PTRT 1471: Exploration and Production I. Chapter 6: Drilling and Well Completion

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1 PTRT 1471: Exploration and Production I Chapter 6: Drilling and Well Completion

2 Well Planning Drilling is a major investment (over $100m for offshore) Planning is aimed at maximizing investment Wells are drilled to: Gather information (exploration or appraisal) Produce Generally, wildcats require more planning than the other types of well. Before a new well is drilled a well plan has to be developed. There is a number of different companies involved in making the hole and a well plan requires close liaison between them. Well planning is perhaps the most demanding aspect of drilling engineering. It requires the integration of engineering principles, corporate or personal philosophies, and experience factors. Skilled well planners normally have three common traits: Experienced in drilling; skilled in integrating drilling operation smoothly Knowledgeable in engineering tools, such as computers and third-party recommendations, to guide the development of the well plan. Research oriented and problem analytical.

3 Well is drilled in a series of stages. At each stage, different kinds of problems are encountered. It is crucial to try to anticipate these problems in order for the drilling crew to take the necessary measures to minimize their effect. In order to do this, the operator s drilling department will collect as much information as possible about the nature of the formations through which the well will be drilled. This information should include: Expected total depth of the well. Types and thicknesses of different rock formations to be drilled. Expected formation pressures. Depth and nature of any troublesome formations that may be encountered. If the well is being drilled as a development well in an area where there are other wells, this information is readily available. However, if the well is an exploration well in a new area, the information is scarce and hence, much has to be inferred from the seismic surveys. Having collected and collated all available data, the drilling department of the operating company will develop the drilling program.

4 Objective of well planning The objective of well planning is to formulate from many variables a program for drilling a well that has the following characteristics: Safe Minimum cost Production requirements satisfaction Unfortunately, it is not always possible to accomplish these objectives on each well because of constraints based on: Geology, drilling equipment, temperature, casing limitations, hole sizing, budget Safety Safety should be the highest priority in well planning. Safety of personnel: Personnel considerations must be placed above all other aspects of the plan. Plan must be altered during drilling when unforeseen drilling endanger the crew. Failure to stress crew safety has resulted in loss of life and burned or crippled individuals. Safety of the well: The well plan must be designed to minimize the risk of blowouts and other factors that could create problems. This design requirement must be adhered to rigorously in all aspects of the plan.

5 Cost Cost of the well should be minimized without jeopardizing the safety aspects. In most cases, costs can be reduced to a certain level as additional effort is given to the planning. It is not noble to build steel monuments in the name of safety, if the additional expense is not required. On the other hand, funds should be spent as necessary to develop a safe system. Requirements Satisfaction Drilling a hole to the target depth is unsatisfactory if the well configuration is not usable, meaning: The hole diameter is large enough for an adequate completion The hole or producing formation is not irreparably damaged. This requirement of the well planning process can be difficult to achieve in abnormal-pressure, deep zones that can cause hole-geometry or mud problems.

6 Well design considerations Formation pressure The formation, or pore, pressure encountered by the well significantly affects well plan. The pressures may be normal, abnormal (high), or subnormal (low). Normal-pressure wells generally do not create planning problems. Subnormal-pressure wells may require setting additional casing strings to cover weak or low-pressure zones. Abnormal pressures affect the well plan in many areas, including: Casing and tubing design Mud-weight and type-selection Casing-setting-depth selection Cement planning In addition, the following problems must be considered as a result of high formation pressures: kicks and blowouts differential-pressure pipe sticking lost circulation resulting from high mud weights heaving shale Well costs increase significantly with pore pressures.

7 Well planning process Well planning is an orderly process. It requires that some aspects of the plan be developed before designing other items. For example, the mud density plan must be developed before the casing program because mud weights have an impact on pipe requirements Bit programming can be done at any time in the plan after the historical data have been analyzed. The bit program is usually based on drilling parameters from offset wells. However, bit selection can be affected by the mud plan Casing and tubing should be considered as an integral design, in particular, for production casing. The completion plan must be visualized reasonably early in the process. Its primary effect is on the size of casing and tubing to be used if oversized tubing or packers are required.

