Thailand Experience Kimberly McHugh Drilling and Completions Manager Mid Continent/Alaska Updated: 28 April 2011 1
We started operating in Thailand in the 1960 s and expanded to a sizable operation 2
Thailand: Complex Geological Environment Simplified sketch showing structural elements with many small fault blocks drilled by wells in structurally high positions. In 3 dimensions, channel systems are complex and cut by many faults: difficult to predict and image. COMPARTMENTALIZED RESERVOIRS One channel system as seen on 3D seismic Grant Anderson / Unocal Thailand / Nov.95
Typical GOT slimhole production well Plan: Drillable Well (Dual-Kick/Plan) Plan: Drillable Well (Dual-Kick/Plan) 3000 0 9 5/8" 2000 South(-)/North(+) [ft] 2000 E D C 7" 1000 B A 9 5/8" 0-2000 -1000 0 1000 2000 3000 True Vertical Depth [ft] 4000 6000 C8000 B A 7" -1000 D E 10000-4000 -2000 0 2000 4000 West(-)/East(+) [ft] Vertical Section at 100.00 [ft]
Well Design Evolution <1983 1984-93 1994-96 Ultra Slimhole Today TVD 500' 26" 26" 1000' 20" 13-3/8" 13-3/8" 7" 9-5/8" 4,500' 13-3/8" 9-5/8" 9-5/8" 5-1/2" 7" 9,500' 9-5/8" 7" 7" 2-7/8 2-7/8, or 3-1/2 Typical BHT 350 F, pore pressure 11-12.5ppg 5
Standard Slim-hole Well Design 1000 7000 MD 12¼ Hole 9⅝ Casing WBM 8½ Hole 7 Casing Seawater 14,000 MD 6⅛ Hole 2⅞ or 3½ Tbg NAF 6
Days to Drill & Complete Days 80 70 60 50 40 30 20 PDC s, OBM, Smaller hole/casing Top Drive 4 to 3 casing strings Slimhole Drilling Technology PDC Bits 1982 Oil Based Mud 1982 Simpler Completions 1983 Unitized Wellheads 1984-87 MWD Tool 1985 Top Drive Rotary Systems 1985 Steerable Drilling Systems 1985 Super Combo Logs 1985 Steering Tools 1988 Adjustable Stabilizers 1991 TCP Completions 1993 Slim Hole Monobores 1995 Splitter Wellheads 1996 Low Lime Mud 1998 Casing Drilling 1999 LWD 2002 Offline Activity Centers 2003 Offline Openhole logging 2008 *Red = Developed in Thailand 10 Increasing TVD 0 80 82 84 86 88 90 92 94 96 98 2000 2002 2004 2006 7
2010 Days / Well Vs MD/TVD 8 8
Thailand VS CVX Global Drilling - Footage 490,000 ft. 490,000 ft. 9
But is it Safe?
Safety Performance Drilling Last 5 years (2006-2011) 18 1.50 16 14 12 1.01 On July 2 nd 2010, Drilling group reached 2 years without DAFWR, with more than 7.3 million man hours, and TRIR YTD is 0.24 PJSM logged 170hrs in Q1, 367 hrs in Q2 1.00 10 0.86 8 6 4 2 0 0.13 0.45 0.11 0.53 0.06 0.25 0.42 0.37 0.37 2006 2007 2008 2009 2010 2011 (as of 15 Mar) DAFW Recordable DAFWR TRIR 0.00 0.50 0.00 11
How?
Alignment of Goals All goals should support the PU goals PU Goals need to be clear and Goals targeted to impact Accountable Visible Asset Goals Individual Goals Key Contract Goals 13
Manage Operations for Performance Critical View of Operations Identify Missed Opportunities NPT - Tool not a Stick Use data to focus efforts Capitalize on Commonality Use measurable and meaningful KPI s (SPM) Work together as a team (office, field, service co., networks) Celebrate Success (e-mails, competition, awards, etc.) 14
Drilling Time Breakdown on an Average Well used to evaluate offline logging Time breakdown SKID 0.5 12-1/4" HOLE 4.5 9-5/8" CSG DRILL OUT 3.5 6.5 40 HRS 8-1/2" HOLE 11 7" CSG 14 DRILL OUT 10.5 6-1/8" HOLE COND HOLE POH FOR LOG 3 7 45 HRS 25 LOG ADD LOG 6.5 6 Wireline logging ~12.5 HRS 2-7/8" TBG CMT TBG 0 9.5 Plan to work offline RELEASE 0.5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 15 15
Drilling Wells is a process and the effectiveness of process controls determines the end result We treat drilling wells as a repeatable process that can be optimized Controls are used within our process to ensure adherence to sound engineering standards and effective management of risks Controls and Processes are in place for: Reservoir and geological planning Drilling planning and design Field implementation Continuous improvement of process & controls to maximize efficiency is everyone's responsibility
Engineers are assigned to individual technologies and drilling projects and are held accountable to deliver positive results Individuals are assigned to manage specific technological components of the process and the contracts associated with that technology Drlg Eng teams are assigned to specific asset teams to focus on that team s drilling projects Some individuals also have longer term strategic initiatives requiring both technical and management skills Ops team concentrate on execution safely and efficiently
Work Processes to manage high activity 6 drilling teams focused on specific areas Drilling Operations Drilling Engineering Performance Measurements Tangibles Fluids and Environmental Projects Rigorous contract management Cross functional integrated CPDEP process for Business Planning, Facilities, Well planning and execution Data collection through WellView detailed performance tracking and analysis trends and changes can be seen and addressed Special local technology and techniques have been developed
Wins - Operational Discipline SOP s Rig QA Audits o Safety Processes o Equipment Repetition of Operations Long Term Rig Contractor Partnerships Project Schedule Near Miss Reporting o Positives Improved Safety o E Colors Training o JSA Coaching and MSW standards o Drilling Performance o Hand Safety Program 19
Challenges Operational Discipline Drilling Schedule o Fluid Repetition of Operations o Safety >> Routine Operations Organizational Capability o o o July 2010 Average of three (3) New Drilling Supt Experience is 3 months Engineering 45% Engineers with < 1 year experience Driller Competency 20
Closing Success = f (clarity of the vision + ability to change + tolerance for pain) In order to succeed we must accept failure. 21
Questions