapter making mandatory the Energy Efficiency Design Index (EEDI) for most new ships (currently not including MODUs) and the Ship Energy Efficiency Management Plan (SEEMP) for all ships. The regulations are expected to enter into force on 1 January 2013.

The EEDI is a non-prescriptive, performance-based mechanism allowing ship designers and builders freedom to use the most cost-efficient solutions to comply. The SEEMP establishes a mechanism for operators to improve the energy efficiency of ships. MODU operators will need to develop SEEMPs for their units.

The MEPC also adopted the revised MARPOL Annex V Regulations for the prevention of pollution by garbage from ships; amendments are expected to enter into force on 1 January 2013. Main changes include the updating of definitions; the inclusion of a new requirement specifying that discharge of all garbage into the sea is prohibited, except as expressly provided otherwise; and expansion of requirements for placards and garbage management plans to fixed and floating platforms engaged in exploration and exploitation of the seabed.

The first set of international recommendations to address biofouling of ships was adopted as well. The guidelines will address the risks of introduction of invasive aquatic species through the adherence of sea life, such as algae and mollusks, to ships’ hulls. MODU operators should consider adopting procedures to reduce the likelihood of transfer of such species during rig moves.

The MEPC adopted the 2011 Guidelines for the development of the Ship Recycling Plan and updated guidelines for the development of the Inventory of Hazardous Materials, intended to assist the implementation of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, adopted in May 2009. Although this Convention has not entered into force, MODU owners should consider the implications of both.

Also adopted were MARPOL amendments to designate certain waters adjacent to the coasts of Puerto Rico and the Virgin Islands as an emission control area (ECA) for the control of emissions of nitrogen oxides, sulfur oxides and particulate matter under MARPOL Annex VI Regulations for the prevention of air pollution from ships. The amendments are expected to enter into force on 1 January 2013, with the new ECA taking effect 12 months later.

Guidelines were adopted for reception facilities under MARPOL Annex VI and guidelines addressing additional aspects to the NOx Technical Code 2008 with regard to requirements related to marine diesel engines fitted with selective catalytic reduction systems.

The MEPC also approved, for future adoption, draft amendments to the NOx Technical Code 2008, relating to engines not pre-certified on a test bed and to NOx-reducing devices. It also agreed on terms of reference for the review of the status of technological developments to implement the Tier III NOx emission standard.

USCG – risk-based inspection of modus

As its first post-Macondo initiative, the USCG has implemented a new policy for risk-based inspections of foreign-flagged MODUs operating under US jurisdiction.

In addition to the annual inspections required to obtain a certificate of compliance, which is required for operations under US jurisdiction, MODUs will be inspected more frequently based on a risk-based scoring system, similar to the Port State Control program for traditional ships. Scoring categories are:

• Owner/operator performance;

• Vessel’s flag-state performance;

• Class Society performance;

• Vessel history; and

• Vessel particulars (e.g., rig type and age).

Each time a MODU moves to a new well location, the USCG will evaluate the rig for inspection based on the overall score. Rigs with a high enough score will be subjected to more frequent inspections. Resources permitting, the USCG also will be conducting random, unannounced examinations on 25% of the rigs in a specific Captain-of-the-Port zone.

USCG – STCW amendments

The USCG published a supplemental notice of proposed rulemaking on 1 August (76 FR 45908) regarding implementation of the 2010 amendments to the International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers (STCW Convention) and the STCW Code, and other non-STCW changes to update the regulations. This rulemaking will delineate the requirements for international and domestic credentials in the Code of Federal Regulations for all US mariners. Since this rulemaking will provide a noticeable split between STCW credentials and those used for domestic purposes, the USCG is holding public meetings to obtain comments.

IADC solicited member input and submitted comments to the docket.

MLC 2006

Members were urged earlier this year to begin planning for the entry into force of the International Labour Organization’s Maritime Labour Convention 2006. The Convention will enter into force 12 months after it receives its 30th ratification, as the 19 countries that have ratified the Convention to date have already fulfilled the minimum threshold level for tonnage.