8 Drilling Program This program is a detailed step by step procedures for drilling the well. It is divided into a number of sub-programs: Casing and cementing program This program specifies the type and length of the casing required for each hole section. Casing can be subjected to tremendous loads. By anticipating the maximum loads which can be imposed on the casing, the required strength and steel qualities can be determined and specified. The program will also specify the type and consistency of cement to be used to bond the casing to the drilled hole. In addition, any additives which may be required will be indicated. Bits and Hydraulics program This program will specify the type of bits, nozzle sizes and mud circulation rates for each section of the hole. Mud program The mud program specifies the mud properties which must be maintained during the drilling of each phase of the well.

9 Drilling program document covers all details and activities for the proposed drilling; it includes: Well location Depths Casing designs Evaluation needs (well loggings) Expected hydrocarbon types Downhole reservoir pressures Specific government regulations Critical risk identification Estimated drilling time and cost Specific government regulations

10 Drilling procedures Program This program gives instructions to the drilling contractor and operating company representatives regarding procedures to be followed. The type of information which may be included in such a program include: Bottom hole assemblies to be used Equipment inspection procedures BOP testing procedures Suggested remedies for expected hole problems Drilling parameters like rotary speeds (RPM), weights to be used on bits (WOB)...etc Drilling a well costs a considerable amount of money. Proper advance planning however can control this expenditure. This is why the drilling program is such an important part of the process of making a hole.

11 Drilling Program Document Drilling program document is developed from well planning process. It is the engineering plan for constructing the wellbore. Drilling program document covers all details and activities for the proposed drilling; it includes: Well location, Well depths, Well geometries Casing designs, Mud considerations, Initial bit selections Evaluation needs (well loggings) Expected hydrocarbon types Pore pressure estimations Specific government regulations Critical risk identification Offset well information Economics and special procedures that may be needed Drilling procedures are subject to change if drilling conditions dictate. Completion depends on the initial drilling program; drilling and casing program must be optimized taking production drilling requirements into consideration.

12 Casing Program Diagram

13 Depth (ft) Time-Depth Graph It is constructed from drilling program; it is used to evaluate contract costs. Days

14 Cost estimate It includes fixed costs, timedependent costs, depth dependent costs, support costs, and contingency costs. A spreadsheet is used to estimate the total cost of the well

15 Rig Selection After drilling plan is presented by the drilling engineer, the next step is to select the rig Drilling rigs have names; over 300 models of semi-submersible and drillships that can handle water depths > 1,500 ft Some of requirements to meet included in project document: Water depth and well depth; Nautilus can handle water depth of 12,000 ft and well depth of 30,000 ft Pressure ratings BOP specifications Drilling mud weight Mobilization cost Safety and environmental performance records Length of contract

16 Drilling Contracts Applies to foreign countries After preparation of drilling program document and rig selection, potential contractors are asked to submit bids Oil company signs contract with drilling company with: Spud date: when the well is to be started Drilling target: specific depth or horizon to drill Drillsite: location of site to drill Others: hole size, mud, logging, testing, casing size, etc. Types of Drilling contracts: Footage Drilling: based on cost per foot to drill Dayrate: based on cost per day; common offshore Turnkey: based on a fixed fee Combination: based on footage rate to a certain depth and dayrate rate after Drilling rigs are owned and operated by drilling contractors Subcontracts: supply and service Service: such as logging or mud engineering Supply: furnishes equipment such as casing

17 Typical Well Cost for Various Rig Types

18 Problem Example Which of these contract options is best for the oil company and which is best for the contractor 1. $ $27, $105 before running the intermediate pipe, $15,000 after 4. $2m days depth (ft) Move in 5 0 Drive pipe Run surface pipe Drive pipe Run intermediate pipe Drive pipe Liner Drive pipe Casing Well Completion Move out

19 Testing During Drilling In 1980s, use of sensors and data transmitting process were introduced; sensors are located just above the drill bit on the drillstring Measurements-While-Drilling (MWD): measures drilling and well parameters; - Useful in directional and horizontal wells; - It uses gyroscopes, magnetometers, and accelerometers to measure the orientation of drill bit and the drilling direction; Logging-While-Drilling (LWD) : measures rock and fluid properties; - Logs include: resistivity, gamma, formation density, NMR,

20 Deepwater Drilling Problems Loop current or eddies: subject facilities to unusual stress and vibration; affects floating rigs Shallow hazard: characterized by excessive faulting; causes delay and may require directional drilling Shallow water: characterized by soft rock which can cause caving, loss of drilling mud; it consumes time and money Reservoir complexity: many deepwater reservoirs are compartmentalized with more faulting and less continuity than onshore reservoirs Reservoir performance: associated with bottomhole low pressure; often requires artificial lift Gas pressure: seabed temperature is low (32-40 F); gas hydrates are formed and could block wellhead and flow lines; may require injection of chemicals Drilling process above ground Drilling process underground

