Heidrun CTD Campaign #1

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1 Heidrun CTD Campaign #1 ICoTA European Intervention Conference, Aberdeen 12th & 13th Nov 2014 Bård Marius Johansen, Statoil CTD Engineer

2 AGENDA Heidrun and the CTD project Bård Marius Johansen (4 min) Equipment and methods Manfred Sach (13 min) Operational results and future for CTD Bård Marius Johansen (13 min) Q&A 2

3 Heidrun CTD project Motivated by the need for more drainage points. Independent and parallel operations with the main rig. Extensive topside equipment development/modification. Mud plant positioned on Equipment Support Frame Well Intervention Tower reinforcement and modification Work-Over Riser Tensioner 3

4 4 Classification:

5 Three-well pilot campaign 5 ⅞ hole drilled through 7 tubing and completed with 3 ½ tubing / OH screens Overbalanced drilling with WBM and mud-pulse telemetry for communication Three-well learning curve with increasing complexity: Well OH length EOHC* length Formation At KOP Dog-leg severity A-19 A 263 m n/a Ile sandstone 7.7º/30m A-9 C 336 m 105 m Ror shale 10.0º/30m A-33 A 350 m 70 m Springar shale 10.9º/30m * Expandable Open Hole Clad Success criterion for CTD 1: One completed well in three attempts Primary objective: Learning 5

6 Planned CTD well A-33 A 6

7 Over to Baker Hughes Manfred s slides 7

8 Heidrun CTD Campaign 1 ICoTA Well Intervention Conference, Aberdeen 12th & 13th Nov Norway GeoMarket Manfred Sach CTD Project Manager Baker Hughes Norway Geomarket Pressure Pumping manfred.sach@bakerhughes.com Advancing Reservoir Performance BJ Services Company 2014 Baker Hughes Incorporated. All Rights Reserved. ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

9 Agenda Agenda The nature of the project Services provided Equipment developed and used Summary 2014 Baker Hughes Incorporated. All Rights Reserved. 2 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

10 The nature of the project No CT Drilling in Norway since many years Norsk Hydro - Hermod (Grane) 1995 Statoil Gullfaks 1997 and Saga Snorre 1998/99 Largest CT project ever undertaken by Statoil Scope not comparable to any current CTD project around the world Covers the scope for 3.5 / 4.0 drillpipe TTRD Through 7 monobore completion Using 2 7/8 CT Do what a drilling rig does!!! Well preparation Casing exit Drilling Completion 2014 Baker Hughes Incorporated. All Rights Reserved. 3 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

11 Agenda Services provided Baker Hughes provided services surface and downhole Coiled Tubing Fluid pumping and handling Wellbore intervention / preparation, casing exit and fishing Tubular handling services BHA s and completion Directional drilling MWD Completion / screen services Beacon onshore support data integration onshore evaluation / optimisation 2014 Baker Hughes Incorporated. All Rights Reserved. 4 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

12 Agenda Equipment developed /used Baker Hughes provided services - surface Hybrid, heavy duty CT unit 120 k injector head Complete new build - mainly run on electric verified working envelope as expected in electric mode Performed very well with exception of injector-head Full data integration and remote functionality for all equipment (fibre network ring) Data transfer onshore for remote analysis / supervision / decision making 2014 Baker Hughes Incorporated. All Rights Reserved. 5 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

13 Agenda Equipment developed /used Baker Hughes provided services - surface Data integration from / to Coiled Tubing / pumping / mud system / directional drilling / mud logging Data transfer onshore for remote analysis / supervision / decision making 2014 Baker Hughes Incorporated. All Rights Reserved. 6 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

14 Agenda Equipment developed /used Baker Hughes provided services - surface Purpose build, portable / temporary mud system Complete new build - performed very well allows independent operation of platform rig s mud system Required it s own support structure due to weight and size Accompanied by purpose build, continuous service, portable mud pumps - very well suited for the type of operation 2014 Baker Hughes Incorporated. All Rights Reserved. 7 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

15 Agenda Equipment developed /used Baker Hughes provided services - downhole 2nd generation spoolable DuraLinkTM CT connector (patented) Required to reduce weight of 2 7/8 CT reel from 45t to within platform crane capacity of 32t Performed extremely very well no premature change-out of connector Facilitated pass-through of wireline cutter (RCT) for recovery of stuck CT Picture above shows spoolable DuraLinkTM CT connector during FEA bending simulation 2014 Baker Hughes Incorporated. All Rights Reserved. 8 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

16 Agenda Equipment developed /used Baker Hughes provided services - downhole Abrasive CT cutter for stuck pipe contingencies (patented) Development originated from identified high risk of stuck CT Saved about 8 days of downtime on A-33 and avoided cutting of CT at surface when leak above release tool developed Great safety improvement, avoiding CT crew working above injector head (at height) Excellent planning focus on stuck CT contingencies Picture shows CT end recovered after activation of abrasive CT cutter 2014 Baker Hughes Incorporated. All Rights Reserved. 9 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

17 Agenda Equipment developed /used Baker Hughes provided services - downhole New 5 3/8 Delta Whipstock system implemented Required size did not exist Compatible with drilling BHA dog-leg capability Two reliable casing windows created Very CT friendly system mills / swarf not adopted from an existing drillpipe system 2014 Baker Hughes Incorporated. All Rights Reserved. 10 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