The Convention requires that ships of States Party to the Convention obtain a Maritime Labour Certificate. To obtain the certificate, the flag-State must provide a Declaration of Maritime Labour Compliance (DMLC-Part I), which identifies a list of matters subject to inspection, identifies all national requirements necessary for implementation of the Convention, refers to any ship-type specific requirements, and clearly records any matters subject to “substantial equivalence” or exemption determinations.

Based on DMLC-Part I, the ship owner must prepare a DMLC-Part II that will identify all measures that will be in place to ensure ongoing compliance with the national requirements, as well as measures to ensure continuous improvement in labor conditions onboard the ship. Because of the scope of matters addressed in DMLC-Part II, most drilling companies will need to coordinate efforts to address company policies and procedures with regard to: human resources, training, safety, payroll and scheduling, claims management, insurance, legal, newbuild projects, medical and collective bargaining.

The flag-State’s competent authority or recognized organization will certify the DMLC-Part II and, after satisfactory inspection, issue the Maritime Labour Certificate.

For MODUs, many vexing issues remain unresolved: in particular, whether the flag-State will apply to the Convention to non-propelled units; and the degree to which, if at all, the flag-State will include the client’s personnel and third-party personnel within the definition of “seafarer” subject to the provisions of the Convention.

Once the 30-country threshold is reached, there will be only 12 months to complete the inspection and certification process for tens of thousands of vessels. The facilities of both the flag-States and recognized organizations will be hard-pressed to complete the process. Thus, members have been urged to begin the process. Many companies will need to press their flag-State authorities for answers regarding their interpretations regarding the scope of the Convention and available “substantial equivalence” or exemption determinations, as well as to obtain preliminary DMLC-Part I’s for their units. Countries already party to the Convention in which MODUs are registered include: Bahamas, Denmark, Liberia, Marshall Islands, Norway, Panama, Singapore, and St Vincent & the Grenadines.

OGP – drilling hazard site surveys

OGP issued new guidelines for conducting offshore drilling hazard site surveys describing good practice for conducting geophysical and hydrographic site surveys of proposed offshore drilling locations. The document also covers the use of exploration 3D seismic data to enhance or replace acquisition of a site survey.

The guidelines explain the requirements that different types of offshore drilling units have on a site survey. The new report also emphasizes the differing site survey requirements of shelf and deepwater environments.

Objectives of the site surveys and the site survey process are included in the guidelines, as well as suggestions on all phases of a site survey. These include initial desk studies and planning, data requirements and geohazard analysis and reporting.

Ken Fischer, regional vice president – Middle East and Africa

UBO & MPD Committee

The IADC Under-balanced Operations & Managed Pressure Drilling Committee has issued a notice pertaining to manufacturers’ testing of rotating control devices (RCDs).

“As manufacturers test their system in compliance with Spec 16RCD, the pressure ratings are reduced. For some applications, particularly using oil-based fluids, or at elevated fluid temperatures, additional fit-for-purpose testing should be considered,” committee chair Sara Shayegi, Shell, said.

API Spec 16RCD, Specification For Drill Through Equipment – Rotating Control Devices, stipulates design verification testing requirements for RCDs. Because many manufacturers test their equipment based on this specification, pressure limits using a common standard can be determined, and equipment from various manufacturers can be compared. Results from this testing may show lower operating ranges compared with previously published product specifications.

Those considering the use of RCDs are encouraged to consult with manufacturers for the latest pressure testing results based on API Spec 16RCD. For some operations, fit-for-purpose testing beyond design verification tests prescribed in API 16RCD may be advised.

A requirement for fit-for-purpose testing is being considered for future editions of the specification.

Dual Gradient Drilling Subcommittee

A Dual Gradient Drilling (DGD) Subcommittee was organized in 2011 under the UBO & MPD Committee to develop best practices and build interest in the technology. John Cohen of AGR Subsea serves as subcommittee chairman, and Kristin Falk, Ocean Riser Systems, is vice chair.