21 Completing a Well

22 Decision to Complete Well Completion can start as soon as approval for expenditure is signed What leads to decision: Exploration: use techniques such as mapping, gravity, magnetic, and seismic exploration Drilling: design drilling technique; time log, mud log, MWD, LWD during drilling Testing: wireline well logging such as SP, resistivity, neutron, gamma, density, etc. Estimation: HIIP, well rate, ultimate recovery Decision: plug and abandon well as a dry hole or complete the well; more expensive completing a well than drilling Methods of evaluating economic value of drilling prospect: Return on Investment (ROI) Payout (PO) Internal Rate of Return (IRR)

23 Completing a Well Completion is the process of making a well ready for production (or injection) It involves: - preparing the bottom of the hole to required specifications - running in the production tubing and its associated down hole tools as well as perforating and stimulating as required - running in and cementing the casing - installing Wellhead: tree (wet and dry), BOP; which controls pressure and supports casings - putting in place safety devices to protect well Well completion incorporates the steps taken to transform a drilled well into a producing one. These steps include casing, cementing, perforating, gravel packing and installing a production tree.

24 Upper Completion Components The upper completion refers to all components from the bottom of the production tubing upwards. Proper design of this "completion string" is essential to ensure the well can flow properly given the reservoir conditions and to permit any operations as are deemed necessary for enhancing production and safety. Wellhead: the pressure containing equipment at the surface of the well where casing strings are suspended and the BOP or Christmas tree is connected Christmas Tree: the main assembly of valves that controls flow from the well to the process plant (or the other way round for injection wells) and allows access for chemical squeezes and well interventions Tubing hanger: sits on top of the wellhead and serves as the main support for the production tubing. Production tubing: the main conduit for transporting oil from the reservoir to the surface; It runs from the tubing hanger down to just above the top of the production zone. Wireline entry guide: often installed at the end of the tubing, or "the shoe ; it makes pulling out wireline tools easier by offering a guiding surface for the toolstring to re-enter the tubing without getting caught on the side of the shoe Electrical submersible pump: used for artificial lift to help provide energy to drive oil to surface if reservoir pressure is insufficient

25 Types of Completion At the reservoir level, there are two types of completion methods used on wells: open-hole or cased-hole completions. Open-Hole Completion An open-hole completion refers to a well that is drilled to the top of the hydrocarbon reservoir. The well is then cased at this level, and left open at the bottom. Also known as top sets and barefoot completions, open-hole completions are used to reduce the cost of casing where the reservoir is solid and well-known. Cased-Hole Completion The final hole is drilled, cased and cemented through the formation. Then the casings are perforated with tiny holes along the wall facing the formation. Thus the production can flow into the well hole.

26 Open-Hole Completion Cased-Hole Completion

27 Casing and Tubing Casing is the permanently installed pipes used to line the well hole for pressure containment and collapse prevention during the drilling phase Tubing is removable pipe installed in the well through which well fluids pass A well is always cased to complete the well; thin-walled steel pipes are used Casing is at least 1in from the wellbore Casing string is run into the well and cemented Casing stabilizes the well; prevents the sides from caving into the well Casing protects freshwater reservoir from oil and gas Casing prevents dilution of production by water from other formations The drilling rig is used to run the casing; smaller rig may be used Pipes use API standard: dia 5-36 in; length ft (usually 30ft) Casing also serves to avoid mixing of fluids from different formations through which the wellbore runs

28 Conductor casing serves as a support during drilling operations, to flowback returns during drilling and cementing of the surface casing, and to prevent collapse of the loose soil near the surface; normally varies from sizes such as 18" to 30". Surface casing isolates freshwater zones so that they are not contaminated during drilling and completion; surface casing is the most strictly regulated due to these environmental concerns; typical size of surface casing is 13⅜ in Intermediate casing to control hydrostatic pressure that can fracture shallower or deeper formations. Production tubing is installed inside the last casing string and the tubing annulus is usually sealed at the bottom of the tubing by a packer; tubing is easier to remove for maintenance or replacement; it is significantly lighter than casing and does not require a drilling rig to run in and out of hole;