18 Agenda Equipment developed /used Baker Hughes provided services - downhole First time use of 4.75 AutoTrakTM, SENTIO and acoustic caliper on CT Great interfacing between CT and DD/MWD 4.75 top part of CT BHA Very efficient data integration between surface an downhole A rotary steerable drill-pipe BHA on CT Good interaction between DD and CT Driller X/O StopSub NCxx x T2 CT interface Quick-Connect Circulation sub. Release tool etc. BCPM (Pulser & Power supply) Motor Top Stab OnTrak 2014 Baker Hughes Incorporated. All Rights Reserved. UBHStabilzer Mod. Motor 11 Mod Stab CoPilot PDC AutoTrak Steering Unit ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

19 Acknowledgements Rein Atle Edland, Sascha Schwartze Øystein Meling, Fernando Parra, Eivind Hagen, Cato Oppheim, Eric Ericcson Alistair Macleod, Mike Kuchel, Even Hestnes Freddy Jenssen, Iain France, Stephen Young, Jørgen Bruntveit Alf Jacobsen, Otto Omundsen Henry Egeland Terje Øvermo Robert Jessiman Eva Nilskog And many, many more Excellent offshore personnel performance No major HSE issues during the entire campaign two incidents with low severity - pinched finger - person stepped into hole on top of ESF structure with one leg 248 days offshore KPI of 92.8% for deliveries through CT contract 2014 Baker Hughes Incorporated. All Rights Reserved. 12 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

20 Summary What does an operator get from such project? Simplified contractors view after 1st CTD Heidrun campaign Delivery Benefit A 2nd, independent drilling operation Increased utilisation of offshore platform resources Maximising number of side-tracks drilled in a given timeframe Accelerated in-fill drilling A method of counteracting the production decline More stabilised production Target reservoir portions less attractive for platform main rig and within CTD reach A reliable future method for reservoir development Potential certainly exists, but the jury is still out Most on-shore locations who used CTD on a frequent basis had to go though significant learning curve A lightning fast drilling operation 2014 Baker Hughes Incorporated. All Rights Reserved. Equipment and support intense, within complex offshore environment 13 ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

21 Questions later back to Bård Marius Coiled Tubing Fluid pumping and handling Directional drilling Tubular handling services Wellbore intervention, casing exit and fishing MWD Beacon services Data integration Baker Hughes Incorporated. All Rights Reserved. 14 Completion Screens ICoTA Well Intervention Conference, Aberdeen 12 & 13th Nov. 2014

22 A-19 A operation 3000 Mill and polish window, cure losses, BHA trip Wiper trip to surface, BOP test. Differentially stuck, unstick CT, wait for new mud, displace to 1.12 sg WBM Mud pump failure Slow progress due to stringers /09/ /09/ /09/ /09/2013 Permanently stuck during 01/10/2013 wiper trip.

23 A-09 C Operation An old inner completion installed shallower than expected obstructing the KOP Attempts to cut and retrieve the inner completion on CT were unsuccessful A-09 CTD Cancelled 23

24 Time-depth curve A-33 A Mill window. Polish window and extend rathole. BOP test, change end connector Wiper trip to surface Unable to enter with MFC. 2nd UR run. SDN caliper run. OH Clad run Wiper trip to surface, change chipped bit. Wait for main rig to pull production riser. Started underreaming pilot hole. Classification: Open nd Clad expansion attempt. 2nd MFC run

25 Planned and achieved learning points - topside CTD #1 BIT / WORT* Integration of CTD with platform systems / organization Logistics material handling Parallel operation, independent of main rig Mud plant reliability Topside CT equipment reliability Rig-up / rig-down efficiency Operational efficiency HSE * In operation 25 demonstrated demonstrated with need for improvement

26 Planned and achieved learning points - downhole A-19 A Whipstock / window (single string) A-9 C Whipstock / window (dual string) Drilling telemetry / directional control Drilling hole cleaning Drilling differential sticking OH Clad installation OH Clad expansion Completion Production 26 demonstrated demonstrated with need for improvement A-33 A N N not attempted failed attempt

27 Lesson #1 Hole Cleaning No cuttings came out while drilling, only during wiper trips The more frequent wiper trips in A-33 A proved successful in 5 ⅞ hole Underreamed and overgauge hole in shale was impossible to clean 27

28 Lesson #2 Differential sticking Both stuck incidents in A-19 A had elements of differential sticking. Time consuming displacement operation to free coil on first stuck incident (6 hrs) A N2 bubble technique was developed and full-scale tested for use in A-33 A: Reduce BHP with N2 bubble unloading well BHP controlled to remain in overbalance N2 bubble technique test took less than 1.5 hrs to administer Not required to demonstrate technique in a drilling scenario This technique will be our preferred first contingency to unstick differentially stuck pipe in CTD campaign #2. 28

29 Lesson #3 Shale Stability 3 SND (ultrasonic caliper log) passes made, good agreement between passes. In-consistent hole geometry Sandstone interval at bottom is logged to be /8" 7"

30 Future for CTD on Heidrun Original scope for CTD2 was to drill sidetracks in live wells with comingled production. Adjusted scope after CTD1 Reduce well complexity Success in dead wells need to be proven prior to extending scope Many well candidates on Heidrun identified for CTD Challenge: When will our candidate wells die? Hopefully a second campaign will be initiated in the relative near future CTD has a future on Heidrun! 30

31 Heidrun CTD Campaign #1 Bård Marius Johansen CTD Engineer Tel:

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