The group also seeks to improve understanding of various DGD methods and their limitations and benefits, and serve as a forum for information exchange.

“The DGD Subcommittee, like its parent, the IADC UBO & MPD Committee, will first work to facilitate the safe exploitation of hydrocarbons. Unlike the UBO & MPD Committee, the new subcommittee will focus on the offshore environment,” Mr Cohen said.

The 2011 IADC Dual Gradient Drilling Workshop was held in May in Houston, examining the types, challenges and benefits of DGD, emphasizing well control and testing the concept. The 2012 Dual Gradient Drilling Seminar will be held in March in Milan, Italy.

Contracts Committee

The IADC Contracts Committee continued its efforts to revise the model contract forms used in US land operations in 2011. Revisions to the daywork form are nearly complete and will be presented to the IADC Board of Directors for adoption. When the daywork form is complete, similar revisions will be incorporated into the footage and turnkey forms; these will also be presented for Board approval.

In view of new regulatory requirements and operating practices in the Gulf of Mexico, a similar project was initiated in February for the daywork form used in US offshore operations.

One key area pertains to the provision of rigs for emergency response operations. The full effect of requirements to send rigs and crews to assist in these situations has yet to be evaluated and addressed.

“There are many important considerations emanating from last year’s tragedy. These will need to be addressed in the IADC model contract form,” Rowan Companies’ John Buvens, vice chairman of the committee, said.

Middle East Operations Forum

Nabors Drilling International hosted an IADC Middle East Operations Forum (MEOF) meeting in their new Jebel Ali facility in May.

Mr Fischer conducted the meeting and reported on IADC activities and programs relevant to operations in the Middle East.

Mr Kropla also participated in the IADC reports, as did Jason McFarland, VP – membership and publications, and Linda Hsieh, Drilling Contractor managing editor.

The keynote discussion topic was “The Role of an HSE Case in an Effective HSE Management System and the Use of the IADC HSE Case Guidelines,” presented by Wayne Ralph, Noble Drilling.

Another MEOF meeting was scheduled for late October, just prior to the SPE/IADC Middle East Drilling Technology Conference & Exhibition, in Muscat, Oman. Hosted by KCA DEUTAG, the MEOF will feature a discussion on “Competency Management in an Expanding Market.” KCA DEUTAG and Weatherford Drilling International will make presentations.

Oman workshop

Mr Fischer facilitated a workshop held in May in Muscat, Oman, on “Using the IADC KSA Templates to Implement a Competence Assurance Program.” The event was held in cooperation with the Oman Leaders in Safety Forum, a contractor group of Petroleum Development Oman. Thirty people representing 17 companies attended.

The agenda addressed adapting KSA templates to the operations of specific companies, elements of a competence assurance program and using the IADC Competence Assurance Accreditation Program for third-party verification.

South Central Asia Chapter

In January, the South Central Asia (SCA) Chapter held the 2011 IADC South Central Asia Drilling Technology Conference & Exhibition in Mumbai. Transocean’s Deepak Munganahalli and ONGC’s UN Bose, SCA Chapter chairman, served as co-chairmen of the conference. The event featured various technical presentations and panel discussions of interest in India.

In May, SCA Chapter members met with their US-based counterparts during OTC. The annual meeting, chaired by Mr Bose, allows for discussion of issues confronting contractors in India. The agenda included reports on offshore safety regulations, current and pending tax rules and provident fund applicability. Additionally, the group heard a status report on employment visa restrictions.

Joe Hurt, regional vice president – North America and lead staff land HSE issues

New assistant director Paul Breaux joined IADC in mid-2011 as assistant director – land operations to provide support for the HSE Committee and land division. He is also the lead staff for the Rig Moving Committee. Mr Breaux began his career in the oil & gas industry as a site medic and safety coordinator in 1998 and has served as HSE director for Dorado Oil Services.