29 Perforating and Stimulating Once the completion string is in place, the final stage is to make a connection between the wellbore and the formation; it is done by running perforation guns to blast holes in the casing or liner to make a connection. Sometimes once the well is fully completed, further stimulation is necessary to achieve the planned productivity. There are a number of stimulation techniques. - Acidizing (to clean up the formation or wellbore) - Hydraulic Fracturing - Nitrogen circulation (circulate out heavy brine and completion fluids)

30 Hydraulic Fracturing Hydraulic fracturing is the use of sand, water, and chemicals injected at high pressures to blast open shale rock and release the trapped gas inside Hydraulic fracturing (aka fracking, which rhymes with cracking) stimulates wells drilled into these formations, making profitable otherwise prohibitively expensive extraction. Within the past decade, the combination of hydraulic fracturing with horizontal drilling has opened up shale deposits across the country and brought large-scale natural gas drilling to new regions - See more at:

31 Offshore Hydraulic Fracturing Offshore, a form of hydraulic fracturing has been in commercial use since the early 1990 s. Similar to hydraulic fracturing that is being used to develop unconventional resources onshore (shale and tight sand), hydraulic fracturing offshore has combined two mature oil and gas technologies hydraulic fracturing and gravel pack completions. The result has been a significant improvement in well life and reliability, productivity, and oil and gas recovery. In many offshore regions, the geologic formations that produce oil and gas are unconsolidated, which means the sand that makes up these formations is loose or poorly bonded, much like the sand on a beach. As a result, this loose sand can end up inside the production piping in the well or production equipment on the surface. Sand production is highly undesirable since it can plug pipes and equipment, erode piping (much like sand blasting) and lead to corrosion of pipe and equipment. Eliminating sand production has been one of the main production challenges faced by engineers since the early days of offshore oil and gas development.

32 Cementing cement slurry pumped into the well to displace the existing drilling fluids and fill in the space between the casing and the actual sides of the drilled well seals the well from non-hydrocarbons that might try to enter the wellstream permanently positions the casing into place

33 Gravel Packing Some wells require filtration systems in order to keep the wellstream clear of sand. In addition to running a casing with a liner, gravel packing is used to prevent sand from entering the wellstream

34 Downhole pump insert the hole pumping mechanism into the well. In modern installations, an Electrical Submerged Pump (ESP) is inserted into the well Downhole Pumps

35 Wellhead The last step in completing a well, a wellhead is installed at the surface of the well. Many times called a production tree, the wellhead device includes casing heads and a tubing head combined to provide surface control of the subsurface conditions of the well. A wellhead is the topmost point of a well. Wellheads serve a number of functions while a well is being drilled, once it is completed and operational, and when it is shut down, either temporarily or permanently. The wellhead is installed early on in the process so that it can serve as a point of attachment for a blowout preventer, a piece of equipment which prevents catastrophic failure of a well, and once a well is completed, equipment for regulating well operations can be attached at the wellhead.

36 Functions A wellhead serves numerous functions, some of which are: Provide a means of casing suspension; it is responsible for containing the pressure within each of the casing strings Casings can contain different well fluids; a wellhead serves to keep these casings separated from each other to avoid mixing of fluids. Provides a means of tubing suspension Provides a means of pressure sealing and isolation between casing at surface when many casing strings are used Provides pressure monitoring and pumping access to annuli between the different casing/tubing strings Provides a means of attaching a blowout preventer Provides a means of attaching a Christmas tree for production operations in onshore Provides a reliable means of well access Provides a means of attaching a well pump with possibility to attach a well pump

37 Christmas Tree Christmas tree is equipped with set of valves and serves for pressure control. Christmas trees are used on both surface and subsea wells. The deepest installed subsea tree is in the Gulf of Mexico at approximately 9,000 feet. Functions The primary function of a tree is to control the flow of fluid, usually oil or gas, out of a well. To control the injection of gas or water into a non-producing well in order to enhance production rates of oil from other wells As chemical injection point: on producing wells, chemicals or alcohols or oil distillates may be injected to preclude production problems (such as blockages) As well intervention means As pressure relief means (BOP) As monitoring point: pressure, temperature, corrosion, erosion, sand detection, flow rate, flow composition, valve and choke position feedback) As connection points for devices such as down hole pressure and temperature transducers (DHPT)

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