BOP Testing Best Practices

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BOP Testing Best Practices Ocean Endeavor and Ocean Baroness Andrew Hunter and Derek Ridgway Updated 12/21/08 NYSE: DVN www.devonenergy.com page 1

Background & Scope Excessive BOP testing times on Ocean Baroness Consistent performance on Ocean Endeavor What are we doing differently? Review, compare & analyze data Make recommendations & implement Identify Best Practices NYSE: DVN www.devonenergy.com page 2

Endeavor Average Hours per Stack Test ~ Entire Jack 3 Well ENDEAVOR - Hours per Stack Test Hours 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Test Number Protected choke manifold; tests are performed off-line when possible Consistent performance (0.9 hrs/test) NYSE: DVN www.devonenergy.com page 3

Baroness Average Hours per Stack Test ~ Bass well to date Hours 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Baroness - Hours per Stack Test 11/20/08 1.27 hrs/test 12/12/08 1.97 hrs/test 6,000 6,000 6,000 10,000 psi 10,000 psi HP test 1 2 3 4 5 6 7 Test Number High Pressure = 10,000 psi on Tests #6 and #7 Excessive time on Test #6 and #7 Why?? NYSE: DVN www.devonenergy.com page 4

Preliminary Conclusions Causes of Excessive BOP Test Time on Baroness 1. Unprotected choke manifold; all tests over 10,000 psi must be on-line 2. Inefficient pump operation (see following slides for examples) NYSE: DVN www.devonenergy.com page 5

Efficient Pump Operation on Endeavor ~ Test #13 to 9,000 psi on 10/28/08 Endeavor operator bumps pressure 5 times in ±25 minas soon as a rapid decline is noticed More efficient method of compressing synthetic base mud Good test in 35 min NYSE: DVN www.devonenergy.com page 6

Inefficient Pump Operation on Baroness ~ Test #6 to 10,000 psi on 12/13/08 (1.97 hrs/test) Operator bumps pressure 5 times in ±65 min(half the frequency of Endeavor) Baroness operator waiting too long to bump up pressure Good test in 125 min (over twice as long as Endeavor) Same pattern seen when comparing most high-pressure tests NYSE: DVN www.devonenergy.com page 7

Inefficient Pump Operation on Baroness ~ Test #8 to 10,000 psi on 12/14/08 (1.97 hrs / test) As per SLB operator on Endeavor, the 5 min high pressure test could have ended at either noted interval Baroness operator unnecessarily spent ± 55 min NYSE: DVN www.devonenergy.com page 8

Inefficient Pump Operation on Baroness ~ Re-test #9 to 10,000 psi on 12/14/08 As per SLB operator on Endeavor, the 5 min high pressure test could have ended at the noted interval Baroness operator unnecessarily spent ± 40 min NYSE: DVN www.devonenergy.com page 9

On-line Test Optimization Comparison of Baroness tests #6 & #7 Hours 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Baroness - Hours per Stack Test 1 2 3 4 5 6 7 Test Number 11/20/08 1.27 hrs/test 12/12/08 1.97 hrs/test Both tests to 10,000 psi using 14.9 ppg SBM At first glance test #6 looks much better than test #7 However, test #7 total time was ~10 hours less than test #6 This was done by combining component testing which reduced the total number of on-line tests performed from 19 to 11. NYSE: DVN www.devonenergy.com page 10

Team Recommendations 1. Review each rig s test charts with Baroness Halliburton pump operator & company men 2. Identify unacceptable decline more quickly and bump pressure (±100 psi) more frequently (not an exact science) 3. HES to review test charts with MMS to better understand what makes a good test Note: MMS inspectors are invited to SLB quarterly safety meetings to review test requirements 4. Use water in surface lines and cement unit to minimize compression time 5. Optimize on-line testing. Maximize number of tests performed off-line Combine on-line tests to test multiple components at once Post-job evaluation: Evaluate number of tests performed and time per test to find optimal testing procedure 6. Investigate modifications that would allow for off-line high pressure testing on Baroness 7. Review performance of next BOP test on Baroness (due 12/28/08) 8. Identify Best Practices NYSE: DVN www.devonenergy.com page 11

Contact Information Ocean Baroness Derek.Ridgway@dvn.com Baroness_subsea@dodi.com Safety tip of the day: BE SURE TO OPEN RAMS BEFORE POOH Ocean Endeavor Andrew.Hunter@dvn.com Endeavor_subsea@dodi.com NYSE: DVN www.devonenergy.com page 12