OSHA outreach team

The Rocky Mountain Oil and Gas Safety Outreach Team met in May 2011 to discuss the formulation of safety standards for the oil and gas industry. The team – established under a grant given to the Rocky Mountain Education Center of Lakewood, Colo. – was tasked by OSHA to formulate specific industry rules and regulations that pertain to all phases of oil and gas operations in the continental US.

Currently, safety standards for upstream oil and gas fall under either the general industry or construction standard, depending on the phase; thus, there are no specific standards for the industry to follow.

Besides the main committee, three subcommittees were established: OSHA CFR Oil & Gas Regulatory Compilation Update 2011, Oil & Gas Upstream Job Task Analysis and Trainer Qualifications.

OSHA also issued a grant to Red Rocks Community College in Colorado, an OSHA-authorized training center, to develop an oil and gas-specific outreach training course. The course would be similar to the OSHA 10- and 30-hour outreach training courses based on OSHA regulations for a specific industry – e.g., General Industry (29CFR1910), Construction (29CFR1926) and Maritime (29CFR1015). Drilling operations are regulated under 29CFR1910 while other upstream operations fall under either 29CFR1910 or 29CFR1926, depending on the process being undertaken.

Red Rocks Community College, in association with the Rocky Mountain Education Center, met in August to solicit industry input in the development of the curriculum for an OSHA 10-hour course specific to oil and gas. The meeting addressed three issues: defining course content that would cover all regulations that apply to the oil and gas industry, applying a hazard assessment approach to the course design and defining trainer qualifications to teach the OSHA oil and gas course. The courses would be offered only by OSHA-authorized training centers.

It was determined that the outreach group would develop three courses, the length of each to be determined later and based on course content. The three levels of courses would be: awareness orientation (which could be satisfied by the SafeLandUSA orientation), OSHA training (which would expand the orientation course time and content to meet workers’ need for training), and OSHA supervisor/safety leadership training. The meeting leader commented that, once the course content is developed, it could be used as a template for developing a vertical standard for the upstream oil and gas industry.

Wyoming OSHA

In August 2011, members of the Wyoming Oil & Gas Industry Safety Alliance (WOGISA) Regulatory Subcommittee met with Wyoming OSHA to review proposed changes to the Wyoming Oil and Gas Drilling Safety Regulations.

Wyoming OSHA laid out its concerns and asked industry representatives what practices or changes to the wording in current regulations were needed. Main issues that arose were:

1. Wyoming OSHA is proposing to require fire-resistant clothing (FRC) on all drilling locations once the well is spudded. In addition, vendors and other non-rig personnel within 75 ft of the wellbore must wear FRCs unless the personnel are in office locations (i.e., toolpusher bunkhouse).

2. It was proposed that the use of Geronimo-type derrick escape devices be disallowed.

3. Although current regulations require specific training, there will be a statement in the new rules that “all required training shall be documented.”

There will be a 45-day period for public comment on these proposals before they are submitted to the state OSHA commission, which will meet in December 2011.

OSHA – employee reporting

OSHA proposed updating Appendix A to Subpart B of its Injury and Illness Recording and Reporting regulation. The major part of the proposed rule change was to move from the Standard Industrial Classification system to the North American Industry Classification System. Although this should not affect the upstream oil and gas industry, OSHA also included changes in employer reporting requirements.

Under the proposal, employers would be required to report to OSHA within eight hours all work-related fatalities and all work-related in-patient hospitalizations, and within 24 hours all work-related amputations. OSHA defines amputations as loss of a limb or other external body part, including a fingertip.

The current regulation requires an employer to report to OSHA within eight hours all work-related fatalities and in-patient hospitalizations of three or more employees. OSHA hopes that this increase in employer reporting will provide them with better opportunities to investigate workplace incidents.

OSHA also continues to consider whether to include the loss of an eye in these reporting criteria.

