SPE Forum: Source Control for Wells in Shallow Water. Lars Herbst, Gulf of Mexico Regional Director

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SPE Forum: Source Control for Wells in Shallow Water Lars Herbst, Gulf of Mexico Regional Director

Agenda Introduction and Background Historical Well Control Events Scope of Discussion Scenario Driven Source Control Some Questions to be Answered on Planning and Equipment 2

A Look At Historical/Recent Well Control Events 3

BSEE Definition of Loss of Well Control (LWC) The current definition for LWC: Uncontrolled flow of formation or other fluids. The flow may be: to an exposed formation (an underground blowout) or at the surface (a surface blowout). Flow through a diverter Uncontrolled flow resulting from a failure of surface equipment or procedures BSEE requires that all Losses of Well Control be reported. Effective July 17, 2006, BSEE revised the regulations for incident reporting. All loss of well control, besides shallow water flows, must be reported by immediate oral report, per 30 CFR 250.188(a)(3). For shallow water flows, BSEE requires that they be reported within 12 hours of occurrence. 4

Number of Well-Related Activities OCS Loss of Well Control 2007-2014 2,500 2,000 1,500 1,000 500 0 Well-Related Activities Loss of Well Control 1,988 1,852 1,778 1,781 1,733 1,625 7 8 1,506 1,494 6 8 7 4 4 3 2007 2008 2009 2010 2011 2012 2013 2014 9 8 7 6 5 4 3 2 1 0 Well-Related Activity: Total of (1) the number of new wells spud plus (2) the number of wells reentered for the purpose of reworking or abandonment during a calendar year 5

Loss of Well Control in GOM 2007-2014 0.60% 0.53% 0.50% 0.45% 0.47% 0.40% 0.38% 0.30% 0.30% 0.22% 0.25% 0.20% 0.17% 0.10% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 LWC Incidents per Well-related Activities Well-Related Activity: Total of (1) the number of new wells spud plus (2) the number of wells reentered for the purpose of reworking or abandonment during a calendar year 6

ST 220 A / Hercules 265 Water Depth 154 feet Distance to Shore 55 miles Days to complete relief well 74 Product Gas 7 LWC Occurred POOH with TCP gun

2013 LWC Incidents of Interest 23 July 2013, LWC, Surface Date: 23 July 2013 Facility: ST 220 A / Hercules 265 Incident: On 23 July 2013, the rig was performing approved completion operations, and the formation had been perforated the previous day. After perforation the well was taking 30bbl/hr of fluid. The fluid was circulated from a 15.7ppg filtered brine to a 15.3ppg, after which the well was taking 7bbl/hr, a pill was also spotted. The rig then snapped in and out of the sump packer (to confirm no fill) at which time the well was still taking fluid. At 0300hrs this morning the rig began to trip out of the hole. At 0813 it was reported that the well was still taking 3bbl/hr of fluid. It is estimated that the blowout occurred at 0845. Relief well operations were not completed until 15 October 2013 74 days after the initial LWC Panel Investigation should be published soon. 8

ST 220 A / Hercules 265 Surface Well Control Event Response Response for uncontrolled gas blowout resulting in loss of rig at Walter s ST 220 location 7/23/13 Kick occurred while tripping out of hole BSEE mobilized inspectors to fly over location and BSEE personnel also at Source Control Well is flowing gas only All personnel were recovered by a marine vessel in the area WWC personnel have been mobilized to location Potential relief well rigs are being sought if needed. A vessel is on location to provide a water shower over the rig to prevent potential ignition 7/24/13 Fire ignited at the wellhead. Additional firefighting equipment is mobilized to location Water curtain is continued to protect the rig Relief well is the primary plan to kill this well No top side capabilities due to fire Kill weight mud is on location if a well kill pumping is to be pursued 7/25/13 Well started to reduce in flow Well bridged over; fire was reduced to small flame 7/26/13 Sonar started to survey the debris field for placement of relief well rig WWC on rig to assess damage and install gas detectors around wellhead Well bridge continued to hold and fire was extinguished Debris removal was started to gain vertical access to wellhead to run downhole camera(7/26/13-8/8/13) A visual inspection using a downhole camera was used to determine the top of bridge Relief well was started to kill the source zone A bridge plug has been set with cement on top to isolate the source Decision was made to turn the relief well into a pressure depletion well New facility and flow line was installed to deplete reservoir to seawater sub-hydrostatic conditions

December 1, 1970 ST 26 B

December 1, 1970 ST 26 B Four fatalities, thirty six injuries, lost platform and 2 drilling rigs, minor amounts of oil on beaches. Estimated 53,000 bbls spilled 10 th and final well was killed with a relief well on April 7 th, 1971 (127 days)

December 1, 1970 ST 26 B Result of Human Error During cleaning operations, workers failed to close well containment valves completely for a brief period while the well was left unattended Plastic coating, used as a corrosion preventive in the tubing of well B-21, sloughed off and lodged in the gate of the master valve As the gate was closed, the plastic compressed, preventing a complete closure of the valve but gave indication the valve was closed

December 1, 1970 ST 26 B After 30-40 minutes the plastic began to slip through the gate opening and was finally released This allowed the well to be open to atmosphere and allowed oil to escape Falling debris and intense heat from the fire damaged ten of the 21 wells on the platform 11 wells in all were contributing hyrdocrabons to the fire

December 1, 1970 ST 26 B Some of the oil reached the Mexican Yucatan Peninsula January 20, 1971: eight of the wells remained on fire 9 months to complete all relief wells and fully kill 23 boreholes associated with platform

Synopsis of Data BSEE has 288 unique loss of well control incidents captured in our database from 1956 2010. Additionally, BSEE has 18 additional cases in TIMS from 2010-2013 which are not accounted for in this synopsis: 69 of 288 Incidents had a duration of 5 days (24%) 55 of 69 occurred in water depth < 300 feet (80%) 42 of 69 occurred within 50 miles of shore (61%) 31 fatalities in 5 of the 69 incidents 84 injuries in 7 of the 69 incident 8 incidents were oil blowouts (12%) Max duration of the oil blowout 141 days, 10 relief wells drilled 15

Source Control for Loss of Well Control 16

Source Control Response Systems available in the Gulf of Mexico 17

Scope of Discussion Shallow Water( generally < 400-500 feet) Source Control versus Prevention Loss of Well Control is Surface versus Underground Relief Well Intervention is Presumed Product is Oil and Associated Gas Scenario Driven Responses 18

Scenarios to Drive Discussions Jack-Up Open Water Exploratory Drilling Jack-Up Cantilever Over Minimal Structure( Caisson or small 3-4 Pile- No processing, single well) Jack-Up Cantilever Over Multi-Pile Process Structure ( multiple wells) Assumption: Single well contributing to uncontrolled flow Platform Rig differences Jack-Up Cantilever Over Multi-Pile Process Structure ( multiple wells) Assumption: Multiple wells contributing to uncontrolled flow Platform Rig differences No-rig activity loss of well control ( Production, Coil Tubing, Wireline, Etc.) Broach scenario related to any of the above 19

Planning and Equipment What level planning should be considered appropriate for the possible scenarios? Drills/ Exercises for Source Control? Other than relief well rigs, what type of equipment needs to be readily available? Support vessels( Personnel, ROV, dive support, etc.) Firefighting equipment Derrick/Crane barges for debris clearance Subsea/Diver tools and equipment Wellheads(Slip-on, flanged ) Trees or Capping devices Mobile Temporary Flowback Facilities Newer Technology 20

Thank you for your attention. Website: www.bsee.gov