OSHA – noise proposal

OSHA proposed and later withdrew its proposed “Interpretation of OSHA’s Provisions for Feasible Administrative or Engineering Controls of Occupational Noise.” The proposal would have clarified the term “feasible administrative or engineering controls” as used in OSHA’s noise standard.

Due to concerns raised about the proposal, Dr David Michaels, assistant secretary of labor for occupational safety and health, acknowledged that it requires much more public outreach and resources than originally anticipated.

“We are sensitive to the possible costs associated with improving worker protection and have decided to suspend work on this proposed modification while we study other approaches to abating workplace noise hazards,” he said.

Dr Michaels met in January 2011 with the offices of Sens. Olympia Snowe and Joseph Lieberman, members of the Senate Committee on Small Business and Entrepreneurship. The two senators co-chair the Senate Task Force on Manufacturing.

OSHA said it will continue to review comments that have been submitted.

OSHA – FRC

IADC staff continues to address OSHA’s letter of interpretation requiring employers to provide fire-resistant clothing (FRC) to workers. Members are represented on the API task group that is developing a hazard assessment recommended practice. At this meeting, OSHA pledged to work with industry in developing a PPE hazard assessment tool for the upstream industry.

FMCSA – HOS

The Federal Motor Carrier Safety Administration (FMCSA) proposed in early 2011 to require all motor carriers currently required to maintain Records of Duty Status (RODS) for Hours of Service (HOS) recordkeeping to use Electronic On-Board Recorders to monitor their drivers’ compliance with HOS requirements.

All motor carriers currently required to use RODS would still be required to obtain and keep records of Duty Status reports. However, they would be relieved of the requirements to retain supporting documents to verify driving time.

FMCSA also proposed to require all motor carriers – both RODS and timecard users – to systematically monitor their drivers’ compliance with HOS requirements. Motor carriers would be given three years after the effective date of the final rule to comply with these requirements.

Rig Moving Committee

The Rig Moving Committee has completed a competency program for swampers that is pending final approval. The committee is now developing a competency program for gin-pole truck operators and reviewing principles and requirements of the Compliance, Safety, Accountability (CSA) 2010 pilot program.

Health, Safety and Environment Committee

The Health, Safety and Environment Committee has been reviewing and sharing information on company programs on corporate responsibility, compliance, company culture and SEMS compliance.

The Environmental Affairs Subcommittee has been reviewing cooling water discharge issues, as well as environmental data tracking.

Jason McFarland, vice president – publications and membership

Ethics Committee

The IADC Ethics Committee met in March 2011 to discuss ways in which ethics and compliance training can be tailored for different companies, and the next meeting is expected to convene in November. Additionally, Ensco’s Brady Long, who has led the committee as chairman since its inception in 2007, has been succeeded by James Sanislow, Noble Drilling Services.

Technical Publications Committee

The IADC Technical Publications Committee held three meetings in 2011 and will meet again in December to work on upcoming publications. The group has published two books since its inception in 2005 – “Casing and Liners for Drilling and Completions” (2007) and “Managed Pressure Drilling” (2008). The publication of several additional books is anticipated for 2012, on underbalanced drilling, cementing and coiled tubing.

Leon Robinson continues to chair the committee, assisted by vice chairs Mark Morgan, Chevron, and Gary Young, Encana Oil & Gas.

Nigeria Chapter

IADC established the Nigeria Chapter, based in Lagos, in 2011. It brings together IADC members from indigenous and international companies to promote safety, training and environmental stewardship, as well as enhance industry relations with the general public.

“Nigeria presents both challenges and opportunities for the oil and gas industry. The Nigeria Chapter will play a vital role in furthering the awareness of local policies and regulations affecting oil and gas drilling, production and service companies operating in the region,” IADC president Dr Lee Hunt said.

Chapter officers are: chairman, Alex Illah, Transocean; vice chairman, Adeniji Ramoni, Saipem; secretary, Olushola Ismail, Oando Energy Services; and treasurer, Ben Agadagba, Lonestar Drilling.

Mark Denkowski, managing director – accreditation and certification

Dr Brenda Kelly, senior director – accreditation and certification

ACD restructuring

Mr Denkowski joined the IADC Accreditation & Certification Department (ACD) in 2011 as the department’s managing director. He has assumed overall management responsibility for the unit, which was restructured into functionalized areas of program development, customer service and quality assurance/quality control.

Dr Kelly continues to head up the program development function under the new title of senior director – program development. She now focuses on new program development, as well as updating and maintaining program documents and other instruments associated with IADC’s competency and accreditation programs.

Elfriede Neidert, quality control/quality assurance coordinator, is responsible for scheduling and following up on training provider audits, as well as overseeing the department’s ISO-certified quality management systems.

The customer service function consists of accreditation coordinators Marlene Diaz, Janet Lara, Joseph Washington and Loundia Riggs. Ms Riggs focuses on ACD implementation of IADC’s new database system, plus backup support for the system and new IADC website support. She continues to handle incoming training records and provides customer support.

Julia Swindle has moved into a new role as industry compliance specialist, still reporting to Mr Denkowski. Ms Swindle continues to support program development, with an emphasis on application, forms and audit check lists updates, and to coordinate activities of the Training, HSE and Well Control committees. She also participates in regulatory and compliance meetings and conferences to bridge the gap between IADC’s Operations and Accreditation departments.

Well Control Committee/WellCAP program revisions

In 2011, the IADC Well Control Committee initiated tougher requirements for WellCAP to strengthen well control competencies and enhance program integrity while removing ambiguities or lack of uniformity among existing program processes.

Program changes approved include modifying procedures for combining courses, implementing tougher testing protocol and clarifying instructor qualifications at the introductory, fundamental and supervisory levels.

Additional approved improvements include shortening the recertification cycle and revision of the WellCAP supervisor-level drilling curriculum.

Program changes implemented are:

• Procedures for combining WellCAP courses − WellCAP drilling courses are no longer permitted to be combined with wireline, coiled tubing or snubbing courses or any other courses that do not have similar operational approaches to well control. Drilling courses may continue to be combined with workover/completion courses.

• WellCAP testing protocol − All final WellCAP examinations are now clearly defined as “closed book.” Course quizzes and intermediate examinations may be “open-book” format provided the final examination is comprehensive and closed-book. If intermediate examinations are to form a final composite score of a student’s course performance, all intermediate examinations must be closed-book. Collectively, the intermediate examinations must provide a comprehensive assessment of the student’s knowledge and understanding of the specific WellCAP course content for which assessment is being conducted.

• Instructor qualifications for introductory level courses – During the application process, instructors providing training at the introductory level are now required to meet qualifications previously required of fundamental- and supervisory-level instructors. Introductory instructors must provide evidence of satisfying two of three optional qualifications: valid supervisory-level well control certificate, presentation skills or relevant teaching experience, or operational experience or technical skills.

• Acceptance of IWCF Certificate as WellCAP instructor qualifications (fundamental and supervisory levels) − The IWCF supervisory well control certificate will be accepted as evidence of WellCAP instructor qualifications if the certificate is being provided as evidence of instructor qualifications. This is contingent upon the certificate being issued by a training provider/IWCF assessment center other than the one for which the instructor is employed or working.

Public comments were solicited and reviewed by the Well Control Committee before implementing these revisions.

Well Control Roundtable

Approximately 40 people attended the Well Control Roundtable and Workshop, sponsored by the Well Control Committee, in December 2010.

The program was organized around two panels, one on “The Future of Well Control Training” and the other on “How Simulators Can Enhance Well Control Training.”

During the first panel, operator and drilling contractor representatives discussed current well control training and ideas on ensuring competency.

Steve Smith, Saudi Aramco, said he believes that the lack of a clear understanding of certification, qualification and competence is impeding the development of well-defined plans for well control training and competence assessments. He also expressed concerns over the industry’s inability to introduce what he called the “adrenaline factor” into classroom training, citing an urgent need to ensure that employees respond appropriately during well control events.

Flexibility of the WellCAP program was identified as a training strength by Arabian Drilling’s Harin Hattangady, although he added that this flexibility can potentially be misused. Another concern was the limited emphasis on preventing well control events, particularly in training for assistant drillers and drillers. He believes that simulators and interactive computer-based training (CBT) are important tools for future training.

Panel participants also declared it time to rethink the current approach to well control training. Many suggestions were offered for enhancing training and for developing and assessing employees’ competencies. They included:

• Strengthening current training standards and audit processes;

• Adding more well event prevention training;

• Utilizing more team activities;

• Reviewing and modifying curriculums as needed to ensure delivery of fit-for-purpose training;

• Increasing the amount of simulator time in supervisory-level courses; and

• Developing techniques for introducing the “adrenaline factor” into training.

Use of simulators, CBT and e-learning for pre-well control course refreshers and pre-assessments, along with readily available continuing education materials at the worksite, were identified as tools for helping employees to retain knowledge and skills.

Third-party assessments, course pre-assessments and use of simulators to assess not only well control knowledge and skills but also employees’ ability to make decisions were discussed. It was recommended that employees identified as weaker performers be required to undergo annual well control training.

In the second panel, participants discussed ways to enhance well control training through the use of simulators. Among the key suggestions were to:

• Use simulators more in training and assessing employee knowledge, skills and abilities;

• Develop more stringent simulator exercises and assessments; and

• Improve administrative and recordkeeping processes by taking advantage of simulators’ ability to record student performance, check on student identity and provide an audit trail for both instructor and student activities on the simulator.

“The roundtable discussions confirmed our well control community’s concern for employees’ well control competencies and their eagerness to address these concerns head-on,” Dr Kelly said.

A workshop for WellCAP instructors followed the roundtable. Participants received continuing education credits to apply toward maintaining WellCAP instructor approval.

Simulator manufacturers also held workshops with their user clientele to demonstrate simulator capabilities.

WellCAP Review Panel

John Breidenthal, Chevron Energy Technology Co, and Darryl Bourgoyne, Louisiana State University, were elected to the IADC WellCAP Review Panel in March 2011. Mark Mazzella, BP, continues his role on the panel.

The newest members of the review panel are Malcolm Lodge, Transocean, and Karl Shearer, Diamond Offshore Drilling.

Accreditation audits

In response to the rapid growth of IADC-accredited training programs in Mexico, the association began in September 2010 a concentrated audit effort across that country. The intent was to reassure association members and training program students that IADC’s accreditation programs offer the same quality wherever the training is delivered. The audit effort will continue until all training providers in Mexico have been audited.

In Mexico and elsewhere, IADC began to take disciplinary action against training providers who either did not respond to corrective/preventive actions requested after site audits or only partially responded. Disciplinary action included suspension and revocation of accreditation; timelines were determined by the severity of the nonconformity.

“IADC is committed to maintaining accreditation programs of the highest standards. Accreditation staff will continue to take steps to ensure the integrity of the programs,” Mr Denkowski said.

Jens Hoffmark, regional vice president of European Operations

EOF June meeting

OGP, along with representatives from four European regulators groups, attended the IADC European Operations Forum (EOF) in June 2011 in Copenhagen. The Netherlands Oil and Gas E&P Association (NOGEPA), Norway’s Petroleum Safety Authority (PSA), Germany’s State Authority for Mining, Energy and Geology and the Danish Energy Agency joined approximately 20 representatives from drilling contractors and oil companies for the meeting.

Steve Cromar, ConocoPhillips, and Annabel Holroyd, OGP, discussed the status of the Global Industry Response Group (GIRG) initiative and the expected EU initiatives covering the oil and gas sector. Mr Cromar stressed that ongoing commitment from the industry is required and that active international communication is essential.

Gert-Jan Windhorst of the NOGEPA and George Galloway, GeoTechInvest and a consultant for NOGEPA, spoke about HSE initiatives in Holland since Macondo.

Magne Ognedal of Norway’s PSA distributed copies of his agency’s Macondo report summary issued in June 2011.

A group Q&A discussion followed touching on topics such as the use of dispersants, competence and capping devices.

EOF September meeting

Eleven drilling contractors, five regulators representing Norway, Denmark and Holland, and one oil company representative participated in the September 2011 EOF meeting in Amsterdam, together with IADC staff.

Newbuild rigs were discussed, as approximately 120 new rigs will be entering the market over the next few years. This will require about 12,000 new crew members. Contractors and a training school proposed the creation of a basic training program – an idea that was passed on to the IADC Training Committee.

Mr Spackman offered an update on post-Macondo initiatives, with a focus on the discussion papers on USCG and BOEMRE reports, as well as BOEMRE’s proposed SEMS 2 rule.

Mr Denkowski spoke about IADC’s accreditation programs, noting that the Offshore Competency Training Program has been renamed Personnel Offshore Safety Training to reflect its focus on training. The program is expected to be rolled out in early 2012.

Mohamed El Halimi from the Danish Energy Agency (DEA) offered a presentation on how DEA is monitoring and studying Macondo reports to ensure lessons are learned with the objective to further improve HSE legislation.

PSA’s Mr Ognedal also was present. He explained that PSA has generally concluded that there is little need for changes to existing Norwegian regulations.

Chit Hlaing, operations assistant – Asian operations

AOF October 2010 meeting

Mr Kropla updated the Asia Operations Forum (AOF) on IADC’s and industry’s response to Macondo at a meeting in October 2010 in Singapore. Contractor members also discussed issues of immediate concern in the Asia Pacific region. In attendance were representatives from Aban Offshore, Atwood Oceanics, Frigstad Offshore, Jasper Offshore, Maersk Drilling, Nabors Drilling, Seadrill, Transocean and Vantage Drilling.

AOF March 2011 meeting

AOF convened again in Singapore in March 2011 to discuss pressing issues in the region and receive an update of IADC activities. Two special presentations were offered as well, one on compliance with the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, and the second on updates and developments on the cabotage issue and local content requirements in Indonesia.

For the first presentation, two guest speakers from Hogan Lovells International Law Firm discussed key provisions of the FCPA and Bribery Act, key differences between their requirements and practical advice on how companies operating outside the US and UK can avoid violations.

For the second presentation, Hing Ming Wong, Transocean, provided updates on the legislative and regulatory problems in Indonesia.

The next AOF meeting is scheduled for 22 November, in conjunction with the IADC Critical Issues Asia Pacific Conference & Exhibition in Kuala Lumpur, Malaysia. Denys Hickey, head of Energy & Offshore Group Asia Pacific Region, Ince & Co Singapore, will make a guest presentation on regulatory challenges and international law developments.

Derek Morrow, IADC industry affairs consultant, also will provide updates on transboundary oil damage & pollution legislation.

Indonesia Local Content Workshop

IADC held a workshop in Singapore in late June to address the “35% local content requirement” in the Indonesian market and to help drilling contractor members understand ways of fulfilling that obligation.

PT Patra Mitra Konsulindo, an Indonesian consulting firm, helped conduct the training session, which covered the legal aspects and basic principles of local content calculation on procurement of materials, goods and services and how to prepare service cost structures and fill in local content in bid documents. Participants also were able to ask pressing questions about the requirements and get them answered directly.

Contractor members in attendance were Atwood Oceanics, COSL Drilling, Diamond Offshore, Ensco, Maersk Drilling, Mermaid Drilling, Northern Offshore, Rowan Companies, Seadrill, Songa Offshore, Transocean, UMW Standard Drilling and Vantage Drilling.